Takahiro Yano's questions to MITSUBISHI UFJ FINANCIAL GROUP (MUFG) leadership • Q2 2024
Question
Requested clarification on the one-off factors contributing to the high first-half ROE and what the base case ROE is, and asked if there are new drivers for the improvement in domestic corporate lending rates.
Answer
The high first-half ROE was influenced by one-off factors like the inclusion of 15 months of Morgan Stanley earnings and the front-loading of Treasury gains. A realistic full-year ROE, considering these factors and the FX impact, is estimated to be around 8%. The improvement in domestic lending spreads is not due to new drivers or anticipation of rate hikes, but rather consistent negotiation on every loan and a focus on high-margin deals like LBO and real estate finance.