Strong market position as the largest banking group in Japan Strong funding base and liquidity, backed by its banking subsidiaries' stable deposit bases, which are diversified into small lots Modest profitability in terms of return on assets (ROA) compared with global peers due to low net interest margins on domestic lending Susceptibility to market volatility because of its large investment portfolio, which, as at other Japanese banks, contains bonds, equity, and other securities S&P Global Ratings' outlooks on the long-term issuer credit ratings on Mitsubishi UFJ Financial Group Inc. (MUFG) and its core subsidiaries including core operating banks are positive. The outlooks reflect a more than one-in-three chance that we could upgrade them in the next two years. The outlook
