Mitsubishi UFJ Financial Group, Inc. Sponsored ADR

Company Overview

Business Model: Mitsubishi UFJ Financial Group (MUFG) is a diversified financial group offering commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing services. It operates as a bank holding company, with primary revenue generation through net interest income from its extensive loan and deposit base, complemented by non-interest income from fees, commissions, and investment activities.

Market Position: MUFG is one of the world’s largest financial groups, with total assets of ¥405.94 trillion as of March 31, 2025. In Japan, it is one of four city banks and competes with other major financial groups, government financial institutions, securities companies, internet-based institutions, and asset management companies. Globally, it competes with local and international commercial banks, money center banks, regional banks, and fintech companies. Its strategic alliance with Morgan Stanley enhances its global securities and investment banking capabilities.

Recent Strategic Developments:

• Share Repurchase Programs: Repurchased 158,752,500 shares for ¥299.9 billion (November 2024-March 2025) and 62,666,100 shares for ¥100.0 billion (May-June 2024). Approved a new program to repurchase up to 175,000,000 shares or ¥250.0 billion (May 2025-July 2025).
• Acquisitions & Divestitures:
  • Acquired 100% of Link Administration Holdings Limited (renamed MUFG Pension & Market Services Holdings Limited) for ¥113.5 billion (May 2024).
  • Acquired 100% of WealthNavi Inc. for ¥98.8 billion (January-March 2025).
  • Acquired 100% of au Kabucom Securities Co., Ltd. (renamed Mitsubishi UFJ eSmart Securities Co., Ltd.) and sold 22% of au Jibun Bank Corporation shares, resulting in a net cash payment of ¥2.1 billion (January 2025).
  • Mitsubishi UFJ NICOS acquired 50.02% of Zenhoren Co., Ltd. for ¥13.0 billion (April 2025).
  • MUFG Bank agreed to acquire 9,980,831 newly issued shares of JACCS Co., Ltd. for approximately ¥39.0 billion, increasing its stake to 37.72% (March 2025, expected to close by September 2025).
  • Transferred 100% of Mitsubishi UFJ Asset Management Co., Ltd. to MUFG, making it a directly held subsidiary (April 2024).
  • Sold 24,000,000 U.S. Bancorp common shares (August 2024).
• Capital Issuances: Obtained $4.8 billion (¥710.2 billion) and €1.0 billion (¥162.1 billion) in External TLAC eligible senior debt in FY2025. Issued ¥358.0 billion in perpetual subordinated Additional Tier 1 debt and ¥363.0 billion in subordinated term Tier 2 debt in FY2025.
• Headquarters Investment: Plan to build a new MUFG Headquarters Building with a budget of approximately ¥209 billion through October 2030.
• Sustainability Targets: Sustainable finance target of ¥100 trillion in cumulative financing (FY2020-FY2031). Net zero greenhouse gas emissions from financed portfolio by 2050 and from operations by FY2031.

Geographic Footprint: MUFG operates approximately 2,000 business locations in more than 40 countries.

• Japan: 64.5% of total assets, 26.8% of total interest and non-interest income, 56.8% of total loans as of March 31, 2025.
• United States: Approximately 16.4% of total assets as of March 31, 2025.
• Asia and Oceania (excluding Japan): Approximately 9.5% of total assets as of March 31, 2025, including significant operations in Thailand (Krungsri) and Indonesia (Bank Danamon).
• Europe: Approximately 5.8% of total assets as of March 31, 2025.

Cross-Border Operations: MUFG maintains a global network of subsidiaries, joint ventures, and strategic alliances.

• Key Subsidiaries: MUFG Bank, Mitsubishi UFJ Trust and Banking Corporation, Mitsubishi UFJ Securities Holdings Co., Ltd., Mitsubishi UFJ NICOS Co., Ltd., Mitsubishi UFJ Asset Management Co., Ltd., MUFG Americas Holdings Corporation, Bank of Ayudhya Public Company Limited (Krungsri), PT Bank Danamon Indonesia, Tbk (Bank Danamon), First Sentier Investors Holdings Pty Ltd.
• Strategic Alliances: Holds approximately 23.5% of the voting rights in Morgan Stanley and has two representatives on its board. Operates two securities joint ventures in Japan with Morgan Stanley: Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (60% voting interest) and Morgan Stanley MUFG Securities Co., Ltd. (49% voting interest). "Alliance 2.0" launched in July 2023, expanding collaboration in Japanese stock market research, equity businesses, and foreign currency exchange trading.
• Partner Banks: Significant equity interests in Krungsri (76.88%), Bank Danamon (92.47%), VietinBank (19.73%), and Security Bank (20%).
• Digital Finance Investments: Investments in Silvrr Technology Co., Ltd. (Akulaku), DMI Finance Private Ltd., HC Consumer Finance Philippines, Inc., PT Home Credit Indonesia, Ascend Money Company Limited, and Globe Fintech Innovations, Inc.
• Regulatory Compliance: Subject to multi-jurisdictional regulations, including those from the Financial Services Agency (Japan) and the Federal Reserve Board (U.S.), covering capital adequacy, leverage, TLAC, and business conduct. Engages in limited business activities with entities in or affiliated with Iran, with aggregate fee income less than ¥5 million for FY2025.

Financial Performance

Revenue Analysis

Profitability Metrics (FY2025):

• Gross Margin (Net Interest Income / Total Revenue): 28.5%
• Operating Margin (Income before income tax expense / Total Revenue): 16.6%
• Net Margin (Net income attributable to Mitsubishi UFJ Financial Group / Total Revenue): 11.7%

Investment in Growth (FY2025):

• Capital Expenditures (Investment in premises and equipment): ¥131.7 billion
• Strategic Investments:
  • Acquisition of Link Administration Holdings Limited: ¥113.5 billion
  • Acquisition of WealthNavi Inc.: ¥98.8 billion
  • Acquisition of Zenhoren Co., Ltd.: ¥13.0 billion
  • Agreement to acquire shares in JACCS Co., Ltd.: ¥39.0 billion
  • Acquisition of au Kabucom Securities Co., Ltd. (net cash paid): ¥2.1 billion

Currency Impact Analysis (FY2025 vs. FY2024):

• The average exchange rate for the U.S. dollar appreciated from ¥144.62 to ¥152.58 per US$1.00.
• This change increased total revenue by ¥472.5 billion, net interest income by ¥165.8 billion, and income before income taxes by ¥110.3 billion.
• Foreign currency translation adjustments of ¥365.6 billion were recognized in FY2025, with USD functional currency effects accounting for ¥224.1 billion (including MUFG Americas Holdings Corporation at ¥205.6 billion) and THB functional currency effects for ¥71.7 billion (including Krungsri at ¥70.6 billion).

Business Segment Analysis

(Note: Segment financial performance is based on Japanese GAAP.)

Retail & Digital Business Group

Financial Performance (FY2025):

• Net Revenue: ¥944.6 billion (+11.8% YoY)
• Operating Profit: ¥277.0 billion
• Operating Margin: 29.3% Key Growth Drivers: Expansion of customer touchpoints through "Real (Face-to-Face) × Remote × Digital" channels in Japan. Includes contributions from Mitsubishi UFJ NICOS Co., Ltd. and other consumer finance companies. Product Portfolio: Serves retail customers (excluding wealth management) and corporate customers in Japan. Market Dynamics: Focus on domestic market penetration and digital transformation.

Commercial Banking & Wealth Management Business Group

Financial Performance (FY2025):

• Net Revenue: ¥726.6 billion (+15.9% YoY)
• Operating Profit: ¥296.9 billion
• Operating Margin: 40.9% Key Growth Drivers: Serving small and mid-sized enterprises and wealth management clients in Japan, offering commercial banking, trust banking, and securities products.

Japanese Corporate & Investment Banking Business Group

Financial Performance (FY2025):

• Net Revenue: ¥1,025.6 billion (+5.1% YoY)
• Operating Profit: ¥639.0 billion
• Operating Margin: 62.3% Key Growth Drivers: Providing advanced financial solutions to large Japanese corporate customers, particularly those seeking global expansion, leveraging MUFG Group's global network.

Global Commercial Banking Business Group

Financial Performance (FY2025):

• Net Revenue: ¥969.3 billion (+41.5% YoY)
• Operating Profit: ¥438.1 billion
• Operating Margin: 45.2% Key Growth Drivers: Strong performance from Partner Banks in the Asia-Pacific region, including Krungsri and Bank Danamon. The FY2025 segment amounts reflect Krungsri's 15-month period (January 1, 2024 to March 31, 2025) due to a fiscal year-end change. Product Portfolio: Provides financial products and services to local retail, small and medium-sized enterprise, and corporate customers. Market Dynamics: Covers four countries with a population totaling approximately 570 million. Geographic Revenue Distribution:
• Krungsri (Thailand): Strategic subsidiary of MUFG Bank. Operates 573 branches. Largest credit card issuer in Thailand with a 15% market share. MUFG owns 76.88%.
• Bank Danamon (Indonesia): Strategic subsidiary of MUFG Bank. Operates over 865 branches. Provides automotive and consumer goods financing through PT Adira Dinamika Multi Finance Tbk (ADMF). MUFG owns 92.47%.
• VietinBank (Vietnam): MUFG owns 19.73% equity interest.
• Security Bank (Philippines): MUFG owns 20% equity interest.
• Growth Markets: Investments in digital finance companies like Silvrr Technology Co., Ltd. (Akulaku), DMI Finance Private Ltd., HC Consumer Finance Philippines, Inc., PT Home Credit Indonesia, Ascend Money Company Limited, and Globe Fintech Innovations, Inc.

Asset Management & Investor Services Business Group

Financial Performance (FY2025):

• Net Revenue: ¥534.2 billion (+23.6% YoY)
• Operating Profit: ¥135.5 billion
• Operating Margin: 25.4% Key Growth Drivers: Asset management and administration businesses of Mitsubishi UFJ Trust and Banking, MUFG Bank, and First Sentier Investors Holdings Pty Ltd, serving corporations, pension funds, and retail customers.

Global Corporate & Investment Banking Business Group

Financial Performance (FY2025):

• Net Revenue: ¥913.0 billion (+7.7% YoY)
• Operating Profit: ¥473.1 billion
• Operating Margin: 51.8% Key Growth Drivers: Corporate, investment, and transaction banking businesses of MUFG Bank and its subsidiaries, providing solutions to large non-Japanese corporate and financial institution customers outside Japan. MUFG Bank expects to acquire MUFG Securities EMEA plc, MUFG Securities Asia Limited, and MUFG Securities (Canada), Ltd. from Mitsubishi UFJ Securities Holdings Co., Ltd. on October 1, 2025.

Global Markets Business Group

Financial Performance (FY2025):

• Net Revenue: ¥5,113.3 billion (+15.9% YoY)
• Operating Profit: ¥2,259.6 billion
• Operating Margin: 44.2% Key Growth Drivers: Customer business and treasury operations of MUFG Bank, Mitsubishi UFJ Trust and Banking Corporation, and Mitsubishi UFJ Securities Holdings Co., Ltd., including sales and trading in fixed income, currencies, equities, and global investments.

International Operations & Geographic Analysis

Revenue by Geography (FY2025):

International Business Structure:

• Subsidiaries: Key international subsidiaries include MUFG Americas Holdings Corporation (USA), Bank of Ayudhya Public Company Limited (Thailand), PT Bank Danamon Indonesia, Tbk (Indonesia), PT Mandala Multifinance Tbk (Indonesia), Mitsubishi UFJ Baillie Gifford Asset Management Limited (UK), Mitsubishi UFJ Investor Services & Banking (Luxembourg) S.A. (Luxembourg), MUFG Lux Management Company S.A. (Luxembourg), Mitsubishi UFJ Asset Management (UK) Ltd. (UK), MUFG Investor Services Holdings Limited (Bermuda), First Sentier Investors Holdings Pty Ltd (Australia), MUFG Pension & Market Services Holdings Pty Limited (Australia), MUFG Securities EMEA plc (UK), MUFG Securities Asia Limited (China), and MUFG Securities (Canada), Ltd. (Canada).
• Joint Ventures: Strategic alliance with Morgan Stanley, including two securities joint venture companies in Japan: Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. and Morgan Stanley MUFG Securities Co., Ltd.
• Licensing Agreements: Not explicitly detailed in the filing.

Cross-Border Trade:

• Export Markets: Not explicitly detailed in the filing.
• Import Dependencies: Not explicitly detailed in the filing.
• Transfer Pricing: Inter-company transactions and policies are subject to international tax regulations.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: ¥399.9 billion (221,443,433 shares) during FY2025. An additional ¥250.0 billion program was approved in May 2025.
• Dividend Payments: ¥533.0 billion (¥45.50 per common share) for FY2025.
• Future Capital Return Commitments: Intends to cancel treasury shares exceeding approximately 5% of total issued shares.

Balance Sheet Position (as of March 31, 2025):

• Cash and due from banks: ¥4,591.2 billion
• Total Debt: ¥99,717.3 billion (comprising long-term debt, other short-term borrowings, payables under repurchase agreements, payables under securities lending transactions, call money and funds purchased, and due to trust account)
• Net Cash Position: -¥95,126.1 billion
• Debt Maturity Profile:
  • Loans: ¥58,820.8 billion (one year or less), ¥46,495.3 billion (one to five years), ¥19,379.4 billion (five to 15 years), ¥7,185.8 billion (over 15 years).
  • Long-term debt: ¥21,036.1 billion maturing subsequent to March 31, 2025.

Cash Flow Generation (FY2025):

• Operating Cash Flow: ¥1,028.8 billion (compared to -¥1,791.6 billion in FY2024)

Currency Management:

• Cash holdings by major currencies: Not explicitly detailed.
• Natural hedging through operational diversification: Foreign interest-earning assets represented 35.3% of average total interest-earning assets, and foreign interest-bearing liabilities represented 28.9% of average total interest-bearing liabilities during FY2025.
• Financial hedging instruments and strategies: Uses derivative financial instruments to manage interest rate and currency exposures.

Operational Excellence

Production & Service Model: MUFG employs a comprehensive service delivery model across its diverse business groups, ranging from traditional commercial and trust banking to advanced securities and asset management. The Retail & Digital Business Group emphasizes a "Real (Face-to-Face) × Remote × Digital" approach to expand customer touchpoints.

Global Supply Chain Architecture: Key Suppliers & Partners:

• Technology Partners: Strategic alliance with Morgan Stanley for Japanese securities and investment banking businesses. Investments in various digital finance companies.
• Financial Partners: Partner banks in Asia-Pacific (Krungsri, Bank Danamon, VietinBank, Security Bank).

Facility Network:

• Manufacturing (Banking Operations): Not applicable in a traditional sense.
• Research & Development: R&D centers are not specifically detailed by location, but the company focuses on innovation and technology, including an "MUFG AI Policy."
• Distribution: Approximately 2,000 business locations in over 40 countries, including branches of MUFG Bank, Mitsubishi UFJ Trust and Banking Corporation, and partner banks like Krungsri (573 branches) and Bank Danamon (over 865 branches).
• Headquarters: New MUFG Headquarters Building under construction in Tokyo, planned for completion in October 2030.

Operational Metrics:

• Employees: Approximately 150,800 employees as of March 31, 2025, an increase of 10,800 from the prior year, primarily due to the acquisition of MUFG Pension & Market Services Holdings Pty Limited.
• Capacity utilization, efficiency measures, quality indicators: Not explicitly disclosed in a consolidated, quantitative manner.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Regional sales forces and direct customer relationships are integral to commercial and corporate banking segments.
• Channel Partners: Strategic partnerships with local banks in Asia-Pacific (e.g., Krungsri, Bank Danamon, VietinBank, Security Bank) for regional market penetration.
• Digital Platforms: Emphasis on digital channels, particularly within the Retail & Digital Business Group, and investments in digital finance companies.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: Serves large Japanese corporate customers seeking global expansion (Japanese Corporate & Investment Banking Business Group) and large non-Japanese corporate and financial institution customers outside Japan (Global Corporate & Investment Banking Business Group).
• Strategic Partnerships: Alliance with Morgan Stanley for institutional clients.
• Customer Concentration: Not explicitly detailed as a risk metric, but diversified across retail, SME, wealth management, and large corporate segments globally.

Regional Market Penetration:

• Thailand (Krungsri): Leading position as the largest credit card issuer with a 15% market share.
• Indonesia (Bank Danamon): Significant presence with over 865 branches.
• Growth Markets: Active in emerging markets across Asia-Pacific through partner banks and digital finance investments.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics: The Japanese financial system includes 120 ordinary banks (including 4 city banks like MUFG Bank) and 13 trust banks. The global financial industry is characterized by intense competition from diverse players, including traditional commercial and investment banks, asset managers, and rapidly evolving fintech companies. Regulatory frameworks, such as Basel III, significantly influence capital requirements and operational strategies globally.

Competitive Positioning Matrix (Qualitative):

Direct Competitors

Primary Competitors:

• In Japan: Mizuho Financial Group, Sumitomo Mitsui Financial Group, government financial institutions (Japan Finance Corporation, Japan Post Bank, Development Bank of Japan, Japan Bank for International Cooperation), other commercial banks, securities companies (Nomura group, Daiwa group), internet-based institutions (Rakuten group, SBI group), and asset management companies.
• In Foreign Markets: Local and global commercial banks, money center banks, regional banks, thrift institutions, asset management companies, investment advisory companies, credit unions, and fintech companies. Regional Competitive Dynamics: Competition varies significantly by region, with local players often having strong domestic market shares and global players competing on scale, product breadth, and technological innovation.

Risk Assessment Framework

Strategic & Market Risks

Global Market Dynamics: Exposure to economic fluctuations in Japan (GDP, CPI, unemployment, bankruptcies), the United States (GDP, unemployment, interest rates), and the Eurozone (GDP, unemployment). Interest rate changes by central banks (Bank of Japan, Federal Open Market Committee) significantly impact net interest income. Foreign exchange rate fluctuations (JPY/USD, JPY/EUR, JPY/THB) affect international earnings. Technology Disruption: Risks from IT destruction, suspension, defects, misuse, unauthorized data alteration/leakage, and external cybersecurity threats. Mitigation through disaster countermeasure systems, emergency drills, and a robust cybersecurity program. Customer Concentration: Not explicitly detailed as a risk, but diversification across retail, SME, wealth management, and large corporate segments globally helps mitigate this.

Operational & Execution Risks

Global Supply Chain Vulnerabilities: Not explicitly detailed in the filing. Regional Disruptions: Exposure to Russia country risk (approximately ¥0.13 trillion gross as of March 31, 2025). Trade Restrictions: Compliance with export controls, sanctions, and trade regulations across multiple jurisdictions.

Financial & Regulatory Risks

Currency & Financial Risks:

• Foreign Exchange: Significant exposure to foreign currency fluctuations, managed through derivative financial instruments.
• Interest Rate Risk: Managed through derivative financial instruments for both trading and non-trading activities. Non-trading interest rate risk was ¥498.2 billion as of March 31, 2025, with Japanese yen and U.S. dollar accounting for approximately 48% and 49% respectively.
• Credit & Liquidity: Credit risk managed through an integrated credit rating system and allowance for credit losses. Liquidity risk managed through a group-wide system with three stages (normal, concern, crisis) and compliance with LCR and NSFR requirements. Regulatory & Compliance Risks:
• Multi-Jurisdictional Compliance: Subject to complex regulatory frameworks in Japan (FSA, Banking Act, Basel III, TLAC, Deposit Insurance, National Security Act, Consumer Lending) and the U.S. (FRB, OCC, Volcker Rule, swap dealer regulations, resolution plans).
• Trade Regulations: Compliance with export controls and sanctions, including limited transactions with Iran.
• Tax Regulations: International tax planning and transfer pricing risks, with major tax jurisdictions under audit including Japan, U.S. Federal, U.S. California, and Indonesia.

Geopolitical & External Risks

Country-Specific Risks: Political and economic instability in various operating regions, as well as regulatory changes in local jurisdictions. Regulatory Changes: Recent business improvement orders from the FSA to MUFG Bank and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. for inappropriate information sharing and improper solicitation.

Innovation & Technology Leadership

Research & Development Focus: Global R&D Network: While specific R&D center locations are not detailed, MUFG emphasizes accelerating transformation and innovation as a strategic pillar. This includes developing digital services and leveraging AI. Innovation Pipeline: Focus on digital finance, including investments in fintech companies and the establishment of the "MUFG AI Policy" to ensure safe and appropriate AI use.

Intellectual Property Portfolio:

• Patent Strategy: Not explicitly detailed in the filing.
• Licensing Programs: Not explicitly detailed in the filing.
• IP Litigation: Not explicitly detailed in the filing.

Technology Partnerships:

• Strategic Alliances: Collaboration with Morgan Stanley in Japanese stock market research, equity businesses for institutional clients, and foreign currency exchange trading.
• Research Collaborations: Not explicitly detailed in the filing, but implied by the focus on innovation.

Leadership & Governance

Executive Leadership Team (as of June 27, 2025)

International Management Structure: Regional leadership and reporting relationships are in place, with Group Heads for Global Corporate & Investment Banking Business Group and Global Commercial Banking Business Group.

Board Composition: The Board of Directors consists of 16 members, including nine independent outside directors and two internal non-executive directors. It has a Nominating and Governance Committee, Audit Committee, and Compensation Committee, all with a majority of independent outside directors. A Risk Committee and a U.S. Risk Committee also operate.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework: Primary Regulatory Environments:

• Japan: Regulated by the Financial Services Agency (FSA) under the Banking Act. Adheres to Basel III capital adequacy guidelines (18.83% total capital ratio, 16.65% Tier 1, 14.18% Common Equity Tier 1 as of March 31, 2025, all above minimum requirements). Subject to Total Loss-Absorbing Capacity (TLAC) standards (24.64% External TLAC on RWA basis, 9.16% on total exposure basis, both above minimums). Designated as a specified essential infrastructure service provider under the Act on Promotion of Ensuring National Security.
• United States: Subject to Federal Reserve Board (FRB) regulation under the U.S. Bank Holding Company Act of 1956 and the International Banking Act of 1978. MUFG Bank and Mitsubishi UFJ Trust and Banking Corporation operate branches and agencies. Classified as Category II under the FRB Tailoring Rule. Complies with the Volcker Rule and is registered as a swap dealer with the U.S. Commodity Futures Trading Commission. Resolution plans for U.S. operations are due October 1, 2025.

Cross-Border Compliance:

• Export Controls: Adheres to technology transfer restrictions and licensing requirements.
• Sanctions Compliance: Monitors and complies with multi-jurisdictional sanctions, including limited business activities with entities in or affiliated with Iran.
• Anti-Corruption: Complies with the FCPA and local anti-bribery laws, with established compliance management divisions and internal reporting systems.

International Tax Strategy:

• Transfer Pricing: Inter-company pricing policies and documentation requirements are in place.
• Tax Treaties: Leverages double taxation agreements for international tax planning.
• BEPS Compliance: Not explicitly detailed, but international tax planning would account for Base Erosion and Profit Shifting regulations. A "Special Corporate Tax for National Defense" surcharge is expected to increase the Japanese statutory tax rate by approximately 0.9% to 31.5% from April 1, 2026.

Environmental & Social Impact

Global Sustainability Strategy: Environmental Commitments:

• Climate Strategy: Committed to achieving net zero greenhouse gas emissions from its financed portfolio by the end of 2050 and from its operations by the end of the fiscal year ending March 31, 2031.
• Carbon Neutrality: Net-zero commitments are integrated into the overall climate strategy.
• Renewable Energy: Not explicitly detailed in the filing.

Regional Sustainability Initiatives:

• Sustainability Governance: Sustainability-related issues are managed by the Executive Committee with various sub-committees, overseen by the Board of Directors. The Sustainability Committee is chaired by the Chief Sustainability Officer.
• Supply Chain: Not explicitly detailed in the filing.

Social Impact by Region:

• Community Investment: Not explicitly detailed in the filing.
• Labor Standards: Achieved a target of 24.0% female representation in managerial positions in Japan for its three major subsidiaries as of March 31, 2025, with an aim to attain 27.0% by the end of the fiscal year ending March 31, 2027.

Currency Management & Financial Strategy

Multi-Currency Operations (FY2025):

Currency Exposure: Foreign interest-earning assets constituted 35.3% of average total interest-earning assets, and foreign interest-bearing liabilities constituted 28.9% of average total interest-bearing liabilities during FY2025. Hedging Strategies:

• Transaction Hedging: Uses derivative financial instruments to manage short-term foreign exchange risk.
• Translation Hedging: Not explicitly detailed, but balance sheet currency exposure is a consideration for multi-currency operations.
• Economic Hedging: Achieved through operational diversification across multiple geographies and currencies. Uses derivative financial instruments to manage currency exposures.