Strong market position as Japan's largest banking group Strong funding and liquidity, backed by its banking subsidiaries' stable deposits, which are diversified into small lots Modest profitability in terms of return on assets (ROA) compared with global peers, because of low net interest margins on domestic lending Less favorable foreign currency funding than yen funding as foreign currency assets grow S&P Global Ratings' outlooks are positive on its long-term issuer credit ratings on Japan-based megabank Mitsubishi UFJ Financial Group Inc. (MUFG) and its core subsidiaries, including core operating banks. The outlooks reflect more than a one-in-three chance we could upgrade them in the next two years. The outlook on our long-term sovereign credit rating on Japan is positive, and we
