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MUFG Americas Holdings
Corporation
MUFG Americas Holdings Corporation
Investor Presentation for the Quarter Ended
June 30, 2016
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
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 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,” “continue,” “expect,” “target,” “anticipate,” “intend,” “plan,” “estimate,” “potential,” “ project,” or words of
similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” 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 Securities and Exchange
Commission (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. Any factor described above or in our SEC reports could, by itself or together with
one or more other factors, adversely affect our financial results and condition. 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 additional capital ratios (tangible common equity and Common Equity Tier 1 capital (calculated under the Basel
III standardized approach on a fully phased-in basis)) 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. These presentations should not be
viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures
presented by other companies. Please refer to our separate reconciliation of non-GAAP financial measures in our earnings release dated July 25,
2016 and our 10-Q for the quarter ended June 30, 2016.
Forward-Looking Statements and Non-GAAP Financial Measures
2
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
One of the Largest Regional Bank Holding Companies in the United States
Headquarters New York
Main Banking Office San Francisco
U.S. Branches3 366
Employees4 Approx. 12,200
Total Assets $117.2 billion
Total Loans Held for Investment $79.4 billion
Total Deposits $82.7 billion
Tangible Common Equity5 $12.8 billion
3. In addition, MUAH has two international offices
4. Full-time equivalent staff
5. Tangible common equity is a non-GAAP measure. Refer to MUAH’s earnings release dated July 25, 2016 and
our 10-Q for the quarter ended June 30, 2016 for a reconciliation between certain GAAP amounts and these non-
GAAP measures
MUAH Company Profile as of June 30, 2016 Reference Banks’ Period-End Assets ($bn) 2
• MUFG Americas Holdings Corporation (MUAH) (A3 / A / A)1 and its principal subsidiary MUFG
Union Bank, N.A. (MUB) (A2 / A+ / A)1 are owned by The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(BTMU) and Mitsubishi UFJ Financial Group, Inc. (MUFG). BTMU is a wholly-owned subsidiary
of MUFG.
• Solid balance sheet with high-quality capital base and strong liquidity
• Conservative risk culture resulting in a high quality loan portfolio with strong credit performance
• Network of 366 U.S. retail and commercial branches and two international offices
• Prominent market share in demographically attractive West Coast markets
• Debt issuance by both MUB and MUAH
• In February 2015, MUAH issued $2.2bn of senior notes across 3-, 5- and 10-year maturities
MUB Branch Network
1. Credit ratings represent long-tem issuer ratings from Moody’s, S&P, and Fitch Ratings respectively
2. Source: SNL Financial as of August 8, 2016; Holding companies by asset size, excluding institutions with significantly different
business models.
‘Reference Banks’, referred to throughout this presentation, unless otherwise noted, consist of the 13 CCAR-filing public regional
banks, plus the four largest U.S. money center banks (BAC, C, JPM and WFC)
3
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Core Strategic Subsidiary of Mitsubishi UFJ Financial Group (MUFG)
• MUAH is a U.S. financial and bank holding company with a majority
of independent board members
• An integrated executive management committee oversees all
operations in the Americas (both MUAH and BTMU branches)
• The CEO of MUAH and MUB, Stephen Cummings, has authority
over all of BTMU’s U.S. businesses and serves as a member of the
Board of Directors of MUAH and MUB
To better serve our clients in the Americas and leverage the strength
of MUFG:
• Effective July 1, 2014, the U.S. branch banking operations of BTMU
were integrated within MUB
• Not a legal entity combination, but rather an integration of personnel
and certain business and support activities
Domestic focus with global reach
MUFG Americas business integration effective July 1, 2014
Ownership structure as of June 30, 2016
4
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Core Strategic Subsidiary of Mitsubishi UFJ Financial Group (MUFG)
As of June 30, 2016 (dollars in billions)
Employees4 Approx. 12,200
Total assets $117.2 billion
Total loans held for
investment 79.4 billion
Total deposits 82.7 billion
Common Equity Tier 1
risk-based capital ratio
(fully phased-in)5
13.56 %
1. As of March 31, 2016.
2.JPY denominated amounts converted to USD based on an exchange rate of 102.91 JPY/USD as of June 30, 2016; refer to MUFG’s Investor Relations website (http://www.mufg.jp/english/ir/) for additional information
3. As of March 31, 2016. Calculated in accordance with Japanese banking regulations based on information derived from MUFG’s consolidated financial statements prepared in accordance with Japanese GAAP, as required by the
JFSA
4. Full-time equivalent staff
5. Common Equity Tier 1 risk-based capital ratio (standardized, fully phased-in basis) is a non-GAAP financial measure that is used to assess a bank holding company's capital position as if the transition provisions of the U.S. Basel III
rules were fully phased in for the periods in which the ratio is disclosed. Please refer to our separate reconciliation of non-GAAP financial measures in our earnings release dated July 25, 2016 and our 10-Q for the quarter ended June
30, 2016
As of June 30, 2016 (dollars in billions)
Employees1 Approx. 140,000
Total assets $2,897.6 billion 2
Total loans 1,055.4 billion 2
Total deposits 1,563.4 billion 2
Common Equity Tier 1
risk-based capital ratio
(fully phased-in)3
12.10 %
5
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
• The enhanced prudential standards require that all foreign banking organizations with at least $50bn in assets
transfer ownership of controlled U.S. subsidiaries to an Intermediate Holding Company (IHC) by July 1, 2016
• MUAH was designated as MUFG's IHC for MUFG’s non-branch U.S. subsidiaries
July 2016 Organizational Structure Meets Regulatory Requirements
6/30/16 assets: $116.0bn1 12/31/15 assets: $34.2bn1
1. Most recent publicly disclosed asset figures for MUB and MUS(USA)
Mitsubishi UFJ Financial Group (MUFG)
Mitsubishi UFJ
Securities
Holdings (MUS)
MUFG Americas Holdings Corp (MUAH)
Intermediate Holding Company
(formerly named UnionBanCal Corporation)
MUFG Union
Bank, N.A (MUB)
100%
Non-Bank Subs
(Leasing)
MUFG Securities
Americas Inc.
Bank of Tokyo-
Mitsubishi UFJ
(BTMU)
Mitsubishi UFJ
Trust and Banking
(MUTB)
100%
BTMU
NY
BTMU
LA
BTMU
Chicago
MUTB
NY
Branches
Combined U.S. Operations
3.8% 96.2%
100%
6
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
MUFG Securities Americas Inc.
Capital Markets platform built to serve clients
· Platform delivers capital markets capabilities and solutions
to MUAH & BTMU’s client base
· MUS(USA)’s repo portfolio is substantially all collateralized
by high quality, liquid assets
· Approximately 90% is collateralized by U.S. Treasuries and Agency
MBS and 10% is backed by equities and corporate bonds
· Approximately 90% of the reverse repo portfolio is transacted through
FICC or a triparty custodian
· Rated A+ by S&P and A by Fitch
Capital Markets
· Specialists in debt and equity capital markets providing clients with
comprehensive financing solutions across international capital
markets
Fixed Income
· Leverage expertise of global organization in all major financial
centers, providing market-making services across asset-backed
securities, credit and rates
· Trading, sales and research organized around supporting the new-
issue franchise and investor clients
Equities
· Sales, trading and research capabilities across cash equities and
convertible bonds; service leader in the Japanese market; provide
investors access to other global markets
Derivatives
· Agent only, derivative solutions for clients across rates, equities
and credit products
Overview of core business areas
1. MUFG Securities Americas, Inc. (formerly Mitsubishi UFJ Securities (USA), Inc.) Consolidated Statement of Financial Condition from Form X-17A-5 as of 12/31/2015
(Dollars in millions)
Assets Liabilities
Cash and cash equivalents 125$ Short-term borrowings 1,048$
Securities borrowed 7,114 Securities loaned 2,053
Securit es purchas d nder Securities sold under
agreements to resell 23,933 repurchase agreements 27,052
Securities own d 2,656 Securities sold but not yet
Oth r asset 339 purchased 2,916
Total assets 34,167$ Subordinated debt 220
Other liabilities 259
Total liabilities 33,548$
Equity
Common stock and retained
earnings 619$
Total liabilities and equity 34,167$
MUFG Securities Americas Inc.
Balance Sheet 1 as of December 31, 2015
7
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
2016 Second Quarter MUAH Results
Compared to the previous quarter:
• Net Income increased $256MM
• Primarily due to a reduction in provision for credit losses
• Net interest income increased $23MM due to an increase in loans held for investment and in the net interest margin
Compared to the year-ago quarter:
• Net Income increased $124MM
• Increase primarily due to increase in total revenue and decrease in provision for credit losses.
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.
For the Three Months Ended
June 30, March 31, June 30,
(Dollars in millions) 2016 2016 2015
Results of operations:
Net interest income $ 720 $ 697 $ 719
Noninterest income 466 395 385
Total revenue 1,186 1,092 1,104
Noninterest expense 810 876 843
Pre-tax, pre-provision income 1 376 216 261
(Reversal of) provision for credit losses (37 ) 162 15
Income before income taxes and including
noncontrolling interests 413 54 246
Income tax expense 119 17 71
Net income including noncontrolling interests 294 37 175
Deduct: Net loss from noncontrolling interests 11 12 6
Net income attributable to MUAH $ 305 $ 49 $ 181
8
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
MUAH Balance Sheet and Profitability Highlights
1. Core deposits exclude brokered deposits, foreign time deposits, domestic time deposits greater than $250,000 and certain other deposits not considered to be core customer relationships
2. Annualized
3. Net interest margin is presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent.
4. These ratios exclude the impact of the privatization transaction and merger costs related to acquisitions. Management believes that these ratios provide useful supplemental information regarding MUAH's business results. Refer to MUAH’s
earnings release dated June 25, 2016 for a reconciliation between certain GAAP amounts and these non-GAAP measures
5. The efficiency ratio is total noninterest expense as a percentage of total revenue (net interest income and noninterest income)
6. Adjusted efficiency ratio is a non-GAAP financial measure. Refer to MUAH’s earnings release dated July 25, 2016 for a reconci liation between certain GAAP amounts and these non-GAAP measures
Compared to 1Q 2016:
• Period end deposit balances
decreased primarily due to a single
short term deposit at previous
quarter end
• Net interest margin increased 8bps
reflecting higher yields on
securities and a favorable change
in the mix of borrowed funds
• Efficiency ratio decreased by
approximately 12 percentage
points
As of and For the Three Months Ended
June 30, March 31, June 30,
(Dollars in millions) 2016 2016 2015
Balance sheet (end of period)
Total assets $ 117,156 $ 120,909 $ 114,266
Total securities 23,105 23,616 24,287
Total loans held for investment 79,392 79,299 76,399
Core deposits 1 75,296 74,882 73,080
Total deposits 82,692 89,500 81,702
Long-term debt 10,445 11,843 8,852
MUAH Stockholder's equity 16,179 15,758 15,260
Performance ratios
Net interest margin 2, 3 2.77 % 2.69 % 2.84 %
Return on average assets 2 1.05 0.17 0.64
Return on MUAH stockholder's equity 7.65 1.25 4.73
Return on MUAH stockholder's equity excluding
privatization and merger costs 2, 4 8.96 1.54 5.69
Efficiency ratio 5 68.42 80.17 76.42
Adjusted efficiency ratio 6 61.13 72.12 69.02
9
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Business Model for Key Segments
MUAH will evaluate the impact of the July 1, 2016 transfer of subsidiaries as a result of complying with enhanced prudential standards requirements on its business segments during the third quarter of 2016.
1. HighMark Capital Management, Inc (a registered investment advisor) and UnionBanc Investment Services LLC (a registered broker-dealer and investment advisor) are both subsidiaries of MUFG Union Bank, N.A.
Realignment to consolidate former Commercial Banking customers within other segments
Offers products and services to individuals and
businesses through five main divisions:
• Residential Lending: centralized origination,
underwriting, processing, servicing, collection and
administration for residential mortgages and
HELOCs
• Retail Banking: comprehensive relationship
management to clients with ≤$3 million in deposits
and investment balances through 353 full-service
branches in California Washington and Oregon,
ATMs, call centers, and internet banking
• Wealth Markets (Private Wealth Management and
Asset Management): comprehensive relationship
management to clients with >$3 million in deposits
and investment balances including through
Highmark and UBIS1
• Commercial Banking: commercial credit products
including commercial loans, accounts receivable,
inventory and trade financing primarily for
corporate customers with annual revenues ≤$500
million based on the U.S. West Coast
• Real Estate Industries has four business lines:
• Institutional Markets covering REITs, fund
managers and institutional owners
•Regional Markets for West Coast privately
capitalized investors/developers
•Community Development Finance covering for-
profit and non-profit affordable housing
developers
•Commercial Mortgage Ops to cover middle
market commercial real estate investors
• Provides corporate and commercial lending
products, including loans, lines of credit and
other extensions of credit to customers with
target revenues greater than $500 million.
• Employs an industry-focused strategy
including dedicated coverage teams in
General Industries, Power and Utilities, Oil
and Gas, Telecom and Media, Technology,
Healthcare and Nonprofit, Public Finance,
and Financial Institutions (predominantly
Insurance and Asset Managers)
Regional Bank U.S. Wholesale Banking
Investment Banking
& Markets
Transaction Banking
• Provides working capital
management and asset
servicing solutions, including
deposits and treasury
management, transactional
trade finance, and institutional
trust and custody
• Technology-driven business;
manages Transaction Banking
and enterprise digital channel
product development
• Provides structured credit
services, including project
finance, leasing & equipment
finance, commercial finance,
funds finance and
securitizations
• Includes Global Capital Markets
which provides syndicated
loans, equity & debt
underwriting, tax equity and
merchant banking investments
• Delivers risk management
solutions including FX, interest
rate and energy
10
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Strong and High Quality Capital Base
1. Reference Banks’ consist of the 13 CCAR-filing public regional banks, plus the four largest U.S. money center banks, depicted on slide 3. Reference Banks’ average based on reporting through August 8, 2016 (Source: SNL Financial)
2. Tangible common equity ratiio is a non-GAAP measure. Refer to MUAH’s earnings release dated July 25, 2016 for a reconciliation between certain GAAP amounts and these non-GAAP measures
3. Common Equity Tier 1 risk-based capital ratio (standardized, fully phased-in basis) is a non-GAAP financial measure that is used to assess a bank’s capital position as if the transition provisions of the U.S. Basel III rules were fully phased in
for the periods in which the ratio is disclosed. Please refer to MUAH’s earnings release dated July 25, 2016 and our 10-Q for the quarter ended June 30, 2016 for a reconciliation of between certain GAAP amounts and these non-GAAP
measures
MUAH has received capital contributions totaling in excess of $5bn since 2009, including a $1.2bn capital contribution from
BTMU and a $300 million subordinated debt issuance to BTMU, both in December 2013
• MUAH reports its regulatory capital ratios under the standardized approach of the U.S. Basel III rules,
with certain provisions subject to phase-in periods
• MUB is subject to both the standardized and advanced approaches rules
Capital ratios:
Reference Banks'
Average1 MUAH Capital Ratios
June 30, 2016
June 30,
2016
March 31,
2016
June 30,
2015
Regulatory:
Common Equity Tier 1 risk-based capital ratio 11.03% 13.58% 13.33% 13.56%
Tier 1 risk-based capital ratio 12.00 13.58 13.33 13.56
Total risk-based capital ratio 14.33 15.44 15.32 15.30
Tier 1 leverage ratio 9.86 11.59 11.41 11.46
Other:
Tangible common equity ratio2 9.08 11.27 10.55 10.70
Common Equity Tier 1 risk-based capital ratio
(U.S. Basel III standardized approach; fully
phased-in)3
N/A 13.56 13.31 13.49
11
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Robust Liquidity at MUB and MUAH
• MUB's liquidity is supported by our core deposit base and a portfolio of high quality securities
• Double leverage ratio is 103% as of 3/31/20161
1. Source: MUAH FR Y-9LP as of March 31, 2016; defined as the Total Equity Investment in Subsidiaries divided by Total Equity. Management believes that this is a useful financial liquidity measure because it enables investors and others to
assess the extent to which the Company is using debt to fund its equity investment in its subsidiaries.
2. Amortized Cost / Carrying Amount reflects amortized cost except for balances transferred from AFS to HTM. Those balances reflect amortized cost plus any unrealized gains or losses at the date of transfer
3. The Liquid Book is comprised of securities typically sponsored by the U.S. government and U.S. government agencies and is the primary source of U.S. Basel III LCR defined High Quality Liquid Assets for liquidity risk management purposes;
the Spread Book consists of all other securities within our Asset Liability Management portfolio
4. Interest bearing deposits in banks
Excess Reserves4: $2.3 Bn
Unpledged securities: $21.1 Bn
Unused FHLB and Fed Capacity: $28.8 Bn
Deposit and Wholesale Funding ($bn) as of June 30, 2016
06/30/2016, $millions
Amortized Cost /
Carrying
Amount2
Net
Unrealized
Gain (Loss) Fair Value
Liquid Book3
U.S. Treasury $ 645 $ 19 $ 664
U.S. government agency and
government-sponsored agencies:
Residential-mortgage backed
securities (RMBS) 14,135 246 14,381
Commercial-mortgage backed
securities (CMBS) 1,643 96 1,739
Total liquid book 16,423 361 16,784
Spread Book3:
Privately issued:
RMBS 245 3 248
CMBS 1,474 53 1,527
Collateralized loan obligations 3,267 (29 ) 3,238
Asset-backed and other 7 — 7
Total spread book 4,993 27 5,020
Other securities
Direct bank purchase bonds 1,547 28 1,575
Other 32 1 33
Equity securities 6 1 7
Total other securities 1,585 30 1,615
Total securities 23,001 418 23,419
Total Available For Sale (AFS)
securities $ 12,742 $ 104 $ 12,846
Total Held To Maturity (HTM)
securities 10,259 314 10,573
some numbers may not sum due to rounding
12
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Proposed Internal TLAC1 Requirement
· The Federal Reserve Board’s proposal for Total
Loss Absorbing Capacity (“TLAC”) would require
MUAH to hold 18.5% of its risk weighted assets
in TLAC-eligible instruments by January 1, 2022
· At least 7% must be in the form of eligible Long Term
Debt issued to MUAH’s foreign parent
· At 6/30/2016, MUAH/MUB had sufficient
common equity capital and term debt to fulfill the
proposed quantitative requirements
· However, TLAC-eligible debt must be subordinated
obligations of the holding company and be issued to a
foreign parent
· The proposed requirements for long term debt become
fully effective on Jan 1, 2019
· MUFG is expected to be the external TLAC
funding entity
MUAH/MUB have sufficient term debt under the TLAC NPR; Full compliance requires some modifications
1. Federal Reserve Notice of Proposed Rulemaking concerning Total Loss-Absorbing Capacity, October 30, 2015
$13,233 $13,233
$300
$6,800; 7%
$750
$3,500
$5,850
$3,600
0%
5%
10%
15%
20%
25%
Actual If modified to comply
with TLAC NPR
%
o
f R
W
A
Illustrative Example: 6/30/2016
MUAH &
MUB
External
MUB Sr to
BTMU
MUB Sub
to BTMU
MUAH
Sub to
MUFG /
BTMU
CET1
Internal
TLAC
Minimum
TLAC Min
(incl. buffer)
$ millions
13
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
MUB and MUAH Debt Outstanding and Maturity Schedule
As of June 30, 2016
MUAH and MUB Term Debt Redemption Schedule - Next 10 Years
MUFG Union Bank, N.A.
Senior Subordinated Preferred
External Issued to Parent External Issued to Parent
$500MM Floating Rate Notes due 9/2016 $1,000MM Floating Rate Term Loan due 1/2018 $750MM Floating Rate Term Loan due 6/2023 --
$500MM 1.50% Notes due 9/2016 $1,500MM Floating Rate Term Loan due 1/2018
$250MM Floating Rate Notes due 5/2017 $1,000MM Floating Rate Term Loan due 1/2018
$500MM 2.125% Notes due 6/2017
$1,000MM 2.625% Notes due 9/2018
$500MM 2.25% Notes due 5/2019
MUFG Americas Holdings Corp.
Senior Subordinated Preferred
External Issued to Parent External Issued to Parent
$250MM Floating Rate Notes due 2/2018 -- -- $300MM Floating Rate Term Loan due 12/2023 --
$450MM 1.625% Notes due 2/2018
$1,000MM 2.25% Notes due 2/2020
$400MM 3.50% Notes due 6/2022
$500MM 3.00% Notes due 2/2025
14
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Deposit Trends
1. Source: FDIC Summary of Deposits as of 6/30/2015
Average deposit balances have been steady over the last year
Deposits1
Metropolitan Statistical Area (MSA) / State Rank Share (%)
Santa Maria-Santa Barbara, CA 2 17.6
San Diego-Carlsbad, CA 3 14.1
Los Angeles-Long Beach-Anaheim, CA 4 10.0
Fresno, CA 4 7.5
Oxnard-Thousand Oaks-Ventura, CA 4 6.4
Salinas, CA 5 9.7
Riverside-San Bernardino-Ontario, CA 6 4.6
Sacramento--Roseville--Arden-Arcade, CA 6 4.4
San Francisco-Oakland-Hayward, CA 7 3.4
Seattle-Tacoma-Bellevue, WA 7 3.0
San Jose-Sunnyvale-Santa Clara, CA 7 2.7
California Total 4 6.8
Washington Total 12 2.2
Average Quarterly Deposit Breakdown ($ billions)
85
15
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Earning Asset Mix 2Q 2016
Loan mix balanced between residential and commercial
1. Average balance for the quarter ended June 30, 2016. May not total 100% due to rounding.
2 Total loans held for investment, including all nonperforming loans
Loan Portfolio Composition Earning Asset Mix 1
Loans2: 76%
16
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Commercial Loan Portfolio
Moderate growth in commercial lending. Net charge-offs in 2Q 2016 driven by oil & gas borrowers and covered by pre-
established credit allowance
Commercial and Corporate Portfolio
Period-end Loan Balances and Net Charge-offs/(Recoveries) ($mm)
17
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Consumer Loan Portfolio
Consumer portfolio continues to exhibit strong credit quality
Home Equity & Other Consumer Portfolio
Period-end Loan Balances and Net Charge-offs ($mm)
Residential Mortgage Loan Portfolio
Period-end Loan Balances and Net Charge-offs ($mm)
$130 $126 $125
$118 $115
18
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Net Interest Margin Impacted by Low Rate Environment
Low interest rate environment has pressured net interest margin
1. Net interest margin is annualized and presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent
2. Total loans held for investment
Average Earning Assets ($bn) Net Interest Income
2
1
1
19
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Interest Rate Risk Management
Net Interest Income (NII) ($mm)
+200
bps
-100
bps
G
rad
u
al
p
a
ral
lel
yi
e
ld
cur
v
e
s
h
if
t ove
r
1
2
-m
o
n
th
h
o
ri
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o
n
20
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Asset Quality Trends
Nonperforming Assets by Loan Type ($mm)
Net Charge-offs / Average Loans4 Nonperforming Loans / Total Loans1
Criticized3 & Nonaccrual Loans / Total Loans
1. Source: SNL Financial and company reports; MUAH ratio is three month-average, Reference Banks’ ratios are YTD
2. Reference Banks’ consist of the 13 CCAR-filing public regional banks, plus the four largest U.S. money center banks. Reference Banks’ average based on reporting through 8/8/2016 (Source: SNL Financial)
3. Criticized loans held for investment reflect loans in the commercial portfolio segment that are monitored for credit quality based on internal ratings. Amounts exclude small business loans, which are monitored by business credit score
and delinquency status
4. Annualized ratio
10
9
6
6
5
2 2
21
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
• Lower market pricing has led to downward rating migration within the portfolio
• We proactively risk rate and downgrade loans based on revised cash flow expectations and collateral assessments
• Reserve for oil & gas loans is strong at 10.2% of outstanding balances (11.8% for Petroleum Exploration
and Production (PEP) only)
• 74% of oil & gas commitments are Shared National Credit (SNC) with 25% of SNCs agented by us
• Net charge-offs of $95 million within oil & gas portfolio in 2Q 2016. Approximately $51 million of the
charge-offs resulted from the transfer of certain PEP loans from held for investment to held for sale
Oil & Gas Overview
Oil & Gas Portfolio Statistics
as of June 30, 2016
Oil & Gas Portfolio Commitments
as of June 30, 2016
Price declines led to increased reserves; reserve coverage remains strong
(Dollars in millions) Loan Amt Allowance
Reserve
Ratio
Oil & Gas portfolio:
Total Commitments: $ 5,787 $ 326 5.6 %
Of which are PEP 4,529 320 7.1
Of which are criticized 2,541
Of which Loans Outstanding; 2,835 290 10.2
Of which are PEP 2,434 287 11.8
Of which are criticized 1,577
22
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Oil & Gas Overview
PEP Only Oil & Gas Portfolio
• Allowance for loan & lease losses is 10.2% of
outstanding O&G loans
• Second lien / junior commitments are de minimis
(less than 1% of total commitments)
• 78.3% of oil & gas portfolio commitments; 85.9% of
outstanding loans
• Allowance for loan & lease losses is 11.8% of
outstanding PEP loans
• All Criticized and Nonaccrual oil & gas loans are
within the PEP sub-sector as of June 30
Focus on reserve-secured PEP credits
Oil & Gas Outstandings PEP Outstandings
(Dollars in millions)
June 30,
2016
March 31,
2016
Total outstanding $ 2,835 $ 3,536
Criticized 1,577 1,709
Nonaccrual 253 547
(Dollars in millions)
June 30,
2016
March 31,
2016
Total outstanding $ 2,434 $ 3,080
Criticized 1,577 1,705
Nonaccrual 253 547
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MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Commercial Real Estate Overview
2Q 2016 Geographic Distribution2 2Q 2016 Property Type Breakdown
Secured 89%
Commercial Real Estate Statistics
($ MM)
December 31,
2014
December 31,
2015
March 31,
2016
June 30,
2016
Commitments $ 23,877 $ 23,552 $ 24,400 $ 24,211
Commercial and Industrial 5,977 5,328 5,146 4,960
Commercial Mortgage 14,275 14,175 15,190 15,404
Construction 3,626 4,049 4,064 3,847
Outstandings 18,727 18,919 19,768 19,937
Commercial and Industrial 2,965 2,718 2,597 2,538
Commercial Mortgage 14,016 13,904 14,920 15,144
Construction 1,746 2,297 2,251 2,255
Nonperforming Loans 40 37 30 26
California
62%
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
2. Excludes loans not secured by real estate; subsets of California constitute Metropolitan Statistical Areas (MSA)
Largely secured, California-focused commercial real estate-purposed loans1 with strong credit performance
24
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Residential Mortgage and Home Equity1 Performed Well Through the Crisis
1. Includes Other Consumer loans
2. At origination
3. Excluding loans serviced by third-party service providers and loans covered by FDIC loss share agreements, includes PCI loans
Data Source: Consumer Lending Monthly Summary and Key Statistics; Source: Residential – Mortgage Bankers Association, Home Equity-American Bankers Association
Notes: National (SA) is seasonally adjusted American Bankers Association data; Benchmark metrics are reported on a one quarter lag
Residential Mortgage Performance Trends
(30 days Past Due + in Foreclosure)
Home Equity Total Delinquency
(30 Days + Past Due)1
Residential Mortgage Portfolio as of June 30, 2016:
• 43% interest-only (non-amortizing)
• 66% weighted average LTV2 for the I/O portfolio
• No subprime programs or option ARM loans
• Low delinquency rate due to focus on prime loans, high FICO scores, and low LTVs
• 78% of the consumer portfolio has a refreshed FICO score of 720 and above3
• 96% has an LTV less than or equal to 80%
25
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
MUAH Compares Favorably With Others
1. Reference Banks consist of the 13 CCAR-filing public regional banks, plus the four largest U.S. money center banks, depicted on slide 3. Reference Banks' average based on reporting through 08/8/2016 (Source: SNL Financial)
2. Annualized ratio
3. Ratings as of June 30, 2016
4. Standard & Poor's ratings for MUAH and MUB on negative outlook as of November 30, 2015
Net Charge-offs / Average Loans1,2 Nonperforming Loans / Total Loans1
Common Equity Tier 1 (Basel 3) Ratio1 Reference Banks’ Credit Ratings1,3
Holding Company Ratings Bank Ratings
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 A A2 AA- AA- Aa2 AA
MUAH4 A A3 A A+ A2 A
BB&T Corporation A- A2 A+ A A1 A+
JPMorgan Chase & Co. A- A3 A+ A+ Aa3 AA-
PNC Financial Services A- A3 A+ A A2 A+
M&T Bank A- A3 A A A2 A
Comerica BBB+ A3 A A- A3 A
Fifth Third Bancorp BBB+ Baa1 A A- A3 A
Bank of America Corp. BBB+ Baa1 A A A1 A+
Citigroup Inc. BBB+ Baa1 A A A1 A+
KeyCorp BBB+ Baa1 A- A- A3 A-
SunTrust Banks BBB+ Baa1 A- A- Baa1 A-
Citizens Financial Group BBB+ NR BBB+ A- Baa1 BBB+
Huntington BBB Baa1 A- BBB+ A3 A-
Capital One Financial Corp. BBB NR A- BBB+ Baa1 A-
Regions Financial Corp. BBB Baa3 BBB BBB+ Baa3 BBB
Zions Bancorporation BBB- Ba1 BBB- BBB+ NR BBB-
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MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Key MUFG Group Credit Ratings
- means not rated
1. Negative Outlook as of November 30, 2015
2. Upgraded from A2 as of February 10, 2016
3. Ratings assigned as of February 12, 2016
MUFG Union Bank, N.A.
MUFG Americas
Holdings Corporation
MUFG Securities
Americas Inc.
The Bank of Tokyo-
Mitsubishi UFJ, Ltd
Mitsubishi UFJ
Financial Group, Inc.
Deposits Senior Debt Senior Debt Senior Debt Senior Debt Senior Debt
Moody’s
Long-Term Aa2 A2 A3 — A1 A12
Short-Term P-1 P-1 — — P-1 P-1
Standard &
Poor’s
Long-Term — A+ A A+1 A+1 A1
Short-Term — A-1 A-1 A-1 A-1 —
Fitch
Long-Term A+ A A A A A3
Short-Term F1 F1 F1 F1 F1 F13
27
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
2016 CCAR Severely Adverse Scenario Results
•The Federal Reserve did not object to MUAH’s 2016 capital plan
• At 10.2%, Fed modeled MUAH Tier 1 Capital ratio (Minimum) ranks tied for 4th highest among all CCAR banks
• At 7.1%, Fed modeled MUAH Tier 1 Leverage ratio (Minimum) ranks 5th highest among all CCAR banks
•At 4.2%, Fed modeled MUAH credit loss rate ranks 5th lowest among all CCAR banks
2016 CCAR Severely Adverse Scenario Results
Note: MUAH is a standardized BHC for purposes of calculating capital levels and ratios. MUB is subject to both standardized and advanced approaches rules.
1. Source: Federal Reserve Board. For a complete description of scenarios and macroeconomic factors released by the FRB for the 2016 Dodd-Frank Act stress tests, please go to www.federalreserve.gov
2. Represents minimum projected capital ratios from Q1 2016 through Q1 2018.
3. Minimum post-stress regulatory ratios as defined in the Comprehensive Capital Analysis and Review 2016 Summary Instructions, January 2016.
Severely Adverse scenario included a severe global recession accompanied by a period of heightened corporate financial
stress, large reductions in asset prices and negative yields for short-term U.S. Treasury securities.1
MUAH Actual and Projected Capital Ratios Using Dodd-Frank Capital Actions
Actual Stressed Capital Ratios Regulatory
Minimum3 December 31, 2015 March 31, 2018 Minimum
2
Common Equity Tier 1 Capital Ratio 13.6% 12.3% 12.3% 4.5%
Tier 1 Risk-based Capital Ratio 13.6% 12.3% 12.3% 6.0%
Total Risk-based Capital Ratio 15.6% 14.5% 14.4% 8.0%
Tier 1 Leverage Ratio 11.4% 8.9% 8.7% 4.0%
MUAH Actual and Projected Risk-Weighted Assets (RWA)
($ in Billions) Actual December 31, 2015 Projected March 31, 2018
Risk-Weighted Assets (Standardized) $94.8 $99.2
28
MUFG Americas Holdings Corporation Investor Presentation, 2Q16
Conclusion
• MUAH and MUB carry solid credit ratings and benefit from the ownership of MUFG, one of the
world’s largest financial organizations
• Strong local management team with a majority of independent board members
• Solid balance sheet with high-quality capital base and strong liquidity
• Conservative risk culture resulting in a high quality loan portfolio with historically strong credit
performance and proactive management of oil & gas exposures
• There are many risks facing the banking industry and MUAH; please refer to the Risk Factors on
pages 18-35 of our Form 10-K for the year ended December 31, 2015 and pages 91-94 of our Form
10-Q for the quarter ended June 30, 2016.
Contacts
Mimi Mengis Doug Lambert
Managing Director Director
415-765-3182 415-765-3180
mimi.mengis@unionbank.com doug.lambert@unionbank.com
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