TOKYO - Mitsubishi UFJ (NYSE:MUFG) Financial Group, Inc. (MUFG), Japan's leading banking group, disclosed its risk-adjusted capital ratios for the third quarter ended December 31, 2024, in line with Basel 3 regulatory standards. The announcement showed a slight increase in capital ratios for MUFG Bank, Ltd., both on a consolidated and non-consolidated basis.
The consolidated total capital ratio of MUFG as of December 31, 2024, stood at 18.56%, marking an increase from 17.82% as of September 30, 2024. Similarly, the Tier 1 capital ratio improved to 16.38% from 15.72%, and the Common Equity Tier 1 capital ratio rose to 13.84% from 13.53%.
MUFG Bank, Ltd. reported a consolidated total capital ratio of 19.18%, up from 18.11% as of September 30, 2024. The Tier 1 capital ratio increased to 17.24% from 16.11%, and the Common Equity Tier 1 capital ratio climbed to 14.57% from 13.80%.
On a non-consolidated basis, MUFG Bank, Ltd. saw its total capital ratio reach 16.79%, with the Tier 1 capital ratio at 14.97% and the Common Equity Tier 1 capital ratio at 11.92%. Mitsubishi UFJ Trust and Banking Corporation, another entity under MUFG, reported a non-consolidated total capital ratio of 20.69%, a Tier 1 capital ratio of 17.80%, and a Common Equity Tier 1 capital ratio of 15.11%.
These figures reflect a stable capital position for MUFG, aligning with the stringent international standards set by the Basel Committee on Banking Supervision. The Basel 3 framework is designed to improve the banking sector's ability to absorb shocks arising from financial and economic stress, thus enhancing risk management and banking transparency.
The capital ratios are crucial indicators of a bank's financial health, representing the buffer it has to withstand potential losses and continue operating. These ratios are computed in accordance with the Notification of the Financial Services Agency No.20, 2006 for MUFG and No.19, 2006 for MUFG Bank, Ltd. and Mitsubishi UFJ Trust and Banking Corporation.
The disclosed financial figures are based on a press release statement by MUFG Bank, Ltd.
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