The following discussion and analysis should be read in conjunction with “Selected Statistical Data” and our consolidated financial statements and related notes. 50 Table of Contents Page Summary of Financial Data 51 Business Environment 53 Recent Developments 55 A.Operating Results 58 Results of Operations 58 Business Segment Analysis 69 Geographic Segment Analysis 73 Effect of Change in Exchange Rates on Foreign Currency Translation 74 B.Liquidity and Capital Resources 76 Financial Condition 76 Capital Adequacy 87 Non-exchange Traded Contracts Accounted for at Fair Value 91 C.Research and Development, Patents and Licenses, etc. 91 D.Trend Information 91 E.Critical Accounting Estimates 91 Summary of Financial Data The selected statement of operations data and selected balance sheet data set forth below have been derived from our consolidated financial statements. Except for risk-adjusted capital ratios, which are calculated in accordance with Japanese banking regulations based on information derived from our consolidated financial statements prepared in accordance with accounting principles generally accepted in Japan, or Japanese GAAP, the summary of financial data set forth below are derived from our consolidated financial statements prepared in accordance with U.S. GAAP. Since the beginning of the fiscal year ended March 31, 2025, we have changed Krungsri’s fiscal year end from December 31 to March 31 for the purposes of consolidating Krungsri into MUFG’s financial statements. Adjustments have retrospectively been reflected in our consolidated financial statements as of and for the fiscal year ended March 31, 2024. See Note 1 to our consolidated financial statements included in our annual report on Form 20-F for the fiscal year ended March 31, 2025. You should read the summary of financial data set forth below in conjunction with the remainder of this Item 5, “Selected Statistical Data” and our consolidated financial statements and related notes and other financial data included elsewhere in this Annual Report. These data are qualified in their entirety by reference to all of that information. 51 Table of Contents 2024 2025 2026 (in millions, except per share data and number of shares) Statement of income data: Interest income ¥ 7,157,320 ¥ 8,265,574 ¥ 8,613,865 Interest expense 4,532,397 5,177,377 4,929,611 Net interest income 2,624,923 3,088,197 3,684,254 Provision for credit losses 258,795 121,790 226,112 Net interest income after provision for credit losses 2,366,128 2,966,407 3,458,142 Non-interest income 2,875,384 2,570,535 3,253,399 Non-interest expense 3,363,286 3,741,366 4,202,046 Income before income tax expense 1,878,226 1,795,576 2,509,495 Income tax expense 500,657 527,938 625,591 Net income before attribution of noncontrolling interests 1,377,569 1,267,638 1,883,904 Net income attributable to noncontrolling interests 51,700 705 154,545 Net income attributable to Mitsubishi UFJ Financial Group ¥ 1,325,869 ¥ 1,266,933 ¥ 1,729,359 Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group ¥ 1,325,869 ¥ 1,266,933 ¥ 1,729,359 Amounts per share: Basic earnings per common share—Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group ¥ 110.69 ¥ 108.71 ¥ 151.74 Diluted earnings per common share—Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group 110.39 108.18 151.09 Number of shares used to calculate basic earnings per common share (in thousands) 11,978,725 11,654,295 11,396,985 Number of shares used to calculate diluted earnings per common share (in thousands)(1) 11,980,601 11,654,850 11,398,382 Cash dividends per share paid during the fiscal year: —Common stock ¥ 36.50 ¥ 45.50 ¥ 74.00 $ 0.25 $ 0.30 $ 0.50 2024 2025 2026 (in millions) Balance sheet data: Total assets ¥ 397,820,570 ¥ 405,940,211 ¥ 425,581,652 Loans, net of allowance for credit losses 126,553,342 130,195,440 143,584,884 Total liabilities 379,303,483 386,690,473 404,741,595 Deposits 247,136,000 249,415,006 260,755,340 Long-term debt 40,012,819 21,022,407 21,884,349 Total equity 18,517,087 19,249,738 20,840,057 Capital stock 2,090,270 2,090,270 2,090,270 52 Table of Contents 2024 2025 2026 (in millions, except percentages) Other financial data: Average balances: Interest-earning assets ¥ 293,884,430 ¥ 353,001,315 ¥ 345,715,572 Interest-bearing liabilities 301,043,486 310,201,720 307,402,122 Total assets 403,307,984 415,941,414 435,345,748 Total equity 19,351,573 19,929,870 20,289,298 Return on equity and assets: Earnings applicable to common shareholders as a percentage of average total assets 0.33 % 0.30 % 0.40 % Earnings applicable to common shareholders as a percentage of average total equity 6.85 % 6.36 % 8.52 % Dividends per common share as a percentage of basic earnings per common share 32.97 % 41.85 % 48.77 % Average total equity as a percentage of average total assets 4.80 % 4.79 % 4.66 % Net interest income as a percentage of average total interest-earning assets 0.89 % 0.87 % 1.07 % Credit quality data: Allowance for credit losses ¥ 1,356,961 ¥ 1,243,075 ¥ 1,234,340 Allowance for credit losses as a percentage of loans 1.06 % 0.95 % 0.85 % Net loan charge-offs ¥ 249,139 ¥ 266,259 ¥ 296,514 Net loan charge-offs as a percentage of average loans 0.20 % 0.20 % 0.22 % Average interest rate spread 0.93 % 0.67 % 0.89 % Risk-adjusted capital ratio calculated under Japanese GAAP(2) 17.82 % 18.83 % 16.85 % Notes: (1)Includes the common shares held by the trusts under the stock compensation and share-based compensation plans. See “Item 6.B. Directors, Senior Management and Employees—Compensation.” (2)Risk-adjusted capital ratios have been calculated in accordance with Japanese banking regulations as applicable on the relevant calculation date based on information derived from our consolidated financial statements prepared in accordance with Japanese GAAP. For a description of the applicable capital ratio calculation and other requirements applicable, see “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Capital adequacy” and “—B. Liquidity and Capital Resources—Capital Adequacy.” Business Environment Through our subsidiaries and affiliated companies, we engage in a broad range of financial businesses and services, including commercial banking, investment banking, trust assets and asset management services, securities businesses and credit card businesses, and provide related services to individuals primarily in Japan, Thailand and Indonesia and to corporate customers around the world. Our results of operations and financial condition are exposed to changes in various external economic factors, including: •general economic conditions, •interest rates, •foreign currency exchange rates, and •stock prices. General Economic Conditions The global economy expanded at a moderate pace through most of the fiscal year ended March 31, 2026. Trade and industrial policy changes in major markets continued to affect the economic conditions in countries around the world in various ways, while uncertainty arising from geopolitical developments, including the increasing tension in the Middle East and the prolonged Russia-Ukraine conflict, remained elevated, as these developments disrupted supply chains and increased inflationary pressure on commodity prices. At the same time, economic activities driving structural changes in the global economy and society accelerated, as exemplified by a surge in AI-related investments. The U.S. Federal Open Market Committee, the European Central Bank and other central banks started to lower their benchmark rates and cautiously ease their monetary policies after a period of tightening. On the other hand, in Japan, the Bank of Japan raised its policy rate slightly as the economy grew modestly while price increases kept downward pressure on household consumption. Global and regional economies remain susceptible to, and volatility in financial markets may increase due to, these and other events as well as future destabilizing developments. Japan’s economy generally exhibited some modestly positive trends during the fiscal year ended March 31, 2026. Japan’s real gross domestic product, or GDP, grew by 0.3% for the quarter ended June 30, 2025, contracted by 0.6% for the quarter ended September 30, 2025, and grew by 0.2% for the quarter ended December 31, 2025, and 0.5% for the quarter ended March 31, 2026, on a quarter-on-quarter basis. These fluctuations reflected both positive factors, such as wage increases, and negative factors, such as 53 Table of Contents inflationary pressures. On a year-on-year basis, Japan’s real GDP grew by 2.0% for the quarter ended June 30, 2025, 0.5% for the quarter ended September 30, 2025, 0.2% for the quarter ended December 31, 2025, and 0.6% for the quarter ended March 31, 2026. Japan’s Consumer Price Index, or CPI, fluctuated between minus 0.2% and 0.4% on a month-on-month basis and between 1.3% and 3.6% on a year-over-year basis during the fiscal year ended March 31, 2026. The unemployment rate in Japan remained at low levels, rising slightly from 2.5% in March 2025 to 2.7% in March 2026. According to Teikoku Databank, a Japanese research institution, the number of companies that filed for legal bankruptcy in Japan between April 2025 and March 2026 was 10,425, a 3.5% increase from the same period of the previous year. The total liabilities of companies that filed for legal bankruptcy during the fiscal year ended March 31, 2026 were ¥1,554 billion, a decrease of 31.0% from the previous fiscal year. The Japanese economy remains subject to instabilities resulting from various factors including geopolitical developments, increasing public debt, intensifying trade conflicts and global competition, declining domestic population, inflationary trends, downward pressure on private consumption, and changes in the Bank of Japan's monetary policy. The U.S. economy generally underwent upward trends through most of the fiscal year ended March 31, 2026, with U.S. real GDP growing by 3.8% for the quarter ended June 30, 2025, 4.4% for the quarter ended September 30, 2025, and 0.5% for the quarter ended December 31, 2025, and 2.1% for the quarter ended March 31, 2026, on a quarter-on-quarter annualized basis. On a year-on-year basis, U.S. real GDP grew by 2.1% for the quarter ended June 30, 2025, 2.3% for the quarter ended September 30, 2025, 2.0% for the quarter ended December 31, 2025, and 2.7% for the quarter ended March 31, 2026. The unemployment rate, however, increased slightly to 4.3% in March 2026 from 4.2% in March 2025. The long-term prospects of the U.S. economy remain uncertain in light of the impact of various factors including inflationary trends, geopolitical developments, changes in the political environment, instabilities in the real estate and banking sectors, and the U.S. government’s economic, monetary, trade and foreign relations policies. The Eurozone economy also grew modestly during the fiscal year ended March 31, 2026, with Eurozone real GDP growing by 0.1% for the quarter ended June 30, 2025, 0.3% for the quarter ended September 30, 2025 and 0.2% for the quarter ended December 31, 2025, and contracting by 0.2% for the quarter ended March 31, 2026, on a quarter-on-quarter basis. On a year-over-year basis, Eurozone real GDP grew by 1.6% for the quarter ended June 30, 2025, 1.4% for the quarter ended September 30, 2025, 1.2% for the quarter ended December 31, 2025, and 0.3% for the quarter ended March 31, 2026. The unemployment rate in the Eurozone remained unchanged at 6.3% in March 2026 compared to March 2025. The Eurozone economy remains subject to various uncertainties including instabilities resulting from inflationary trends, geopolitical developments, changes in governments' economic, monetary, trade and foreign relations policies, and concerns over the financial system. Thailand’s GDP in calendar year 2025 grew by 2.4% on a year-on-year basis, slightly decreasing from 2.5% in 2024. The annual headline inflation rate averaged negative 0.1%, down from positive 0.4% in the previous calendar year, representing the first full-year decline in headline consumer prices in five years, although the core inflation rate remained positive. The Monetary Policy Committee cut the policy rate by 100 basis points during calendar year 2025 in phases of four reductions of 25 basis points each, bringing the rate down from 2.25% in December 2024 to 1.25% in December 2025, the lowest level since December 2022. The Thai baht strengthened against the U.S. dollar over the course of calendar year 2025, appreciating to its strongest level in more than four years toward the end of the year, supported by a weaker U.S. dollar and capital inflows. Thailand’s GDP in the first quarter of calendar year 2026 expanded by 2.8% on a year-on-year basis and 0.7% on a seasonally adjusted quarter-on-quarter basis from the fourth quarter of calendar year 2025. Thailand’s economy remains subject to various uncertainties including the high household debt level, fluctuations in the global and regional economies, and instabilities resulting from geopolitical developments. In Asia excluding Japan and Thailand, economic conditions in ASEAN (Association of Southeast Asian Nations) and NIEs (Newly Industrializing Economies) generally improved and, overall, the economic growth continued during the fiscal year ended March 31, 2026. Meanwhile, in the Chinese economy, the downturn in the real estate market has led to a decline in consumer sentiment, deterioration in the employment environment, and prolonged moderate inflation, all of which may require time to improve and may have an adverse economic impact on other countries, particularly in ASEAN and NIEs. The economic conditions of these regions remain subject to various uncertainties including the fluctuations in the global and local economies as well as geopolitical developments and changes in economic, monetary, trade and foreign relations policies within China as well as those outside China. Interest Rates Interest rates in Japan have been on an upward trend due to such reasons as changes in, and market expectations for changes in, the Bank of Japan’s monetary policy, concerns over Japan's fiscal expansion, and domestic and global upward interest rate pressures. In March 2024, the Bank of Japan modified its monetary policy to encourage the uncollateralized overnight call rate to remain at around 0 to 0.1 percent. Thereafter, the Bank of Japan further raised the uncollateralized overnight call rate in July 2024, January 2025 and December 2025, and most recently in June 2026, bringing the rate to 1.0%, and is expected to continue to reduce its purchases of Japanese government bonds until March 2027. The yield on 10-year Japanese government bonds fluctuated between 1.117% and 2.388% during the fiscal year ended March 31, 2026. The yield has been fluctuating between around 2.3% and 2.8% since April 2026. 54 Table of Contents In the United States, the Federal Open Market Committee lowered the target for the federal funds rate to a target range of 3.50% to 3.75% through reduction by 0.25% at each of its September, October and December 2025 meetings. The Committee has kept the target range unchanged since then, maintaining a cautious, data-dependent stance amid still-elevated inflation. In addition, the Committee concluded the reduction of its holdings of Treasury securities and agency mortgage-backed securities, effective December 1, 2025. The 10-year U.S. Treasury bond yield increased to 4.319% at the end of March 2026 from 4.207% at the end of March 2025, while fluctuating between 3.941% and 4.601% during the period. The yield has been fluctuating between around 4.3% and 4.6% since April 2026. Foreign Currency Exchange Rates The Japanese yen depreciated against the U.S. dollar to ¥159.88 to the U.S. dollar as of March 31, 2026 from ¥149.52 to the U.S. dollar as of March 31, 2025. The Japanese yen has been fluctuating between around ¥157 and ¥162 to the U.S. dollar since April 2026. The Japanese yen was on a generally depreciating trend against the euro during the fiscal year ended March 31, 2026, with the exchange rate being ¥183.41 to the euro as of March 31, 2026 compared to ¥162.08 to the euro as of March 31, 2025. The Japanese yen has been fluctuating between around ¥183 and ¥187 to the euro since April 2026. The Japanese yen was on a generally depreciating trend against the Thai baht during the fiscal year ended March 31, 2026, with the exchange rate being ¥4.86 to the Thai baht as of March 31, 2026 compared to ¥4.40 to the Thai baht as of March 31, 2025. The Japanese yen has been fluctuating between around ¥4.76 and ¥4.99 to the Thai baht since April 2026. Stock Prices The closing price of the Nikkei Stock Average, which is the average of 225 blue chip stocks listed on the Tokyo Stock Exchange, increased to ¥51,063.72 on March 31, 2026 from ¥35,617.56 on March 31, 2025. The closing price of the Nikkei Stock Average has been fluctuating between around ¥52,000 and ¥72,000 since April 2026, reaching highest levels in history. Recent Developments During the fiscal year ended March 31, 2026, we engaged in transactions to ensure adequate capital base and structure, while pursuing strategies to improve our capital management and seek opportunities to grow our business. Japan faces some challenges such as a declining birth rate, an aging society and a shrinking population, while low growth has become normalized throughout the world. The environment we operate in has been affected by issues including significant inflationary price trends, instability in the financial system, geopolitical conflicts, changes in economic, monetary and trade policies adopted in major markets, evolving views on environmental and social issues, and advances in digital technologies that enable the entry of new competitors in the financial sector. These developments are changing the business environment in significant ways and with unprecedented speed. MUFG seeks to meet these changes with clear visions and to make the most of these challenges as opportunities for growth. Under our medium-term business plan for the three years ending in the fiscal year ending March 31, 2027, we aim to leverage our extensive network and diverse solutions to provide value to our stakeholders around the world. Implementation of Share Repurchase Programs and Cancellation of Treasury Shares During November 2025 through February 2026, we repurchased 94,456,300 shares of our common stock for ¥249,999,908,452 under a share repurchase program that was adopted in November 2025. Under the program, we were authorized by the Board of Directors to repurchase up to the lesser of 130,000,000 shares of our common stock and ¥250.0 billion between November 17, 2025 and February 27, 2026. In addition, we canceled 200,000,000 shares of our common stock held in treasury on November 28, 2025. During May and June 2026, we repurchased 31,967,100 shares of our common stock for ¥99,999,771,608 under a share repurchase program that was adopted in May 2026. Under the program, we were authorized by the Board of Directors to repurchase up to the lesser of 45,000,000 shares of our common stock and ¥100.0 billion from May 18, 2026 to June 30, 2026. Based on information derived from Japanese GAAP-based financial data and used to calculate our capital ratios under applicable Japanese regulations, we estimate that, based on our repurchase of ¥100.0 billion of our common stock pursuant to this program, each of our Common Equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio as of March 31, 2026 would decline by approximately 0.1 percentage points. We intend to agilely engage in repurchases of shares of our own stock as a means to return profits to shareholders and improve capital efficiency, taking into account our business performance and capital position, opportunities for growth investments, and market conditions including stock prices. As a general policy, we intend to cancel treasury shares to the extent that such shares exceed approximately 5% of our total issued shares (including treasury shares). 55 Table of Contents Issuances and Redemption of TLAC Eligible Senior Debt During the fiscal year ended March 31, 2026, we obtained $9.0 billion, or ¥1,438.9 billion, €1.7 billion, or ¥302.6 billion, and ¥40.0 billion, aggregate principal amount of External TLAC eligible senior debt financing in the form of securities issuance. During the same period, we redeemed ¥75.5 billion, $1.3 billion, or ¥207.8 billion, aggregate principal amount of External TLAC eligible senior debt. In April 2026, we issued $5.5 billion, or ¥879.3 billion, and €0.5 billion, or ¥91.7 billion, aggregate principal amount of External TLAC eligible senior debt in the form of securities issuance. In June 2026, we redeemed €0.5 billion, or ¥91.7 billion, aggregate principal amount of External TLAC eligible senior debt. As of March 31, 2026, our External TLAC ratios were 23.25% on a risk-weighted assets basis and 9.06% on a total exposure basis. As of the same date, we were required to maintain External TLAC ratios of at least 18% on a risk-weighted assets basis and 7.10% on a total exposure basis. See “—B. Liquidity and Capital Resources—Capital Adequacy” below and “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Total loss-absorbing capacity.” Issuances and Redemption of Basel III-Compliant Subordinated Debt During the fiscal year ended March 31, 2026, we obtained $1.0 billion, or ¥159.9 billion, and ¥350.0 billion, aggregate principal amount of perpetual subordinated Additional Tier 1 debt financing in the form of securities issuance and borrowings. During the same period, we redeemed or repaid ¥181.0 billion aggregate principal amount of perpetual subordinated Additional Tier 1 debt. In April 2026, we issued ¥350.0 billion aggregate principal amount of perpetual subordinated Additional Tier 1 debt in the form of securities issuance. These securities and borrowings are subject to our discretion to cease interest payments and a write-down of the principal upon the occurrence of certain events, including when our Common Equity Tier 1 capital ratio declines below 5.125% (but, following any such write-down, the principal may be reinstated if the ratio improves and to the extent permitted by the Japanese banking regulator), when we are deemed to have reached the point of non-viability (“PONV”) or when we become subject to bankruptcy proceedings. During the fiscal year ended March 31, 2026, we obtained ¥172.0 billion aggregate principal amount of subordinated term Tier 2 debt financing in the form of securities issuance in Japan. During the same period, we redeemed or repaid ¥176.0 billion aggregate principal amount of subordinated term Tier 2 debt. In April and June 2026, we redeemed ¥55.0 billion aggregate principal amount of subordinated term Tier 2 debt. We can be exempted from the obligation to pay principal of and interest on the securities or the borrowings, as applicable, when we are deemed to have reached the PONV. According to the FSA’s approach, PONV will be deemed to have been reached when the Prime Minister of Japan, following deliberation by Japan’s Financial Response Crisis Council pursuant to the Deposit Insurance Act of Japan (“DIA”), confirms that Specified Item 2 Measures need to be applied to MUFG under circumstances where its liabilities exceed or are likely to exceed its assets, or it has suspended or is likely to suspend payment of its obligations. Investment in Shares of JACCS through a Third-Party Allotment In September 2025, MUFG Bank acquired 9,980,831 newly issued shares of common stock of JACCS Co., Ltd., an equity-method investee of MUFG Bank, through a third-party allotment transaction for approximately ¥39.0 billion. Additionally, through transfers of the JACCS shares previously held by Mitsubishi UFJ NICOS and Mitsubishi UFJ Trust and Banking, MUFG Bank's ownership ratio further increased to 39.43%. Following these transactions, JACCS remains an equity-method investee of MUFG Bank. Acquisition of Zenhoren On April 10, 2025, Mitsubishi UFJ NICOS acquired 13,026,468 shares, representing 50.02% of the shares, of Zenhoren Co., Ltd., a rent guarantee company, for ¥13.0 billion through a tender offer conducted from February 17, 2025 through April 3, 2025. This transaction was part of the capital and business alliance agreement entered into among Mitsubishi UFJ NICOS, MUFG Bank and Zenhoren in February 2025. Mitsubishi UFJ NICOS has also agreed with Mitsubishi UFJ Factors Ltd., a wholly owned subsidiary of MUFG Bank, that Mitsubishi UFJ Factors would exercise the voting rights on the 384,615 shares, representing 1.48% of the shares, of Zenhoren it holds in accordance with the intentions of Mitsubishi UFJ NICOS. Consequently, on April 16, 2025, Zenhoren became a consolidated subsidiary of Mitsubishi UFJ NICOS. Investment in Shriram Finance Ltd. through a Preferential Allotment of Shares 56 Table of Contents On April 8, 2026, MUFG Bank acquired 20.00%, on a fully diluted basis, of the shares of Shriram Finance, a non-banking financial company (NBFC) in India, for approximately ¥713.3 billion, including the purchase consideration for the shares and acquisition-related costs, through a preferential allotment of newly issued shares. Upon completion of this investment, Shriram Finance became an equity method affiliate of both MUFG and MUFG Bank. This investment represents an important step that underscores our long-term commitment to the Indian market and is expected to contribute to India's sustainable economic growth and the advancement of financial inclusion. For more information, see Note 33 to our consolidated financial statements. 57 Table of Contents A.Operating Results The following discussion relates to our operating results for the fiscal years ended March 31, 2026 compared to our operating results for the fiscal year ended March 31, 2025, unless otherwise noted. For the discussion on our operating results for the fiscal year ended March 31, 2024, including certain comparative discussion on our operating results for the fiscal years ended March 31, 2024 and 2025, please refer to “Item 5.A. Operating and Financial Review and Prospects—Operating Results” in our annual report on Form 20-F for the fiscal year ended March 31, 2025, filed with the SEC on July 7, 2025. Results of Operations Fiscal years ended March 31, 2025 2026 % Change (in billions, except percentages) Interest income ¥ 8,265.6 ¥ 8,613.9 4.2 % Interest expense 5,177.4 4,929.6 (4.8) Net interest income 3,088.2 3,684.3 19.3 Provision for credit losses 121.8 226.2 85.7 Non-interest income 2,570.5 3,253.4 26.6 Non-interest expense 3,741.4 4,202.0 12.3 Income before income tax expense 1,795.5 2,509.5 39.8 Income tax expense 527.9 625.6 18.5 % Net income before attribution of noncontrolling interests ¥ 1,267.6 ¥ 1,883.9 48.6 % Net income attributable to noncontrolling interests 0.7 154.5 N/M Net income attributable to Mitsubishi UFJ Financial Group ¥ 1,266.9 ¥ 1,729.4 36.5 % We recorded net income attributable to Mitsubishi UFJ Financial Group of ¥1,729.4 billion for the fiscal year ended March 31, 2026, compared to net income of ¥1,266.9 billion for the previous fiscal year, primarily due to an increase in net interest income and an increase in non-interest income, although this positive impact was partially offset by an increase in non-interest expense. Net interest income increased 19.3%, reflecting improvements in both domestic and foreign net interest income. Net domestic interest income increased primarily due to an increase of 0.15 percentage points in our domestic interest rate spread, while net foreign interest income also increased mainly due to an increase in the balance of interest-earning assets, together with an increase of 0.18 percentage points in our foreign interest rate spread. Provision for credit losses increased mainly due to the provision for credit losses related to a large borrower in the foreign manufacturing sector. Non-interest income increased 26.6%, driven primarily by increases in net investment securities gains reflecting the impact of higher stock prices as well as fees and commissions income. Non-interest expense increased 12.3% mainly due to increases in salaries and employee benefits, outsourcing expenses, including data processing, fees and commissions expenses, and other non-interest expenses, including cost of goods purchased in connection with the expansion of a subsidiary's trading business. Net Interest Income 58 Table of Contents Fiscal years ended March 31, 2025 2026 % Change Average balance(1) Interestincome(expense) Averagerate Averagebalance(1) Interestincome(expense) Averagerate Average balance Interestincome(expense) Averagerate 2026minus2025(percentagepoints) (in billions, except percentages) Interest-earning assets: Domestic ¥ 228,422.7 ¥ 1,558.8 0.68 % ¥ 211,766.2 ¥ 2,122.7 1.00 % (7.3 %) 36.2 % 0.32 Foreign 124,578.6 6,706.8 5.38 133,949.4 6,491.2 4.85 7.5 (3.2) (0.53) Total ¥ 353,001.3 ¥ 8,265.6 2.34 % ¥ 345,715.6 ¥ 8,613.9 2.49 % (2.1 %) 4.2 % 0.15 Financed by: Interest-bearing liabilities: Domestic ¥ 220,664.5 ¥ (1,379.8) 0.63 % ¥ 217,347.4 ¥ (1,748.5) 0.80 % (1.5 %) 26.7 % 0.17 Foreign 89,537.2 (3,797.6) 4.24 90,054.7 (3,181.1) 3.53 0.6 (16.2) (0.71) Total 310,201.7 (5,177.4) 1.67 307,402.1 (4,929.6) 1.60 (0.9) (4.8) (0.07) Non-interest-bearing liabilities (assets) 42,799.6 — 38,313.5 — (10.5) — Total ¥ 353,001.3 1.47 % ¥ 345,715.6 1.43 % (2.1 %) (0.04) Net interest income and interest rate spread ¥ 3,088.2 0.67 % ¥ 3,684.3 0.89 % 19.3 % 0.22 Net interest income as a percentage of total interest-earning assets 0.87 % 1.07 % 0.20 Note: (1)Average balances are generally based on a daily average while a month-end average is used for certain average balances when it is not practicable to obtain applicable daily averages. Effect of Volume and Rate Changes on Net Interest Income Fiscal Year Ended March 31, 2025versusFiscal Year Ended March 31, 2026 Increase (decrease)due to changes in Volume(1) Rate(1) Net change (in millions) Domestic ¥ 74,999 ¥ 120,203 ¥ 195,202 Foreign 399,168 1,687 400,855 Total ¥ 474,167 ¥ 121,890 ¥ 596,057 Note: (1)Volume/rate variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total “net change.” Net interest income increased 19.3% to ¥3,684.3 billion for the fiscal year ended March 31, 2026, compared to the previous fiscal year. Our total average interest rate spread (which is the average interest rate on interest-earning assets less the average interest rate on interest-bearing liabilities) increased 0.22 percentage points to 0.89%. Net domestic interest income increased to ¥374.2 billion for the fiscal year ended March 31, 2026 from ¥179.0 billion for the fiscal year ended March 31, 2025 mainly due to an improvement in our interest rate spread in the rising interest rate environment in Japan out of the historical zero-interest rate environment. As a result of our asset and liability management in anticipation of, and response to, such environment where interest rates were gradually rising, our average domestic interest rate spread increased to 0.2% from 0.05%. Domestic interest income increased 36.2% to ¥2,122.7 billion, mainly reflecting the rising interest rate environment in Japan. The average interest rate on domestic interest-earning assets increased 0.32 percentage points to 1.00%. The average balance of domestic interest-earning assets decreased 7.3% to ¥211,766.2 billion, primarily reflecting a decrease in interest-earning deposits in 59 Table of Contents other banks. Domestic interest expense increased 26.7% to ¥1,748.5 billion, mainly reflecting the rising interest rate environment in Japan. The average interest rate on domestic interest-bearing liabilities increased 0.17 percentage points to 0.8%. The average balance of domestic interest-bearing liabilities decreased 1.5% to ¥217,347.4 billion. Net foreign interest income increased to ¥3,310.1 billion for the fiscal year ended March 31, 2026 from ¥2,909.2 billion for the fiscal year ended March 31, 2025 mainly due to an increase in foreign interest-earning assets, with an improvement in our interest rate spread in the declining short-term interest rate environment overseas. Interest rates on our interest-earning foreign assets, including loans, declined to a lesser extent compared to our foreign interest-bearing liabilities, including deposits, while the balance of our foreign interest-earning assets was approximately 1.5 times the balance of our foreign interest-bearing liabilities. Our average foreign interest rate spread increased to 1.32% from 1.14%. Foreign interest income decreased 3.2% to ¥6,491.2 billion mainly due to the decline in short-term interest rates overseas and a decrease in the balance of loans carrying higher margins in our loan portfolio as a result of repayment or sale of such loans. The average interest rate on foreign interest-earning assets decreased 0.53 percentage points to 4.85%. The average balance of foreign interest-earning assets increased 7.5% to ¥133,949.4 billion. Foreign interest expense decreased 16.2% to ¥3,181.1 billion mainly due to the decline in short-term interest rates overseas. The average interest rate on foreign interest-bearing liabilities decreased 0.71 percentage points to 3.53%. The average balance of foreign interest-bearing liabilities increased 0.6% to ¥90,054.7 billion. Provision for credit losses We recorded ¥226.2 billion of provision for credit losses for the fiscal year ended March 31, 2026, compared to ¥121.8 billion of provision for credit losses for the previous fiscal year. Provision for credit losses increased ¥104.4 billion mainly due to the provision for credit losses related to a large borrower in the foreign manufacturing sector. Meanwhile, provision for the Krungsri segment decreased, mainly reflecting the positive impact of measures implemented by Krungsri and its subsidiaries to improve loan collection and the asset quality of their automobile loan portfolios. 60 Table of Contents Non-Interest Income Fiscal years ended March 31, 2025 2026 % Change (in billions, except percentages) Fees and commissions income: Fees and commissions on deposits ¥ 36.2 ¥ 34.4 (5.1) % Fees and commissions on remittances and transfers 160.6 168.0 4.6 Fees and commissions on foreign trading business 83.6 92.7 10.9 Fees and commissions on credit card business 276.6 277.8 0.4 Fees and commissions on security-related services 361.4 433.5 19.9 Fees and commissions on administration and management services for investment funds 340.0 351.7 3.4 Trust fees 140.5 155.7 10.8 Guarantee fees 55.2 58.0 5.1 Insurance commissions 76.5 96.8 26.5 Fees and commissions on real estate business 71.6 76.4 6.7 Other fees and commissions 583.5 677.3 16.1 Total 2,185.7 2,422.3 10.8 Foreign exchange gains (losses)—net 154.0 (636.2) N/M Trading account profits (losses)—net: Net losses on interest rate and other derivative contracts (95.7) (1,703.1) N/M Net profits on trading account securities, excluding derivatives 128.0 1,052.5 N/M Total 32.3 (650.6) N/M Investment securities gains (losses)—net: Net losses on sales of available-for-sale debt securities (150.8) (309.0) (104.9) Reversal of impairment losses (impairment losses) onavailable-for-sale debt securities (13.0) 0.1 100.5 Net gains (losses) from marketable equity securities (654.3) 982.0 250.1 Other (14.4) (7.0) 51.3 Total (832.5) 666.1 180.0 Equity in earnings of equity method investees—net 669.4 871.2 30.1 Gains on sales of loans including valuation adjustment for loans held for sale 41.7 4.8 (88.6) Unrealized gain on the contract to purchase equity shares of Shriram Finance Limited (1) — 25.1 N/M Other non-interest income 320.0 550.7 72.1 Total non-interest income ¥ 2,570.5 ¥ 3,253.4 26.6 % Note: (1)Represents gains recognized in connection with the contract to purchase equity shares of Shriram Finance Limited. See Note 33 to our audited consolidated financial statements for further information. Non-interest income for the fiscal year ended March 31, 2026 increased 26.6% to ¥3,253.4 billion compared to the previous fiscal year. This increase mainly reflected improvements in net investment securities gains and fees and commissions income, partially offset by the impact of negative changes in net foreign exchange losses and net trading account losses. Fees and commissions income Fees and commissions income for the fiscal year ended March 31, 2026 increased 10.8% compared to the previous fiscal year. This increase was primarily due to an increase in fees and commissions on security-related services, primarily reflecting increased market activity by corporate clients, in our commercial banking subsidiaries and securities subsidiaries, and an increase in financing-related fees included in other fees and commissions in our commercial banking subsidiaries and trust banking subsidiaries. 61 Table of Contents Net foreign exchange gains (losses) Fiscal years ended March 31, 2025 2026 % Change (in billions, except percentages) Foreign exchange gains (losses)—net: Net foreign exchange gains (losses) on derivative contracts ¥ 447.0 ¥ (760.1) (270.0) % Net foreign exchange losses on other than derivative contracts (331.4) (1,807.6) N/M Net foreign exchange gains related to the fair value option 38.4 1,931.5 N/M Total ¥ 154.0 ¥ (636.2) N/M Net foreign exchange gains (losses) consist of the following: •Net foreign exchange gains (losses) on derivative contracts are net gains (losses) primarily on currency derivative instruments entered into for trading purposes. •Net foreign exchange gains (losses) on other than derivative contracts include foreign exchange trading gains (losses) as well as transaction gains (losses) on the translation into Japanese yen of monetary assets and liabilities denominated in foreign currencies. The transaction gains (losses) on the translation into Japanese yen fluctuate from period to period depending upon the spot rates at the end of each fiscal year. In principle, all transaction gains (losses) on translation of monetary assets and liabilities denominated in foreign currencies are included in current earnings. •Net foreign exchange gains (losses) related to the fair value option include transaction gains (losses) on the translation into Japanese yen of securities under the fair value option. See Note 31 to our consolidated financial statements. Net foreign exchange losses for the fiscal year ended March 31, 2026 mainly reflected net foreign exchange losses on derivative contracts and net foreign exchange losses on other than derivative contracts. Given the global nature of our business, we enter into various foreign currency transactions throughout each fiscal year across various currencies. For the fiscal year ended March 31, 2026, we recorded ¥760.1 billion of net foreign exchange losses on derivative contracts, compared to ¥447.0 billion of net gains for the previous fiscal year. Our foreign exchange gains and losses on other than derivative contracts fluctuate throughout each fiscal year depending on the spot rates applicable to specific transactions as well as the spot rate applicable at the end of the fiscal year. Net foreign exchange gains and losses related to the fair value option arise from transactions in foreign currency-denominated trading account securities such as U.S. Treasury bonds. The Japanese yen depreciated against the U.S. dollar on a spot rate basis to ¥159.88 to the U.S. dollar as of March 31, 2026 from ¥149.52 to the U.S. dollar as of March 31, 2025. While net foreign exchange gains related to the fair value option improved, the improvement was more than offset by the negative impact of net foreign exchange losses on derivative contracts and net foreign exchange losses on other than derivative contracts. 62 Table of Contents Net trading account profits (losses) Fiscal years ended March 31, 2025 2026 % Change (in billions, except percentages) Trading account profits (losses)—net: Net losses on interest rate and other derivative contracts Interest rate contracts ¥ (238.9) ¥ (916.1) (283.5) % Equity contracts 196.0 (770.0) N/M Commodity contracts (0.2) (0.2) 7.6 Credit derivatives (9.9) (12.9) (30.1) Other (42.7) (3.9) 90.9 Total ¥ (95.7) ¥ (1,703.1) N/M Net profits on trading account securities, excluding derivatives Trading account securities ¥ 126.4 ¥ 924.6 N/M Trading account securities under the fair value option 1.6 127.9 N/M Total ¥ 128.0 ¥ 1,052.5 N/M Total ¥ 32.3 ¥ (650.6) N/M Trading account assets and liabilities are carried at fair value and changes in the value of trading account assets and liabilities are recorded in net trading account profits (losses). Activities reported in our net trading account profits (losses) can generally be classified into two categories: •trading purpose activities, which are conducted mainly for the purpose of generating profits either through transaction fees or arbitrage gains and involve frequent and short-term selling and buying of securities, commodities or others; and •trading account assets relating to the application of certain accounting rules, which are generally not related to trading purpose activities, but simply classified as trading accounts due to the application of certain accounting rules. Of the two categories, trading account assets relating to the application of certain accounting rules represent a smaller portion of our trading account profits (losses) for the fiscal year ended March 31, 2026. We generally do not separate, for financial reporting purposes, customer originated trading activities from non-customer related, proprietary trading activities. When an order for a financial product is placed by a customer, a dealer offers a price which includes certain transaction fees, often referred to as the “margin” to the market price. The margin is determined by considering factors such as administrative costs, transaction amount and liquidity of the applicable financial product. Once the customer agrees to the offered price, the deal is completed, and the position is recorded in our ledger as a single entry without any separation of components. To manage the risk relating to the customer side position, we often enter into an offsetting transaction with the market. Unrealized gains and losses as of the period-end for both the customer side position and the market side position are recorded within the same trading account profits and losses. Net trading account profits (losses) consist of net profits (losses) on interest rate and other derivative contracts and net profits (losses) on trading account securities, excluding derivatives. Net profits (losses) on interest rate and other derivative contracts are reported for net profits (losses) on derivative instruments which primarily relate to trading purpose activities and include: •Interest rate contracts: Interest rate contracts are mainly utilized to manage interest rate risks which could arise from mismatches between assets and liabilities resulting from customer originated trading activities; •Equity contracts: Equity contracts are mainly utilized to manage the risk that would arise from price fluctuations of stocks held in connection with customer transactions; •Commodity contracts: Commodity contracts are mainly utilized to meet customers’ demand for hedging the risks relating to commodity price fluctuations in their transactions, and to diversify our portfolio of derivative instruments held for trading purposes; and •Credit derivatives: Credit derivatives are mainly utilized as a part of our credit portfolio risk management. 63 Table of Contents Derivative instruments for trading purposes also include those used as hedges of net exposures rather than for specifically identified assets or liabilities, which do not meet the specific criteria for hedge accounting. Net profits (losses) on trading account securities, excluding derivatives, consist of: •Net profits (losses) on trading account securities, which primarily consist of gains and losses on trading and valuation of trading securities which relate to trading purpose activities. Net profits (losses) on investment securities held by certain consolidated variable interest entities, or VIEs, are included in accordance with the applicable accounting rules. •Net profits (losses) on trading account securities under the fair value option, which are classified into trading account profits (losses) in accordance with certain accounting rules. Net trading account losses for the fiscal year ended March 31, 2026, compared to net profits for the previous fiscal year, mainly reflected increased losses on interest rate contracts on a net basis in the rising interest rate environment in Japan. The net losses on equity contracts mainly reflected a decrease in equity swaps gains in our banking subsidiaries, driven by the rise in Japanese stock prices. Net investment securities gains (losses) Net investment securities gains (losses) include net gains (losses) on sales of available-for-sale debt securities, impairment losses on available-for-sale debt securities, and net gains (losses) from marketable equity securities. Impairment loss on an available-for-sale debt security is recognized as part of investment securities losses if the fair value of such security is below its amortized cost basis and (1) such debt security is held by us with the intent to sell or (2) it is more likely than not that we will be required to sell such debt security before recovering its amortized cost basis. In other circumstances where the fair value of available-for-sale debt securities is less than the amortized cost basis, we recognize the credit component of the impairment loss as part of investment securities losses, and record an allowance for credit losses to the same extent, while recording the noncredit component of the impairment loss in accumulated other comprehensive losses. Net gains (losses) from marketable equity securities include net gains (losses) on sales of marketable equity securities as well as unrealized gains (losses) on such securities. Net investment securities gains for the fiscal year ended March 31, 2026 were ¥666.1 billion, compared to net losses of ¥832.5 billion for the fiscal year ended March 31, 2025, primarily due to net gains from marketable equity securities of ¥982.0 billion for the fiscal year ended March 31, 2026, compared to net losses of ¥654.3 billion for the previous fiscal year. The net gains from marketable equity securities for the fiscal year ended March 31, 2026 mainly reflected net unrealized gains on marketable equity securities reflecting higher stock prices in Japan. This improvement in net gains from marketable equity securities was partially offset by increased net losses on sales of available-for-sale debt securities primarily reflecting lower prices of such debt securities in Japan. Net equity in earnings of equity method investees Net equity in earnings of equity method investees for the fiscal year ended March 31, 2026 was ¥871.2 billion, compared to ¥669.4 billion for the previous fiscal year. This improvement reflected higher earnings of our equity method investees, including Morgan Stanley. 64 Table of Contents Non-Interest Expense Fiscal years ended March 31, 2025 2026 % Change (in billions, except percentages) Salaries and employee benefits ¥ 1,473.6 ¥ 1,594.0 8.2 % Occupancy expenses—net 160.0 162.1 1.3 Fees and commissions expenses 424.6 477.7 12.5 Outsourcing expenses, including data processing 325.1 396.7 22.0 Depreciation of premises and equipment 88.3 87.8 (0.6) Amortization of intangible assets 295.1 337.1 14.2 Impairment of intangible assets 14.4 8.4 (41.4) Insurance premiums, including deposit insurance 98.9 100.6 1.7 Communications 65.0 68.1 4.8 Taxes and public charges 113.1 143.3 26.7 Impairment of goodwill 150.1 97.5 (35.1) Reversal of off-balance sheet credit instruments (0.7) (23.3) N/M Other non-interest expenses 533.9 752.0 40.9 Total non-interest expense ¥ 3,741.4 ¥ 4,202.0 12.3 % Non-interest expense for the fiscal year ended March 31, 2026 increased 12.3% compared to the previous fiscal year, mainly due to an increase in salaries and employee benefits, outsourcing expenses, including data processing, fees and commission expenses and other non-interest expenses. Salaries and employee benefits Salaries and employee benefits for the fiscal year ended March 31, 2026 increased 8.2% compared to the previous fiscal year mainly due to MUFG Pension & Market Services Holdings Limited being consolidated for the full fiscal year as well as the acquisition of Tidlor Holdings in August 2025. Fees and commissions expenses Fees and commissions expenses for the fiscal year ended March 31, 2026 increased 12.5% mainly due to an increase in legal and other fees and costs related to the rent guarantee business of Zenhoren acquired in April 2025 and an increase in royalty fees associated with alliances with other companies. Outsourcing expenses, including data processing Outsourcing expenses, including data processing, for the fiscal year ended March 31, 2026 increased 22.0% mainly due to an increase in outsourcing expenses related to AI, IT systems, and cybersecurity in our banking subsidiaries. Other non-interest expenses Other non-interest expenses for the fiscal year ended March 31, 2026 increased 40.9% mainly due to an increase in cost of goods purchased in connection with the expansion of the trading business at MUFG Trading Co., Ltd., a subsidiary of our banking subsidiaries. Impairment of goodwill We recognized ¥38.6 billion of impairment of goodwill relating to the MUFG Pension & Market Services reporting unit within the Asset Management & Investor Services Business Group segment for the fiscal year ended March 31, 2026. The reporting unit’s cash flow projections decreased in the reporting period primarily due to the loss of a significant client and the decline in corporate 65 Table of Contents activities in the relevant capital market. As a result, the fair value of the reporting unit as measured at the period end fell below the carrying amount of the reporting unit. For the fiscal year ended March 31, 2026, we also recognized ¥53.7 billion of impairment of goodwill relating to the First Sentier Group reporting unit within the Asset Management & Investor Services Business Group segment. The reporting unit’s cash flow projections decreased and the discount rate increased, primarily due to lower projected revenues and profitability of AlbaCore Capital Group, reflecting the delayed timing of new fund launches and increased upfront investments in new business strategies prior to revenue generation from those new funds. As a result, the fair value of the reporting unit as measured at the period end fell below the carrying amount of the reporting unit. As previously reported, we recognized ¥109.9 billion of impairment of goodwill relating to the same reporting unit for the fiscal year ended March 31, 2025. See Note 6 to our consolidated financial statements for more information. Income Tax Expense Beginning in the fiscal year ended March 31, 2026, we have prospectively adopted new disclosure guidance based on the Japanese national statutory tax rate. Our prior disclosure was based on combined normal effective statutory tax rates, which generally represent the aggregate of income taxes imposed by the Japanese national, prefectural and municipal governments. For more information, see Note 8 to our consolidated financial statements. Fiscal years ended March 31, 2025 2026 (in billions, except percentages) Income from continuing operations before income tax expense ¥ 1,795.6 ¥ 2,509.5 Income tax expense 527.9 625.6 Effective income tax rate 29.4 % 24.9 % Combined normal effective statutory tax rate 30.6 % 30.6 % National statutory corporate tax rate 24.7 % 24.7 % 66 Table of Contents Reconciliation of Combined Normal Effective Statutory Tax Rate to Effective Income Tax Rate Fiscal year ended March 31, 2025 Combined normal effective statutory tax rate 30.6 % Increase (decrease) in taxes resulting from: Nondeductible expenses 0.4 Impairment of goodwill 2.4 Foreign tax credit and payments 0.2 Lower tax rates applicable to income of subsidiaries (2.5) Change in valuation allowance 0.3 Nontaxable dividends received (5.3) Undistributed earnings of subsidiaries 1.8 Tax and interest expense for uncertainty in income taxes 1.7 Tax penalty and tax refund (2.9) (1) Noncontrolling interest income 0.1 Effect of changes in tax laws 1.2 Expiration of loss carryforward 1.4 Other—net 0.0 Effective income tax rate 29.4 % Note: (1)For the fiscal year ended March 31, 2025, MUAH recognized tax benefit of ¥52.1 billion related to an amendment of its California state tax return, resulting in a 2.9 percentage point decrease in the effective tax rate. Reconciliation of National Statutory Corporate Tax Rate to Effective Income Tax Rate Fiscal year ended March 31, 2026 National statutory corporate tax rate 24.7 % Prefectural and municipal tax, net of national income tax effect(1) 4.1 Foreign tax effects (0.4) Effect of changes in tax laws (0.5) Change in valuation allowances (0.8) Changes in unrecognized tax benefits 0.0 Effect of cross-border tax laws Foreign branch tax rate difference 0.8 Other(2) 0.9 Tax credits (0.2) Nontaxable income Nontaxable dividends received (3.3) Other 0.0 Nondeductible expenses Impairment of goodwill 0.1 Other (0.1) Tax penalty and tax refund 0.0 Expiration of loss carryforward 0.5 Undistributed earnings of subsidiaries 0.2 Other-net (1.1) Effective income tax rate 24.9 % 67 Table of Contents Notes: (1)This category includes income taxes imposed by prefectures and municipalities in Japan. Domestic local income tax in Tokyo made up the majority (greater than 50 percent) of the tax effect in this category. (2)This category includes the income tax effect of Pillar Two top-up tax and the Japan tax effect of foreign branches. Income taxes applicable to us in Japan are imposed by the national, prefectural and municipal governments, and the aggregate of these taxes resulted in a combined normal effective statutory tax rate of 30.6% for each of the fiscal years ended March 31, 2025 and 2026. For each of the same fiscal years, the income tax rate imposed by the Japanese national government was 24.7%. Foreign subsidiaries are subject to income taxes of the jurisdictions in which they operate. These taxes are reflected in the effective income tax rate. On March 31, 2025, the “Act to Partially Amend the Income Tax Act, etc.” was promulgated in Japan. Under this legislation, starting from fiscal years beginning on or after April 1, 2026, a “Special Corporate Tax for National Defense” surcharge is expected to be added to the corporate tax rate, causing an approximately 0.9% increase in the applicable normal effective statutory tax rate from 30.6% to 31.5%. The change in tax laws resulted in an increase of ¥21.0 billion in income tax expense for the fiscal year ended March 31, 2025. Fiscal Year Ended March 31, 2026 The effective income tax rate for the fiscal year ended March 31, 2026 was 24.9%, which was 0.2 percentage points higher than the national statutory corporate tax rate of 24.7%. This higher effective income tax rate primarily reflected prefectural and municipal tax, net of national income tax effect, partially offset by the effect of our receipt of nontaxable dividends. The effect of the prefectural and municipal tax, net of national income tax effect, resulted in an increase of ¥102.9 billion in income tax expense, with an increase of 4.1 percentage points in the effective income tax rate, for the fiscal year ended March 31, 2026. The effect of our receipt of nontaxable dividends resulted in a decrease of ¥82.6 billion in income tax expense, with a decrease of 3.3 percentage points in the effective income tax rate, for the same fiscal year. Under Japanese tax law, a certain percentage of dividends received is considered nontaxable and excluded from gross revenue in computing taxable income. This creates a permanent difference between our taxable income for Japanese tax purposes and our income before income tax expense reported under U.S. GAAP. Fiscal Year Ended March 31, 2025 The effective income tax rate for the fiscal year ended March 31, 2025 was 29.4%, which was 1.2 percentage points lower than the combined normal effective statutory rate of 30.6%. This lower effective income tax rate primarily reflected our receipt of nontaxable dividends, which resulted in a decrease of ¥95.4 billion in income tax expense and a decrease of 5.3 percentage points in the effective income tax rate for the fiscal year ended March 31, 2025. Another factor contributing to the lower effective income tax rate was ¥52.1 billion of tax benefit recognized by MUFG Americas Holdings relating to an amendment to its California state tax return, resulting in a 2.9 percentage point decrease in the effective tax rate. Partially offsetting the downward impact of the foregoing factors was the impact of the impairment of goodwill relating to First Sentier Investors, which is now known as First Sentier Group, and Mandala Multifinance, as discussed above, which resulted in an increase of ¥42.9 billion in income tax expense and an increase of 2.4 percentage points in the effective income tax rate for the fiscal year ended March 31, 2025. Net income attributable to noncontrolling interests We recorded ¥154.5 billion of net income attributable to noncontrolling interests for the fiscal year ended March 31, 2026, compared to ¥0.7 billion of net income attributable to noncontrolling interests for the previous fiscal year. This mainly reflected an increase in net income of certain consolidated VIEs. 68 Table of Contents Business Segment Analysis We measure the performance of each of our business segments primarily in terms of “operating profit.” Operating profit and other segment information in this Annual Report are based on the financial information prepared in accordance with Japanese GAAP as adjusted in accordance with internal management accounting rules and practices. Accordingly, the format and information are not consistent with our consolidated financial statements prepared in accordance with U.S. GAAP. For example, operating profit does not reflect items such as a component of the provision for (reversal of) credit losses (primarily equivalent to the formula allowance under U.S. GAAP), foreign exchange gains (losses) and investment securities gains (losses). For a reconciliation of operating profit under the internal management reporting system to income before income tax expense shown on the consolidated statements of income, see Note 29 to our consolidated financial statements. We do not use information on the segments’ total assets to allocate our resources and assess performance. Accordingly, business segment information on total assets is not presented. However, in order to ensure more efficient management of resources, and to strengthen controls on profits and losses in each business group, we allocate fixed assets of both MUFG Bank on a stand-alone basis and Mitsubishi UFJ Trust and Banking on a stand-alone basis to each business unit. Accordingly, such fixed assets allocated to business groups are presented below. Our chief operating decision maker predominantly uses operating profit (loss) for each segment in the annual budget and forecasting process. Such decision maker considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. Effective April 1, 2025, we made modifications to our internal management accounting rules and practices, including adjustments made to reflect changes in retail customer attributes, changes in the recording method applied to foreign exchange swaps in the Chinese market, changes in the intercompany settlement rates applied to transactions between the corporate centers and overseas branches, and reallocation of certain expenses related to restricted stock units in the United States among business groups. These modifications had the following impact on our previously reported business segment information for the fiscal years ended March 31, 2024 and 2025: •increasing the operating profits of the Retail & Digital Business Group and the Commercial Banking & Wealth Management Business Group by ¥1.7 billion and ¥0.5 billion, respectively, and reducing the operating loss of Other by ¥15.9 billion for the fiscal year ended March 31, 2024; •reducing the operating profits of the Global Markets Business Group, the Global Corporate & Investment Banking Business Group, the Japanese Corporate & Investment Banking Business Group and the Global Commercial Banking Business Group by ¥8.5 billion, ¥6.8 billion, ¥2.7 billion and ¥0.1 billion, respectively, for the fiscal year ended March 31, 2024; •increasing the operating profits of the Retail & Digital Business Group and the Commercial Banking & Wealth Management Business Group by ¥1.1 billion and ¥1.1 billion, respectively, and reducing the operating loss of Other by ¥21.6 billion, for the fiscal year ended March 31, 2025; and •reducing the operating profits of the Global Corporate & Investment Banking Business Group, the Japanese Corporate & Investment Banking Business Group and the Global Commercial Banking Business Group by ¥12.2 billion, ¥2.4 billion and ¥0.1 billion, respectively, and increasing the operating loss of the Global Markets Business Group by ¥9.1 billion, for the fiscal year ended March 31, 2025. Prior period business segment information has been recast to enable comparison between the relevant amounts for the fiscal years ended March 31, 2024, 2025 and 2026. For further information, see Note 29 to our consolidated financial statements. Starting from the fiscal year ended March 31, 2025, the fiscal year of Krungsri, which is included in the Global Commercial Banking Business Group, has been changed from the previous January to December period to an April to March period for consolidation purposes. Given the treatment of reporting lag changes under Japanese GAAP, there is no retrospective application of the change to the business segment information below. In connection with this change, the segment amounts prepared in accordance with Japanese GAAP for the fiscal year ended March 31, 2025, reflect Krungsri's amounts for the fifteen-month period from January 1, 2024 to March 31, 2025. 69 Table of Contents Customer Business Retail&DigitalBusinessGroup CommercialBanking &WealthManagementBusinessGroup Japanese Corporate & Investment Banking Business Group Global Commercial Banking Business Group Asset Management & Investor Services Business Group Global Corporate & Investment Banking Business Group Total Global Markets Business Group Other Total (in billions) Fiscal year ended March 31, 2024: Net revenue ¥ 842.6 ¥ 626.8 ¥ 974.7 ¥ 684.8 ¥ 432.3 ¥ 845.1 ¥ 4,406.3 ¥ 302.4 ¥ 41.5 ¥ 4,750.2 BK and TB(1): 319.4 420.3 795.3 29.1 118.6 763.1 2,445.8 12.2 108.0 2,566.0 Net interest income 248.1 199.5 488.7 29.3 14.7 398.7 1,379.0 85.5 152.4 1,616.9 Net fees 67.2 187.3 234.1 (0.1) 103.8 326.3 918.6 (13.3) (19.9) 885.4 Other 4.1 33.5 72.5 (0.1) 0.1 38.1 148.2 (60.0) (24.5) 63.7 Other than BK and TB 523.2 206.5 179.4 655.7 313.7 82.0 1,960.5 290.2 (66.5) 2,184.2 Operating expenses(2) 624.7 407.5 371.0 382.3 311.0 423.9 2,520.4 297.3 101.1 2,918.8 Operating profit (loss) ¥ 217.9 ¥ 219.3 ¥ 603.7 ¥ 302.5 ¥ 121.3 ¥ 421.2 ¥ 1,885.9 ¥ 5.1 ¥ (59.6) ¥ 1,831.4 Fixed assets(3) ¥ 243.8 ¥ 171.5 ¥ 169.3 ¥ 1.6 ¥ 21.3 ¥ 170.9 ¥ 778.4 ¥ 114.3 ¥ 502.3 ¥ 1,395.0 Increase in fixed assets(4) ¥ 49.8 ¥ 35.8 ¥ 46.1 ¥ 0.5 ¥ 11.5 ¥ 32.5 ¥ 176.2 ¥ 28.2 ¥ 29.3 ¥ 233.7 Depreciation(4) ¥ 23.3 ¥ 19.0 ¥ 42.5 ¥ 0.3 ¥ 9.1 ¥ 42.3 ¥ 136.5 ¥ 32.8 ¥ 12.3 ¥ 181.6 Fiscal year ended March 31, 2025: Net revenue ¥ 941.7 ¥ 727.2 ¥ 1,024.7 ¥ 969.3 ¥ 534.2 ¥ 910.1 ¥ 5,107.2 ¥ (339.5) ¥ 40.6 ¥ 4,808.3 BK and TB(1): 390.2 499.7 835.8 27.0 139.3 811.1 2,703.1 (622.3) 72.0 2,152.8 Net interest income 307.4 268.0 512.3 28.0 25.8 423.7 1,565.2 103.1 88.6 1,756.9 Net fees 78.8 195.0 253.7 (0.9) 113.5 353.4 993.5 (24.8) (14.7) 954.0 Other 4.0 36.7 69.8 (0.1) — 34.0 144.4 (700.6) (1.9) (558.1) Other than BK and TB 551.5 227.5 188.9 942.3 394.9 99.0 2,404.1 282.8 (31.4) 2,655.5 Operating expenses(2) 663.6 429.2 388.1 531.3 398.7 449.2 2,860.1 318.3 64.2 3,242.6 Operating profit (loss) ¥ 278.1 ¥ 298.0 ¥ 636.6 ¥ 438.0 ¥ 135.5 ¥ 460.9 ¥ 2,247.1 ¥ (657.8) ¥ (23.6) ¥ 1,565.7 Fixed assets(3) ¥ 267.5 ¥ 187.8 ¥ 171.7 ¥ 2.1 ¥ 23.1 ¥ 160.9 ¥ 813.1 ¥ 87.8 ¥ 482.3 ¥ 1,383.2 Increase in fixed assets(4) ¥ 50.3 ¥ 37.2 ¥ 45.0 ¥ 0.6 ¥ 7.7 ¥ 26.5 ¥ 167.3 ¥ 25.5 ¥ 39.6 ¥ 232.4 Depreciation(4) ¥ 33.0 ¥ 21.0 ¥ 42.2 ¥ 0.3 ¥ 7.6 ¥ 39.1 ¥ 143.2 ¥ 30.3 ¥ 13.0 ¥ 186.5 Fiscal year ended March 31, 2026: Net revenue ¥ 1,064.6 ¥ 866.9 ¥ 1,125.9 ¥ 904.2 ¥ 621.8 ¥ 1,081.5 ¥ 5,664.9 ¥ 306.9 ¥ 19.5 ¥ 5,991.3 BK and TB(1): 458.0 619.5 923.3 34.0 159.7 970.8 3,165.3 (18.7) (1.2) 3,145.4 Net interest income 365.4 366.2 539.9 35.8 38.7 477.3 1,823.3 56.7 33.9 1,913.9 Net fees 87.7 214.4 307.4 (1.7) 121.1 444.3 1,173.2 (15.3) (23.9) 1,134.0 Other 4.9 38.9 76.0 (0.1) (0.1) 49.2 168.8 (60.1) (11.2) 97.5 Other than BK and TB 606.6 247.4 202.6 870.2 462.1 110.7 2,499.6 325.6 20.7 2,845.9 Operating expenses(2) 778.7 458.9 418.9 516.6 469.3 501.2 3,143.6 342.4 139.9 3,625.9 Operating profit (loss) ¥ 285.9 ¥ 408.0 ¥ 707.0 ¥ 387.6 ¥ 152.5 ¥ 580.3 ¥ 2,521.3 ¥ (35.5) ¥ (120.4) ¥ 2,365.4 Fixed assets(3) ¥ 333.1 ¥ 199.9 ¥ 176.6 ¥ 2.4 ¥ 23.6 ¥ 163.5 ¥ 899.1 ¥ 95.4 ¥ 488.3 ¥ 1,482.8 Increase in fixed assets(4) ¥ 82.3 ¥ 44.8 ¥ 44.8 ¥ 0.9 ¥ 8.2 ¥ 28.5 ¥ 209.5 ¥ 34.2 ¥ 41.8 ¥ 285.5 Depreciation(4) ¥ 41.1 ¥ 24.2 ¥ 40.6 ¥ 0.3 ¥ 7.8 ¥ 36.1 ¥ 150.1 ¥ 23.3 ¥ 9.4 ¥ 182.8 Notes: (1)“BK and TB” is a sum of MUFG Bank on a stand-alone basis (BK) and Mitsubishi UFJ Trust and Banking on a stand-alone basis (TB). (2)Operating expenses primarily includes salaries and employee benefits, outsourcing expenses, and amortization of intangible assets. 70 Table of Contents (3)Fixed assets in the above table are based on the financial information prepared in accordance with Japanese GAAP as adjusted in accordance with internal management accounting rules and practices, and the amounts correspond to premises and equipment-net, intangible assets-net and goodwill of BK and TB. Fixed assets of MUFG and other consolidated subsidiaries and Japanese GAAP consolidation adjustments amounting to ¥1,505.4 billion as of March 31, 2024, ¥1,732.5 billion as of March 31, 2025 and ¥1,890.5 billion as of March 31, 2026, respectively, are not allocated to each business segment when determining the allocation of management resources and assessing performance and, therefore, such amounts are not included in the table above. (4)These amounts are related to the fixed assets of BK and TB included in the table above. Fiscal Year Ended March 31, 2026 Compared to Fiscal Year Ended March 31, 2025 Retail & Digital Business Group—Covers the businesses of Mitsubishi UFJ NICOS, other consumer finance companies, and MUFG Bank with individual customers (excluding wealth management customers) and corporate customers in Japan through the three channels under the concept of “Real (Face-to-Face) × Remote × Digital”. Its net revenue mainly consists of interest income from lending and deposit-taking operations and fees relating to credit card settlement and consumer financing products and services. Operating profit increased mainly due to higher net revenue from the loan and deposit business driven by increasing Japanese yen interest rates as well as increased fee income generated from higher balance of assets under management and higher volume of credit card and consumer finance transactions, although operating expenses increased primarily due to higher expenses associated with system development and customer promotion. Commercial Banking & Wealth Management Business Group—Covers small and medium sized enterprise clients and wealth management clients in Japan, offering an extensive array of commercial banking, trust banking and securities products and services. Its net revenue mainly consists of interest income from lending and deposit-taking operations and fees relating to domestic and foreign exchange settlement services and wealth management solutions, including asset management, asset and business succession transfer and real estate services. Operating profit increased mainly due to overall growth in net revenue from across various products and services, including higher net interest income from loans and deposits driven by increasing Japanese yen interest rates as well as higher solutions income from asset management services and M&A and other financing transactions in the rising equity market environment. Japanese Corporate & Investment Banking Business Group—Covers the large Japanese corporate businesses. This business group offers large Japanese corporations advanced financial solutions designed to respond to their diversified and globalized needs and to contribute to their business and financial strategies through the global network of our group companies. Its net revenue mainly consists of interest income from lending and deposit-taking operations and fees relating to financing, investment banking, real estate and stock transfer services for large Japanese corporate customers. Operating profit increased mainly due to higher interest income from lending and deposit-taking operations driven by rising Japanese yen interest rates as well as an increase in fee income generated from the solutions and M&A businesses. Global Commercial Banking Business Group—Covers the retail and commercial banking businesses of Krungsri and PT Bank Danamon Indonesia, Tbk. This business group offers a comprehensive array of financial products and services such as loans, deposits, fund transfers, investments and asset management services for local retail, small and medium-sized enterprise, and corporate customers across the Asia-Pacific region. Its revenue mainly consists of interest income from lending and deposit-taking operations and fees from remittances and transfers, consumer finance and wealth-related services for individual and small to medium-sized corporate customers of Krungsri and Bank Danamon. Operating profit decreased mainly due to the impact of Krungsri's operating profits for the extra three months being reflected in, and accounting for approximately 15% of, the business group's total operating profit for the fiscal year ended March 31, 2025 in accordance with applicable accounting treatment under Japanese GAAP, as described above. At Krungsri, income from lending decreased mainly due to the impact of higher level of household debt in Thailand, although this decrease was partially offset by an increase in non-interest income related to automobile loans and the impact of Krungsri's consolidation of Tidlor Holdings in August 2025. Bank Danamon's net operating profit increased primarily due to the impact of the merger of PT Mandala Multifinance Tbk, a subsidiary of MUFG Bank, into PT Adira Dinamika Multi Finance, Tbk, a subsidiary of Bank Danamon, in October 2025, along with higher loan balances and increased non-interest income, including market trading income. Asset Management & Investor Services Business Group—Covers the asset management and asset administration businesses of Mitsubishi UFJ Trust and Banking, MUFG Bank and First Sentier Group. By integrating the trust banking expertise of Mitsubishi UFJ Trust and Banking and the global strengths of MUFG Bank, the business group offers a full range of asset management and administration services for corporations and pension funds, including pension fund management and administration, advice on pension structures, and payments to beneficiaries, and also offers investment trusts for retail customers. Its net revenue mainly consists of fees from asset management and administration services for products, such as pension trusts and mutual funds. 71 Table of Contents Operating profit increased primarily due to the growth of assets under management of this business group as there has been growing customer interest in securities market investments, net inflows of ETFs in Japan, and expanded bundle services in the investor services business, although operating expenses increased primarily due to the impact of full-year consolidation of MUFG Pension & Market Services in the fiscal year ended March 31, 2026, higher expenses at overseas subsidiaries driven by the business expansion in the investor services business, and the impact of base salary increases and inflation. Global Corporate & Investment Banking Business Group—Covers the global corporate, investment and transaction banking businesses of MUFG Bank and Mitsubishi UFJ Securities Holdings. Through a global network of offices and branches, this business group provides large non-Japanese corporate and financial institution customers outside Japan with a comprehensive set of solutions that meet their increasingly diverse and sophisticated financing needs. Its net revenue mainly consists of interest income from lending and deposit-taking operations and fees and commissions from investment banking services and foreign exchange and derivatives transactions. Operating profit increased mainly due to higher net interest income, reflecting the positive impact of our balance sheet optimization strategy and growth in asset balances as well as increased fees and commissions income related to the project finance business. Global Markets Business Group—Covers the customer business and the treasury operations of MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Securities Holdings. The customer business includes sales and trading in fixed income instruments, currencies, equities and other investment products as well as origination and distribution of financial products. The treasury operations include asset and liability management as well as global investments for the MUFG Group. Operating loss for the fiscal year ended March 31, 2026 improved primarily due to the impact of the rebalancing of our bond portfolio implemented in the previous fiscal year with an aim to enhance the MUFG Group's future profitability. Net revenues from the sales and trading business, including foreign exchange flow transactions and fixed income operations, remained relatively stable for the fiscal year ended March 31, 2026, compared to the previous fiscal year. Other—Consists mainly of the corporate centers of MUFG, MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Morgan Stanley Securities. The elimination of duplicated amounts of net revenues among business segments is also reflected in Other. Fiscal Year Ended March 31, 2025 Compared to Fiscal Year Ended March 31, 2024 Retail & Digital Business Group Operating profit increased mainly due to higher net interest income driven by increasing Japanese yen interest rates as well as higher net revenue from the consumer finance business reflecting the increased retail lending volume, although operating expenses increased primarily due to higher expenses associated with system development and customer promotion. Commercial Banking & Wealth Management Business Group Operating profit increased mainly due to overall growth in net revenue from across various products and services, including higher net interest income driven by increasing Japanese yen interest rates, higher derivative income benefiting from heightened market volatility, and higher wealth management income generated by higher assets under management and greater customer interest in equity market investments. Japanese Corporate & Investment Banking Business Group Operating profit increased mainly due to higher interest income from lending and deposit-taking operations driven in part by rising Japanese yen interest rates as well as an increase in fee income generated from the solutions and M&A businesses. Global Commercial Banking Business Group Operating profit increased mainly due to the impact of Krungsri's operating profits for the extra three months being reflected in, and accounting for approximately 15% of, the business group's total operating profit for the fiscal year ended March 31, 2025 in accordance with applicable accounting treatment under Japanese GAAP, as described above, as well as the impact of Krungsri's acquisition of overseas companies, partially offset by an increase in credit costs. Bank Danamon's increased credit costs also negatively affected the business group's total operating profit, although the bank's interest income, credit-related fees and treasury income improved. Operating expenses increased primarily due to the impact of Krungsri's acquisition of overseas companies and the impact of Krungsri's operating expenses for the extra three months being reflected in the business group’s total operating expenses for the fiscal year ended March 31, 2025 in accordance with applicable accounting treatment under Japanese GAAP, as described above. 72 Table of Contents Asset Management & Investor Services Business Group Operating profit increased primarily due to the growth of the assets under management of business group as there has been growing customer interest in securities market investments, net inflows of ETFs in Japan, and expanded bundle services in the investor services business, although operating expenses increased primarily due to the acquisition of Link Administration Holdings by Mitsubishi UFJ Trust and Banking and an increase in personnel expenses overseas. Global Corporate & Investment Banking Business Group Operating profit increased mainly due to higher net interest income, reflecting the positive impact of our balance sheet optimization strategy, and increased deposit income in the APAC region as well as increased fees and commissions income across all regions. Global Markets Business Group Operating loss for the fiscal year ended March 31, 2025 mainly reflected the impact of the rebalancing of our bond portfolio designed and implemented to enhance the MUFG Group's future profitability, while net revenues from the sales and trading business, including foreign exchange flow transactions and fixed income operations, remained relatively stable for the fiscal year ended March 31, 2025, compared to the previous fiscal year. Geographic Segment Analysis Assets, income and expenses attributable to foreign operations are allocated to geographical areas based on the domicile of the debtors and customers. In general, we have allocated all direct expenses and a proportionate share of general and administrative expenses to income derived from foreign loans and other transactions by our foreign operations to the relevant foreign geographical areas. Certain charges, such as most impairment charges on goodwill, are recognized as domestic expenses. For further information, see Note 30 to our consolidated financial statements. 73 Table of Contents Fiscal years ended March 31, 2025 2026 % Change (in billions, except percentages) Total revenue (interest income and non-interest income): Domestic ¥ 2,905.9 ¥ 4,407.1 51.7 % Foreign: United States of America 3,180.0 3,283.2 3.2 Europe 1,321.4 956.6 (27.6) Asia/Oceania excluding Japan 2,173.5 2,078.7 (4.4) Other areas(1) 1,255.3 1,141.7 (9.0) Total foreign 7,930.2 7,460.2 (5.9) Total ¥ 10,836.1 ¥ 11,867.3 9.5 % Income (loss) before income tax expense (benefit): Domestic ¥ (109.8) ¥ 670.1 N/M Foreign: United States of America 1,037.9 1,283.6 23.7 Europe 307.2 (167.1) (154.4) Asia/Oceania excluding Japan 134.7 286.2 112.4 Other areas(1) 425.5 436.7 2.6 Total foreign 1,905.3 1,839.4 (3.5) Total ¥ 1,795.5 ¥ 2,509.5 39.8 % Net income (loss) attributable to Mitsubishi UFJ Financial Group: Domestic ¥ (343.7) ¥ 270.4 178.7 % Foreign: United States of America 903.2 1,196.6 32.5 Europe 219.4 (277.2) (226.3) Asia/Oceania excluding Japan 115.8 132.1 14.0 Other areas(1) 372.2 407.5 9.5 Total foreign 1,610.6 1,459.0 (9.4) Total ¥ 1,266.9 ¥ 1,729.4 36.5 % Note: (1)Other areas primarily include Canada, Latin America, the Caribbean and the Middle East. Domestic net income attributable to Mitsubishi UFJ Financial Group for the fiscal year ended March 31, 2026 was ¥270.4 billion compared to net loss of ¥343.7 billion for the fiscal year ended March 31, 2025. This improvement was primarily due to higher interest income in the rising interest environment in Japan as well as an increase in non-interest income due to valuation gains on marketable equity securities reflecting higher stock prices. Foreign net income attributable to Mitsubishi UFJ Financial Group for the fiscal year ended March 31, 2026 was ¥1,459.0 billion compared to net income of ¥1,610.6 billion for the fiscal year ended March 31, 2025. This decrease reflected larger foreign exchange account losses in Europe arising from derivative transactions. These losses were partially offset by increases in equity in earnings of equity method investees and net trading account profits particularly in the United States. In Asia/Oceania excluding Japan, while both revenue and expenses decreased, net income increased primarily due to higher net interest income on loans at Krungsri. Effect of Change in Exchange Rates on Foreign Currency Translation Fiscal Year Ended March 31, 2026 74 Table of Contents The average exchange rate for the fiscal year ended March 31, 2026 was ¥150.77 per US$1.00, compared to the prior fiscal year’s average exchange rate of ¥152.58 per US$1.00. The average exchange rate for the conversion of the US dollar financial statements of some of our foreign subsidiaries for the fiscal year ended December 31, 2025 was ¥149.71 per US$1.00, compared to the average exchange rate for the fiscal year ended December 31, 2024 of ¥151.58 per US$1.00. The change in the average exchange rate of the Japanese yen against the US dollar and other foreign currencies had the effect of decreasing total revenue by ¥4.9 billion, net interest income by ¥5.1 billion and income before income taxes by ¥13.0 billion, respectively, for the fiscal year ended March 31, 2026. Foreign currency translation adjustments of ¥683.0 billion were recognized in our consolidated statement of comprehensive income for the fiscal year ended March 31, 2026. The adjustments are mainly due to the depreciation of the Japanese yen against other major currencies adopted by our foreign subsidiaries and equity method investments as their respective functional currencies. The following table sets forth the functional currencies and the related foreign currency translation adjustments for the fiscal year ended March 31, 2026: Functional Currencies of foreign subsidiaries and equity method investments Fiscal year ended March 31, 2026 (in billions) United States Dollar ¥ 307.9 Thai Baht 176.6 Chinese Yuan 53.1 Eurocurrency 48.0 Great Britain Pound 38.7 Malaysian Ringgit 30.2 Other 28.5 Total ¥ 683.0 The foreign currency translation adjustments primarily resulted from the conversion of financial statements of our foreign subsidiaries and equity method investees that have a US dollar functional currency and a Thai Baht functional currency. The effects of conversion of these US dollar-based financial statements were ¥307.9 billion and were mainly attributable to those relating to Morgan Stanley, which were ¥185.5 billion. The effects of conversion of these Thai Baht-based financial statements were ¥176.6 billion and were mainly attributable to those relating to Krungsri, which were ¥177.4 billion. For Morgan Stanley and Krunsgri, the exchange rates for the conversion of their respective functional currency-based balance sheet items are those as of March 31. The Japanese yen depreciated from ¥149.52 per US$1.00 and ¥4.40 per Thai Baht as of March 31, 2025, to ¥159.88 per US$1.00 and ¥4.86 per Thai Baht as of March 31, 2026, respectively. Fiscal Year Ended March 31, 2025 The average exchange rate for the fiscal year ended March 31, 2025 was ¥152.58 per US$1.00, compared to the prior fiscal year’s average exchange rate of ¥144.62 per US$1.00. The average exchange rate for the conversion of the US dollar financial statements of some of our foreign subsidiaries for the fiscal year ended December 31, 2024 was ¥151.58 per US$1.00, compared to the average exchange rate for the fiscal year ended December 31, 2023 of ¥140.56 per US$1.00. The change in the average exchange rate of the Japanese yen against the US dollar and other foreign currencies had the effect of increasing total revenue by ¥472.5 billion, net interest income by ¥165.8 billion and income before income taxes by ¥110.3 billion, respectively, for the fiscal year ended March 31, 2025. Foreign currency translation adjustments of ¥365.6 billion were recognized in our consolidated statement of comprehensive income for the fiscal year ended March 31, 2025. The adjustments are mainly due to the depreciation of the Japanese yen against other major currencies adopted by our foreign subsidiaries and equity method investments as their respective functional currencies. The following table sets forth the functional currencies and the related foreign currency translation adjustments for the fiscal year ended March 31, 2025: 75 Table of Contents Functional Currencies of foreign subsidiaries and equity method investments Fiscal year ended March 31, 2025 (in billions) United States Dollar ¥ 224.1 Thai Baht 71.7 Indonesian Rupiah 39.6 Great Britain Pound 34.2 Malaysian Ringgit 7.9 Vietnamese Dong 7.2 Other (19.1) Total ¥ 365.6 The foreign currency translation adjustments primarily resulted from the conversion of financial statements of our foreign subsidiaries and equity method investees that have a US dollar functional currency and a Thai Baht functional currency. The effects of conversion of these US dollar-based financial statements were ¥224.1 billion and were mainly attributable to those relating to MUFG Americas Holdings, which were ¥205.6 billion. The effects of conversion of these Thai Baht-based financial statements were ¥71.7 billion and were mainly attributable to those relating to Krungsri, which were ¥70.6 billion. For MUFG Americas Holdings, the exchange rate for the conversion of its US dollar-based balance sheet items is the rate as of December 31. The fiscal year end of MUFG Americas Holdings is December 31 and has been treated as coterminous with MUFG’s fiscal year end with a three-month lag period. For Krungsri, the exchange rate for the conversion of its Thai Baht-based balance sheet items is the rate as of March 31. The Japanese yen appreciated from ¥141.83 per US$1.00 as of December 31, 2023, and ¥4.16 per Thai Baht as of March 31, 2024, to ¥158.18 per US$1.00 as of December 31, 2024, and ¥4.40 per Thai Baht as of March 31, 2025, respectively. B.Liquidity and Capital Resources Financial Condition Our total assets and total liabilities as of March 31, 2026 were ¥425,581.7 billion and ¥404,741.6 billion, respectively, compared to ¥405,940.2 billion and ¥386,690.5 billion, respectively, as of March 31, 2025. For information on our off-balance sheet arrangements, see Note 24 to our consolidated financial statements, and for information on our contractual obligations, see Notes 10 and 12 to our consolidated financial statements. Total Assets Our total assets as of March 31, 2026 were ¥425,581.7 billion, an increase of ¥19,641.5 billion from ¥405,940.2 billion as of March 31, 2025. Domestic assets decreased ¥6,800.2 billion mainly due to a decrease in interest earning deposits held in other banks by our subsidiary bank in Japan. The increase in total foreign assets was ¥26,441.7 billion. This increase was mainly due to a ¥13,676.9 billion increase in the United States, a ¥4,733.8 billion increase in Europe and a ¥4,374.1 billion increase in Asia/Oceania excluding Japan. The increase in the United States primarily reflected an increase in interest earning deposits held in other banks, and the increases in Europe and in Asia/Oceania excluding Japan primarily reflected an increase in loans. As of March 31, 2025 2026 % Change (in billions, except percentages) Japan ¥ 261,732.5 ¥ 254,932.3 (2.6) % Foreign(1): United States 66,393.1 80,070.0 20.6 Europe 23,652.8 28,386.6 20.0 Asia/Oceania excluding Japan 38,556.3 42,930.4 11.3 Other areas(2) 15,605.5 19,262.4 23.4 Total foreign 144,207.7 170,649.4 18.3 Total ¥ 405,940.2 ¥ 425,581.7 4.8 % 76 Table of Contents Notes: (1)Foreign assets are denominated primarily in the U.S. dollar. Geographic regions are based principally on the domicile of the obligors. (2)Other areas primarily include Canada, Latin America, the Caribbean and the Middle East. Loan Portfolio The following table sets forth our loans outstanding, before deduction of allowance for credit losses, by class. We classify our loan portfolio into the following portfolio segments—Commercial, Residential, Card, Krungsri, and Other based on the grouping to determine the allowance for credit losses. We further classify the Commercial segment into Domestic and Foreign classes based on initial measurement attributes, risk characteristics, and method of monitoring and assessing credit risk. The Domestic Commercial segment includes commercial loans to borrowers in Japan, and the Foreign Commercial segment includes commercial loans other than those included in the Domestic Commercial, Krungsri and Other segments. The Residential segment includes housing loans to borrowers in Japan, and the Card segment includes consumer loans to borrowers in Japan. The Krungsri segment includes loans held by Krungsri and its subsidiaries. The Other segment mainly consists of Bank Danamon. We have made changes to our credit rating system, which did not have a material impact on our consolidated financial statements. For details, see Note 1 to our consolidated financial statements. As of March 31, 2025 2026 % Change (in billions, except percentages) Commercial Domestic ¥ 61,669.4 ¥ 64,192.3 4.1 % Foreign 46,247.8 55,672.4 20.4 Residential 12,561.8 12,842.5 2.2 Card 498.7 557.5 11.8 Krungsri 8,846.9 9,844.8 11.3 Other 2,056.7 2,216.0 7.7 Total(1) 131,881.3 145,325.5 10.2 Unearned income, unamortized premium—net and deferred loan fees—net (442.8) (506.3) (14.3) Total(1) ¥ 131,438.5 ¥ 144,819.2 10.2 % Note: (1)The above table includes loans held for sale of ¥887.3 billion and ¥1,253.6 billion as of March 31, 2025 and 2026, respectively, which are carried at the lower of cost or fair value. 77 Table of Contents As of March 31, 2026, our total loan balance increased 10.2% compared to March 31 2025, and our total loans accounted for 34.0% of total assets as of March 31, 2026, compared to 32.4% as of March 31, 2025. The increase was primarily driven by growth in the foreign commercial segment, mainly reflecting higher loan balances in the United States, as well as an increase in the Krungsri segment, mainly reflecting the impact of TIDLOR Holdings becoming a consolidated subsidiary in August 2025. Credit quality indicator As of March 31, 2025 2026 % Change (in billions, except percentages)(1) Commercial ¥ 107,029.9 ¥ 118,631.0 10.8 % Domestic 61,538.5 64,030.9 4.1 Normal 60,011.9 62,841.9 4.7 Close Watch 1,300.9 1,028.2 (21.0) Likely to become Bankrupt or Legally/Virtually Bankrupt 225.7 160.8 (28.8) Foreign 45,491.4 54,600.1 20.0 Normal 44,447.9 53,524.2 20.4 Close Watch 827.7 789.4 (4.6) Likely to become Bankrupt or Legally/Virtually Bankrupt 215.8 286.5 32.8 Residential ¥ 12,561.8 ¥ 12,842.5 2.2 % Accrual 12,526.3 12,811.2 2.3 Nonaccrual 35.5 31.3 (11.8) Card ¥ 498.7 ¥ 557.5 11.8 % Accrual 421.2 519.3 23.3 Nonaccrual 77.5 38.2 (50.8) Krungsri ¥ 8,846.9 ¥ 9,824.8 11.1 % Performing 7,675.9 8,531.3 11.1 Under-Performing 843.4 962.5 14.1 Non-Performing 327.6 331.0 1.0 Other ¥ 2,056.7 ¥ 2,216.0 7.7 % Accrual 2,024.2 2,185.0 7.9 Nonaccrual 32.5 31.0 (4.6) Note: (1)Total loans in the above table do not include loans held for sale, and represent balances without adjustments in relation to unearned income, unamortized premiums and deferred loan fees. We classify loans into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, historical and current financial information, historical and current payment experience, credit documentation, public and non-public information about borrowers and current economic trends as deemed appropriate to each segment. The primary credit quality indicator for loans within all classes of the Commercial segment is the internal credit rating assigned to each borrower based on our internal borrower ratings of 1 through 15 with the rating of 1 assigned to a borrower with the highest quality of credit. When assigning a credit rating to a borrower, we evaluate the borrower’s expected debt-service capability based on various information, including financial and operating information of the borrower as well as information on the industry in which the borrower operates, and the borrower’s business profile, management and compliance system. In evaluating a borrower’s debt-service capability, we also conduct an assessment of the level of earnings and an analysis of the borrower’s net worth. Based on the internal borrower rating, loans within the Commercial segment are categorized as Normal (internal borrower ratings of 1 through 9), Close Watch (internal borrower ratings of 10 through 12), and Likely to become Bankrupt or Legally/Virtually Bankrupt (internal borrower ratings of 13 through 15). Loans to borrowers categorized as Normal represent those that are not deemed to have collectability issues. Loans to borrowers categorized as Close Watch represent those that require close monitoring as the borrower has begun to exhibit elements of potential 78 Table of Contents concern with respect to its business performance and financial condition, the borrower has begun to exhibit elements of serious concern with respect to its business performance and financial condition, including business problems requiring long-term solutions, or the borrower’s loans are contractually past due 90 days or more for special reasons. Loans to borrowers categorized as Likely to become Bankrupt or Legally/Virtually Bankrupt represent those that have a higher probability of default than those categorized as Close Watch due to serious debt repayment problems with poor progress in achieving restructuring plans, the borrower being considered virtually bankrupt with no prospects for an improvement in business operations, or the borrower being legally bankrupt with no prospects for continued business operations because of non-payment, suspension of business, voluntary liquidation or filing for legal liquidation. For more information on our credit and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Credit Risk Management.” The accrual status is a primary credit quality indicator for loans within the Residential segment, the Card segment and the Other segment. The accrual status of these loans is determined based on the number of delinquent payments. Loans within the Krungsri segment are categorized as Performing, Under-Performing or Non-Performing based on their delinquency status. Loans categorized as Under-Performing generally represent those that have significant increases in credit risk since origination, including, among other things, loans that are 30 days or more past due. Loans categorized as Non-Performing generally represent those that are 90 days or more past due. For the Commercial, Residential, Card and Krungsri segments, credit quality indicators are based on information as of March 31. For the Other segment, credit quality indicators are generally based on information as of December 31. 79 Table of Contents Allowance for credit losses Fiscal year ended March 31, 2025: Commercial Residential Card Krungsri Other Total (in billions) Allowance for credit losses: Balance at beginning of fiscal year ¥ 745.5 ¥ 57.0 ¥ 36.4 ¥ 405.2 ¥ 112.9 ¥ 1,357.0 Provision for(reversal of) credit losses (93.1) (6.7) 25.6 156.6 39.4 121.8 Charge-offs 55.9 0.6 22.0 199.6 59.0 337.1 Recoveries collected 13.2 0.0 0.9 40.3 16.4 70.8 Net charge-offs 42.7 0.6 21.1 159.3 42.6 266.3 Other(1) 1.9 — — 21.4 7.3 30.6 Balance at end of fiscal year ¥ 611.6 ¥ 49.7 ¥ 40.9 ¥ 423.9 ¥ 117.0 ¥ 1,243.1 Fiscal year ended March 31, 2026: Commercial Residential Card Krungsri Other Total (in billions) Allowance for credit losses: Balance at beginning of fiscal year ¥ 611.6 ¥ 49.7 ¥ 40.9 ¥ 423.9 ¥ 117.0 ¥ 1,243.1 Provision for (reversal of) credit losses 24.7 (15.8) 30.0 150.2 37.1 226.2 Charge-offs 84.2 1.1 25.5 198.7 51.6 361.1 Recoveries collected 7.3 — 0.6 44.1 12.5 64.5 Net charge-offs 76.9 1.1 24.9 154.6 39.1 296.6 Other(1)(2) 8.2 — — 57.7 (4.3) 61.6 Balance at end of fiscal year ¥ 567.6 ¥ 32.8 ¥ 46.0 ¥ 477.2 ¥ 110.7 ¥ 1,234.3 Notes: (1)Other is principally comprised of gains or losses from foreign exchange translation. (2)For the fiscal year ended March 31, 2026, the Krungsri segment includes the initial allowance for credit losses for the loans purchased with credit deterioration of ¥14.1 billion. We recorded ¥226.2 billion of provision for credit losses for the fiscal year ended March 31, 2026, compared to ¥121.8 billion of provision for credit losses for the previous fiscal year. Our total allowance for credit losses as of March 31, 2026 was ¥1,234.3 billion, a decrease of ¥8.8 billion from ¥1,243.1 billion as of March 31, 2025. The total allowance for credit losses represented 0.85% of the total loan balance as of March 31, 2026, compared to 0.95% as of March 31, 2025. Provision for credit losses for the fiscal year ended March 31, 2026 increased ¥104.4 billion compared to the previous fiscal year primarily due to the provision for credit losses related to a large borrower in the foreign manufacturing sector. Meanwhile, provision for credit losses for the Krungsri segment decreased, mainly reflecting the positive impact of measures implemented by Krungsri and its subsidiaries to improve loan collection and the asset quality of their automobile loan portfolios. Significant trends in our portfolio segments are discussed below. Commercial segment—We recorded ¥24.7 billion of provision for credit losses for the fiscal year ended March 31, 2026, compared to ¥93.1 billion of reversal of credit losses for the previous fiscal year. The provision for credit losses for the fiscal year ended March 31, 2026 was primarily related to a large borrower in the foreign manufacturing sector. The ratio of loans classified as Close Watch to total loans in the segment decreased to 1.53% as of March 31, 2026 from 1.99% as of March 31, 2025. The ratio of loans classified as Likely to become Bankrupt or Legally/Virtually Bankrupt to total loans in the segment decreased to 0.38% as of March 31, 2026 from 0.41% as of March 31, 2025. The ratio of allowance for credit losses to the total loan balance in this segment decreased to 0.48% as of March 31, 2026 from 0.57% as of March 31, 2025. Krungsri segment—We recorded ¥150.2 billion of provision for credit losses for the fiscal year ended March 31, 2026, compared to ¥156.6 billion of provision for credit losses for the previous fiscal year, mainly reflecting the positive impact of measures implemented by Krungsri and its subsidiaries to improve loan collection and the asset quality of their automobile loan portfolios. The ratio of loans classified as Under-Performing or below to total loans in the segment decreased to 13.17% as of March 31, 2026 from 80 Table of Contents 13.24% as of March 31, 2025. The ratio of allowance for credit losses to the total loan balance in this segment increased to 4.86% as of March 31, 2026 from 4.79% as of March 31, 2025. The recent acquisitions of consumer finance companies in South East Asia by Krungsri may affect the ratio of allowance for credit losses to the total loan balance in the Krungsri segment as consumer finance companies generally experience higher credit losses compared to commercial banks. When there is an improvement in asset quality, reversal of credit losses is recorded in our consolidated statements of operations to maintain the allowance for credit losses at a level management deems appropriate. Although we reversed allowance for credit losses for certain loan portfolio segments in recent periods, we have historically provided for credit losses, and in future periods we may need to recognize a provision for credit losses. See “Item 3.D. Key Information—Risk Factors—Credit Risk—We may suffer additional credit-related losses in the future if our borrowers are unable to repay their loans as expected or if the measures we take in reaction to, or in anticipation of, our borrowers’ deteriorating repayment abilities prove inappropriate or insufficient.” Allowance policy We apply the current expected credit loss model that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information under Accounting Standards Codification 326 Financial Instruments—Credit Losses, to estimate credit losses. We maintain an allowance for credit losses to absorb expected losses on the loan portfolio. We have divided our allowance for credit losses into five portfolio segments—Commercial, Residential, Card, Krungsri and Other. For all portfolio segments, key elements relating to the policies and discipline used in determining the allowance for credit losses are our credit classification and related borrower categorization process, which are closely linked to the risk grading standards set by the Japanese regulatory authorities for asset evaluation and assessment, and are used as a basis for establishing the allowance for credit losses and charge-offs. The categorization is based on conditions that may affect the ability of borrowers to service their debt, such as current financial condition, results of operations and cash flows, historical payment experience, credit documentation, other public information and current trends. For more information on our credit and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Credit Risk Management.” For the Commercial and Krungsri segments, our allowance for credit losses represents an estimate of the credit losses that are expected over the life of the financial instrument or exposure and is recognized by incorporating relevant available information relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses primarily consists of (1) an allowance for loans measured on a collective basis, when similar risk characteristics exist, and (2) an allowance for loans measured on an individual basis, for loans that do not share similar risk characteristics. Expected losses are calculated using quantitative models that incorporate historical loss information and economic forecast scenarios and qualitative adjustments are also implemented to account for the risks that are not adequately captured in the quantitative model or economic forecasting assumptions. For the Residential and Card segments, the loans are smaller-balance homogeneous loans that are pooled by the risk ratings based on the number of delinquencies. For more information on our methodologies used to estimate the allowance for each portfolio segment, see “Summary of Significant Accounting Policies” in Note 1 to our consolidated financial statements and “—E. Critical Accounting Estimates—Allowance for Credit Losses” below. Allowance for off-balance sheet credit instruments We maintain an allowance for credit losses on off-balance sheet credit instruments, including commitments to extend credit, guarantees, standby letters of credit and other financial instruments. The allowance is included in other liabilities. We have adopted for such instruments the same methodology as that which is used in determining the allowance for credit losses on loans. The allowance for credit losses on off-balance sheet credit instruments was ¥160.8 billion as of March 31, 2026, a decrease of ¥17.3 billion from ¥178.1 billion as of March 31, 2025. Nonaccrual loans We consider a loan to be a nonaccrual loan when substantial doubt exists as to the full and timely payment of interest on, or repayment of, the principal of the loan, which is a borrower condition that generally corresponds to borrowers in categories 13 and below in our internal rating system (which corresponds to “Likely to become Bankrupt,” “Virtually Bankrupt” and “Bankrupt or de 81 Table of Contents facto Bankrupt” status under Japanese banking regulations). Loans are also placed in nonaccrual status when principal or interest is contractually past due one month or more with respect to loans within the Commercial segment, three months or more with respect to loans within the Card and Krungsri segments, and six months or more with respect to loans within the Residential segment. For more information on our credit and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Credit Risk Management.” As of March 31, 2025 2026 % Change (in billions, except percentages) Commercial ¥ 503.2 ¥ 486.5 (3.3) % Domestic 279.5 198.8 (28.9) Foreign 223.7 287.7 28.6 Residential 35.9 31.6 (11.9) Card 77.5 38.2 (50.8) Krungsri 327.6 331.0 1.0 Other 32.5 30.9 (4.6) Total(1) ¥ 976.7 ¥ 918.2 (6.0) % Note: (1)The above table does not include loans held for sale of ¥20.3 billion and ¥26.4 billion as of March 31, 2025 and 2026, respectively. Total nonaccrual loans decreased ¥58.5 billion between March 31, 2025 and March 31, 2026, primarily due to decreases in the balance of nonaccrual loans in the Domestic Commercial and Card segments, partially offset by an increase in the Foreign Commercial segment. The decrease in nonaccrual loans in the Domestic Commercial segment was mainly related to the loans to large borrowers in the domestic manufacturing and communication sectors, and was also due to a decrease in the Card segment primarily reflecting the impact of the streamlining of loan assessment standards at Mitsubishi UFJ NICOS following the integration of credit card brands. The increase in the Foreign Commercial Segment primarily reflected the deterioration in the borrower condition of a large borrower in the foreign manufacturing sector. Investment Portfolio Our total investment securities decreased 7.7% to ¥53,819.5 billion as of March 31, 2026, compared to March 31, 2025. Our investment securities primarily consist of Japanese government bonds and marketable equity securities. Japanese government bonds are classified as available-for-sale debt securities or held-to-maturity debt securities. Our investment in Japanese government bonds is a part of our asset and liability management policy with respect to investing the amount of Japanese yen-denominated funds exceeding our net loans. The percentage of our holding of available-for-sale Japanese government bonds to the total investment securities was 25.9% as of March 31, 2026, compared to 37.9% as of March 31, 2025. The balance of such bonds decreased as we sold a portion of our available-for-sale Japanese government bonds in our investment securities portfolio with unrealized losses. We also sold a portion of our Japanese prefectural and municipal bond portfolio with unrealized losses. Our holding of Japanese government bonds that are classified as held-to-maturity debt securities increased between March 31, 2025 and March 31, 2026, accounting for 30.8% of our total investment securities as of March 31, 2026, compared to 24.6% as of March 31, 2025. Historically, we have held equity securities of some of our customers primarily for strategic purposes, in particular to maintain long-term relationships with these customers. We continue to focus on reducing our investment in equity securities for such purposes in order to reduce the price fluctuation risk in our equity portfolio from a risk management perspective and to respond to applicable regulatory requirements as well as increasing market expectations for us to reduce our equity portfolio. As of March 31, 2025 and 2026, the aggregate book value of our marketable equity securities under Japanese GAAP satisfied the requirements of the legislation prohibiting banks from holding equity securities in excess of their Tier 1 capital. In November 2024, we announced that we increased our target to reduce the balance of equity securities held for strategic purposes valued on an acquisition cost basis under Japanese GAAP to ¥700.0 billion within the three years ending March 31, 2027. During the period through March 31, 2026, we sold down an aggregate of approximately ¥442.0 billion of equity securities held in our strategic equity investment portfolio on the same acquisition cost basis. Various factors, including changes in market conditions, may affect the amount of equity securities we should sell and our ability to achieve the target as planned. For more information, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Risk Management of Strategic Equity Portfolio." 82 Table of Contents Debt Securities As of March 31, 2025 2026 % Change Amortized cost Fair value Net unrealized gains (losses) Amortized cost Fair value Net unrealized gains (losses) Amortizedcost Fairvalue Netunrealizedgains(losses) (in billions, except percentages) Available-for-sale debt securities: Japanese national government and Japanese government agency bonds ¥ 22,314.1 ¥ 22,083.9 ¥ (230.2) ¥ 14,180.0 ¥ 13,916.5 ¥ (263.5) (36.5) % (37.0) % (14.4) % Japanese prefectural and municipal bonds 319.8 310.0 (9.8) 177.0 166.5 (10.5) (44.6) (46.3) (8.3) Foreign government and official institution bonds 4,149.4 4,078.5 (70.9) 4,646.1 4,599.2 (46.9) 12.0 12.8 33.9 Corporate bonds 905.2 903.9 (1.3) 989.5 981.3 (8.2) 9.3 8.6 N/M Mortgage-backed securities 1,121.8 1,122.0 0.2 1,015.9 1,017.0 1.1 (9.4) (9.4) 192.5 Asset-backed securities 1,405.9 1,412.2 6.3 1,591.0 1,600.3 9.3 13.2 13.3 48.3 Other debt securities 502.4 502.6 0.2 352.0 353.5 1.5 (29.9) (29.7) N/M Total available-for-sale debt securities ¥ 30,718.6 ¥ 30,413.1 ¥ (305.5) ¥ 22,951.5 ¥ 22,634.3 ¥ (317.2) (25.3) % (25.6) % (3.8) % Held-to-maturity debt securities Japanese national government and Japanese government agency bonds ¥ 14,354.4 ¥ 13,959.2 ¥ (395.2) ¥ 16,590.0 ¥ 15,740.9 ¥ (849.1) 15.6 % 12.8 % (114.9)% Japanese prefectural and municipal bonds 2,545.6 2,452.5 (93.1) 2,847.3 2,682.1 (165.2) 11.9 9.4 (77.4) Corporate bonds 214.9 211.3 (3.6) 243.8 237.7 (6.1) 13.4 12.5 (68.3) Mortgage-backed securities 4,690.3 4,553.0 (137.3) 4,488.2 4,388.5 (99.7) (4.3) (3.6) 27.4 Asset-backed securities 1,466.9 1,470.9 4.0 1,843.3 1,844.0 0.7 25.7 25.4 (81.6) Total held-to-maturity debt securities ¥ 23,272.2 ¥ 22,647.0 ¥ (625.2) ¥ 26,012.6 ¥ 24,893.2 ¥ (1,119.4) 11.8 % 9.9 % (79.0) % Net unrealized losses on available-for-sale debt securities increased 3.8% for the fiscal year ended March 31, 2026, compared to the previous fiscal year primarily due to increases in net unrealized losses on Japanese national government and Japanese government agency bonds. Net unrealized losses on Japanese national government and Japanese government agency bonds increased because their fair value declined as a result of rising interest rates in Japan. Net unrealized losses on available-for-sale foreign government and official institution bonds improved primarily as a result of an increase in their fair value due to the declines in interest rates overseas. The amortized cost of available-for-sale debt securities decreased 25.3%, reflecting decreases in our holdings of Japanese national government and Japanese government agency bonds and Japanese prefectural and municipal bonds. The amortized cost of Japanese national government and Japanese government agency bonds decreased 36.5% and the amortized cost of Japanese prefectural and municipal bonds decreased 44.6% mainly as a result of the sale of these bonds as an asset and liability management measure in the rising interest rate environment in Japan. The amortized cost of held-to-maturity debt securities increased 11.8% between March 31, 2025 and 2026 mainly due to the purchase of held-to-maturity debt securities, primarily long-term bonds, as an asset and liability management measure in the rising interest rate environment in Japan. The increase in net unrealized losses on Japanese national government and Japanese government agency bonds reflected the decline in the fair value of previously purchased bonds with lower coupons as a result of rising interest rates in Japan. Equity Securities 83 Table of Contents As of March 31, 2025 2026 % Change (in billions, except percentages) Equity securities: Marketable equity securities ¥ 3,832.0 ¥ 4,250.0 10.9 % Nonmarketable equity securities(1) 801.2 922.6 15.2 Total ¥ 4,633.2 ¥ 5,172.6 11.6 % Note: (1)These securities are equity securities, including unlisted common stocks and preferred shares, issued by both listed companies and unlisted companies, and carried at cost, except for those held by certain subsidiaries subject to specialized industry accounting principles for investment companies and brokers and dealers, and measured at fair value, which are ¥100.8 billion and ¥143.5 billion at March 31, 2025 and March 31, 2026, respectively. Equity securities increased 11.6% mainly because the fair value of marketable equity securities increased due to the rise in Japanese stock prices at the end of March 2026 compared to the end of March 2025, partially offset by sales of such securities during the fiscal year ended March 31, 2026. Marketable equity securities largely consist of listed equity securities in Japan. Cash and Due from Banks, and Interest-earning Deposits in Other Banks Cash and due from banks decreased ¥224.4 billion to ¥4,366.8 billion as of March 31, 2026 from ¥4,591.2 billion as of March 31, 2025. This decrease was primarily due to a decrease in cash on hand amid rising market interest rates. Interest-earning deposits in other banks decreased ¥18,703.8 billion to ¥86,003.1 billion as of March 31, 2026 from ¥104,706.9 billion as of March 31, 2025. This decrease was mainly because of a decrease in domestic interest-earning deposits. Receivables under Resale Agreements Receivables under resale agreements decreased ¥1,896.7 billion to ¥16,885.0 billion as of March 31, 2026 from ¥18,781.7 billion as of March 31, 2025. This decrease was mainly because of a decrease in short-term funding transactions as part of our asset and liability management. Receivables under Securities Borrowing Transactions Receivables under securities borrowing transactions decreased ¥207.5 billion to ¥5,493.1 billion as of March 31, 2026 from ¥5,700.6 billion as of March 31, 2025. This decrease was mainly due to decreases in collateral deposited for funding in our securities subsidiaries. Trading Account Assets Trading account assets increased ¥24,504.8 billion to ¥83,921.9 billion as of March 31, 2026 from ¥59,417.1 billion as of March 31, 2025. Trading account assets mainly consist of trading account securities and trading derivative assets. Trading account securities increased ¥6,320.5 billion to ¥44,975.3 billion as of March 31, 2026 from ¥38,654.8 billion as of March 31, 2025 mainly due to an increase in our trading securities portfolio denominated in foreign currencies. Trading derivative assets increased ¥18,183.7 billion to ¥38,917.6 billion as of March 31, 2026 from ¥20,733.9 billion as of March 31, 2025 mainly due to an increase in interest rate derivative assets. Total Liabilities As of March 31, 2026, total liabilities were ¥404,741.6 billion, an increase of ¥18,051.1 billion from ¥386,690.5 billion as of March 31, 2025. This was primarily due to a ¥19,601.8 billion increase in trading account liabilities, a ¥11,340.3 billion increase in total deposits and a ¥3,475.0 billion increase in other liabilities, partially offset by a ¥13,763.3 billion decrease in due to trust account and other short-term borrowings. Deposits 84 Table of Contents Deposits are our primary source of funds. The total balance of deposits increased ¥11,340.3 billion to ¥260,755.3 billion as of March 31, 2026 from ¥249,415.0 billion as of March 31, 2025. The increase was mainly attributable to increases in domestic and overseas interest-bearing deposits. The total average balance of interest-bearing deposits increased ¥5,290.7 billion to ¥216,892.7 billion for the fiscal year ended March 31, 2026 from ¥211,602.0 billion for the fiscal year ended March 31, 2025. The increase was mainly due to increases in domestic and overseas interest-bearing deposits. Payables under Repurchase Agreements Payables under repurchase agreements decreased ¥4,147.7 billion to ¥39,516.1 billion as of March 31, 2026 from ¥43,663.8 billion as of March 31, 2025. This decrease was mainly because of a decrease in our short-term funding needs. Other Short-Term Borrowings Other short-term borrowings decreased ¥11,777.0 billion to ¥12,859.9 billion as of March 31, 2026 from ¥24,636.9 billion as of March 31, 2025. This decrease was mainly due to a decrease in borrowings from the Bank of Japan. Trading Account Liabilities Trading account liabilities increased ¥19,601.8 billion to ¥41,104.7 billion as of March 31, 2026 from ¥21,502.9 billion as of March 31, 2025. This increase was mainly due to an increase in interest rate derivative liabilities in our commercial banking subsidiaries. Long-term Debt Long-term debt increased ¥861.9 billion to ¥21,884.3 billion as of March 31, 2026 from ¥21,022.4 billion as of March 31, 2025. This increase was mainly due to an increase in the outstanding bonds issued by MUFG. The average balance of long-term debt for the fiscal year ended March 31, 2026 was ¥20,559.1 billion, a decrease of ¥8,438.5 billion from ¥28,997.6 billion for the previous fiscal year. Other Liabilities Other liabilities increased by ¥3,475.0 billion to ¥19,887.8 billion as of March 31, 2026 from ¥16,412.8 billion as of March 31, 2025. This increase was primarily attributable to an increase in obligations to return securities received as collateral and an increase in accrued and other liabilities. Sources of Funding and Liquidity Our primary source of liquidity is from a large balance of deposits, mainly ordinary deposits, certificates of deposit and time deposits. Time deposits have historically shown a high rollover rate among our corporate customers and individual depositors. The average deposit balance increased to ¥251,739.0 billion for the fiscal year ended March 31, 2026 from ¥249,398.9 billion for the fiscal year ended March 31, 2025. These deposits provide us with a sizable source of stable and low-cost funds. Our average deposits combined with our average total equity of ¥20,289.3 billion, funded 62.5% of our average total assets of ¥435,345.7 billion during the fiscal year ended March 31, 2026. Our deposits exceeded our loans before allowance for credit losses by ¥115,936.1 billion as of March 31, 2026 compared to ¥117,976.5 billion as of March 31, 2025. As part of our asset and liability management policy, a significant portion of the amount of Japanese yen-denominated funds exceeding our loans has been deposited with the Bank of Japan or invested in Japanese government bonds in recent periods. The remaining funding was primarily provided by short-term borrowings and long-term senior and subordinated debt. Short-term borrowings consist of call money, funds purchased, payables under repurchase agreements, payables under securities lending transactions, due to trust account, and other short-term borrowings. From time to time, we have issued long-term instruments, including various fixed and floating interest rate senior and subordinated bonds with and without maturities. The average balance of short-term borrowings for the fiscal year ended March 31, 2026 was ¥63,985.3 billion. The average balance of long-term debt for the fiscal year ended March 31, 2026 was ¥20,559.1 billion. Liquidity may also be provided by the sale of financial assets, including available-for-sale debt securities, marketable equity securities, trading account securities and loans. Additional liquidity may be provided by the maturity of loans. 85 Table of Contents Our liquidity may be impaired by factors such as an inability to raise funding in financial markets, an increase in our funding costs, unexpected increases in cash or collateral requirements, an inability to sell assets or enter into or settle other transactions as planned or needed, and an inability to attract or retain deposits. See “Item 3.D. Key Information—Risk Factors—Funding Liquidity Risk—Deterioration in market liquidity or other external circumstances or an actual or perceived decline in our creditworthiness could negatively affect our ability to access and maintain liquidity.” We manage our group-wide liquidity on a consolidated basis based on the tests and analyses conducted at the subsidiary level. Our major banking subsidiaries, MUFG Bank and Mitsubishi UFJ Trust and Banking, set liquidity and funding limits designed to maintain their respective requirements for funding from market sources below pre-determined levels for certain periods (e.g., one-day, two-week and one-month). They also monitor the balance of buffer assets they respectively hold, including Japanese government bonds and U.S. Treasury bonds, which can be used for cash funding even in periods of stress. In addition, they regularly perform liquidity stress testing designed to evaluate the impact of systemic market stress conditions and institution-specific stress events, including credit rating downgrades, on their liquidity positions. We collect and evaluate the results of the stress tests individually performed by our major subsidiaries to ensure our ability to meet our liquidity requirements on a consolidated basis in stress scenarios. We manage our funding sources by setting limits on, or targets for, our holdings of buffer assets, primarily Japanese government bonds. We also regard deposits with the Bank of Japan as buffer assets. In addition, our commercial banking subsidiaries manage their funding sources through liquidity-supplying products such as commitment lines and through a liquidity gap, or the excess of cash inflows over cash outflows. For information on our commitments, guarantees and other off-balance sheet credit instruments, please see Note 24 to our consolidated financial statements. Liquidity Requirements for Banking Institutions in Japan We are required to calculate and disclose our LCR calculated in accordance with the methodology prescribed in the FSA guidance that has been adopted to implement the relevant Basel III standard. Starting in calendar year 2019, we are required to maintain a minimum LCR of 100%. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Liquidity Coverage Ratio” and “—Capital Adequacy—Liquidity Coverage Ratios of MUFG and Major Banking Subsidiaries in Japan” below. Stable Funding Requirements for Banking Institutions in Japan We are required to calculate and disclose our NSFR calculated in accordance with the methodology prescribed in the FSA guidance that has been adopted to implement the relevant Basel III standard. Starting in September 2021, we are required to maintain a minimum NSFR of 100%. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Net Stable Funding Ratio” and “—Capital Adequacy—Net Stable Funding Ratios of MUFG and Major Banking Subsidiaries in Japan” below. 86 Table of Contents Total Equity As of March 31, 2025 2026 % Change (in billions, except percentages) Capital stock ¥ 2,090.3 ¥ 2,090.3 — % Capital surplus 4,300.0 4,014.5 (6.6) Retained earnings 10,060.9 10,943.0 8.8 Retained earnings appropriated for legal reserve 239.6 239.6 — Unappropriated retained earnings 9,821.3 10,703.4 9.0 Accumulated other comprehensive income, net of taxes 2,561.2 3,460.5 35.1 Treasury stock, at cost (726.9) (935.2) (28.6) Total Mitsubishi UFJ Financial Group shareholders’ equity ¥ 18,285.5 ¥ 19,573.1 7.0 Noncontrolling interests 964.2 1,267.0 31.4 Total equity ¥ 19,249.7 ¥ 20,840.1 8.3 % Ratio of total equity to total assets 4.74 % 4.90 % Capital Adequacy We are subject to various regulatory capital requirements promulgated by the regulatory authorities of the countries in which we operate. Failure to meet minimum capital requirements can result in mandatory actions being taken by regulators that could have a direct material effect on our consolidated financial statements. Moreover, if our capital ratios are perceived to be low, our counterparties may avoid entering into transactions with us, which in turn could negatively affect our business and operations. For further information, see “Item 3.D. Key Information—Risk Factors—Risks Related to Our Ability to Meet Regulatory Capital Requirements—We may not be able to maintain our capital ratios and other regulatory ratios above minimum required levels, which could result in various regulatory actions, including the suspension of some or all of our operations.” We continually monitor our risk-adjusted capital ratios, leverage ratio and TLAC ratios closely, and manage our operations in consideration of the capital requirements. Factors that affect some or all of these ratios include fluctuations in the value of our assets, including our credit risk assets such as loans and equity securities, the risk weights of which depend on the borrowers’ or issuers’ internal ratings, and marketable securities, and fluctuations in the value of the Japanese yen against the U.S. dollar and other foreign currencies, as well as general price levels of Japanese equity securities. Capital Requirements for Banking Institutions in Japan Under Japanese regulatory capital requirements, our consolidated capital components, including Common Equity Tier 1, Tier 1, and Tier 2 capital and risk-weighted assets, are calculated based on our consolidated financial statements prepared under Japanese GAAP. Each of the consolidated and stand-alone capital components and risk-weighted assets of our banking subsidiaries in Japan is also calculated based on consolidated and non-consolidated financial statements prepared under Japanese GAAP. As of March 31, 2026, we were required to maintain a minimum Common Equity Tier 1 capital ratio of 8.68% consisting of the minimum requirement at 4.5% plus a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.18% (compared to the countercyclical buffer of 0.16% required as of March 31, 2025). See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Capital adequacy.” For information on the issuances of Additional Tier 1 and Tier 2 securities, see also “—Recent Developments—Issuances of Basel III-Compliant Subordinated Debt.” Leverage Requirements for Banking Institutions in Japan 87 Table of Contents Our consolidated leverage ratio is calculated in accordance with the methodology prescribed in the FSA guidance that has been adopted to implement the relevant Basel III standard. The leverage ratio is designed for monitoring and preventing the build-up of excessive leverage in the banking sector and is expressed as the ratio of Tier 1 capital to total balance sheet assets adjusted in accordance with the FSA guidance. As of March 31, 2025 and 2026, we were required to maintain a minimum leverage ratio of 3.95% consisting of the minimum requirement at 3.15% plus a leverage ratio buffer equal to 50% of the G-SIB surcharge plus 0.05%, while deposits with the Bank of Japan remain excluded from the leverage ratio calculation. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Leverage ratio.” TLAC Requirements for Banking Institutions in Japan Our External TLAC ratios are calculated in accordance with the methodology prescribed in the FSA guidance that has been adopted to implement the TLAC Principle published by the FSB in November 2015. External TLAC ratios are expressed as the ratio of external TLAC amount to risk-weighted assets or total exposure in accordance with the FSA guidance. As of March 31, 2025 and 2026, we were required to maintain External TLAC ratios of 18% on a risk-weighted assets basis and 7.10% on a total exposure basis, while deposits with Bank of Japan remain excluded from the calculation of External TLAC ratios on a total exposure basis. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Total loss-absorbing capacity.” For information on the issuances of TLAC-qualified securities, see also “—Recent Developments—Issuances of TLAC Eligible Senior Debt.” Capital Ratios, Leverage Ratio and External TLAC Ratios of MUFG The figures underlying the amounts and ratios in the table below are calculated in accordance with Japanese banking regulations based on information derived from our consolidated financial statements prepared in accordance with Japanese GAAP, as required by the FSA. The amounts and ratios below are rounded down. Starting from the fiscal year ended March 31, 2025, the fiscal year of Krungsri has been changed from the previous January to December period to an April to March period for consolidation purposes. In connection with the change, the amount of retained earnings under Japanese GAAP which is included in MUFG's Common Equity Tier 1 capital component as of March 31, 2025, reflects Krungsri's relevant amount for the fifteen months ended March 31, 2025. As of March 31, 2025 Minimumratios required(1) As of March 31,2026 Minimumratios required(1) (in billions, except percentages) Capital components: Common Equity Tier 1 ¥ 15,169.2 ¥ 15,002.2 Additional Tier 1 2,635.6 2,981.7 Tier 1 capital 17,804.8 17,984.0 Tier 2 capital 2,340.1 2,289.5 Total capital ¥ 20,145.0 ¥ 20,273.6 Risk-weighted assets ¥ 106,930.4 ¥ 120,281.7 Capital ratios: Common Equity Tier 1 capital 14.18 % 8.66 % 12.47 % 8.68 % Tier 1 capital 16.65 % 10.16 % 14.95 % 10.18 % Total capital 18.83 % 12.16 % 16.85 % 12.18 % Leverage ratio(2) 5.29 % 3.95 % 4.94 % 3.95 % External TLAC ratios Risk-weighted assets basis(3) 24.64 % 18.00 % 23.25 % 18.00 % Total exposure basis 9.16 % 7.10 % 9.06 % 7.10 % Notes: (1)The minimum capital ratios required as of March 31, 2025 include a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.16%. The minimum capital ratios required as of March 31, 2026 include a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.18%. (2)Deposits with the Bank of Japan are excluded from the leverage exposure based on notification issued by the FSA. (3)The External TLAC ratio on a risk-weighted assets basis and the required minimum ratio as of March 31, 2025 do not include the regulatory capital buffers consisting of a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.16%. The External TLAC ratio on a risk-weighted 88 Table of Contents assets basis and the required minimum ratio as of March 31, 2026 do not include the regulatory capital buffers consisting of a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.18%. Management believes that, as of March 31, 2026, we were in compliance with all capital adequacy requirements to which we were subject. Our Common Equity Tier 1 capital ratio as of March 31, 2026 was lower compared to the ratio as of March 31, 2025 primarily due to an increase in risk-weighted assets. The increase in risk-weighted assets was mainly driven by the expansion of our loan portfolio. The decrease in the ratio also reflected the impact of our investment in Shriram Finance. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Capital adequacy.” Capital Ratios and Leverage Ratios of Major Banking Subsidiaries in Japan The figures underlying the ratios in the table below are calculated in accordance with Japanese banking regulations based on information derived from each bank’s consolidated and non-consolidated financial statements prepared in accordance with Japanese GAAP, as required by the FSA. The ratios below are rounded down. Starting from the fiscal year ended March 31, 2025, the fiscal year of Krungsri has been changed from the previous January to December period to an April to March period for consolidation purposes. In connection with the change, the amount of retained earnings under Japanese GAAP which is included in MUFG Bank's Common Equity Tier 1 capital component as of March 31, 2025, reflects Krungsri's relevant amount for the fifteen months ended March 31, 2025. As of March 31,2025 Minimumratios required As of March 31,2026 Minimumratios required Consolidated: MUFG Bank Common Equity Tier 1 capital ratio 15.10 % 4.50 % 13.87 % 4.50 % Tier 1 capital ratio 17.68 % 6.00 % 16.42 % 6.00 % Total capital ratio 19.63 % 8.00 % 18.02 % 8.00 % Leverage ratio(1) 5.45 % 3.15 % 5.25 % 3.15 % Mitsubishi UFJ Trust and Banking Common Equity Tier 1 capital ratio 13.56 % 4.50 % 12.84 % 4.50 % Tier 1 capital ratio 16.41 % 6.00 % 15.55 % 6.00 % Total capital ratio 19.96 % 8.00 % 19.40 % 8.00 % Leverage ratio(1) 5.90 % 3.15 % 5.83 % 3.15 % Stand-alone: MUFG Bank Common Equity Tier 1 capital ratio 12.30 % 4.50 % 10.06 % 4.50 % Tier 1 capital ratio 15.24 % 6.00 % 12.95 % 6.00 % Total capital ratio 17.07 % 8.00 % 14.34 % 8.00 % Leverage ratio(1) 4.51 % 3.15 % 4.21 % 3.15 % Mitsubishi UFJ Trust and Banking Common Equity Tier 1 capital ratio 14.35 % 4.50 % 12.56 % 4.50 % Tier 1 capital ratio 16.89 % 6.00 % 14.91 % 6.00 % Total capital ratio 20.06 % 8.00 % 18.26 % 8.00 % Leverage ratio(1) 7.21 % 3.15 % 6.82 % 3.15 % Note: (1)Deposits with the Bank of Japan are excluded from the leverage exposure based on notification issued by the FSA. Management believes that, as of March 31, 2026, our banking subsidiaries were in compliance with all capital adequacy requirements to which they were subject. 89 Table of Contents Liquidity Coverage Ratios of MUFG and Major Banking Subsidiaries in Japan The LCRs in the table below are calculated in accordance with Basel III as adopted by the FSA for the periods indicated. The figures underlying the ratios are calculated in accordance with Japanese banking regulations. The percentages below are rounded down. Three months ended March 31,2025(1),(6) June 30,2025(2),(6) September 30,2025(3),(6) December 31,2025(4),(6) March 31,2026(5),(6) MUFG (consolidated) 163.8 % 161.8 % 160.8 % 154.3 % 146.5 % MUFG Bank (consolidated) 174.5 % 170.6 % 171.5 % 163.1 % 155.7 % MUFG Bank (stand-alone) 182.6 % 180.0 % 181.4 % 170.8 % 161.6 % Mitsubishi UFJ Trust and Banking (consolidated) 124.0 % 122.8 % 123.6 % 128.3 % 122.0 % Mitsubishi UFJ Trust and Banking (stand-alone) 145.2 % 141.5 % 142.2 % 150.6 % 139.2 % Notes: (1)Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between January 6, 2025 and March 31, 2024 divided by the average amount of net cash outflows for the same 57 business days. (2)Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between April 1, 2025 and June 30, 2025 divided by the average amount of net cash outflows for the same 62 business days. (3)Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between July 1, 2025 and September 30, 2025 divided by the average amount of net cash outflows for the same 62 business days. (4)Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between October 1, 2025 and December 30, 2025 divided by the average amount of net cash outflows for the same 62 business days. (5)Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between January 5, 2026 and March 31, 2026 divided by the average amount of net cash outflows for the same 58 business days. (6)The LCR is to be calculated as an average based on daily values in accordance with the Japanese banking regulations. See “—B. Liquidity and Capital Resources—Financial Condition—Sources of Funding and Liquidity.” Net Stable Funding Ratios of MUFG and Major Banking Subsidiaries in Japan The NSFRs in the table below are calculated in accordance with Basel III as adopted by the FSA as of the dates indicated. The figures underlying the ratios are calculated in accordance with Japanese banking regulations. The percentages below are rounded down. As of March 31, 2025 As of June 30, 2025 As of September 30, 2025 As of December 31, 2025 As of March 31, 2026 MUFG (consolidated) 120.9 % 119.7 % 115.0 % 108.3 % 118.7 % MUFG Bank (consolidated) 127.0 % 126.4 % 123.5 % 117.2 % 120.2 % MUFG Bank (stand-alone) 127.5 % 126.9 % 124.6 % 117.7 % 124.0 % Mitsubishi UFJ Trust and Banking (consolidated) 127.7 % 125.5 % 124.6 % 121.0 % 115.3 % Mitsubishi UFJ Trust and Banking (stand-alone) 127.3 % 123.0 % 122.8 % 117.9 % 113.7 % See “—B. Liquidity and Capital Resources—Sources of Funding and Liquidity.” Capital Requirements for Securities Firms in Japan and Overseas We have securities subsidiaries in Japan and overseas, which are also subject to regulatory capital requirements. In Japan, the Financial Instruments and Exchange Act of Japan and related ordinances require financial instruments firms to maintain a minimum capital ratio of 120% calculated as a percentage of capital accounts less certain fixed assets, as determined in accordance with Japanese GAAP, against amounts equivalent to market, counterparty credit and operational risks. Specific guidelines are issued as a ministerial ordinance which details the definitions of essential components of the capital ratios, including capital, deductible fixed asset items and risks, and related measures. Failure to maintain a minimum capital ratio will trigger mandatory regulatory actions. A capital ratio of less than 140% will call for additional regulatory reporting, a capital ratio of less than 120% may result in an order to change the method of business, and a capital ratio of less than 100% may lead to a suspension of all or part of the business for a period of time and cancellation of a registration. Overseas securities subsidiaries are subject to the relevant regulatory capital requirements of the countries or jurisdictions in which they operate. 90 Table of Contents Capital Ratio of Mitsubishi UFJ Morgan Stanley Securities As of March 31, 2026, on a stand-alone basis, Mitsubishi UFJ Morgan Stanley Securities’ capital accounts less certain fixed assets of ¥593.5 billion represented 292.1% of the total amounts equivalent to market, counterparty credit and operational risks. As of the same date, on a consolidated basis, Mitsubishi UFJ Morgan Stanley Securities’ capital accounts less certain fixed assets of ¥596.3 billion represented 290.3% of the total amounts equivalent to market, counterparty credit and operational risks. As of March 31, 2025, on a stand-alone basis, Mitsubishi UFJ Morgan Stanley Securities’ capital accounts less certain fixed assets of ¥ 564.2 billion represented 300.7% of the total amounts equivalent to market, counterparty credit and operational risks. As of the same date, on a consolidated basis, Mitsubishi UFJ Morgan Stanley Securities’ capital accounts less certain fixed assets of ¥564.3 billion represented 300.7% of the total amounts equivalent to market, counterparty credit and operational risks. These figures are calculated in accordance with Japanese GAAP, pursuant to the Financial Instruments and Exchange Act of Japan. For further information, see Note 21 to our consolidated financial statements. Non-exchange Traded Contracts Accounted for at Fair Value The use of non-exchange traded or over-the-counter contracts provides us with the ability to adapt to the varied requirements of a wide customer base while mitigating market risks. Non-exchange traded contracts are accounted for at fair value, which is generally based on pricing models or quoted prices for instruments with similar characteristics. Gains or losses on non-exchange traded contracts are included in “Trading account profits (losses)—net” in our consolidated statements of income. Fiscal years ended March 31, 2025 2026 (in millions) Net fair value of contracts outstanding at beginning of fiscal year ¥ 294 ¥ 562 Changes attributable to contracts realized or otherwise settled during the fiscal year 88 (347) Fair value of new contracts entered into during the fiscal year 332 — Changes in fair values attributable to changes in valuation techniques and assumptions 31 47 Other changes in fair value, principally revaluation at end of fiscal year (183) (82) Net fair value of contracts outstanding at end of fiscal year ¥ 562 ¥ 180 Maturities of Non-exchange Traded Contracts As of March 31, 2026 Net fair value of contracts—unrealized gains Prices provided byother external sources Prices based on models andother valuation methods (in millions) Maturity less than 1 year ¥ — ¥ — Maturity less than 3 years — 180 Maturity less than 5 years — — Maturity 5 years or more — — Total fair value ¥ — ¥ 180 C.Research and Development, Patents and Licenses, etc. Not applicable. D.Trend Information See the discussions in “—Business Environment,” “—Recent Developments,” “—A. Operating Results” and “—B. Liquidity and Capital Resources.” E.Critical Accounting Estimates 91 Table of Contents Our consolidated financial statements are prepared in accordance with U.S. GAAP. Certain accounting policies require management to make difficult, complex or subjective judgments regarding the valuation of assets and liabilities. The accounting policies are fundamental to understanding our operating and financial review and prospects. The notes to our consolidated financial statements provide a summary of our significant accounting policies. The following is a summary of the critical accounting estimates: Allowance for Credit Losses The allowance for credit losses represents an estimate of the credit losses that are expected over the life of the financial instrument or exposure and has three components: the allowance for loans measured on a collective basis, when similar risk characteristics exist, the allowance for loans measured on an individual basis, for loans that do not share similar risk characteristics, and the allowance for losses on unfunded credit commitments, which is included in other liabilities. The methodology for estimating credit losses uses relevant available information relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made over a forecast period to account for differences between current and expected future conditions and those reflected in historical loss information. Beyond the forecast period, estimated expected credit losses revert to average historical loss experience. The estimation of the allowance for credit losses involves significant judgment on a number of assumptions including the assessment of risk characteristics, assignment of a borrower’s internal credit rating, valuation of collateral, expectations of future economic conditions and the development of qualitative adjustments. We divide our loan portfolio into the following segments—Commercial, Residential, Card, Krungsri, and Other—and determine the allowance for credit losses for each segment. On March 31, 2026, we had ¥119,864.7 billion and ¥9,844.8 billion of loans in the Commercial and Krungsri segments, respectively, and recorded an allowance for credit losses against these loans of ¥567.6 billion and ¥477.2 billion, respectively. The allowance for credit losses is estimated using quantitative models that incorporate economic forecast scenarios. These economic forecast scenarios include macroeconomic variables that have historically been correlated with historical credit losses. These variables include, but are not limited to, unemployment rate and gross domestic product. As any one economic forecast scenario is inherently uncertain, multiple economic forecast scenarios were leveraged. The macroeconomic variables in multiple economic forecast scenarios and weightings given to each scenario depend on a variety of factors including recent economic conditions and views of internal as well as third-party economists. The determination of the allowance for credit losses for the Commercial and Krungsri segments required management to make significant judgments due to the subjectivity and uncertainty associated with expectations of future economic conditions. Particularly significant judgment was required to be made to determine certain macroeconomic variables in the multiple economic forecast scenarios and the weightings given to each scenario, to capture the heightened volatility and uncertainty primarily due to changes in global economic conditions, inflation, monetary and trade policies, and geopolitical situations. The allowance for credit losses includes qualitative adjustments to cover losses that are expected but were not reflected in the modeled allowance. The determination of the allowance for credit losses for the Krungsri segment required management to make significant judgments due to the subjectivity and uncertainty associated with the development of qualitative adjustments. Particularly significant judgment was required to be made to develop certain qualitative adjustments to capture the effects on modeled expected credit losses primarily arising from inflation and temporary relief measures for the Krungsri segment. The determination of the allowance for credit losses for the Commercial segment required management to make significant judgments, due to the subjectivity and uncertainty associated with the determination of a borrower’s internal credit rating, which were highly dependent on the estimation of a borrower’s performance and business sustainability, particularly in cases in which borrowers were experiencing weaknesses in their business performance. Particularly significant judgment was required to be made when these borrowers’ performance and business sustainability were affected by changes in the external and internal business environment, including changes in global economic conditions, inflation, monetary and trade policies, and geopolitical situations. Key elements relating to the policies and discipline used in determining the allowance for credit losses for the Commercial segment are our credit classification and the related borrower categorization process. Each of these components is determined based on estimates subject to change when actual events occur. The categorization is based on conditions that may affect the ability of borrowers to service their debt, taking into consideration current financial information, historical payment experience, credit documentation, public information, analyses of relevant industry segments and current trends. In determining the appropriate level of allowance, we evaluate the probable loss by category of the loan based on its type and characteristics. Determining the adequacy of the allowance for credit losses requires the exercise of considerable judgment and the use of estimates, such as those discussed above. Our actual losses could be more or less than the estimates. To the extent that actual losses differ from management’s estimates, additional provisions for credit losses may be required that would adversely impact our operating results and financial condition in future periods. For further information regarding our methodologies used in establishing the 92 Table of Contents allowance for credit losses by portfolio segment and allowance for credit losses policies, see Note 1 to our consolidated financial statements and “—B. Liquidity and Capital Resources—Financial Condition—Loan Portfolio.” For more information on our credit and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Credit Risk Management.” Goodwill As part of our global strategies, we have executed multiple large-scale acquisitions, investments and capital alliances, and recorded goodwill resulting from these business combinations. U.S. GAAP requires us to test goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired, using a process that compares the carrying amount of a reporting unit with its fair value. An impairment loss is recognized to the extent that the carrying amount of a reporting unit exceeds its fair value, but not exceeding the total amount of goodwill allocated to that reporting unit. A reporting unit is an operating segment or component of an operating segment that constitutes a business for which discrete financial information is available and is regularly reviewed by management. The fair value of a reporting unit is defined as the amount at which the unit as a whole could be bought or sold in a current transaction between willing parties. Our consolidated goodwill balance was ¥566.5 billion on March 31, 2026, which was allocated to our reporting units in the Retail & Digital Business Group, Global Corporate & Investment Banking Business Group, Global Commercial Banking Business Group, Asset Management & Investor Services Business Group and Global Markets Business Group. For a reporting unit for which an observable quoted price is not available, we determined the fair value of each reporting unit mainly using the income approach. The income approach determined the fair value of the reporting units by discounting management’s projections of each reporting unit’s cash flows, including a terminal value to estimate the fair value of cash flows beyond the final year of projected results, using a discount rate derived from the capital asset pricing model. The determination of the fair value of these reporting units requires management to make significant judgments related to significant assumptions due to the subjectivity and uncertainty associated with the assumptions. The significant assumptions included projected future operating cash flows based on forecasted future income in the income approach. Valuation of Financial Instruments We measure certain financial assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including trading securities, trading derivatives and investment securities. In addition, certain other assets and liabilities are measured at fair value on a non-recurring basis, including held for sale loans which are carried at the lower of cost or fair value, collateral dependent loans and nonmarketable equity securities subject to impairment. We have elected the fair value option for certain foreign securities classified as available-for-sale debt securities, whose unrealized gains and losses are reported in income, and marketable equity securities. The guidance on the measurement of fair value defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We have an established and documented process for determining fair value in accordance with the guidance. To determine the fair value, we use quoted prices which include those provided from pricing vendors, where available. We generally obtain one price or quote per instrument and do not adjust it to determine the fair value of the instrument. We perform internal price verification procedures to ensure that the prices and quotes provided from the independent pricing vendors are reasonable. Such verification procedures include a comparison of pricing sources and analysis of variances among pricing sources. These verification procedures are periodically performed by independent risk management departments. For collateralized loan obligations, or CLOs, backed by general corporate loans, the fair value is determined by weighting the internal model valuation and the non-binding broker-dealer quotes. If quoted prices are not available to determine the fair value of derivatives, the fair value is based upon valuation techniques that use, where possible, current market-based or independently sourced parameters, such as interest rates, yield curves, foreign exchange rates, volatilities and credit curves. The fair values of trading liabilities are determined by discounting future cash flows at a rate which incorporates our own creditworthiness. In addition, valuation adjustments may be made to ensure that the financial instruments are recorded at fair value. These adjustments include, but are not limited to, amounts that reflect counterparty credit quality, funding cost, liquidity risk, and model risk. Our financial models are validated and periodically reviewed by risk management departments independent of divisions that created the models. For a further discussion of the valuation techniques applied to the material assets or liabilities, see Note 31 to our consolidated financial statements. 93 Table of Contents Accounting Changes and Recently Issued Accounting Pronouncements See “Accounting Changes” and “Recently Issued Accounting Pronouncements” in Note 1 to our consolidated financial statements. 94 Table of Contents