Ken Takamiya's questions to MITSUBISHI UFJ FINANCIAL GROUP (MUFG) leadership • Q2 2024
Question
Asked for the reasoning behind the JPY 400 billion share buyback and its implications for future capital policy, and why the full-year guidance was kept unchanged despite strong first-half performance.
Answer
The JPY 400 billion share buyback was decided based on the CET1 capital level and a more stable market environment compared to May. The capital management policy remains focused on a target range, with surplus capital allocated to growth or shareholder returns. The full-year guidance was maintained because Treasury profits were front-loaded in the first half, and the second half is expected to align with the initial plan. The positive impact from the weaker yen is being used to offset losses on foreign bonds to improve the balance sheet's profitability, and the JPY 1.3 trillion target is kept to ensure the 7.5% ROE goal is met.