Mitsubishi UFJ Financial Group Inc., a Japanese bank and financial services company with plans to expand its public finance unit, has integrated its operations in the Americas into a single commercial bank and holding company and appointed new management.
Bank of Tokyo- Mitsubishi UFJ's United States branch has joined operations with Union Bank NA, a full-service bank with offices across the country, the company said in a press release Tuesday. The newly unified bank will operate under the name MUFG Union Bank NA.
"The integration will have a positive effect on the MUFG public finance division," Kevin Dunphy, the bank's head of public finance, U.S. corporate banking said. "An important benefit will be access to attractively priced retail deposits that will allow us to be more competitive with funded assets. Another benefit of the integration is the close collaboration from working with our legacy Union Bank service partners, such as cash management and deposit services."
The bank aims to become one of the top 10 in the country and has identified public finance as a growth area to achieve that goal, Dunphy said. With less than three years in public finance, the commercial bank ranked No. 77 among senior managers in 2013.
"We're going to be one team working together and going to market with one voice now," Dunphy said. "The benefits of combining under one holding company include meeting regulatory requirements and attractive cost of funds."
Both MUFG's and the Americas of BTMU's business activities will be overseen by a newly renamed holding company, MUFG Americas Holding Corp.
"This integration solidifies the bank's foundation for sound and profitable growth and as a major presence in key markets throughout this hemisphere," said Katsumi Hatao, the newly promoted chief executive officer of the Americas at BTMU and president and CEO of MUFG Union Bank NA and MUFG Americas Holdings Corp., based in the New York office.
Masahi Oka was promoted to executive chairman of MUFG Union Bank and MUFG Americas Holding Corporation. He is based in the bank's Los Angeles office.
BTMU plans to maintain its West Coast presence and continue its operations throughout the Americas.
The integration is a part of MUFG'S efforts to enhance its clientele services and provide a broader menu of financial products, including corporate, commercial and retail banking, wealth management, investment banking and capital markets, personal and corporate trust and transaction banking.
"We've also created a streamlined organization with a stronger governance and risk-management structure," Hatao said. "Across the board, it exemplifies our commitment to responsible banking in every community and sector we serve."
According to the press release, MUFG Union Bank will serve corporate and investment banking customers through MUFG, while Union Bank will continue to handle the retail, wealth and commercial banking sectors.
Before his promotion, Hatao served as the deputy chief executive officer for the Americas of BTMU for two years. He began working at the Bank of Tokyo Ltd in 1981.
Previously Oka was the CEO and president of Union Bank and UnionBanCal Corp. for two years. He started his career with Mitsubishi Bank in 1979.
