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Mitsubishi UFJ (MUFG) Unveils Medium-Term Business Plan
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Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) , also known as MUFG, unveiled a medium-term business plan for the three years beginning in fiscal 2024 through fiscal 2026.
The company has outlined efforts to expand and refine its growth strategies, drive social and environmental progress, and accelerate transformation and innovation. With this, it aims to increase return on equity (ROE) to around 9% in fiscal 2026.
MUFG aims to add products and channels, improve balance sheet profitability, and drive growth during the said period through seven strategies. These include efforts to strengthen the domestic retail customer base, fortify its corporate and wealth management business, and evolve the Global Corporate & Investment Banking Business Group and Global Markets Business Group integrated business model. The company aims to strengthen its APAC business and platform resilience.
The bank also targets to accelerate transformation and innovation to retain customers, become more agile, and enhance human capital, system development capacity and AI and data infrastructure. It also aims to improve its risk management and compliance.
Last month, the company announced plans to reorganize its organizational structure, starting Apr 1, 2024, as part of the fiscal 2021 medium-term business strategy.
Particularly, MUFG will reorganize its Digital Service Business Group and Retail & Commercial Banking Business Group into Retail & Digital Business Group and Commercial Banking & Wealth Management Business Group, respectively.
The Retail & Digital Business Group will focus on retail customers, whereas the Commercial Banking & Wealth Management Business Group will be responsible for corporations and wealth management clients. In response to the rapidly increasing need for asset management due to the shifts in the economic and financial environment, MUFG has decided to undergo a restructuring of its organization. This will allow its retail customers to flexibly utilize MUFG’s diverse channels and provide customized human solutions for clients’ business development, asset management and succession to the next generation.
MUFG has opted to transfer its Group-wide digital transformation and data-related functions to the Corporate Center and create a Digital Strategy division.
Also, in January, MUFG announced an asset management business strategy with the aim to increase its asset under management (AUM) from the current ¥100 trillion to ¥200 trillion by the end of fiscal 2029. Such efforts will help the company achieve its ROE target.
In the past six months, MUFG shares have gained 16.9% on the NYSE compared with 16.3% growth of the industry it belongs to.
Business Revamp & Expansion Efforts by Other Companies
Citigroup Inc. (C - Free Report) announced the completion of major actions to simplify its operating structure and improve performance, which were initially announced in September 2023.
Per Citigroup management, “After having reset Citi’s strategy and undergone these consequential changes, we will continue to execute on our vision to be the preeminent banking partner for institutions with cross-border needs, a global leader in wealth and a valued personal bank in our home market and focus on our commitment to transform the company for the long term."
UBS Group AG (UBS - Free Report) intends to expand its wealth management business in the United States over the next three or four years on the back of mergers and acquisitions. The news was reported by Reuters and cited an interview of UBS chairman, Colm Kelleher, with the NZZ newspaper.
This strategic approach reflects UBS Group’s commitment to expanding its footprint in the U.S. market and further strengthening its presence in the wealth management space.
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Mitsubishi UFJ (MUFG) Unveils Medium-Term Business Plan
Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) , also known as MUFG, unveiled a medium-term business plan for the three years beginning in fiscal 2024 through fiscal 2026.
The company has outlined efforts to expand and refine its growth strategies, drive social and environmental progress, and accelerate transformation and innovation. With this, it aims to increase return on equity (ROE) to around 9% in fiscal 2026.
MUFG aims to add products and channels, improve balance sheet profitability, and drive growth during the said period through seven strategies. These include efforts to strengthen the domestic retail customer base, fortify its corporate and wealth management business, and evolve the Global Corporate & Investment Banking Business Group and Global Markets Business Group integrated business model. The company aims to strengthen its APAC business and platform resilience.
The bank also targets to accelerate transformation and innovation to retain customers, become more agile, and enhance human capital, system development capacity and AI and data infrastructure. It also aims to improve its risk management and compliance.
Last month, the company announced plans to reorganize its organizational structure, starting Apr 1, 2024, as part of the fiscal 2021 medium-term business strategy.
Particularly, MUFG will reorganize its Digital Service Business Group and Retail & Commercial Banking Business Group into Retail & Digital Business Group and Commercial Banking & Wealth Management Business Group, respectively.
The Retail & Digital Business Group will focus on retail customers, whereas the Commercial Banking & Wealth Management Business Group will be responsible for corporations and wealth management clients. In response to the rapidly increasing need for asset management due to the shifts in the economic and financial environment, MUFG has decided to undergo a restructuring of its organization. This will allow its retail customers to flexibly utilize MUFG’s diverse channels and provide customized human solutions for clients’ business development, asset management and succession to the next generation.
MUFG has opted to transfer its Group-wide digital transformation and data-related functions to the Corporate Center and create a Digital Strategy division.
Also, in January, MUFG announced an asset management business strategy with the aim to increase its asset under management (AUM) from the current ¥100 trillion to ¥200 trillion by the end of fiscal 2029. Such efforts will help the company achieve its ROE target.
In the past six months, MUFG shares have gained 16.9% on the NYSE compared with 16.3% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Currently, MUFG carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Business Revamp & Expansion Efforts by Other Companies
Citigroup Inc. (C - Free Report) announced the completion of major actions to simplify its operating structure and improve performance, which were initially announced in September 2023.
Per Citigroup management, “After having reset Citi’s strategy and undergone these consequential changes, we will continue to execute on our vision to be the preeminent banking partner for institutions with cross-border needs, a global leader in wealth and a valued personal bank in our home market and focus on our commitment to transform the company for the long term."
UBS Group AG (UBS - Free Report) intends to expand its wealth management business in the United States over the next three or four years on the back of mergers and acquisitions. The news was reported by Reuters and cited an interview of UBS chairman, Colm Kelleher, with the NZZ newspaper.
This strategic approach reflects UBS Group’s commitment to expanding its footprint in the U.S. market and further strengthening its presence in the wealth management space.