Q: What is BTMU's global business strategy?

A: The Global Business Unit earned a gross profit of JPY926 billion (approximately US$9 billion)* in FY2013, which equates to approximately 36% of BTMU's consolidated gross profit. Among our global regions, Asia generated 28% of the total gross profit and the Americas 58%. Asia's percentage is expected to rise to over 40% following the acquisition of Krungsri in December 2013.

Our global businesses have continued to grow despite the decelerating economies in China and other emerging countries. Loan balances have been steadily increasing. Of the loan average balance of 2nd half of FY2013, the Americas, including Union Bank, achieved approximately JPY13.6 trillion (US$132 billion)*, Asia JPY11.9 trillion (US$115 billion)*, and EMEA JPY6.1 trillion (US$59 billion)*. Our net operating income also increased by 7% in FY2013, along with a growing loan balance.

We are now in a position to ramp up the market presence we secured after the financial crisis in 2008, as well as further upgrade our business model. In order to meet these goals, we have been strengthening revenue streams by enhancing products and services and the business foundation in areas such as compliance and human resources, while taking into account the different business environment of each region. We want to achieve sustainable growth by upgrading our business models and increasing ROE, even in the recovering world economy where competition with other banks is again becoming intense.

We have three priorities for the future. First, for the investment and M&A activities of our Japanese corporate customers expanding their businesses abroad, we will develop our operations in order to provide full banking services similar to those we provide in Japan. Business with major corporate customers outside Japan is another priority. While diversifying our products lines, we will deepen our collaboration with Morgan Stanley in the securities business. BTMU and Morgan Stanley already provide customers with advanced products and services through a co-managed marketing company for corporate finance in the United States and a co-managed marketing system in EMEA and Asia. Third, we will focus on strengthening our transaction banking and markets business to increase our ROE.

* Exchange rate of US$ = JPY102.92