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MUFG Americas Holdings
Corporation
MUFG Americas Holdings Corporation
Investor Presentation for the Year Ended
December 31, 2017
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
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,” “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 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 10-K for the year ended
December 31, 2017.
Forward-Looking Statements and Non-GAAP Financial Measures
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Core Strategic Subsidiary of Mitsubishi UFJ Financial Group (MUFG)
MUAH MUFG
Headquarters New York Tokyo
Main Banking Office San Francisco Tokyo
U.S. Branches3 349 N/A
Employees4 Approx. 13,000 Approx. 140,000
Total Assets $154.6 billion $2,766 billion5
Total Loans Held for Investment $80.0 billion $975 billion5
Total Deposits $84.8 billion $1,546 billion5
Common Equity Tier 1 risk-based
capital ratio (fully-phased in) 16.27%
6 12.50%7
Company Profile as of December 31, 2017 Reference Banks’ Period-End Assets ($bn) 1,2
MUFG Americas Holdings Corporation (MUAH) and its principal subsidiaries MUFG
Union Bank, N.A. (MUB) and MUFG Securities Americas (MUSA) 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.
• One of the largest regional bank holding companies in the United States
• 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 349 U.S. retail branches
• Prominent market share in demographically attractive West Coast markets
• Both MUB and MUAH have outstanding, publicly issued debt securities
MUFG Branch / Financial Center Network
1. Source: SNL Financial as of February 9, 2018
2. ‘Reference Banks’, referred to throughout this presentation unless otherwise noted, consist of these 13 CCAR-filing public regional banks,
plus the four largest U.S. money center banks (BAC, C, JPM and WFC) not shown here
USB PNC COF BBT STI MUAH CFG FITB KEY RF MTB HBAN CMA ZION
$462
$381 $366
$222 $206
$155 $152 $142 $138 $124 $119 $104
$72 $66
3. In addition, MUB had 1 international office and 19 PurePoint Financial Centers
4. Full-time equivalent staff
5. JPY denominated amounts converted to USD based on an exchange rate of 113.00 JPY/USD; refer to
MUFG’s Investor Relations website (http://www.mufg.jp/english/ir/) for additional information
6. Non-GAAP financial measure. Refer to our separate reconciliation of non-GAAP financial measures in
our 10-K for the year ended December 31, 2017
7. 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 Japanese Financial Services Agency
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
The enhanced prudential standards require that all foreign banking organizations with at least $50bn in assets hold
ownership of controlled U.S. subsidiaries through an Intermediate Holding Company (IHC).
MUAH is MUFG's Intermediate Holding Company
12/31/17 assets: $118.5bn 12/31/17 assets: $32.1bn 12/31/17 assets: $4.0bn1
1. Net of intercompany eliminations
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Compared to the previous year, Net Income increased $87 million
• (Reversal of) provision for credit losses was $(103) million compared with $155 million in 2016
• Total revenue was $5.2 billion, down $64 million from the previous year
• Noninterest expense increased $202 million due largely to increases in professional and outside services expense, salaries and
other compensation and software expense
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act enacting sweeping changes to the
U.S. tax laws effective January 1, 2018. These changes can be expected to impact our business and results of operations
in a variety of ways, some of which are expected to be positive and others which may be negative
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 Years Ended
December 31, December 31,
(Dollars in millions) 2017 2016
Results of operations:
Net interest income $ 3,204 $ 3,053
Noninterest income 2,010 2,225
Total revenue 5,214 5,278
Noninterest expense 3,984 3,782
Pre-tax, pre-provision income 1 1,230 1,496
(Reversal of) provision for credit losses (103) 155
Income before income taxes and including noncontrolling
interests 1,333 1,341
Income tax expense 299 419
Net income including noncontrolling interests 1,034 922
Deduct: Net loss from noncontrolling interests 43 68
Net income attributable to MUAH $ 1,077 $ 990
2017 MUAH Results
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
MUAH Balance Sheet and Profitability Highlights as of Period End
1. Annualized
2. Net interest margin is presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent
3. The efficiency ratio is total noninterest expense as a percentage of total revenue (net interest income and noninterest income)
Compared to the previous year:
• Total assets increased $6.4 billion
driven by increases in loans held
for investment of $2.5 billion, total
securities of $3.0 billion and
securities borrowed or purchased
under repo of $1.1 billion
• Total loans held for investment
increased primarily due to growth
in the residential mortgage
portfolio, which was partially offset
by a decline in the commercial
and industrial portfolio
• Total deposits decreased $2.2
billion due to decreases in
demand deposits and money
market deposits, partially offset by
an increase in interest bearing
savings deposits related to the
launch of PurePoint Financial
As of Period End
December 31, September 30, December 31,
(Dollars in millions) 2017 2017 2016
Balance sheet (end of period)
Total assets $ 154,550 $ 154,852 $ 148,144
Total loans held for investment 80,014 78,829 77,551
Total securities 27,448 28,457 24,478
Securities borrowed or purchased under repo 20,894 21,891 19,747
Trading account assets 10,567 10,223 8,942
Total deposits 84,787 85,349 86,947
Securities loaned or sold under repo 26,437 27,307 24,616
Long-term debt 12,162 11,419 11,410
Trading account liabilities 3,600 3,338 2,905
MUAH stockholders' equity 18,255 18,459 17,233
Performance ratios
Net interest margin 1,2 2.33% 2.37% 2.23%
Return on average assets 1 0.71 0.61 0.66
Return on MUAH stockholders' equity 1 6.01 5.02 5.82
Return on tangible common equity 1 7.57 6.35 7.39
Efficiency ratio 3 76.42 73.78 71.65
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Business Model for Four Key Segments1
Five main divisions: Consumer Banking, Wealth Markets, Commercial Banking, Real Estate
Industries and PurePoint Financial
Two customer segments:
Consumer: West Coast individuals, including high net worth
• Products and services include checking and deposit accounts, mortgages, home equity
loans, consumer loans, credit cards, bill and loan payment services, merchant services,
wealth planning, trust & estate services, investment management, brokerage and private
wealth management
• PurePoint serves consumers by offering savings accounts and CD products online with
services provided through a call center and a network of financial centers in New York,
Florida, Illinois, and Texas
Commercial: Institutional clients and businesses with annual revenues up to $1 billion
• Commercial credit products and services include commercial and asset-based loans,
accounts receivable, inventory, and trade financing primarily to West Coast corporate
customers, and construction loans, commercial mortgages, bridge financing and
unsecured funding to professional real estate investors and developers nationwide
• Non-credit products and services include global treasury management, capital market
solutions, foreign exchange and interest rate risk and commodity risk management
products and services
• Delivers the full suite of MUAH products and services to large and mid-corporate
customers
• 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
• Financial Institutions (predominantly Insurance and Asset Managers)
• Provides customers general corporate credit and structured credit services including
project finance, leasing and equipment finance, commercial finance, funds finance,
and securitizations
• Non-credit products and services include global treasury management, capital
market solutions, and various foreign exchange, interest rate risk and commodity risk
management products
Regional Bank U.S. Wholesale & Investment Banking
Transaction Banking
• Automated Clearing House
• Cash Management
• Commercial Card
MUFG Securities Americas (MUSA)
• Capital Markets
• Collateralized Financings
• Domestic and Foreign Debt
and Equity Securities Transactions
Coverag
e
Product
s
• Demand Deposit Account
• Institutional Trust and Global Custody
• Money Market Demand Account
Brandin
g
• Payables / Receivables
• Treasury Management
• Trade Finance
• Private Placements
• Sales & Trading
• Securities Borrow and Loan
• Securitization
1. During 2Q17 the customer base of the Investment Banking & Markets segment, including its products and services, was consolidated into the activities performed within the other business segments
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Strong and High Quality Capital Base
1. Reference Banks consist of 13 CCAR-filing public regional banks depicted on slide 3 plus the four largest U.S. money center banks. Reference Banks’ average based on reporting through February 15, 2018 (Source: SNL Financial)
2. Non-GAAP financial measures. Refer to our separate reconciliation of non-GAAP financial measures in our 10-K for the year ended December 31, 2017
MUAH's capital ratios exceed the average of the Reference Banks1
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.
In December 2017, the Company paid a $500 million cash dividend to MUFG and BTMU based on their
proportional ownership of the Company.
Capital ratios:
Reference
Banks'
Average1
MUAH Capital Ratios
December 31,
2017
December 31,
2017
September
30, 2017
Regulatory:
Common Equity Tier 1 risk-based capital ratio 10.76% 16.31% 16.19%
Tier 1 risk-based capital ratio 11.87 16.31 16.19
Total risk-based capital ratio 14.02 17.76 17.70
Tier 1 leverage ratio 9.65 10.06 10.44
Other:
Tangible common equity ratio2 8.51 9.73 9.86
Common Equity Tier 1 risk-based capital ratio
(U.S. Basel III standardized approach; fully
phased-in)2
N/A 16.27 16.16
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Deposits: $84.8
Medium- and Long-term Debt:
$12.2
Commercial Paper and Other
Short-term Borrowings: $7.1
Securities loaned or
sold under repo: $26.4
Robust Liquidity Profile
Deposit franchise reduces reliance on wholesale funding
Substantial available liquidity includes:
• Excess Reserves1: $1.3 billion
• Unpledged securities: $27.6 billion
• Unused FHLB and Fed capacity: $28.7 billion
1. Interest bearing deposits in banks
2. Source: MUAH FR Y-9LP as of December 31, 2017; defined as the Total Equity Investment in Subsidiaries divided by Total Equity. Management believes that this is a useful measure because it enables investors and others to assess the
extent to which the Company is using debt to fund its equity investment in its subsidiaries
3. Amortized Cost / Carrying Amount reflects amortized cost except for balances transferred from AFS to HTM. Those balances reflect amortized cost plus any unrealized gains or losses at the date of transfer
MUAH Consolidated Funding Sources ($ billions)
Holding company maintains liquidity to meet expected
obligations for at least 20 months without access to
funding
MUAH consolidated is compliant with modified LCR
MUAH consolidated loan-to-total deposit ratio is 93.8%
Double leverage ratio is 103%2
Agency
RMBS
U.S.
Treasury
Agency
CMBS
RMBS
CMBS
CLO
Other
$17.2
$3.9
$1.5 $0.7
$0.8
$1.9
$1.7
MUB's Investment Portfolio, Carrying Value3 ($ billions)
MUB MUAH
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Securities Financing Maturity Profile
Securities Financing Portfolio
Assets Liabilities
25,000
20,000
15,000
10,000
5,000
0
$
(M
illi
on
s)
O/N and Continuous 2-30 days 31-90 days > 90 days
$9,584
$13,319
$6,020
$2,887
$18,439
$8,708 $8,833
$1,408
48.8%
38.6%
5.8%
2.3%
4.6%
35.2%
51.9%
6.2%
2.5%
4.1%
Assets Liabilities
Securities financing activity largely
conducted through MUSA
Securities financing portfolio is primarily
collateralized by high quality, liquid assets
• Approximately 87% is collateralized by
U.S. Treasuries and Agency MBS and
13% is backed by equities, credit and
other
Robust risk management framework
governs secured financing profile including
guidelines and limits for tenor gaps,
counterparty concentration and stressed
liquidity outflows
1. Includes continuous maturities which include open trades and term evergreen transactions that are primarily used to fund inventory
1
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Internal TLAC1 Requirement to be Effective January 1, 2019
TLAC-related implications to MUAH due to MUFG's
status as a single point of entry G-SIB are:
• 18.5% of RWA overall Internal TLAC requirement;
minimum 6% must be issued as eligible long-term
debt
• Internal TLAC must be issued by MUAH to a
foreign affiliate; Internal TLAC instruments may not
be issued to third party investors
• TLAC-eligible long-term debt will contain a
contractual conversion ("bail-in") trigger while
remaining external debt will not
• Clean Holding Company requirements limit
MUAH's external liabilities including debt,
derivatives and guarantees
• Compliance mandatory by January 1, 2019
MUFG is expected to be the external TLAC issuing
entity for the global organization
MUAH has sufficient aggregate capital and debt to achieve quantitative TLAC requirements; some modifications are required
1. "Total Loss-Absorbing Capacity, Long-Term Debt, and Clean Holding Company Requirements for Systemically Important U.S. Bank Holding Companies and Intermediate Holding Companies of Systemically Important
Foreign Banking Organizations," Federal Register Vol. 82, No. 14, January 24, 2017; does not include FHLB balances
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
MUAH Long-Term Debt Outstanding and Maturity Schedule1
As of December 31, 2017
Long-Term Debt Redemption Schedule - Next 10 Years
1. Excludes nonrecourse debt, junior subordinated debt, FHLB Loans and capital leases
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Average Quarterly Deposit Breakdown ($ billions)
Deposit Trends
1. Source: FDIC Summary of Deposits as of September 30, 2017
2. The above balances do not include PurePoint deposits which are primarily placed with customers outside MUB's West Coast markets
Average deposit balances have been steady over the last year
Transaction & Money Market Savings
Time Noninterest Bearing
4Q16 3Q17 4Q17
$38 38 40
6 8 8
7 6 5
34 33 34
Major Deposit Share in Key California Locations1,2
Metropolitan Statistical Area (MSA) / State Rank Share (%)
Santa Maria-Santa Barbara, CA 2 17.9
San Diego-Carlsbad, CA 4 14.1
Los Angeles-Long Beach-Anaheim, CA 4 8.6
Fresno, CA 4 7.9
Oxnard-Thousand Oaks-Ventura, CA 5 6.0
Salinas, CA 5 9.1
Riverside-San Bernardino-Ontario, CA 5 4.2
Sacramento--Roseville--Arden-Arcade, CA 5 4.3
San Francisco-Oakland-Hayward, CA 7 2.8
San Jose-Sunnyvale-Santa Clara, CA 9 2.4
Overall California 4 6.1
85
• PurePoint Financial, a new division of
MUFG Union Bank, N.A., is a hybrid digital
bank aimed at committed savers
• PurePoint offers savings accounts and
certificates of deposit (CDs), combining the
convenience of online banking with in-
person client service at PurePoint Financial
Centers
• This model enables PurePoint to deliver
competitive rates and an exceptional client
experience the way clients want to bank -
online, over the phone or in person
• As of December 31, 2017 the PurePoint
portfolio balance was $3.04 billion
85 87
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Earning Asset Mix as of 12/31/20174Q 2017
MUB's loan portfolio is primarily residential mortgage and commercial; MUSA contributes trading and securities financing
assets
1. Average balance for the year ended December 31, 2017. May not total 100% due to rounding.
2. Period-end total loans held for investment, including all nonperforming loans and purchased credit-impaired loans. May not total 100% due to rounding.
Loan Portfolio Composition 2Earning Asset Mix 1
Securities: 18.9%
Cash and
equivalents:
2.3%
Securities Purchased
under Repo and
Securities Borrowed:
15.0%
Trading Assets &
Other: 7.3%
Commercial &
Industrial: 29.1%
Commercial
Mortgage: 17.9%
Construction: 2.2%
Lease Financing:
1.9%
Residential Mortgage:
44.5%
Home Equity & Other
Consumer: 4.3%
Loans: 56.5%
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Commercial Loan Portfolio
Commercial loan growth stabilized in Q42017 after recent declines in loan balances. Net charge-offs decreased by $4
million quarter-over-quarter.
Commercial and Corporate Loan Portfolio
Period-end Loan Balances and Net Charge-offs ($mm)
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
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)
Net Charge-offs Residential Mortgage
4Q16 1Q17 2Q17 3Q17 4Q17
$— $—
$1 $1
$2
$29,922
$31,162
$32,523
$34,205
$35,643
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Loans Securities
Securities Purchased under Repo and Borrowed Trading Assets & Other
Cash and Equivalents
4Q16 1Q17 2Q17 3Q17 4Q17
$80 $78 $79 $79 $80
$23 $25 $25 $27 $28
$21 $20 $21 $21
$22
$8 $10 $10 $10
$11
Net Interest Margin Impacted by Low Rate Environment
Net interest margin increased ten basis points year-over-year, reflecting the comparatively higher short-term interest rate
environment in 2017 and the impact of noninterest bearing deposits
1. Net interest margin is annualized and presented on a taxable-equivalent basis using the federal statutory tax rate of 35 percent
2. Total loans held for investment
Earning Assets ($bn)Net Interest Income & Margin ($mm)
2
1
Net Interest Margin Net Interest Income
2015 2016 2017
2.08
2.23
2.33%
$2,892
$3,053
$3,204
1
$4
$2$2$3$4
$145$136 $136 $137 $139
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Interest Rate Risk Management of Exposures Other Than Trading
Net Interest Income (NII) Sensitivity ($mm)
+200
bps
-100
bps
Gradual parallel yield curve shift ove
r
12-month horizo
n
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
MUAH Reference Banks' Average
2.0%
1.0%
0.0%
4Q2016 1Q2017 2Q2017 3Q17 4Q17
0.89%
0.73% 0.63% 0.59% 0.58%
1.63% 1.60% 1.51%
1.29%
1.47%
Asset Quality Trends
Nonperforming Assets by Loan Type ($mm)
Net Charge-offs (Recoveries) / Average Loans1,3Nonperforming Assets / Total Loans1
Criticized4 & Nonaccrual Loans / Total Loans
1. Source: SNL Financial and company reports
2. Reference Banks consist of 13 CCAR-filing public regional banks depicted on slide 3 plus the four largest U.S. money center banks. Reference Banks’ average based on reporting through February 15, 2018 (Source: SNL Financial)
3. Annualized ratio
4. 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
MUAH Reference Banks' Average
1.0%
0.5%
0.0%
-0.5%
4Q16 1Q17 2Q17 3Q17 4Q17
0.09%
0.29%
0.19%
0.03% 0.01%
0.52%
0.53% 0.47% 0.42% 0.48%
Criticized Percent of Total Loans Held For Investment
Nonaccrual Loans % Of Total Loans Held For Investment
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
4Q16 1Q17 2Q17 3Q17 4Q17
3.10% 3.09%
2.74%
2.35%
1.95%
0.89% 0.73% 0.64% 0.59% 0.58%
Commercial &
Industrial
Commercial
Mortgage
Residential
Mortgage
Home Equity and
Other Consumer
Other (OREO)
NPA / Total Assets
$1,000
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
4Q16 1Q17 2Q17 3Q17 4Q17
487
400
321 308 319
31
33
24 22 20
172
110
128 128 104
29
26
25 23 22
2 2
0.30
%0.33
%0.38
%0.48
%
0.30
%
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Commercial Real Estate Overview
4Q 2017 Geographic Distribution24Q 2017 Property Type Breakdown
Multi-Family: 36%
Office: 16%
Retail: 16%
Industrial:
11%
Other: 13%
Unsecured:
8%
Secured 92%
Los Angeles: 21%
Orange: 8%
San Diego: 10%
Santa Clara: 5%
Alameda: 3%
San Francisco: 2%
Other: 16%
New York: 8%
Washington: 8%
Illinois: 3%
Oregon: 2%
Other: 14%
Commercial Real Estate Statistics
($ MM)
December 31,
2016
September 30,
2017'
December 31,
2017
Commitments $ 22,971 $ 21,101 $ 21,141
Commercial and Industrial 4,220 3,699 3,540
Commercial Mortgage 14,785 14,326 14,529
Construction 3,966 3,077 3,071
Outstandings 18,734 17,683 17,714
Commercial and Industrial 1,904 1,698 1,645
Commercial Mortgage 14,547 14,129 14,294
Construction 2,283 1,857 1,775
Nonperforming Loans 31 23 21
California
65%
Largely secured, California-focused commercial real estate-purposed loans1 with strong credit performance
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. Excludes loans not secured by real estate; subsets of California reported by Metropolitan Statistical Area (MSA)
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Consumer Loans Performed Well Through the Crisis
1. At origination
2. Excluding loans serviced by third-party service providers and loans covered by FDIC loss share agreements, includes PCI loans
3. Data Source: Consumer Lending Monthly Summary and Key Statistics; Source: Residential – Mortgage Bankers Association, Home Equity-American Bankers Association
4. 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) 3
Home Equity and Other Consumer
Total Delinquency (30 Days + Past Due) 3
Residential Mortgage Portfolio as of December 31, 2017:
• 36% interest-only (non-amortizing)
• 65% weighted average LTV1 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
• 81% of the consumer portfolio has a refreshed FICO score of 720 and above2
• 97% has an LTV less than or equal to 80%
MUAH MBA-CA Conventional National Conventional
MBA-CA Conventional ARM
40.0%
30.0%
20.0%
10.0%
0.0%
2009 2010 2011 2012 2013 2014 2015 2016 2017
MUAH National (SA) CA HE 30+ (NSA)
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2009 2010 2011 2012 2013 2014 2015 2016 2017
4
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
MUAH's Capital, Asset Quality and Ratings Compare Favorably
1. Reference Banks consist of the 13 CCAR-filing public regional banks depicted on slide 3 plus the four largest U.S. money center banks. Reference Banks’ average based on reporting through February 15, 2018 (Source: SNL Financial)
2. Annualized ratio
3. Ratings as of February 27, 2018
Net Charge-offs / Average Loans1,2Nonperforming Assets / Total Loans1
Common Equity Tier 1 (Basel 3) Ratio1 Reference Banks’ Credit Ratings1,3
MUAH Reference Banks' Average
1.8%
1.5%
1.2%
0.9%
0.6%
0.3%
0.0%
4Q17
0.58%
1.47%
MUAH Reference Banks' Average
20%
18%
16%
14%
12%
10%
8%
6%
4Q17
16.31
11.08%
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 A+ A+ Aa2 AA-
MUAH A- A2 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 A3 A
Comerica BBB+ A3 A A- A3 A
Fifth Third Bancorp BBB+ Baa1 A- A- A3 A-
Bank of America Corp. A- A3 A A+ Aa3 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 Baa1 A- BBB+ Baa1 A-
Regions Financial Corp. BBB+ Baa2 BBB+ A- Baa2 BBB+
Zions Bancorporation BBB- NR NR BBB Baa3 NR
MUAH Reference Banks' Average
0.6%
0.4%
0.2%
0.0%
4Q17
0.01%
0.48%
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Key MUFG Group Credit Ratings
- means not rated
MUFG Union Bank, N.A. MUFG SecuritiesAmericas Inc.
MUFG Americas
Holdings Corporation
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 — A2 A1 A1
Short-Term P-1 P-1 — — P-1 P-1
Standard &
Poor’s
Long-Term — A A A- A A-
Short-Term — A-1 A-1 A-2 A-1 —
Fitch
Long-Term A+ A A A A A
Short-Term F1 F1 F1 F1 F1 F1
On October 11, 2017, Moody's upgraded MUAH's long-term senior debt rating to A2 from A3.
• The upgrade was a result of changes in Moody's assumption of parent support. Moody's views MUAH as a
strategic and material subsidiary of MUFG and now assumes a very high probability of support to MUAH from
its Parent.
On November 28, 2017, S&P downgraded MUAH, MUB and MUSA’s long-term ratings by one-notch. MUAH's
short-term rating was also lowered to A-2 from A-1.
• The downgrade was the result of S&P lowering MUFG and BTMU’s ratings by one notch. S&P's outlook was
revised to stable from negative.
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
2017 CCAR and 2017 Mid-Cycle DFAST Results
The Federal Reserve did not object to MUAH's 2017 capital plan/CCAR submission
In October 2017, MUAH submitted its mid-cycle DFAST results to the Federal Reserve
2017 Mid-Cycle Severely Adverse Scenario Results
Mid-Cycle DFAST stress test results demonstrate MUAH's capital cushion in excess of regulatory
minimums
• Severely Adverse scenario included a failure of effective U.S. monetary policy, a recession in the euro zone leading
to drops in U.S. exports to Europe and the price of oil, and a multi-family commercial real estate (CRE) price shock
Note: MUAH is a standardized BHC for purposes of calculating capital levels and ratios.
1. Represents minimum projected capital ratios from 3Q 2017 through 3Q 2019
2. Regulatory post-stress minimum ratios as defined in the Comprehensive Capital Analysis and Review 2017 Summary Instructions, February 2017.
MUFG Americas Holdings Corporation Investor Presentation, 4Q17
Conclusion
MUAH, MUB and MUSA carry solid credit ratings and benefit from ownership by 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
There are many risks facing the banking industry and MUAH; please refer to the Risk Factors on pages
19-36 of our Form 10-K for the year ended December 31, 2017
Contacts
Alan Gulick Marcy Morita
Managing Director Director
425-423-7317 415-273-2452
alan.gulick@unionbank.com marcy.morita@unionbank.com