UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Private Issuer

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

the Securities Exchange Act of 1934

For the month of February 2020

Commission File No. 000-54189

 

 

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

 

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

Tokyo 100-8330, Japan

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or

will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F      X        Form 40-F                  

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

 

 

 

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-229697) OF MITSUBISHI UFJ FINANCIAL GROUP, INC. AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED WITH OR FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 14, 2020

 

English Translation of Excerpts from Quarterly Securities Report Filed in Japan

This document is an English translation of selected information included in the Quarterly Securities Report for the quarter ended December 31, 2019 filed by Mitsubishi UFJ Financial Group, Inc. (“MUFG” or “we”) with the Kanto Local Financial Bureau, the Ministry of Finance of Japan, on February 14, 2020 (the “Quarterly Securities Report”). An English translation of certain information included in the Quarterly Securities Report was previously submitted in a report on Form 6-K dated February 4, 2020. Accordingly, this document should be read together with the previously submitted report.

The Quarterly Securities Report has been prepared and filed in Japan in accordance with applicable Japanese disclosure requirements as well as generally accepted accounting principles in Japan (“J-GAAP”). There are significant differences between J-GAAP and generally accepted accounting principles in the United States. In addition, the Quarterly Securities Report is intended to update prior disclosures filed by MUFG in Japan and discusses selected recent developments in the context of those prior disclosures. Accordingly, the Quarterly Securities Report may not contain all of the information that is important to you. For a more complete discussion of the background to information provided in the Quarterly Securities Report disclosure, please see our annual report on Form 20-F for the fiscal year ended March 31, 2019 and the other reports filed with or submitted to the U.S. Securities and Exchange Commission by MUFG.

Risks Relating to Our Business

We describe below some major developments and changes to update our risk factor disclosure previously included in our annual securities report for the fiscal year ended March 31, 2019 filed in Japan on June 27, 2019. The updates below are not a complete update of the prior disclosure, but instead intended to explain only the significant developments and changes that we believe may have a material impact on the risks to our business and other risks. The discussion below contains forward-looking statements, which, unless specifically described otherwise, reflect our understanding as of the date of filing of the Quarterly Securities Report.

The numbering of the subheading of the risk disclosure below corresponds to the numbering of the subheading of the same risk disclosure in “Risks Relating to Our Business” in our most recent annual securities report filed in Japan.

 

20.	Risks relating to regulatory developments or changes in laws or rules, including accounting rules, governmental policies and economic controls

We conduct our business subject to current regulations (including laws, regulations, accounting standards, policies, customary business practices and interpretations in Japan and other regions where we operate, as well as global financial regulatory standards) and risks associated with changes in such regulations. Future regulatory changes and situations arising as a result of regulatory changes, such as the ongoing benchmark rate reforms, may adversely impact our business, financial condition and results of operations. However, the type, nature and extent of the impact of any future regulatory changes and situations that may arise as a result are difficult to predict and beyond our control.

 

1

Additional Japanese GAAP Financial Information for the Nine Months Ended December 31, 2019

 

1.	Changes in the Scope of Consolidation or Application of the Equity Method

 

I.

Significant changes in the scope of consolidation

PT Bank Danamon Indonesia, Tbk. was newly included in the scope of consolidation due to the transfer from the scope of application of the equity method.

Colonial First State Asset Management (Australia) Limited and 8 other companies were newly included in the scope of consolidation as a result of share acquisitions. On September 16, 2019, the nine companies and their subsidiaries rebranded themselves as First Sentier Investors (“FSI”) in Australia.

 

II.

Significant changes in the scope of application of the equity method

PT Bank Danamon Indonesia, Tbk. was excluded from the scope of application of the equity method due to the transfer to the scope of consolidation.

 

2

2.	Consolidated Balance Sheets

 

I.	Risk-monitored loans included in “Loans and bills discounted”

 

		(in millions of yen)
		March 31, 2019				December 31, 2019
Loans to bankrupt borrowers		¥	46,597			¥	36,474
Non-accrual delinquent loans			586,487				638,357
Accruing loans contractually past due 3 months or more			18,600				18,187
Restructured loans			315,406				374,959
Total		¥	967,092			¥	1,067,979

The amounts above represent gross amounts before the deduction of allowance for credit losses.

 

II.	The principal amount of money trusts entrusted to domestic trust banking subsidiaries, for which repayment of the principal to the customers was guaranteed

 

		(in millions of yen)
		March 31, 2019				December 31, 2019
Principal-guaranteed money trusts		¥	7,617,688			¥	6,472,671

 

III.	Guarantee obligations for private placement bonds (provided in accordance with Article 2-3 of the Financial Instruments and Exchange Law) among the bonds and other securities included in “Securities”

 

		(in millions of yen)
		March 31, 2019				December 31, 2019
Guarantee obligations for private placement bonds		¥	394,626			¥	324,553

 

IV.	Contingent liabilities

(Litigation)

In the ordinary course of business, MUFG is subject to various litigation and regulatory matters. In accordance with applicable accounting guidance, MUFG establishes a Reserve for Contingent Losses arising from litigation and regulatory matters when they are determined to be probable in their occurrences and the probable loss amount can be reasonably estimated. Based upon current knowledge and consultation with counsel, management believes the eventual outcome of such litigation and regulatory matters, where losses are probable and the probable loss amounts can be reasonably estimated, would not have a material adverse effect on MUFG’s financial position, results of operations or cash flows.

Management also believes the amount of loss that is reasonably possible, but not probable, from various litigation and regulatory matters is not material to MUFG’s financial position, results of operations or cash flows.

 

3

3.	Consolidated Statements of Income

 

I.	“Other ordinary income” for the periods indicated included the following:

 

		(in millions of yen)
		For the nine months ended December 31,
		2018				2019
Equity in earnings of the equity method investees		¥	241,879			¥	220,880
Gains on sales of equity securities			113,861				117,937

 

II.	“Other ordinary expenses” for the periods indicated included the following:

 

		(in millions of yen)
		For the nine months ended December 31,
		2018				2019
Write-offs of loans		¥	111,216			¥	115,042

 

III.	(Additional information)

“Losses on impairment of fixed assets” included an impairment loss on goodwill of ¥26,774 million recognized by an overseas subsidiary in connection with its business acquisitions.

The overseas subsidiary groups its assets based on business category. During the three months ended December 31, 2019, due to the decline in interest rates in the United States, the projected profitability mainly related to the subsidiary’s lending services was reevaluated, and a goodwill impairment test was performed in accordance with U.S. GAAP. As a result, it was determined that the carrying amount of a portion of the goodwill allocated to the Global Commercial Banking Business Group, the relevant reporting segment of MUFG, exceeded the fair value of such goodwill, and, to the extent of such excess, an impairment loss was recorded. The fair value was estimated using a combination of the income approach based on the projected profitability and the market approach.

 

IV.

“Amortization of goodwill” was recorded in connection with an impairment loss due to the decline in the market price of a subsidiary’s equity securities held through a consolidated domestic banking subsidiary, in accordance with the provisions of Paragraph 32 of the Japanese Institute of Certified Public Accountants (“JICPA”) Accounting Committee Report No. 7 “Practical Guidelines on the Capital Consolidation Procedure in Consolidated Financial Statements” (May 12, 1998).

 

4

4.	Consolidated Statements of Cash Flows

No consolidated statements of cash flows have been prepared for the nine-month periods ended December 31, 2018 and 2019. Depreciation (including amortization of intangible assets other than goodwill) and amortization of goodwill for the periods indicated were as follows:

 

		(in millions of yen)
		For the nine months ended December 31,
		2018				2019
Depreciation		¥	239,140			¥	244,762
Amortization of goodwill			13,392				227,206

 

5

5.	Shareholders’ Equity

For the nine months ended December 31, 2018

 

I.	Cash dividends

 

Date of approval

Type of stock

Total dividends (in millions of yen)

Dividend per share (in yen)

Dividend record date

Effective date

Source of dividends

Annual General Meeting of Shareholders on June 28, 2018

Common stock

131,934

10

March 31, 2018

June 29, 2018

Retained earnings

Meeting of Board of Directors on November 13, 2018

Common stock

144,314

11

September 30, 2018

December 5, 2018

Retained earnings

 

II.	Dividends the record date for which fell within the nine-month period and the effective date of which was after the end of the nine-month period

None.

For the nine months ended December 31, 2019

 

I.	Cash dividends

 

Date of approval

Type of stock

Total dividends (in millions of yen)

Dividend per share (in yen)

Dividend record date

Effective date

Source of dividends

Annual General Meeting of Shareholders on June 27, 2019

Common stock

142,552

11

March 31, 2019

June 28, 2019

Retained earnings

Meeting of Board of Directors on November 13, 2019

Common stock

161,991

12.5

September 30, 2019

December 5, 2019

Retained earnings

 

II.	Dividends the record date for which fell within the nine-month period and the effective date of which was after the end of the nine-month period

None.

 

6

6.	Segment Information

 

I.	Business segment information

 

(1)	Information on net revenue and operating profit (loss) for each reporting segment

For the nine months ended December 31, 2018

 

		(in millions of yen)
		For the nine months ended December 31, 2018
		Retail & Commercial Banking Business Group				Japanese Corporate & Investment Banking Business Group				Global Corporate & Investment Banking Business Group				Global Commercial Banking Business Group				Asset Management & Investor Services Business Group				Total of Customer Business				Global Markets Business Group				Other				Total
Net revenue		¥	1,128,390			¥	395,199			¥	292,326			¥	526,252			¥	154,164			¥	2,496,332			¥	376,029			¥	24,910			¥	2,897,273
Operating expenses			911,662				228,620				179,003				367,706				92,454				1,779,448				171,349				109,989				2,060,787
Operating profit (loss)		¥	216,727			¥	166,578			¥	113,322			¥	158,545			¥	61,709			¥	716,883			¥	204,680			¥	(85,078	)		¥	836,485

(Notes)

 

1.	“Net revenue” in the above table is used in lieu of net sales generally used by Japanese non-financial companies.

2.	“Net revenue” includes net interest income, trust fees, net fees and commissions, net trading profit, and net other operating profit.

3.	“Operating expenses” includes personnel expenses and premise expenses.

For the nine months ended December 31, 2019

 

		(in millions of yen)
		For the nine months ended December 31, 2019
		Retail & Commercial Banking Business Group				Japanese Corporate & Investment Banking Business Group				Global Corporate & Investment Banking Business Group				Global Commercial Banking Business Group				Asset Management & Investor Services Business Group				Total of Customer Business				Global Markets Business Group				Other				Total
Net revenue		¥	1,101,115			¥	401,055			¥	290,837			¥	575,468			¥	167,112			¥	2,535,589			¥	447,083			¥	26,825			¥	3,009,498
Operating expenses			894,454				236,555				184,824				416,195				115,946				1,847,975				170,352				112,452				2,130,781
Operating profit (loss)		¥	206,660			¥	164,499			¥	106,013			¥	159,273			¥	51,165			¥	687,613			¥	276,730			¥	(85,626	)		¥	878,717

(Notes)

 

1.	“Net revenue” in the above table is used in lieu of net sales generally used by Japanese non-financial companies.

2.	“Net revenue” includes net interest income, trust fees, net fees and commissions, net trading profit, and net other operating profit.

3.	“Operating expenses” includes personnel expenses and premise expenses.

 

7

(2)	Reconciliation of the total operating profit in each of the above tables to the ordinary profit in the consolidated statement of income for the corresponding nine-month period

 

		(in millions of yen)
		For the nine months ended December 31,
		2018				2019
Total operating profit of reporting segments		¥	836,485			¥	878,717
Operating profit of consolidated subsidiaries excluded from reporting segments			14,246				10,328
Provision for general allowance for credit losses			—				(42,560	)
Credit related expenses			(99,636	)			(111,424	)
Gains on reversal of allowance for credit losses			69,155				—
Gains on reversal of reserve for contingent losses included in credit costs			48,521				6,481
Gains on loans written-off			49,261				63,206
Net gains on equity securities and other securities			84,615				53,500
Equity in earnings of the equity method investees			241,879				220,880
Others			(59,651	)			3,376
Ordinary profit in the consolidated statement of income		¥	1,184,876			¥	1,082,505

 

(3)	Changes in the method of calculation of operating profit (loss) for each reporting segment

From the nine months ended December 31, 2019, MUFG has changed the method of allocation of net revenue and operating expenses among reporting segments and has accordingly changed the method of calculation of operating profit (loss) of each reporting segment.

The business segment information for the nine months ended December 31, 2018 has been restated based on the new calculation method.

 

(4)	Information on impairment losses on long-lived assets or goodwill by reporting segment

(Significant change in the amount of goodwill)

In the Global Commercial Banking Business Group, “Amortization of goodwill” was recorded as extraordinary losses in connection with an impairment loss due to the decline in the market price of a subsidiary’s equity securities held through a consolidated domestic banking subsidiary in accordance with the provisions of Paragraph 32 of JICPA According Committee Report No. 7 “Practical Guidelines on the Capital Consolidation Procedure in Consolidated Financial Statements” (May 12, 1998). As a result, the balance of goodwill decreased by ¥207,425 million.

In the Asset Management & Investor Service Business Group, for the second quarter ended September 30, 2019, goodwill of ¥245,386 million was recognized on a preliminary basis. However, in the third quarter ended December 31, 2019, post-acquisition price adjustments and allocation of acquisition cost were updated. As a result, intangible fixed assets were recognized, resulting in a decrease in goodwill of ¥61,272 million. For more information, see “11. Business Combinations.”

 

8

7.	Financial Instruments

There are no material changes to be disclosed as of December 31, 2019 compared to March 31, 2019.

 

8.	Securities

There are no material changes to be disclosed as of December 31, 2019 compared to March 31, 2019.

 

9.	Money Held in Trust

There are no material changes to be disclosed as of December 31, 2019 compared to March 31, 2019.

 

9

10.	Derivatives

The following shows those derivatives as of December 31, 2019 which were deemed material in the management of our group company businesses and showed material changes as compared to those as of March 31, 2019.

 

I.	Interest rate-related derivatives

 

				(in millions of yen)
				March 31, 2019
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchanges		Interest rate futures		¥	9,674,566			¥	(1,720	)		¥	(1,720	)
		Interest rate options			25,242,324				3,134				(307	)
Over-the-counter		Forward rate agreements			93,293,925				222				222
(“OTC”) transactions		Interest rate swaps			1,093,092,633				315,379				315,379
		Interest rate swaptions			48,329,182				(120,578	)			67,843
		Other			7,172,215				9,761				(3,296	)
		Total			—			¥	206,198			¥	378,120

(Notes)

 

1.	The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.

Those derivatives transactions to which the hedge accounting is applied as described in JICPA Industry Audit Committee Report No. 24 “Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in the Banking Industry” (February 13, 2002) (“JICPA Industry Audit Committee Report No. 24”) and other relevant standards are excluded from the above table.

 

				(in millions of yen)
				December 31, 2019
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchanges		Interest rate futures		¥	13,935,706			¥	(2,678	)		¥	(2,678	)
		Interest rate options			28,174,836				(1,997	)			(268	)
OTC transactions		Forward rate agreements			133,066,994				(268	)			(268	)
		Interest rate swaps			1,115,121,708				550,240				550,240
		Interest rate swaptions			54,723,785				(77,803	)			93,075
		Other			7,906,711				10,056				(1,219	)
		Total			—			¥	477,549			¥	638,881

(Notes)

 

1.	The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.	Those derivatives transactions to which the hedge accounting is applied as described in JICPA Industry Audit Committee Report No. 24 and other relevant standards are excluded from the above table.

 

10

II.	Equity-related derivatives

 

				(in millions of yen)
				March 31, 2019
Classification		Type of transaction		Contract amount				Fair value				Valuation   gains (losses)
Transactions listed on exchanges		Stock index futures		¥	655,562			¥	3,979			¥	3,979
		Stock index options			2,005,023				(40,326	)			8,145
OTC transactions		OTC securities option transactions			1,092,998				11,422				29,415
		OTC securities index swap transactions			1,508,465				77,112				77,112
		Forward transactions in OTC securities indexes			19,194				(104	)			(104	)
		Total			—			¥	52,082			¥	118,547

(Notes)

 

1.	The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.	Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

				(in millions of yen)
				December 31, 2019
Classification		Type of transaction		Contract amount				Fair value				Valuation   gains (losses)
Transactions listed on exchanges		Stock index futures		¥	554,733			¥	3,493			¥	3,493
		Stock index options			2,130,742				(26,312	)			15,486
OTC transactions		OTC securities option transactions			1,106,828				11,944				25,807
		OTC securities index swap transactions			1,964,035				24,288				24,288
		Forward transactions in OTC securities indexes			37,217				(1,321	)			(1,321	)
		Total			—			¥	12,093			¥	67,755

(Notes)

 

1.	The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.	Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

11

III.	Bond-related derivatives

 

				(in millions of yen)
				March 31, 2019
Classification		Type of transaction		Contract amount				Fair value				Valuation   gains (losses)
Transactions listed on exchange		Bond futures		¥	1,349,371			¥	(4,719	)		¥	(4,719	)
		Bond futures options			3,794,762				1,388				(2,935	)
OTC transactions		Bond OTC options			217,083				(547	)			(576	)
		Bond forward contracts			965,095				(4,991	)			(4,991	)
		Bond OTC swaps			408,150				6,637				6,637
		Total return swaps			236,994				3,464				3,464
		Total			—			¥	1,232			¥	(3,120	)

(Notes)

 

1.	The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.	Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

				(in millions of yen)
				December 31, 2019
Classification		Type of transaction		Contract amount				Fair value				Valuation   gains (losses)
Transactions listed on exchange		Bond futures		¥	3,084,899			¥	(1,774	)		¥	(1,774	)
		Bond futures options			8,266,881				2,275				(3,047	)
OTC transactions		Bond OTC options			184,837				0				(1	)
		Bond forward contracts			2,864,219				575				575
		Bond OTC swaps			389,761				(2,895	)			(2,895	)
		Total return swaps			204,033				3,216				3,216
		Total			—			¥	1,397			¥	(3,927	)

(Notes)

 

1.	The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

2.	Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

12

11.	Business Combinations

Business combination through acquisition

(Acquisition of Aviation Finance Lending Division from DVB Bank)

On November 18, 2019, MUFG Bank, Ltd. (“the Bank”), a consolidated subsidiary of MUFG, completed its acquisition (the “Transaction”) from DVB Bank SE in Germany (“DVB”) of DVB’s aviation finance lending portfolio, employees and other parts of the operating infrastructure based on an agreement among DVB, the Bank and BOT Lease Co., Ltd., an equity method affiliate of both MUFG and the Bank.

 

I.

Overview of the business combination

 

(1)

Name of counterparty and business description

Name of counterparty              DVB Bank SE

Business description                Aviation financing

 

(2)

Main objectives of the business combination

The Transaction is intended to improve MUFG’s ability to offer solutions to MUFG’s clients by enhancing MUFG’s Global Corporate Investment Banking Business platform in terms of higher returns, portfolio diversification, broadening MUFG’s customer base and securing experienced professionals through the Transaction.

 

(3)

Date of the business combination

November 18, 2019

 

(4)

Legal form of the business combination

Acquisition of business

 

II.

Period in which the operating results of the acquired business were reflected in the consolidated statements of income

 

The operating results of the acquired business from November 18, 2019 to December 31, 2019 were included in the consolidated statements of income.

 

III.

Acquisition cost relating to the acquisition and components thereof

 

Consideration for the acquired business		Cash		¥	514,869 million
Acquisition cost				¥	514,869 million

 

The acquisition cost relating to the acquisition has not been determined, and the amount shown above has been calculated on a preliminary basis.

 

IV.

Amount of goodwill recorded, reason for goodwill recorded, amortization method and amortization period

 

(1)

Amount of goodwill recorded

 

¥22,775

million

The amount of goodwill has been calculated on a preliminary basis since allocation of acquisition cost is yet to be completed.

 

(2)

Reason for goodwill recorded

The recorded goodwill reflected expected increases in profits from future business operations.

 

(3)

Amortization method and amortization period

Straight-line method over 20 years

 

13

(Additional Information)

(Colonial First State Group Limited Subsidiaries became consolidated subsidiaries through a share acquisition)

On August 2, 2019, Mitsubishi UFJ Trust and Banking Corporation (“the Trust Bank”), a consolidated subsidiary of MUFG, acquired 100% of the shares in each of nine subsidiaries of Colonial First State Group Limited from Australian financial group Commonwealth Bank of Australia and its wholly-owned subsidiary Colonial First State Group Limited, and the nine subsidiaries became consolidated subsidiaries of MUFG and the Trust Bank.

On September 16, 2019, the nine subsidiaries and their subsidiaries rebranded themselves as First Sentier Investors (“FSI”) in Australia.

As of September 30, 2019, post-acquisition price adjustments, determination of identifiable assets, liabilities and their fair value, and allocation of acquisition cost were yet to be completed.

Accordingly, the business combination transaction was accounted for, on a preliminary basis, based on information reasonably available as of the same date.

In the third quarter ended December 31, 2019, post-acquisition price adjustments and allocation of acquisition cost were updated based on reasonably available information.

As a result, intangible fixed assets related to customer relationship of ¥97,204 million were recognized, resulting in a decrease in goodwill of ¥61,272 million from ¥245,386 million as of September 30, 2019 to ¥184,114 million as of December 31, 2019.

As of December 31, 2019, post-acquisition price adjustments and allocation of acquisition cost were still yet to be completed. Accordingly, the business combination transaction was accounted for, on a preliminary basis, based on information reasonably available as of the same date.

 

14

12.	Per Share Information

The bases for the calculation of basic earnings per common share and diluted earnings per common share for the periods indicated were as follows:

 

		(in yen)
		For the nine months ended December 31,
		2018				2019
Basic earnings per common share		¥	66.67			¥	45.23
Diluted earnings per common share			66.43				45.07
		(in millions of yen)
		For the nine months ended December 31,
		2018				2019
Profits attributable to owners of parent		¥	872,232			¥	584,278
Profits not attributable to common shareholders			—				—
Profits attributable to common shareholders of parent			872,232				584,278
		(in thousands)
		For the nine months ended December 31,
		2018				2019
Average number of common shares during the periods			13,081,212				12,916,075
		(in millions of yen)
		For the nine months ended December 31,
		2018				2019
Diluted earnings per share
Adjustments to profits attributable to owners of parent		¥	(3,194	)		¥	(2,142	)
Adjustments related to dilutive shares of consolidated subsidiaries and others			(3,194	)			(2,142	)
		(in thousands)
		For the nine months ended December 31,
		2018				2019
Increase in common shares			484				166

 

		For the nine months ended December 31,
		2018		2019
Description of antidilutive securities which were not included in the calculation of diluted earnings per common share but which materially changed after the end of the previous fiscal year		—		Share subscription rights issued by equity method affiliates: Morgan Stanley Stock options and others — 2 million units as of September 30, 2019

 

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13.	Subsequent Events

 

I.

Cancellation of Own Shares

Based on a resolution of the Board of Directors on November 13, 2019, MUFG cancelled own shares on January 20, 2020 in accordance with the provisions of Article 178 of the Company Act.

 

(1)

Reason of the cancellation: To enhance shareholder returns, improve capital efficiency and conduct capital management flexibly

 

(2)

Type of shares canceled: Common shares of MUFG

 

(3)

Number of shares canceled: 85,775,400 shares (equivalent to 0.62% of the total number of shares issued before the cancellation)

 

(4)

Cancellation date: January 20, 2020

 

II.

Redemption of Preferred Securities

MUFG approved redemption of all of the preferred securities (“Non-dilutive Preferred Securities”) issued by an overseas special purpose company, which is a subsidiary of MUFG on December 3, 2019, and the Non-dilutive Preferred Securities were redeemed on January 27, 2020.

An outline of the redeemed Non-dilutive Preferred Securities is as follows.

 

Issuer		MUFG Capital Finance 9 Limited
Type of securities		Series A JPY-denominated fixed/floating rate non-cumulative preferred securities		Series B JPY-denominated fixed/floating rate non-cumulative preferred securities
		The Non-dilutive Preferred Securities rank, as to rights to a liquidation preference, effectively pari passu with the preferred shares issued by MUFG which rank most senior in priority of payment as to liquidation distribution.
Maturity		Perpetual Provided, however, that the issuer may, at its discretion, redeem all or part of the Non-dilutive Preferred Securities on a dividend payment date in January 2020 or thereafter.
Dividends		Dividend Rate 4.52% per annum (Fixed rate until January 2020) Floating rate after January 2020		Dividend Rate 4.02% per annum (Fixed rate until January 2020) Floating rate after January 2020
Issue amount		JPY 130,000,000,000		JPY 110,000,000,000
Issue date		July 29, 2009
Redemption amount		JPY 130,000,000,000		JPY 110,000,000,000
Redemption price		JPY 10,000,000 per preferred security(equal to the issue price)

 

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