Non-Consolidated Summary Report for the Six Months ended September 30, 2001
<According to Japanese GAAP>
November 26, 2001 Listed Company Name: Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation (“The Bank”)) (Previous name: The Mitsubishi Trust and Banking Corporation)
Listings: First Section of the Tokyo Stock Exchange and the Osaka Securities Exchange Code No.: 8306
Location of Head Office: Tokyo, Japan C o n t a c t :
Keiichi Riko, Chief Manager of Financial Policy Division, Mitsubishi Tokyo Financial Group, Inc.
TEL: +81-3-3240-8139
Saburo Sato, Senior Chief Manager of Corporate Planning Division, The Mitsubishi Trust and Banking Corporation
TEL: +81-3-3212-1211
Date of the Board of Directors Meeting on the Settlement of Accounts: November 26, 2001 Interim Dividend System: Existent
Dividend Payment Date: November 27, 2001
Performance for the Six Months ended September 30, 2001
(April 1, 2001 to September 30, 2001)
(1) Operating Results (All amounts are rounded down to the nearest million.)
Operating Income (Yr to Yr % change)
Operating Profit (Loss) (Yr to Yr % change) September 30, 2001 September 30, 2000 Millions of Yen (%) 334,367 (-7.5) 361,649 (-2.7) Millions of Yen (%) (17,526) (—) 27,734 (-11.0) March 31, 2001 674,752 11,627
Net Income (Loss) (Yr to Yr % change)
Net Income (Loss) per Common Share
September 30, 2001 September 30, 2000 Millions of Yen (%) (7,724) (—) 21,736 (16.9) ¥ (6.55) 16.07 March 31, 2001 18,420 12.90 Notes:
1. Number of shares (average of the beginning and ending balances)
September 30, 2001: 1,302,303,109 common shares, 100,000,000 preferred shares September 30, 2000: 1,302,303,109 common shares, 100,000,000 preferred shares March 31, 2001: 1,302,303,109 common shares, 100,000,000 preferred shares 2. There is no change in accounting policy.
(1) Dividends
Interim Dividend per Share Annual Dividend per Share September 30, 2001 Common Shares Preferred Shares September 30, 2000 Common Shares Preferred Shares ¥ 10.24 8.10 3.50 8.10 ¥ — — — — March 31, 2001 Common Shares Preferred Shares ¥ — — ¥ 7.00 16.20 (3) Financial Position
Total Assets Shareholders’ Equity
Equity Ratio Shareholders’ Equity per Common Share Risk Adjusted Capital Ratio (BIS) March 31, 2001 March 31, 2000 Millions of Yen 18,061,916 16,682,367 Millions of Yen 763,160 903,193 % 4.2 5.4 ¥ 432.43 539.96 % (Sep 30,2001: Preliminary Value) 11.07 12.63 March 31, 2001 Millions of Yen 18,161,871 Millions of Yen 901,794 % 5.0 ¥ 538.89 % 11.79 Note: Number of shares outstanding at the end of term :
September 30, 2001: 1,302,303,109 common shares, 100,000,000 preferred shares September 30, 2000: 1,302,303,109 common shares, 100,000,000 preferred shares March 31, 2001: 1,302,303,109 common shares, 100,000,000 preferred shares
Performance for the Six Months ended September 30, 2001
(Benchmark Formulas)
* Interim Net Income (loss) per Common Share = (Interim Net Income (loss) - Total Dividends on Preferred Shares) / Average Number of Common Shares
Comparison of Non-Consolidated Balance Sheet
The Mitsubishi Trust and Banking Corporation September 30, 2001 and 2000, and March 31, 2001
Millions of Yen
Sept. 30 Sept. 30 Increase March 31 Increase
2001 2000 (Decrease) 2001 (Decrease)
(A) (B) (A-B) (C) (A-C)
Assets:
Cash and Due from Banks ¥ 775,420 ¥ 842,114 ¥ (66,694) ¥ 751,438 ¥ 23,981
Call Loans 6,817 73,688 (66,870) 85,524 (78,706)
Bills Purchased 50,000 130,000 (80,000) 127,900 (77,900) Monetary Claims Purchased 2,978 3,494 (516) 3,508 (530) Trading Assets 404,996 300,417 104,578 417,037 (12,041) Money Held in Trust 24,606 80,787 (56,181) 78,559 (53,953) Investment Securities 5,933,753 5,161,952 771,800 6,033,577 (99,823) Loans and Bills Discounted 8,902,366 8,630,494 271,871 8,962,483 (60,116)
Foreign Exchange 13,353 16,985 (3,631) 13,962 (608)
Other Assets 1,294,100 976,174 317,926 1,074,251 219,848 Premises and Equipment 169,682 153,084 16,598 167,960 1,722 Deferred Tax Assets 233,475 152,016 81,458 148,365 85,109 Customers’ Liabilities for Acceptances
and Guarantees 587,686 442,193 145,492 634,837 (47,150) Reserve for Possible Loan Losses (337,321) (280,745) (56,575) (337,527) 205 Reserve for Possible Losses on Investment Securities — (291) 291 (8) 8 Total Assets ¥18,061,916 ¥16,682,367 ¥1,379,549 ¥18,161,871 ¥ (99,954)
Liabilities:
Deposits ¥10,302,021 ¥ 9,406,028 ¥895,992 ¥10,367,360 ¥ (65,338) Negotiable Certificates of Deposit 1,196,441 651,798 544,643 910,109 286,331
Call Money 76,029 804 75,224 58,395 17,633
Payabes under Repurchase Agreements 39,999 — 39,999 — 39,999
Bills Sold 197,600 45,000 152,600 96,600 101,000 Trading Liabilities 157,436 78,893 78,543 120,267 37,169 Borrowed Money 434,985 441,423 (6,438) 435,276 (291) Foreign Exchange 26,511 45,590 (19,078) 26,784 (272) Bonds 159,400 180,000 (20,600) 102,200 57,200 Convertible Bonds — 36 (36) 27 (27)
Due to Trust Account 2,759,313 3,411,262 (651,948) 3,249,980 (490,667) Other Liabilities 1,347,778 1,052,285 295,493 1,248,053 99,724
Reserve for Employees Bonuses 3,474 — 3,474 — 3,474
Reserve for Retirement Benefits 6,526 18,045 (11,519) 6,505 20 Reserve for Contingencies on Loans Sold 3,552 5,811 (2,258) 3,679 (126) Acceptances and Guarantees 587,686 442,193 145,492 634,837 (47,150) Total Liabilities 17,298,756 15,779,173 1,519,582 17,260,077 38,679 Shareholders’ Equity
:
Capital Stock 292,793 292,793 — 292,793 — Capital Surplus 290,041 287,893 2,147 288,967 1,074 Retained Earnings 192,088 216,013 (23,925) 206,255 (14,167) Voluntary Reserves 169,208 179,225 (10,016) 179,225 (10,016) Unappropriated Retained Earnings at End of Year 22,879 36,787 (13,908) 27,029 (4,150) Net Income (Loss) (7,724) 21,736 (29,461) 18,420 (26,145) Unrealized Gains (Losses) on Securities Available for Sale (11,763) 106,492 (118,255) 113,777 (125,541) Total Shareholders’ Equity 763,160 903,193 (140,033) 901,794 (138,634) Total Liabilities and ¥18,061,916 ¥16,682,367 ¥1,379,549 ¥18,161,871 ¥ (99,954) and Shareholders’ EquityComparison of Non-Consolidated Statement of Income
The Mitsubishi Trust and Banking Corporation
Six Months ended September 30, 2001 and 2000, and year ended March 31, 2001
Millions of Yen
Sept. 30 Sept. 30 Increase March 31
2001 2000 (Decrease) 2001
(A) (B) (A-B) (C)
Operating Income: ¥334,367 ¥361,649 ¥(27,281) ¥674,752
Trust Fees 41,110 31,131 9,979 78,379
Interest Income: 202,640 243,952 (41,312) 448,442
(Interest on Loans and Discounts) 80,784 96,907 (16,122) 205,729 (Interest and Dividends on Securities) 74,423 67,675 6,747 142,418
Fees and Commissions: 17,777 16,652 1,125 36,827
Trading Profits : 1,510 1,110 399 4,503
Other Business Income: 23,735 18,838 4,897 34,144
Other Operating Profits: 47,593 49,964 (2,371) 72,455
Operating Expenses: 351,893 333,914 17,979 663,125
Interest Expenses: 126,427 163,576 (37,148) 298,748
(Interest on Deposits) 65,445 61,197 4,248 146,826
Fees and Commissions: 2,910 2,287 623 4,816
Trading Losses: 167 — 167 551
Other Business Expenses: 17,559 16,244 1,314 28,391
General and Administrative Expenses 78,119 73,161 4,958 147,034
Other Operating Expenses: 126,709 78,645 48,063 183,582
Operating Profit (Loss) (17,526) 27,734 (45,260) 11,627
Special Gains 6,358 5,312 1,046 19,071
Special Losses 2,216 2,255 (38) 4,380
Income (Loss) before Income Taxes (13,384) 30,791 (44,175) 26,318
Income Taxes - Current 421 603 (182) 1,367
Income Taxes Refund — (11,031) 11,031 (12,649)
Income Taxes - Deferred (6,080) 19,482 (25,563) 19,180
Net Income (Loss) (7,724) 21,736 (29,461) 18,420
Unappropriated Retained Earnings Brought Forward 30,604 15,050 15,553 15,050
Interim Dividends — — — 5,368
Transfer to Legal Reserve — — — 1,073
Unappropriated Retained Earnings ¥ 22,879 ¥ 36,787 ¥ (13,908) ¥ 27,029 at End of Year
Non-Consolidated Interim Balance Sheet
The Mitsubishi Trust and Banking Corporation September 30, 2001
Millions of Yen
Assets:
Cash and Due from Banks ¥ 775,420
Call Loans 6,817
Bills Purchased 50,000
Monetary Claims Purchased 2,978
Trading Assets 404,996
Money Held in Trust 24,606
Investment Securities 5,933,753 Loans and Bills Discounted 8,902,366
Foreign Exchange 13,353
Other Assets 1,294,100
Premises and Equipment 169,682
Deferred Tax Assets 233,475
Customers’ Liabilities for Acceptances
and Guarantees 587,686
Reserve for Possible Loan Losses (337,321)
Total Assets ¥18,061,916
Millions of Yen
Liabilities:
Deposits ¥10,302,021
Negotiable Certificates of Deposit 1,196,441
Call Money 76,029
Repurchase Agreement Account Sold 39,999
Bills Sold 197,600
Trading Liabilities 157,436
Borrowed Money 434,985
Foreign Exchange 26,511
Bonds 159,400
Due to Trust Account 2,759,313 Other Liabilities 1,347,778 Reserve for Employee Bonuses 3,474 Reserve for Retirement Benefits 6,526 Reserve for Contingencies on Loans Sold 3,552 Acceptances and Guarantees 587,686 Total Liabilities 17,298,756 Shareholders’ Equity
:
Capital Stock 292,793 Capital Surplus 290,041 Retained Earnings 192,088 Voluntary Reserves 169,208 Unappropriated Retained Earnings at End of Year 22,879Net Loss 7,724
Unrealized Losses on Securities Available for Sale 11,763 Total Shareholders’ Equity 763,160
Total Liabilities and Shareholders’ Equity ¥18,061,916
Notes to Non-Consolidated Interim Balance Sheet (As of September 30, 2001)
1. The accompanying Non-Consolidated Interim Balance Sheet is compiled as required by the Banking Law and in conformity with accounting principles and practices generally accepted in Japan, which are different in certain respects as compared to the application and disclosure requirements of International Accounting Standards. The Non-Consolidated Interim Balance Sheet is not intended to present the financial position in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan. For the convenience of readers, the presentation is modified in certain respects from the original Japanese report. All amounts are rounded down to the nearest million.
2. Transactions (for Trading Purposes seeking to derive gains arising from short-term changes in interest rates, currency exchange rates or market prices of securities as well as other market-related indices, or from arbitrage among markets) are reported on the Non-Consolidated Interim Balance Sheet as Trading Assets and Trading Liabilities on a trade-date basis.
Securities and monetary claims held for trading purposes are stated at market value at the end of the interim period. Trading-related derivative financial products, such as swaps, futures and options, are stated at amounts that would be received or paid for settlement if such transactions were terminated at the end of the interim period.
3. Investment securities are accounted for by the following methods:
Marketable Debt Securities Being Held to Maturity are stated at amortized cost using the moving-average cost method (straight-line method). Stocks in subsidiaries and affiliated companies are stated at cost using the moving-average cost method. Other investment securities (securities available for sale), for which market prices are available, are stated at fair value based on the market price, etc., at the end of the interim period, with prices calculated primarily by the moving-average cost method, while those for which fair value is not available are stated at cost or amortized cost using the moving-average cost method. Unrealized gain or loss on securities available for sale (net of tax effects) is reported in Shareholders’ Equity.
4. Securities held by the Bank as trust assets in individually-managed money held in trust accounts for the primary purpose of investing in securities are stated at fair value.
5. Derivative transactions (not including Transactions for Trading Purposes) are stated at fair value. 6. Depreciation of premises and equipment is calculated by the declining-balance method, and
estimated annual depreciation is divided proportionally over the useful life. Depreciation is based on estimated useful lives as follows:
Buildings: 2-60 years Equipment: 2-20 years
Effective this interim period, the Bank has changed the estimated useful life of computers from six years to four years for personal computers, excluding servers, and to five years for other computers. Due to this change, Operating Losses and Interim Losses before Income Taxes each increased ¥106 million.
7. Costs of computer software for internal use are amortized by the straight-line method, over the estimated useful life (five years) of the assets.
8. Costs related to the issuance of corporate debentures are expensed upon payment.
9. Foreign-currency-denominated assets and liabilities and overseas branch accounts of the Bank (parent), with the exception of stock in subsidiaries and affiliates for which amounts are translated into yen equivalents at exchange rates effective at the acquisition date, are translated into yen equivalents, primarily at the exchange rates prevailing at the end of the interim period.
Losses and Interim Loss before Income Taxes.
For funding-related swaps, the Bank reports, on the interim balance sheet, the net yen equivalents of the notional principal amounts translated at the exchange rate prevailing at the end of the interim period, in accordance with Report No. 20 of JICPA Industry Audit Committee. The difference between spot and forward rates, which reflects the interest rate gap between different currencies, is reported on the interim statement of income on an accrual basis over the period from the spot settlement date to the forward settlement date.
Funding-related swaps are foreign exchange swaps that are executed for the purpose of raising and investing funds in different currencies, for which the Bank records the notional principal amounts of the funds as spot exchange purchased or spot exchange sold, with the notional principal amounts plus the amounts of interest income or interest expense due at the maturity dates being recorded as forward foreign exchange purchased or forward foreign exchange sold.
For cross currency swaps, which meet the following criteria indicated in Report No.20 of the JICPA Industry Audit Committee, the Bank is reporting, on the interim balance sheet, the net yen
equivalents, translated using exchange rates prevailing at the end of the interim period, of the notional principal amounts, with the related interest income and interest expense being accrued and reported on the interim statement of income. Cross currency swaps mentioned above are entered into by the Bank for the purpose of raising and investing funds in different currencies, for which the notional principal amounts of the spot exchange and the forward exchange are identical, i.e. the notional principal amounts paid or received at the value date correspond to the notional amounts to be received or paid at the maturity of the swap agreements and the swap rates used for calculating principal and interest amounts of the swaps are considered reasonable (including cross currency swaps for which the principal amounts in one currency are updated at the reset dates to reflect the spot exchange rate at the reset dates and the notional principal amounts of the spot exchange and the forward exchange are identical in each reset period).
10. Reserve for Possible Loan Losses is provided as described below, in accordance with the internal rules for write-offs of, and provision for, possible loan losses:
For claims to debtors who are legally bankrupt, due to bankruptcy, special liquidation , etc. (bankrupt debtors), or who are deemed substantially bankrupt (substantially bankrupt debtors), a reserve is provided based on the amount of claims, after the charge-off stated below, net of amounts expected to be collected through the disposal of collateral or execution of guarantees For claims to debtors who are likely to become bankrupt, a reserve is provided based on the amount considered to be necessary based on overall solvency assessment, out of the amount of claims net of amounts expected to be collected through the disposal of collateral or execution of guarantees. For claims other than those mentioned above, a reserve is provided based on historical loan-loss experience. With respect to claims other than those to bankrupt debtors and substantially bankrupt debtors and for which cash flow through the recovery of principal or the receipt of interest can be reasonably estimated, a reserve is provided for the difference between the carrying value of the claim and the present value of expected future cash flows discounted at the initial contract interest rate. Reserves for loans to specific foreign borrowers (including reserves for losses on overseas investments that are allowed under Article 55–2 of the Special Taxation Measures Law) are provided based on the estimated amount of losses that could result from the political and economic situation in such countries.
All claims are assessed by branches and credit divisions, based on the Bank’s internal rules for self-assessment of asset quality. Asset Audit Division, which is independent from branches and credit divisions, subsequently conducts audits of the assessments, and reserves are provided based on the audit results.
For secured or guaranteed claims against bankrupt debtors or substantially bankrupt debtors, the amounts of claims, net of estimated fair value of the collateral and estimated amounts that are deemed to be collectible through execution of the guarantees, are directly deducted, as estimated uncollectible amounts, from the outstanding amounts of the claims. The amounts are estimated at ¥235,161 million.
However, effective this interim period, the Bank is reporting the amount as Reserve for Employee Bonuses, in accordance with “Concerning Financial Statement Titles to Be Used for Accrued Bonuses for Employees” (JICPA Research Center Review Information No. 15). As a result of this change, Other Liabilities decreased by ¥3,474 million, and Reserve for Employee Bonuses increased by the same amount.
12. Reserve for Retirement Benefits is provided for the amount deemed necessary, based on estimated pension benefits obligations and pension plan assets at the end of the interim period, to cover required retirement benefits for eligible employees. Unrealized Actuarial Losses are deferred and amortized ratably from the term following that in which the respective costs were generated, using the straight-line method, from the following term over a fixed period (12 years) in the average remaining years of service for employees when the losses are recognized.
The unrecognized net retirement benefits obligation at transition (¥15,844 million) is amortized and charged to income ratably over the five-year period, with the proportional amount multiplied by 6/12 and the resulting figure recorded on the books for the interim period.
13. Reserve for Contingencies on Loans Sold is provided based on the amount of estimated possible losses in the future with respect to loans collateralized by real estate sold to the Cooperative Credit Purchasing Company, Ltd., considering the fair value of the collateral of the loans. This reserve is provided in compliance with Article 287-2 of the Commercial Code.
14. Finance leases, other than those under which ownership of leased assets is deemed to be transferred to a lessee, are accounted for as operating leases.
15. The Bank applies macro-hedging for accounting for hedge transactions by which it manages, on a macro basis, interest rate risk arising from numerous financial assets and liabilities, such as loans and deposits. Macro-hedging is a risk management tool allowed under the risk-management approach stipulated by the “Temporary Treatment of Accounting and Auditing Concerning Application of Accounting Standards for Financial Instruments in the Banking Industry” (JICPA Industry Audit Committee, Report No. 15). The Bank applies deferred hedge accounting. The Bank assesses hedge effectiveness by testing whether the risk amount of derivatives (the hedging
instrument) stays within the permissible risk amount predetermined pursuant to the Bank’s risk management policy, and whether the interest rate risk of the hedged items is reduced.
In addition, to hedge the risk of foreign exchange rate fluctuations on foreign-currency-denominated equity in subsidiaries and affiliates as well as other investment securities (or available-for-sale securities, excluding bonds), the Bank designates, at the inception of the hedge, the names of foreign-currency-denominated investment securities that will be hedged, based on “Temporary Treatment of Accounting and Auditing Concerning Accounting for Foreign Currency Transactions in Banking Industry” (JICPA Industry Audit Committee, Report No. 20), and applies deferred hedge and fair-value hedge accounting to such foreign-currency-denominated investment securities, to the extent that the Bank has spot and forward foreign exchange liabilities exceeding the acquisition cost of the relating securities.
The Bank applies a special rule for interest rate swaps with respect to certain assets and liabilities. 16. The Consumption Tax and the Municipal Consumption Tax are excluded from amounts of
transactions. However, nondeductible consumption taxes on premises and equipment are expensed in the current interim period.
17. Accumulated depreciation on premises and equipment: ¥93,690 million.
18. Amounts deducted from the cost of premises and equipment (based on the Corporation Income Tax Law): ¥8,320 million.
19. Of total loans, loans to bankrupt debtors and past-due loans amounted to ¥33,251 million and ¥506,974 million, respectively.
restructuring of, the debtors.
20. Loans past due more than three months totaled ¥382 million. Loans past due more than three months are loans on which interest or principal payments are past due for three months or more but are not included in loans to bankrupt debtors or non-accrual loans.
21. Restructured loans totaled ¥314,924 million. Restructured Loans are loans, other than loans to bankrupt debtors, non-accrual loans and loans past due for more than three months, for which the Bank has granted certain concessions to the debtors, such as a reduction of interest rates, a rescheduling of interest/principal payments, or a waiver of debts, to provide support to, and facilitate the restructuring of, the debtors.
22. The aggregate amount of loans to bankrupt debtors, non-accrual loans, loans past due for more than three months and restructured loans amounted to ¥855,532 million. Loans described in Notes 19 through 22 above represent amounts before deduction of reserve for possible loan losses.
23. For loan participation transactions, transferred loans were accounted for as sales to the participants in accordance with the Accounting System Committee Report No. 3, issued June 1, 1995 by the Japanese Institute of Certified Public Accountants. Total loan principal amount of ¥284,576 million would have been recorded at the end of the interim period if the transactions had not been
recognized as sales.
24. The face amounts of commercial bills acquired through discounting of bills totaled ¥34,997 million.
25. Assets pledged as collateral were as follows: Pledged Assets:
Investment Securities ¥954,174 million
Loans and Bills Discounted ¥157,068 million
Trading Assets ¥39,997 million
Liabilities related to the above pledged assets:
Bills Sold ¥197,600 million
Payables under Repurchase Agreements ¥39,999 million Payables under Securities Lending Transactions ¥237,429 million
Other than those stated above, investment securities totaling ¥418,007 million and due from banks totaling ¥20,364 million were pledged as collateral for settlement of exchange or as a substitute for the margin deposits for futures transactions, etc.
Lease Deposits of ¥41,352 million are included in Premises and Equipment. Initial margin for future contracts of ¥6,876 million are included in Other Assets.
26. Borrowed money includes subordinated borrowings of ¥391,700 million. 27. All bonds were subordinated bonds.
28. Trusts with contracts for compensating the principal comprised ¥984,669 million in money trusts (jointly operated designated money in trust) and ¥2,926,594 million in loan trusts.
29. When the fair values of investment securities, other than securities held for trading purposes, that have a market value or value determined reasonably, fall significantly below their respective historical costs the Bank generally considers that the fair value will be unlikely to recover up to the historical cost and applies the fair value to calculate interim balance sheet amounts, charging the unrealized losses to income for this interim period. The criteria used to determine “significant decline of fair value” are as follows, categorized according to classifications of issuing companies under the Bank’s self-assessment standards for assets.
Bankrupt debtors, When fair values decline below historical cost substantially bankrupt debtors,
and possibly insolvent debtors
Debtors under close observation When fair values decline more than 30% below historical cost
Pass debtors When fair values decline more than 50% below
Note that bankrupt debtors are companies for which business failure has legally and formally occurred through such events as bankruptcy, special liquidation, and disposition by suspension of business through clearing houses, and substantially bankrupt debtors are companies that have essentially succumbed to business failure. Possibly insolvent debtors are companies for which the potential for business failure is deemed high, and debtors under close observation are companies that will require careful monitoring in the future. Pass debtors are companies other than those falling under the aforementioned debtor classifications of bankrupt, substantially bankrupt, possibly insolvent, and under close observation.
In regard to stocks without market prices, appropriate reductions will be made when fair value declines significantly because of worsening financial performances by the respective issuing companies, and the unrealized loss will be charged to income in the interim period. The Bank considers that “a significant decline of fair value” has occurred if the fair value of investment securities is more than 50% lower than historical cost for securities for which individual issuing companies are classified as pass debtors or debtors under close observation pursuant to the Bank’s self-assessment standard for assets and if the fair value declines below historical cost for securities for which individual issuing companies are classified as possibly insolvent, substantially bankrupt and bankrupt.
30. Information on the market value of, and unrealized gains and losses on, investment securities is presented below. The information includes trading account securities; negotiable certificates of deposit and commercial paper in “Trading Assets”; negotiable certificates of deposit in “Cash and Due from Banks”; and commodities investment beneficiary rights in “Monetary Claims
Purchased,” in addition to Investment Securities. This grouping applies through Note 33.
Securities Held for Trading Purposes:
Carrying value at the end of the current interim period ¥243,168 million Unrealized loss charged to income in the current interim period ¥22 million
Marketable Debt Securities Being Held to Maturity:
(Millions of Yen) Book Market Unrealized Unrealized Unrealized Value Value Gain (Net) Gain (Gross) Loss (Gross)
Municipal Bonds ¥122,917 ¥128,503 ¥5,586 ¥5,633 ¥46
Corporate Bonds 99,693 104,652 4,958 4,958 —
Other 59,324 63,532 4,207 4,207 —
Total ¥281,936 ¥296,688 ¥14,752 ¥14,799 ¥46
Marketable Securities Available for Sale:
(Millions of Yen) Cost Book Unrealized Unrealized Unrealized
Value Gain (Net) Gain (Gross) Loss (Gross) Equity Securities ¥1,529,402 ¥1,427,182 ¥(102,219) ¥99,008 ¥201,228 Debt Securities 2,082,337 2,126,747 44,410 45,289 878 Government Bonds 1,576,669 1,608,627 31,957 32,666 708 Municipal Bonds 77,040 81,441 4,400 4,402 1 Corporate Bonds 428,626 436,678 8,051 8,220 168 Other 1,804,077 1,841,681 37,604 84,423 46,818 Total ¥5,415,816 ¥5,395,612 ¥(20,204) ¥228,720 ¥248,925
Note:¥11,763 million, that is sum of unrealized loss (Net) of ¥20,204 million and tax effects of ¥8,441 million is included in unrealized loss on securities available for sale in the shareholders’ equity.
31. Investment securities available for sale, which the Bank sold in the interim period under review, are as follows:
Sale amount ¥1,570,399 million
Gain on sales ¥67,655 million
32. Major components and the balance-sheet amount of non-marketable investment securities are as follows:
Subsidiaries and affiliated companies
Subsidiaries ¥30,704 million
Affiliated companies ¥9,048 million
Securities available for sale
Unlisted foreign securities ¥87,478 million Unlisted equity securities ¥49,651 million
Note: Unlisted equity securities do not include stocks traded on the over-the-counter market. 33. Projected redemption amounts of securities available for sale with maturity dates, and debt
securities being held to maturity are listed below by the remaining terms of the securities.
(Millions of Yen)
One Year One to Five to More than
or Less Five Years 10 Years 10 Years
Debt Securities ¥215,250 ¥1,235,529 ¥908,716 ¥1,223 Government Bonds 73,989 801,169 733,468 — Municipal Bonds 11,014 76,514 116,710 119 Corporate Bonds 130,247 357,845 58,536 1,104 Other 139,266 1,216,872 608,146 35,322 Total ¥354,516 ¥2,452,402 ¥1,516,862 ¥36,546
34. Money held in trust comprised the following. Money held in trust for trading purposes:
Carrying value at the end of the current interim period: ¥24,606 million Unrealized loss charged to income in the current interim period: ¥2,401 million
35. Investment securities loaned through unsecured loan for consumption (bond lending transactions) and bailment for consumption represented ¥315,193 million of Other Securities under Investment Securities. Investment securities loaned through leasing contracts represented ¥43 million of Government Bonds under Investment Securities.
Investment securities borrowed, which have been used in cash-backed bond lending transactions, that give borrowers the right to freely dispose of such holdings through sale or repledging amounted to ¥29,780 million. Investment securities borrowed, which have not been loaned amounted to ¥148,775 million at the end of the interim period.
36. Overdraft facilities and loan commitment line contracts are agreements which, subject to compliance with contractual conditions, pledge to provide clients with funds up to a fixed limit upon submission of a loan application to the Bank. The unused amount related to such
facilities/contracts stood at ¥2,727,024 million.
Most of these agreements will expire without the clients having utilized the financial leeway available to them, and the amount of non-executed financing itself will not necessarily impact the Bank’s future cash flow, Most of these facilities/contracts contain a clause that allows the Bank to reject an application or reduce the upper limit requested in view of changing financial conditions, credit maintenance and other reasonable concerns.
When necessary, the Bank will demand collateral, such as real estate or marketable securities, at the time the agreement is made. Also, after facilities/contracts are set down, the Bank will regularly assess the business status of the client, based on predetermined internal procedures and when prudent, revise agreements and formulate measures, for example, to maintain creditworthiness. 37. Effective this interim period, the following transactions are accounted for as indicated below in
accordance with accounting standards for financial instruments.
(1) Sales under repurchase agreements which were accounted for as sale, are now treated as lending/borrowing transactions using the account “sales under agreement to repurchase.” (2) Cash-backed bond lending transactions, which were accounted for as bond lending transactions backed with cash, are now treated as lending/borrowing transactions backed with investment
Non-Consolidated Interim Statement of Income
The Mitsubishi Trust and Banking Corporation Six Months ended September 30, 2001
Millions of Yen
Operating Income: ¥334,367
Trust Fees 41,110
Interest Income: 202,640
(Interest on Loans and Discounts) 80,784 (Interest and Dividends on Securities) 74,423
Fees and Commissions: 17,777
Trading Profits : 1,510
Other Business Income: 23,735
Other Operating Profits: 47,593
Operating Expenses: 351,893
Interest Expenses: 126,427
(Interest on Deposits) 65,445
Fees and Commissions: 2,910
Trading Losses: 167
Other Business Expenses: 17,559
General and Administrative Expenses 78,119
Other Operating Expenses: 126,709
Operating Loss 17,526
Special Gains 6,358
Special Losses 2,216
Loss before Income Taxes 13,384
Income Taxes - Current 421
Income Taxes - Deferred (6,080)
Net Loss 7,724
Notes to Non-Consolidated Interim Statement of Income (For the interim period ended September 30, 2001)
1. The accompanying Non-Consolidated Statement of Income is compiled as required by the Banking Law and in conformity with accounting principles and practices generally accepted in Japan, which are different in certain respects as compared to the application and disclosure requirements of International Accounting Standards. The Non-Consolidated Statement of Income is not intended to present the results of operations in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan. For the convenience of readers, the presentation is modified in certain respects from the original Japanese report. All amounts are rounded down to the nearest million.
2. Transactions for trading purposes are recorded on a trade-date basis with gains or losses arising from the transactions being presented in Trading Profits or Trading Losses in the Non-Consolidated Interim Statement of Income.
Trading Profits and Trading Losses include:
1) Interest income received and interest expenses paid in cash in the current interim period, etc.; 2) The difference in holding gains and losses between the end of the previous fiscal year and the
end of the current interim period with respect to securities, monetary claims, etc.; and 3) The difference in holding gains and losses between the end of the previous fiscal year and the
end of the current interim period that are calculated based on the hypothetical close-out with respect to derivative financial products.
3. Other Operating Expenses includes ¥13,554 million in Loan Charge Offs, ¥23,158 million in Provision for Reserve for Possible Loan Losses, and ¥67,548 million in Losses from Write-Down of Stocks and Other Securities.
4. Other Special Gains includes ¥4,830 million in Gains on Disposal of Premises and Equipment. 5. Other Special Losses includes additional losses of ¥1,584 million, which represents amortization of
Comparison of Statement of Trust Assets and Liabilities
The Mitsubishi Trust and Banking Corporation September 30, 2001 and 2000, and March 31, 2001
Millions of Yen
Sept. 30 Sept. 30 Increase March 31 Increase
2001 2000 Decrease 2001 Decrease
(A) (B) (A-B) (C) (A-C)
Assets:
Loans and Bills Discounted ¥1,290,215 ¥1,721,839 ¥(431,623) ¥1,484,986 ¥(194,771) Securities 22,020,173 20,470,377 1,549,795 20,938,024 1,082,148 Securities Held for Securities Investment Trusts — 5,026,494 (5,026,494) — — Securities Held for Investment Trusts 5,933,637 — 5,933,637 4,702,750 1,230,887 Foreign Investments Held for Securities Investment Trusts — 380,188 (380,188) — — Foreign Investments Held for Investment Trusts 660,596 — 660,596 576,085 84,511 Beneficiary Rights 92,918 631,159 (538,240) 83,113 9,805 Securities Held in Custody Accounts 470,528 435,332 35,195 421,071 49,456
Securities Lent — 300 (300) — —
Money Claims 1,897,949 759,309 1,138,640 1,599,886 298,063 Premises and Equipment 660,113 506,286 153,826 537,317 122,795
Lease Rights 21,913 4,478 17,434 4,478 17,434
Other Claims 459,170 532,301 (73,130) 700,398 (241,228)
Bills Bought — 100 (100) — —
Call Loans 1,665,344 1,456,911 208,433 1,743,161 (77,817) Due from Banking Account 2,759,313 3,411,262 (651,948) 3,249,980 (490,667) Cash and Due from Banks 786,949 695,218 91,731 402,833 384,116 Total Assets ¥38,718,822 ¥36,031,558 ¥2,687,264 ¥ 36,444,087 ¥2,274,734 Liabilities:
Money Trusts ¥15,235,505 ¥14,346,314 ¥889,190 ¥14,811,448 ¥424,057 Pension Trusts 6,257,142 6,095,676 161,465 6,327,314 (70,172) Property Formation Benefit Trusts 13,130 13,216 (86) 13,628 (498) Loan Trusts 2,252,841 3,387,790 (1,134,948) 2,825,860 (573,018) Securities Investment Trusts — 6,760,690 (6,760,690) — — Investment Trusts 8,839,452 — 8,839,452 6,913,600 1,925,851 Money Entrusted Other than Money Trusts 2,603,810 2,501,032 102,778 2,378,419 225,391 Securities Trusts 633,913 878,473 (244,559) 777,636 (143,722) Money Claim Trusts 776,326 333,184 443,142 524,689 251,637
Equipment Trusts 525 1,008 (482) 743 (218)
Land and Fixtures Trusts 169,059 90,774 78,285 158,710 10,349 Other Trusts 1,937,113 1,623,395 313,718 1,712,034 225,078 Total Liabilities ¥38,718,822 ¥36,031,558 ¥2,687,264 ¥36,444,087 ¥2,274,734 All amounts are rounded down to the nearest million.
Interim Statement of Trust Assets and Liabilities
The Mitsubishi Trust and Banking CorporationSeptember 30, 2001
Millions of Yen
Assets:
Loans and Bills Discounted ¥1,290,215
Securities 22,020,173
Securities Held for Investment Trusts 5,933,637 Foreign Investments Held for Investment Trusts 660,596
Beneficiary Rights 92,918
Securities Held in Custody Accounts 470,528
Money Claims 1,897,949
Premises and Equipment 660,113
Lease Rights 21,913
Other Claims 459,170
Call Loans 1,665,344
Due from Banking Account 2,759,313 Cash and Due from Banks 786,949
Total Assets ¥38,718,822
Liabilities:
Money Trusts ¥15,235,505
Pension Trusts 6,257,142
Property Formation Benefit Trusts 13,130
Loan Trusts 2,252,841
Securities Investment Trusts 8,839,452 Money Entrusted Other than Money Trusts 2,603,810
Securities Trusts 633,913
Money Claim Trusts 776,326
Equipment Trusts 525
Land and Fixtures Trusts 169,059
Other Trusts 1,937,113
Total Liabilities ¥38,718,822
Notes to Interim Statement of Trust Assets and Liabilities
(As of September 30, 2001)
1. Amounts less than one million yen are rounded down to the nearest million.
2. Joint trust assets under the management of other companies: ¥11,216,131 million.
3. Loans in trusts with contracts for compensating the principal amounted to ¥1,088,679 million. Of this amount, loans to bankrupt debtors, past due loans, loans past due more than three months and restructured loans amounted to ¥7,589 million, ¥18,270 million, ¥1,074 million and ¥44,884 million, respectively, and ¥71,818 million in total.
Supplemental Data (As of September 30, 2001)
The component items of trusts with contracts for compensating the principal, including trusts for which the beneficiary interests are re-entrusted for investing in trust assets, are presented below.
Money Trusts (Jointly Operated Designated Money in Trust) Millions of Yen
Assets:
Loans and Bills Discounted ¥ 282,754
Securities 181,371
Other 521,841
Total ¥985,968
Liabilities:
Principal ¥984,669
Reserve for Possible Loan Losses 858
Other 440
Total ¥985,968
Note: Amounts less than one million yen are rounded down to the nearest million. Loan Trusts
Millions of Yen Assets:
Loans and Bills Discounted ¥805,924
Securities 376,200
Other 1,785,822
Total ¥2,967,947
Liabilities:
Principal ¥2,926,594
Special Reserve Funds 15,807
Other 25,545
Total ¥2,967,947
Financial Highlights
The Mitsubishi Trust and Banking Corporation September 30, 2001 and 2000, and March 31, 2001
Millions of Yen
Sept. 30 Sept. 30 Increase March 31 Increase
2001 2000 (Decrease) 2001 Decrease
(A) (B) (A-B) (C) (A-C)
Total Funds ¥35,257,082 ¥33,900,825 ¥1,356,257 ¥35,255,722 ¥1,360
Deposits 10,302,021 9,406,028 895,992 10,367,360 (65,338) Negotiable Certificates of Deposit 1,196,441 651,798 544,643 910,109 286,331 Money Trusts 15,235,505 14,346,314 889,190 14,811,448 424,057 Pension Trusts 6,257,142 6,095,676 161,465 6,327,314 (70,172) Property Formation Benefit Trusts 13,130 13,216 (86) 13,628 (498) Loan Trusts 2,252,841 3,387,790 (1,134,948) 2,825,860 (573,018)
Loans and Bills Discounted 10,192,581 10,352,333 (159,752) 10,447,469 (254,888)
Banking Account 8,902,366 8,630,494 271,871 8,962,483 (60,116) Trust Account 1,290,215 1,721,839 (431,623) 1,484,986 (194,771)
Investment Securities ¥27,948,288 ¥25,632,330 ¥2,315,957 ¥26,971,602 ¥976,686
The Mitsubishi Trust and Banking Corporation
1 Performance for the Six Months ended September 30, 2001 (April 1, 2001 to September 30, 2001)
(1) Financial Result (Nonconsolidated) (Millions of Yen)
September 30, 2001 September 30, 2000
(A) Change (A-B) (B)
139,837 10,013 129,823
(Gross Operating Profit before Trust Account Write-Offs) (Note 1) 150,178 (2,694) 152,872
Trust Fees 41,110 9,979 31,131
Trust Fees before Trust Account Write-Offs (Note 1) 51,452 (2,727) 54,180
33,052 (2,123) 35,176 18,399 (603) 19,003 10,341 (12,707) 23,049 7,423 (5,486) 12,909 2,600 (6,739) 9,339 318 (481) 799 76,340 (4,283) 80,623 14,867 502 14,365 1,342 232 1,110 6,176 3,582 2,594
Gains (Losses) on bonds 2,487 2,998 (511)
75,158 3,140 72,018 31,342 (474) 31,817 40,862 3,784 37,077 2,953 (170) 3,123 75,020 (5,834) 80,854 (4,843) (36,596) 31,752
Net Business Profit 69,522 43,470 26,052
(87,049) (88,730) 1,681 41,874 18,650 23,224 13,554 (9,081) 22,636 28,949 29,538 (589) - (216) 216 405 56 348 130 130
-Transfer to Reserve for Account for Specified Overseas Debt (1,373) (765) (607)
208 (1,011) 1,219 (37,130) (64,090) 26,959 67,548 57,418 10,129 (8,043) (5,989) (2,053) Operating Profits (17,526) (45,260) 27,734 4,142 1,085 3,056
Recovery of Loans Charges Off 1,528 (1,262) 2,790
4,198 3,198 999
1,584 (0) 1,584
Income (Loss) before Income Taxes (13,384) (44,175) 30,791
421 (182) 603
Income Tax Refund - 11,031 (11,031)
Income Taxes - Deferred (6,080) (25,563) 19,482
Net Income (7,724) (29,461) 21,736
47,372 (30,654) 78,026
Notes 1 Amounts before credit costs for loans in trusts with contracts for compensating the principal
Others
Special Gains (Losses)
Total credit costs ( 1＋＋＋2＋＋ ＋＋＋3 )
Gains (Losses) on Disposition of Premises and Equipment Expenses for Retirement Benefits
Income Taxes - Current Loss on Devaluation
Net Business Profit before Trust Account Write-Offs (before Transfer to General Reserve) (Note 3)
Other Losses Incurred from Sales of Loans
Reserve for Contingent Liabilities related to Loans Sold
Gains (Losses) on Sales and Devaluation of Stocks and Others Loan Losses Written-off
Transfer to Specific Reserves Loss on Sale of Loans to CCPC Loss on Sale of Past-Due Loans Other Income (Loss)
3. Credit Costs for Banking Account Income Taxes
2. Transfer to General Reserve General and Administrative Expenses
Personnel Cost
Equipment and Occupancy Expenses Fees and Commissions
Trading Profit Other Operating Profit
Loss on Sale to CCPC
Loss on Sale of Past-Due Loans
Loan Trusts and Money Trusts (Jointly Operated Designated Money in Trust) before Trust Account Write-Offs) (Note 1)
Interest Income Gross Operating Profit
Other Trust Fees
Financial Result (Consolidated)
(Millions of Yen) September 30, 2001 September 30, 2000
(A) Change (A-B) (B)
1 145,254 10,185 135,069
(Gross Operating Profit before Trust Account Write-Offs) 2 155,596 (2,522) 158,118
3 41,110 9,979 31,131 4 10,341 (12,707) 23,049 5 78,182 (3,972) 82,155 6 18,147 611 17,535 7 2,152 469 1,682 8 5,662 3,097 2,565 9 78,217 3,065 75,152 10 77,378 (5,587) 82,966 11 (4,821) (36,340) 31,519 12 71,858 43,460 28,397 13 (88,946) (89,818) 871
3. Credit Costs for Banking Account 14 44,252 20,017 24,234
Loan Losses Write-off 15 13,643 (9,093) 22,736
Transfer to Specific Reserves 16 31,238 30,917 321
Loss on Sale of Loans to CCPC 17 − (216) 216
Transfer to Reserve for Account for Specified Overseas Debt 18 (1,373） (765) (607)
Other Credit Costs 19 744 (824) 1,568
Gains (Losses) on Sales and Devaluation of Stocks and Others 20 (37,159) (64,133) 26,973
21 (314) (172) (142) 22 (7,219) (5,495) (1,724) 23 (17,088) (46,357) 29,269 24 4,134 732 3,402 25 (12,954) (45,625) 32,671 26 1,219 (160) 1,379 27 − 11,031 (11,031) 28 (6,221) (25,403) 19,182 29 281 597 (316) 30 (8,233) (31,690) 23,457 31 49,772 (29,030) 78,803
Notes1 All amounts are rounded down to the nearest million.
2
3
Consolidated Subsidiaries and Affiliates ( Number of Companies ) September 30,2001 March 31,2001
(A) Change(A-B)
32 27 2 25
33 15 − 15
Income Tax Refund Special Gains (Losses) Income Taxes - Current Operating Profit Others
2. Transfer to General Reserve
Gains (Losses) in Equity Method
Consolidated Net Business Profit(Note3)
Consolidated Net Business Profit before Trust Account Write-Offs (before Transfer to General Reserve) (Note 2)
Other Income (Loss)
Income (Loss) before Income Taxes Consolidated Gross Operating Profit
General and Administrative Expenses Other Operating Profit
Trust Fees Interest Income Fees and Commissions
1. Credit Costs for Trust Account
Trading Profit
Subsidiary Applied for Equity Method
Income Taxes - Deferred Net Income
Number of Consolidated Subsidiaries Total credit costs (1＋2＋3)
Minority Interests
Consolidated Net Business Profit = Nonconsolidated Net Business Profit+Gross Operating Profit of Subsidiaries-General and Administrative Expenses of Subsidiaries−Tranfer to General Reserve of Subsidiaries-Internal Transactions
September 30, 2001 September 30, 2000
(A) Change (A-B) (B)
75,020 (5,834) 80,854
Per Employee (Thousands of Yen) 13,081 (638) 13,720
(2) Net Business Profits 69,522 43,470 26,052
Per Employee (Thousands of Yen) 12,122 7,702 4,420
3．Profit Margin (Nonconsolidated)
(Total) ( %)
September 30, 2001 September 30, 2000
(A) Change (A-B) (B)
Interest-Earning Assets (Ｉ) 2.61 -0.75 3.37 Loans 1.86 -0.43 2.29 Securities 2.48 -0.25 2.73 Interest-Bearing Liabilities (ＩＩ) 1.67 -0.66 2.33 Deposits 1.18 -0.10 1.29 Margin (Ｉ) - (II) 0.94 -0.09 1.03 (Domestic) ( %) September 30, 2001 September 30, 2000
(A) Change (A-B) (B)
Interest-Earning Assets (I) 1.18 -0.35 1.54
Loans 1.25 -0.19 1.45
Securities 1.20 -0.53 1.73
Interest-Bearing Liabilities (II) 0.47 -0.14 0.62
Deposits 0.38 -0.09 0.47
Margin (I)-(II) 0.71 -0.21 0.92
4．Gains (Losses) on Securities (Nonconsolidated)
(Total) (Millions of Yen)
September 30, 2001 September 30, 2000
(A) Change (A-B) (B)
2,487 2,998 (511)
Gains on Sales 20,046 4,333 15,712
Losses on Sales 14,953 (1,095) 16,049
Write down 2,605 2,430 174
(Domestic) (Millions of Yen)
September 30, 2001 September 30, 2000
(A) Change (A-B) (B)
1,581 3,473 (1,891)
Gains on Sales 9,128 4,566 4,561
Losses on Sales 7,288 848 6,440
Write down 257 244 13
(Total) (Millions of Yen)
September 30, 2001 September 30, 2000
(A) Change (A-B) (B)
Gains (Losses) on Equity Securities (37,130) (64,090) 26,959
(1) Net Business Profit before Trust Account write-offs (before transfer to general reserve)
Gains (Losses) on Debt Securities
5. Unrealized Gains (Losses) on Securities
(1) Evaluation Standard for SecuritiesSecurities held for trading purposes Market price method (Unrealized gains (losses) are calculated as profit (losses) account) Marketable Debt securities being held to maturity Amortized cost using the moving-average cost method
Other Securities Market price method (Unrealized gains (losses) are reported in shareholders' equity) Stocks of subsidiaries and affiliates Cost method
(For references) Securities in money held in trust
Securities held for Trading Purpses Market price method (Unrealized gains (losses) are calculated as profit (losses) account) (2) Valuatin Gains (Losses)
(Consolidated)
(Millions of Yen)March 31,2001
Valuation Gains (Losses) Valuation Gains (Losses)
(A) Change (A-B) Valuation Gains Valuation Losses (B) Valuation Gains Valuation Losses
14,802 485 14,850 48 14,317 14,333 15 Other Securities (19,790) (204,656) 229,162 248,952 184,866 333,346 148,480 (101,755) (180,119) 99,472 201,228 78,363 204,579 126,215 44,413 (10,131) 45,291 878 54,545 55,571 1,026 37,552 (14,404) 84,398 46,845 51,957 73,195 21,238 Total (4,987) (204,170) 244,013 249,000 199,183 347,679 148,496 (101,755) (180,119) 99,472 201,228 78,363 204,579 126,215 54,957 (10,791) 55,883 925 65,749 66,777 1,028 41,810 (13,260) 88,656 46,846 55,070 76,323 21,252 Notes:
(Nonconsolidated)
(Millions of Yen)March 31,2001
Valuation Gains (Losses) Valuation Gains (Losses)
(A) Change (A-B) Valuation Gains Valuation Losses (B) Valuation Gains Valuation Losses
14,752 481 14,799 46 14,270 14,272 1 - - - -Other Securities (20,204) (204,570) 228,720 248,925 184,365 332,806 148,441 (102,219) (180,013) 99,008 201,228 77,794 204,009 126,215 44,410 (10,131) 45,289 878 54,542 55,568 1,026 37,604 (14,424) 84,423 46,818 52,029 73,228 21,199 Total (5,452) (204,088) 243,519 248,972 198,636 347,079 148,442 (102,219) (180,013) 99,008 201,228 77,794 204,009 126,215 54,955 (10,791) 55,880 925 65,746 66,774 1,028 41,812 (13,283) 88,630 46,818 55,096 76,295 21,199 Notes:
3. The valuation gains (losses) noted above are based on the market value at the end of the fiscal year (interim period). 4. Unrealized loss (net) of other securities at September 30, 2001, amounted to ￥ (11,763) million.
3. The valuation gains (losses) noted above are based on the market value at the end of the fiscal year (interim period). 4. Unrealized losses (net) of other securities at September 30, 2001, amounted to ￥(11,710) million.
1. The information presented above includes negotiable certificates of deposit in Cash and Due from Banks, and commodities investment beneficiary rights in Monetary Claims Purchased, in addition to Investment Securities.
2. Other Securities is stated at fair value, and the table above thus presents the differences between balance sheet amounts and acquisition costs for the fiscal year (interim period).
Bond Others Bond Others September 30,2001 Stock
1. The information presented above includes negotiable certificates of deposit in Cash and Due from Banks, and commodities investment beneficiary rights in Monetary Claims Purchased, in addition to Investment Securities.
Equity in subsidiaries and affiliates
2. Other Securities is stated at fair value, and the table above thus presents the differences between balance sheet amounts and acquisition costs for the fiscal year (interim period).
September 30,2001
Stock Bond Others Debt Securities Being Held to Maturity
Bond Others Stock Debt Securities Being Held to Maturity
Market Value Information for Securities in Trusts with Contracts for Compensating the Principal.
(1) Money Trusts (jointly operated designated money in trust)
A. Market Value of Securities (Millions of Yen)
Trust Assets at interim-period end Market Value Valuation Gains (Losses)
Sept. 30, 2001 181,371 187,717 6,345
Note: A fair value is given where a fair value can be calculated for a market-value equivalent.
B. Valuation Gains (Losses) of Derivative Transaction: ￥481 million
(2) Loan Trusts
A. Market value of Securities (Millions of Yen)
Trust Assets at interim-period end Market Value Valuation Gains (Losses)
Sept. 30, 2001 376,200 400,837 24,636
Note: A fair value is given where a fair value can be calculated for a market-value equivalent.
6. The risk-adjusted capital ratio based on the standard of theBIS (Consolidated)
(100 Millions of Yen)September 31,2001(A) Sept 30, 2000 March 31, 2001
(Preliminary Value) Change (A-B) Change (A-C) (B) (C)
(1) Risk-adjusted capital ratio (%) 11.55% -1.33% -0.51% 12.88% 12.06%
(2) Tier I 8,097 (400) (312) 8,498 8,410
(3) Tier II 5,874 (1,334) (646) 7,209 6,521
(a) Unrealized Gain on Investment SecuritiesQualifying as Capital - (778) (831) 778 831
(b) Revaluated Amount Qualifying as Capital − - - − −
(c) Subordinated Debt Qualifying as Capital
4,861 (445) 435 5,306 4,426
(4) Deduction 250 30 29 220 220
(Intentional holdings of other financial institutions' capital raising instruments. )
(5) Total Capital (2)+(3)-(4) 13,721 (1,765) (989) 15,487 14,711
(6) Risk-Adjusted Assets 118,794 (1,359) (3,172) 120,154 121,967
7. ROE (Nonconsolidated)
( %)
September 30,2001(A) Sept 30, 2000
(Preliminary Value) Change (A-B) (B)
23.46 -1.47 24.94
Net Business Profits Basis 21.72 13.86 7.86
Net Income Basis - - 6.52
(Calculation Method)
｛ ( Shareholders' Equity at the Beginning of Period−Issued Shares of Preferred Shares at the Beginning of Period×Issue Price )+ ( Shareholders' Equity at the End of Period−Issued Shares of Preferred×issue Price) ｝/ 2
×100 Net Business Profit before Trust Account write-offs
Basis(before transfer to general reserve)
II Loans
1. Risk Monitored Loans (Nonaccrual loans, accruing loans contractually past due three months or more
and restructured loans)(1) (Banking Account :Nonconsolidated)
( Millions of Yen )Risk-Monitored Loans Sept. 30, 2001 Sept. 30, 2000 March. 31, 2001
(A) Change (A-B) Change (A-C) (B) (c)
33,251
(47,834)
(12,667)
81,085
45,918
506,974
35,931
377
471,042
506,596
382
(304)
(1,726)
686
2,108
314,924
22,409
21,947
292,515
292,977
855,532
10,202
7,931
845,330
847,601
Loans at Year-End8,902,366
271,871
(60,116)
8,630,494
8,962,483
Percentage of Total Loans and Bills Discounted
0.37%
-0.56%
-0.13%
0.93%
0.51%
5.69%
0.23%
0.04%
5.45%
5.65%
0.00%
-0.00%
-0.01%
0.00%
0.02%
3.53%
0.14%
0.26%
3.38%
3.26%
9.61%
-0.18%
0.15%
9.79%
9.45%
( Banking Account :Consolidated )
( Millions of Yen )Risk-Monitored Loans Sept. 30, 2001 Sept. 30, 2000 March. 31, 2001
(A) Change (A-B) Change (A-C) (B) (c)
38,201
(42,892)
(8,874)
81,093
47,076
507,201
38,834
2,748
468,366
504,452
397
(313)
(1,737)
710
2,134
315,254
22,739
22,277
292,515
292,977
861,054
18,368
14,413
842,686
846,640
Loans at Year-End8,938,306
287,736
(61,892)
8,650,570
9,000,198
Percentage of Total Loans and Bills Discounted
0.42%
-0.51%
-0.09%
0.93%
0.52%
5.67%
0.26%
0.06%
5.41%
5.60%
0.00%
-0.00%
-0.01%
0.00%
0.02%
3.52%
0.14%
0.27%
3.38%
3.25%
9.63%
-0.10%
0.22%
9.74%
9.40%
Accruing loans contractually past due three months or more
Restructured Loans Total
Total
Past- due loans
Loans to customers in bankruptcy
Total
Restructured Loans Total
Loans to customers in bankruptcy Past- due loans
Accruing loans contractually past due three months or more
Restructured Loans Past- due loans
Accruing loans contractually past due three months or more
Loans to customers in bankruptcy
Accruing loans contractually past due three months or more
Restructured Loans
(2) ( Trust Account : Loans in Trusts with Contracts for Compensating the Principal ) (Millions of Yen)
Risk-Monitored Loans Sept. 30, 2001 Sept. 30, 2000 March. 31, 2001
(A) Change (A-B) Change (A-C) (B) (c)
7,589 (7,045) (3,375) 14,634 10,964 18,270 (11,142) (4,113) 29,413 22,383 1,074 (1,812) (686) 2,887 1,761 44,884 20,503 4,921 24,380 39,962 71,818 503 (3,253) 71,315 75,072 Loans at Year-End 1,088,679 (335,039) (164,944) 1,423,718 1,253,623 Percentage of Total Loans and Bills Discounted
0.69% -0.33% -0.17% 1.02% 0.87%
1.67% -0.38% -0.10% 2.06% 1.78%
0.09% -0.10% -0.04% 0.20% 0.14%
4.12% 2.41% 0.93% 1.71% 3.18%
6.59% 1.58% 0.60% 5.00% 5.98%
(3) ( Banking:Nonconsolidated and Trust Accounts ) ( Millions of Yen )
Risk-Monitored Loans Sept. 30, 2001 Sept. 30, 2000 March. 31, 2001
(A) Change (A-B) Change (A-C) (B) (c)
40,840 (54,879) (16,042) 95,720 56,883 525,244 24,788 (3,736) 500,455 528,980 1,457 (2,116) (2,412) 3,573 3,870 359,809 42,912 26,869 316,896 332,940 927,351 10,705 4,677 916,646 922,673 Loans at Year-End 9,991,045 (63,167) (225,060) 10,054,213 10,216,106 Percentage of Total Loans and Bills Discounted
0.40% -0.54% -0.14% 0.95% 0.55%
5.25% 0.27% 0.07% 4.97% 5.17%
0.01% -0.02% -0.02% 0.03% 0.03%
3.60% 0.44% 0.34% 3.15% 3.25%
9.28% 0.16% 0.25% 9.11% 9.03%
( Banking:Consolidated and Trust Accounts ) ( Millions of Yen )
Risk-Monitored Loans Sept. 30, 2001 Sept. 30, 2000 March. 31, 2001
(A) Change (A-B) Change (A-C) (B) (c)
Loans to customers in bankruptcy 45,790 (49,937) (12,250) 95,728 58,041
Past- due loans 525,471 27,691 (1,364) 497,780 526,835
Accruing loans contractually past due three month 1,471 (2,125) (2,424) 3,597 3,896
Restructured Loans 360,139 43,243 27,199 316,896 332,940
Total 932,873 18,871 11,160 914,002 921,713
Loans at Year-End 10,026,985 (47,303) (226,836) 10,074,289 10,253,821 Percentage of Total Loans and Bills Discounted
Loans to customers in bankruptcy 0.45% -0.49% -0.10% 0.95% 0.56%
Past- due loans 5.24% 0.29% 0.10% 4.94% 5.13%
Accruing loans contractually past due three month 0.01% -0.02% -0.02% 0.03% 0.03%
Restructured Loans Total
Total
Loans to customers in bankruptcy Past- due loans
Accruing loans contractually past due three months or more
Loans to customers in bankruptcy Past- due loans
Accruing loans contractually past due three months or more
Restructured Loans Past- due loans
Accruing loans contractually past due three months or more
Restructured Loans Total
Total
Loans to customers in bankruptcy Loans to customers in bankruptcy Past- due loans
Accruing loans contractually past due three months or more
(4)Risk-Monitorred Loans and Probrems Assets according to Self-Assessment System and The Fianancial Function Revitalization Law standard
Banking Account
(100 Millions of Yen)
Accruing loans contractually past due three months or more 3 Restructured loans 3,149
Total Total
- 8,750 8,555
Trust Account:Loans in trusts with contracts for compensating the principle
( 100 Millions of Yen )
Claims under bankruptcy and substantial bankruptcy 243
Claims to substantially bankrupt
debtors 168 Past due loans 145
Accruing loans contractually past due three months or more 0
Restructured loans 21 Past due loans 318 Past due loans 33
Accruing loans contractually past due three months or more 9
Past due loans 3 Past due loans 3 Accruing loans contractually past due
three months or more 0
Accruing loans contractually past due three months or more 0 Restructured loans 319 Restructured loans 319
Total Total Total (for refferences)
- 718 718 718
Claims to bankrupt debtors 340
Claims under bankruptcy and substantial bankruptcy 690
Loans to customers in bankruptcy 332
Self-Assessment Classification by Borrowers
Problem Assets based on Financial Function Revitalization Law by
Claims
Risk-Monitored Loans based on the Act Concerning Concurrent Operation of Trust Business by
Ordinary Banks Self-Assessment Classification by
Borrowers
Problem Assets based on Financial Function Revitalization Law by
Claims
Risk-Monitored Loans based on the Banking Law
Claims to substantially bankrupt debtors 349
Past due loans 5,069 Claims to possibly insolvent debtors
4,906 Claims under high risk 4,906
Claims under close observation 3,153
Claims under close observation (Special attention)
Claims under close observation (Monitor)
Normal
Claims to possibly insolvent debtors
150 Claims under high risk 150
Restructured loans 107 Normal 86,465
Risk-Monitored Loans based on the Banking Law (For references )
Claims to bankrupt debtors 75 Loans to customers in bankruptcy 75 Loans to customers in bankruptcy 75
Claims under close observation
(Special attention) Claims under close observation 323
Claims under close observation (Monitor)
Normal 10,168 Normal
The Bank's disclosure of "Past due Loans" in the trust account is based on the definition provided in the Act Concerning Concurrent Operation of Trust Business by Ordinary Banks . This definition states that past due loans are
'"Loans and bills discounted for which payment of principal or interest is more than six months in arrears, beginning from the day following the contractual payment due date."
5. Segment Information of Risk-Monitored Loans
( Millions of Yen )
(1)Loans by Region (Banking Account:Consolidated and Trust Account)
Sept. 30, 2001 Sept. 30, 2000 March. 31, 2001
(A) Change (A-B) Change (A-C) (B) (c)
Domestic 888,430 24,062 24,211 864,368 864,219 Overseas 44,442 (5,190) (13,051) 49,633 57,493 Asia 19,562 (16,038) (16,942) 35,601 36,504 Indonesia 13,913 (2,692) (3,579) 16,606 17,492 Thailand 3,148 (9,055) (10,642) 12,204 13,791 Hong Kong 398 (3,014) (2,289) 3,413 2,688 Others 2,101 (1,275) (430) 3,377 2,532 Russia - - - - -America 21,225 13,323 2,273 7,902 18,951 Others 3,654 (2,475) 1,617 6,130 2,036 Total 932,873 18,871 11,160 914,002 921,713
Note: Domestic and Overseas are grouped according to the registered location of the borrower.
(2) Loans by Industry ( Banking Account :Consolidated and Trust Account ) ( Millions of Yen )
Sept. 30, 2001 Sept. 30, 2000 March. 31, 2001
(A) Change (A-B) Change (A-C) (B) (c)
888,430 24,062 24,211 864,368 864,219
Manufacturing 70,038 1,190 2,660 68,847 67,377
Construction 121,383 13,670 11,744 107,712 109,639
Wholesale, Retail and Restaurants 53,379 4,172 5,110 49,207 48,269
44,914 (52,558) (5,231) 97,473 50,146 Real Estate 421,769 29,729 (24,989) 392,039 446,759 Services 128,956 (2,094) 26,517 131,051 102,439 Others 35,143 28,231 7,718 6,912 27,424 Consumers 12,845 1,720 681 11,124 12,163 Overseas 44,442 (5,190) (13,051) 49,633 57,493 Financial Institution 446 (10,710) (126) 11,157 573
Commerce and Industry 37,053 13,152 (9,044) 23,900 46,098
Others 6,942 (7,632) (3,879) 14,575 10,822
Total 932,873 18,871 11,160 914,002 921,713
Note: Domestic and Overseas are grouped according to the registered location of the borrower. Domestic
2.Reserve for Possible Loan Losses
(1) ( Banking Account : Nonconsolidated ) ( Millions of Yen )
Sept. 30, 2001 Sept. 30, 2000 March. 31, 2001
(A) Change (A-B) Change (A-C) (B) (C)
Reserve for Possible Loan Losses 337,321 56,575 (205) 280,745 337,527
General reserve 121,115 8,826 (4,843) 112,289 125,959
Specific reserve 213,503 49,059 6,011 164,443 207,491
Reserve for account for specified overseas debt
2,701 (1,310) (1,373) 4,012 4,075
Reserves for financial assistance to specific borrowers - - - -
-3,552 (2,258) (126) 5,811 3,679
( Banking Account : Consolidated ) ( Millions of Yen )
Sept. 30, 2001 Sept. 30, 2000 March. 31, 2001
(A) Change (A-B) Change (A-C) (B) (C)
Reserve for Possible Loan Losses 340,573 60,677 3,304 279,896 337,268
General reserve 121,408 8,944 (4,974) 112,463 126,383
Specific reserve 216,463 53,043 9,653 163,420 206,809
Reserve for account for specified overseas debt
2,701 (1,310) (1,373) 4,012 4,075
3,552 (2,258) (126) 5,811 3,679
(2) ( Trust Account ) ( Millions of Yen )
Sept. 30, 2001 Sept. 30, 2000 March. 31, 2001
(A) Change (A-B) Change (A-C) (B) (C)
15,807 (4,298) (2,032) 20,105 17,839
858 (149) (67) 1,008 925
Special Internal Reserves
Allowance for Bad Debts (Jointly Operated Designated Money Trust)
Reserve for contingencies on loans sold
