UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of August 2016

Commission File No. 000-54189

 

 

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

 

7-1, Marunouchi 2-chome, Chiyoda-ku

Tokyo 100-8330, Japan

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or

will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F       X                Form 40-F              

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

 

 

 

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THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-209455) OF MITSUBISHI UFJ FINANCIAL GROUP, INC. AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED WITH OR FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 12, 2016

 

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English Translation of Excerpts from Quarterly Securities Report Filed in Japan

This document is an English translation of selected information included in the Quarterly Securities Report for the quarter ended June 30, 2016 filed by Mitsubishi UFJ Financial Group, Inc. (“MUFG” or “we”) with the Kanto Local Financial Bureau, the Ministry of Finance of Japan, on August 12, 2016 (the “Quarterly Securities Report”). An English translation of certain information included in the Quarterly Securities Report was previously submitted in a report on Form 6-K dated August 1, 2016. Accordingly, this document should be read together with the previously submitted report.

The Quarterly Securities Report has been prepared and filed in Japan in accordance with applicable Japanese disclosure requirements as well as generally accepted accounting principles in Japan (“J-GAAP”). There are significant differences between J-GAAP and U.S. GAAP. In addition, the Quarterly Securities Report is intended to update prior disclosures filed by MUFG in Japan and discusses selected recent developments in the context of those prior disclosures. Accordingly, the Quarterly Securities Report may not contain all of the information that is important to you. For a more complete discussion of the background to information provided in the Quarterly Securities Report disclosure, please see our annual report on Form 20-F for the fiscal year ended March 31, 2016 and the other reports filed with or submitted to the U.S. Securities and Exchange Commission by MUFG.

 

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Additional Financial Information for the Three Months Ended June 30, 2016

 

1.	Changes in the scope of consolidation or application of the equity method

 

I.

Significant changes in the scope of consolidation

Not applicable.

 

II.

Significant changes in the scope of application of the equity method

Beginning in the three months ended June 30, 2016, MUFG applies the equity method to Security Bank Corporation (Security Bank), as a result of a share acquisition by The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), a consolidated subsidiary of MUFG.

 

(1)

Outline of the acquisition of shares of Security Bank

On January 14, 2016, BTMU concluded a Subscription Agreement with Security Bank.

On April 1, 2016, BTMU acquired newly issued common shares and preferred shares, representing in the aggregate 20% of Security Bank’s equity interest on a fully diluted basis, and appointed two directors to Security Bank’s Board of Directors. As a result, Security Bank became an equity method affiliate.

An outline of Security Bank is as follows:

 

 

(2)

Period for which the results of operations of the equity method investee are included in the consolidated statements of income

The results of operations of the equity method investee are not included in the consolidated statements of income for the three months ended June 30, 2016.

 

(3)

Outline of the accounting treatment applied

 

(a)

Acquisition Cost

 

 

(b)

Amount of goodwill recorded, and reason for recording goodwill

 

(i)

Amount of goodwill recorded

¥43,717 million

This amount is on a preliminary basis since the allocation of the acquisition cost has not been completed.

 

(ii)

Reason for recording goodwill

The acquisition cost exceeded MUFG’s interest in the net asset value of the equity method investee on the acquisition date.

 

2

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2.	Additional information

(Implementation Guidance on Recoverability of Deferred Tax Assets)

On March 28, 2016, the Accounting Standards Board of Japan (ASBJ) issued ASBJ Guidance No.26, “Implementation Guidance on Recoverability of Deferred Tax Assets.” MUFG adopted this guidance on April 1, 2016.

(Update of the Accounting Standards Codification (ASC) No. 825 (Financial instruments) by the Financial Accounting Standards Board(FASB))

Beginning in the three months ended June 30, 2016, a certain overseas affiliate under the equity method, to which Generally Accepted Accounting Principles in the United States of America (US-GAAP) apply, adopted early the update of ASC No.825 (Financial instruments).

Upon the adoption described above, with respect to financial liabilities which the affiliate elected to measure at fair value under the fair value option, in accordance with the accounting standards, MUFG recorded the changes in the fair value of such financial instruments resulting from a change in the instrument-specific credit risk in the amount of debt value adjustments of foreign affiliates (DVAs) in accumulated other comprehensive income. MUFG made cumulative catch-up adjustments to the opening balances of retained earnings and DVAs at the beginning of the three months ended June 30, 2016.

As a result, at the beginning of the three months ended June 30, 2016, retained earnings increased by ¥8,464 million, and DVAs decreased by ¥8,464 million.

In addition, ordinary income and profits before income taxes for the three months ended June 30, 2016, each decreased by ¥5,633 million.

(Partial amendment to the plan relating to the capital and business alliance of Mitsubishi UFJ Lease & Finance Company Limited and Hitachi Capital Corporation)

MUFG and Mitsubishi UFJ Lease & Finance Company Limited (MUL), an equity method affiliate of MUFG, have concluded a Share Purchase Agreement to acquire a part of the common shares of Hitachi Capital Corporation (Hitachi Capital) held by Hitachi, Ltd. (Hitachi).

MUFG, MUL and Hitachi changed the target completion date of the share acquisition from “August 2016 (scheduled, conditional on the fulfillment of relevant regulatory requirements and approvals)” to “October 2016 onward, upon the fulfillment of relevant regulatory requirements and approvals” by taking relevant regulatory requirements and approval process into consideration, while MUFG, MUL and Hitachi have been preparing for the execution of the share acquisition. The prospects change mentioned above is not expected to impact the plan to execute the share acquisition itself.

 

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3.	Risk-monitored loans included in “Loans and bills discounted” as of the dates indicated were as follows:

 

		(in millions of yen)
		March 31, 2016				June 30, 2016
Loans to bankrupt borrowers		¥	54,913			¥	54,208
Non-accrual delinquent loans			1,110,576				1,141,320
Loans past due for three months or more			51,620				54,641
Restructured loans			438,767				401,832
Total		¥	1,655,877			¥	1,652,002

 

Note:

Amounts above are stated before the reduction of allowance for credit losses.

 

4.	The principal amounts of money trusts entrusted to a domestic trust banking subsidiary, for which repayment of the principal to the customers was guaranteed, as of the dates indicated were as follows:

 

		(in millions of yen)
		March 31, 2016				June 30, 2016
Money trusts		¥	7,111,058			¥	5,976,546

 

5.	Guarantee obligations for private placement bonds (provided in accordance with the Article 2-3 of the “Financial Instruments and Exchange Act”) included in “Securities” as of the dates indicated were as follows:

 

		(in millions of yen)
		March 31, 2016				June 30, 2016
Guarantee obligations for private placement bonds		¥	580,398			¥	562,571

 

6.	Contingent liabilities

(Litigation)

The MUFG Group is subject to various litigation matters and regulatory actions. Based upon current knowledge and the results of consultation with counsel, liabilities for losses from litigation matters and regulatory actions are recorded when they are determined to be both probable in their occurrences and can be reasonably estimated. Management believes that the eventual outcome of such litigation matters and regulatory actions will not have a material adverse effect on the MUFG Group’s financial position, results of operations or cash flows. Management also believes that the amount of loss that is reasonably possible, but not probable, from the litigation matters and regulatory actions is not material to the MUFG Group’s financial position, results of operations or cash flows.

However, the MUFG Group has received requests for information from certain regulators in relation to investigations regarding the MUFG Group’s foreign operations, such as governance practices and foreign exchange trading practices in Europe, and is cooperating with these regulators for their investigations. Based upon current knowledge and the results of consultation with counsel, the timing and amounts of any penalties from these investigations cannot be reasonably estimated.

 

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7.	“Other ordinary income” for the period indicated included the following:

 

		(in millions of yen)
		For the three months ended June 30,
		2015				2016
Equity in earnings of the equity method investees		¥	85,708			¥	61,116
Gains on sales of equity securities			41,748				25,478

 

8.	“Other ordinary expenses” for the period indicated included the following:

 

		(in millions of yen)
		For the three months ended June 30,
		2015				2016
Provision for allowance for credit losses		¥	—			¥	40,334
Write-offs of loans			36,692				27,636
Losses on waiver of claims			39,849				813

 

9.	No quarterly consolidated statements of cash flows have been prepared for the three month periods ended June 30, 2015 and 2016. Depreciation (including amortization of intangible assets other than goodwill) and amortization of goodwill for the periods indicated were as follows:

 

		(in millions of yen)
		For the three months ended June 30,
		2015				2016
Depreciation		¥	71,974			¥	75,716
Amortization of goodwill			4,459				4,037

 

10.	Capital Stock and Dividends Paid

For the three months ended June 30, 2015

 

I.	Cash dividends

Cash dividends approved at the shareholders meeting held on June 25, 2015

 

Total amount (millions of yen)

Per share amount (yen)

Dividend record date

Effective date

Source of funds

Common stock

¥

126,179

¥

9

Mar. 31, 2015

Jun. 25, 2015

Retained earnings

 

II.	Dividends the record date for which fell within the three-month period and the effective date of which was after the end of the three-month period

Not applicable.

 

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For the three months ended June 30, 2016

 

I.	Cash dividends

Cash dividends approved at the shareholders meeting held on June 29, 2016

 

Total amount (millions of yen)

Per share amount (yen)

Dividend record date

Effective date

Source of funds

Common stock

¥

124,116

¥

9

Mar. 31, 2016

Jun. 29, 2016

Retained earnings

 

II.	Dividends the record date for which fell within the three-month period and the effective date of which was after the end of the three-month period

Not applicable.

 

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11.	Segment information

 

I.	Summary of Reporting Segment

MUFG’s reporting segments are business units of MUFG which its Executive Committee, the decision-making body for the execution of its business operations, regularly reviews to make decisions regarding allocation of management resources and evaluate performance.

MUFG makes unified group-wide strategies based on customer characteristics and the nature of business. Accordingly, MUFG has adopted customer-based and business-based segmentation, which consists of the following reporting segments: Retail Banking Business Group, Corporate Banking Business Group, Global Business Group, Trust Assets Business Group, Global Markets Business Group and Other.

 

(Changes in reporting segments)

MUFG’s group companies are managed using a matrix framework consisting of the business segments mentioned above which are identified based on an integrated business group system to provide financial services and products under unified group-wide strategies as well as through individual MUFG group entities, which are grouped under the major operating subsidiaries as follows: The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mitsubishi UFJ Trust and Banking Corporation, Mitsubishi UFJ Securities Holdings Co. Ltd., consumer finance subsidiaries and others. To assist appropriate assessment of MUFG’s future cash flow forecasts, MUFG previously identified these groups of MUFG group entities as its reporting segments, each operating in a different industry and regulatory environment.

However, beginning in this three-month period ended June 30, 2016, MUFG changed its reporting segments to the segmentation by the above-mentioned service-based Business Groups, following the progress made during the fiscal year ended March 31, 2016 in the implementation of unified group-wide business operations and management under the medium-term business plan that was commenced in the fiscal year ended March 31, 2016.

The segment information for the three months ended June 30, 2015 has been restated to reflect the foregoing changes in reporting segments.

 

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II.	Information on Net Revenue, Operating Profit (Loss) for Each Reporting Segment

 

		(in millions of yen)
		For the three months ended June 30, 2015
		Retail Banking Business Group				Corporate Banking Business Group				Global Business Group				Trust Assets Business Group				Total of Customer Business				Global Markets Business Group				Other				Total
Net Revenue		¥	329,679			¥	246,138			¥	320,663			¥	44,676			¥	892,905			¥	219,727			¥	(3,474	)		¥	1,109,158
Operating Expenses			246,562				151,587				206,625				26,054				589,816				54,221				41,574				685,612
Operating Profit (Loss)		¥	83,116			¥	94,551			¥	114,037			¥	18,621			¥	303,088			¥	165,506			¥	(45,048	)		¥	423,546

Notes:

1.	“Net Revenue” in the above table is used in lieu of net sales generally used by Japanese non-financial companies.

2.	“Net Revenue” includes net interest income, trust fees, net fees and commissions, net trading profit, and net other operating profit.

3.	“Operating Expenses” includes personnel expenses and premise expenses.

4.

“Net Revenue” and “Operating Expenses” for each of the Corporate Banking Business Group and the Global Business Group include those relating to overseas Japanese corporate transactions. The amounts relating to such transactions included in each of these reporting segments are as follows: ¥48,251 million of Net Revenue, ¥41,013 million of Operating Expenses and ¥7,238 million of Operating Profit. Adjustments have been made by deducting these amounts from the Total of Customer Business.

 

		(in millions of yen)
		For the three months ended June 30, 2016
		Retail Banking Business Group				Corporate Banking Business Group				Global Business Group				Trust Assets Business Group				Total of Customer Business				Global Markets Business Group				Other				Total
Net Revenue		¥	284,826			¥	231,917			¥	306,059			¥	41,903			¥	824,383			¥	208,404			¥	(18,783	)		¥	1,014,004
Operating Expenses			237,686				147,407				198,848				26,402				571,358				51,425				41,567				664,351
Operating Profit (Loss)		¥	47,139			¥	84,510			¥	107,210			¥	15,500			¥	253,024			¥	156,979			¥	(60,351	)		¥	349,652

Notes:

1.	“Net Revenue” in the above table is used in lieu of net sales generally used by Japanese non-financial companies.

2.	“Net Revenue” includes net interest income, trust fees, net fees and commissions, net trading profit, and net other operating profit.

3.	“Operating Expenses” includes personnel expenses and premise expenses.

4.

“Net Revenue” and “Operating Expenses” for each of the Corporate Banking Business Group and the Global Business Group include those relating to overseas Japanese corporate transactions. The amounts relating to such transactions included in each of these reporting segments are as follows: ¥40,323 million of Net Revenue, ¥38,985 million of Operating Expenses and ¥1,337 million of Operating Profit. Adjustments have been made by deducting these amounts from the Total of Customer Business.

 

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III.	A reconciliation of the total operating profit in each of the above tables to the ordinary profit in the consolidated statements of income for the corresponding three-month period is as follows:

 

		(in millions of yen)
		For the three months ended June 30,
		2015				2016
Total operating profit of reporting segments		¥	423,546			¥	349,652
Net business profit of consolidated subsidiaries excluded from reporting segments			14,080				13,711
Provision for general allowance for credit losses			—				(11,452	)
Credit related expenses			(75,097	)			(56,938	)
Reversal of allowance for credit losses			21,696				—
Gains on collection of bad debts			13,708				12,865
Net gains on equity securities and other securities			31,661				1,710
Equity in earnings of the equity method investees			85,708				61,116
Other			(30,268	)			(29,851	)
Ordinary profit in the consolidated statements of income		¥	485,035			¥	340,812

 

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12.	Financial instruments and related disclosures

There are no material changes to be disclosed as of June 30, 2016 compared to March 31, 2016.

 

13.	Securities

 

*1	The following shows those securities as of June 30, 2016 which were deemed material in the management of our group company businesses and showed material changes as compared to those as of March 31, 2016.

 

*2	The following tables include negotiable certificates of deposit in “Cash and due from banks” and beneficial interests in trusts in “Monetary claims bought” in addition to “Securities.”

 

I.	Debt securities being held to maturity

 

		(in millions of yen)
		March 31, 2016
		Amount on consolidated balance sheet				Fair value				Difference
Domestic bonds			1,101,107				1,159,115				58,008
Government bonds			1,101,107				1,159,115				58,008
Municipal bonds			—				—				—
Corporate bonds			—				—				—
Other securities			2,785,132				2,791,643				6,510
Foreign bonds			1,233,171				1,239,917				6,746
Other			1,551,961				1,551,725				(236	)
Total		¥	3,886,239			¥	3,950,758			¥	64,518

 

		(in millions of yen)
		June 30, 2016
		Amount on consolidated balance sheet				Fair value				Difference
Domestic bonds			1,101,050				1,173,550				72,499
Government bonds			1,101,050				1,173,550				72,499
Municipal bonds			—				—				—
Corporate bonds			—				—				—
Other securities			2,638,510				2,657,531				19,021
Foreign bonds			1,202,641				1,230,918				28,277
Other			1,435,869				1,426,612				(9,256	)
Total		¥	3,739,560			¥	3,831,081			¥	91,520

 

14.	Money held in trust

There are no material changes to be disclosed as of June 30, 2016 compared to March 31, 2016.

 

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15.	Derivatives

The following shows those derivatives as of June 30, 2016 which were deemed material in the management of our group company businesses and showed material changes as compared to those as of March 31, 2016.

 

(1)	Currency-related derivatives

 

				(in millions of yen)
				March 31, 2016
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchanges		Currency futures		¥	977,570			¥	7,804			¥	7,804
Over-the-counter (“OTC”) transactions		Currency swaps			57,930,388				(32,737	)			(32,737	)
		Forward contracts on foreign exchange			119,283,760				138,706				138,706
		Currency options			17,150,760				(26,954	)			31,602
		Total			—			¥	86,818			¥	145,375

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income. Those derivatives transactions to which the hedge accounting is applied as described in JICPA Industry Audit Committee Report No. 25 “Treatment of Accounting and Auditing concerning Accounting for Foreign Currency Transactions in the Banking Industry” (July 29, 2002) (“JICPA Industry Audit Committee Report No. 25”) and other relevant standards are excluded from the above table.

 

				(in millions of yen)
				June 30, 2016
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchange		Currency futures		¥	906,234			¥	10,920			¥	10,920
OTC transactions		Currency swaps			56,569,944				44,397				44,397
		Forward contracts on foreign exchange			110,879,175				68,461				68,461
		Currency options			15,721,336				66,282				133,983
		Total			—			¥	190,062			¥	257,762

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income. Those derivatives transactions to which the hedge accounting is applied as described in JICPA Industry Audit Committee Report No. 25 and other relevant standards are excluded from the above table.

 

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(2)	Equity-related derivatives

 

				(in millions of yen)
				March 31, 2016
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchange		Stock index futures		¥	664,122			¥	4,456			¥	4,456
		Stock index options			1,579,663				(28,134	)			(7,184	)
OTC transactions		OTC securities option transactions			1,314,535				2,365				13,386
		OTC securities index swap transactions			243,817				35,863				35,863
		Forward transactions in OTC securities indexes			22,355				(744	)			(744	)
		Total return swaps			8,056				(186	)			(186	)
		Total			—			¥	13,620			¥	45,592

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income. Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

				(in millions of yen)
				June 30, 2016
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchange		Stock index futures		¥	640,526			¥	16,582			¥	16,582
		Stock index options			1,895,454				(38,978	)			(10,126	)
OTC transactions		OTC securities option transactions			1,269,610				1,070				10,900
		OTC securities index swap transactions			300,383				46,203				46,203
		Forward transactions in OTC securities indexes			35,219				(2,436	)			(2,436	)
		Total return swaps			7,000				(121	)			(121	)
		Total			—			¥	22,320			¥	61,002

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income. Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

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(3)	Bond-related derivatives

 

				(in millions of yen)
				March 31, 2016
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchange		Bond futures		¥	672,685			¥	(590	)		¥	(590	)
		Bond futures options			223,528				227				33
OTC transactions		Bond OTC options			330,113				1,115				1,161
		Bond forward contracts			5,343				(32	)			(32	)
		Bond OTC swaps			451,193				6,880				6,880
		Total			—			¥	7,600			¥	7,452

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income. Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

				(in millions of yen)
				June 30, 2016
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
Transactions listed on exchange		Bond futures		¥	899,101			¥	(343	)		¥	(343	)
		Bond futures options			1,502,215				(3,248	)			(998	)
OTC transactions		Bond OTC options			875,800				1,769				671
		Bond forward contracts			470,333				235				235
		Bond OTC swaps			350,062				(15,932	)			(15,932	)
		Total			—			¥	(17,519	)		¥	(16,366	)

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income. Those derivatives transactions to which the hedge accounting is applied are excluded from the above table.

 

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(4)	Credit-related derivatives

 

				(in millions of yen)
				March 31, 2016
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
OTC transactions		Credit default options		¥	6,275,682			¥	6,081			¥	6,081
		Total rate of return swaps			111,818				110				110
		Total			—			¥	6,191			¥	6,191

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

 

				(in millions of yen)
				June 30, 2016
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
OTC transactions		Credit default options		¥	5,915,826			¥	1,460			¥	1,460
		Total rate of return swaps			104,579				109				109
		Total			—			¥	1,569			¥	1,569

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income.

 

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(5)	Other derivatives

 

				(in millions of yen)
				March 31, 2016
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
OTC transactions		Earthquake derivatives		¥	68,253			¥	708			¥	159
		SVF Wrap Products			2,102,876				(1	)			(1	)
		Other			5,321				566				566
		Total			—			¥	1,273			¥	724

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income. SVF Wrap Products are derivative instruments where BTMU guarantees the payment of the principal to 401(k) investors and other investors that invest in Stable Value Fund.

 

				(in millions of yen)
				June 30, 2016
Classification		Type of transaction		Contract amount				Fair value				Valuation gains (losses)
OTC transactions		Earthquake derivatives		¥	52,139			¥	368			¥	708
		SVF Wrap Products			1,934,083				(5	)			(5	)
		Other			4,859				583				583
		Total			—			¥	947			¥	1,287

 

Note:

The transactions above are stated at fair value and the related valuation gains (losses) are reported in the consolidated statements of income. SVF Wrap Products are derivative instruments where BTMU guarantees the payment of the principal to 401(k) investors and other investors that invest in Stable Value Fund.

 

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16.	Per Share Information

The bases for the calculation of basic earnings per share and diluted earnings per share for the periods indicated were as follows:

 

		(in yen)
		For the three months ended June 30,
		2015				2016
Basic earnings per share		¥	19.85			¥	13.76
Diluted earnings per share			19.74				13.71
		(in millions of yen)
		For the three months ended June 30,
		2015				2016
Profits attributable to owners of the parent		¥	277,761			¥	188,924
Profits not attributable to common shareholders			—				—
Profits attributable to owners of the parent related common shares			277,761				188,924
		(in thousands)
		For the three months ended June 30,
		2015				2016
Average number of common shares during the period			13,986,676				13,721,696
		(in millions of yen)
		For the three months ended June 30,
		2015				2016
Diluted earnings per share
Adjustment to profits attributable to owners of the parent		¥	(1,256	)		¥	(486	)
Of which, adjustment related to dilutive shares of consolidated subsidiaries and others			(1,256	)			(486	)
		(in thousands)
		For the three months ended June 30,
		2015				2016
Increase in common shares			18,828				16,765
		(in millions of yen)
		For the three months ended June 30,
		2015				2016
Description of antidilutive securities which were not included in the calculation of diluted earnings per share but which materially changed after the end of the previous fiscal year			—				—

 

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17.	Subsequent Events

MUFG decided, on May 30, 2016, to redeem preferred securities (“Non-dilutive Preferred Securities”) issued by overseas special purpose companies, which are subsidiaries of MUFG, and redeemed all of the Non-dilutive Preferred Securities on July 25, 2016.

An outline of the redeemed Non-dilutive Preferred Securities is as follows.

Summary of redeemed Non-dilutive Preferred Securities

 

Issuer		MUFG Capital Finance 1 Limited		MUFG Capital Finance 2 Limited
Type of security		US dollar-denominated fixed/floating rate non-cumulative preferred securities		Euro-denominated fixed/floating rate non-cumulative preferred securities
		The Non-dilutive Preferred Securities rank, as to rights to a liquidation preference, effectively pari passu with the preferred shares issued by MUFG which rank most senior in priority of payment as to liquidation distribution.		The Non-dilutive Preferred Securities rank, as to rights to a liquidation preference, effectively pari passu with the preferred shares issued by MUFG which rank most senior in priority of payment as to liquidation distribution.
Maturity		Perpetual Provided, however, that the issuer may, at its discretion, redeem all or part of the Non-dilutive Preferred Securities on a dividend payment date in July 2016 or thereafter.		Perpetual Provided, however, that the issuer may, at its discretion, redeem all or part of the Non-dilutive Preferred Securities on a dividend payment date in July 2016 or thereafter.
Dividends		Dividend Rate 6.346% per annum (Fixed rate until July 2016) Floating rate after July 2016		Dividend Rate 4.850% per annum (Fixed rate until July 2016) Floating rate after July 2016
Issue amount		USD 2,300,000,000		EUR 750,000,000
Issue date		March 17, 2006		March 17, 2006
Redemption amount		USD 2,300,000,000		EUR 750,000,000
Redemption price		USD 1,000 per preferred security (equal to the issue price)		EUR 1,000 per preferred security (equal to the issue price)

 

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