Investor Relations Contact:
NEW YORK, July 1, 2016 – Mitsubishi UFJ Financial Group, Inc. (MUFG - NYSE: MTU), one of the world's leading financial groups, announced that effective today it is designating its current U.S. bank holding company, MUFG Americas Holdings Corporation (MUAH), as its Intermediate Holding Company (IHC) in accordance with the requirements of the U.S. Federal Reserve Board’s final rules for Enhanced Prudential Standards (the EPS Rules). The reorganization also allows all material U.S. subsidiaries of MUFG to be clearly aligned as one team.
As the designated IHC, MUAH now directly holds the major U.S. subsidiaries of MUFG, including MUFG Union Bank, N.A. (MUB); MUFG Securities Americas Inc. (MUS(USA)), the former U.S. subsidiary of Mitsubishi UFJ Securities Holdings Co., Ltd; and MUFG Fund Services (USA) LLC (MFS(USA)), the former U.S. subsidiary of Mitsubishi UFJ Trust and Banking Corporation (MUTB). In line with the EPS Rules, all remaining U.S. subsidiaries of MUFG will be transferred under MUAH by July 2017.
Also effective today, MUS(USA) has changed its legal name to MUFG Securities Americas Inc. from Mitsubishi UFJ Securities (USA), Inc., to emphasize a single, cohesive MUFG brand that offers clients access to a broader suite of products and services under a single holding company.
"After thousands of hours of collaboration and work by colleagues from the United States to Japan, MUFG is pleased to have successfully met this important U.S. regulatory requirement," said Kanetsugu "Sugu" Mike, Group Head of Global Business Group, MUFG; and MUFG and The Bank of Tokyo-Mitsubishi UFJ, Ltd. Regional Executive for the Americas. "The MUFG team showed unwavering dedication in achieving this goal without sacrificing service to our clients and customers – and for that, we are grateful."
President and CEO of MUAH, Stephen Cummings, who assumes the role of CEO for the IHC, added: "These changes provide a stronger governance and risk-management structure in the U.S., in addition to creating a more streamlined organization. Further, we are now in a stronger position to go to market with a unified MUFG brand across our various lines of business."
In another move to comply with the EPS Rules, MUFG has announced the establishment of the U.S. Risk Committee under the MUFG Board Risk Committee; the new Committee will oversee all types of risk at the combined U.S. operations level.
In February 2014, the Federal Reserve Board approved final rules to strengthen the supervision and regulation of large U.S. bank holding companies and foreign banking organizations (FBOs) by establishing the EPS Rules, a series of enhanced prudential standards to help increase the resiliency of their operations. These Rules – targeting liquidity, risk management, and capital – require an FBO with a significant U.S. presence to establish an IHC to directly hold U.S. subsidiaries it owns or controls to facilitate consistent supervision and regulation of those U.S. operations. The EPS Rules were required as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
About MUFG Americas Holdings Corporation
Headquartered in New York, MUFG Americas Holdings Corporation is a financial holding company and bank holding company with total assets of $120.9 billion at March 31, 2016. Its principal subsidiary, MUFG Union Bank, N.A., provides an array of financial services to individuals, small businesses, middle-market companies, and major corporations. As of March 31, 2016, MUFG Union Bank, N.A. operated 370 branches, comprised primarily of retail banking branches in the West Coast states, along with commercial branches in Texas, Illinois, New York, and Georgia, as well as two international offices. MUFG Americas Holdings Corporation as of July 1, 2016, is owned by The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mitsubishi UFJ Financial Group, Inc., one of the world’s leading financial groups. The Bank of Tokyo-Mitsubishi UFJ, Ltd. is a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc. Visit www.unionbank.com or www.mufgamericas.com for more information.
About MUFG (Mitsubishi UFJ Financial Group, Inc.)
MUFG (Mitsubishi UFJ Financial Group, Inc.) is one of the world’s leading financial groups, with total assets of approximately ¥298.3 trillion (JPY) or $2.6 trillion (USD)1, as of March 31, 2016. Headquartered in Tokyo and with approximately 350 years of history, MUFG is a global network with over 2,000 offices in nearly 50 countries. The Group has over 140,000 employees and about 300 entities, offering services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group’s operating companies include The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mitsubishi UFJ Trust and Banking Corporation (Japan’s leading trust bank), and Mitsubishi UFJ Securities Holdings Co., Ltd., one of Japan’s largest securities firms. Through close partnerships among our operating companies, the Group aims to "be the world’s most trusted financial group", flexibly responding to all of the financial needs or our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York (NYSE: MTU) stock exchanges. Visit www.mufg.jp/english/index.html.
Cautionary Statement Concerning Forward-Looking Information
This document includes forward-looking statements such as those relating to the strength in the market of our unified MUFG brand. Forward-looking statements involve risks and uncertainties and can be identified by the fact that they do not relate strictly to historical or current facts. Often, they include the words "believe," "continue," "expect," "target," "anticipate," "intend," "plan," "estimate," "potential," "project," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." There are numerous risks and uncertainties that could and will cause actual results to differ materially from those discussed in MUAH’s forward-looking statements. Many of these factors are beyond MUAH’s ability to control or predict and could have a material adverse effect on MUAH’s financial condition, results of operations and/or prospects. Such risks and uncertainties include, but are not limited to, risks and uncertainties discussed in MUAH’s public filings with the SEC. All forward-looking statements included in this document are based on information available at the time of such document, and MUAH assumes no obligation to update any forward-looking statement.
(1)Exchange rate of 1 USD=¥112.68 (JPY) as of March 31, 2016