Maoki Matsuno

Maoki Matsuno asked for a detailed breakdown of the JPY 100 billion upward revision to the FY2025 financial targets, specifically identifying factors like customer segment performance, equity method investees, and financial indicators. He also questioned the operational policy for global markets in the second half, particularly regarding yen and foreign bond management.

Answer

Jun Togawa, Group CFO, attributed the JPY 100 billion revision to approximately JPY 30 billion from the customer segment NOP, a certain amount from Morgan Stanley's equity-accounted earnings, JPY 40 billion from one-off gains, and JPY 30 billion from financial indicators, mainly the weak yen. For global markets, Togawa stated the policy remains to gradually build yen bond positions while monitoring policy rates, noting a decrease in short-term JGBs. He clarified that while long-term foreign bond balance increased, overall duration shortened to four years.

Maoki Matsuno requested a detailed breakdown of the JPY 100 billion upward revision to the FY 2025 financial targets, specifically how factors like customer segment, equity method investees, and financial indicators contributed. He also asked about the operational policy of global markets for the second half, following successful strategies in the first half.

Answer

Jun Togawa (Senior Managing Corporate Executive and Group CFO, MUFG) broke down the JPY 100 billion revision: JPY 30 billion from customer segment NOP, a 'certain amount' from equity method investees, JPY 40 billion from one-off gains, and JPY 30 billion from financial indicators (mainly weak yen). He clarified stock price impact was minimal due to hedging. For global markets, Togawa-san stated the policy of gradually building yen bond positions while monitoring policy rates remains, explaining the decrease in short-term JGBs and the foreign bond strategy.

Asked about the outlook for the next fiscal year's bottom line, considering the potentially high net income this year, and questioned the company's global markets operation policy and executive's outlook on monetary policy following the BOJ's recent amendment.

Answer

The plan for the next fiscal year is still under development, and it's too early to comment on the bottom line, though the goal is for step-by-step growth. In Global Markets, the company is hedged against rising JGB interest rates using fixed-income bear funds and is poised for rate rises. The executive personally believes the conditions for BOJ policy normalization (a virtuous cycle of price and wage rises) will be met, and it is a matter of timing for the BOJ to act.