MUFG

In the current market and regulatory environment, financial groups such as us are expected to ensure increasingly more sophisticated and comprehensive risk management. Risk management plays an increasingly important role in our operations as a financial group operating globally through various subsidiaries. We identify various risks arising from businesses based on group-wide uniform criteria and implement integrated risk management to ensure a stronger financial condition and to maximize shareholder value. Based on this approach, we identify, measure, control and monitor a wide variety of risks so as to achieve a stable balance between earnings and risks. Not all risks, including certain climate-related risks, can be managed in a quantitative manner due either to the nature of the risk or the lack of quantitative inputs available to us. Where quantitative assessment is not feasible, we use a qualitative approach in an effort to manage the associated future risks. We undertake risk management to create an appropriate capital structure and to achieve optimal allocation of resources. However, our risk management measures may not be fully effective in identifying all risks or mitigating the impact of any materialized risk on us. Risk Classification At the holding company level, we broadly classify and define risk categories faced by the Group, including those that are summarized below. Group companies perform more detailed risk management based on their respective operations. 129 Table of Contents Type of Risk Definition Credit Risk The risk of financial loss in credit assets (including off-balance sheet instruments) caused by deterioration in the credit condition of counterparties. This category includes country risk. Market Risk The risk of financial loss where the value of our assets and liabilities could be adversely affected by changes in market variables such as interest rates, securities prices and foreign exchange rates. Market liquidity risk is the risk of financial loss caused by the inability to secure market transactions at the required volume or price levels as a result of market turbulence or lack of trading liquidity. Funding Liquidity Risk The risk of incurring loss if a poor financial position at a group company hampers the ability to meet funding requirements or necessitates fund procurement at interest rates markedly higher than normal. Operational Risk The risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events. •Operations Risk The risk of incurring losses arising from negligence of correct operational processing, incidents or misconduct involving officers or staff, as well as risks similar to this risk. •Information Risk The risk of loss caused by loss, alteration, falsification or leakage of personal or other confidential information, as well as risks similar to such risk. • IT Risk The risk of loss arising from destruction, suspension, malfunction or misuse of IT, or unauthorized alteration and leakage of electronic data caused by insufficient IT systems planning, development or operations or by vulnerabilities of or external threats to IT system security, including cybersecurity, as well as risks similar to such risk. •Tangible Asset Risk The risk of loss due to damage to tangible assets or deterioration in the operational environment caused by disasters or inadequate asset maintenance, as well as risks similar to this risk. Tangible assets include movable and immovable property, including owned or leased land and buildings, facilities incidental to buildings, and fixtures and fittings. • Personnel Risk The risk of loss due to an outflow or loss of human resources or deterioration in employee morale, as well as risks similar to this risk. •Incompliance with Laws and Regulations Risk The risk of loss due to failure to comply with laws and regulations, as well as risks similar to such risk. • Legal Risk The risk of loss due to failure to identify or address legal issues relating to contracts and other business operations or insufficient handling of lawsuits, as well as risks similar to such risk. Reputation Risk The risk of harm to our corporate value arising from perceptions of our customers, shareholders, investors or other stakeholders and in the market or society that we deviate from their expectations or confidence. Model Risk The risk of loss due to decision-making based on information provided by an inaccurate model or the misuse of a model. Risk Management System We have adopted an integrated risk management system to promote close cooperation among the holding company and group companies. The holding company and our banking and securities subsidiaries each have appointed a chief risk officer and established an independent risk management division. The board of directors of the holding company determines risk management policies for various types of risks based on the discussions at, and reports and recommendations from, committees established specially for risk management purposes. The holding company has established committees to oversee management in managing risks relevant to the Group. Following the fundamental risk management policies determined by the board of directors, each group company establishes its own systems and procedures for identifying, analyzing and managing various types of risks from both quantitative and qualitative perspectives. The holding company seeks to enhance group-wide risk identification, to integrate and improve the Group’s risk management system and related methods, to maintain asset quality, and to eliminate concentrations of specific risks. The following diagram summarizes our integrated risk management framework: 130 Table of Contents Risk Management System Crisis Management Framework In order to have a clear critical response rationale and associated decision-making criteria, we have developed systems designed to ensure that our operations are not interrupted or can be restored to normal quickly in the event of a crisis such as a natural disaster, cyber-attack, system failure or a pandemic of an infectious disease so as to minimize any disruption to customers and markets. A crisis management team within the holding company is the central coordinating body in the event of any emergency. Based on information collected from crisis management personnel at the major subsidiaries, this central body would assess the overall impact of a crisis on the Group’s business and establish task forces that could implement all countermeasures to restore full operations. We have business 131 Table of Contents continuity plans to maintain continuous operational viability in the event of natural disasters, cyber-attacks, system failures and other types of emergencies. Regular training drills are conducted to upgrade the practical effectiveness of these systems. We conduct a comprehensive review of our existing business continuity plan to more effectively respond to such extreme scenarios, and contemplate and implement measures to augment our current business continuity management framework, including enhancing our off-site back-up data storage and other information technology systems. Implementation of Basel Standards In determining capital ratios under the FSA guidelines implementing Basel III, we and our major banking subsidiaries have used the Advanced Internal Ratings-Based approach, or the AIRB approach, to calculate capital requirements for credit risk since March 31, 2024. Since the same date, we have reflected market risk in our risk-weighted assets by using the Standardized Approach and the Simplified Standardized Approach, and have reflected operational risk in our risk-weighted assets by using the Standardized Measurement Approach. Based on the Basel III framework, the Japanese capital ratio framework has been revised to implement the more stringent requirements, which are being implemented in phases beginning on March 31, 2013. In addition, based on the final Basel III reforms, the Japanese capital ratio framework has been further revised to implement the reforms, which are being applied to Japanese banking institutions with international operations conducted through foreign offices, including us, in phases beginning on March 31, 2024, and are scheduled to be fully implemented from March 31, 2029. Likewise, local banking regulators outside of Japan have begun, or are expected, to revise the capital and liquidity requirements imposed on our subsidiaries and operations in those countries to implement the more stringent requirements of Basel III as adopted in those countries. We intend to carefully monitor further developments with an aim to enhance our corporate value and maximize shareholder value by integrating the various strengths within the Group. For more information on the Basel regulatory framework and requirements, see “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation.” Credit Risk Management We have established risk management systems to maintain asset quality, manage credit risk exposure and achieve earnings commensurate with risk. MUFG and its major banking subsidiaries apply a uniform credit rating system for asset evaluation and assessment, loan pricing, and quantitative measurement of credit risk. This system also underpins the calculation of capital requirements and the management of credit portfolios. We continually seek to upgrade our credit portfolio management, or CPM, expertise to achieve an improved risk-adjusted return based on the Group’s credit portfolio status and flexible response capability to economic and other external changes. Credit Risk Management System The credit portfolios of our banking and securities subsidiaries are monitored and assessed on a regular basis by the holding company to maintain and improve asset quality. A uniform credit rating and asset evaluation and assessment system is used to ensure timely and proper evaluation of all credit risks. Under our credit risk management system, each of our subsidiaries in the banking, securities, consumer finance, and leasing businesses, manages its respective credit risk on a consolidated basis based on the attributes of the risk, while the holding company oversees and manages credit risk on an overall group-wide basis. The holding company also convenes regular committee meetings to monitor credit risk management at banking subsidiaries and to issue guidance where necessary. Each major banking subsidiary has in place a system of checks and balances in which a credit administration section that is independent of the business promotion sections screens individual transactions and manages the extension of credit. At the management level, regular meetings of the Credit & Investment Management Committee and related deliberative bodies ensure full discussion of important matters related to credit risk management. Besides such checks and balances and internal oversight systems, credit examination sections also undertake credit testing and evaluation to ensure appropriate credit risk management. The following diagram summarizes the credit risk management framework for our major banking subsidiaries: 132 Table of Contents Credit Rating System MUFG and its major banking subsidiaries use an integrated credit rating system to evaluate credit risk. The credit rating system consists primarily of borrower rating, facility risk rating, structured finance rating and asset securitization rating. Beginning April 1, 2025, we introduced our new credit rating system with a new financial scoring model and a new framework for qualitative assessment of a borrower’s financial strength and debt service capacity in order to enhance our credit risk management. The changes to our credit rating system did not have a material impact on the consolidated financial statements. Country risk is also rated on a uniform group-wide basis. Our country risk rating is reviewed periodically to take into account relevant political and economic factors, including foreign currency availability. Risk exposure for small retail loans, such as residential mortgage loans, is managed by grouping loans into various pools and assigning ratings at the pool level. Borrower rating Our borrower rating classifies borrowers into 15 grades based on evaluations of their expected debt-service capability over the next three to five years. 133 Table of Contents The following table sets forth our borrower grades: Definition of MUFG Borrower Rating MUFGBorrowerRating MUFG Borrower Rating Definition 1 The capacity to meet financial commitments is extremely certain, and the borrower has the highest level of creditworthiness. 2 The capacity to meet financial commitments is highly certain, but there are some elements that may result in lower creditworthiness in the future. 3 The capacity to meet financial commitments is sufficiently certain, but there is the possibility that creditworthiness may fall in the long run. 4 There are no problems concerning the capacity to meet financial commitments, but there is the possibility that creditworthiness may fall in the long run. 5 There are no problems concerning the capacity to meet financial commitments, and creditworthiness is in the middle range. 6 There are no problems concerning the capacity to meet financial commitments presently, but there are elements that require attention if the situation changes. 7 There are no problems concerning the capacity to meet financial commitments presently, but long-term stability is poor. 8 There are no problems concerning the capacity to meet financial commitments presently, but long-term stability is poor, and creditworthiness is relatively low. 9 The capacity to meet financial commitments is somewhat poor, and creditworthiness is the lowest among “Normal” customers. Borrowers who must be closely monitored because of the following business performance and financial conditions: 10 through 12 (1)Borrowers who have problematic business performance, such as virtually delinquent principal repayment or interest payment; (2)Borrowers whose business performance is unsteady, or who have unfavorable financial conditions; (3) Borrowers who have problems with loan conditions and for whom interest rates have been reduced or shelved. 10 Although business problems are not serious or their improvement is seen to be remarkable, there are elements of potential concern with respect to the borrower’s management, and close monitoring is required. 11 Business problems are serious, or require long-term solutions. Serious elements concerning business administration of the borrower have emerged, and subsequent debt repayment needs to be monitored closely. 12 Borrowers who fall under the criteria of Rating 10 or 11 and have a loan concession granted. Borrowers who have “Loans contractually past due 90 days or more.” (As a rule, delinquent borrowers are categorized as “Likely to Become Bankrupt,” but the definition here applies to borrowers delinquent for 90 days or more because of inheritance and other special reasons.) 13 Borrowers who pose a serious risk with respect to debt repayment and with whom loss is likely to occur in the course of transactions. While still not bankrupt, these borrowers are in financial difficulty, with poor progress in achieving restructuring plans, and are likely to become bankrupt in the future. 14 While not legally bankrupt, borrowers who are considered to be virtually bankrupt because they are in serious financial difficulty and have no prospects for an improvement in their business operations. 15 Borrowers who are legally bankrupt (i.e., who have no prospects for continued business operations because of non-payment, suspension of business, voluntary liquidation, or filing for legal liquidation). Japanese banks were historically required to use the following categories of borrowers under the then applicable FSA inspection manual, which was abolished in December 2019, and are currently expected to use them as a basis for their borrower categorization with appropriate adjustments under the FSA’s discussion paper: •Normal borrowers (generally corresponding to borrowers in categories 1 through 9 in our ratings), which are borrowers that are performing well, with no significant financial concerns, •Borrowers requiring close watch (generally corresponding to borrowers in categories 10 through 12 in our ratings), which include loans that have been amended to allow for delays or forgiveness of interest payments, borrowers experiencing difficulty in complying with loan terms and conditions and borrowers that are recording losses or performing badly, •Borrowers likely to become bankrupt (generally corresponding to borrowers in category 13 in our ratings), which are borrowers who pose a serious risk with respect to debt repayment and with whom loss is likely to occur in the course of transactions. While still not bankrupt, these borrowers are in financial difficulty, with poor progress in achieving restructuring plans, and are likely to become bankrupt in the future, •Virtually bankrupt borrowers (generally corresponding to borrowers in category 14 in our ratings), which are not legally bankrupt, but borrowers who are considered to be virtually bankrupt because they are in serious financial difficulty and have no prospects for an improvement in their business operations, and 134 Table of Contents •Bankrupt borrowers or de facto bankrupt borrowers (generally corresponding to borrowers in category 15 in our ratings), which are borrowers who are legally bankrupt (i.e., who have no prospects for continued business operations because of non-payment, suspension of business, voluntary liquidation, or filing for legal liquidation proceedings). The primary data utilized in our assessment of borrowers include the borrower’s financial statements and notes thereto as well as other public disclosure made by the borrower. In addition, when appropriate and possible, we obtain non-public financial and operating information from borrowers, such as the borrower’s business plan, borrower’s self-evaluation of its operating assets and other borrower information about its business and products. Based on the borrower and industry information, we assign borrower ratings mainly by applying financial scoring models—either developed internally or by third-party vendors, depending on the borrower’s attributes, whether the borrower is domestic or foreign, and whether the borrower is a corporate entity or another type of legal entity (such as a school, hospital or fund). For example, for general business corporations, which constitute the largest borrower attribute in our current loan portfolio in terms of number of borrowers, we have adopted an internally developed financial scoring model, exclusively designed and developed for such attribute. We have selected various financial ratios that we believe to be useful and meaningful to quantitatively measure and assess the borrowers’ financial standing and repayment capability. Such financial ratios represent, among other things, borrowers’ profitability, stability, company size, cash flow and liquidity. The model is periodically tested against historical results. The following is an illustration of some of the financial ratios we utilize as part of our financial scoring model: •To measure profitability: Gross profit to sales, and profit before tax to sales, •To measure stability: Debt to equity ratio, and debt to capital ratio, and •To measure company size: Total asset and total equity. The financial score obtained through the models is reviewed and, when necessary, adjusted to reflect our qualitative assessment of the borrower’s financial strength and other factors that could affect the borrower’s ability to service the debt. For example, we take into account: capability of turning around the business (in case of borrowers with losses) or recovering positive net worth (in case of borrowers with negative net worth), and factors relating to business volatility, capability of management and governance, funding availability and lack of liquidity, as well as our assessment of the probability of receiving support from parent companies (if the borrower is a subsidiary of a large listed company). When adjusting the results of primary financial scoring assigned to borrowers with losses, we consider the severity of losses and the possibility of improving operating results. We analyze and assess whether the loss is temporary, the trend in operating results is improving, or the loss is expected to continue for an extended period. When adjusting the results of primary financial scoring assigned to borrowers with losses or borrowers with negative net worth, we also analyze whether the borrower can return to a positive net worth, and the time period needed to achieve such recovery (one to two years, three to five years, or five years or more). In addition, adjustments based on business volatility take into account business volatility arising from industry factors and borrower specific factors, such as restrictions and entry barriers, market volatility, and portfolio diversification. Adjustments based on capability of management and governance reflect our assessment of management’s capability to formulate and execute business strategies that may significantly affect future business operations, as well as the borrower’s risk management capability and organizational management capability. Adjustments based on funding availability and lack of liquidity reflect the possibility that the borrower may face future liquidity constraints, taking into account factors such as its banking relationships, access to capital markets and diversity of funding sources. When assessing the probability of receiving support from parent companies, various factors are examined, such as the parent company’s credit standing and support policy, the extent of management control exercised by the parent company, and the borrower’s strategic positioning within the corporate group. In addition, we consider outside ratings, and our internal borrower ratings may be adjusted when deemed appropriate. Facility risk rating Facility risk rating is used to evaluate and classify the quality of individual credit facilities, including guarantees and collateral. Ratings are assigned by quantitatively measuring the estimated loss rate of a facility in the event of a default. Structured finance rating and asset securitization rating Structured finance rating and asset securitization rating are used to evaluate and classify the quality of individual credit facilities, including guarantees and collateral, and focus on the structure, including the applicable credit period, of each credit facility. In 135 Table of Contents evaluating the debt service potential of a credit facility, we scrutinize its underlying structure to determine the likelihood of the planned future cash flows being achieved. Pool assignment Each major banking subsidiary has its own system for pooling and rating small retail loans designed to reflect the risk profile of its loan portfolios. Asset evaluation and assessment system The asset evaluation and assessment system is used to classify assets held by us according to the probability of collection and the risk of any impairment in value based on borrower classifications consistent with the borrower ratings and the status of collateral, guarantees, and other factors. The system is used to conduct write-offs and allocate allowances against credit risk in a timely and adequate manner. Quantitative Analysis of Credit Risk MUFG and its major banking subsidiaries manage credit risk by monitoring credit amount and expected losses, and run simulations based on internal models to estimate the maximum amount of credit risk. These models are used for internal management purposes, including loan pricing and measuring economic capital. When quantifying credit risk amounts using the internal models, MUFG and its major banking subsidiaries consider various parameters, including the probability of default, loss given default, and exposure at default used in their borrower ratings, facility risk ratings and pool assignments as well as any credit concentration risk in particular borrower groups or industry sectors. MUFG and its major banking subsidiaries also share credit portfolio data in appropriate cases. Loan Portfolio Management We aim to achieve and maintain levels of earnings commensurate with credit risk exposure. Products are priced to take into account expected losses, based on the internal credit ratings. We assess and monitor loan amounts and credit exposure by credit rating, industry and region. Portfolios are managed to limit concentrations of risk in specific categories in accordance with our Large Credit Guidelines. To manage country risk, we have established specific credit ceilings by country. These ceilings are reviewed when there is a material change in a country’s credit standing, in addition to being subject to a regular periodic review. Continuous CPM Improvement With the prevalence of securitized products and credit derivatives in global markets, we seek to supplement conventional CPM techniques with advanced methods based on the use of such market-based instruments. Through credit risk quantification and portfolio management, we aim to improve the risk return profile of the Group’s credit portfolio, using financial markets to rebalance credit portfolios in a dynamic and active manner based on an accurate assessment of credit risk. Risk Management of Strategic Equity Portfolio We hold shares of various corporate clients for strategic purposes, in particular to maintain long-term relationships with these clients. These investments have the potential to increase business revenue and appreciate in value. At the same time, we are exposed to the risk of price fluctuations in the Japanese stock market. For that reason, in recent years, it has been a high priority for us to reduce our equity portfolio to limit the risks associated with holding a large equity portfolio, but also to respond to applicable regulatory requirements as well as increasing market expectations and demands for us to reduce our equity portfolio. We are required to comply with a regulatory framework that prohibits Japanese banks from holding an amount of shares in excess of their adjusted Tier 1 capital. See “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Financial Condition—Investment Portfolio.” 136 Table of Contents We use quantitative analysis to manage the risks associated with the portfolio of equities held for strategic purposes. According to internal calculations, the market value of our strategically held (Tokyo Stock Exchange-listed) stocks (excluding foreign stock exchange-listed stocks) as of March 31, 2026 was subject to a variation of approximately ¥1.1 billion when TOPIX index moves one point in either direction. We seek to manage and reduce strategic equity portfolio risk based on quantitative analysis such as the sensitivity analysis described above. The aim is to keep this risk at appropriate levels compared with Tier 1 capital while generating returns commensurate with the degree of risk exposure. Market Risk Management Management of market risk at MUFG aims to control our risk exposure to fluctuations in market variables across the Group while ensuring that earnings are commensurate with levels of risk. Market Risk Management System We have adopted an integrated system to manage market risk from our trading and non-trading activities. The holding company monitors group-wide market risk, while each of the major subsidiaries manages its market risks on a consolidated and global basis. At each of the major subsidiaries, checks and balances are maintained through a system in which back and middle offices operate independently from front offices. In addition, separate Asset-Liability Management, or ALM, Committee and Risk Management Meetings are held at each of the major subsidiaries every month to deliberate important matters related to market risk and control. The holding company and the major subsidiaries allocate economic capital commensurate with levels of market risk and determined within the scope of their capital bases. The major subsidiaries have established quantitative limits relating to market risk based on their allocated economic capital. In addition, in order to keep losses within predetermined limits, the major subsidiaries have also set limits for the maximum amount of losses arising from market activities. The following diagram summarizes the market risk management system of each major subsidiary: Market Risk Management System of Our Major Subsidiaries Market Risk Management and Control At the holding company and the major subsidiaries, market risk exposure is reported to the Chief Risk Officers on a daily basis. At the holding company, the Chief Risk Officer monitors market risk exposure across the Group as well as the major subsidiaries’ control over their quantitative limits for market risk and losses. Meanwhile, the Chief Risk Officers at the major subsidiaries monitor their own market risk exposure and their control over their quantitative limits for market risk and losses. In addition, various analyses on risk profiles, including stress testing, are conducted and reported to the Executive Committees and the Corporate Risk Management Committees on a regular basis. At the business unit levels in the major subsidiaries, the market risks on their marketable assets and 137 Table of Contents liabilities, such as interest rate risk and foreign exchange rate risk, are controlled by entering into various hedging transactions using marketable securities and derivatives. As part of our market risk management activities, we use certain derivative financial instruments to manage our interest rate and currency exposures. We maintain an overall interest rate risk management strategy that incorporates the use of interest rate contracts to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. We enter into interest rate swaps and other contracts as part of our interest rate risk management strategy primarily to alter the interest rate sensitivity of our loans, investment securities and deposit liabilities. Our principal objectives in risk management include asset and liability management. Asset and liability management is viewed as one of the methods for us to manage our interest rate exposures on interest-earning assets and interest-bearing liabilities. Interest rate contracts, which are generally non-leveraged generic interest rate and basis swaps, options and futures, allow us to effectively manage our interest rate risk position. Option contracts primarily consist of caps, floors, swaptions and options on index futures. Futures contracts used for asset and liability management activities are primarily index futures providing for cash payments based upon the movement of an underlying rate index. We enter into forward exchange contracts, currency swaps and other contracts in response to currency exposures resulting from on-balance sheet assets and liabilities denominated in foreign currencies in order to limit the net foreign exchange position by currency to an appropriate level. These market risk management activities are performed in accordance with the predetermined rules and procedures. The internal auditors regularly verify the appropriateness of the management controls over these activities and the risk evaluation models adopted. Market Risk Measurement Model To measure market risks, MUFG uses the VaR method which estimates changes in the market value of portfolios within a certain period by statistically analyzing past market data. Since the daily variation in market risk is significantly greater than that in other types of risk, MUFG measures and manages market risk using VaR on a daily basis. Market risk for trading and non-trading activities is measured using a market risk measurement model. The principal model used for these activities is a historical simulation, or HS, model (Trading activities: holding period, one business day; confidence interval, 95%; and observation period, 250 business days. Non-trading activities (which include available-for-sale debt securities as well as loans, deposits and held-to-maturity debt securities): holding period, 10 business days; confidence interval, 99%; and observation period, 701 business days). The HS model calculates VaR amounts by estimating the profit and loss on the current portfolio by applying actual fluctuations in market rates and prices over a fixed period in the past. This method is designed to capture certain statistically infrequent movements, such as a fat tail. Changes in the fair value of loans, deposits and held-to-maturity debt securities are considered in the Non-trading activities, while such changes are not reflected in our financial statements. In calculating VaR using the HS method, we have implemented an integrated market risk measurement system throughout the Group. Our major subsidiaries calculate their VaR based on the risk and market data prepared by the information systems of their front offices and other departments. The major subsidiaries provide this risk data to the holding company, which calculates overall VaR, taking into account the diversification effect among all portfolios of the major subsidiaries. For the purpose of internally evaluating capital adequacy on an economic capital basis in terms of market risk, we use this market risk measurement model to calculate risk amounts based on a holding period of one year and a confidence interval of 99.9%. Monitoring and managing our sensitivity to interest rate fluctuations is key to managing market risk in MUFG’s non-trading activities. The major banking subsidiaries take the following approach to measuring risks concerning core deposits, loan prepayments and early deposit withdrawals. To measure interest rate risk relating to deposits without contract-based fixed maturities, the amount of “core deposits” is calculated through a statistical analysis based on deposit balance trend data and the outlook for interest rates on deposits, business decisions, and other factors. The amount of “core deposits” is categorized into various groups of maturity terms of up to ten years to recognize interest rate risk. The calculation assumptions and methods to determine the amount of core deposits and maturity term categorization are regularly reviewed. Meanwhile, deposits and loans with contract-based maturities are sometimes cancelled or repaid before their maturity dates. To measure interest rate risk for these deposits and loans, we reflect these early termination events mainly by applying early termination rates calculated based on a statistical analysis of historical repayment and cancellation data together with historical market interest rate data. Summaries of Market Risks Trading activities 138 Table of Contents The aggregate VaR for our total trading activities as of March 31, 2026 was ¥2.72 billion, comprising interest rate risk exposure of ¥2.73 billion, foreign exchange risk exposure of ¥0.85 billion, and equity-related risk exposure of ¥0.33 billion. Our average daily VaR for the fiscal year ended March 31, 2026 was ¥2.46 billion. Due to the nature of trading operations which involves frequent changes in trading positions, market risk may vary substantially during and between measurement periods, depending on our trading positions. The following tables set forth the VaR related to our trading activities by risk category for the periods indicated: April 1, 2024—March 31, 2025 Average Maximum(1) Minimum(1) March 31, 2025 (in billions) MUFG ¥ 1.79 ¥ 3.66 ¥ 1.20 ¥ 1.53 Interest rate 1.53 1.87 1.19 1.56 Yen 0.79 1.23 0.54 0.98 U.S. Dollars 0.93 1.42 0.61 0.85 Foreign exchange 0.69 1.23 0.47 0.51 Equities 0.43 2.43 0.10 0.24 Commodities 0.00 0.00 0.00 0.00 Less diversification effect (0.86) — — (0.78) April 1, 2025—March 31, 2026 Average Maximum(1) Minimum(1) March 31, 2026 (in billions) MUFG ¥ 2.46 ¥ 3.64 ¥ 1.36 ¥ 2.72 Interest rate 2.20 3.26 1.41 2.73 Yen 1.43 2.40 0.80 1.57 U.S. Dollars 1.33 1.76 0.81 1.39 Foreign exchange 0.79 1.73 0.51 0.85 Equities 0.83 2.07 0.09 0.33 Commodities 0.00 0.00 0.00 0.00 Less diversification effect (1.36) — — (1.19) Assumptions for VaR calculations: Historical simulation method Holding period: 1 business day Confidence interval: 95% Observation period: 250 business days Note: (1)The maximum and minimum VaR overall and for various risk categories were taken from different days. A simple summation of VaR by risk category is not equal to total VaR due to the effect of diversification. The average daily VaR by quarter in the fiscal year ended March 31, 2026 was as follows: Quarter Daily average VaR (in billions) April—June 2025 ¥ 2.36 July—September 2025 2.28 October—December 2025 2.46 January—March 2026 2.75 139 Table of Contents Non-trading Activities The aggregate VaR for our total non-trading activities as of March 31, 2026, excluding market risks related to our strategic equity portfolio, was ¥511.5 billion. Market risk related to interest rates equaled ¥418.2 billion and equities-related risk equaled ¥160.9 billion. Compared with the VaR as of March 31, 2025, market risk decreased in the fiscal year ended March 31, 2026, primarily due to a decrease in Japanese yen interest rate risk. Based on a simple sum of figures across market risk categories, interest rate risks accounted for approximately 71% of our total non-trading activity market risks as of March 31, 2026. Looking at a breakdown of interest rate related risk by currency, as of March 31, 2026, the Japanese yen accounted for approximately 31% while the U.S. dollar accounted for approximately 67%, and the euro approximately 2%, with a 17 percentage point decrease in the Japanese yen, an 18 percentage point increase in the U.S. dollar and a one percentage point decrease in the euro compared to March 31, 2025. For a description of our strategic equity investment risk management, see “—Risk Management of Strategic Equity Portfolio.” The following tables set forth the VaR related to our non-trading activities by risk category for the periods indicated: April 1, 2024—March 31, 2025 Average Maximum(1) Minimum(1) March 31, 2025 (in billions) Interest rate ¥ 456.0 ¥ 519.8 ¥ 394.7 ¥ 498.2 Yen 328.3 440.0 253.2 359.6 U.S. Dollars 306.7 415.7 210.2 360.8 Foreign exchange 5.0 9.5 2.3 5.2 Equities(2) 103.1 120.7 81.6 105.6 Commodities 0.2 1.8 0.1 0.1 Less diversification effect (44.4) ― ― (49.1) Total 519.9 578.8 450.3 560.0 April 1, 2025—March 31, 2026 Average Maximum(1) Minimum(1) March 31, 2026 (in billions) Interest rate ¥ 435.0 ¥ 493.8 ¥ 370.9 ¥ 418.2 Yen 235.7 368.0 152.9 197.9 U.S. Dollars 365.8 423.3 287.7 421.3 Foreign exchange 7.2 14.9 4.2 7.2 Equities(2) 151.3 191.8 93.5 160.9 Commodities 0.1 0.2 0.0 0.0 Less diversification effect (81.2) ― ― (74.8) Total 512.4 564.6 463.1 511.5 Assumptions for VaR calculations: Historical simulation method Holding period: 10 business days Confidence interval: 99% Observation period: 701 business days Notes: (1)The maximum and minimum VaR overall for each category and in total were taken from different days. A simple summation of VaR by risk category is not equal to total VaR due to the effect of diversification. (2)The equities-related risk figures do not include market risk exposure from our strategic equity portfolio. The average daily interest rate VaR by quarter in the fiscal year ended March 31, 2026 was as follows: 140 Table of Contents Quarter Daily average VaR (in billions) April—June 2025 ¥ 452.05 July—September 2025 435.04 October—December 2025 428.65 January—March 2026 424.27 Limitations of the Market Risk Measurement Model and Related Measures Actual losses may exceed the value at risk obtained by the application of an HS VaR model in the event, for example, that the market fluctuates to a degree not accounted for in the observation period, or that the correlations among various risk factors, including interest rates and foreign currency exchange rates, deviate from those assumed in the model. In order to complement these weaknesses of the HS-VaR model and measure potential losses that the model is not designed to capture, we conduct stress testing, as appropriate, on our HS-VaR model for our non-trading activities by applying various stress scenarios, including those which take into account estimates regarding future market volatility, in order to better identify risks and manage our portfolio in a more stable and appropriate manner. In addition, we utilize back-testing to verify the effectiveness of our VaR measurement model. Funding Liquidity Risk Management Our major subsidiaries seek to maintain appropriate liquidity in both Japanese yen and foreign currencies by managing their funding sources and mechanisms, such as deposits, short-term borrowings and long-term debt, liquidity gap, liquidity-supplying products such as commitment lines, and buffer assets, primarily government bonds. We have established a group-wide system for managing liquidity risk by categorizing the risk in the following three stages: normal, concern and crisis. The front offices and risk management offices of the major subsidiaries and the holding company exchange information and data on liquidity risk even at the normal stage. At higher alert stages, we centralize information about liquidity risk and discuss issues relating to group-wide liquidity control actions, including formulating contingency plans, among Group companies, if necessary. We have also established a system for liaison and consultation on funding in preparation for contingency, such as natural disasters, wars and terrorist attacks. The holding company and the major subsidiaries conduct group-wide contingency preparedness drills on a regular basis to ensure smooth implementation in the event of an emergency. In addition, we have established a group-wide system for ensuring compliance with the minimum regulatory LCR and NSFR requirements by categorizing the risk in the following three stages: sufficient, concern and insufficient. The holding company and the major subsidiaries exchange information and data on LCR and NSFR even at the sufficient stage. At higher alert stages, we hold group-wide LCR and NSFR liaison meetings to discuss issues relating to LCR and NSFR and, based on the discussion as well as the information and data that have been shared, take countermeasures to improve LCR and NSFR as necessary. For more information, see “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Financial Condition—Sources of Funding and Liquidity.” See also “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.” Operational Risk Management The holding company has established, based on its Executive Committee’s determination, the MUFG Operational Risk Management Policy as a group-wide policy for managing operational risk. This policy sets forth the core principles regarding operational risk management, including the definition of operational risk, and the risk management system and processes. Pursuant to the policy, under the oversight of the board of directors, the Executive Committee formulates fundamental principles of operational risk management and establishes and maintains a risk management system as it considers appropriate. The Chief Risk Officer is responsible for recognizing, evaluating, and appropriately managing operational risk in accordance with the fundamental principles formulated by the board of directors and the Executive Committee. A division in charge of operational risk management has been established that is independent of business promotion sections to manage overall operational risk in a comprehensive manner. In addition, senior management receives regular reports on the status of our business operations from the perspective of managing operational risk in accordance with the fundamental principles. These fundamental principles have also been approved by the boards of directors of the major subsidiaries, providing a consistent framework for operational risk management of the Group. The diagram below sets forth the operational risk management system of each major banking subsidiary: 141 Table of Contents Operational Risk Management System of Our Major Banking Subsidiaries As set forth in the following diagram, we have established a risk management framework for loss data collection, control self-assessment, and measurement of operational risk in order to appropriately identify, recognize, evaluate, measure, control, monitor and report operational risk. We have also established group-wide reporting guidelines with respect to loss data collection and its monitoring. We focus our efforts on ensuring accurate assessment of the status of operational risk losses and the implementation of appropriate countermeasures, while maintaining databases of internal and external loss events. The following diagram summarizes our operational risk management framework: 142 Table of Contents Operational Risk Management Framework Operations Risk Management The Group companies offer a wide range of financial services, ranging from commercial banking products such as deposits, exchange services and loans to trust and related services covering pensions, securities, real estate and securitization, as well as transfer agent services. Cognizant of the potentially significant impact that operations risk-related events could have in terms of both economic losses and damage to our reputation, our major subsidiaries continue to work on improving their management systems to create and apply appropriate operations risk-related controls. Specific ongoing measures to reduce operations risk include the development of databases to manage, analyze and prevent the recurrence of related loss events; efforts to tighten controls over administrative procedures and related operating authority, while striving to improve human resources management, investments in systems to improve the efficiency of administrative operations, and programs to expand and upgrade internal auditing and operational guidance systems. We work to promote the sharing within the Group of information and expertise concerning any operational incidents and the measures implemented to prevent any recurrence. Efforts to upgrade the management of operations risk continue with the aim of providing our customers with a variety of high-quality services. Information Risk Management Complying with laws and regulations requiring proper handling of customer information, we implement information security management measures, including the establishment of an information risk management framework, enhancement of our internal operational procedures, and training courses mandatory for all officers and staff. We have also formulated our Personal Information Protection Policy as the basis for our ongoing programs designed to protect the confidentiality of personal information. With the aim of preventing any recurrence and minimizing risk or loss, we also work to promote sharing on a group-wide basis of experience, knowledge and expertise related to information risk incidents. IT Risk Management 143 Table of Contents IT risk refers to the following risks: - Loss arising from destruction of, suspension of services reliant on, defects in, or misuse of IT, - Unauthorized alteration, leakage or loss of electronic data caused by insufficient IT systems planning, development or operations, and - External threats to or vulnerabilities in IT systems security, including cybersecurity. Systems planning, development and operations include appropriate design and extensive testing phases to ensure that systems are designed to help prevent failures while providing sufficient safeguards for the security of electronic data including personal information. System development projects are managed and overseen by a team dedicated to performing such management and oversight functions, and the development status of any mission-critical IT systems is reported regularly to senior management. Disaster countermeasure systems development and investments for redundancy of the Group’s IT infrastructure are designed to minimize damage in the event of any system failure. Emergency drills are conducted to help increase staff preparedness. Group-wide sharing of experience, knowledge and expertise related to system failures is promoted with the aim of preventing recurrence of, and minimizing, risk or loss. Contingency plans, including alternatives for both operations and systems, are designed to ensure operational resilience, enable quick recovery and reduce impact in the event of a system failure. In addition, the risk of increasingly sophisticated cyber-attacks is a significant focus of the Board of Directors, and the Board regularly receives reports regarding our cybersecurity risk management program. We continue to work to strengthen measures designed to address and mitigate the risk, including the establishment of MUFG-CERT, our Computer Emergency Response Team, implementation of multi-layered defense and detection measures, enhancement of monitoring systems, and cooperation with global organizations with relevant expertise. MUFG-CERT is responsible for taking prompt action to coordinate and manage response to cyber security incidents to mitigate their impact. For more information, see "Item 16K. Cybersecurity." We have established the “MUFG AI Policy” to ensure the safe, appropriate and secure use of AI. Under this policy, we are working to strengthen our AI risk management framework as a business entity engaged in AI utilization. See “Item 3.D. Key Information—Risk Factors—Operational Risk—We are exposed to risks related to the development and use of AI by us and others.” Tangible Asset Risk Management Tangible assets include movable physical properties and immovable properties, owned or leased, such as land, buildings, equipment attached to buildings, fixtures and furniture. We recognize the potentially significant impact tangible asset risk-related events can have on the management and execution of the Group’s businesses, which in turn can result in economic losses to, or diminished market confidence in, the Group. Accordingly, we continue to improve our risk control framework designed to appropriately manage such risk. Personnel Risk Management We recognize the potentially significant impact personnel risk-related events can have on the management and execution of the Group’s businesses, which in turn can result in economic losses to, or diminished market confidence in, the Group. Accordingly, we continue to work on improving our risk control framework designed to appropriately manage such risk. Incompliance with Laws and Regulations Risk Management We recognize the potentially significant impact compliance risk-related events can have on the management and execution of the Group’s businesses, which in turn can result in economic, reputation and other losses to, or diminished market confidence in, the Group. Accordingly, we continue to work on improving our compliance risk control framework designed to appropriately manage such risk. Specifically, we have established our MUFG Group Code of Conduct as the basic guideline for the Group’s directors and employees. In addition, a compliance management division has been established at each of the holding company and the major subsidiaries. See “—Compliance” below. Legal Risk Management The legal division at each of the holding company and the major subsidiaries centrally and uniformly evaluates legal issues prior to entering into contracts or commencing new business operations, deals with legal disputes and manages other legal matters. With the 144 Table of Contents aim of effectively managing our legal risk arising from our globally expanding business operations, we have established a global and group-wide legal risk management framework and promote sharing of experience, knowledge and practices relating to legal risk issues on a global and group-wide basis. The Standardized Measurement Approach for Operational Risk We adopted the Standardized Measurement Approach, or SMA, as of March 31, 2024, in place of the Advanced Measurement Approach that we had previously used, for calculation of the operational risk capital amount in measuring our capital adequacy ratios under applicable Japanese regulatory requirements based on the Basel III Standards. The SMA is intended to reduce complexity and variability in the calculation of operational risk capital amount and replace all previously permitted approaches. Succinctly put, under the SMA, operational risk capital amount is calculated based on a bank’s income, expense items and historical loss amounts. Using a bank’s income and expense items as inputs, a financial statement-based proxy for the bank’s operational risk exposure, which is referred to as the Business Indicator, is calculated based on a prescribed formula. The Business Indicator is multiplied by an applicable coefficient or coefficients (between 12% and 18%) to arrive at the value referred to as the Business Indicator Component (BIC). The calculated BIC is then multiplied by a scaling factor referred to as the Internal Loss Multiplier (ILM), which is calculated based on a prescribed formula using the bank’s average historical operational risk losses over the last 10 years, or a conservative estimate value with a lower bound of 1, as an input. Based on the foregoing, operational risk capital amount is calculated by multiplying the BIC and the ILM, and the risk weighted assets for operational risk are defined as the product of operational risk capital and 12.5. Reputation Risk Management Reputation risk refers to the risk of harm to our corporate value arising from perceptions of our customers, shareholders, investors or other stakeholders and in the market or society that we deviate from their expectations or confidence. We recognize that such risk, if materialized, can have a material negative impact on our business and continue to work on enhancing our framework designed to appropriately manage the risk based on MUFG Way, MUFG Group Code of Conduct, and other rules and codes of the Group. Specifically, in order to manage our reputation risk effectively on a group-wide basis, we have established a risk management system designed to ensure mutual consultation and reporting if a reputation risk-related event occurs or is anticipated and, through this system, share relevant information within the Group. Through the risk control framework and risk management system, we seek to prevent reputation risk-related events and minimize damage to the corporate value of the Group by promptly obtaining an accurate understanding of relevant facts relating to risk events and disclosing information concerning such events and the measures we take in response to such events in an appropriate and timely manner. Model Risk Management We recognize the potentially significant impact model risk-related events can have on the management and execution of the Group’s businesses, which in turn can result in economic losses to, or diminished market confidence in, the Group. Models are used for increasingly wider and more important purposes, including valuing exposures, instruments and positions, measuring risks, determining capital adequacy and compliance. Accordingly, we continue to work on improving our risk control framework. See “Item 3.D. Key Information—Risk Factors—Operational Risk—We are exposed to risks related to the development and use of AI by us and others.” Compliance Basic Policy In April 2021, MUFG renamed its Corporate Vision as “MUFG Way” and newly defined its social purpose—the purpose of its existence, along with its shared values and medium- to long-term goal. MUFG Way serves as the group’s basic policy in conducting its business activities and provides guidelines for all group activities. Furthermore, we have established MUFG Group Code of Conduct as the guidelines for how the Group’s directors and employees act to realize the Corporate Vision, in which we have expressed our commitment to complying with laws and regulations, to acting with honesty and integrity, and to behaving in a manner that supports and strengthens the trust and confidence of society. 145 Table of Contents In addition, as we expand the geographic scope of our business globally, we are committed to keeping abreast of developments in laws and regulations of the jurisdictions in which we operate including anti-money laundering and anti-bribery, as well as paying attention to trends in financial crimes. See “Item 3.D. Key Information—Risk Factors—Operational Risk—Legal and regulatory changes could have a negative impact on our business, financial condition and results of operations.” and “Item 3.D. Key Information—Risk Factors—Operational Risk—We may become subject to regulatory actions or other legal proceedings relating to our transactions or other aspects of our operations, which could result in significant financial losses, restrictions on our operations and damage to our reputation.” See also “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation.” Compliance Framework Management and coordination of compliance-related matters are the responsibility of separate compliance management divisions established at the holding company and the major subsidiaries. Each compliance management division formulates compliance programs and organizes training courses to promote compliance, and regularly reports to each company’s board of directors and Executive Committee on the status of compliance activities. The holding company has established a Group Compliance Committee and each major subsidiary has established a Compliance Committee for deliberating key issues related to compliance. Additionally, the holding company has a Group Chief Compliance Officer, or CCO, Committee, which consists of the CCO of the holding company acting as committee chair and the CCOs of the major subsidiaries. The Group CCO Committee deliberates important matters related to compliance and compliance-related issues for which the Group should share a common understanding. The following diagram summarizes our compliance framework: Compliance Framework Internal Reporting System and Accounting Auditing Hotline The major subsidiaries have established internal reporting systems that aim to identify compliance issues early so that any problems can be quickly rectified. This system includes an independent external compliance hotline. Furthermore, the holding company has set up an MUFG Group Compliance Helpline that acts in parallel with group-company internal reporting systems and provides a reporting channel for directors and employees of Group companies. In the holding company, the contents of the reported cases as well as the results of surveys are reported to the audit committee on a regular basis or whenever necessary. In addition to these internal reporting systems, the holding company has also established an accounting auditing hotline that provides a means to report any problems related to MUFG's accounting practices. 146 Table of Contents MUFG Accounting Auditing Hotline MUFG has set up an accounting auditing hotline to be used to make reports related to instances of improper practices (violations of laws and regulations) and inappropriate practices, or of practices raising questions about such impropriety or inappropriateness, regarding accounting and internal control or audits related to accounting in Group companies. The audit committee oversees the reporting process to ensure the appropriateness and effectiveness of the reporting process and monitors the reports received through the hotline. The reporting process works as follows, and may be carried out via letter or e-mail: Hokusei Law Office, P.C. Address: Sanshikaikan Bldg. 8th Floor 1-9-4 Yurakucho, Chiyoda-ku, Tokyo e-mail:[email protected] When reporting information please pay attention to the following: •Matters subject to reporting are limited to instances regarding the Group companies. •Please provide detailed information with respect to the matter. Without detailed factual information there is a limit to how much our investigations can achieve. •Anonymous information will be accepted. •No information regarding the identity of the informant will be passed on to third parties without the approval of the informant him- or herself. However, this excludes instances where disclosure is legally mandated, or to the extent that the information is necessary for surveys or reports, when data may be passed on following the removal of the informant’s name. •Please submit reports in either Japanese or English. •If the informant wishes, we will endeavor to report back to the informant on the response taken within a reasonable period of time following the receipt of specific information, but cannot promise to do so in all instances. Internal Audit Role of Internal Audit Internal Audit aims to evaluate and assist in the improvement of the effectiveness of governance, risk management and control processes with high proficiency and independence, thereby contributing to the enhancement of the corporate value of the MUFG Group and to the achievement of MUFG Way. Internal Audit covers all aspects of the Group’s business activities and discusses and evaluates the management and operational frameworks and the implementation of business operations from legal compliance, rationality and efficiency perspectives, beyond checking compliance with defined procedures. In addition, Internal Audit provides instructions and recommendations for operational improvement to audited divisions and reports to senior management on such instructions and recommendations, thereby contributing to safeguarding and development of the Group’s assets. Three Lines of Defense Framework Risk management is conducted at multiple levels within a business organization, including front-office divisions in charge of managing specific categories of risk, a compliance division, and an internal audit division. As for financial institutions, including the MUFG Group, based on the experience of past financial crises, the traditional risk management structure that was heavily dependent on front-office divisions has been under close scrutiny. As a result, there is an increasing expectation for financial institutions to achieve more effective risk management through, for example, appropriate allocation of risk management roles and responsibilities among various divisions. Cognizant of the importance of these developments, we have adopted the concept of “Three Lines of Defense” where the roles and responsibilities of each division in risk management are defined, classifying divisions within a financial institution into “the 1st Line of Defense”, “the 2nd Line of Defense” and “the 3rd Line of Defense”. 147 Table of Contents Line Divisions Roles The 1st Line of Defense Business divisions and client-facing divisions •Undertake risks within the extent of risk exposure assigned• Responsible and accountable for identifying, evaluating and controlling business risks The 2nd Line of Defense Risk management division, compliance division, etc. •Ensure that risks are appropriately identified and managed by the 1st Line of Defense The 3rd Line of Defense Internal audit division • Independently evaluate the effectiveness of the governance, risk management, and control processes implemented by the 1st and 2nd Lines of Defense Internal Audit plays an essential role in the Group’s risk management through ongoing communications with the 1st and 2nd Lines of Defense, while maintaining independence. Group Internal Audit Framework The MUFG Group has internal audit functions at the holding company level as well as at the subsidiary level, which are designed to ensure proficiency and independence through effective collaboration. The internal audit division of the holding company receives reports from the internal audit divisions of subsidiaries on the status and results of their internal audits and provides them with instructions and evaluations as needed. Reports to the Audit Committee The holding company has an audit committee within its board of directors as required by the Companies Act of Japan, and each of the major subsidiaries has established an audit and supervisory committee. Within each of the holding company and the major subsidiaries, the internal audit division reports to the committee on important matters, including governing principles for internal audit plans and the status and results of internal audits. MUFG Internal Audit Activity Charter We have adopted “MUFG Internal Audit Activity Charter”, which defines our basic policies for Internal Audit, including its purposes and roles and the organizational positioning of the internal audit function. This charter is designed to encourage Internal Audit staff to conduct internal audits in accordance with the global standards set by the Institute of Internal Auditors, an international organization established for, among other purposes, formulating practical internal audit standards.

A.[Reserved] B.Capitalization and Indebtedness Not applicable. C.Reasons for the Offer and Use of Proceeds Not applicable. D.Risk Factors Investing in our securities involves a high degree of risk. You should carefully consider the risks described in this section, which is intended to disclose the risks that we consider material based on the information currently available to us, as well as all the other information in this Annual Report, including our consolidated financial statements and related notes, “Item 5. Operating and Financial Review and Prospects,” “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk” and “Selected Statistical Data.” Our business, operating results and financial condition could be materially and adversely affected by any of the factors discussed below. The trading price of our securities could decline due to any of these factors. This Annual Report also contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those described in this section and elsewhere in this Annual Report. See “Forward-Looking Statements.” Risks Related to Our Business Environment Because a large portion of our assets as well as our business operations are in Japan, we may incur losses if economic conditions in Japan worsen. Our performance is particularly affected by the general economic conditions of Japan where we are headquartered and conduct a significant amount of our business. As of March 31, 2026, 59.9% of our total assets were related to Japanese domestic assets, including Japanese national government and Japanese government agency bonds, which accounted for 56.7% of our total investment securities portfolio and 7.2% of our total assets, respectively. Interest and non-interest income in Japan represented 37.1% of our total interest and non-interest income for the fiscal year ended March 31, 2026. Furthermore, as of March 31, 2026, our loans in Japan accounted for 53.6% of our total loans outstanding. There is significant uncertainty surrounding Japan’s economy. For example, Japan’s fiscal health and sovereign creditworthiness may deteriorate if the Japanese government’s economic measures and the Bank of Japan’s monetary policies prove ineffective or result in negative consequences. If the prices of Japanese government bonds decline rapidly, resulting in an unexpectedly sudden increase in interest rates, our investment securities portfolio as well as our lending, borrowing, deposit-taking, trading and other operations may be negatively impacted. In addition, interest rates may suddenly increase if the Bank of Japan decides to further tighten its monetary policy, or if there is a change in market expectations relating to any such decision. Instability in the Japanese stock market and foreign currency exchange rates, particularly between the Japanese yen and other major currencies, may also have an adverse impact on our asset and liability management as well as our results of operations. Various other factors, including international geopolitical conflicts, significant or prolonged inflationary or deflationary price trends, the decreasing and aging demographics in Japan, stagnation or deterioration of economic and market conditions in other countries, economic policies adopted by other countries potentially affecting exports from and imports into Japan, growing global competition 5 Table of Contents and trade conflicts, may also have a material negative impact on the Japanese economy. For a detailed discussion on the business environment in Japan and abroad, see “Item 5. Operating and Financial Review and Prospects—Business Environment.” Since our domestic loans in Japan accounted for a significant portion of our loan portfolio, deteriorating or stagnant economic conditions in Japan may cause adverse effects on our financial results, such as increases in credit costs, as the credit quality of our borrowers could deteriorate. Borrowers in particular industries may be adversely affected by disruptions in commodity supply chains, changes in economic behavior, trade restrictions and other consequences of geopolitical and geoeconomic conflicts, and other events that are beyond the control of those that are affected. Our domestic loan portfolio may also be adversely affected by interest rate fluctuations in Japan. For example, the Bank of Japan has been gradually raising its policy interest rate since March 2024, and interest rates in Japan may continue to rise in the future. Unexpected increases in interest rates may negatively affect our borrowers’ debt service capacity, and our credit costs may significantly increase. On the other hand, if the Bank of Japan continues or increases its purchase of Japanese government bonds in the market, the yield on many financial instruments and other market interest rates in Japan are likely to remain at current low levels or decline. In such case, and particularly if the Bank of Japan’s policy rate is lowered from the current level, market interest rates may decline, and our interest rate spread on our domestic loan portfolio may narrow, reducing our net interest income. Our results of operations may be materially affected by instability in, uncertainty over and deterioration of, economic conditions in Japan and around the world. Economic conditions in Japan and around the world may become unstable or deteriorate due to various factors such as changes in the monetary and fiscal policies in major jurisdictions and the fiscal condition of major countries, industrial and trade policies adopted in major markets, rapid and significant fluctuations in foreign exchange rates, global inflation, deflation or stagflation, changes in real estate market trends, and concerns and developments affecting financial institutions, including banks, non-bank lending and credit institutions, securities companies, insurance companies, and investment funds and other financial intermediaries. Uncertainty over the Japanese and global economies still remains because of such other factors as geopolitical instabilities or conflicts, interruptions or changes in international supply chains or trade, and rapid and significant changes in the market, regulatory or business environment. As of March 31, 2026, based principally on the domicile of the obligors, assets related to the United States accounted for approximately 18.8% of our total assets, assets related to Asia and Oceania excluding Japan accounted for approximately 10.1% of our total assets, and assets related to Europe accounted for approximately 6.7% of our total assets. Worsening economic conditions in Japan and around the world may result in, among other things, impairment or valuation losses on securities and other assets that we hold due to declines in the market value of such assets, an increase in our non-performing loans and credit costs due to deterioration in borrowers’ business performance, a decrease in our profits due to deterioration in the creditworthiness of counterparties in market transactions, a reduction in foreign currency funding liquidity, an increase in our foreign currency funding costs, and an increase in the level of risk in the risk assets that we hold. Our profitability may be adversely affected by various other factors, including a decline in our net interest income caused by such factors as changes in the monetary policies of central banks in various jurisdictions. In addition, an economic downturn may result in a decline in new investments and business transactions by customers due to stagnation in economic activity, weak consumer spending, diminished investor appetite for making investments in uncertain financial markets, and a decrease in our assets under custody or management. Our business operations are exposed to risks of natural disasters, terrorism, geopolitical conflicts and other disruptions caused by external events. As a major financial institution incorporated in Japan and operating in major international financial markets, our business operations, ATMs and other information technology systems, personnel, and facilities and other physical assets are subject to the risks of earthquakes including any ensuing tsunami, typhoons, floods and other natural disasters, terrorism, geopolitical, political and social conflicts, health pandemics or epidemics, and other disruptions caused by external events, which are beyond our control. Such external events may result in loss of facility and human and other resources, suspension or delay in all or part of our operations, inability to implement business strategic measures or respond to changes in the market or regulatory environment as planned, and other disruptions to our operations. We may also be required to incur significant costs and expenses, including those incurred for preventive or remedial measures, to deal with such external events. In addition, such external events may negatively impact the economic conditions in the markets we or our customers operate. As a result, our business, operating results and financial condition may be materially and adversely affected. For example, geopolitical conflicts often lead to the imposition of economic and financial sanctions against certain banks, companies and individuals by the governments of Japan, the United States, the European Union and other jurisdictions, resulting in increased complexity in our compliance and control environment. Geopolitical tensions also often lead to increased risk of cyber-attacks or other threats to the global financial systems. Geopolitical conflicts and tensions may hamper our ability to manage such complexity or risk and may result in significant financial, reputational and other losses. 6 Table of Contents As with other Japanese companies, we are exposed to heightened risks of large-scale natural disasters, particularly earthquakes, including any ensuing tsunami. If a large-scale earthquake occurs in areas where our business function is concentrated, such as the Tokyo metropolitan area, or where the facilities, systems, networks and other infrastructure critical to our operations are located, our financial position and business results could be adversely affected. Our risk management policies and procedures may be insufficient to address the consequences of these external events, resulting in our inability to continue to operate a part or the whole of our business. In addition, our redundancy and backup measures and other measures to strengthen our operational resilience may not be sufficient to avoid a material disruption in our operations, and our business continuity framework and contingency plans may not address all eventualities that may occur in the event of a material disruption caused by a large-scale natural disaster. Climate-related risks could have a material adverse impact on us and our clients. We are exposed to climate-related physical risks and risks arising from the process of transitioning to a less carbon-dependent economy. Climate-related physical risks include increased severity and frequency of adverse weather events, such as extreme storms and flooding, and longer-term shifts in climate patterns, such as rising temperatures and sea levels and changes in precipitation amount and distribution. Such physical risks may have adverse impacts on us, both directly on our business operations and as a result of impacts on our borrowers and counterparties, such as declines in the value of loans, investments, real estate and other assets, disruptions in business operations and economic activity, including supply chains, changes in prices of raw materials, commodities and energy, and market volatility. Transition risks include changes in regulations, market preferences and technologies relating to carbon emissions. The possible adverse impacts of transition risks include asset devaluations, increased operational and compliance costs, and an inability to meet regulatory or market expectations. For example, various jurisdictions in which we operate have adopted or are considering adoption of disclosure and financial reporting requirements, which vary in scope and other respects. Such regulatory requirements and stakeholder expectations may result in increased regulatory compliance and litigation risks and costs. We and our borrowers and counterparties may also be unable to adapt product and service offerings, loan and investment portfolio management approaches, governance frameworks and practices, or other ways in which we conduct our business and manage our capital and risk profile to changes in regulatory and market expectations relating to carbon emissions. These adverse impacts or perceptions or expectations of such impacts may result in deterioration in the profitability, financial health, creditworthiness or capital adequacy of affected businesses, including us. Because the timing and nature of climate-related events and regulatory and market changes in reaction to them may be difficult or impossible to predict, our risk management strategies may not be effective in mitigating climate-related risk exposure. Regulatory and market expectations regarding climate change may shift rapidly and generate conflicting views and approaches and may further develop in ways that diverge from our expectations or vary from market to market. The methodologies and data used to monitor and manage climate-related risks also continue to evolve and currently utilize information and estimates derived from information or factors which are currently available but which may be revised or replaced. We have defined and disclosed our aspirational climate-related goals and other relevant information based on the standards that have been adopted by us or are applicable to us. Such goals may prove to be considerably more costly or difficult than currently expected, or even impossible, to achieve, particularly given the high degree of uncertainties surrounding climate-related developments. Uncertainties may further increase depending on the nature and extent of the involvement, cooperation or reaction of our borrowers, counterparties and business partners as well as industry groups, governmental organizations and other stakeholders in or to our efforts to achieve such goals. In addition, if our climate-related risk assessment and disclosure that we make and plan to enhance with the intent to be aligned with relevant recommendations and market, regulatory and other standards are deemed insufficient or inappropriate, if our climate-related measures, including those designed to facilitate the transition to a less carbon-dependent economy, do not proceed as planned or become subject to criticism, if our climate-related risk management proves not to be as effective as expected, if we fail, or are deemed to have failed, to meet evolving market expectations or comply with increasingly complex regulatory requirements relating to climate change, including risk management, capital adequacy and disclosure requirements and standards, or if, as a result of any of the foregoing, we are considered to be failing to fulfill our responsibility to society, then our corporate value may be impaired and our business, financial condition and results of operations may be adversely affected. Risks Related to Our Strategies and Our Major Investees Our business may be adversely affected by competitive pressures, which have partly increased due to regulatory changes and recent market changes in the financial industry domestically and globally. Competition in the financial services industry may further intensify due to the increase in the number of non-financial institutions entering the financial services industry with alternative services, such as electronic settlement services, as a result of development of new technologies as well as significant changes in regulatory barriers. Competition may also further increase as other 7 Table of Contents global financial institutions enhance their competitive strength through development or adoption of new technologies as well as mergers, acquisitions, strategic alliances, and profit enhancement and other measures. Under such circumstances, although we have been implementing various business strategies on a global basis designed to strengthen our competitive position and profitability, our business, financial condition and results of operations may be adversely affected if these strategies fail to produce the results we expect or if we are required to delay or otherwise change these strategies. Our competitiveness may decline because of various factors, including where: •the balance of customer deposits cannot be maintained or does not grow as anticipated; •the volume of loans made to borrowers cannot be maintained or does not increase as anticipated; •our income from interest spreads on loans does not improve as anticipated; •the fair value of our financial assets fluctuate to a larger extent than anticipated; •our fee income cannot be maintained or does not increase as much or quickly as we aim to do; •our strategy to build a business infrastructure for new services and products through digital transformation, use of new technologies or otherwise does not proceed as planned; •customer or market demands for alternative products or services increase at a more rapid pace than expected thereby negatively affecting the demand for our financial products or services; •our strategies to improve financial or operational efficiency is not achieved as expected; •clients and business opportunities are lost, or costs and expenses significantly exceed our expectations, as a result of the ongoing or planned strategies to streamline our business portfolio, to integrate our systems, or to improve financial and operational efficiency not being achieved as expected; •we are unable to hire or retain sufficient human resources; •our foreign currency funding becomes limited or unavailable; •we are restricted in agility or flexibility in investing in non-financial institutions under applicable laws and regulations in and outside of Japan; and •rapid and significant deposit outflows caused by deteriorated customer confidence in our financial health or market confidence in the financial industry result in a lack of liquidity. Our strategy to expand the range of our financial products and services and the geographic scope of our business globally may fail if we are unable to anticipate or manage new or expanded risks that entail such global expansion. As we expand our business operations and operate our business as a global financial institution, we may become exposed to new and increasingly complex risks associated with such expansion. We may not be able to establish appropriate internal controls or risk management systems for the entire MUFG Group, including subsidiaries, or to hire or retain necessary human resources to effectively deal with compliance, regulatory, market and other risks entailing the expanded scope of our operations, products and services, including adoption or integration of new technologies as well as new local market and regulatory environments, in all cases and, as a consequence, our financial condition and results of operations may be adversely affected. As a strategic measure implemented in an effort to become the world’s most trusted financial group, we have acquired businesses, made investments and entered into capital alliances on a global basis, particularly in the United States and Europe as well as the Asia-Pacific region, including India. Our major overseas subsidiaries include Krungsri, a subsidiary in Thailand, and Bank Danamon, a subsidiary in Indonesia, and our recent acquisitions and investments include acquisitions of asset management and investor services companies and investments in non-bank financial institutions mostly in the Asia-Pacific region. We currently plan to continue to pursue opportunities to acquire businesses, make investments and enter into capital alliances globally. Our acquisition, investments and capital alliances, however, may not proceed as planned or may be changed or dissolved, we may not achieve the synergies or other results that we expected, or we may incur impairment or valuation losses on securities acquired or intangible assets, including goodwill, recorded in connection with such business acquisitions, investments or business alliances, because of, among other things, political, geopolitical and social instability and conflicts, stagnation of the economy, fluctuations of the financial market, inability to obtain regulatory approvals, changes in the laws, regulations or accounting standards, changes in the strategies or financial condition of our acquirees, investees or alliance partners that are inconsistent with our interests, and unanticipated changes in the local market, industry or business environment affecting our acquirees, investees or alliance partners. These and other similar circumstances may adversely affect our business strategies, financial condition and results of operations. In addition, we may be unable to achieve the benefits expected from our efforts to expand business operations if our expansion strategy does not proceed as planned. If the goodwill recorded in connection with our acquisitions becomes impaired, we may be required to record impairment losses, which may adversely affect our financial results. We record the excess of the purchase price over the fair value of the assets and 8 Table of Contents liabilities of the acquired companies as goodwill. As of March 31, 2026, the total balance of goodwill was ¥566.5 billion. 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. For further information, see Note 6 to our consolidated financial statements. Our efforts to offer new products and services or penetrate new markets may not succeed due to any of the foregoing reasons or other reasons, including if product or market opportunities develop more slowly than expected, if our new products and services are not well accepted among customers, if the profitability of opportunities is undermined by competitive pressures, regulatory limitations or changes in our business environment, if our planned acquisitions, investments or capital alliances are not approved by regulators or do not proceed as planned, or if our acquisitions, investments or capital alliances fail to achieve the synergies or other results that we expect. If our strategic alliance with Morgan Stanley fails, we could suffer financial or reputational loss. We have a global strategic alliance with Morgan Stanley, under which we operate two joint venture securities companies in Japan, engage in joint corporate finance operations in the United States and pursue other cooperative opportunities. We hold approximately 23.9% of the voting rights in Morgan Stanley as of March 31, 2026 and continue to hold approximately $521.4 million of perpetual non-cumulative non-convertible preferred stock with a 10% dividend. In addition, we currently have two representatives on Morgan Stanley’s board of directors. We maintain this strategic alliance with a view towards long-term cooperation with Morgan Stanley, and plan to deepen the strategic alliance. However, due to any unexpected changes in social, economic, market or financial conditions, changes in the regulatory environment, or any failure to integrate or share staff, products or services, or to operate, manage or implement the business strategy of the joint venture securities companies or other cooperative opportunities as planned, we may be unable to achieve the expected synergies from this alliance. If our strategic alliance with Morgan Stanley is terminated, it could have a material negative impact on our business strategy, financial condition and results of operations. For example, because we conduct our securities operations in Japan through the joint venture companies we have with Morgan Stanley, such termination may result in our inability to attain the planned growth in this line of business. In addition, with our current investment in Morgan Stanley, we have neither a controlling interest in, nor control over the business operations of, Morgan Stanley. If Morgan Stanley makes any business decisions that are inconsistent with our interests, we may be unable to achieve the goals set out for the strategic alliance. Furthermore, although we do not control Morgan Stanley, given the magnitude of our investment, if Morgan Stanley encounters financial or other business difficulties due to adverse changes in the economy, regulatory environment or other factors, we may suffer a financial loss on our investment or damage to our reputation. We apply equity method accounting to our investment in Morgan Stanley in our consolidated financial statements. As a result, Morgan Stanley’s performance affects our results of operations, and Morgan Stanley has contributed to a significant portion of our net income and revenue in recent periods. Rule 3-09 of Regulation S-X requires Morgan Stanley’s financial statements to be included in this Annual Report. In addition, fluctuations in Morgan Stanley’s stock price or in our equity ownership interest in Morgan Stanley may cause us to recognize losses on our investment in Morgan Stanley. 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, as a holding company, and our Japanese banking subsidiaries are required to maintain risk-weighted capital ratios and leverage ratios above the levels specified in the guidelines adopted by the FSA to implement the Basel III framework. As of March 31, 2026, our total risk-adjusted capital ratio was 16.85% compared to the minimum risk-adjusted capital ratio required of 12.18%, our Tier 1 capital ratio was 14.95% compared to the minimum Tier 1 capital ratio required of 10.18%, and our Common Equity Tier 1 capital ratio was 12.47% compared to the minimum Common Equity Tier 1 capital ratio required of 8.68%, each including a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.18%. As of the same date, our leverage ratio was 4.94% compared to the minimum leverage ratio required at 3.95%, which consisted of the minimum requirement at 3.15% and the applicable G-SIB leverage ratio buffer requirement set at 50% of a G-SIB surcharge plus an additional 0.05%. Our capital and leverage ratios are calculated in accordance with Japanese banking regulations based on information derived from our financial statements prepared in accordance with Japanese GAAP. The Financial Stability Board has identified us as one of G-SIBs. The banks that are included in the list of G-SIBs are subject to a capital surcharge to varying degrees depending on the bucket to which each bank is allocated. As the list of G-SIBs is expected to be updated annually, we may be required to meet stricter capital ratio requirements. If our or our Japanese banking subsidiaries’ capital ratios or leverage ratios fall below the required levels, including various capital buffers or a leverage buffer, the FSA may require us to take a variety of corrective actions, including abstention from making 9 Table of Contents capital distributions, such as dividends, share buybacks, interest payments on, and redemption and repurchase of, Additional Tier 1 capital instruments and bonus payments, and suspension of our business operations. In addition, some of our banking subsidiaries are subject to the local capital adequacy ratio and other regulatory ratio requirements of various foreign countries, and if their ratios fall below the required levels, the local regulators will require them to take a variety of corrective actions. Factors that will affect our and our bank subsidiaries’ capital ratios or leverage ratios include: •fluctuations in our or our banking subsidiaries’ portfolios due to deterioration in the creditworthiness of borrowers and the issuers of equity and debt securities; •difficulty in refinancing or issuing instruments upon redemption or at maturity of such instruments to raise capital under terms and conditions similar to prior financings or issuances; •declines in the value of our or our banking subsidiaries’ securities portfolios; •adverse changes in foreign currency exchange rates; •adverse revisions to the capital ratio and other regulatory ratio requirements; •reductions in the value of our or our banking subsidiaries’ deferred tax assets; and •other adverse developments. We are also subject to the FSA’s regulations requiring G-SIBs in Japan to maintain certain minimum levels of capital and liabilities that are deemed to have loss-absorbing and recapitalization capacity, or External TLAC, and allocate a certain minimum level of External TLAC to any material subsidiary within their respective groups of companies, or Internal TLAC. As of March 31, 2026, we maintained 23.25% of External TLAC on a risk-weighted assets basis compared to the required minimum ratio of 18.00% and 9.06% of External TLAC on a total exposure basis compared to the required minimum ratio of 7.10%. Within the MUFG Group, MUFG Bank, Mitsubishi UFJ Trust and Banking, and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. are designated as our material subsidiaries. We may become subject to various regulatory actions, including restrictions on capital distributions, if we are unable to maintain our External TLAC ratios or the amount of Internal TLAC allocated to any of our material subsidiaries in Japan above the minimum levels required by the standards imposed by the FSA, or if the capital buffers are used and reduced below the required level to make up for our required External TLAC ratio on a risk-weighted assets basis. Our External TLAC ratios and the amount of our Internal TLAC are affected by various factors that affect our capital ratios and leverage ratios described above. Although we plan to issue TLAC-qualified debt in an effort to meet the minimum required levels of External TLAC ratios and Internal TLAC amounts, we may fail to do so if we are unable to issue or refinance TLAC-qualified debt as planned. For a discussion of the applicable regulatory guidelines and our capital ratios, see “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation” and “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Capital Adequacy.” Fluctuations in foreign currency exchange rates may result in transaction losses on translation of monetary assets and liabilities denominated in foreign currencies as well as foreign currency translation losses with respect to our foreign subsidiaries and equity method investees. Fluctuations in foreign currency exchange rates against the Japanese yen create transaction gains or losses on the translation into Japanese yen of monetary assets and liabilities denominated in foreign currencies. To the extent that our foreign currency-denominated assets and liabilities are not matched in the same currency or appropriately hedged, we could incur losses due to future foreign exchange rate fluctuations. During the fiscal year ended March 31, 2026, the average balance of our foreign interest-earning assets was ¥133,949.4 billion and the average balance of our foreign interest-bearing liabilities was ¥90,054.7 billion, representing 38.7% of our average total interest-earning assets and 29.3% of our average total interest-bearing liabilities during the same period. Due to foreign currency exchange rate fluctuations, we may incur losses attributable to net transaction losses on the translation into Japanese yen of monetary assets and liabilities denominated in foreign currencies, net losses on currency derivative instruments entered into for trading purposes, and net losses on translation into Japanese yen of securities accounted for under the fair value option. In addition, we may incur foreign currency translation losses with respect to our foreign subsidiaries and equity method investees due to fluctuations in foreign currency exchange rates. For a discussion on foreign currency translation impacts on our financial statements, see “Item 5.A. Operating and Financial Review and Prospects—Operating Results—Effect of Change in Exchange Rates on Foreign Currency Translation.” 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. 10 Table of Contents If the economic conditions in Japan or other parts of the world, including emerging countries, or in particular industries, including the real estate industry and the financial industry, to which we have significant credit risk exposure, worsen, or if industrial and trade policies adopted in major markets, climate change, geopolitical conflicts, fluctuations in commodity prices, including those arising from changes in geopolitical conditions, real estate or stock prices or in interest or foreign exchange rates, changes in the competitive environment or other developments adversely affect global or local economic conditions or particular industries or borrowers, our problem loans and credit-related expenses and losses may increase. An increase in problem loans and credit-related expenses and losses would adversely affect our results of operations, weaken our financial condition and erode our capital base. We may provide additional loans, equity capital or other forms of support to troubled borrowers in order to facilitate their restructuring and revitalization efforts. We may also forbear from exercising some or all of our rights as a creditor against them, and we may forgive loans to them in conjunction with their debt restructurings. We may take these steps even when such steps might not be warranted from the perspective of our short-term or narrow economic interests or a technical analysis of our legal rights against those borrowers, in light of other factors such as our longer-term economic interests and our commitment to supporting the Japanese or broader economy. These practices may substantially increase our exposure to troubled borrowers and increase our losses. Credit losses may also increase if we elect, or are forced by economic or other considerations, to sell or write off our problem loans at a larger discount, in a larger amount or in a different time or manner, than we may otherwise want. Our loan losses could prove to be materially different from our estimates and could materially exceed our current allowance for credit losses, in which case we may need to provide for additional allowance for credit losses and may also record credit losses beyond our allowance. Our allowance for credit losses in our loan portfolio is based on evaluations of customers’ creditworthiness and the value of collateral we hold as well as macroeconomic trends. While we closely observe conditions of our individual borrowers and industry and macroeconomic trends, if we need to provide for additional allowance for credit losses, or the value or liquidity of collateral declines, due to deterioration in domestic or global economic conditions, commodity price fluctuations, financial market deterioration or other conditions specific to certain borrowers, we may incur significant credit losses. Also, the regulatory standards or guidance on establishing allowances may also change, causing us to change some of the evaluations used in determining the allowances. As a result, we may need to provide for additional allowance for credit losses. Our efforts to diversify our portfolio to avoid any concentration of credit risk exposures to particular industries or counterparties may prove insufficient. For example, our credit exposures to the real estate and financial industries are relatively high in comparison to other industries. The credit quality of borrowers in such industries does not necessarily correspond to general economic conditions in Japan or other parts of the world, and adverse developments in the real estate or financial market may disproportionately increase our credit losses. We may incur further losses as a result of financial difficulties relating to other financial institutions, both directly and through the effect they may have on the overall banking environment and on their borrowers. Declining asset quality and other financial problems may exist, arise or worsen at some domestic and foreign financial institutions, including banks, non-bank lending and credit institutions, securities companies, insurance companies, and investment funds and other financial intermediaries. Financial difficulties relating to financial institutions may not only lead to liquidity and insolvency problems for such financial institutions but also result in systemic problems adversely affecting the financial market and the wider economy. Financial difficulties relating to financial institutions could adversely affect us because we have extended loans, some of which may need to be classified as impaired loans, to financial institutions that are not our consolidated subsidiaries. Our loans to banks and other financial institutions have been around 20% of our total loans as of each year-end in the three fiscal years ended March 31, 2026, with the percentage being 22.3% as of March 31, 2026. We may also be adversely affected because we enter into transactions, such as derivative transactions, in the ordinary course of business, with other banks and financial institutions as counterparties. For example, we enter into credit derivatives with banks, broker-dealers, insurance companies and other financial institutions for managing credit risk exposures, for facilitating client transactions, and for proprietary trading purposes. In addition, we may be adversely affected because: •we are shareholders of financial institutions; •financial institutions that face difficulties may terminate or reduce financial support to borrowers, putting such borrowers under financial stress and causing our loans to such borrowers to be impaired; •we may be requested to participate in providing support to distressed financial institutions; •the government may elect to provide regulatory, tax, funding or other benefits to financial institutions under its supervision or control to strengthen their capital or increase their profitability or for other purposes, causing our competitiveness against such financial institutions to weaken; •our deposit insurance premiums may rise if deposit insurance funds prove to be inadequate; 11 Table of Contents •bankruptcies or government control or other intervention of financial institutions may generally undermine the confidence of depositors and investors in, or adversely affect the overall business environment for, financial institutions; and •negative media coverage of the financial industry or system, regardless of its accuracy and applicability to us, may harm our reputation as well as market confidence in the financial industry and system. Risk Relating to Our Strategic Equity Portfolio If the Japanese stock market or other global markets decline in the future, we may incur losses on our securities portfolio and our capital ratios will be adversely affected. Our strategic equity investments in Japan, which account for a vast majority of our total domestic marketable equity securities, were approximately ¥3.7 trillion as of March 31, 2026. A decline in stock prices adversely affects the value of our equity portfolio and may also reduce our regulatory capital ratios because unrealized gains and losses on the equity securities we hold are reflected in the calculation of such ratios. Weakening or stagnant economic conditions in Japan, the United States, China, the Eurozone and Asian countries may have a significant negative impact on Japanese companies, which in turn will cause their stock prices to decline. Japanese stock prices may fluctuate significantly and negatively in future periods, as the global economy remains volatile and investors continue to observe the changes in economic, monetary and trade policies mainly in these countries and regions. Concerns over the impact of geopolitical tensions and conflicts in various parts of the world on Japanese companies may also adversely affect stock prices in Japan. In addition, the global trend towards further reduction in risk assets could result in lower stock prices. Market Risk Fluctuations in interest rates, foreign currency exchange rates and stock prices could adversely affect the value or the yield of our portfolio. We undertake extensive financial market operations involving a variety of financial instruments, including derivatives, and hold large volumes of such financial instruments. As a result, our financial condition and results of operations are subject to the risks relating to these operations and holdings. The primary risks are fluctuations in interest rates, foreign currency exchange rates and stock prices in and outside of Japan. As of March 31, 2026, approximately 27.1% of our total assets were financial instruments which we measure at fair value. The aggregate carrying amount of the Japanese government and corporate bonds and foreign bonds, including U.S. Treasury bonds, that we held as of March 31, 2026 was 8.5% of our total assets. In particular, the Japanese national government and Japanese government agency bonds accounted for 7.2% of our total assets as of March 31, 2026. If market interest rates decline due to such factors as changes in the monetary policies of central banks in various jurisdictions, the yield on the Japanese government bonds and foreign government bonds that we hold may also decline. If market interest rates rise, on the other hand, we may incur significant losses on sales of, and valuation losses on, our bond portfolio, and our debt funding costs may also increase significantly. Furthermore, if short-term interest rates rise to a larger extent than long-term interest rates, our net interest income may be adversely affected as banks, including us, generally pay interest on deposits based on short-term interest rates and earn income on loans based on long-term interest rates. Appreciation of the Japanese yen against the U.S. dollar and other major currencies causes the yen-converted value of our foreign currency-denominated investments to decline and may cause us to recognize significant losses on sales of, or valuation losses on, such investments in our financial statements. Furthermore, if stock prices decline, and the value of marketable equity securities and trading account securities that we hold also declines, we may incur significant losses on sales of, and valuation losses on, our equity securities and trading account securities portfolios. In addition, the derivative financial instruments in our trading portfolio may cause us to record significant gains or losses, when sold or marked to market, and may fluctuate from period to period due to numerous factors that are beyond our control, including interest rate levels, foreign currency exchange rates, stock price fluctuations, the credit risk of our counterparties, and general market volatility. Our assessment and management of market risks, including those related to fluctuations in interest rates, foreign currency exchange rates and securities prices, may prove insufficient and, as a result, our actual losses in the future may exceed our estimated market risk exposure. 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. 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. These situations may arise due to circumstances which we may be unable to control but which have occurred in the past, including market or economic disruptions, financial system instability, and a downgrade in our credit ratings, or circumstances specific to us, including an actual or perceived decline in our creditworthiness. Insufficient liquidity may have a material adverse impact on our business, operating results and financial condition. 12 Table of Contents Assuming the relevant credit rating agencies downgraded the credit ratings of MUFG, MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Securities Holdings as of March 31, 2026 by one-notch on the same date, we estimate that MUFG and its three main subsidiaries would have been required to provide approximately ¥23.8 billion of additional collateral postings under their derivative contracts. Assuming a two-notch downgrade by the credit rating agencies occurring on the same date, we estimate that the additional collateral postings for the same MUFG group companies under their derivative contracts would have been approximately ¥149.4 billion. Rating agencies regularly evaluate us and our major subsidiaries as well as our and their respective debt securities. Their ratings are based on a number of factors, including their assessment of the relative financial strength of MUFG or of the relevant subsidiary, as well as conditions generally affecting the financial services industry in Japan or on a global basis, some of which are not entirely within our control. As a result of changes in their evaluation of these factors or in their rating methodologies, rating agencies may downgrade our ratings or our subsidiaries’ ratings. Operational Risk We may become subject to regulatory actions or other legal proceedings relating to our transactions or other aspects of our operations, which could result in significant financial losses, restrictions on our operations and damage to our reputation. We conduct our business subject to ongoing regulation and associated regulatory and legal risks. Global financial institutions, including us, currently face heightened regulatory scrutiny as a result of the concerns developing in the global financial sector, and growing public pressure to demand even greater regulatory surveillance following several high-profile scandals and risk management failures in the financial industry. In the current regulatory environment, we are subject to various regulatory inquiries or investigations from time to time in connection with various aspects of our business and operations. In addition, multiple government authorities with overlapping jurisdiction more frequently conduct investigations and take other regulatory actions in coordination with one another or separately on the same or related matters. Our controls may be found insufficient in addressing regulatory or public concerns relating to money laundering, economic sanctions, bribery, corruption, financial crimes, or unfair or inappropriate business practices, or in meeting market or industry rules or standards, customer protection requirements, or corporate behavior expectations. For example, we have received requests and subpoenas for information from government agencies in some jurisdictions in connection with their investigations into past submissions made by panel members, including us, to the bodies that set various interbank benchmark rates as well as investigations into foreign exchange related practices of global financial institutions. Some of the investigations into foreign exchange related practices resulted in our payment of monetary penalties to the relevant government agencies. We are cooperating with those investigations. In connection with these matters, we and other financial institutions are involved as defendants in a number of civil lawsuits. These developments or other similar matters may result in additional regulatory actions against us or agreements to make significant additional settlement payments. These developments or other matters to which we are subject from time to time may also expose us to substantial monetary damages, legal defense costs, criminal and civil liability, and restrictions on our business operations as well as damage to our reputation. Our ability to obtain regulatory approvals for future strategic initiatives may also be adversely affected. The outcome of such matters, including the extent of the potential impact of any unfavorable outcome on our financial results, however, is inherently uncertain and difficult to predict. The extent of financial, human and other resources required to conduct any investigations or to implement any corrective or preventive measures is similarly uncertain and could be significant. Such resources may also be difficult for us to secure in a timely manner. Additionally, on June 14, 2024, the Securities and Exchange Surveillance Commission of Japan (“SESC”) issued and announced a recommendation that the Prime Minister and the Commissioner of the Financial Services Agency (“FSA”) take administrative action against our subsidiaries MUFG Bank and Mitsubishi UFJ Morgan Stanley Securities and our securities affiliate. The recommendation was based on the SESC’s findings of, among other things, inappropriate sharing of customer information as well as improper solicitation of business in contravention of the prohibition on engagement by Registered Financial Institutions in securities-related business activities. The SESC’s findings concerned, among other things, the business collaboration among the bank and securities companies and the management of non-public corporate information by the bank and securities companies. In response to the SESC’s recommendation, on June 24, 2024, the FSA issued business improvement orders to MUFG Bank, Mitsubishi UFJ Morgan Stanley Securities and our securities affiliate under Articles 51-2 and 51 of the Financial Instruments and Exchange Act of Japan. Additionally, the FSA has required MUFG and MUFG Bank to submit reports under Articles 52-31 and 24 of the Banking Act of Japan. In response, on July 19, 2024, MUFG, MUFG Bank, Mitsubishi UFJ Morgan Stanley Securities and our securities affiliate submitted documents including business improvement plans to the FSA. MUFG, MUFG Bank, Mitsubishi UFJ Morgan Stanley Securities and our securities affiliate are continuing to take actions based on these orders and requirements. On December 16, 2024, MUFG Bank was required by the FSA to submit a report under Article 24 of the Banking Act of Japan with regard to the incident in which a former employee stole customers’ assets from safe deposit boxes. In response, MUFG Bank submitted a report including measures designed to prevent recurrence to the FSA on January 16, 2025. MUFG Bank is continuing to implement the measures and take other actions. 13 Table of Contents Failure to safeguard personal and other confidential information may result in liability, reputational damage or financial losses. As our operations expand in volume, complexity and geographic scope, we are exposed to increased risk of confidential information in our possession being lost, leaked, altered or falsified as a result of human or system error, misconduct, unlawful behavior or scheme, unauthorized access or natural or human-caused disasters. Our information systems and information management policies and procedures may not be sufficient to safeguard confidential information against such risks. As a financial institution in possession of customer information, we are obligated to treat personal and other confidential information as required by the Act on the Protection of Personal Information, the Act on the Use of Personal Identification Numbers in the Administration of Government Affairs, the Banking Act and the Financial Instruments and Exchange Act of Japan, as well as other similar laws and regulations of other jurisdictions in which we operate. In the event that personal information in our possession about our customers or employees is leaked or improperly accessed and subsequently misused, we may be subject to liability and regulatory action. We may have to provide compensation for economic loss and emotional distress arising out of a failure to protect such information. In addition, such incidents could create a negative public perception of our operations, systems or brand, which may in turn decrease customer and market confidence and materially and adversely affect our business, operating results and financial condition. Moreover, any loss, leakage, alteration or falsification of confidential information, or any malfunction or failure of our information systems, may result in significant disruptions to our business operations or plans or may require us to incur significant financial, human and other resources to implement corrective measures or enhance our information systems and information management policies and procedures. Our operations are highly dependent on our information, communications and transaction management systems and are subject to an increasing risk of cyber-attacks and other information security threats and to changes in the business and regulatory environment. Our information, communications and transaction management systems, which include not only our own proprietary systems but also those third-party systems that are provided for our use or to which our systems are connected, constitute a core infrastructure for our operations. The proper functioning of our information, communications and transaction management systems is critical to our ability to efficiently and accurately process a large volume of transactions, ensure adequate internal controls, appropriately manage various risks, and otherwise service our clients and customers, particularly in the current business environment with increasing dependence on remote or online networks and our strategy to promote digitization. Cyber-attacks, unauthorized access and computer viruses are becoming increasingly more sophisticated and more difficult to predict, detect and prevent. For instance, our bank internal financial transaction systems or automatic teller machines may become the target of cyber-attacks for monetary gain and other purposes, and our bank internal information systems have in the past, and may in the future, become the target of confidential information theft. In addition, our websites or customer internet banking systems have in the past, and may in the future, become the target of cyber-attacks for political, geopolitical and other purposes. These cyber threats, including through use of artificial intelligence, or AI, quantum technology, and other emerging or new technologies, as well as our failure to appropriately and timely anticipate and deal with such threats, system and human errors, inability of third-party telecommunications, cloud and other service providers and vendors to maintain required services, vulnerabilities and other issues associated with open-source software, external library and other software supply chains, and changes associated with emerging or new technologies such as AI and quantum technology, or in response to industry, regulatory and other developments, could cause disruptions to, and malfunctions of, information, communications and transaction management systems and result in fraud, including identity theft and bypassing of verification controls, or other misconduct, unauthorized transactions, unintended releases of confidential and proprietary information stored in or transmitted through the systems, interruptions in the operations of our clients, customers, counterparties and service providers, and deterioration in our ability to service our clients and customers. In addition, our banking and other transaction management systems may not meet all applicable business and regulatory requirements in an environment where such requirements are becoming increasingly sophisticated and complicated. Furthermore, our system development or improvement projects, many of which are critical to our ability to operate in accordance with market and regulatory standards and some of which we are required to implement in conjunction with upgrades made to interbank or other third-party systems to which our systems are connected, may not be completed as planned due to the complexity and other difficulty relating to such projects or uncertainty and unpredictability surrounding governmental policy-making and regulatory developments relating to AI, quantum technology, digital assets, and other products and services using blockchain and other emerging or new technologies. Moreover, our cybersecurity risk management framework and practices may be found inadequate, particularly in light of expanding regulatory requirements and growing market expectations, including those relating to incident reporting and risks associated with our use of third-party services and systems. These consequences could result in financial losses, including costs and expenses incurred in connection with countermeasures and improvements as well as compensation to affected parties, lead to regulatory actions, diminish our clients’ and customers’ satisfaction with and confidence in us, and harm our reputation in the market, which could in turn adversely affect our business, financial condition and results of operations. Moreover, significant financial, human and other resources may be required to design, implement and enhance measures to manage cyber and information security risks and comply with regulatory requirements. 14 Table of Contents Transactions with counterparties in countries designated by the U.S. Department of State as state sponsors of terrorism may lead some potential customers and investors in the United States and other countries to avoid doing business with us or investing in our securities. We, through our subsidiaries, engage in limited business activities with entities in or affiliated with Iran, including transactions with counterparties owned or controlled by the Iranian government, and our commercial banking subsidiary has a representative office in Iran for information gathering purposes only. The U.S. Department of State has designated Iran and other countries as “state sponsors of terrorism,” and U.S. law generally prohibits U.S. persons from doing business with such countries. We currently have limited business activities conducted with entities in or affiliated with such countries. Such business activities are conducted in accordance with our policies and procedures designed to ensure compliance with regulations applicable in the jurisdictions in which we operate and with exemptions and general licenses available under U.S. law. We have transactions with counterparties in or affiliated with countries designated as state sponsors of terrorism which consist of receiving deposits or holding assets on behalf of individuals residing in Japan who are citizens of countries designated as state sponsors of terrorism and processing payments to or from entities in or affiliated with these countries on behalf of our customers. These transactions do not have a material impact on our business or financial condition. For a further discussion of transactions required to be disclosed under the U.S. Iran Threat Reduction and Syria Human Rights Act of 2012, see “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—United States—Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934.” We are aware of initiatives by U.S. governmental entities and non-government entities, including institutional investors such as pension funds, to adopt or consider adopting laws, regulations or policies prohibiting transactions with or investment in, or requiring divestment from, entities doing business with Iran and other countries identified as state sponsors of terrorism. It is possible that such initiatives may result in our being unable to gain or retain entities subject to such prohibitions as customers, counter-parties or investors in our securities. In addition, depending on socio-political developments, our reputation may suffer due to our transactions with counterparties in or affiliated with these countries. The above circumstances could have an adverse effect on our business and financial condition. Global financial institutions, including us, have become subject to an increasingly complex set of sanctions laws and regulations in recent years, and this regulatory environment is expected to continue. Moreover, the measures proposed or adopted vary across the major jurisdictions, increasing the cost and resources necessary to design and implement an appropriate global compliance program. The U.S. federal government and some state governments in the United States have enacted legislation designed to limit economic and financial transactions with Iran by limiting the ability of financial institutions that may have engaged in any one of a broad range of activities related to Iran to conduct various transactions in the relevant jurisdictions. In addition, in May 2018, the United States withdrew from participation in the Joint Comprehensive Plan of Action. Under subsequently issued executive orders, the United States may impose secondary sanctions against non-U.S. persons who engage in or facilitate a broad range of transactions and activities involving Iran. The Japanese government has also implemented a series of measures under the Foreign Exchange and Foreign Trade Act, such as freezing the assets of persons involved in Iran’s sensitive nuclear activities and development of nuclear weapon delivery systems, and our most recently modified policies and procedures take into account the current Japanese regulatory requirements. We continue to implement measures to enhance our policies and procedures to comply with such legislative and regulatory requirements. There remains a risk of potential regulatory action against us, however, if regulators perceive the modified policies and procedures not to be in compliance with applicable legislation and regulations. Legal and regulatory changes could have a negative impact on our business, financial condition and results of operations. As a global financial services provider, our business is subject to ongoing changes in laws, regulations, rules, policies, accounting standards or methods, voluntary codes of practice and interpretations in Japan and other markets where we operate. Major global financial institutions currently face an increasingly stricter set of laws, regulations and standards as a result of emerging or new technologies, political and geopolitical developments, environmental, social and governance concerns, efforts to combat increasingly sophisticated criminal activity, the increasing importance of ensuring system security, and other concerns enveloping the global financial sector. There is also growing political pressure to demand even greater capital and liquidity requirements and internal compliance and risk management systems following several high-profile scandals and risk management failures in the financial industry. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation.” The laws, regulations and standards that apply to us are often complex and, in many cases, we must make interpretive decisions regarding the application of such laws, regulations and standards to our business activities. Future developments or changes in laws, regulations, rules, policies, accounting standards or methods, voluntary codes of practice, interpretations and their effects are expected to require greater capital, human and technological resources as well as significant management attention, and may require us to modify our business strategies and plans. We may be unable to enhance our compliance management programs and systems, which, in some cases, are supported by third-party service providers, as required or planned. Our failure or inability to comply fully with applicable laws and regulations may lead to penalties, fines, public reprimands, damage to our reputation, issuance of business improvement and other administrative orders, enforced suspension of operations, our inability to obtain regulatory approvals for future strategic initiatives or, in extreme cases, withdrawal of authorization to operate, adversely affecting our business and results of operations. 15 Table of Contents Because of our loans to consumers and our shareholdings in companies engaged in consumer lending, changes in the business or regulatory environment for consumer finance companies in Japan may further adversely affect our financial results. We have a large loan portfolio in the consumer lending industry as well as large shareholdings in subsidiaries and equity method investees in the consumer finance industry. Our domestic loans to consumers amount to approximately one-tenth of our total outstanding loans. Of this amount, the consumer loans provided by Mitsubishi UFJ NICOS, Co., Ltd., which is our primary consumer financing subsidiary, were ¥557.5 billion as of March 31, 2026, compared to ¥498.7 billion as of March 31, 2025. Mitsubishi UFJ NICOS’s consumer loan portfolio has been adversely affected by a series of legislative reforms and judicial decisions that were put in place in Japan through 2010, which have negatively affected the domestic consumer lending industry. These legal developments effectively reduced the maximum rate of interest that may be charged on consumer loans from 29.2% per annum to 15 to 20% per annum depending on the amount of loan principal, while leaving interest payments previously made in excess of the reduced maximum permissible interest rate, which is commonly referred to as “gray-zone interest,” generally recoverable. Following these legal developments and other industry developments, Mitsubishi UFJ NICOS revises its estimate of allowance for repayment of excess interest by updating management’s future forecast semi-annually to reflect updated reimbursement claims information and other data. As of March 31, 2024, 2025 and 2026, we had ¥7.1 billion, ¥5.4 billion and ¥11.4 billion of allowance for repayment of excess interest, respectively. These developments have adversely affected, and these and any future developments may further adversely affect, the operations and financial condition of our subsidiaries, equity method investees and borrowers which are engaged in consumer lending, which in turn may affect the value of our related shareholdings and loan portfolio. For further information, See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan.” Damage to our reputation could harm our businesses. We are one of the leading financial institutions in Japan and one of the handful of G-SIBs in the world, and we aim to be the world’s most trusted financial group. Our ability to conduct business is indispensably dependent on the trust and confidence of our customers as well as local and international communities. Our reputation is critical in maintaining our relationships with stakeholders, including customers, investors, regulators, workforce, and the general public. If our reputation is damaged by negative perceptions of us, particularly in the rapidly changing and increasingly diversifying regulatory and market environment in which we operate, it may result in impairment of our corporate brand, loss of our existing or prospective customers or investors, or increased public or regulatory scrutiny, and may adversely affect our business, financial condition, and results of operations. We are exposed to risks arising from our reliance upon third party vendors and service providers. We engage in a wide array of financial and other related operations both domestically and internationally, relying on services and systems of external third-party vendors and service providers for our provision of various financial services, development and maintenance of our various systems, and certain other operations, while outsourcing certain operations to third-party vendors and service providers. We expect to become increasingly reliant on third-party vendors and service providers amid the recent rapid advancement of digitalization. Our measures designed to manage risks associated with such vendors and service providers, including through the implementation of measures designed to assess and monitor third party risks in accordance with internal rules adopted for third party risk management, may not effectively prevent or timely remediate all adverse consequences resulting from such risks. Incidents such as cyber-attacks affecting third parties as well as information leakage, unauthorized use of data, failure to comply with laws and regulations, and other misconduct on the part of a third party may result in a loss of confidence in us, our becoming subject to regulatory sanctions, or our incurring additional costs to deal with the consequences of these incidents. Furthermore, our operations may be adversely affected by a failure of a third party’s system or unavailability of or delay in a third party’s services resulting from a natural disaster or other causes. We are exposed to risks related to the development and use of AI by us and others. We continue to develop, make available to customers, and use AI for customer service improvement, operations optimization, risk management enhancement and other increasingly broader purposes and in increasingly sophisticated and complex manners. Although we have established and implemented, and continue to enhance, a controls framework and other measures designed to ensure appropriate, reliable and secure use of AI, these measures may not be sufficient to fully mitigate all risks associated with AI. For example, such risks include inaccurate, inappropriate or biased outputs generated through the use of AI, as well as unintended or undetected faulty decision-making or processing resulting from improper use or management of, and other causes associated with, AI. Additionally, data exfiltration or leakage, infringement of rights of others, cyber-attacks and other incidents involving improper use or misuse of AI technologies may occur due to issues associated with training data for, input information into or output information from, AI tools we use, or AI models, systems or services provided by third party vendors. Furthermore, we may become increasingly more reliant on a limited number of third party vendors, cloud infrastructures, or models for our AI tools and, as a result, our business and systems operations may become significantly more vulnerable to disruptions and other problems caused by incidents adversely 16 Table of Contents affecting such vendors, infrastructures and models. In addition, laws, regulations, guidelines, and supervisory expectations relating to AI may continue to develop and evolve in ways that vary and can also be inconsistent within and across jurisdictions. Due to such regulatory uncertainty, we may be unable to timely and adequately respond to changes in the regulatory environment. As a result of any of the foregoing factors, we may be exposed to increased risks related to improper decision-making, data loss and information leakage, infringement of rights of others, system failures, cyber-attacks, reliance on third party vendors, including vendor concentration and irreplaceability, and regulatory changes, which may have a material and adverse impact on our business, financial condition, and operating results. Risks Related to Owning Our Shares It may not be possible for investors to effect service of process within the United States upon us or our directors or management members, or to enforce against us or those persons judgments obtained in U.S. courts predicated upon the civil liability provisions of the U.S. federal or state securities laws. We are a joint stock company incorporated under the laws of Japan. Almost all of our directors or management members reside outside the United States. Many of our assets and the assets of these persons are located in Japan and elsewhere outside the United States. It may not be possible, therefore, for U.S. investors to effect service of process within the United States upon us or these persons or to enforce, against us or these persons, judgments obtained in the U.S. courts predicated upon the civil liability provisions of the U.S. federal or state securities laws. We believe there is doubt as to the enforceability in Japan, in original actions or in actions brought in Japanese courts to enforce judgments of U.S. courts, of claims predicated solely upon the U.S. federal or state securities laws mainly because the Civil Execution Act of Japan requires Japanese courts to deny requests for the enforcement of judgments of foreign courts if foreign judgments fail to satisfy the requirements prescribed by the Civil Execution Act, including: •the jurisdiction of the foreign court be recognized under laws, regulations, treaties or conventions; •proper service of process be made on relevant defendants, or relevant defendants be given appropriate protection if such service is not received; •the judgment and proceedings of the foreign court not be repugnant to public policy as applied in Japan; and •there exist reciprocity as to the recognition by a court of the relevant foreign jurisdiction of a final judgment of a Japanese court. Judgments obtained in the U.S. courts predicated upon the civil liability provisions of the U.S. federal or state securities laws may not satisfy these requirements. Risks Related to Owning Our American Depositary Shares As a holder of American Depositary Shares, you have fewer rights than a shareholder of record in our shareholder register since you must act through the depositary to exercise these rights. The rights of our shareholders under Japanese law to take actions such as voting, receiving dividends and distributions, bringing derivative actions, examining our accounting books and records and exercising appraisal rights are available only to shareholders of record. Because the depositary, through its custodian, is the record holder of the shares underlying the American Depositary Shares, or ADSs, only the depositary can exercise shareholder rights relating to the deposited shares. ADS holders, in their capacity, will not be able to directly bring a derivative action, examine our accounting books and records and exercise appraisal rights. We have appointed The Bank of New York Mellon as depositary, and we have the authority to replace the depositary. Pursuant to the deposit agreement among us, the depositary and a holder of ADSs, the depositary will make efforts to exercise voting or any other rights associated with shares underlying ADSs in accordance with the instructions given by ADS holders, and to pay to ADS holders dividends and distributions collected from us. However, the depositary can exercise reasonable discretion in carrying out the instructions or making distributions, and is not liable for failure to do so as long as it has acted in good faith. Therefore, ADS holders may not be able to exercise voting or any other rights in the manner that they had intended, or may lose some or all of the value of the dividends or the distributions. Moreover, the depositary agreement that governs the obligations of the depositary may be amended or terminated by us and the depositary without ADS holders’ consent, notice, or any reason. As a result, ADS holders may be prevented from having the rights in connection with the deposited shares exercised in the way ADS holders had wished or at all. ADS holders are dependent on the depositary to receive our communications. We send to the depositary all of our communications to ADS holders, including annual reports, notices and voting materials, in Japanese. ADS holders may not receive all of our communications with shareholders of record in our shareholder register in the same manner or on an equal basis. In addition, ADS holders may not be able to exercise their rights as ADS holders due to delays in the depositary transmitting our shareholder communications to ADS holders. For a detailed discussion of the rights of ADS holders and the terms of the deposit agreement, see Exhibit 2(c) to this Annual Report. 17 Table of Contents

A.History and Development of the Company MUFG is a bank holding company incorporated as a joint stock company (kabushiki kaisha) under the Companies Act of Japan. We are the holding company for MUFG Bank, Ltd. (formerly, The Bank of Tokyo-Mitsubishi UFJ, Ltd.), Mitsubishi UFJ Trust and Banking Corporation, Mitsubishi UFJ Securities Holdings Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Mitsubishi UFJ NICOS Co., Ltd., Mitsubishi UFJ Asset Management Co., Ltd., and other companies engaged in a wide range of financial businesses. On April 2, 2001, The Bank of Tokyo-Mitsubishi, Ltd., Mitsubishi Trust and Banking Corporation, or Mitsubishi Trust Bank, and Nippon Trust and Banking Co., Ltd. established Mitsubishi Tokyo Financial Group, Inc., or MTFG, to be a holding company for the three entities. Before that, each of the banks had been a publicly traded company. On April 2, 2001, through a stock-for-stock exchange, they became wholly-owned subsidiaries of MTFG, and the former shareholders of the three banks became shareholders of MTFG. Nippon Trust and Banking was later merged into Mitsubishi Trust Bank. On June 29, 2005, the merger agreement between MTFG and UFJ Holdings, Inc. was approved at the general shareholders meetings of MTFG and UFJ Holdings. As the surviving entity, MTFG was renamed “Mitsubishi UFJ Financial Group, Inc.” The merger of the two bank holding companies was completed on October 1, 2005. On September 30, 2007, Mitsubishi UFJ Securities Holdings, which was then called “Mitsubishi UFJ Securities Co., Ltd.,” or MUS, became our wholly-owned subsidiary through a share exchange transaction. On October 13, 2008, we formed a global strategic alliance with Morgan Stanley and, as part of the alliance, made an equity investment in Morgan Stanley in the form of convertible and non-convertible preferred stock, and subsequently appointed a representative to Morgan Stanley’s board of directors. On October 21, 2008, we completed a tender offer for outstanding shares of ACOM CO., LTD. common stock, raising our ownership in ACOM to approximately 40%. On November 4, 2008, Bank of Tokyo-Mitsubishi UFJ completed the acquisition of all of the shares of common stock of UnionBanCal Corporation, or UNBC, not previously owned by Bank of Tokyo-Mitsubishi UFJ and, as a result, UNBC became a wholly-owned indirect subsidiary of MUFG. On May 1, 2010, we and Morgan Stanley integrated our securities and investment banking businesses in Japan into two joint venture securities companies, one of which is Mitsubishi UFJ Morgan Stanley Securities. Mitsubishi UFJ Morgan Stanley Securities was created by spinning off the wholesale and retail securities businesses conducted in Japan from Mitsubishi UFJ Securities Holdings and subsequently assuming certain operations in Japan from a subsidiary of Morgan Stanley. On June 30, 2011, we converted all of our Morgan Stanley’s convertible preferred stock into Morgan Stanley’s common stock, resulting in our holding approximately 22.4% of the voting rights in Morgan Stanley. Further, we appointed a second representative to Morgan Stanley’s board of directors on July 20, 2011. Following the conversion on June 30, 2011, Morgan Stanley became our equity-method affiliate. As of March 31, 2026, we held approximately 23.9% of the voting rights in Morgan Stanley and had two representatives appointed to Morgan Stanley’s board of directors. We and Morgan Stanley continue to pursue a variety of business opportunities in Japan and abroad in accordance with the global strategic alliance. On December 18, 2013, we acquired approximately 72.0% of the total outstanding shares of Krungsri through Bank of Tokyo-Mitsubishi UFJ. As a result of the transaction, Krungsri has become a consolidated subsidiary of Bank of Tokyo-Mitsubishi UFJ. On July 1, 2014, we integrated Bank of Tokyo-Mitsubishi UFJ’s operations in the Americas region with UNBC’s operations and changed UNBC’s corporate name to “MUFG Americas Holdings Corporation.” On the same day, Union Bank, N.A., which was MUFG Americas Holdings’ principal subsidiary and our primary operating subsidiary in the United States, was also renamed “MUFG Union Bank, N.A.” On July 1, 2016, MUFG Americas Holdings was designated as our U.S. intermediate holding company to comply with the FRB’s enhanced prudential standards. On January 5, 2015, Bank of Tokyo-Mitsubishi UFJ integrated its Bangkok branch with Krungsri through a contribution in kind of the Bank of Tokyo-Mitsubishi UFJ Bangkok branch business to Krungsri, and Bank of Tokyo-Mitsubishi UFJ received newly issued shares of Krungsri common stock. As a result of this transaction, Bank of Tokyo-Mitsubishi UFJ’s ownership interest in Krungsri increased to 76.9%. On October 1, 2017, we acquired all of the shares of common stock of Mitsubishi UFJ NICOS which we did not previously own and, as a result, Mitsubishi UFJ NICOS became a wholly-owned subsidiary of MUFG. 18 Table of Contents On December 29, 2017, Bank of Tokyo-Mitsubishi UFJ initially acquired 19.9% of the shares of common stock of PT Bank Danamon Indonesia, Tbk. On May 1, 2019, MUFG Bank, Ltd. completed a series of transactions to increase its ownership interest in Bank Danamon to 94.1%, as a result of which Bank Danamon became MUFG Bank’s consolidated subsidiary. On April 1, 2018, we changed Bank of Tokyo-Mitsubishi UFJ’s corporate name to “MUFG Bank, Ltd.” On August 2, 2019, Mitsubishi UFJ Trust and Banking completed its acquisition of 100% of the shares in each of nine subsidiaries of Colonial First State Group Limited which collectively represent the global asset management business known as Colonial First State Global Asset Management, or CFSGAM, from Australian financial group Commonwealth Bank of Australia and its wholly-owned subsidiary Colonial First State Group Limited. As a result of the acquisition, the nine subsidiaries became our consolidated subsidiaries. In September 2019, CFSGAM was rebranded as First Sentier Investors and, in July 2025, was rebranded as First Sentier Group. On April 2, 2021, Mitsubishi UFJ NICOS announced a plan to integrate its credit card settlement systems that have been maintained separately for various credit card brands. Specifically, the plan is to integrate the systems used for the DC credit card brand and the NICOS credit card brand into the system used for the MUFG credit card brand. As of December 2025, the integration of the systems for the MUFG credit card brand and the DC credit card brand was completed, and the integration of the system for the NICOS credit card brand is ongoing. The plan has an estimated aggregate budget of approximately ¥140 billion through the end of calendar year 2030. The plan may be modified to flexibly respond to changes in the business environment. On December 1, 2022, MUFG Americas Holding completed the transfer of all of the shares in MUFG Union Bank to U.S. Bancorp. On February 3, 2023, MUFG announced a plan to build a new MUFG Headquarters Building at the location where the MUFG and MUFG Bank head office building stood previously in order to accommodate the head office functions of the holding company, the commercial bank, the trust bank, and the securities company of the MUFG Group in one location. This plan is currently allocated a budget of approximately ¥209 billion through the planned completion in October 2030, subject to adjustments due to changes in relevant circumstances such as rising prices. On April 1, 2024, Mitsubishi UFJ Trust and Banking transferred 100% of the shares in Mitsubishi UFJ Asset Management Co., Ltd. to MUFG as a dividend. As a result of the transaction, Mitsubishi UFJ Asset Management has become a directly held, wholly owned subsidiary of MUFG. Mitsubishi UFJ Asset Management was formed through the merger between Mitsubishi UFJ Kokusai Asset Management Co., Ltd. and MU Investments Co., Ltd. on October 1, 2023. Our registered address is 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8330, Japan, and our telephone number is 81-3-3240-8111. 19 Table of Contents B.Business Overview We are one of the world’s largest and most diversified financial groups with total assets of ¥425.58 trillion as of March 31, 2026. The Group is comprised of MUFG Bank, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Morgan Stanley Securities (through Mitsubishi UFJ Securities Holdings), Mitsubishi UFJ NICOS, Mitsubishi UFJ Asset Management Co., Ltd., and other subsidiaries and affiliates, for which we are the holding company. As a bank holding company, we are regulated under the Banking Act of Japan. Our services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management, leasing and many more fields of financial services. As of March 31, 2026, the Group had the largest overseas network among Japanese banks, consisting of approximately 2,000 business locations in more than 41 countries, domestic and overseas, including Krungsri in Thailand and Bank Danamon in Indonesia. MUFG’s role as the holding company is to strategically manage and coordinate the activities of our business groups. Group-wide strategies are determined by the holding company and executed by our subsidiaries. Medium-Term Business Plan Japan faces structural challenges such as a declining birth rate, an aging society and a shrinking population. At the same time, AI and other digital technologies have been rapidly developing and penetrating our daily lives, and the social and economic structures are being transformed through such new technologies and increasingly more sophisticated use of data, while work style and values are becoming more diverse. Our business environment is impacted by these accelerating megatrends and is changing significantly amid the growing fragmentation manifested in heightened geopolitical conflicts as well as changes in monetary policies, economic conditions and financial markets, including inflation and rising Japanese yen interest rates. We seek to meet these changes through effective utilization of our ability to facilitate “connections,” leveraging our extensive network and diverse solutions. By seizing the opportunity presented by changes surrounding MUFG’s business through the current Medium-term Business Plan for the three-year period ending March 31, 2027, we seek to pursue and achieve growth. Through this Plan, we will continue to strive to meet expectations of all of our stakeholders—including customers, shareholders and employees—by achieving higher profitability and improved return on equity, while remaining “committed to empowering a brighter future.” The descriptions of our Medium-term Business Plan below contain forward-looking statements reflecting our current intent, plans, targets, beliefs or expectations and are subject to risks, uncertainties and assumptions. See “Forward-Looking Statements” and “Item 3.D. Key Information—Risk Factors.” Fundamental Direction In our current Medium-term Business Plan, building on the strategic initiatives launched in accordance with our previous Medium-term Business Plan, we intend to focus on both growth strategies and efforts to facilitate social and environmental solutions through transformation and innovation. Accordingly, the current Medium-term Business Plan is built on three strategic pillars—(1) expand and refine growth strategies, (2) accelerate transformation and innovation, and (3) drive social and environmental progress. In this era of accelerating changes and increasing division and disconnect, we aspire to maximize our ability to innovate and connect, to produce economic and social value as we continue to strive to fulfill our commitment to empowering a brighter future. We consider this commitment to be the most fundamental purpose of our existence, defining our values and vision, to be shared among all of us as "MUFG Way." 20 Table of Contents Promoting Key Strategies In order to pursue and achieve growth under the current Medium-term Business Plan, based on the three strategic pillars described above, we have formulated key strategies and identified priority issues under each pillar. To “Expand & Refine Growth Strategies,” in Japan, we will aim to maximize customer life-time value by strengthening our retail customer base, while enhancing the succession business through a “corporate x wealth management” business model. Overseas, we will strive for higher profitability by evolving our Global Corporate & Investment Banking (GCIB) and Global Markets (GM) integrated business model, and seek to seize opportunities arising from Asia’s economic growth by strengthening our collaboration with subsidiary and partner banks. In addition, we will seek to enhance value provided to customers and strengthen our business foundations through initiatives to contribute to making Japan a leading asset management center and through value chain support in green transformation, while also taking on the challenge of building a new business portfolio for medium- to long-term growth. To “Drive Social & Environmental Progress,” recognizing that pursuing social value together with economic value is key to enhancing corporate value, we have identified ten priority issues under three areas: “Sustainable society,” “Vibrant society,” and “Resilient society,” and we will seek to promote initiatives to address these issues. To “Accelerate Transformation & Innovation,” we will strive to accelerate transformation of our corporate culture, including increasing agility, expand our human capital investment, increase our system development capacity, and enhance our AI/data infrastructure, while further improving our risk management and compliance. 21 Table of Contents A. Expand & Refine Growth Strategies Key strategies Key initiatives Strengthen domestic retail customer base •Improve customer satisfaction by enhancing customer experience. By building long-term business relationships, maximize customer life-time value. Strengthen corporate x wealth management (WM) business •Offer diverse solutions through both corporate and individual customer-based approaches. Evolve Global Corporate & Investment Banking-Global Markets integrated business model •Pursue higher capital efficiency through GCIB-GM integrated business model through, e.g., collaboration between the primary market functions and the sales & trading functions, cross-selling, and strengthening distribution. Strengthen APAC business and platform resilience •Construct resilient platforms in Asia by strengthening collaboration with subsidiary and partner banks and expanding initiatives on “cultivate Asia x digital” aimed at seizing opportunities arising from Asia’s expanding financial needs through investment in digital financial business. Contribute to making Japan a leading asset management center •Assist customers in building more prosperous lives by promoting investment and supporting asset formation throughout the investment chain, contributing to making Japan a leading asset management center. Support value chain in green transformation •Promote green transformation, or GX, investment among customers by proposing solutions to customers’ issues that go beyond financing, such as co-creation of GX projects and support for transitions. Challenge to build a new business portfolio •Cultivate a business portfolio characterized by both high growth and high profitability through the development of new business areas and innovative business models incorporating customer and societal issues and advances in new technologies. B.Drive Social & Environmental Progress Priority issues Main initiatives Sustainablesociety Achievement of carbon neutral society Accelerating engagement and support for energy transition Natural capital and biodiversity restoration Providing solutions for reducing dependency and impact on nature Promoting of circular economy Supporting technology and investment for transition to circular economy Vibrant society Industry development and innovation support Providing funding for growth and expand scope of asset management Response to aging population and low birthrate Supporting asset and business succession, promoting investment and asset building Increasing access to financial services Providing services to linked to everyday needs and contributing to financial inclusion Management focusing on human capital Creating a workplace focused on holistic well-being where employees are empowered to thrive Resilientsociety Respect for human rights Strengthening human rights due diligence throughout supply chain Ensuring secure and safe services Strengthening cybersecurity measures and operational resilience Demonstration of robust corporate governance Business operations that make every effort to serve customers’ best interests 22 Table of Contents C.Accelerate Transformation & Innovation Key strategies Key initiatives Accelerate transformation to be more agile •Facilitate transformation to instill a corporate culture in which people think, decide, and act independently, and do so swiftly. Expand human capital investment •Accelerate synchronization of human capital strategies with business strategies, with each employee working actively and vigorously with a high degree of professionalism, to become a global financial group that contributes to customers and society. Increase system development capacity •Strive to increase system development capacity in preparation for the planned increase in system investment, and aim to increase the amount and ratio of investment in strategic projects. Enhance AI/data infrastructure •Promote data utilization by enhancing AI promotion functions and business intelligence.•Enhance technological research capacity through the use of new technologies such as generative AI and improved intelligence. 23 Table of Contents MUFG’s Approach to Sustainability We believe the following sustainability-related risks and opportunities as matters that could reasonably be expected to affect the prospects of the MUFG Group: •climate-related risks and opportunities; •human capital-related opportunities; •cybersecurity-related risks; and •business ethics (compliance)-related risks. Our approach to sustainability is an integrated one through which we seek to incorporate into our business strategy our efforts to contribute to social and environmental progress in compliance with all applicable laws and to the extent we deem appropriate. We seek to address sustainability-related issues by creating business opportunities while carefully managing the associated risks. We prepare certain sustainability-related disclosures, including the disclosure below, with reference to the sustainability-related disclosure standards developed by the Sustainability Standards Board of Japan, or SSBJ, which, according to the SSBJ, are intended to align with the sustainability disclosure standards developed by the International Sustainability Standards Board. For information regarding our cybersecurity-related governance and risk management, see “Item 16K. Cybersecurity.” For information regarding our business ethics (compliance)-related governance and risk management, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Compliance,” “Item 16B. Code of Ethics” and “Item 16J. Insider Trading Policies.” For information on our overall governance framework, see “Item 6. Directors, Senior Management and Employees.” For information on our overall risk management framework, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk.” Governance (1) Climate Climate-related matters are primarily managed by the Executive Committee with various management sub-committees under the oversight of the Board of Directors. The Sustainability Committee, which is a sub-committee of the Executive Committee and is chaired by the Chief Sustainability Officer, regularly deliberates and determines policies for addressing climate-related matters, including climate-related risks and opportunities, and monitors our progress on related initiatives. The Sustainability Committee reports to the Executive Committee and, as necessary, also to the Board of Directors. A global group-wide working-level project team has been established to strategize and monitor implementation of plans and measures designed to manage risks and achieve the targets and goals for climate-related initiatives determined by the Sustainability Committee through internal working groups, each responsible for a specialized area of focus. (2) Human Capital Basic policies and key strategies related to human resources are discussed at, and shared as appropriate between, the Human Resources Management Meeting, a sub-group of the Executive Committee in which the Group CEO, the Group Chief Human Resources Officer, and other key management members participate, and the Sustainability Committee under the oversight of the Board of Directors. Each MUFG subsidiary considers specific personnel measures and initiatives under the oversight of the director in charge of human resources at each subsidiary based on the basic policies and key strategies determined at the holding company level in a manner informed by the distinct needs and laws of different jurisdictions. The progress on each strategy is reported to, and deliberated and evaluated by, the Human Resources Management Meeting, the Sustainability Committee, and the Executive Committee, and shared with each other and with the Board of Directors as appropriate. Risks & Opportunities (1) Climate We have identified the four categories of risk in the table below as climate-related risks that could reasonably be expected to affect the MUFG Group’s prospects. 24 Table of Contents Risk Type Risk Category Description Transition risk Credit risk A negative effect on our corporate customers' business activities and financial positions due to their inability to deal with government policies, regulatory requirements, customer requests, or evolving trends in technological developments. Transition risk Operational (legal and regulatory, etc.) risk Risk of our failing to comply with climate-related regulations related to sustainable finance, sustainability disclosures and other matters, and being subject to administrative actions, including monetary penalties, litigation and other consequences. Transition risk Franchise risk Deterioration of our franchise value resulting from external stakeholders assessing our carbon neutrality plans and initiatives as inappropriate or insufficient. Deterioration of our franchise value, and adverse effects on our human capital management, resulting from our relationships with business partners whose environmental considerations are deemed insufficient or from delays in our own transition. Physical risk Credit risk Direct damage to assets held by our corporate customers due to extreme weather and negative spillover effects on their business activities and financial position through indirect impacts on their supply chains. We have also identified the following opportunity as a climate-related opportunity that could reasonably be expected to affect the MUFG Group’s prospects. Opportunity Type Description Climate-related business, including finance Enhancing our understanding of new needs and issues of customers through engagement to support their decarbonization-related activities, and increasing revenue through the provision of solutions, including finance. Our sustainable finance currently consists of the provision of financing, including loans, equity investments in funds, arrangements of project finance and syndicated loans, underwriting of equities and bonds, and financial advisory service, with reference to relevant external standards, such as the Green Loan Principles, the Green Bond Principles and the Social Bond Principles, to businesses that are considered to contribute to the adaptation to and moderation of adverse climate-related developments, as well as fundamental service businesses, including, but not limited to, those involved in basic infrastructure and essential public services. (2) Human Capital With respect to human capital-related opportunities, we view the following four priority considerations in our human capital management as "opportunities" that lead to enhancement of our corporate value: (1) pursuit of professionalism (i.e., securing the necessary quantity and quality of human resources), (2) improvement of engagement (i.e., job satisfaction), (3) building an inclusive culture, and (4) health management (i.e., maintenance and improvement of employees' physical and mental health). Through initiatives to address these considerations, we seek to realize the well-being of employees and strengthen the two pillars of our human capital management, namely, "strengthening business competitiveness" and "fostering a culture of 'challenge and speed.'" Failure to achieve the goals set out for such initiatives may, however, lead to difficulty or inability to enhance our corporate value as we intend. Our human capital management framework may not be sufficient to enable necessary human resources to be recruited, developed, assigned and retained as, when and where appropriate, which, in turn, may adversely affect management’s ability to realize growth and other strategies. (a) Human Resource Development We have formulated MUFG Human Resources Principles as our basic approach to realizing human-capital management based on MUFG Way. Our basic philosophy regarding human resource development is “to provide educational opportunities where each employee can enhance his or her insight and ethical standards as well as his or her knowledge and expertise, and to support the self-motivated career development of employees while at the same time developing diverse professional human resources that can embody MUFG Way.” In order to provide value that exceeds the expectations of society and customers, we intend to accelerate our effort to further synchronize business strategies with human capital management and promote the enhancement of skills and expertise of each employee. (b) Workplace Environment Improvement 25 Table of Contents In order to realize MUFG Way, we are promoting “human capital-oriented management” as a priority issue in our sustainability management. As one of the largest and most diversified global financial groups, we aim to develop a broad talent pool and provide a work environment in which employees can perform at their best. We also seek to help our employees demonstrate their full potential through implementation of measures designed to promote mental and physical health and inclusion. At the same time, we seek to provide a work environment in which employees worldwide can grow and thrive as professionals. In this way, we endeavor to assist our employees in realizing and sustaining their well-being in the medium- and long-term. We have established a personnel system designed to attract and retain necessary human resources and maximize the abilities of our employees. At the same time, we aim to provide compensation that is competitive compared to other companies. Our personnel system is also designed to ensure compliance with laws and regulations in each country and region in which we operate through, for example, regular monitoring and measures to improve working hours. We provide various employee benefits, including asset-building savings schemes, corporate pensions, and stock ownership associations to help our employees with their asset building and financial wellness. Risk Management (1) Climate In order to strengthen our response to risks arising from climate-related developments, climate-related risk management is currently being integrated into our overall risk management framework with an aim to better enable identification, measurement and reduction of climate-related risks and their potential portfolio, business and financial impact from a comprehensive group-wide perspective. Climate-related risks are reported to, and evaluated and deliberated by, the Risk Management Committee, which is a sub-committee of the Executive Committee and is chaired by the Chief Executive Officer. Climate-related risk evaluation and deliberation by the Risk Management Committee are exchanged, as appropriate, with other relevant committees, including the Sustainability Committee. The Risk Committee, which is a committee of the Board of Directors and is chaired by an independent outside director, also receives reports from these committees and evaluates and deliberates on material climate-related matters. Evaluations and deliberations by these committees are shared with the Board of Directors as appropriate. Our risk management framework is intended to address transition risks as well as physical risks. We employ various risk assessment tools, including, for example, scenario analysis with reference to scenario information made available by intergovernmental or industry groups, and make continuous efforts to improve our risk assessment framework. For a discussion of our climate-related risks, see “Item 3.D. Key Information—Risk Factors—Risks Related to Our Business Environment—Climate-related risks could have a material adverse impact on us and our clients.” Credit risk management relating to sustainable finance is currently being integrated into our overall credit risk management framework, where the Credit Committee, which is a sub-committee of the Executive Committee and is chaired by the Chief Risk Officer, deliberates and determines policies for addressing credit risk-related matters and monitors the group-wide credit exposures and credit risk management, and the Credit and Investment Management Committee, which is another sub-committee of the Executive Committee and is chaired by the Chief Executive Officer, is tasked with managing the overall group-wide credit and equity investment portfolios. (2) Human Capital We manage human resource risk by defining it as one of the operational risks. Human resource risk includes, among other things, personnel retention risk and employee morale deterioration risk. These risks are reported to, and evaluated and deliberated by, the Risk Committee, the Risk Management Committee, and the Executive Committee, and shared with the Board of Directors as appropriate. Human resource risk evaluation and deliberation by these committees are exchanged, as appropriate, with other relevant committees, including the Sustainability Committee and the Human Resources Management Meeting. Strategies & Goals (1) Climate In May 2021, we announced our intent to achieve net zero greenhouse gas, or GHG, emissions from our operations by the end of the fiscal year ending March 31, 2031 and net zero GHG emissions from our financed portfolio by the end of calendar year 2050. These goals demonstrate our support for the goals of the Paris Agreement on Climate Change, which has been endorsed by the government of Japan, and our recognition of climate-related risks and opportunities as a top strategic priority for the MUFG Group. We seek to contribute to achieving the Paris Agreement target, including through the realization of carbon neutrality by 2050, support a smooth transition to a decarbonized society through our business operations, and contribute to realizing a sustainable society through 26 Table of Contents a virtuous cycle between the environment and the economy. In line with these targets and goals, we currently have in place various transition strategies. (2) Human Capital (a) Inclusion We are working to create a workplace where our employees can make the most of their abilities. For example, recognizing that raising gender representation in managerial, i.e., line manager (jicho or kacho) or higher, positions in Japan is an urgent issue, in line with relevant policies and initiatives of the government and industry groups in Japan, we are working on the development and promotion of female representation in Japan in the medium and long term. For our three major subsidiaries, MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation, and Mitsubishi UFJ Morgan Stanley Securities Co. Ltd., on a combined basis, we achieved our target as of March 31, 2026 with a result of 26.6% female representation in such positions in Japan, including personnel decisions and transfer instructions finalized on or before March 31, 2026 but implemented thereafter. Under our Medium-term Business Plan, we aim to attain 27.0% for female representation in such positions in Japan on the same basis by the end of the fiscal year ending March 31, 2027. (b) Employee Well Being Recognizing that enhancing engagement is essential for sustained increases in corporate value, we take annual employee surveys as a means to gauge employee engagement (engagement score) and utilize the results to consider and implement various measures. Under our Medium-term Business Plan, we have set a target engagement score on a group-wide basis and intend to make a concerted effort to improve engagement. Uncertainties, Risks & Other Important Notes Our ability to achieve any one or more of the foregoing targets and goals is subject to various uncertainties and risks, which may be beyond our control. If any such uncertainty or risk materializes, we may be unable to achieve our targets and goals. See “Item 3.D. Key Information—Risk Factors—Risks Related to Our Business Environment—Climate-related risks could have a material adverse impact on us and our clients.” and “Item 3.D. Key Information—Risk Factors—Operational Risk—Damage to our reputation could harm our businesses.” Additionally, certain of our disclosures herein are informed by various stakeholder expectations, including third-party sustainability frameworks and are therefore not necessarily material for purposes of our disclosures under federal U.S. securities laws or otherwise. Business Groups Our business groups are organized as follows with an aim to further integrate the expertise and capabilities of our subsidiaries to respond to the needs of our customers more effectively and efficiently. Retail & Digital Business Group The Retail & Digital Business Group focuses on serving retail customers, excluding wealth management customers, in Japan. This business group was formed on April 1, 2024 through the strategic reorganization of the Digital Service Business Group and the Retail & Commercial Banking Business Group. This reorganization was a response to the evolving and diversifying retail customer needs, including the demand for asset management solutions, driven by shifts in the economic and financial landscape. This business group seeks to enable a wider range of retail customers to flexibly utilize MUFG’s diverse service channels. One of the strategic missions of this business group is to expand its touchpoints by optimally mixing the three service channels under the concept of “Real (Face-to-Face) × Remote × Digital” and deliver customer experience that makes its customers think “I’m glad I chose MUFG.” By maximizing customer life-time value (LTV), including through the release of Emut, a new service brand, in June 2025, we aim to further strengthen our retail business. Commercial Banking & Wealth Management Business Group The Commercial Banking & Wealth Management Business Group provides a wide range of financial products and services, including lending, fund settlement, M&A, inheritance, real estate, asset management, and business and asset succession solutions, to meet the diverse needs of not only large enterprises managed by the branches in Japan, but also small and mid-sized enterprises in Japan as well as domestic retail clients in the wealth management segment. 27 Table of Contents Taking into account recent developments in the market and social environments in Japan, such as heightened geopolitical risks, including the situation in the Middle East, the recent gradual transition to a world with interest rates, the declining birthrate and the aging population, advances in new technology such as generative and agentic AI, as well as the Japanese government's policies to encourage investments in startups and promote asset management, we aim to strengthen our business succession and asset succession solutions in the overlapping areas between the corporate commercial banking business and the wealth management business, in addition to the products and services tailored to each of the corporate segment and the wealth management segment. Japanese Corporate & Investment Banking Business Group The Japanese Corporate & Investment Banking Business Group provides a comprehensive suite of services to large Japanese corporate customers pursuing global expansion and corporate value enhancement. Our offerings include lending, fund settlement, and foreign exchange services, as well as integrated investment banking and real estate-related solutions, leveraging the expertise of each group entity. We seek to enhance profitability through strategic pricing to achieve appropriate returns, while further strengthening balance sheet management in response to changes in the interest rate environment and maintaining financial soundness. We also continue to work on the plan to reduce equity holdings as part of our portfolio risk management. Our customers are expanding their business domains to address social issues. Through ongoing engagement, we offer to partner with them to develop new industries and business opportunities. In doing so, we aim to originate and provide financing, thereby contributing to the resolution of social issues. Asset Management & Investor Services Business Group The Asset Management & Investor Services Business Group covers the asset management and investor services businesses of Mitsubishi UFJ Trust and Banking, MUFG Bank and Mitsubishi UFJ Asset Management. The business group offers a full range of asset management and investor 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. We aim to expand our asset management and investor services business by enhancing the quality of our products and services, effectively utilizing the broad customer base of the MUFG Group and improving our operational efficiency through IT technology. Global Corporate & Investment Banking Business Group The Global Corporate & Investment Banking Business Group covers the corporate, investment and transaction banking businesses of MUFG Bank and its subsidiaries, including the overseas securities companies that were previously subsidiaries of Mitsubishi UFJ Securities Holdings. Through a global network of offices and branches, we provide non-Japanese large corporate and financial institution customers with a comprehensive set of solutions that meet their increasingly diverse and sophisticated financing needs. On October 1, 2025, MUFG Bank acquired all of the shares in MUFG Securities EMEA plc, MUFG Securities Asia Limited, and MUFG Securities (Canada), Ltd. previously owned by Mitsubishi UFJ Securities Holdings through a series of internal reorganization transactions, making them MUFG Bank’s wholly owned subsidiaries. Through the integrated business management structure between the Global Corporate & Investment Banking Business Group and the Global Markets Business Group, we aim to offer a wide range of financial services to meet the diverse needs of both corporate and institutional investor customers. The expansion of the global corporate and investment banking and global markets businesses has been an important pillar of the MUFG Group’s growth strategy. We continue to work to strengthen the strategic alignment and collaboration among our group companies and across global geographies in order to best deploy our comprehensive expertise to provide our customers with value-added solutions and services. Corporate Banking Through our global network of offices and branches, we provide a full range of corporate banking solutions, such as project finance, export credit agency finance, and financing through asset-backed commercial paper. Our primary customers include large corporations, financial institutions, sovereign and multinational organizations, and institutional investors that are headquartered outside of Japan. Investment Banking 28 Table of Contents We provide investment banking services such as debt and equity issuance and M&A-related services to help our customers develop their financial strategies and realize their business goals. In order to meet customers’ various financing needs, we have established a customer-oriented coverage model through which our product experts coordinate with one another to offer innovative financing services globally. We have further integrated the management of the operations of our commercial banking and securities subsidiaries to enhance collaboration. We are one of the world’s top providers of project finance, one of the core businesses of the Global Corporate & Investment Banking Business Group. We provide sophisticated professional services in arranging limited-recourse finance and secured finance, and offering financial advice in various sectors, including natural resources, power, and infrastructure, backed by our experience, expertise, knowledge, and global network. Transaction Banking We provide commercial banking products and services for large corporations and financial institutions in managing and processing domestic and cross-border payments, mitigating risks in international trade, and providing working capital optimization. We provide customers with support for their domestic, regional and global trade finance and cash management programs through our extensive global network. Global Commercial Banking Business Group The Global Commercial Banking Business Group provides a comprehensive array of financial products and services such as loans, deposits, fund transfers, investments and asset management services for local retail customers, small and medium-sized enterprises, and corporate customers across the Asia-Pacific region through our major local commercial banking subsidiaries and affiliates outside of Japan referred to as “Partner Banks.” Our Partner Banks include Krungsri in Thailand, Bank Danamon in Indonesia, VietinBank in Vietnam and Security Bank in the Philippines. Additionally, in India, which is another market of strategic importance to MUFG, we have been strengthening our presence through strategic investments, most recently in Shriram Finance Limited in April 2026, as further described below. The network among the Partner Banks, together with our strategic presence in India, covers a vast market, spanning five countries with a total population of approximately two billion. The market is expected to expand further in the medium to long term as the GDP growth rates are expected to remain relatively high in these countries with corresponding financial needs. We believe that our network, which combines the global reach of the MUFG Group companies with strong regional presence of the Partner Banks and other overseas affiliates of MUFG, provides us with unique competitive advantages. We aim to further strengthen the network by promoting business collaboration and enhancing governance. In addition, through continuous strategic investments in business areas such as digital financial services, we seek to contribute to financial inclusion in Asia and capture the business opportunities arising from the economic growth of the region. Bank of Ayudhya Public Company Limited (Krungsri) Krungsri is a strategic subsidiary of MUFG Bank in Thailand. Krungsri provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to retail consumers, small and medium-sized enterprises, and large corporations mainly in Thailand through 556 branches (consisting of 515 banking branches, 40 automobile finance business branches and one overseas branch) and other service outlets nationwide. MUFG owns a 76.88% ownership interest in Krungsri through MUFG Bank as of March 31, 2026. By combining Krungsri’s local franchise with competitive presence in the retail and small and medium-sized enterprise banking markets in Thailand with MUFG Bank’s global financial expertise, we seek to offer a wider range of high-value financial products and services to a more diverse and larger customer base. Krungsri’s consolidated subsidiaries include the largest credit card issuer in Thailand, along with sales finance and personal loan accounts in its portfolio, a major auto finance provider, a fast-growing asset management company and a leading microfinance service provider in Thailand. In addition, in August 2025, Tidlor Holdings Public Company Limited, a leading financial inclusion service provider in Thailand, became a consolidated subsidiary of Krungsri when Krungsri became a 46.51% shareholder with certain shareholder rights. This acquisition aligns with Krungsri’s growth strategy to expand its reach among retail and SME customers and provide an improved customer experience. PT Bank Danamon Indonesia, Tbk. (Bank Danamon) Bank Danamon is a strategic subsidiary of MUFG Bank in Indonesia. Bank Danamon provides a comprehensive range of banking and other financial products and services to retail consumers, small and medium-sized enterprises, and large corporations in Indonesia. It operates an extensive distribution network spread out from Aceh to Papua, with more than 1238 branches and service outlets. 29 Table of Contents Bank Danamon also provides financing for automotive and consumer goods through PT Adira Dinamika Multi Finance Tbk (ADMF), a subsidiary of Bank Danamon. In March 2024, MUFG acquired an 80.6% ownership interest in PT Mandala Multifinance Tbk (MFIN), a multi-finance company in Indonesia, and subsequently increased its ownership interest to 99.3% in August 2024. Following these acquisitions, MUFG merged MFIN into ADMF in October 2025 to deepen the synergies of the acquisitions and enhance innovation and competitiveness by expanding the scale of business, thereby strengthening ADMF’s competitive position and presence in the local market. MUFG made an initial investment in December 2017 and owns a 92.47% ownership interest in Bank Danamon through MUFG Bank as of March 31, 2026. This investment in Bank Danamon represents a milestone for our growth strategy in Indonesia and Southeast Asia. We aim to offer a unique and unparalleled retail and small and medium-sized enterprise banking business model based on the established local networks of our Partner Banks and MUFG’s global network to provide holistic financial services to a wider range of customers. In May 2026, Bank Danamon and MUFG Bank agreed to enter into a memorandum of understanding to explore a potential integration of Bank Danamon and the Jakarta branch of MUFG Bank. The integration, if successfully implemented, is expected to combine the strengths, expertise, and network of both entities to offer financial solutions to a wider spectrum of customers and contribute to the growth of Indonesia’s financial services industry and the Indonesian economy. At this stage, Bank Danamon and MUFG Bank have agreed to commence preparatory work with a view toward entering into a binding agreement at a later date. The integration is expected to take effect within calendar year 2027, while the integration remains subject to further work by Bank Danamon and MUFG Bank as well as approvals from relevant regulatory authorities and Danamon’s shareholders. Other Activities in Southeast Asia In addition to Krungsri and Bank Danamon, we have strategic business and capital alliances with other banks, including VietinBank in Vietnam and Security Bank in the Philippines, as our Partner Banks. VietinBank provides a wide range of financial services to consumers, small businesses, middle-market and large companies through its branch network predominantly in Vietnam. We own a 19.73% equity interest in VietinBank. Security Bank provides a wide range of financial services to consumers, small businesses, middle-market and large companies through its branch network in the Philippines. We own a 20% equity interest in Security Bank. We have been strategically expanding our operations in Southeast Asia with an effort to further develop our businesses abroad in cooperation with our Partner Banks. Also, as part of our strategic investments to capture growth opportunities in the digital finance area, we have completed multiple investments in fintech companies, including Silvrr Technology Co., Ltd. (known as “Akulaku”) in Indonesia, Ascend Money Company Limited in Thailand, and Globe Fintech Innovations, Inc. in the Philippines, with an aim to not only contribute to the economic growth of Asia, but also to create a world where more people can access financial services. Strategic Investment in India — Shriram Finance Limited In April 2026, we acquired 20% of the equity shares, on a fully diluted basis, in Shriram Finance Limited, a non-banking financial company (NBFC) in India. Shriram Finance primarily provides loans for the purchase of and working capital for used commercial and passenger vehicles to micro, small and medium enterprises (MSMEs) and individual business owners in the transportation industry. This investment follows our investment in DMI Finance Private Limited, a non-banking provider of digital financial services in India, in April 2023. We recognize India, which is expected to economically grow further in the future and become the world's third largest GDP by 2030, as another strategically important market alongside Southeast Asia. The investment in Shriram Finance 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. See “Item 5. Operating and Financial Review and Prospects—Recent Developments—Investment in Shriram Finance Ltd. through a Preferential Allotment of Shares.” We consider Asian markets outside Japan as our second major market and, through strategic acquisitions and investments across these markets, we aim to further strengthen and enhance our business platform and will continue striving to contribute to the economic growth of the region. See “Item 3.D. Key Information—Risk Factors—Risks Related to Our Strategies and Our Major Investees—Our strategy to expand the range of our financial products and services and the geographic scope of our business globally may fail if we are unable to anticipate or manage new or expanded risks that entail such global expansion.” Global Markets Business Group 30 Table of Contents The 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 and equities as well as other investment products, and origination and distribution of financial products. The treasury operations include asset and liability management as well as global investments for the MUFG Group. We also make and manage long-term diversified investments as a sustainable revenue source. Customer Business Sales and Trading in Fixed Income Instruments, Currencies and Equities. We provide financing, hedging, and investment solutions to our retail, corporate, institutional, and governmental customers through sales and trading in financial market products such as fixed income instruments, currencies, and equities. Investment Products for Non-Institutional Customers in Japan. We provide investment products such as mutual funds, and structured bonds, notes and deposits to non-institutional customers in Japan. We offer solutions using these investment products to help customers better manage their assets and liabilities. This business is conducted through the integrated operations management structure among the Global Markets Business Group, the Asset Management & Investor Service Business Group, the Commercial Banking & Wealth Management Business Group, and the Japanese Corporate & Investment Banking Business Group. Origination and Distribution. We provide financing solutions to institutional customers through origination and distribution of financial products such as syndicated loans and securities issuances. This business is conducted through the integrated operations management structure between the Global Markets Business Group and the Global Corporate & Investment Banking Business Group. Treasury Operations Asset and Liability Management. We seek to manage interest rate and liquidity risks residing in our balance sheets through, among other things, transactions designed to manage the profit and loss impact attributable to market movements based on our balance sheet analyses and forecasts. Such transactions include investments in high quality liquid securities such as Japanese government bonds and U.S. Treasury bonds and trading in other financial products such as interest rate swaps and cross currency swaps. Global Investment. Through our treasury operations, we also seek to enhance our profitability by diversifying our portfolio and strategically investing in financial products including corporate bonds and funds. Global Strategic Alliance with Morgan Stanley As of March 31, 2026, we held approximately 377 million shares of Morgan Stanley’s common stock representing approximately 23.9% of the voting rights in Morgan Stanley and Series C Preferred Stock with a face value of approximately $521.4 million and 10% dividend. As of the same date, we had two representatives appointed to Morgan Stanley’s board of directors. We adopted the equity method of accounting for our investment in Morgan Stanley beginning with the fiscal year ended March 31, 2012. In conjunction with Morgan Stanley, we formed two securities joint venture companies in May 2010 to integrate our respective Japanese securities companies. We converted the wholesale and retail securities businesses conducted in Japan by Mitsubishi UFJ Securities into Mitsubishi UFJ Morgan Stanley Securities. Morgan Stanley contributed the investment banking operations conducted in Japan by its former wholly-owned subsidiary, Morgan Stanley Japan, to Mitsubishi UFJ Morgan Stanley Securities, and converted the sales and trading and capital markets businesses conducted in Japan by Morgan Stanley Japan into an entity called Morgan Stanley MUFG Securities, Co., Ltd. We hold a 60% economic interest in Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities, and Morgan Stanley holds a 40% economic interest in Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities. We hold a 60% voting interest and Morgan Stanley holds a 40% voting interest in Mitsubishi UFJ Morgan Stanley Securities, and we hold a 49% voting interest and Morgan Stanley holds a 51% voting interest in Morgan Stanley MUFG Securities. Morgan Stanley’s and our economic and voting interests in the securities joint venture companies are held through intermediate holding companies. We have retained control of Mitsubishi UFJ Morgan Stanley Securities and we account for our interest in Morgan Stanley MUFG Securities under the equity method due to our significant influence over Morgan Stanley MUFG Securities. The board of directors of Mitsubishi UFJ Morgan Stanley Securities has fifteen members, nine of whom are designated by us and six of whom are designated by Morgan Stanley. The board of directors of Morgan Stanley MUFG Securities has ten members, six of whom are designated by Morgan Stanley and four of whom are designated by us. The CEO of Mitsubishi UFJ Morgan Stanley Securities is designated by us and the CEO of Morgan Stanley MUFG Securities is designated by Morgan Stanley. We have also expanded the scope of our global strategic alliance with Morgan Stanley into other geographies and businesses, including (1) a loan marketing joint venture that provides clients in the United States with access to the world-class lending and capital markets services from both companies, (2) business referral arrangements in Asia, Europe, the Middle East and Africa, covering capital markets, loans, fixed income sales and other businesses, (3) global commodities referral arrangements whereby MUFG Bank 31 Table of Contents and its affiliates refer clients in need of commodities-related hedging solutions to certain affiliates of Morgan Stanley, and (4) an employee secondment program to share best practices and expertise in a wide range of business areas. In July 2023, we jointly announced with Morgan Stanley the launch of “Alliance 2.0”, an enhanced Global Strategic Alliance for further collaboration between both companies for the next decade and beyond. As part of this alliance, we and Morgan Stanley began to collaborate in the Japanese stock market research and equity businesses for institutional clients in January 2024 and to collaborate in foreign currency exchange trading in April 2024. See “Item 3.D. Key Information—Risk Factors—Risks Related to Our Strategies and Our Major Investees—If our strategic alliance with Morgan Stanley fails, we could suffer financial or reputational loss.” Competition We face strong competition in all of our principal areas of operation. The structural reforms in financial industry regulations and recent developments in financial markets have resulted in some significant changes in the Japanese financial system and prompted banks to merge or reorganize their operations. In addition, development of new technologies such as artificial intelligence and blockchain has also allowed non-financial institutions to enter the financial services industry with alternative services, thus changing the nature of competition from other financial institutions as well as from other types of businesses. See “Item 3.D. Key Information—Risk Factors—Risks Related to Our Strategies and Our Major Investees—Our business may be adversely affected by competitive pressures, which have partly increased due to regulatory changes and recent market changes in the financial industry domestically and globally.” Japan Our major competitors in Japan include: •Japan’s other major banking groups: Mizuho Financial Group and Sumitomo Mitsui Financial Group; •Government financial institutions: Japan Finance Corporation, Japan Post Bank, Development Bank of Japan and Japan Bank for International Cooperation; •Other commercial banking institutions: Resona Bank, SBI Shinsei Bank, regional banks, and credit associations (shinkin banks); •Securities companies and investment banks: Nomura group and Daiwa group; •Other internet-based banking and securities institutions: Rakuten group, SBI group, NTT group and PayPay Corporation; and •Asset management companies. Foreign In foreign markets, we face competition from local and global commercial banks, money center banks, regional banks, thrift institutions, asset management companies, investment advisory companies, credit unions, fintech companies, non-bank lending and credit institutions and other similar financial institutions. The Japanese Financial System Japanese financial institutions may be categorized into three types: •the central bank, namely the Bank of Japan; •private banking institutions; and •government financial institutions. The Bank of Japan The Bank of Japan’s role is to maintain price stability and the stability of the financial system to ensure a solid foundation for sound economic development. Private Banking Institutions 32 Table of Contents Private banking institutions in Japan are commonly classified into two categories (the following numbers are based on information published by the FSA available as of May 26, 2026): •ordinary banks (118 ordinary banks and 57 foreign commercial banks with ordinary banking operations); and •trust banks (13 trust banks, including two Japanese subsidiaries of foreign financial institutions). Ordinary banks in turn are classified as city banks, of which there are four, including MUFG Bank, and regional banks, of which there are 95, and other banks, of which there are 19. In general, the operations of ordinary banks correspond to commercial banking operations in the United States. City banks and regional banks are distinguished based on head office location as well as the size and scope of their operations. The city banks are generally considered to constitute the largest and most influential group of banks in Japan. Generally, these banks are based in large cities, such as Tokyo and Osaka, and operate nationally through networks of branch offices. The city banks provide a wide variety of banking and other financial products and services to large corporate customers, including the major industrial companies in Japan, as well as small and medium-sized companies and retail customers. With some exceptions, the regional banks tend to be much smaller in terms of total assets than the city banks. Historically, each of the regional banks has been based in one of the Japanese prefectures and has extended its operations into neighboring prefectures. Their customers are mostly regional enterprises and local public utilities. Trust banks, including Mitsubishi UFJ Trust and Banking, provide various trust services relating to money trusts, pension trusts and investment trusts and offer other services relating to real estate, stock transfer agency and testamentary services, as well as banking services. Government Financial Institutions There are a number of government financial institutions in Japan, which are corporations wholly owned or majority-owned by the government and operate under the government’s supervision. Their funds are provided mainly from government sources. Certain types of operations undertaken by these institutions have been or are planned to be assumed by, or integrated with the operations of, private corporations through privatizations and other measures. Among them are the following: •The Development Bank of Japan, which was established for the purpose of contributing to the economic development of Japan by extending long-term loans, mainly to primary and secondary sector industries, and which was reorganized as a joint stock company in October 2008 as part of its ongoing privatization process, with the government being required by law to continue to hold 50% or more of the shares in the bank until the completion of certain specified investment operations, which the bank is required to endeavor to achieve by March 2031, and more than one-third for an unspecified period thereafter; •Japan Finance Corporation, which was formed in October 2008, through the merger of the international financial operations of the former Japan Bank for International Cooperation, National Life Finance Corporation, Agriculture, Forestry and Fisheries Finance Corporation, and Japan Finance Corporation for Small and Medium Enterprise, for the primary purposes of supplementing and encouraging the private financing of exports, imports, overseas investments and overseas economic cooperation, and supplementing private financing to the general public, small and medium-sized enterprises and those engaged in agriculture, forestry and fishery. In April 2012, Japan Finance Corporation spun off its international operations to create Japan Bank for International Cooperation as a separate government-owned entity; •Japan Housing Finance Agency, which was originally established in June 1950 as the Government Housing Loan Corporation for the purpose of providing housing loans to the general public, and which was reorganized as an incorporated administrative agency and started to specialize in securitization of housing loans in April 2007; and •The Japan Post Group companies, a group of joint stock companies including Japan Post Bank, which were formed in October 2007 as part of the Japanese government’s privatization plan for the former Japan Post, a government-run public services corporation, which had been the Postal Service Agency until March 2003. In November 2015, approximately 11% of the outstanding shares of each of Japan Post Bank, Japan Post Insurance and Japan Post Holdings were sold to the public, and these companies are currently listed on the Tokyo Stock Exchange. As of March 31, 2026, Japan Post Holdings held 49.90% of the outstanding shares of Japan Post Bank (excluding the treasury shares owned by Japan Post Bank). In June 2025, Japan Post Holdings reduced its shareholding ratio to less than 50% by contributing a part of its shareholding to a share disposal trust. Having notified the Japanese authority of the contribution, Japan Post Bank is no longer required to obtain authorization from the Japanese authority before entering into new businesses. As of March 31, 2026, Japan Post Holdings held 49.75% of the outstanding shares of Japan Post Insurance (excluding the treasury shares owned by Japan Post Insurance). Supervision and Regulation 33 Table of Contents Japan Supervision. The FSA is responsible for supervising and overseeing financial institutions, making policy for the overall Japanese financial system and conducting insolvency proceedings with respect to financial institutions. The Bank of Japan, as the central bank for financial institutions, also has supervisory authority over banks in Japan, based primarily on its contractual agreements and transactions with the banks. The Banking Act. Among the various laws that regulate financial institutions, the Banking Act and its subordinated orders and ordinances are regarded as the fundamental law for ordinary banks and other private financial institutions. The Banking Act addresses capital adequacy, inspections and reporting of banks and bank holding companies, as well as the scope of business activities, disclosure, accounting, limitation on granting credit and standards for arm’s length transactions for them. Bank holding companies, banks and other financial institutions are required to establish an appropriate system to cope with conflicts of interest that may arise from their business operations. The Banking Act and various other financial regulation related laws have recently been amended, including certain deregulations on restrictions for shareholdings by banks. For example, although a bank is generally prohibited from holding more than 5% of the outstanding shares of another domestic company (other than certain financial businesses) under the Banking Act, an amendment to the Banking Act which took effect in April 2017 allows banks to acquire and hold more than 5% of the voting rights in certain financial technology companies if approved by the FSA. An additional amendment to the Banking Act which took effect in June 2018 introduced a framework for affiliation and cooperation between financial institutions and financial technology companies while adding measures designed to ensure customer protection. A further amendment to the Banking Act which took effect in May 2020 allows banks to engage in certain information provision services relating to customer and other information. In addition, an amendment to the Banking Act which took effect in November 2021 allows banks to engage in certain services contributory to the construction of a sustainable society such as regional revitalization or productivity enhancement and allows banks, with the FSA’s approval, to acquire and hold more than 5% of the voting rights in companies which engage in certain services contributory to the construction of a sustainable society such as regional revitalization or productivity enhancement. Bank holding company regulations. A bank holding company is prohibited from carrying out any business other than the management of its subsidiaries and other incidental businesses. A bank holding company may have any of the following as a subsidiary: a bank, a securities company, an insurance company, a foreign subsidiary that is engaged in the banking, securities or insurance business and any company that is engaged in a finance-related business, such as a credit card company, a leasing company, investment advisory company, or financial technology company as permitted by the April 1, 2017 amendments to the Banking Act. Certain companies that are designated by a ministerial ordinance as those that cultivate new business fields may also become the subsidiaries of a bank holding company. In addition, under the April 1, 2017 amendments to the Banking Act, a bank holding company (i) is required to perform certain specified functions as a bank holding company to ensure effective management of its subsidiaries and (ii) is allowed to engage in certain specified common operations of its subsidiaries so as to improve the efficiency of the operations of its group companies. Capital adequacy. The capital adequacy guidelines adopted by the FSA that are applicable to Japanese bank holding companies and banks with international operations closely follow the risk-weighted approach introduced by the Basel Committee on Banking Supervision of the Bank for International Settlements. Basel II, as adopted by the FSA, has been applied to Japanese banks since March 31, 2007. Basel III, as adopted by the FSA, has been applied to Japanese banking institutions with international operations conducted through their foreign offices since March 31, 2013. Basel III is built on “three pillars”: (1) minimum capital requirements, (2) the self-regulation of financial institutions based on supervisory review process, and (3) market discipline through the disclosure of information. The Group of Central Bank Governors and Heads of Supervision reached an agreement on the new global regulatory framework, which has been referred to as “Basel III,” in July and September 2010. In December 2010, the Basel Committee agreed on the details of the Basel III rules. The agreement on Basel III includes the following: (1) raising the quality of capital to ensure banks are able to better absorb losses both on a going concern basis and on a gone concern basis, (2) increasing the risk coverage of the capital framework, in particular for trading activities, securitizations, exposures to off-balance sheet vehicles and counterparty credit exposures arising from derivatives, (3) raising the level of minimum capital requirements, including an increase in the minimum common equity requirement from 2% to 4.5%, which was phased in between January 1, 2013 and the end of the calendar year 2014, and a capital conservation buffer of 2.5%, which was phased in between January 1, 2016 and the end of the calendar year 2018, bringing the total common equity requirement to 7%, (4) introducing an internationally harmonized leverage ratio to serve as a backstop to the risk-based capital measure and to contain the build-up of excessive leverage in the system, (5) raising standards for the supervisory review process (Pillar 2) and public disclosures (Pillar 3), together with additional guidance in the areas of valuation practices, stress testing, liquidity risk management, corporate governance and compensation, (6) introducing minimum global liquidity standards consisting of both a short term liquidity coverage ratio, or LCR, and a longer term structural net stable funding ratio, or NSFR, and (7) promoting the build-up of capital buffers that can be drawn down in periods of stress, including both a capital conservation buffer and a countercyclical buffer to protect the banking sector from periods of excess credit growth. 34 Table of Contents Under Basel III, Common Equity Tier 1, Tier 1 and total capital ratios are used to assess capital adequacy, which ratios are determined by dividing applicable capital components by risk-weighted assets. Total capital is defined as the sum of Tier 1 and Tier 2 capital. Under Basel III, Tier 1 capital is defined to include Common Equity Tier 1 and Additional Tier 1 capital. Common Equity Tier 1 capital is a new category of capital primarily consisting of: •common stock, •capital surplus, •retained earnings, and •accumulated other comprehensive income. Regulatory adjustments including certain intangible fixed assets, such as goodwill, and defined benefit pension fund net assets (prepaid pension costs) will be deducted from Common Equity Tier 1 capital. Additional Tier 1 capital generally consists of Basel III compliant preferred shares and perpetual subordinated obligations, net of regulatory adjustments. Tier 2 capital generally consists of: •Basel III compliant subordinated obligations, •allowances for credit losses, and •non-controlling interests in subsidiaries’ Tier 2 capital instruments. In order to qualify as Tier 1 or Tier 2 capital under Basel III, applicable instruments such as preferred shares and subordinated debt must have a clause in their terms and conditions that requires them to be written off or forced to be converted into common stock upon the occurrence of certain trigger events. Risk-weighted assets are the sum of risk-weighted assets compiled for credit risk purposes, quotient of dividing the amount equivalent to market risk by 8%, and quotient of dividing the amount equivalent to operational risk by 8%, and also include any amount to be added due to transitional measures as well as floor adjustments, if necessary. Risk-weighted assets include the capital charge of the credit valuation adjustment, or CVA, the credit risk related to asset value correlation multiplier for large financial institutions, the 250% risk-weighted threshold items not deducted from Common Equity Tier 1 capital, and certain Basel II capital deductions that were converted to risk-weighted assets under Basel III, such as securitizations and significant investments in commercial entities. Certain Basel III provisions were adopted by the FSA with transitional measures and became effective March 31, 2013. The capital ratio standards applicable to us are as follows: •a minimum total capital ratio of 8.0%, •a minimum Tier 1 capital ratio of 6.0%, and •a minimum Common Equity Tier 1 capital ratio of 4.5%. These minimum capital ratios are applicable to MUFG on a consolidated basis and to MUFG Bank and Mitsubishi UFJ Trust and Banking on a consolidated as well as stand-alone basis. The approval granted to us by the FSA to exclude the majority of our investment in Morgan Stanley from being subject to double gearing adjustments expired on March 30, 2023. The Financial Stability Board identified us as a global systemically important bank, or G-SIB, in its most recent annual report published in November 2025, and is expected to update the list of G-SIB annually. In December 2015, the FSA also designated us as a G-SIB as well as a domestic systemically important bank generally referred to as a “D-SIB.” Effective March 31, 2016, the FSA’s capital conservation buffer, countercyclical buffer and G-SIB surcharge requirements became applicable to Japanese banking institutions with international operations conducted through foreign offices, including us. The requirements as of March 31, 2026 consist of a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.18% in addition to the 4.5% minimum Common Equity Tier 1 capital ratio. In December 2017, the Group of Central Bank Governors and Heads of Supervision released final Basel III reforms. The reforms are designed, among other things, to help reduce excessive variability in risk-weighted assets among banks and improve the 35 Table of Contents comparability and transparency of banks’ risk-based capital ratios. The reforms endorsed by the Group of Central Bank Governors and Heads of Supervision include the following elements: •a revised standardized approach for credit risk, which is designed to improve the robustness and risk sensitivity of the existing approach; •revisions to the internal ratings-based approach for credit risk, where the use of the most advanced internally modelled approaches for low-default portfolios are limited; •revisions to CVA framework, including the removal of the internally modelled approach and the introduction of a revised standardized approach; •a revised standardized approach for operational risk, which replaces the previous standardized approaches and the advanced measurement approaches; •revisions to the measurement of the leverage ratio and a leverage ratio buffer for G-SIBs, which takes the form of a Tier 1 capital buffer set at 50% of a G-SIB’s risk-weighted capital buffer; and •an aggregate output floor, which is designed to ensure that banks’ risk-weighted assets generated by internal models are no lower than 72.5% of risk-weighted assets as calculated by the Basel III framework’s standardized approaches. Banks will also be required to disclose their risk-weighted assets based on these standardized approaches. These reforms, as adopted by the FSA, became generally applicable to Japanese banking institutions with international operations conducted through foreign offices, including us, on March 31, 2024. Transitional measures, including revisions to the aggregate output floor, are being phased in from March 31, 2024, with the initial capital floor of 50%, and are scheduled to be fully implemented at 72.5% from March 31, 2029. In January 2019, the Group of Central Bank Governors and Heads of Supervision approved the Basel Committee on Banking Supervision’s finalized market risk capital framework. The approved market risk framework includes the revision of the standardized approach and the internal model approach and the introduction of simplified standardized approach. The framework became generally applicable to Japanese banking institutions with international operations conducted through foreign offices, including us, on March 31, 2024. For a discussion on our capital ratios, see “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Capital Adequacy.” Leverage ratio. Japanese banks and bank holding companies with international operations, including us, are required to maintain a minimum leverage ratio and disclose their leverage ratios calculated in accordance with the methodology prescribed in the FSA guidelines that have 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 guidelines. In December 2017, the Group of Central Bank Governors and Heads of Supervision announced final Basel III reforms. The announced reforms include the revisions to the measurement of the leverage ratio and a 3.00% minimum leverage ratio requirement, plus a G-SIB leverage ratio buffer equal to 50% of the applicable G-SIB capital surcharge. In Japan, the FSA adopted a minimum leverage ratio requirement effective March 31, 2019. Since April 1, 2024, the applicable minimum leverage ratio requirement, including the applicable minimum leverage ratio buffer requirement, has been 3.95% consisting of the minimum requirement of 3.15% plus a G-SIB leverage ratio buffer set at 50% of a G-SIB surcharge which, as applied to us, equals 0.75%, plus 0.05%. From June 30, 2020 to March 31, 2024, deposits with the Bank of Japan were temporarily excluded from the calculation of the leverage ratio, and currently remain excluded from the leverage exposure for the purpose of the calculation of the leverage ratio in light of exceptional macroeconomic conditions and other circumstances. Total loss-absorbing capacity. In November 2015, the Financial Stability Board issued the final Total Loss-Absorbing Capacity, or TLAC, standard for G-SIBs, including us. The Financial Stability Board’s TLAC standard is designed to ensure that if a G-SIB fails, it has sufficient loss-absorbing and recapitalization capacity available in resolution to implement an orderly resolution that minimizes impacts on financial stability, ensures the continuity of critical functions, and avoids exposing public funds to loss. The Financial Stability Board’s TLAC standard defines a minimum requirement for the instruments and liabilities that should be readily available to absorb losses in resolution. The TLAC standard which was set forth in the regulatory notices and related materials for the implementation of the Financial Stability Board’s TLAC standard in Japan published by the FSA in March 2019 and which became fully applicable to (i) G-SIBs in Japan on March 31, 2022, and (ii) a domestic systemically important bank designated by the FSA, or D-SIB, in Japan deemed to be in particular need for a cross-border resolution arrangement and of particular systemic significance to the Japanese financial system if it fails (such G-SIBs and D-SIB, collectively, “Covered SIBs”) on March 31, 2024, respectively, or the Japanese TLAC Standard, requires entities designated by the FSA as Domestic Resolution Entities for Covered SIBs to meet certain minimum external total loss-absorbing capacity, or External TLAC, requirements. The Japanese TLAC Standard and the Financial Stability Board’s TLAC standard also require the Domestic Resolution Entities to cause any of their material subsidiaries in Japan designated as systemically 36 Table of Contents important by the FSA and its subsidiaries, as a material sub-group, or their foreign subsidiaries and their subsidiaries subject to TLAC or similar requirements in the relevant jurisdictions to maintain certain minimum level of capital and debt having internal total loss-absorbing and recapitalization capacity, or Internal TLAC. In the Japanese TLAC Standard, the FSA has designated the relevant ultimate holding companies in Japan as Domestic Resolution Entities for the Covered SIBs and, in our case, MUFG as the Domestic Resolution Entity for our Group, making MUFG subject to the External TLAC requirements in Japan. The FSA has also designated MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Morgan Stanley Securities as MUFG’s material subsidiaries in Japan, which, together with their respective subsidiaries, as material sub-groups, are subject to the Internal TLAC requirements applicable to MUFG. External TLAC debt generally consists of Basel III compliant regulatory capital and the Japanese TLAC Standard compliant obligations, net of regulatory adjustments. Internal TLAC debt generally consists of Basel III compliant regulatory capital and the Japanese TLAC Standard compliant subordinated obligations, net of regulatory adjustments. The Japanese TLAC Standard does not require that, in order for unsecured senior debt issued by the Domestic Resolution Entity of a Japanese G-SIB to qualify as External TLAC debt, such debt be subject to any contractual write-down, write-off or conversion provisions or to any subordination provisions so long as its creditors are recognized as structurally subordinated to the creditors of its subsidiaries and affiliates by the FSA on the ground that the amount of excluded liabilities of such Domestic Resolution Entity ranking pari passu with, or junior to, its unsecured senior liabilities does not, in principle, exceed 5% of the aggregate amount of its External TLAC. In contrast, Internal TLAC debt incurred by a material subsidiary of a Japanese G-SIB is required to be subject to contractual loss absorption provisions and to be subordinated to such subsidiary’s excluded liabilities. The Japanese TLAC Standard requires a Japanese G-SIB, such as us, to issue and maintain External TLAC debt in an amount not less than 18% of its consolidated risk-weighted assets and 7.10% of the applicable Basel III leverage ratio denominator. In addition, under the Japanese TLAC Standard, Japanese G-SIBs are allowed to count as External TLAC the Japanese Deposit Insurance Fund Reserves in an amount equivalent to 3.5% of their consolidated risk-weighted assets. Deposits with the Bank of Japan were temporarily excluded from the calculation of External TLAC ratio and Internal TLAC amounts on a total exposure basis (also referred to as a leverage exposure basis) as well as the leverage ratio from June 30, 2020 until March 31, 2024, and currently remain excluded from the calculation in light of exceptional macroeconomic conditions and other circumstances. Under the Japanese TLAC Standard, the FSA may order the Domestic Resolution Entity of a Covered SIB to submit a report outlining an improvement plan if the External TLAC ratio of the Domestic Resolution Entity or the Internal TLAC of its material sub-groups in Japan falls below the minimum requirements. If the FSA further deems it necessary to ensure improvement, the FSA may issue a business improvement order to such Domestic Resolution Entity. The Domestic Resolution Entity may also be subject to a capital distribution constraints plan if the capital buffers are used and reduced below the required level to make up for its required External TLAC on a risk-weighted assets basis. 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.” Prompt corrective action system. Under the prompt corrective action system, the FSA may take corrective action, if a bank or a bank holding company fails to meet the minimum capital adequacy ratio or leverage ratio. These actions include requiring such bank or bank holding company to formulate and implement capital improvement measures, requiring it to reduce assets or the bank’s business operations or take other specific actions, and issuing an order to dispose of shares of its subsidiaries or suspend all or part of the bank’s business operations. Capital distribution constraints system. Under the capital distribution constraints system, the FSA may order a bank or a bank holding company to submit and carry out a capital distribution constraints plan, if the bank or the bank holding company fails to maintain Common Equity Tier 1 capital required as applicable capital buffers, or if the bank or the bank holding company is a Japanese G-SIB, such as us, and fails to maintain Tier 1 capital required as applicable leverage buffers. A capital distribution constraints plan must be determined to be reasonably designed to restore the required capital buffers or leverage buffers by restricting capital distributions, such as dividends, share buybacks, interest payments on, and redemption and repurchase of, Additional Tier 1 capital instruments, and bonus payments, up to a certain amount depending on the level of the deficit in the required capital buffers or leverage buffers of the bank or the bank holding company. Prompt warning system. Under the prompt warning system, the FSA may take precautionary measures to maintain and promote the sound operations of financial institutions, even before those financial institutions become subject to prompt corrective actions. These measures require a financial institution to enhance profitability, credit risk management, stability and cash flows. 37 Table of Contents Deposit insurance system and government measures for troubled financial institutions. The Deposit Insurance Act is intended to protect depositors if a financial institution fails to meet its obligations. The Deposit Insurance Corporation was established in accordance with the Deposit Insurance Act. City banks, including MUFG Bank, regional banks, trust banks, including Mitsubishi UFJ Trust and Banking, and various other credit institutions participate in the deposit insurance system on a compulsory basis. Under the Deposit Insurance Act, the maximum amount of protection is ¥10 million of principal amount, together with any interest accrued on such principal amount, per customer within one bank. The ¥10 million maximum applies to all deposits except for non-interest-bearing deposits, which are non-interest-bearing deposits redeemable on demand and maintained by depositors primarily in settlement accounts for payment and settlement purposes. Deposits in settlement accounts are fully protected without a maximum amount limitation. Certain types of deposits are not covered by the deposit insurance system, such as foreign currency deposits and negotiable certificates of deposit. From April 1, 2025 until March 31, 2026, the Deposit Insurance Corporation charged an insurance premium equal to 0.022% per year on the deposits in the settlement accounts, and a premium equal to 0.014% per year on the deposits in other accounts, and as of April 1, 2026, they are decreased to 0.018% per year and 0.011% per year, respectively. Under the Deposit Insurance Act, a Financial Reorganization Administrator can be appointed by the Prime Minister if a bank’s liabilities exceed its assets or a bank has suspended, or is likely to suspend, repayment of deposits. The Financial Reorganization Administrator will take control of the assets of the troubled bank, dispose of the assets and search for another institution willing to take over the troubled bank’s business. The troubled bank’s business may also be transferred to a “bridge bank” established by the Deposit Insurance Corporation to enable the troubled bank’s operations to be maintained and continue temporarily, and the bridge bank will seek to transfer the troubled bank’s assets to another financial institution or dissolve the troubled bank. The Deposit Insurance Corporation protects deposits, as described above, either by providing financial aid for costs incurred by the financial institution succeeding the insolvent bank or by paying insurance money directly to depositors. The financial aid provided by the Deposit Insurance Corporation may take the form of a monetary grant, loan or deposit of funds, purchase of assets, guarantee or assumption of debt, subscription for preferred stock, or loss sharing. The Deposit Insurance Act also provides for exceptional measures to cope with systemic risk in the financial industry. Where the Prime Minister recognizes that the failure of a bank which falls into any of (i) through (iii) below may cause an extremely grave problem to the maintenance of the financial order in Japan or the region where such bank is operating, or systemic risk, if none of the measures described in (i) through (iii) below is implemented, the Prime Minister may, following deliberation by the Financial Crisis Response Council, confirm (nintei) the need to take any of the following measures: (i) if the bank does not fall into either of the categories described in (ii) or (iii) below, the Deposit Insurance Corporation may subscribe for shares or subordinated bonds of, or extend subordinated loans to the bank, or subscribe for shares of the bank holding company of the bank, in order to enhance the bank’s regulatory capital (“Item 1 measures” (dai ichigo sochi)); (ii) if the bank has suspended, or is likely to suspend, repayment of deposits, or its liabilities exceed its assets, financial aid exceeding the pay-off cost may be made available to such bank (“Item 2 measures” (dai nigo sochi)); and (iii) if the bank has suspended, or is likely suspend, repayment of deposits, and its liabilities exceed its assets, and the systemic risk cannot be avoided by the measures mentioned in (ii) above, the Deposit Insurance Corporation may acquire all of the bank’s shares (“Item 3 measures” (dai sango sochi)). The expenses for the implementation of the above measures will be borne by the banking industry, with an exception under which the Japanese government may provide partial subsidies for such expenses. Under the new orderly resolution regime established by amendments to the Deposit Insurance Act that were promulgated in June 2013 and became effective on March 6, 2014, financial institutions, including banks, insurance companies and securities companies and their holding companies, are subject to the regime. Further, where the Prime Minister recognizes that the failure of a financial institution which falls into either of (a) or (b) below may cause a significant disruption to the Japanese financial market or system in Japan if measures described in (a) or measures described in (b) are not taken, the Prime Minister may, following deliberation by the Financial Response Crisis Council, confirm (nintei) that any of the following measures need to be applied to the financial institution: (a)if the financial institution is not a financial institution whose liabilities exceed its assets, the financial institution shall be placed under the special supervision by the Deposit Insurance Corporation over the financial institution’s business operations and management and the disposal of the financial institution’s assets, and the Deposit Insurance Corporation may provide the financial institution with loans or guarantees necessary to avoid the risk of significant disruption to the financial system in Japan, or subscribe for shares or subordinated bonds of, or extend subordinated loans to, the financial institution, taking into consideration the financial condition of the financial institution (“Specified Item 1 measures” (tokutei dai ichigo sochi) under Article 126-2, Paragraph 1, Item 1 of the Deposit Insurance Act); or (b)if the financial institution is a financial institution whose liabilities exceed, or are likely to exceed, its assets or which has suspended, or is likely to suspend, payments on its obligations, the financial institution shall be placed under the special supervision by the Deposit Insurance Corporation over the financial institution’s business operations and management and the disposal of the financial institution’s assets, and the Deposit Insurance Corporation may provide financial aid necessary to assist a merger, business transfer, corporate split or other reorganization in respect of such failed financial institution 38 Table of Contents (“Specified Item 2 measures” (tokutei dai nigo sochi) under Article 126-2, Paragraph 1, Item 2 of the Deposit Insurance Act). If the Prime Minister confirms that any of the measures set out in (b) above needs to be applied to a failed financial institution, the Prime Minister may order that the failed financial institution’s business operations and management and the disposal of the failed financial institution’s assets be placed under the special control of the Deposit Insurance Corporation. The business or liabilities of the financial institution subject to the special supervision or the special control of the Deposit Insurance Corporation as set forth above may also be transferred to a “bridge financial institution” established by the Deposit Insurance Corporation to enable the financial institution’s operations to be maintained and continue temporarily, or the financial institution’s liabilities to be repaid, and the bridge financial institution will seek to transfer the financial institution’s business or liabilities to another financial institution or dissolve the financial institution. The financial aid provided by the Deposit Insurance Corporation to assist a merger, business transfer, corporate split or other reorganization in respect of the failed financial institution set out in (b) above may take the form of a monetary grant, loan or deposit of funds, purchase of assets, guarantee or assumption of debts, subscription for preferred stock or subordinated bonds, subordinated loan, or loss sharing. If the Deposit Insurance Corporation has provided such financial assistance, the Prime Minister may designate the movable assets and claims of the failed financial institution as not subject to attachment, and such merger, business transfer, corporate split or other reorganization may be conducted outside of the court-administrated insolvency proceedings. If the financial institution subject to the special supervision or the special control by the Deposit Insurance Corporation as set forth above has liabilities that exceed, or are likely to exceed, its assets, or has suspended, or is likely to suspend, payments on its obligations, the financial institution may transfer all or a material portion of its business or all or a material portion of shares of its subsidiaries or implement corporate split or certain other corporate actions with court permission in lieu of any shareholder resolutions. In addition, the Deposit Insurance Corporation must request other financial institution creditors of the failed financial institution to refrain from exercising their rights against the failed financial institution until measures necessary to avoid the risk of significant disruption to the financial system in Japan have been taken, if it is recognized that such exercise of their rights is likely to make the orderly resolution of the failed financial institution difficult. The expenses for implementation of the measures under this regime will be borne by the financial industry, with an exception under which the Japanese government may provide partial subsidies for such expenses within the limit to be specified in the government budget in cases where it is likely to cause extremely serious hindrance to the maintenance of the credit system in Japan or significant turmoil in the Japanese financial market or system if such expenses are to be borne only by the financial industry. According to the announcement made by the FSA in March 2014, (i) Additional Tier 1 instruments and Tier 2 instruments under Basel III issued by a bank must be written down or converted into common shares when the Prime Minister confirms (nintei) that Item 2 measures (dai nigo sochi), Item 3 measures (dai sango sochi), or Specified Item 2 measures (tokutei dai nigo sochi) need to be applied to the bank and (ii) Additional Tier 1 instruments and Tier 2 instruments under Basel III issued by a bank holding company must be written down or converted into common shares when the Prime Minister confirms (nintei) that Specified Item 2 measures (tokutei dai nigo sochi) need to be applied to the bank holding company. Further, in an explanatory paper outlining the FSA’s approach for the introduction of the TLAC framework in Japan published by the FSA in April 2016 and revisions to the paper published by the FSA in April 2018, collectively the FSA TLAC Approach, as well as in the Japanese TLAC Standard, the FSA expressed its view that single point of entry, or SPE, resolution, in which a single national resolution authority applies its resolution tools to the ultimate holding company in Japan of a financial group, would be the preferred strategy for resolution of the Covered SIBs. However, it is uncertain which measure is to be taken in a given case, including whether or not the SPE resolution strategy will actually be elected and implemented in a given case, and the actual measures to be taken will be determined on a case-by-case basis considering the actual condition of the relevant Japanese G-SIB in distress. Under a possible model of resolution of a Japanese G-SIB based on the SPE resolution strategy as described in the Japanese TLAC Standard, if the FSA determines that a material subsidiary in Japan of a financial institution that is a Japanese G-SIB is non-viable due to material deterioration in its financial condition and issues an order concerning restoration of financial soundness, including recapitalization and restoration of liquidity of such material subsidiary, to the ultimate holding company in Japan designated by the FSA as Domestic Resolution Entity for the financial institution under the Banking Act of Japan (Act No. 59 of 1981), the material subsidiary’s Internal TLAC instruments will be written off or, if applicable, converted into equity in accordance with the applicable contractual loss absorption provisions of such Internal TLAC instruments. Following the write-off or conversion of Internal TLAC instruments, if the Prime Minister recognizes that the financial institution’s liabilities exceed, or are likely to exceed, its assets, or that it has suspended, or is likely to suspend, payments on its obligations, as a result of the financial institution’s loans to, or other investment in, the material subsidiary becoming subject to loss absorption or otherwise, and further recognizes that the failure of such financial institution is likely to cause a significant disruption to the Japanese financial market or system, the Prime Minister may, following deliberation by the Financial Crisis Response Council, confirm that Specified Item 2 Measures (tokutei dai nigo sochi) need to be applied to the financial institution for its orderly resolution. Any such confirmation by the Prime Minister also triggers the point of non-viability clauses of Additional Tier 1 and Tier 2 instruments issued by the financial institution, causing such instruments to be written off or, if applicable, converted into equity, as described above. Upon the application of Specified Item 2 Measures (tokutei dai nigo sochi), a financial institution will be placed under the special supervision by, or if the Prime Minister so orders, under the special control of, the Deposit Insurance Corporation. In an 39 Table of Contents orderly resolution, the Deposit Insurance Corporation would control the operation and management of a financial institution’s business, assets and liabilities, including the potential transfer to a bridge financial institution established by the Deposit Insurance Corporation as its subsidiary, or such other financial institution as the Deposit Insurance Corporation may determine, of the financial institution’s systemically important assets and liabilities, which we expect in the case of MUFG would include the shares of our material subsidiaries based on the Japanese TLAC Standard. The Prime Minister may prohibit creditors of the financial institution from attaching any of our assets and claims which are to be transferred to a bridge financial institution or another financial institution. Based on the Japanese TLAC Standard, it is currently expected that the External TLAC eligible senior notes issued by the financial institution will not be transferred to a bridge financial institution or other transferee in the orderly resolution process but will remain as such financial institution’s liabilities subject to court-administered insolvency proceedings. On the other hand, in an orderly resolution process, the shares of material subsidiaries of such financial institution may be transferred to a bridge financial institution or other transferee, and such financial institution would only be entitled to receive consideration representing the fair value of such shares, which could be significantly less than the book value of such shares. Following such business transfer, the recoverable value of such financial institution’s residual assets in court-administered insolvency proceedings may not be sufficient to fully satisfy any payment obligations that such financial institution may have under its liabilities, including the External TLAC eligible senior notes. Recovery and resolution plan. In November 2025, the Financial Stability Board published the latest list of G-SIBs, which includes us. The list is annually updated by the Financial Stability Board. A recovery and resolution plan must be put in place for each G-SIB, and the plans must be regularly reviewed and updated. In Japan, under the Banking Act and the Comprehensive Guidelines for Supervision of Major Banks, etc., financial institutions identified as G-SIBs must, as part of their crisis management, prepare and submit a recovery plan, including triggers for the recovery plan and an analysis of recovery options, to the FSA. The Comprehensive Guidelines also provide that resolution plans for such financial institutions are prepared by the FSA. We have submitted our most recent recovery plan to the FSA in a timely manner. Liquidity Coverage Ratio. Japanese banks and bank holding companies with international operations conducted through foreign offices are required to maintain a minimum LCR and disclose their LCRs calculated in accordance with the methodology prescribed in the FSA guidelines that have been adopted to implement the relevant Basel III standard. The LCR is a measure to determine whether a bank has a sufficient amount of high-quality liquid assets, which are assets that can be converted easily and immediately into cash in private markets in order to meet the bank’s liquidity needs, to survive in a 30-day financial stress scenario, including sizable deposit outflows, inability to issue new bonds or access the interbank market, stoppage of the collateralized funding market, need for additional collateral in connection with derivative transactions, and significant outflows of cash under commitment lines to customers. Once a bank or bank holding company fails to meet the minimum LCR of 100%, it is required to immediately report such failure to the FSA. If the FSA deems the financial condition of the bank or bank holding company to be serious, the FSA may issue a business improvement order. A minimum LCR of 100% is currently required. Net Stable Funding Ratio. Japanese banks and bank holding companies with international operations conducted through foreign offices are also required to maintain a minimum NSFR and disclose their NSFRs calculated in accordance with the methodology prescribed in the FSA guidelines that have been adopted to implement the relevant Basel III standard. The NSFR is a measure to determine whether a bank has sustainable and long-term liabilities and capital for its assets and activities. The Basel Committee on Banking Supervision issued the final standard of NSFR in October 2014. In Japan, the FSA promulgated its NSFR guidelines on March 31, 2021, and the NSFR requirements have been applicable since September 30, 2021, requiring a minimum NSFR of 100%. Once a bank or bank holding company fails to meet the minimum NSFR of 100%, it is required to immediately report such failure to the FSA. If the FSA deems the financial condition of the bank or bank holding company to be serious, the FSA may issue a business improvement order. Inspection and reporting. The FSA has the authority to order reporting from, and inspect, banks and banking holding companies in Japan. Based on its “Principles and Approaches of Inspection and Supervision,” the FSA seeks to evaluate the effectiveness of the operations and functions of financial institutions, supervise financial institutions based on proactive and forward-looking analyses, facilitate best practices among financial institutions, focus monitoring on high-priority issues, and integrate on- and off-site monitoring. Furthermore, the Securities and Exchange Surveillance Commission of Japan, or SESC, inspects banks in connection with their securities business as well as financial instruments business operators, such as securities firms. The Bank of Japan also conducts inspections of banks. The Bank of Japan Law provides that the Bank of Japan and financial institutions may agree as to the form of inspection to be conducted by the Bank of Japan. Laws limiting shareholdings of banks. The provisions of the Antimonopoly Act that generally prohibit a bank from holding more than 5% of another domestic company’s voting rights do not apply to a bank holding company. However, the Banking Act prohibits a bank holding company and its subsidiaries from holding, on an aggregated basis, more than 15% of the voting rights of domestic companies other than those which can legally become subsidiaries of bank holding companies. There have recently been amendments to various financial regulation related laws, including the Banking Act, which include certain deregulations of restrictions on shareholdings by banks, as described in “— Bank holding company regulations” above. 40 Table of Contents In addition, a bank is prohibited from holding shares in other companies exceeding the aggregate of its Common Equity Tier 1 capital amount and Additional Tier 1 capital amount. Restrictions on exposures to single large counterparties. The Banking Act prohibits banks and bank holding companies with international operations (on a consolidated basis with their subsidiaries and affiliates) from having large exposure exceeding 25% of their Tier 1 capital to a single counterparty and also prohibits a G-SIB’s exposure to another G-SIB exceeding 15% of its Tier 1 capital. Financial Instruments and Exchange Act. The Financial Instruments and Exchange Act provides protection for investors and also regulates sales of a wide range of financial instruments and services, requiring financial institutions to improve their sales rules and strengthen compliance frameworks and procedures. Among the instruments that the Japanese banks deal in, derivatives, foreign currency-denominated deposits, and variable insurance and annuity products are subject to regulations covered by the sales-related rules of conduct under the law. Article 33 of the Financial Instruments and Exchange Act generally prohibits banks from engaging in securities transactions. However, bank holding companies and banks may, through a domestic or overseas securities subsidiary, conduct all types of securities businesses, with appropriate approval from the FSA. Similarly, registered banks are permitted to provide securities intermediation services and engage in certain other similar types of securities related transactions, including retail sales of investment funds and government and municipal bonds. In June 2021, certain amendments to the Cabinet Office Ordinance under the Act became effective, which allowed non-public and other information of foreign company customers to be shared within a financial group. In addition, on June 22, 2022, certain amendments to the Cabinet Office Ordinance under the Act became effective, which allowed non-public and other information of certain subject companies such as listed companies to be shared within a financial group without consent of such companies, but required financial institutions to establish measures to respond to a request from relevant companies for suspension of sharing of such information. At the same time, financial institutions are required to strengthen the effectiveness of measures to prevent market abuse. Subsidiaries of bank holding companies engaging in the securities business are subject to the supervision of the FSA as financial instruments business operators. The Prime Minister has the authority to regulate the securities industry and securities companies, which authority is delegated to the Commissioner of the FSA under the Financial Instruments and Exchange Act. In addition, the SESC, an external agency of the FSA, is independent from the FSA’s other bureaus and is vested with the authority to conduct day-to-day monitoring of the securities markets and to investigate irregular activities that hinder fair trading of securities, including inspections of securities companies as well as banks in connection with their securities business. Furthermore, the Commissioner of the FSA delegates certain authority to the Director General of the Local Finance Bureau to inspect local securities companies and their branches. A violation of applicable laws and ordinances may result in various administrative sanctions, including revocation of registration, suspension of business, administrative monetary penalty or an order to discharge any director or executive officer who has failed to comply with applicable laws and ordinances. Securities companies are also subject to the rules and regulations of the Japanese stock exchanges and the Japan Securities Dealers Association, a self-regulatory organization of securities companies. Act on Provision of Financial Services and the Development of the Accessibility Environment Thereto. Under the Act on Provision of Financial Services and the Development of the Accessibility Environment Thereto, sellers of financial instruments have a duty to their potential customers to explain important matters such as the nature and magnitude of risks involved regarding the financial instruments that they intend to sell. If a seller fails to comply with the duty, there is a rebuttable presumption that the loss suffered by the customer due to the seller’s failure to explain is equal to the amount of decrease in the value of the purchased financial instruments. In addition, under a single registration for financial services intermediary business, registrants are permitted to provide intermediary services of each of banking, securities and insurance. The Act does not require any provider of financial services intermediary business to belong to a specific financial institution, but imposes certain regulations on such provider to protect customers, including limitations on the type of services that they may provide, prohibitions on the acceptance of assets of customers and the lodging of a security deposit. Anti-money laundering laws. Under the Act on Prevention of Transfer of Criminal Proceeds, specified business operators, including financial institutions, are required to verify customer identification data, preserve transaction records, and file suspicious transaction reports with the FSA or other regulatory authorities in cases where any asset received through their business operations is suspected of being criminal proceeds. Based on “Guidelines on Anti-Money Laundering and Terrorist Financing”, the FSA requires financial institutions to strengthen their management of anti-money laundering and terrorist financing functions and their risk-based approach used in such functions. Amendments to the Enforcement Ordinance of the Act introduced requirements relating to online KYC processes in November 2018 and strengthened the requirements for KYC processes for customers residing in remote areas in April 2020. Recent amendments to the ordinance will render certain KYC processes currently permitted under the ordinance no longer permissible in and after April 2027 to reduce risks such as impersonation through forgery or alteration of identity verification documents. 41 Table of Contents Acts concerning trust business conducted by financial institutions. Under the Trust Business Act, joint stock companies that are licensed by the Prime Minister as trust companies, including non-financial companies, are allowed to conduct trust business. In addition, under the Act on Provision, etc. of Trust Business by Financial Institutions, banks and other financial institutions, as permitted by the Prime Minister, are able to conduct trust business. The Trust Business Act provides for a separate type of registration for trustees who conduct only administration type trust business. The Trust Business Act also provides for various duties imposed on the trustee in accordance with and in addition to the Trust Act. Act on the Protection of Personal Information. With regard to protection of personal information, the Act on the Protection of Personal Information requires, among other things, Japanese banking institutions to limit the use of personal information to the stated purposes and to properly manage the personal information in their possession, and forbids them from providing personal information to third parties without consent. If a bank violates certain provisions of the Act, the Personal Information Protection Commission of Japan may advise or order the bank to take proper action. In addition, the Banking Act and the Financial Instruments and Exchange Act contain certain provisions with respect to appropriate handling of customer information. Act on the Use of Personal Identification Numbers in the Administration of Government Affairs. Pursuant to the Act on the Use of Personal Identification Numbers in the Administration of Government Affairs, which became effective in October 2015, the Japanese government has adopted a Social Security and Tax Number System, which is designed to (1) improve social security services, (2) enhance public convenience in obtaining government services, and (3) increase the efficiency of the administration of government affairs. Under this system, a 12-digit unique number is assigned to each resident of Japan to identify and manage information relating to the resident for government service and tax purposes. Financial institutions are required to implement measures to ensure that such customer information will be protected from inappropriate disclosure and other unauthorized use. Act on the Promotion of Ensuring National Security through Integrated Implementation of Economic Measures. Specified essential infrastructure service providers designated by the competent regulator are required to submit to the competent regulator a plan for review before they introduce specified critical facilities or outsource certain critical maintenance, management or control of specified critical facilities to third parties. Based on its review, the regulator may issue a recommendation or order to take necessary measures. MUFG Bank, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ NICOS and The Master Trust Bank of Japan, Ltd. were designated as specified essential infrastructure service providers by the FSA as of April 30, 2026. Act Concerning Protection of Depositors from Illegal Withdrawals Made by Counterfeit or Stolen Cards. The Act on Protection, etc. of Depositors and Postal Saving Holders from Unauthorized Automated Withdrawal, etc. Using Counterfeit Cards, etc. and Stolen Cards, etc. requires financial institutions to establish internal systems to prevent illegal withdrawals of deposits made using counterfeit or stolen bank cards. The Act also requires a financial institution to compensate depositors for any amount illegally withdrawn using stolen bank cards except in certain cases, including those where the financial institution can verify that it acted in good faith without negligence and there was gross negligence on the part of the relevant depositor. In addition, the Act provides that illegal withdrawals with counterfeit bank cards are invalid unless the financial institution acted in good faith without negligence and there was gross negligence on the part of the relevant depositor. Government reforms to restrict maximum interest rates on consumer lending business. In December 2006, the Diet passed legislation to reform the regulations relating to the consumer lending business, including amendments to the Act Regulating the Receipt of Contributions, Receipt of Deposits and Interest Rates which, effective June 18, 2010, reduced the maximum permissible interest rate from 29.2% per annum to 20% per annum. The regulatory reforms also included amendments to the Money Lending Business Act which, effective June 18, 2010, abolished the so-called “gray-zone interest.” Gray-zone interest refers to interest rates exceeding the limits stipulated by the Interest Rate Restriction Act (between 15% per annum and 20% per annum depending on the amount of principal). Prior to June 18, 2010, gray-zone interests were permitted under certain conditions set forth in the Money Lending Business Act. As a result of the regulatory reforms, all interest rates are now subject to the lower limits imposed by the Interest Rate Restriction Act, compelling lending institutions, including our consumer finance subsidiaries and equity method investees, to lower the interest rates they charge borrowers. Furthermore, the new regulations, which became effective on June 18, 2010, require, among other things, consumer finance companies to limit their lending to a single customer to a maximum of one third of the customer’s annual income regardless of the customer’s repayment capability. In addition, as a result of decisions made by the Supreme Court of Japan prior to June 18, 2010, imposing stringent requirements for charging such gray-zone interest rates, consumer finance companies have been responding to borrowers’ claims for reimbursement of previously collected interest payments in excess of the limits stipulated by the Interest Rate Restriction Act. See “Item 3.D. Key Information—Risk Factors—Operational Risk—Because of our loans to consumers and our shareholdings in companies engaged in consumer lending, changes in the business or regulatory environment for consumer finance companies in Japan may further adversely affect our financial results.” Act on Special Provisions of the Income Tax Act, the Corporation Tax Act and the Local Tax Act Incidental to Enforcement of Tax Treaties. Pursuant to the Amendments to the Act on Special Provisions of the Income Tax Act, the Corporation Tax Act and the Local Tax Act Incidental to Enforcement of Tax Treaties, which became effective in January 2017, financial institutions are required to collect certain information from their accountholders, including jurisdictions of tax residence, and report such information to the National Tax Agency in accordance with the Common Reporting Standard as developed by the Organization for Economic Co-operation and Development. Furthermore, amendments to the Act, which became effective on January 1, 2026, require certain financial institutions to collect certain information from their non-resident accountholders who conduct crypto-asset transactions, and 42 Table of Contents report such information to the National Tax Agency in accordance with the Crypto-Asset Reporting Framework as developed by the Organization for Economic Co-operation and Development. United States As a result of our operations in the United States, we are subject to extensive U.S. federal and state supervision and regulation. Overall supervision and regulation. The MUFG Group is subject to regulation, supervision, and examination with respect to our U.S. operations by the Board of Governors of the Federal Reserve System (“FRB”) pursuant to the U.S. Bank Holding Company Act of 1956, as amended, or the BHCA, and the International Banking Act of 1978, as amended, or the IBA, because we and MUFG Bank are bank holding companies and foreign banking organizations, as defined pursuant to those statutes. The FRB functions as our “umbrella” supervisor under amendments to the BHCA effected by the Gramm-Leach-Bliley Act of 1999, which among other things: •authorized qualifying bank holding companies to opt to become “financial holding companies,” and thereby obtain the authority to engage in an expanded list of activities; and •modified the role of the FRB by redefining the relationships between the FRB and the functional regulators of non-bank subsidiaries of both bank holding companies and financial holding companies. The BHCA generally prohibits each of a bank holding company and a foreign banking organization that maintains branches or agencies in the United States from, directly or indirectly, acquiring more than 5% of the voting shares of any company engaged in non-banking activities in the United States unless the bank holding company or foreign banking organization has elected to become a financial holding company, as discussed above, or the FRB has determined, by order or regulation, that such activities are so closely related to banking as to be a proper incident thereto and has granted its approval to the bank holding company or foreign banking organization for such an acquisition. The BHCA also requires a bank holding company or foreign banking organization that maintains branches or agencies in the United States to obtain the prior approval of an appropriate federal banking authority before acquiring, directly or indirectly, the ownership of more than 5% of the voting shares or the control of any U.S. bank or bank holding company. In addition, under the BHCA, a U.S. bank or a U.S. branch or agency of a foreign banking organization is prohibited from engaging in various tying arrangements involving it or its affiliates in connection with any extension of credit, taking of deposits, sale or lease of any property or provision of many services. In October 2008, we, MUFG Bank, Mitsubishi UFJ Trust and Banking and MUFG Americas Holdings initially attained financial holding company status. MUFG and MUFG Bank continue to operate as financial holding companies in the United States. A financial holding company is authorized to engage in an expanded list of activities deemed to be financial in nature or incidental to such financial activity as well as certain specified non-banking activities deemed to be closely related to banking. In order to maintain the status of financial holding company, a bank holding company must continue to meet certain standards established by the FRB that exceed those required of bank holding companies. These higher standards include meeting the “well capitalized” and “well managed” standards for financial holding companies as defined in regulations of the FRB. Failure to meet these standards, due to inadequate capital or managerial shortcomings in its operations, results in restrictions on the ability of a financial holding company to engage in expanded activities, including making acquisitions. In addition, a financial holding company must ensure that each of its U.S. branches and agencies obtain an examination rating of "Satisfactory" and that its insured banking subsidiaries meet certain minimum standards under the Community Reinvestment Act of 1977. U.S. branches and agencies of subsidiary Japanese banks. Under the authority of the IBA, our banking subsidiaries, MUFG Bank and Mitsubishi UFJ Trust and Banking, operate five branches, two agencies, and a total of 16 Loan Production Offices (“LPOs”) and offices combining an LPO and a Deposit Production Office (“DPO”). MUFG Bank operates a branch in each of Los Angeles, California; and Chicago, Illinois; two branches in New York, New York; an agency in each of Houston and Dallas, Texas; and LPOs or LPO-DPO combined offices licensed by the Office of the Comptroller of the Currency (the “OCC”) in Tampa, Florida; Washington, D.C.; Tempe, Arizona; Menlo Park, Redwood City, Walnut Creek, San Diego, Century City, and San Francisco, California; Danbury, Connecticut; Atlanta, Georgia; Covington, Kentucky; Boston, Massachusetts; Jersey City, New Jersey; Irving, Texas; and Seattle, Washington. Mitsubishi UFJ Trust and Banking operates a branch in New York, New York. The IBA provides, among other things, that the FRB may examine U.S. branches and agencies of foreign banks, and each branch and agency shall also be subject to on-site examination by the appropriate federal or state bank licensing supervisor as frequently as would a U.S. bank. The IBA also provides that if the FRB determines that a foreign bank is not subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country, or if there is reasonable cause to believe that the foreign bank or its affiliates have committed a violation of law or engaged in an unsafe or unsound banking practice in the United States, the FRB may order the foreign bank to terminate activities conducted at a branch or agency in the United States. U.S. branches and agencies of foreign banks must be licensed, and are also supervised and regulated, by a state or by the OCC, which is the federal regulator of U.S. national banks. The OCC is an independent bureau of the U.S. Department of the Treasury. Effective November 7, 2017, all of the branches and agencies of MUFG Bank and Mitsubishi UFJ Trust and Banking in the United States converted from state-licensed branches and agencies to federally-licensed branches and agencies supervised and regulated by the OCC. As of December 31, 2025, all of MUFG Bank’s representative offices in the United States have been converted from state- 43 Table of Contents licensed representative offices to LPOs or offices combining an LPO and a DPO. The OCC is the licensing authority and primary federal supervisor of MUFG Bank’s LPOs and DPOs, which the OCC views as extensions of MUFG Bank’s U.S. branches. MUFG Bank’s LPOs and DPOs continue to be deemed by the FRB to be representative offices that are subject to applicable FRB regulations, including Regulation K. When opening a federal branch or agency, a foreign bank must establish and maintain a deposit account with an FRB member bank at least (1) in the amount of capital that would be required of a national bank being organized at the same location or (2) equal to five percent of the total liabilities of the federal branch or agency, including acceptances but excluding (i) accrued expenses and (ii) amounts due and other liabilities to offices, branches, and subsidiaries of the foreign bank, whichever is greater. Federally-licensed branches and agencies must also submit written reports concerning their assets and liabilities and other matters, to the extent required by the OCC or the FRB. Bank capital requirements, including U.S. requirements, and capital distributions. MUFG Bank and Mitsubishi UFJ Trust and Banking, as foreign banking organizations that have U.S. branches and agencies and are controlled by us, are subject to the FRB’s requirements that they be “well-capitalized” under Japanese risk-based capital standards. MUFG Bank and Mitsubishi UFJ Trust and Banking are all “well capitalized,” and otherwise comply with, all applicable U.S. regulatory capital requirements. Since MUFG Americas Holdings has ceased to be a U.S. Intermediate Holding Company (“IHC”), as further discussed below, U.S. capital adequacy as currently applicable to MUFG Americas Holdings is measured at the MUFG parent company level. MUFG Americas Holdings complies with capital adequacy standards applicable on a consolidated group basis under rules established by MUFG’s home country supervisor. Other regulated U.S. subsidiaries. Our non-bank subsidiaries that engage in securities-related activities in the United States are regulated by appropriate functional regulators, such as the SEC, any self-regulatory organizations of which they are members, and the appropriate state regulatory agencies. These non-bank subsidiaries are required to meet separate minimum capital standards as imposed by those regulatory authorities. On January 15, 2026, our registered broker-dealer subsidiary, MUFG Securities Americas, Inc. (“MUSA”), was designated a Primary Dealer by the Federal Reserve Bank of New York (the “New York Fed”). In this capacity, MUSA will act as a trading counterparty with the New York Fed, participating in open market operations, supporting U.S. Treasury securities at auctions, and providing market intelligence and analysis to the Open Market Trading Desk at the New York Fed. Anti-Money Laundering Initiatives, the Bank Secrecy Act, and the USA PATRIOT Act. A major focus of U.S. governmental policy relating to financial institutions in recent years has been, and continues to be, aimed at preventing money laundering and terrorist financing. The USA PATRIOT Act of 2001 and the Anti-Money Laundering Act of 2020, as incorporated into the Bank Secrecy Act, substantially broadened the scope of U.S. anti-money laundering laws and regulations by imposing significant new compliance and due diligence obligations, creating new crimes and penalties, and expanding the extra-territorial jurisdiction of the United States. The U.S. Department of the Treasury has issued a number of regulations that impose obligations on financial institutions to maintain appropriate policies, procedures, and controls to detect, prevent and report potential money laundering and terrorist financing, including the collection of beneficial ownership information for financial institution clients. The bank regulatory agencies carefully scrutinize the adequacy and effectiveness of an institution’s compliance with these regulations and, as a result, there have been various regulatory enforcement actions. A financial institution’s failure to maintain and implement adequate policies, procedures, and controls to prevent and detect money laundering and terrorist financing could have serious adverse consequences for the institution, including the incurrence of expenses to enhance the relevant programs, the imposition of limitations on the scope of its operations and the imposition of fines and other monetary penalties. Foreign Corrupt Practices Act. The Foreign Corrupt Practices Act, or the FCPA, prohibits U.S. securities issuers, U.S. domestic entities, and parties doing substantial business within the United States (including their shareholders, directors, agents, officers, and employees) from giving, offering, or promising anything of value to foreign public officials in order to obtain or retain any business advantage. The FCPA also requires U.S. securities issuers to maintain adequate books and records in such a way that they fairly reflect all transactions and dispositions of assets. Enforcement efforts have targeted a wide range of U.S. and foreign-based entities and have been based on a broad variety of alleged fact patterns, and in a number of cases have resulted in the imposition of substantial criminal and civil penalties or in agreed payments in settlement of alleged violations. Failure to maintain adequate anti-bribery policies, procedures, internal controls, and books and records globally could have serious adverse consequences for the institution, including the incurrence of expenses to enhance the relevant programs, as well as the imposition of civil and criminal penalties. Regulatory Reform Legislation —2010 Foundational Reform of the U.S. Financial System. In response to the global financial crisis of 2007-2008 and the perception that lax supervision of the financial industry in the United States may have been a contributing cause to the crisis, legislation designed to reform the system for supervision and regulation of financial firms doing business in the United States, the so-called Dodd-Frank Act, was signed into law on July 21, 2010. The Dodd-Frank Act is complex and extensive in its coverage and contains a wide range of provisions that affect financial institutions with U.S. operations, including us. Included among these provisions are sweeping reforms designed to reduce systemic risk presented by the largest financial firms, promote enhanced supervision, regulation, and prudential standards for many financial firms, establish comprehensive supervision of financial markets, impose new limitations on permissible financial institution activities and investments, expand regulation of the derivatives markets, protect consumers and investors from financial abuse, and provide the government with the tools needed to manage a financial crisis, including the resolution of systemically significant financial firms. Key provisions that impact our operations are summarized below. 44 Table of Contents Among the components of the Dodd-Frank Act that have impacted or may impact our operations are the provisions relating to enhanced prudential standards ("EPS"), including capital, liquidity, risk management, and structural requirements, the “Volcker Rule,” derivatives regulations, resolution plans, and incentive-based compensation. Based on information currently available to us, other than the Volcker Rule and derivatives regulations as discussed below, the impact of these components is expected to be mainly limited to our U.S. operations and not to be material to us on a consolidated basis. We monitor developments that relate to the Dodd-Frank Act and the potential impact of its implementing regulations on our activities inside and outside of the United States. With respect to the Dodd-Frank Act provisions related to EPS, in February 2014 the FRB issued final rules that established EPS ("EPS Rules") for the U.S. operations of foreign banking organizations such as MUFG. The EPS Rules required foreign banking organizations with average U.S. non-branch assets of $50 billion or more to establish a U.S. IHC or designate an existing subsidiary as its U.S. IHC, and to organize all of its U.S. bank and non-bank subsidiaries, with certain limited exceptions, under the IHC subject to U.S. capital requirements and other EPS comparable to those applicable to top-tier U.S. bank holding companies of the same asset size. Effective July 1, 2016, as required by the EPS Rules, we designated MUFG Americas Holdings, which was our bank holding company, to be also our IHC. After the sale of MUFG Union Bank, MUFG Americas Holdings’ consolidated assets have remained under $50 billion, and MUFG Americas Holdings ceased being an IHC on November 21, 2023, although it remains our top-tier U.S. subsidiary. Under the EPS Rules, our combined U.S. operations, or CUSO, including MUFG Bank’s branches, agencies, and other offices, Mitsubishi UFJ Trust and Banking’s New York Branch, and all of MUFG’s U.S. subsidiaries, are subject to certain requirements, including liquidity, risk management, regulatory reporting, and single counterparty credit limits, as further noted below. On October 10, 2019, the FRB issued (1) by itself, a final rule that establishes a tailored framework for application of EPS to U.S. and foreign banking organizations (the “FRB Tailoring Rule”) and (2) jointly with the OCC and the Federal Deposit Insurance Corporation (“FDIC”), a second final rule that modifies the application of capital and liquidity requirements to the operations of U.S. banking organizations and the U.S. operations of foreign banking organizations based on the framework established by the FRB Tailoring Rule (together, the rules are hereinafter referred to as the “Tailoring Rules”). The Tailoring Rules became effective on December 31, 2019. The Tailoring Rules established a framework to tailor the applicability of certain EPS requirements, including liquidity stress testing and management, capital planning and stress testing, single counterparty credit limits requirements, and related regulatory reporting by categorizing all foreign banking organizations with $100 billion or more in combined U.S. assets into one of four categories, while other U.S. and non-U.S. firms with total assets under $100 and above $50 billion were subject to a significantly reduced level of EPS requirements. This categorization framework was based on the calculation of aggregate U.S. assets and four other risk-based indicators, including weighted short-term wholesale funding, cross-jurisdictional activity, nonbank assets, and off-balance sheet exposure. Under the framework of the Tailoring Rules, MUFG’s CUSO has been classified as Category II, subject to the most stringent forms of liquidity stress testing and risk management requirements other than those applicable to U.S. G-SIBs. After exiting IHC status, MUFG Americas Holdings ceased to be subject to the categorization framework and EPS requirements on a stand-alone basis. The Tailoring Rules did not alter the risk management requirements previously applicable to MUFG’s CUSO under EPS. Thus, our CUSO continues to be subject to the oversight of the U.S. Risk Committee, the composition and role of which are further discussed in “Item 6.C. Directors, Senior Management and Employees—Board Practices.” Our Chief Risk Officer for the Americas, as also mandated under EPS, is responsible for implementing and maintaining the CUSO’s risk management framework and practices, including its liquidity management standards. The Chief Risk Officer for the Americas is located in the United States, and reports directly to the U.S. Risk Committee, a committee of the MUFG Board of Directors. The Volcker Rule was issued in final form by the FRB, OCC, FDIC, SEC, and the U.S. Commodity Futures Trading Commission (“CFTC”) originally in December 2013, and substantive portions were subsequently amended in November 2019 and July 2020. The Volcker Rule restricts the ability of banking entities to conduct certain proprietary trading activities, which means trading in securities and other financial instruments, such as derivatives, for their own account, subject to certain exceptions, including market-making, risk-mitigating hedging, and underwriting, unless such activities are conducted within a rigorous compliance framework. The Volcker Rule also restricts banking entities from engaging in certain activities regarding hedge funds and private equity funds known as covered funds, subject to certain exceptions. The Volcker Rule excludes restrictions on such activities if they are conducted solely outside of the United States. The Volcker Rule requires banking entities to implement policies, procedures, and quantitative metrics reporting that are reasonably designed to ensure and monitor compliance with the restrictions under the Volcker Rule. Our proprietary trading and covered funds activities are generally executed outside of the United States, but certain activities are conducted within the United States, and, therefore, we have undertaken steps that we believe are appropriate to bring our activities and investments into compliance with the Volcker Rule. Given its complexity, the Volcker Rule may be subject to further rule-making and regulatory interpretation in the future. 45 Table of Contents U.S. regulators continue to issue final regulations and regulatory determinations governing swaps and derivatives markets as contemplated by the Dodd-Frank Act. To date, MUFG Bank and MUFG Securities EMEA plc have registered as swap dealers with the CFTC. In addition, MUFG Securities EMEA plc is also registered with the SEC as a securities-based swap dealer. Depending on the finalization of regulations and regulatory determinations governing swaps and derivatives markets under the Dodd-Frank Act, as well as the activities of our other subsidiaries located inside and outside of the United States, our other subsidiaries may have to register as swap dealers with, or be subject to the regulations of, the CFTC and/or SEC. Regulation of swap dealers by the CFTC and security-based swap dealers by the SEC imposes numerous corporate governance, business conduct, capital, margin, reporting, clearing, execution, and other regulatory requirements on our operations, which may adversely impact our derivatives businesses and make us less competitive than those competitors that are not subject to the same regulations. On July 23, 2020, the CFTC voted to approve final rules that modify and codify the cross-border application of certain of its Title VII swap rules to both U.S. and non-U.S. registered swap dealers. Similarly, the SEC has adopted a package of rule amendments, guidance, and a related order designed to expand and clarify the framework for regulating cross-border security-based swaps, including single-name credit default swaps. We have implemented measures designed to comply with the relevant rules and regulations by the prescribed compliance dates while continuing to consider the effects of other proposed rules and final regulatory changes. On June 14, 2018, the FRB approved a final rule regarding single counterparty credit limits, or SCCL, for large banking organizations. The SCCL final rule was considered the last major piece of regulatory action needed to implement Section 165(e) of the Dodd-Frank Act. Section 165(e) was a response to the concern that failure or financial distress of one large, interconnected financial institution could cascade through the U.S. financial system and impair the financial condition of that firm’s counterparties, including other large, interconnected firms. Section 165(e) generally, and the SCCL final rule specifically, seek to mitigate this risk by limiting the aggregate exposure among such financial institutions and their counterparties. In July 2021, MUFG’s CUSO began complying with its CUSO-level requirements by certifying as to home-country compliance with Basel Committee standards in lieu of complying with the final U.S. SCCL rule. On October 10, 2019, the FRB issued jointly with the FDIC a final rule amending their prior joint rule implementing the resolution planning requirements of Section 165(d) of the Dodd-Frank Act. Resolution plans, also known as living wills, describe a firm’s strategy for orderly resolution under appropriate insolvency regimes. Such resolution would be caused by a material financial distress or failure of the firm. As informed by the framework set forth under the FRB Tailoring Rule, the resolution plan final rule tailors the resolution planning requirements for firms that do not pose the same systemic risk as the largest institutions. The classification of MUFG’s CUSO as a triennial full filer applies to large foreign and U.S. banks classified within Category II and Category III of the FRB Tailoring Rule, and is subject to alternating submissions of full and targeted resolution plans. On July 30, 2024, the FRB and FDIC issued final guidance to enhance resolution planning at large U.S. and non-U.S. banking organizations with more than $250 billion in total assets, which are classified as triennial full filers. Under this guidance, the submission date for the full resolution plan required of triennial filers was extended to October 1, 2025, on which date, MUFG filed a plan that continued to adopt a multiple point of entry resolution strategy ("MPOE") for its U.S. operations, as done in prior filings. The final guidance confirms that the subsequent filing date of a targeted plan for triennial filers like MUFG is July 1, 2028, and future plan submissions will be due every three years thereafter, alternating between full and targeted resolution plans. On January 30, 2020, the FRB adopted a final rule revising the “controlling influence” prong of its “control” rules under the BHCA. The final rule reaffirms the FRB's conceptual framework for analyzing “controlling influence”, and incorporates many of the elements of the prior control regulatory framework while clarifying or rejecting others. The issue of “control” is a central concept under the BHCA. Among other things, control determines whether an investor in a banking organization is subject to the requirements and restrictions of the BHCA, whether a bank holding company’s investment in a company is permissible and/or subjects the investee company to the requirements and restrictions of the BHCA, and whether an investor in a banking organization is subject to the Volcker Rule. As a result, a determination of whether or not an investment constitutes “control” of, or even a non-passive holding in, an investee is often determinative of whether an investment can be made (or, at least, must be restructured to avoid control or reduced to a passive holding). The final rule was effective as of September 30, 2020, and applies to MUFG’s investments globally. Foreign Account Tax Compliance Act. The Hiring Incentives to Restore Employment Act was enacted in March 2010 and contains provisions commonly referred to as the Foreign Account Tax Compliance Act, or FATCA. The U.S. Treasury, acting through the Internal Revenue Service, or the IRS, issued final FATCA regulations in January 2013, which have been updated along with related guidance issued since February 2014. FATCA created a new reporting and withholding regime for U.S. withholding agents and foreign financial institutions, or FFIs, and certain non-financial foreign entities, or NFFEs. In addition, the FATCA framework has been augmented with the introduction of Intergovernmental Agreements, or IGAs, between the U.S. Treasury and various foreign governments, which are intended to support intergovernmental cooperation to facilitate the implementation of FATCA. The United States has entered into various IGAs with non-U.S. jurisdictions including Japan, some of which became effective as of July 1, 2014. Consistent with FATCA, we have assessed and determined if our group entities are U.S. withholding agents, FFIs, or NFFEs. Each identified U.S. withholding agent and FFI has also evaluated pre-existing and new entity accounts to the extent required to determine their respective FATCA classifications. We have continuously developed internal procedures and processes that we believe comply with the regulatory requirements under FATCA. 46 Table of Contents However, FATCA compliance has required us to develop extensive systems capabilities and internal processes to identify and report U.S. account holders who are subject to FATCA requirements, which has been a complex and costly process requiring significant internal resources. If our procedures and processes are determined not to comply with the requirements of FATCA, we could potentially be subject to serious adverse consequences, including the imposition of withholding taxes on certain amounts payable to us from U.S. sources, and could be required to expend additional resources to enhance our systems, procedures and processes and take other measures in response to such consequences. Disclosure pursuant to Section 13(r) of the US Securities Exchange Act of 1934 We are disclosing the following information pursuant to Section 13(r) of the Securities Exchange Act of 1934 (Exchange Act), which requires an issuer to disclose whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with natural persons or entities designated by the U.S. government under specified Executive Orders. The scope of activities that must be reported includes activities not prohibited by U.S. law and conducted outside the United States in compliance with applicable local law. During the fiscal year ended March 31, 2026, our non-U.S. subsidiary, MUFG Bank, engaged in certain limited business activities with entities in, or affiliated with, Iran, including counterparties owned or controlled by the Iranian government. Specifically, our non-U.S. banking subsidiary, MUFG Bank, has previously issued guarantees outstanding mainly in connection with prior petroleum-related transactions with Iran by its customers that were permissible under applicable sanctions regulations. These transactions did not involve U.S. dollars or clearing services of U.S. banks for the settlement of payments. For the fiscal year ended March 31, 2026, the aggregate fee income relating to these transactions was less than ¥5 million, representing less than 0.0005 percent of our total fee income. In addition, some Iranian financial institutions and other entities in, or affiliated with, Iran maintained non-U.S. dollar correspondent accounts and other similar settlement accounts with MUFG Bank outside the United States. In addition to such accounts, MUFG Bank received deposits in Japan from, and provided settlement services in Japan to, fewer than 10 Iranian government-related entities, and MUFG Bank and a non-U.S. affiliate of MUFG provided credit and/or settlement services to fewer than 100 Iranian government-related individuals including Iranian diplomats. MUFG Bank also maintains settlement accounts outside the United States for certain other entities specified in Executive Order 13224, which settlement accounts were frozen in accordance with applicable laws and regulations. For the fiscal year ended March 31, 2026, the average aggregate balance of deposits held in these accounts represented less than 0.05 percent of the average balance of our total deposits. The interest and fee income from the transactions attributable to these account holders was less than ¥50 million, representing less than 0.001 percent of our total interest and fee income. We recognize that following the withdrawal in May 2018 by the United States from the Joint Comprehensive Plan of Action, the United States has imposed secondary sanctions against non-U.S. persons who engage in or facilitate a broad range of transactions and activities involving Iran. We have taken this into account and will continue to monitor transactions relating to Iran in order to comply with applicable U.S. and Japanese regulations as well as U.S., Japanese and other international sanctions. 47 Table of Contents C.Organizational Structure 48 Table of Contents Set forth below is a list of our principal consolidated subsidiaries as of March 31, 2026 Name Country ofIncorporation Proportion ofOwnershipInterest(%) Proportion ofVotingInterest(%) MUFG Bank, Ltd. Japan 100.00 % 100.00 % WealthNavi Inc. Japan 100.00 % 100.00 % Mitsubishi UFJ eSmart Securities Co,. Ltd. Japan 100.00 % 100.00 % Kanmu, Inc. Japan 82.07 % 73.10 % Mitsubishi UFJ Trust and Banking Corporation Japan 100.00 % 100.00 % Mitsubishi UFJ Real Estate Services Co., Ltd. Japan 100.00 % 100.00 % Japan Shareholder Services Ltd. Japan 100.00 % 100.00 % The Master Trust Bank of Japan, Ltd. Japan 46.50 % 46.50 % Mitsubishi UFJ Real Estate Asset Management Co., Ltd. Japan 100.00 % 100.00 % Mitsubishi UFJ Alternative Investments Co., Ltd. Japan 100.00 % 100.00 % Human Resources Governance Leaders Co., Ltd. Japan 100.00 % 100.00 % Mitsubishi UFJ Securities Holdings Co., Ltd. Japan 100.00 % 100.00 % Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. Japan 60.00 % 60.00 % Mitsubishi UFJ NICOS Co., Ltd. Japan 100.00 % 100.00 % Japan Digital Design, Inc Japan 94.19 % 94.19 % MUFG Innovation Partners Co., Ltd. Japan 100.00 % 100.00 % Mitsubishi UFJ Asset Management Co., Ltd. Japan 100.00 % 100.00 % MUFG Securities (Canada), Ltd. Canada 100.00 % 100.00 % MUFG Americas Holdings Corporation USA 100.00 % 100.00 % MUFG Securities EMEA plc UK 100.00 % 100.00 % Bank of Ayudhya Public Company Limited Thailand 76.88 % 76.88 % PT Bank Danamon Indonesia Tbk Indonesia 92.47 % 92.47 % PT Adira Dinamika Multi Finance Tbk Indonesia 94.17 % 93.41 % Mitsubishi UFJ Baillie Gifford Asset Management Limited UK 51.00 % 51.00 % Mitsubishi UFJ Investor Services & Banking (Luxembourg) S.A. Luxembourg 100.00 % 100.00 % MUFG Lux Management Company S.A. Luxembourg 100.00 % 100.00 % Mitsubishi UFJ Asset Management (UK) Ltd. UK 100.00 % 100.00 % MUFG Investor Services Holdings Limited Bermuda 100.00 % 100.00 % First Sentier Group Limited Australia 100.00 % 100.00 % MUFG Pension & Market Services Holdings Pty Limited Australia 100.00 % 100.00 % 49 Table of Contents D.Property, Plant and Equipment As of March 31, 2025 2026 (in millions) Land ¥ 406,470 ¥ 512,220 Buildings 794,868 848,904 Equipment and furniture 561,926 595,226 Leasehold improvements 284,171 306,522 Construction in progress 34,007 46,896 Total 2,081,442 2,309,768 Less accumulated depreciation 1,161,588 1,224,911 Premises and equipment—net ¥ 919,854 ¥ 1,084,857 Our registered address is 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8330, Japan. As of March 31, 2026, we and our subsidiaries conducted our operations either in premises we owned or in properties we leased. We decided to build a new MUFG headquarters building at the location where the MUFG and MUFG Bank head office building stood previously. In conjunction with the construction of the new building, the head offices for MUFG and MUFG Bank have been temporarily relocated from 7-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo. The construction of the headquarters building is scheduled to be completed in October 2030, with a total planned investment of ¥209 billion, subject to adjustments due to changes in relevant circumstances. Through March 31, 2026, an aggregate of ¥4.6 billion was invested in the construction project. The following table presents the book values of our material offices and other properties as of March 31, 2026: Book Value (in millions) Owned land ¥ 512,220 Owned buildings ¥ 273,768 The buildings and land we own are primarily used by us and our subsidiaries as offices and branches. Most of the buildings and land we own are free from material encumbrances. During the fiscal year ended March 31, 2026, premises and equipment increased, primarily reflecting the consolidation of newly established special purpose entities, such as real estate trusts, which hold these properties.

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