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| 8-K - 8-K - MUFG Americas Holdings Corp | q32020investorpresentation.htm |
MUFG Americas Holdings Corporation (MUAH) Investor Presentation for the Quarter Ended September 30, 2020 MUFG Americas Holdings Corporation
Forward-Looking Statements and Non-GAAP Financial Measures This presentation describes activities of MUFG Americas Holdings Corporation and its consolidated subsidiaries (the Company) unless otherwise specified. This presentation should be read in conjunction with the financial statements, notes and other information contained in the Company’s most recent annual report on Form 10-K and Quarterly Reports on Forms 10-Q and in any subsequent filings with the Securities and Exchange Commission (SEC). The following appears in accordance with the Private Securities Litigation Reform Act. This presentation includes forward-looking statements that involve risks and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Often, they include the words “believe,” “expect," “target,” “anticipate,” “intend,” “plan,” “seek," "estimate,” “potential,” “project,” "forecast," "outlook," or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” "might," or “may.” They may also consist of annualized amounts based on historical interim period results. There are numerous risks and uncertainties that could and will cause actual results to differ materially from those discussed in the Company’s forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict and could have a material adverse effect on the Company’s financial condition, and results of operations or prospects. For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the SEC, including the discussions under “Management’s Discussion & Analysis of Financial Condition and Results of Operations” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Forms 10-Q and in any subsequent filings with the SEC and available on the SEC’s website at www.sec.gov. In addition to the aforementioned factors, the COVID-19 global pandemic is adversely affecting us, our clients, and our third-party service providers, among others, and its impact may adversely affect our business and results of operations over a period of time. Any factor described above, in this presentation, or in our SEC reports could, by itself or together with one or more other factors, adversely affect our financial condition, results of operations and prospects. All forward-looking statements contained herein are based on information available at the time of this presentation, and the Company assumes no obligation to update any forward-looking statements. This investor presentation includes the tangible common equity capital ratio to facilitate the understanding of the Company’s capital structure and for use in assessing and comparing the quality and composition of the Company's capital structure to other financial institutions. This investor presentation also includes the adjusted efficiency ratio to enhance the comparability of MUAH's efficiency ratio when compared with other financial institutions. This presentation should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP financial measures presented by other companies. Please refer to our separate reconciliation of non-GAAP financial measures in our 10-Q for the quarter ended September 30, 2020. MUFG Americas Holdings Corporation Investor Presentation, 3Q20 2
Strength of U.S. Presence MUAH and MUFG America's mission is to be a foundation of strength and trust committed to meeting the needs of our customers, colleagues, communities and shareholders, fostering shared and sustainable growth. Financial Strength and Value Clients • High quality loan portfolio with historically strong • Strategic footprint in affluent West Coast markets credit performance • MUB serves 2.1 million clients and is committed to • Solid investment grade credit ratings (MUFG Union forging long-standing relationships that enable us to Bank (MUB) is rated A/A3/A) provide strong solutions to our clients • Strong balance sheet with high-quality capital base and strong liquidity – Tier 1 risk-based capital ratio of 15.03% Shareholders Colleagues • Owned by and strategically important to Mitsubishi • Experienced, stable, and diverse local management UJF Financial Group (MUFG), one of the world’s team and a majority of independent board members largest financial organizations • MUFG Americas is committed to Inclusion and • MUFG traces its history back over 360 years and Diversity emphasizes a conservative risk culture with a focus on safety and soundness MUFG Americas Holdings Corporation Investor Presentation, 3Q20 3
MUFG has a Significant Presence in the U.S. Significant presence in the United States through MUFG Americas Holdings Corp. (MUAH), its Intermediate Holding Company, as well as through MUFG branches, collectively referred to as Combined U.S. Operations (CUSO) MUFG2 • Total Assets: $3.2 trillion, 6th largest globally • Loans: $1.0 trillion • Locations: ~2,700 • Employees: ~180,000 across 50+ countries • Deposits: $1.8 trillion, 6th largest globally 9/30/20 assets: 9/30/20 assets: $134.9B $15.5B MUFG U.S. • Total Assets: $379 3 9/30/20 assets: billion $8.3B • Loans: $186 billion, 9th largest among U.S. 9/30/20 assets: 9/30/20 assets: 9/30/20 assets: 9/30/20 assets: 3 1 Banks $132.5B $28.4B $3.1B $3.0B • Deposits: $209 billion3 • Locations: 352 branches4 • Employees: ~13,240 FTE5 1. Net of intercompany eliminations 2. MUFG: Total Assets, Loans, and Deposits as of 6/30/2020 using an exchange rate of USD 1.00 = JPY 107.74; global rankings for Total Assets and Deposits are as of 6/30/2020; locations, employees, and countries are as of 12/31/2019 3. MUFG U.S.: Total Assets of $379 billion, Loans of $186 billion, and Deposits of $209 billion; including intercompany adjustments as of 6/30/2020 4. MUAH has transitioned PurePoint Financial to a fully digital offering and closed the 22 Financial Centers effective 2/20/2020 5. Source: MUAH's 12/31/2019 10-K filing, number of full-time equivalent (FTE) employees for MUAH only MUFG Americas Holdings Corporation Investor Presentation, 3Q20 4
Supporting Clients, Communities, and Colleagues We have seen overwhelming economic and social suffering across our country as a result of COVID-19 and recent protests highlighting social and racial inequality. We believe it is our responsibility to be part of the solution. Clients Communities Colleagues ▪ Provided ~$2.5B of loans to ~14,000 ▪ $3 million commitment to support ▪ Quickly ramped up technology to clients1 under SBA Paycheck local communities globally to enable 80%+ MUFG Americas2 Protection Program accelerate the path to recovery colleagues to work from home ▪ $1.4 million in support of the small ▪ Main Street Lending Program being business sector ▪ Employee Relief Funding of $400,000 offered to existing and select ▪ $500,000 for US-based social safety for employees in the US prospect clients net programs COVID-19 ▪ $100,000 for community-based ▪ All Union Bank branch staff in CA, WA, ▪ Business and Consumer Relief organizations in Canada and Latin and OR received relief pay of up to Programs (e.g., payment deferrals, fee America $2,000 waivers, loan restructurings, temporary ▪ $1 million to existing small business credits, and deposit limit exceptions) grants in the U.S. ▪ MUFG Americas U.S. colleagues who became ill or needed to attend to family matters received additional time off ▪ Redirected clients to three nearby ▪ $10 million Community Recovery ▪ Observation of Juneteenth branches following the La Mesa branch Program aimed at addressing social fire and racial inequalities in the U.S. ▪ MUB is committed to increasing ▪ $5 million will be directed to small diverse representation through hiring, ▪ Steadfast commitment to our business recovery efforts development and retention practices. communities as demonstrated by ▪ $3 million toward rebuilding the Workforce is comprised of3: Social & plans to rebuild the La Mesa branch workforce ▪ 49.6% women Racial ▪ $2 million to continue building ▪ 58.5% people of color Inequality ▪ Since 2003, MUB has committed over financial security ▪ 66.1% women or people of color at $50 million to support minority and the VP level and above women lead investments firms ▪ Planned actions also include delivering enhanced diversity training and strengthening our inclusion and diversity ecosystem 1. As of 7/15/2020 2. Colleagues from the U.S., Canada, and Latin America MUFG Americas Holdings Corporation Investor Presentation, 3Q20 3. As of 3/31/2020 5
2020-2023 Strategic Plan The strategic plan returns MUB to what it was known for in the past: consistent client-centric, relationship-based banking in chosen client segments; drives towards an efficient cost structure; and positions MUAH for improved financial performance on a long-term basis. Strategic Imperatives What we are doing 1 ▪ MUB will be dedicated to a client-centric, relationship-based, “back to basics” approach Execute on Strategic Business Initiatives ▪ Wholesale bank will continue to focus on key client segments and differentiating through innovative credit structures 2 ▪ Transformation will bring a client-first, customer centric operating model to support our Drive Technology business and technology opportunities Transformation ▪ Position the bank for growth 3 ▪ Rewiring will structurally change the way we operate and significantly reduce our cost base Simplify Operating Model & Drive Efficiencies ▪ Regional Bank Restructure will optimize our cost structure by transforming the physical branch network to support target segments as well as change our organization design 4 ▪ Maintain effective oversight of compliance matters Effectively Manage Risk and Meet Regulatory ▪ Advance the firm’s information security control framework Requirements1 ▪ Replace the Core Banking platform and implement the Risk and Regulatory Data program 1. Further covered in the Financial Summary for MUAH MUFG Americas Holdings Corporation Investor Presentation, 3Q20 6
1 MUFG Union Bank Segment Strategy Overview Segment Strategy MUB Regional Bank Global Corporate & Investment Commercial Banking, Business High Net Worth / Mass Affluent / Banking-US Banking & Small Business Affluent Mass Market Lead with ideas Lead with credit and Lead with relationship mortgage Lead with simple, everyday and bespoke team-based collaboration to and deepen with deposits and banking to efficiently grow low- solutions win clients and grow core deposits investments cost deposits Product Strategies Commercial Real Leverage deep commercial lending expertise to drive Estate growth in key segments and verticals Deposits & Treasury Fund the bank efficiently with low-cost core deposits and enhanced collaboration with Transaction Banking Management Capital Markets and Deepen relationships with value-add capital markets, FX, investment banking and wealth management products and advice Advisory Services Home Lending Leverage home lending strength as a key relationship driver and acquisition engine Personal Lending Profitably deploy personal lending for acquisition and primacy Foundational Strategies Organization Organize around client segments, align performance measurement and incentives, maintain safety and soundness Digital Platform Enhance client-facing and internal digital capabilities around segment-specific needs Physical Distribution Optimize the physical distribution for efficiency and fit-for-purpose segment objectives Efficiencies Prioritize efficiency and simplification across segments and supporting operations MUFG Americas Holdings Corporation Investor Presentation, 3Q20 7
1 Regional Bank Strategic Approach by Core Segment “Back to Basics” approach aimed at differentiating among Commercial, Business, and High Net Worth Strategy segments, while efficiently serving the Mass Affluent and Mass Market Target Commercial Banking, Business High Net Worth / Affluent Mass Affluent / Mass Market Segments Banking & Small Business Relationship mortgage to Credit and relationship pricing Simple everyday banking to Lead With opportunistically grow deposits to win clients and grow deposits efficiently grow low-cost deposits and investments Key Market Share | Depth | Wallet Share | Depth | Core Deposits | Primacy | Success Core Deposits Core Deposits Efficiency Measures ▪ Relationship-based approach to client engagement across ▪ Easy, simple everyday business and personal banking, i.e., Bank FreelyTM ▪ Talented and collaborative salesforce, with specialty focus in key growth areas ▪ Efficiently offer conforming Approach mortgage and personal ▪ Competitively priced products and services across credit, loans deposits and investments ▪ Reliable self-service and ▪ A fit-for-purpose physical network basic digital functionality ▪ We will not be everything to everyone MUFG Americas Holdings Corporation Investor Presentation, 3Q20 8
1 Global Corporate Investment Bank-US Strategy and Initiatives Enhance Profitability Optimize Balance Digitize & Enhance Strategy and Deepen Customer Sheet and Enhance Improve Productivity Infrastructure Relationships Risk Capabilities Target Mid Corporate / Large Cap Investment Grade Financial Sponsors Segments Non-Investment Grade Clients Clients ▪ Securitized Products ▪ Lead with ideas / bespoke ▪ Leveraged Finance: Buyout / Underwriting ▪ Selective Mid-Corporate solutions Expansion ▪ Working Capital Solutions ▪ Direct Lending Initiatives ▪ Leasing Transformation and ▪ TPS Acquisition ▪ Working Capital Solutions for Growth Sponsor Owned Companies ▪ Asset-Based Lending/ Distressed Debt ▪ Barbell approach ◦ Global scale to support large cap M&A and cross-border needs ◦ Extending industry expertise to Mid-Corp ◦ Combining fundamental credit competency with emerging structural and marketable credit skills Value • Delivering One MUFG across full Corporate Investment Banking suite Delivery ◦ Bank loans ◦ Capital markets, interest rate and various foreign exchange ◦ Transaction Banking • Extracting value for customized solutions MUFG Americas Holdings Corporation Investor Presentation, 3Q20 9
2 Transformation Program Alignment with Technology Strategy Operation & Technology strategy will create the solid foundation MUB needs to transform and grow its Strategy business in a hyper-competitive marketplace. Replace Legacy & Data-as-a-Service 21st Century Risk Weighted Initiatives End of Life Strategy Infrastructure Run the Bank Platforms Management • Address End-of-Life • Establish and • Enable 'Fit for • Instill customer- • Mature First Line backlog and enable maintain an growth' Ops & Tech first culture processes, risk and move to cloud, ex. enterprise-wide controls to reduce Core Banking & data strategy and • Operate securely in • Empower risk and meet Enterprise Data common data the cloud employees regulatory Platforms governance requirements standards • Drive reduction in • Fill capability • Decrease risk of operating costs gaps with strategic • Ensure robust, non- compliance, • Drive prioritization of hires effective issue and reduce cost of data consumption • Increase speed-to- management compliance requirements market • Improve business processes and make • Build an • Deliver prerequisite • Set priorities for • Ensure security innovation the cultural innovative, Approach for improved building common and norm industry- customer data infrastructure compliance standard experience/reduced • Improve technology security services attrition operations program • Focus on • Make data available automation and • Leverage Integrated • Drive rapid evolution • Address application to support decision development, regulatory compliance by identifying and End-of-Life risk making security and eliminating holistically • Increase proportion operations to drive bottlenecks of open platform safety and soundness • Implement applications & efficiency processes that fix the problem “at the T R A N S F O R M A T I O N A L I G N M E N T left” MUFG Americas Holdings Corporation Investor Presentation, 3Q20 10
3 Rewiring for the Future To effectively compete and meet our clients' needs, we are pursuing a multi-year effort to reduce our cost base and drive continuous improvement. We are targeting a range of $250-$300 million in Strategy benefits for the first phase of the Rewiring Program by 20231, some of which will be offset by reinvestment in technology, regulatory compliance and growth initiatives. a b c d Structural Workforce Geographic Process Simplification Organization Design Procurement Initiatives Distribution & Automation • Leverage strategic • Break down silos • Reduce spend on • Simplify our locations to reduce and combine like consultants, travel operations and our high cost functions in shared and entertainment, automate manual footprint and service centers; and other third-party processes to outsource certain increase spans and and discretionary increase employee activities that can reduce layers spend productivity Approach be performed efficiently and safely by third-party centers of excellence Effort launched at the end of 2018 to drive value to the bottom line with implementation and rigorous Value tracking; accompanied by organization change management program to sustain lower cost base over time; objective is to close cost gap to US peers. 1. Not including any potential reductions in expenses and associated fees transfer-priced to MUFG U.S. branches that may also result from the program MUFG Americas Holdings Corporation Investor Presentation, 3Q20 11
3 Rewiring for the Future - Wins Through more effective and efficient organizational design, adopting better ways of working, redistributing workforce, rationalizing number of suppliers and better rates => we simplify our operating model, speed up delivery/decision making (e.g. fewer layers) and drive “sustainable” savings a Workforce Geographic Distribution b OrganizationalOrganization Design Design ▪ Consolidate Quality Engineering ▪ Integrate RB Ops to Integrated vendors to a single offshore vendor Services for the Americas Ops ▪ Consolidate Production Support ▪ Integrate Global Trust Services (TB) vendors and move offshore ▪ Integrate Bank & Branch Treasury ▪ Operations location strategy (offshore ▪ Reorganized Chief Efficiency & and onshore site optimization) Development office ▪ Migration to Phoenix ▪ Offshoring c ProcurementProcurement (Rate Card)(Rate Card) ▪ Standardize Offshore Delivery Center rate card d Process Simplification & Automation ▪ Reduce unit price of travel ▪ Renegotiate rate card and volume ▪ End to End Credit Simplification rebate for Big 4 firms ▪ Capability Center ▪ Infrastructure Automation ▪ Reg. & Risk Report Automation Procurement (Suppliers) (tracked separately though Transformation) ▪ Contingent labor direct sourcing ▪ Rationalize management reporting in ▪ Contingent labor supplier rationalization Treasury (demand management) ▪ Outside legal counsel RFP ▪ Travel Demand pre-COVID MUFG Americas Holdings Corporation Investor Presentation, 3Q20 12
2 3 Expense & Technology Initiative - Wins Regional Bank Restructuring ▪ Recalibrated operating costs for PurePoint inclusive of closure of all 22 PurePoint Financial Centers ▪ Optimizing the MUB branch network * During early 2021, MUB will consolidate 41 branches or 12% of the network * MUB will also be converting nearly 50 branches into Universal Branch locations, increasing the total to over 100 by 2021 ▪ Run rate savings expected in FY21 Transformation ▪ Initiated Core Banking & Enterprise Data Platform replacement initiatives ▪ Initial set up of Cloud environment allows for rapid deployment of business capabilities ▪ Completed automated delivery capabilities ▪ Delivered foundation technology to improve data controls ▪ Delivered modern workplace tools to improve employee productivity and collaboration during the pandemic ▪ Met initial cost savings targets for FY’19; full run rate savings expected by 2027 MUFG Americas Holdings Corporation Investor Presentation, 3Q20 13
Financial Summary for MUAH This section only includes financials and other disclosures for MUAH and excludes MUFG Americas operations outside of MUAH 14
MUAH Key Business Segments Diversification across segments and products as illustrated through revenue and earnings mix. Key MUAH business segments1 consist of: Regional Global Corporate & Transaction MUFG Securities Bank Investment Banking - U.S. Banking Americas Provides banking products and Delivers the full suite of products and Offers working capital management Engages in capital markets origination services to individual and business services to large and mid-corporate and asset servicing solutions, transactions, domestic and foreign customers in California, Washington, customers based on industry-focused including deposits and treasury debt and equity securities and Oregon through seven major coverage teams, including credit as management, trade finance, and transactions, private placements, business lines: Consumer Banking, well as global treasury management, institutional trust and custody to collateralized financings, and Small Business, Business Banking, capital market solutions and various customers securities borrowing and lending Commercial Banking, Real Estate foreign exchange, interest rate risk transactions Industries, Wealth Markets, and and commodity risk management PurePoint Financial which is a products national online direct bank deposit platform Three Months Ended September 30, 2020 Three Months Ended September 30, 2020 $1,526MM Total Revenues by Segment ($MM)3 $3MM Pre-tax, pre-provision income4 ($MM) $386 25.3% $141 $132 $638 41.8% $53 $14 $184 12.1% $60 3.9% $258 16.9% Regional Global Corporate & Transaction Bank Investment Banking - U.S. Banking $(337) MUSA Other Regional Bank Global Corporate & Transaction Banking MUSA Other² 1. Source: Form 10-Q for the quarter ended September 30, 2020 Investment Banking 2. "Other" includes the MUFG Fund Services segment, Markets segment, Japanese Corporate Banking segment and Corporate Treasury; - U.S. additionally, "Other" includes goodwill impairment recorded in the third quarter of 2020 3. Numbers may not add to 100% due to rounding 4. Pre-tax, pre-provision income is total revenue less noninterest expense. Management believes that this is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle MUFG Americas Holdings Corporation Investor Presentation, 3Q20 15
2020 Third Quarter MUAH Results For the Three Months Ended (Dollars in millions) September 30, June 30, September 30, June 30, Results of operations: 2020 2020 2019 2019 Net interest income $ 759 $ 787 $ 754 $ 777 Noninterest income 767 809 717 649 Total revenue 1,526 1,596 1,471 1,426 Noninterest expense 1,523 1,178 2,770 1,154 Pre-tax, pre-provision income1 3 418 (1,299) 272 (Reversal of) provision for credit losses 41 361 95 56 Income before income taxes and including noncontrolling interests (38) 57 (1,394) 216 Income tax expense (benefit) (155) 39 (18) 20 Net income including noncontrolling interests 117 18 (1,376) 196 Deduct: Net loss (income) from noncontrolling interests 4 4 4 3 Net (loss) income attributable to MUAH $ 121 $ 22 $ (1,372) $ 199 Compared to the third quarter of 2019, net income increased by $1,493 million • Net income attributable to MUAH was $121 million for the three months ended September 30, 2020 ◦ The increase in net income compared to the same quarter in 2019 was largely due to lower noninterest expense of $1,247 million, higher tax benefit of $137 million, lower provision for credit losses of $54 million and higher noninterest income of $50 million ◦ Noninterest expense in the third quarter of 2019 included a $1.6 billion goodwill impairment charge ◦ Noninterest income increased largely due to increases in investment banking and syndication fees and gains on sale of securities partially offset by a decrease in trading account activities • During the third quarter of 2020, due to revisions to multiples used in the market approach component of its fair value estimation, the Company initiated an interim quantitative impairment test of goodwill allocated to two of its reporting units: Commercial Banking and Real Estate Industries and Global Corporate & Investment Banking - U.S. ◦ Due largely to increases in observed market discount rates, the Company recorded an impairment charge of $357 million, which represented a portion of the goodwill allocated to the Global Corporate & Investment Banking - U.S. and Commercial Banking and Real Estate Industries reporting units, which have $483 million and $640 million allocated goodwill remaining after the impairment, respectively. The impairment charge did not result in a cash outflow and did not significantly affect the regulatory capital ratios or the Company’s liquidity position as of September 30, 2020. 1. Pre-tax, pre-provision income is total revenue less noninterest expense. Management believes that this is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle MUFG Americas Holdings Corporation Investor Presentation, 3Q20 16
MUAH Balance Sheet and Profitability Highlights as of Period End • $164.0 billion in total assets, of which MUB has $132.5 billion and MUSA has $28.4 billion Compared to the previous year: • Assets comprised primarily of high-quality residential mortgage / CRE / C&I loans ($85.0 billion) and highly liquid securities ($24.3 billion), among others • Total assets decreased $9.2 • Strong deposit base ($102.0 billion) supported with wholesale funding billion driven by decreases in securities borrowed or purchased under resale September 30, June 30, September 30, June 30, agreements of $6.1 billion, (Dollars in millions) 2020 2020 2019 2019 loans held for investment of Balance sheet (end of period) $3.7 billion, total securities of Total assets $ 164,029 $ 167,350 $ 173,233 $ 172,010 $2.8 billion, other assets of Total loans held for investment 84,974 86,535 88,693 88,468 $0.5 billion and goodwill of Total securities 24,313 23,734 27,097 25,595 $0.4 billion offset by an Securities borrowed or purchased under repo 17,535 17,081 23,626 24,006 increase in total cash and Trading account assets 12,503 12,453 11,741 10,910 cash equivalents of $4.3 billion Total deposits 101,959 102,572 96,671 94,588 Securities loaned or sold under repo 23,432 22,087 29,581 28,917 • Loans held for investment Long-term debt 15,150 16,785 15,912 16,068 decreased primarily due to a Trading account liabilities 2,806 3,256 3,188 3,805 decrease in residential mortgage and home equity MUAH stockholders' equity 16,846 16,658 16,042 17,266 offset by an increase in Performance ratios (YTD) commercial and industrial Net interest margin 1,2 2.02% 2.03% 1.99% 2.03% loans Return on average assets 1 (0.13) (0.34) (0.77) 0.45 • Total deposits increased $5.3 Return on average MUAH stockholders' equity 1 (1.30) (3.40) (7.71) 4.53 billion primarily due to an 1,4 increase in noninterest Return on tangible common equity 1.12 (3.74) 5.90 5.93 bearing deposits, money Efficiency ratio 3 86.58 79.78 118.15 81.80 market and interest checking Adjusted efficiency ratio 4 73.98 75.55 76.36 77.82 offset by a decrease in time deposits 1. Annualized based on year to date activity 2. Net interest margin is presented on a taxable-equivalent basis using the federal statutory tax rate of 21% for 2019 and 2020 3. The efficiency ratio is total noninterest expense as a percentage of total revenue (net interest income and noninterest income) 4. Non-GAAP financial measure in our 10-Q for quarter ended September 30, 2020, June 30, 2020, September 30, 2019 and June 30, 2019 MUFG Americas Holdings Corporation Investor Presentation, 3Q20 17
Balance Sheet Composition and Trends Earning Asset Mix1 Loan Portfolio Composition2 Trading Assets Commercial Construction, 1.8% Securities Purchased under & Other, 7.6% Repo and Borrowed, 11.5% Mortgage, 19.2% Lease Financing, 1.1% Cash and Cash Equivalents, 8.4% Securities, 15.7% Residential Mortgage & Home Equity, Commercial & 39.9% Industrial, 33.3% Loans, 56.8% Other Consumer, 4.7% Earning Assets3 ($B) Deposit Growth4 ($B) (1.4)% +5.5% 39 40 7 7 9 12 13 33 32 34 11 11 12 12 12 23 23 21 18 18 27 27 26 25 24 17 16 14 10 8 2 5 7 88 88 88 88 88 4 5 9 9 10 9 9 39 38 33 35 37 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Loans Securities Money Market Savings Interest Checking Securities Purchased under Repo and Borrowed Trading Assets & Other Time Deposit Non-Interest Bearing Cash and Cash Equivalents 1. Average balance for the year ended September 30, 2020. May not total 100% due to rounding 2. Average balance total loans held for investment, including all nonperforming loans and purchased credit-impaired loans for the year ended September 30, 2020. May not total 100% due to rounding 3. Average balance for the year ended September 30, 2020. May not total 100% due to rounding 4. Ending quarterly balances and growth rate may not total due to rounding MUFG Americas Holdings Corporation Investor Presentation, 3Q20 18
Strong Deposit Base Retail Deposits Commercial Deposits • Grow and retain core, low-cost deposits while • Align product and platform build-outs to increase PxV optimizing bank-wide funding costs and drive core balance growth • Drive primacy and quality of deposits through product • Focus on key customer segments, with improved simplification and innovation, analytics, and sales and customer segmentation, data and reporting, pricing delivery model refinements strategies, and enhanced collaboration with Regional Bank partners • Continue to execute on and evolve COVID-19 response to provide Consumer and Small Business deposit relief efforts Deposit Breakdown ($B)3 Major Deposit Share in Key California Locations1,2 $102.0 billion Total Deposits Metropolitan Statistical Area (MSA) / State Rank Share (%) San Diego-Chula Vista-Carlsbad, CA 4 14.01 Transaction & Money Market Savings Santa Maria-Santa Barbara, CA 3 13.71 Time Non-Interest Bearing Salinas, CA 5 8.37 Los Angeles-Long Beach-Anaheim, CA 4 7.78 Fresno, CA 4 6.86 Oxnard-Thousand Oaks-Ventura, CA 5 5.76 Sacramento-Roseville-Folsom, CA 6 5.07 $40.5 $43.6 40% 43% Riverside-San Bernardino-Ontario, CA 6 3.96 San Francisco-Oakland-Berkeley, CA 7 2.09 San Jose-Sunnyvale-Santa Clara, CA 10 1.89 $8.4 8% $9.5 9% Overall California 4 5.36 1. Source: SNL Financial as of 6/30/20, “Pro Forma” ownership which captures any known M&A or branch closure activity up to the current date, no deposit cap applied 2. The above balances do not include PurePoint deposits which are primarily placed with customers outside MUB's West Coast markets 3. Period-end total deposits may not total 100% due to rounding MUFG Americas Holdings Corporation Investor Presentation, 3Q20 19
Asset Quality Trends Nonaccrual Loans / Total Loans1,2 Net Charge-offs (Recoveries) / Average Loans1,4 1.0% 1.0% 0.83% 0.71% 0.57% 0.59% 0.50% 0.54% 0.52% 0.57% 0.57% 0.61% 0.72% 0.70% 0.5% 0.60% 0.45% 0.5% 0.36% 0.29% 0.47% 0.24% 0.0% 0.37% 0.36% 0.0% -0.5% 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 MUAH Reference Banks' Average³ MUAH Reference Banks' Average³ Criticized5 & ACL / Total Loans Nonperforming Assets by Loan Type ($MM) 6% $88,693 $89,786 $88,213 $86,535 Commercial & $84,974 $700 Industrial Criticized 1 $600 2 Commercial % 4% 4.43% 4.44% Mortgage 206 $500 191 ACL % Construction 3 2.87% 1 $400 45 Residential 2% 44 Loans Held 1 Mortgage & 139 1 for 1.74% 1.78% 1.80% 1.73% 1 3 Home Equity Investment 1.40% $300 147 20 178 137 146 0.77% 0.73% 258 Other 0% $200 222 Consumer 15 3Q19 4Q19 1Q20 2Q20 3Q20 175 55 176 OREO $100 16 Criticized 1,547 1,567 2,579 3,831 3,771 103 0.37% 0.36% 0.24% 0.19% 0.20% NPA / Total Total Allowance for Credit Loss 684 647 1,253 1,561 1,472 $0 Assets 3Q19 4Q19 1Q20 2Q20 3Q20 1. Source: SNL Financial and company reports 2. Total Loans for MUAH is based on Total Loans Held for Investment; Total Loans for Reference Banks' Average is based on gross loans which includes loans held for sale 3. Reference banks consist of 12 CCAR-filing public regional banks (CFG, CMA, COF, FITB, HBAN, KEY, MTB, PNC, RF, TFC, USB, ZION) plus the four largest U.S. money center banks (BAC, C, JPM, WFC). Reference Banks’ average based on reporting through October 25, 2020 (Source: SNL Financial) 4. Annualized ratio 5. Criticized loans held for investment reflect loans in the commercial portfolio segment that are monitored for credit quality based on regulatory ratings. Amounts exclude small business loans, which are monitored by business credit score and delinquency status MUFG Americas Holdings Corporation Investor Presentation, 3Q20 20
COVID-19 Loan Modifications All Consumer and Commercial loan portfolios had a reduction in active COVID-19 loan modifications, which were largely payment deferrals, from 6/30/2020 to 9/30/2020 As of 6/30/2020 As of 9/30/2020 1 % Change in Consumer $ Millions % of Portfolio $ Millions % of Portfolio Balance QoQ Residential Mortgage $3,384 11% $2,258 8% (33)% Home Equity $123 7% $87 5% (29)% Other Consumer $246 6% $67 2% (73)% Total Consumer Portfolio $3,753 10% $2,412 7% (36)% As of 6/30/2020 As of 9/30/2020 % Change in Commercial $ Millions % of Portfolio $ Millions % of Portfolio Balance QoQ C&I $1,306 4% $1,242 4% (5)% CRE $1,353 7% $632 3% (53)% Total Commercial Portfolio $2,659 5% $1,874 4% (30)% 1. Consumer portfolio tracks active payment deferrals only MUFG Americas Holdings Corporation Investor Presentation, 3Q20 21
Consumer Loan Portfolio Consumer portfolio continues to exhibit strong credit quality Residential Mortgage and Home Equity Portfolio Other Consumer Loans1 Period-end Loan Balances and Net Charge-Offs ($MM) Period-end Loan Balances and Net Charge-offs ($MM) $4,428 $4,450 $4,372 $3,855 $3,374$3,373 $39,693 $38,018 $36,036 $33,794 $31,619 $26 $34 $39 $43 $27 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Residential Mortgage and Home Equity Marketplace Lender Originated Consumer Card Other Net Charge-offs 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Net Charge-Offs $ (2) $ (1) $ (1) $ (1) $ — Other Consumer Loans $4,428 $4,450 $4,372 $3,855 $3,374 Other 74 74 71 63 59 Consumer Card 307 291 269 245 229 Marketplace Lender Originated 4,047 4,085 4,032 3,547 3,085 Net Charge-offs 26 34 39 43 27 1. Quarterly balances may not total due to rounding MUFG Americas Holdings Corporation Investor Presentation, 3Q20 22
Residential Mortgage and Home Equity Loans Recent 90+ days past due delinquency rate uptick reflects a large residential mortgage and home equity loan concentration in the Los Angeles county and surrounding areas, where local economies have been slow to recover due to COVID-19 related restrictions 30 to 89 days Past Due 90+ Days Past Due 0.8% 0.74% 0.8% 0.67% 0.6% 0.6% 0.51% 0.42% 0.37% 0.4% 0.4% 0.25% 0.21% 0.2% 0.2% 0.12% 0.14% 0.09% 0.10% 0.06% 0.08% 0.08% 0.05% 0.03% 0.04% 0.04% 0.04% 0.05% 0.0% 0.0% 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Residential and Home Equity Other Consumer Residential and Home Equity Other Consumer In response to the pandemic the Bank has offered payment relief options to customers that include the option to select an initial three-month forbearance plan for our mortgage and home equity line of credit clients impacted by the COVID-19 outbreak, and flexible relief programs for our consumer and business credit card clients, including payment deferral, delinquency removal and late fee waivers for our consumer and business deposit product customers. Residential Mortgage Portfolio as of September 30, 2020: • 39% interest-only (non-amortizing) • 63% weighted average LTV1 for the I/O portfolio • No subprime programs or option ARM loans • 82% of the consumer portfolio has a refreshed FICO score of 720 and above2 • 97% has an LTV less than or equal to 80% 1. At origination 2. Excluding loans serviced by third-party service providers and loans covered by FDIC loss share agreements, includes PCI loans MUFG Americas Holdings Corporation Investor Presentation, 3Q20 23
Commercial Loan Portfolio Commercial loan balance remains stable in 3Q20; net charge-offs continue to illustrate strong credit quality Period-end Loan Balances and Net Charge-offs (Recoveries) ($MM) $49,981 $49,378 $48,886 $45,745 $44,572 $103 $57 $68 $25 $11 Period 3Q19 4Q19 1Q20 2Q20 3Q20 Total Commercial Portfolio $44,572 $45,745 $49,378 $48,886 $49,981 Lease Financing 1,235 1,001 980 1,027 961 Construction 1,609 1,511 1,583 1,712 1,550 Commercial Mortgage 15,909 16,895 16,943 16,683 16,600 Commercial & Industrial 25,819 26,338 29,872 29,464 30,870 Total Net Charge-offs (Recoveries) $57 $68 $25 $11 $103 MUFG Americas Holdings Corporation Investor Presentation, 3Q20 24
Commercial Real Estate Overview Largely secured, California-focused commercial real estate-purposed loans1 with strong credit performance Q3 2020 Property Type Breakdown2 Q3 2020 Geographic Distribution3 Unsecured: 5.1% Other: 15.7% Los Angeles: 21.8% Other: 14.1% Oregon: 3.2% Secured Multi-Family: Texas: 2.3% 94.9% 41.5% Washington: 6.6% California Industrial: 67% 12.2% Orange: 9.7% New York: 5.1% San Diego: 10.7% Other (CA): Retail: 13.0% 15.2% Santa Clara: 4.1% Alameda: 3.7% Office: 14.1% San Francisco: 1.9% Commercial Real Estate Statistics4 (Dollars in millions) September 30, 2020 June 30, 2020 September 30, 2019 Commitments $ 24,017 $ 24,215 $ 23,638 Commercial and Industrial 4,377 4,280 4,410 Commercial Mortgage 16,926 16,954 16,174 Construction 2,715 2,981 3,054 Outstandings 20,301 20,629 19,366 Commercial and Industrial 2,158 2,239 1,852 Commercial Mortgage 16,594 16,678 15,904 Construction 1,549 1,712 1,609 Nonperforming Loans 307 191 20 1. Commercial real estate-purposed loans are comprised of commercial mortgage loans, construction loans and C&I loans to borrowers with real estate-exposed businesses; does not include CMBS in the investment or trading portfolios 2. May not add to 100% due to rounding 3. Excludes loans not secured by real estate; subsets of California reported by Metropolitan Statistical Area (MSA); may not add to 100% due to rounding 4. Figures may not add due to rounding MUFG Americas Holdings Corporation Investor Presentation, 3Q20 25
Materially De-Risked Oil & Gas Portfolio from 2015-2020 Total Exposure Trends Criticized Assets / NCO Trends 2015 vs. 2020 O&G Exposure by Subsectors • Materially de-risked Oil & Gas portfolio from 2015-2020: • Strategically reduced $5.1 billion (66%) of exposure through loan sales and exits • Reduction focused in the highest risk sectors ▪ Exploration and Production (E&P) exposure reduced by $5.0 billion (81%) ▪ $565 million (47%) of the remaining $1.2 billion E&P exposure is Reserve Based Lending MUFG Americas Holdings Corporation Investor Presentation, 3Q20 26
Strong Liquidity Position and Diverse Funding Mix • Under the joint agency Tailoring Rules, Category IV firms (such as MUAH) are required to maintain a liquidity buffer that is sufficient to meet the projected net stress cash-flow need over a 30-day planning horizon under the firm's internal liquidity stress test and subject to monthly tailored liquidity reporting requirements • Unpledged securities of $21.5 billion; ability to meet expected obligations for at least 18 months without access to funding • Key sources of funding consist primarily of deposits ($102.0 billion), supplemented by wholesale funding ($15.8 billion) • Diversified wholesale funding mix, primarily including borrowings from the Federal Home Loan Bank (FHLB) of San Francisco, the parent (Total Loss Absorbing Capacity debt), and unsecured term debt in the capital markets • Unused FHLB capacity is $19.4 billion MUAH Total Funding Profile MUAH Wholesale Funding Profile $ in billions Other LT Borrowings¹: 0.1% Wholesale Funding: 11.2% Repos: 16.6% TLAC 6.8 FHLB 4.9 Unsecured Term Debt 3.1 Deposits: 72.1% CP & Other ST Borrowings 0.6 Other Wholesale Funding 0.4 1. Includes non-recourse debt MUFG Americas Holdings Corporation Investor Presentation, 3Q20 27
High Quality Investment Portfolio 1 Investment Portfolio Commentary ($ in billions) $24.6 $24.0 • Agency residential and commercial mortgage-backed securities consist of securities guaranteed by a U.S. government corporation, such as Ginnie Mae, or a $6.2 government-sponsored agency such as Freddie Mac or $7.2 Fannie Mae • Commercial mortgage-backed securities are collateralized $1.7 by commercial mortgage loans and are generally subject to $0.5 $1.3 $0.9 $0.2 prepayment penalties $1.4 $0.9 $1.4 • CLOs consist of structured finance products that securitize a diversified pool of loan assets into multiple classes of $4.4 $4.1 notes $0.7 • Other debt securities primarily consist of direct bank $0.7 purchase bonds, which are not rated by external credit rating agencies $5.5 $4.4 2 $3.3 $3.9 Investment Portfolio Distribution Non-Agency RMBS: 2.7% 3Q20 2Q20 US Treasury and Govt-Agency: 20.5% Non-Agency CMBS: 18.0% U.S. Treasury and Govt-Agency AFS U.S. Agency MBS AFS Non-Agency RMBS AFS Non-Agency CMBS AFS CLOs: 5.6% Direct Bank CLOs AFS Direct Bank Purchase Bonds AFS Purchase Bonds: 3.8% Other AFS U.S. Treasury and Govt-Agency HTM Other: 2.2% U.S. Agency MBS HTM Agency MBS: 47.3% 1. Source: Fair value of securities in MUAH 10-Q Filing as of September 30, 2020 and June 30, 2020 respectively 2. Source: MUAH 10-Q Filing as of September 30, 2020; may not total 100% due to rounding MUFG Americas Holdings Corporation Investor Presentation, 3Q20 28
High Quality Securities Financing Portfolio (MUSA) Securities Financing Maturity Profile • Securities financing activity largely conducted through MUSA 25,000 • Securities financing portfolio is primarily $20,069 20,000 collateralized by high quality, liquid assets • Approximately 90% is collateralized by ) s 15,000 n o i l U.S. Treasuries and Agency MBS and l i M ( $9,299 $ 10,000 $8,311 10% is backed by equities, credit and other $5,026 5,000 $4,146 $3,238 $3,294 • Robust risk management framework $800 0 governs secured financing profile including 1 O/N and Continuous 2-30 days 31-90 days > 90 days guidelines and limits for tenor gaps, counterparty concentration and stressed Assets Liabilities liquidity outflows Assets2 Liabilities2 4.0% 2.3% 2.8% 2.8% 3.9% 3.5% U.S. Treasury & Government Agencies Agency MBS 44.7% Corporate Bonds 35.4% 54.4% 46.3% Other Debt Equities 1. Includes continuous maturities which include open trades and term evergreen transactions that are primarily used to fund inventory 2. Total assets and liabilities may not total 100% due to rounding MUFG Americas Holdings Corporation Investor Presentation, 3Q20 29
Interest Rate Risk Management of Exposures Other Than Trading Net Interest Income (NII) Sensitivity ($MM) Effect on NII % of Base Case NII $235.4 +200 bps $146.6 $149.6 8.67% 5.18% 5.35% $21.7 $28.1 0.74% 1.04% (1.71)% (2.37)% (2.87)% (2.89)% (3.16)% $(50.3) 12-month horizon $(65.6) $(81.3) $(80.9) $(85.9) Gradual parallel yield curve shift over -100 bps 3Q19 4Q19 1Q20 2Q20 3Q20 Effect on NII % of Base Case NII For additional information regarding estimates and assumptions used in our net interest income sensitivity analysis see “Market Risk Management - Interest Rate Risk Management” in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2019 Form 10-K. MUFG Americas Holdings Corporation Investor Presentation, 3Q20 30
Strong and High Quality Capital Base MUAH's capital ratios exceed the average of the Reference Banks1 Reference Banks' Average1 MUAH Capital Ratios Capital ratios: September 30, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 Regulatory: Common Equity Tier 1 risk-based capital ratio 10.63% 15.03% 14.48% 13.88% 14.10% Tier 1 risk-based capital ratio 12.26 15.03 14.48 13.88 14.10 Total risk-based capital ratio 14.65 16.14 15.65 14.79 14.73 Tier 1 leverage ratio 8.74 9.44 8.94 8.91 8.88 Other: Tangible common equity ratio2 7.63 9.39 8.88 8.84 8.45 ▪ MUAH reports its regulatory capital ratios under the standardized approach of the U.S. Basel III Rules. Under the revised Enhanced Prudential Standards (EPS) and joint agency capital Tailoring Rules, MUAH is subject to Category IV requirements. ▪ MUAH’s 3Q20 Common Equity Tier 1 and Tier 1 Capital Ratios increased to 15.03% over the 2Q20 14.48% reported result; the increase was primarily driven by a $488 million increase in CET1 capital driven by an $188 million increase in U.S. GAAP equity and a $365 million decrease in goodwill and intangibles (net of deferred tax liabilities) associated with the recording of $357 million in goodwill impairment. ▪ Effective October 1, 2020, MUAH became subject to a firm specific 4.4% Standardized Capital Conservation Buffer (Stress Capital Buffer); MUAH’s capital distributions would be subject to limitation should its CET1, Tier 1 Capital and/or Total Capital ratios fall respectively below 8.9%, 10.4% and 11.4% ▪ All CCAR firms, including MUAH, were required to resubmit their 2020 Annual Capital Plan to the Federal Reserve; MUAH resubmitted its 2020 Capital Plan before the November 2, 2020 required due date 1. Reference Banks consist of 12 CCAR-filing public regional banks listed on slide 20 plus the four largest U.S. money center banks. Reference Banks’ average based on reporting through October 25, 2020 (Source: SNL Financial) 2. Non-GAAP financial measures. Refer to our separate reconciliation of no-GAAP financial measures in our 10-K and 10-Q for year/quarter ended September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019 MUFG Americas Holdings Corporation Investor Presentation, 3Q20 31
Strong Credit Ratings For the rating agencies, strong capital and conservative asset quality help offset MUAH’s lower profitability and a higher level of wholesale funding relative to peers Senior Unsecured LT / ST Moody’s1 S&P Fitch2 Reference Banks’ Credit Ratings (10/26/2020) Mitsubishi UFJ A1 A- A- Holding Company Ratings Bank Ratings Financial Group, Inc. Parent P-1 - F1 Long-term ratings S&P Moody's Fitch S&P Moody's Fitch U.S. Bancorp A+ A1 AA- AA- A1 AA- Wells Fargo & Company BBB+ A2 A+ A+ Aa2 AA- MUFG Bank, Ltd. A1 A A- Bank of America Corp. A- A2 A+ A+ Aa2 AA- OpCo P-1 A-1 F1 JPMorgan Chase & Co. A- A2 AA- A+ Aa2 AA Truist Financial Corp. A- A3 A+ A A2 A+ MUFG Americas A3 A- A PNC Financial Services A- A3 A+ A A2 A+ Holdings Corporation - A-2 F1 MUAH A- A3 A A A3 A Intermediate Holding Co. M&T Bank A- A3 A A A3 A A3 A A Citigroup Inc. BBB+ A3 A A+ Aa3 A+ MUFG Union Bank, N.A. Comerica BBB+ A3 A- A- A3 A- OpCo P-2 A-1 F1 Fifth Third Bancorp BBB+ Baa1 A- A- A3 A- KeyCorp BBB+ Baa1 A- A- A3 A- A A MUFG Securities N/R Huntington BBB+ Baa1 A- A- A3 A- Americas Inc. A-1 F1 Capital One Financial Corp. BBB Baa1 A- BBB+ Baa1 A- Broker Dealer Citizens Financial Group BBB+ NR BBB+ A- Baa1 BBB+ Deposits LT / ST Moody’s1 S&P Fitch2 Regions Financial Corp. BBB+ Baa2 BBB+ A- Baa2 BBB+ Zions Bancorporation - - - BBB+ Baa2 BBB+ Aa3 A+ MUFG Union Bank, N.A. NR OpCo P-1 F1 1. On October 15, 2020, Moody's downgraded MUAH's long-term rating to A3 from A2 and MUB's long and short-term ratings to A3/P-2 from A2/P-1. MUB's long-term deposit rating was downgraded to Aa3 from Aa2 and the short-term deposit rating of P-1 was affirmed. 2. On October 23, 2020, Fitch affirmed MUAH, MUB, and MUSA's long and short-term ratings of A/F1 outlook negative. On September 24, 2020, Fitch revised MUFG and MUFG Bank's outlook to stable from negative. MUFG Americas Holdings Corporation Investor Presentation, 3Q20 32
Appendix 33
MUFG's Journey in the Americas We serve our corporate and investment banking clients under the MUFG Corporate and Integration Brand; our consumer, Union Bank, Investment banking of U.S. wealth, and commercial formerly MUFG builds global formed Banking Stephen banking clients under known as network of overseas Operations Cummings is the Union Bank brand; Bank of bases comparable to Union Bank becomes under MUAH/ named and our direct banking California, is major banks of wholly owned MUFG Union CEO for the business under the formed Europe and U.S. subsidiary of MUFG Bank Americas PurePoint brand 1864 1970s 2008 2014 2015 2017 Today 1880 1988 2010 - 2013 2016 2019 2020 MUFG, formerly known MUFG acquires Acquired: Formation MUAH as Intermediate Acquired Intrepid Union Bank will as Yokohama Specie Union Bank • Tamalpais Bancorp (2010) of Regional Holding Company Investment use the FIS Bank, Bank of Tokyo, is ~$600 million assets Bank under Consolidates MUFG U.S. Bankers Modern Banking formed Single Subsidiaries, including Platform to co- • Frontier Bank (2010) Leadership MUFG Securities Americas Acquired Trade develop and co- ~$3 billion assets (Enhanced Prudential Payable Services engineer systems Standards Implementation) (TPS), a leading that will be core to • Pacific Capital Bancorp (2012) supply chain the banking ~$6 billion assets finance platform, transformation from GE Capital program • Smartstreet (2012) ~$1 billion assets Acquired First Union Bank State committed $10 • First Bank (2013) Investments (US) million to launch a ~$550 million assets LLC as Community subsidiary of Recovery • PB Capital (2013) MUFG Fund Program aimed at ~$3.5 billion assets Services, a direct addressing social subsidiary of and racial MUAH injustices MUFG Americas Holdings Corporation Investor Presentation, 3Q20 34
Leadership Team and Board of Directors Stephen Cummings Kazuo Koshi Ryoichi Shinke MEO, REA and MEO of GCIB Business MEO, Group Deputy COO-I MEO, Deputy REA MUFG Group MUFG Deputy Group Head, GCIB Business Group MUFG MEO, REA, Deputy Chief Executive,GCIB MEO, Deputy COO-I MEO, Deputy REA, with oversight of Canada MUFG Business Unit and CEO for MUAH, GCIB MUFG MUFG Deputy Chief Executive, GCIB Business Unit and Latin America operations Bank Business Unit Bank Bank MUAH President & CEO MUAH Executive Chairman MUAH Deputy REA /MUB /MUB /MUB GLOBAL CORPORATE & TRANSACTION BANKING FINANCE LEGAL INVESTMENT BANKING (GCIB) Kevin Cronin Ranjana Clark Johannes Worsoe Michael Coyne Head of Corporate & Investment Head of Transaction Banking Chief Financial Officer General Counsel Banking - Americas REGIONAL BANK MUFG SECURITIES AMERICAS RISK HUMAN RESOURCES (MUSA) Greg Seibly William Mansfield Donna Dellosso Amy Ward Head of Regional Banking Regional Head of Global Markets / Chief Risk Officer Chief Human Resources Officer CEO MUSA JAPANESE CORPORATE CHIEF OF STAFF OPERATIONS & TECHNOLOGY OPERATIONAL EFFECTIVENESS BANKING Daisuke Bito Masatoshi Komoriya Christopher Higgins Francesca Lindner Head of Japanese Corporate Chief of Staff Chief Information & Operations Chief Operational Effectiveness Banking for the Americas Officer Officer Head of the Transformation Program MUAH/MUB Board Members Independent Board Members Shareholder Appointees • Kazuo Koshi • Roberta (Robin) A. Bienfait • Suneel Kamlani* • Stephen Cummings • John R. Elmore • Barbara L. Rambo • Masahiro Kuwahara • Michael D. Fraizer • Toby S. Myerson • Hiroshi Masaki • Ann F. Jaedicke • Dean A. Yoost • Kazuto Uchida MEO: Managing Executive Officer REA: Regional Executive for the Americas * Mr. Kamlani serves only on the Board of Directors of MUFG Americas Holdings Corporation MUFG Americas Holdings Corporation Investor Presentation, 3Q20 35
MUFG Americas takes pride in our Achievements in Banking and Serving Our Communities MUFG Inclusion & Diversity Achievements Strategic Partnerships We support and partner with professional development and community organizations that align with our inclusion and diversity strategy, including: • Asian Pacific Islander Scholarship Fund (APIASF) • DiversityInc Best Practices • Elevate Enterprise Resource Group (ERG), by Spectrum Bloomberg: Gender Human Rights Campaign: DiversityInc. Noteworthy Equality Index, 2017-2020 100% Corporate Equality Company, 2020 Knowledge Index, 2014-2020 • Equality California Institute • Financial Women Association, NY • National Latina Business Women Association • National Veterans Transition Services • Prism International, Inc. - Association of ERGs & Councils Black EOE Journal: Top 25 Women to Watch and Employer, Top LGBT- 25 Most Powerful Women U.S. Veterans Magazine: Best Friendly Employer, and Top • United Negro College Fund (UNCF) in Banking, 2011-2019 of the Best, 2017-2020 Financial & Banking Company, 2010-2020 Corporate Social Responsibility for the Americas CRA Rating of Outstanding Philanthropic Commitment to Communities Community Service Action Plan Goals 64,000 hours 93 million+ $41 billion $9.7 billion Volunteer hours1 completed by Individuals provided with basic In total pledged commitments under In environmental financing and MUFG Union Bank employees needs2 our 5-year Community Service investment1 Provided through the MUFG Union Bank Action Plan (2016-2020) Foundation's nonprofit grantees $17.6 million 28% $830.7 million In philanthropic grants and investments2 Reduced our greenhouse gas In lending and investments to The MUFG Union Bank Foundation directed 90% of contributions to strategic focus emissions from our own operations1 support multi-family affordable areas and 86% to benefit low- and moderate-income communities. housing2 1. For the twelve months ended 3/31/2020 2. For the year ended 12/31/2019 MUFG Americas Holdings Corporation Investor Presentation, 3Q20 36
MUAH Unsecured Long-Term Debt Outstanding and Maturity Schedule1 As of September 30, 2020 MUFG Americas Holdings Corp. Senior Subordinated Preferred External Issued to MUFG Bank External Issued to MUFG Bank $400MM 3.50% Notes due 6/2022 $3,250MM Floating Rate Term Loan due 12/2022 -- -- $400MM 3.00% Notes due 2/2025 $125MM Floating Rate Term Loan due 12/2022 $1,625MM Floating Rate Term Loan due 12/2023 $1,765MM Floating Rate Term Loan due 12/2023 €21.7MM Floating Rate Term Loan due 12/2023 MUFG Union Bank, N.A. Senior Subordinated Preferred External Issued to MUFG Bank External Issued to MUFG Bank $1000MM 3.15% Notes due 4/2022 -- -- $300MM Floating Rate Notes due 3/2022 $700MM 2.10% Notes due 12/2022 $300MM Floating Rate Notes due 12/2022 Other MUAH Subsidiaries Senior Subordinated Preferred External Issued to MUFG Bank / Affiliates External Issued to MUFG Bank / Affiliates -- $333MM Fixed Rate Term Loans due 11/2020 - 9/2027 -- -- Long-Term Debt Redemption Schedule - Next 10 Years MUB Term Debt MUAH Term Debt Other MUAH Subs² 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1. Excludes non-recourse debt, junior subordinated debt, FHLB Loans and capital leases 2. Based on various fixed rate borrowings due between 2020 and 2027 MUFG Americas Holdings Corporation Investor Presentation, 3Q20 37
Contacts Contacts Daniel Weidman Stanley Cecala Managing Director, Corporate Communications Director, Investor Relations 213-236-4050 212-782-5629 daniel.weidman@unionbank.com stanley.cecala@unionbank.com Investor Relations MUFG Americas Holdings Corporation 212-782-6872 DebtCapitalMarketsIR@unionbank.com MUFG Americas Holdings Corporation Investor Presentation, 3Q20 38