Mitsubishi UFJ Financial Group Essay ⋆ Business Essay Examples ⋆ EssayEmpire

Mitsubishi UFJ Financial Group is headquartered in Tokyo, Japan; its main business areas are banking and securities. As of September 30, 2007, it included 44 affiliated companies and 525 consolidated subsidiaries with 47,124 employees (BTMU, MUTB, MUS) and 78,300 employees worldwide. It reported gross profits of 3.512 trillion Japanese yen and net income of 636.6 billion Japanese yen as of March 31, 2008.

The Mitsubishi UFJ Financial Group (MUFG) was founded in October 2005 with the merger of two holding groups: Mitsubishi Tokyo Financial Group (MTFG) and UFJ Holdings (UFJH). It is a diversified comprehensive financial services group offering a wide range of services in retail, corporate, and securities. The bank’s origins date back to 1870 with the establishment of Mitsubishi by Yataro Iwasaki. Its financial arm, the Mitsubishi Bank, was founded in 1919.

In 2001 the Bank of Tokyo-Mitsubishi Ltd., the Mitsubishi Trust and Banking Corporation, and Nippon Trust Bank Ltd. created MTFG through a share transfer. That same year, Sanwa Bank Ltd., the Tokai Bank Ltd., and the Toyo Trust and Banking Co. Ltd. created UFJH through a share transfer. MUFG is the holding company of three entities: the Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU, established in 2006); Mitsubishi UFJ Trust and Banking Corporation (MUTB); and Mitsubishi UFJ Securities Co., Ltd. (MUS). In 2007 MUFG created Mitsubishi UFJ Lease & Finance and Mitsubishi UFJ Nicos to manage real estate financing and the like and credit card services, respectively.

BTMU has it origins in the Bank of Tokyo-Mitsubishi (a 1996 merger between the Bank of Tokyo Ltd. (BOT) and the Mitsubishi Bank) and the UFJ Bank Ltd. (a 2002 merger between the Sanwa Bank Ltd. and the Tokai Bank Ltd.). In Japanese, the bank is called Mitsubishi Tokyo UFJ, indicating that Mitsubishi is the strongest entity, although BOT had become Japan’s leading foreign exchange bank with 10 times as many foreign branches as domestic. BOT and Mitsubishi Bank both developed strong relationships with what became the Union Bank of California, now part of MUFG.

MUTB was created by a merger between the Mitsubishi Trust and Banking Corporation and the UFJ Trust Bank Ltd. The Mitsubishi Trust and Banking Corporation was formed as a result of a merger between Nippon Trust Bank Ltd. and Tokyo Trust Bank Ltd. The UFJ Trust Bank Ltd. was the name given to the former Toyo Trust and Banking Co. in 2002.

MUS is a result of a merger between Mitsubishi Securities Co., Ltd., and UFJ Tsubasa Securities Co., Ltd., the latter of which had become a wholly-owned subsidiary of UFJH in 2004. In 2002 Mitsubishi Securities Co., Ltd., was created through the merger of Tokyo-Mitsubishi Securities Co., Ltd., Tokyo-Mitsubishi Personal Securities Co., Ltd., Kokusai Securities Co., Ltd., and Issei Securities Co., Ltd.

MUFG positions itself as an integrated group transcending traditional business boundaries in three core business areas: retail, corporate (handled mainly by BTMU), trust assets, i.e., asset management (handled mainly by MUTB), and asset administration (handled mainly by MUS). The group targets expansion especially through the retail side through the provision of a global standard of services, products and advice, and excellence in security and compliance. Retail is essential to building the group’s portfolio for sustained growth. In corporate, the group targets include positioning itself as a key financial services provider to large firms while being a lead bank for Japanese small and medium-sized companies. MUFG positions itself globally as one of the world’s top five financial institutions. In trust assets, the group’s target is to be number one in Japan in both size and quality of service.

Nobuo Kuroyanagi is the current president and chief executive officer of MUFG, beginning his banking career at the Mitsubishi Bank in 1965. Ryosuke Tamakoshi, who became chairman of MUFG at its establishment in 2005, was president and chief executive officer of UFJ Holdings Ltd., the successor of Sanwa Bank Ltd., where he began his career. Haruya Uehara, deputy chairman of MUFG and president of MUTB, began his banking career with the Mitsubishi Trust and Banking Corporation in 1969.

MUFG aims to be a global financial group, and has extended its overseas network to over 40 countries, ranking them first among Japanese banks. Their largest overseas subsidiary is the Union Bank of California. Mitsubishi UFJ Securities International (MUSI) was established in 1983 in England and Wales. In 1990 the BTMU Capital Corporation was created in London and Boston. Other MUFG subsidiaries are in the United States, the Netherlands, the Cayman Islands, and Canada.

Bibliography:

Mitsubishi UFJ Financial Group, Inc., www.mufg.jp (cited March 2009);
Union Bank of California, www.uboc.com (cited March 2009).

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