Mitsubishi UFJ Financial Group Inc. $(MUFG)$ will "evolve into a growth-oriented approach" and "convert challenges into tangible results," said President and Group CEO Junichi Hanzawa during an interview with The Yomiuri Shimbun.
Hanzawa leads the new management team of the Japanese financial group. The following is excerpted from the interview.
The Yomiuri Shimbun: You assumed the post of president (and group CEO) on April 1. What themes are you focusing on?
Junichi Hanzawa: There are two things I'm strongly focused on. One is to "evolve into a growth-oriented approach," and the other is to "convert challenges into tangible results." As Japan for a long time experienced ultra-low interest rates, even negative interest rates, we as a company managed our business with a focus on structural reform. But now, the Japanese economy is at a turning point, shifting toward sustainable growth. We are at a stage where we need to shift toward a future-oriented, growth-oriented approach.
A culture of taking on challenges has become very ingrained throughout the entire group. I want to focus not only on taking on challenges, but also on turning them into results. MUFG has passed its 20th anniversary. I want to outline a roadmap for being among the top five (international financial institutions by market capitalization) globally, a goal we set 20 years ago.
Yomiuri: Specifically, what kind of changes does a "growth-oriented" approach entail?
Hanzawa: In the past, we often provided financial services only after our clients' business strategies had been finalized. From now on, we want to be by their side starting from when they formulate their business strategies. We want to transform into a group that walks beside our clients, guided by the mindset of "How can we make (our customers' visions) a reality?"
Yomiuri: You are rolling out your new branch concept called M-tto Square. What kind of branches are you aiming for in the future?
Hanzawa: It is important to rethink the nature of our branches. While online trading is becoming widespread, there is growing demand for face-to-face consultations on topics such as asset management and inheritance. We are rolling out M-tto Square as a hub to meet those needs.
We also plan to explore collaborations with companies in other industries, as other firms are doing. Rather than adopting a uniform approach nationwide, we will expand our network while carefully considering branch functions and forms tailored to the specific needs of customers in each region.
Yomiuri: You've set a goal of raising your return on equity $(ROE)$ to about 12%. What will be the core drivers of growth?
Hanzawa: We need to transform our business portfolio. The area of asset management and investor services is particularly important. It currently accounts for only about 5%-6% of operating profit, so there is still room for growth. We aim to raise that figure to double digits in the future. We are also considering mergers and acquisitions in the United States, or in the asset management area. We intend to enhance the competitiveness of our business unit (for that area) as a whole.
Yomiuri: You're considering mergers and acquisitions in the asset management area in Japan?
Hanzawa: With interest rates back in normal territory, Japan is beginning to enter a phase of sustainable growth. How we help grow the Japanese market is extremely important. I believe there are various options available, including mergers and acquisitions, with regard to the domestic asset management business as well.
Yomiuri: What about new business areas?
Hanzawa: Collaboration between financial and non-financial sectors will be one key factor. For example, we can envision a future where we book a trip via an AI agent and make final payments (through a system) that is naturally integrated with financial services. So we'll need to have expertise in non-financial areas such as travel. Whether we handle everything ourselves or partner with others will depend on specific circumstances.
Yomiuri: How will you proceed with your overseas strategy?
Hanzawa: Overseas, our policy is to concentrate management resources on Asia and the United States. We will maximize the benefits of our investment in Shriram Finance Ltd., a major Indian non-bank financial institution, where we have completed our investment. In Southeast Asia, we are also considering having our portfolio companies collaborate to create new businesses.
Yomiuri: Will you focus on the wealth business in Asia?
Hanzawa: That business presents a significant growth opportunity. In Thailand, banks have reached a point where they need to review their business portfolios. The question of how to strengthen wealth management is crucial, and it is an area with plenty of room for growth.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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July 08, 2026 05:58 ET (09:58 GMT)
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