Summary: Bank of Tokyo-Mitsubishi UFJ Ltd.

Stronger capitalization than other major Japanese banks NPL disposal has improved asset quality Low profitability by international standards Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU) is the core commercial banking unit of Mitsubishi UFJ Financial Group Inc. (MUFG; A-/Stable/--). MUFG, the parent and holding company of BTMU, is Japan's largest banking group, with consolidated gross assets of ¥187 trillion as of March 2006. The rating on BTMU reflects the group's consolidated financial profile and market position, as well as its stand-alone financial position. This is attributable to BTMU's close business links with group companies and the holding company's power over the group's organizational structure and capital distribution. MUFG's capitalization remains stronger than that of its domestic peers. The group's Tier 1

...+ Low profitability by international standards Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU) is the core commercial banking unit of Mitsubishi UFJ Financial Group Inc. (MUFG; A-/Stable/--). MUFG, the parent and holding company of BTMU, is Japan's largest banking group, with consolidated gross assets of Ñ187 trillion as of March 2006. The rating on BTMU reflects the group's consolidated financial profile and market position, as well as its stand-alone financial position. This is attributable to BTMU's close business links with group companies and the holding company's power over the group's organizational structure and capital distribution. MUFG's capitalization remains stronger than that of its domestic peers. The group's Tier 1 capital ratio improved 0.88% percentage points in fiscal 2005 to 6.80%, mainly due to profit accumulation. This was an improvement from the consolidated figures of the former Mitsubishi Tokyo Financial Group (MTFG) and UFJ Holdings in the previous year (the ratio for...

Summary