Conservative Outlook and Strategic Risks Lead to Hold Rating for Mitsubishi UFJ Financial GroupWe maintain our “Neutral” investment rating and will review our earnings forecasts as needed based on further discussions. Key management messages were as follows: (1) Long-term ROE target of 12% now more concrete, but timeline still unspecified; Although ROE of 12.5% was achieved in 1H, this includes equity gains, which management views as a tailwind (our FY3/26 ROE forecast: a little more than 10.5%, of which a little more than 16% is equity gains; ROE excluding equity gains: a little more than 8.8%). The bank aims for 12% ROE assuming zero equity gains and a BoJ policy rate of 1.0% (currently 0.5%).