Mitsubishi UFJ Financial Group, Inc. (MUFG – Free Report (commonly known as MUFG) has announced a three-year medium-term management plan from FY2024 to FY2026.
The company outlined its efforts to expand and refine its growth strategy, drive social and environmental progress, and accelerate transformation and innovation. Through this, the company aims to increase return on equity (ROE) to around 9% in fiscal 2026.
Through seven strategies, MUFG aims to add products and channels, improve balance sheet profitability and drive growth over the same period. These include strengthening our domestic retail client base, strengthening our corporate and wealth management businesses, and working to evolve the integrated business model of our Global Corporate and Investment Banking Business Group and Global Markets Business Group. . The company aims to strengthen the resilience of APAC businesses and platforms.
The bank also aims to accelerate transformation and innovation to retain customers, increase agility, and strengthen human capital, system development capabilities, AI and data infrastructure. We also aim to improve risk management and compliance.
Last month, the company announced plans to reorganize its organizational structure starting April 1, 2024, as part of its 2021 medium-term management strategy.
In particular, MUFG will reorganize its Digital Services Business Group and Retail & Commercial Banking Business Group into the Retail & Digital Business Group and Commercial Banking & Wealth Management Business Group, respectively.
The Retail & Digital Business Group focuses on retail clients, while the Commercial Banking & Wealth Management Business Group serves corporate and wealth management clients. MUFG has decided to reorganize its organization in response to rapidly increasing asset management needs due to changes in the economic and financial environment. This will enable individual customers to flexibly utilize MUFG's various channels and provide customized human solutions tailored to their business development, asset management, and succession to the next generation.
MUFG has chosen to transfer group-wide digital transformation and data-related functions to the Corporate Center and create a Digital Strategy Department.
In addition, MUFG announced its asset management business strategy in January, aiming to expand assets under management (AUM) from the current 100 trillion yen to 200 trillion yen by the end of fiscal 2029, which will contribute to achieving ROE. . the goal.
Over the past six months, MUFG stock has risen 16.9% on the New York Stock Exchange, while the industry it belongs to has grown 16.3%.
MUFG currently has a Zacks Rank of #4 (Sell).
You can view See the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Business revitalization and expansion efforts by other companies
Citigroup Inc. (C – Free Report) announced the completion of key initiatives to simplify its operating structure and improve performance, originally announced in September 2023.
According to Citigroup management, “After resetting Citi's strategy and undergoing these consequential changes, we remain a premier banking partner for financial institutions with cross-border needs, a global leader in wealth, And we will continue to execute on our vision of becoming a value-added personal bank.''We will focus on the domestic market and our efforts to transform the company over the long term. ”
UBS Group AG (UBS – (Free Report) plans to expand its wealth management business in the United States over the next three to four years on the back of mergers and acquisitions. The news was reported by Reuters, citing an interview with UBS chairman Colm Kelleher with the NZZ newspaper.
This strategic approach reflects UBS Group's commitment to expand its presence in the US market and further strengthen its presence in the asset management sector.
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