UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November, 2003
----------
MITSUBISHI TOKYO FINANCIAL GROUP, INC.
(Translation of registrant's name into English)
4-1, Marunouchi 2-chome, Chiyoda-ku
Tokyo 100-6326, Japan
(Address of principal executive offices)
----------
[Indicate by check mark whether the registrant files or
will file annual reports under cover Form 20-F or Form 40-F.]
Form 20-F __X__ Form 40-F _____
[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.]
Yes ____ No __X__
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: November 25, 2003
MITSUBISHI TOKYO FINANCIAL GROUP, INC.
By: /s/ Atsushi Inamura
-------------------------------------
Name: Atsushi Inamura
Title: Chief Manager, General Affairs
Corporate Administration Division
Interim Consolidated Summary Report
[under Japanese GAAP]
for the Fiscal Year Ending March 31, 2004
Date: November 25, 2003
Company name (code number): Mitsubishi Tokyo Financial Group, Inc. (8306)
(URL http://www.mtfg.co.jp)
Stock exchange listings: Tokyo, Osaka, New York, London
Headquarters: Tokyo
Representative: Shigemitsu Miki, President & CEO
For inquiry: Katsuhiko Ishizuka, Chief Manager -
Financial Policy Division
(Phone) +81-3-3240-8211
Date of resolution of Board of
Directors with respect to the
interim consolidated
financial statements: November 25, 2003
Trading accounts: Established
1. Consolidated financial data for the six months ended September 30, 2003
(1) Operating results
(in millions of yen except per share
data and percentages)
------------------------------------------------------------------------------
For the six months
ended September 30, For the year
------------------------- ended
2003 2002 March 31,2003
------------------------------------------------------------------------------
Ordinary income 1,360,929 1,425,412 2,772,528
Change from the previous year (4.5)% (15.6)%
------------------------------------------------------------------------------
Ordinary profit (loss) 273,432 (193,300) (360,262)
Change from the previous year -- --
------------------------------------------------------------------------------
Net income (loss) 301,877 (188,098) (161,495)
Change from the previous year -- --
------------------------------------------------------------------------------
Net income (loss) per common share 47,619.95 (34,461.56) (30,238.64)
------------------------------------------------------------------------------
Net income per common and common
equivalent share 45,810.42 -- --
------------------------------------------------------------------------------
Notes:
1. Equity in earnings (loss) of affiliates:
For the six months ended September 30, 2003: 1,232 million yen
For the six months ended September 30, 2002: (6,340) million yen
For the year ended March 31, 2003: (3,532) million yen
2. Average number of shares outstanding:
For the six months ended
September 30, 2003: (common stock) 6,259,246 shares
(preferred stock-class 1) 81,022 shares
(preferred stock-class 2) 89,614 shares
For the six months ended
September 30, 2002: (common stock) 5,579,156 shares
(preferred stock-class 1) 81,020 shares
(preferred stock-class 2) 100,000 shares
For the year ended
March 31, 2003: (common stock) 5,616,357 shares
(preferred stock-class 1) 81,021 shares
(preferred stock-class 2) 100,000 shares
3. Changes in accounting policy: Yes (See Notes to Consolidated
Financial Statements.)
- 1 -
(2) Financial condition
(in millions of yen except per share
data and percentages)
----------------------------------------------------------------------------------------------
For the six months
ended September 30, For the year
----------------------------- ended
2003 2002 March 31,2003
----------------------------------------------------------------------------------------------
Total assets 104,711,005 97,119,655 99,175,319
----------------------------------------------------------------------------------------------
Shareholders' equity 3,742,207 2,934,909 3,046,420
----------------------------------------------------------------------------------------------
Shareholders' equity as a
percentage of total
liabilities, minority
interest and shareholders' equity 3.6% 3.0% 3.1%
----------------------------------------------------------------------------------------------
Shareholders' equity per common share 532,290.28 445,269.63 417,951.31
----------------------------------------------------------------------------------------------
Risk-adjusted capital ratio (based (preliminary
on the standards of the Bank for basis)
International Settlements, the "BIS") 12.44% 10.49% 10.84%
----------------------------------------------------------------------------------------------
Note:
Number of shares outstanding as of:
September 30, 2003: (common stock) 6,355,414 shares
(preferred stock-class 1) 81,022 shares
(preferred stock-class 2) 56,200 shares
September 30, 2002: (common stock) 5,584,349 shares
(preferred stock-class 1) 81,020 shares
(preferred stock-class 2) 100,000 shares
March 31, 2003 (common stock) 6,228,850 shares
(preferred stock-class 1) 81,021 shares
(preferred stock-class 2) 100,000 shares
(3) Cash flows
(in millions of yen)
-------------------------------------------------------------------------------
For the six months
ended September 30, For the year
------------------------- ended
2003 2002 March 31,2003
-------------------------------------------------------------------------------
Net cash provided by operating
activities 700,148 1,245,897 4,636,714
-------------------------------------------------------------------------------
Net cash provided by (used in)
investing activities 1,096,071 (709,513) (2,124,823)
-------------------------------------------------------------------------------
Net cash provided by (used in)
financing activities 106,895 (95,146) (186,820)
-------------------------------------------------------------------------------
Cash and cash equivalents at end of
(interim) fiscal year 5,955,417 2,145,354 4,049,530
-------------------------------------------------------------------------------
(4) Scope of consolidation and application of the equity method
Consolidated subsidiaries: 176 Affiliated companies accounted
for by the equity method: 31
(5) Change in the scope of consolidation and application of the equity method
Consolidated subsidiaries: Newly included: 0 Excluded: 8
Affiliated companies accounted
for by the equity method: Newly included: 0 Excluded: 0
2. Earning projections for the fiscal year ending March 31, 2004
(in millions of yen)
------------------------------------------------
Ordinary income Ordinary profit Net income
------------------------------------------------
2,700,000 530,000 425,000
------------------------------------------------
Projected net income per common share for the year
ending March 31,2004 (yen): 65,672.20
- 2 -
[Reference]
Formulas for computing ratios for the six months ended September 30, 2003 are as
follows.
Net income per common share
Net income - Total dividends on preferred stock
---------------------------------------------------------
Average number of common stock during the period *
Net income per common and common equivalent share
Net income - Total dividends on preferred stock + Adjustments in net income
----------------------------------------------------------------------------
Average number of common stock during the period * + Common equivalent share
Shareholders' equity per common share
Shareholders' equity at end of period - Deduction from shareholders' equity**
-----------------------------------------------------------------------------
Number of common stock at end of period *
Formula for computing projected earning ratio for the fiscal year ending March
31, 2004 is as follows.
Projected net income per common share
Projected net income - Projected total dividends on preferred stock
-----------------------------------------------------------------------
Number of common stock at end of period *
* excluding treasury stock
** number of preferred stock at end of period x issue price + total dividends on
preferred stock
--------------------------------------------------------------------------------
This financial summary report and the accompanying financial highlights contain
forward-looking statements and other forward-looking information relating to the
company (the "forward-looking statements"). The forward-looking statements are
not historical facts and include, reflect or are otherwise based upon, among
other things, the company's current estimations, projections, views, policies,
business strategies, targets, expectations, assumptions and evaluation with
respect to general economic conditions, the results of operations, the financial
condition, the company's management in general and other future events.
Accordingly, they are inherently susceptible to uncertainties, risks and changes
in circumstances and are not guarantees of future performance.
Some forward-looking statements represent targets that the company's management
will strive to achieve through the successful implementation of the company's
business strategies. The company may not be successful in implementing its
business strategy, and actual results may differ materially, for a wide range of
possible reasons. Other forward-looking statements reflect the assumptions and
estimations upon which the calculation of deferred tax assets has been based and
are themselves subject to the full range of uncertainties, risks and changes in
circumstances outlined above.
In light of the many risks, uncertainties and possible changes, you are advised
not to put undue reliance on the forward-looking statements. The company is
under no obligation - and expressly disclaims any obligation - to update or
alter the forward-looking statements, except as may be required by any
applicable laws and regulations or stock exchange rules.
For detailed information relating to uncertainties, risks and changes regarding
the forward-looking statements, please see the company's latest annual report
and other disclosures.
--------------------------------------------------------------------------------
- 3 -
1. Information on the Company
The Company is engaged primarily in the banking business and also conducts
trust business, securities business, asset management business and other
related financial businesses.
The Company's corporate governance structure and its major subsidiaries are
as follows:
[FLOW CHART APPEARS HERE]
- 4 -
2. Management Policy
(1) Principal management policy
The Company's management philosophy set forth below represents the core set
of principles that forms the foundation for our strategies and
decision-making process.
[Group Management Philosophy]
Founded on the key principles of trust and reliability,
Mitsubishi Tokyo Financial Group
contributes to the prosperity of its customers at home and abroad
and of the communities it serves, and
continuously creates social and economic value,
by providing comprehensive financial services.
(2) Basic policy regarding profit distribution
Given the public nature of a bank holding company, it is the Company's
policy to endeavor to maintain stable dividends while focusing attention on
improving the Company's overall strength in order to bolster its corporate
constitution and continued sound management.
With respect to interim dividends for the six months ended September 30,
2003, the Company has decided not to pay any dividends on its common stock
and to pay (Y)41,250 per share of class 1 preferred stock and (Y)8,100 per
share of class 2 preferred stock.
With respect to annual dividends for the fiscal year ending March 31, 2004,
the Company plans to pay (Y)4,000 per share of common stock; (Y)41,250 per
share of class 1 preferred stock (which would result in a total of
(Y)82,500 per share together with the interim dividend); and (Y)8,100 per
share of class 2 preferred stock (which would result in a total of
(Y)16,200 per share together with the interim dividend).
(3) Basic policy relating to the possible lowering of the minimum purchase
price
With regard to the minimum purchase price for the Company's common stock,
the Company does not believe that it needs to make any adjustments
immediately in light of the current circumstances, such as market price,
number of shareholders, liquidity and cost-benefit. The Company, however,
will continue to consider, as appropriate, the possibility of lowering the
minimum purchase price taking into account investors' needs and the
above-described circumstances.
(4) Management targets/1/
The Company has set the following management targets for the fiscal year
ending March 31, 2006:
. The Company is striving toward the efficient management of its capital,
setting a target ROE/2/ of over 13%,
. The Company is striving toward the efficient management of its assets
and capital, with a target BIS ratio of approximately 12%,
. The Company is aiming to achieve consolidated net business profits
before credit costs for trust accounts and provision for formula
allowance for loan losses of approximately (Y)1,140 billion, and
. The Company is aiming to achieve a consolidated net income of
approximately (Y)460 billion.
----------
/1/ The assumptions for these targets are: in the year ending March 31, 2006,
the Euro-yen rate (3 months) of 0.6% (period average), Japanese
yen-US dollar exchange rate of (Y)120 at the end of the period and actual
GDP growth rate of 1.8%.
/2/ ROE shall be calculated as follows:
Consolidated net income - Dividends on non-convertible preferred stock
-------------------------------------------------------------------------- X 100
{(Consolidated shareholders' equity at the beginning of period - Number of
outstanding shares of non-convertible preferred stock at the beginning of
period x Issued price - Land revaluation excess at the beginning of period -
Unrealized gains (losses) on securities available for sale at the beginning of
period) + (Consolidated shareholders' equity at the end of period - Number of
outstanding shares of non-convertible preferred stock at the end of period x
Issued price - Land revaluation excess at the end of period - Unrealized gains
(losses) on securities available for sale at the end of period)}/ 2
- 5 -
(5) Medium term management strategy
Through a further reform of its profit structure, the Company seeks to
build swiftly a business structure that can achieve stable growth.
In order to strive to achieve this target, the Company aims to restructure
the business model of the entire group by shifting to a more consolidated
and integrated management of the group. As a start, the Company established
Strategy Council which is organized by the President & CEO and selected
member of the Board of Directors.
In rebuilding the business model, Bank of Tokyo-Mitsubishi, Mitsubishi
Trust and Banking and Mitsubishi Securities will seek to reallocate their
resources, including personnel and facilities, to further enhance the
expertise of each group company, and to create a structure that can provide
customers with higher quality and more comprehensive financial services.
1. Retail business: Strengthening strategy and improving efficiency
The Company plans to strengthen operations and raise efficiency in the
growing retail business area. By developing strategies and through
integrating operations group-wide, the Company aims to achieve rapid and
customer-friendly delivery of the best products and services to each
customer through efficient channels. As a concrete measure, the Company
decided to establish MTFG Plazas, a new, integrated channel for retail
customers that provide comprehensive financial services, including those
from Bank of Tokyo-Mitsubishi, Mitsubishi Trust and Banking and
Mitsubishi Securities, at one-stop location. The first office will open
February 2004.
2. Standardizing and integrating operations and systems
The Company further develops the standardization and integration of
office operations and systems, and pursues reduction of total group
costs while maintaining a high level of functionality, quality and
dependability.
3. Increasing expertise and operational efficiency
The Company plans to consolidate skills and functions within the group
to further increase expertise and raise operational efficiency and
productivity.
(6) Issues facing the company
The Japanese economy is still a long way off from emerging from
deflationary state and the business environment could remain unstable
although some brighter symptoms appear backed by recovering U.S. economy
and so forth. In this environment, the Company is striving to improve its
business results by promptly addressing its non-performing loan and
shareholdings issues and moving towards an "aggressive" business strategy.
In accordance with the Financial Services Agency's policy of halving the
non-performing loan ratio by the end of fiscal 2004, which is highlighted
in their "Program for Financial Revival", the Company has promoted the
revitalization of troubled corporate customers and the disposal of
non-performing loans so that the Company's aggregate non-performing loan
ratio has decreased to the level which achieves the target set by the
government policy one and half year in advance. However, the Company will
continue the reduction of shareholdings in order to strengthen its balance
sheet. The Company seeks to increase its profitability by increasing loan
volume to creditworthy borrowers and improving the risk-adjusted returns on
the lending business, by expanding the offerings of fee-generating
value-added financial services in business areas such as commercial
banking, asset management and investment banking, and by promoting cost
efficiency through further streamlining the branch network and personnel
structure while maintaining and improving customer convenience.
In order to effectively carry out these business objectives, the Company
intends to implement a consolidated, group management structure, while
enhancing the relationship and cooperation with its subsidiaries. The
Company will also review and modify functions and roles among the Company
and its subsidiaries within its consolidated management framework.
(7) Corporate governance principles and status of implementation of corporate
governance changes
[Corporate Governance Principles]
The "Group Management Philosophy" is the basic policy for forming
management strategies and all activities relating to the business decisions
the Company makes. The Company also established the "MTFG Code of Ethics"
which is a set of common values and ethical principles to be shared by the
employees of the Company. The Company is committed to improving the
corporate governance structure through the implementation of the "Group
Management Philosophy" and "MTFG Code of Ethics."
- 6 -
[MTFG Code of Ethics]
.. Establishment of Trust
----------------------
Fully cognizant of the importance of the Group's social responsibilities and
public role, we strive to maintain unwavering trust from society through the
sound and proper management of our business activities, based on the
principle of accountability.
.. Serving Our Clients First
-------------------------
We recognize that the satisfaction of our clients and their confidence in
MTFG form the foundation of the Group's very existence. As such, we endeavor
to always provide our clients with the highest quality products and services
best suited to their needs.
.. Sound and Transparent Management
--------------------------------
We endeavor to manage our affairs in a sound and transparent manner by
maintaining appropriate and balanced relationships with all stakeholders,
including clients, shareholders and others, while assuring fair, adequate and
timely disclosure of corporate information.
.. Strict Observance of Laws, Regulations, and Internal Rules
----------------------------------------------------------
We are committed to strictly observing relevant laws, regulations, and
internal rules and to acting with fairness and integrity in conformity with
the common values of society at large. As a diversified global financial
services group, we also make continuous efforts to operate in ways that
reflect internationally accepted standards.
.. Respect for Human Rights and the Environment
--------------------------------------------
We respect human rights and the environment and seek to co-exist in harmony
with society.
.. Disavowal of Anti-Social Elements
---------------------------------
We stand firmly against supporting the activities of any group or individual
that unlawfully threatens public order and safety.
[Status of Implementation of Corporate Governance Changes]
1. Corporate governance structures for decision making, administration and
supervision
The Board of Directors of the Company is comprised of twelve directors, two
of whom are outside directors. The Board of Directors decides the
administration of affairs of the Company and supervises execution of duties
of the officers.
The Company has a Board of Corporate Auditors pursuant to the Japanese
Commercial Code. The Board of Corporate Auditors of the Company is comprised
of five corporate auditors, two of whom are from outside the Company.
Pursuant to the audit policies and plans adopted by the Board of Corporate
Auditors, each corporate auditor oversees the execution of duties by the
officers by attending meetings, including the Board of Directors meetings,
and by reviewing business performance and financial conditions of the
Company.
Corporate Administration Division provides staffing support to all directors
and corporate auditors, including the outside directors and outside corporate
auditors.
Pursuant to the basic policies adopted by the Board of Directors, the
Executive Committee comprised of the Chairman, President and three Senior
Managing Directors, deliberates on and decides important management affairs
of the Company.
The Company has also set up various committees, including sixteen committees
that serve as advisory bodies to the Executive Committee, the Compliance
Advisory Committee comprised of external lawyers and accountants and the
Advisory Board comprised of outside experts.
.. Strategy Council: Strategy Council deliberates and makes decision on the
significant affairs and policies to restructure the business model of the
entire group. Strategy Council affiliates Strategic Coordination Committee
and Strategic Planning Committees.
.. Management Planning Committee: The Management Planning Committee deliberates
on and follows up on overall group policies, capital policies and financial
planning. The committee convenes on a quarterly basis.
.. Business Planning Committee: The Business Planning Committee deliberates on
general management affairs and important issues related to business
operations of the Company. The committee convenes as needed.
- 7 -
.. Corporate Risk Management Committee: The Corporate Risk Management Committee
deliberates on important matters relating to risk management of the Company.
The committee convenes on a quarterly basis.
.. Audit & Compliance Committee: The Audit & Compliance Committee deliberates on
important matters relating to internal audits and legal compliance. The
committee convenes on a quarterly basis.
.. Disclosure Committee: The Disclosure Committee deliberates on the accuracy of
disclosure and internal disclosure standards of the Company. The committee
convenes at least four times a year.
.. Compliance Advisory Committee: The Compliance Advisory Committee makes
compliance related proposals and advice to the Board to improve the
effectiveness of the Company's compliance activities from an independent
standpoint. The committee convenes on a quarterly basis.
.. Advisory Board: The Advisory Board advises the Executive Committee on all
aspects of management from an independent standpoint. The committee convenes
semi-annually.
The Company's framework of operation and audit and the framework of internal
control are as follows:
[FLOW CHART APPERARS HERE]
The Company receives advice from external lawyers and accountants, if needed for
execution of duties.
2. Summary of related party transactions between the company and outside
corporate auditors and outside directors
The outside directors and outside corporate auditors have no personal ties
with other directors and corporate auditors, and do not have related party
transactions which are material or that are unusual in their nature or
conditions with the Company.
Ryotaro Kaneko, an outside director, also serves as President of Meiji Life
Insurance Company, with which the Company has a business relationship. Kunio
Ishihara, an outside director, also serves as President of Tokio Marine &
Fire Insurance Co., Ltd., with which the Company has a business relationship.
3. Implementation of measures to strengthen the corporate governance structure
in this half fiscal year
During the first half fiscal year 2003, the Board of Directors met 8 times to
decide the administration of affairs, and the Executive Committee met 20
times to deliberate on and decide important management affairs. The Board of
Corporate
- 8 -
Auditors met 10 times and decided audit policies and plans for the half
fiscal year. Pursuant to the audit policies and plans, each corporate auditor
oversaw the execution of duties by the officers by attending key meetings,
including the Board of Directors meetings, and by reviewing the business
performance and financial conditions of the Company. The Strategy Council met
5 times, the Management Planning Committee met twice, and the Business
Planning Committee met once during the half fiscal year 2003, and the
Corporate Risk Management Committee and the Audit & Compliance Committee each
met quarterly during the half fiscal year, and the Disclosure Committee met 3
times, and the Strategy Coordination Committee met 6 times. The Compliance
Advisory Committee met quarterly during the half fiscal year and advised and
made proposals to the Board. The Advisory Board met twice during the half
fiscal year and advised the Executive Committee.
During the first half fiscal year 2003, the Company took active steps with
respect to the disclosure of corporate information, including public
disclosure of quarterly financial information which started in July, 2002,
issuance of "Mini-Disclosure 2003" reports for individual customers and
disclosure of corporate information of the Company on its website.
3. Results of Operations and Financial Condition
(1) Results of operations
With respect to the financial and economic environment for the six months
ended September 30, 2003, as uncertainty in the economy was reduced with
the end of the war in Iraq and the containment of the SARS epidemic, the
economies outside of Japan, especially the United States economy, showed
signs of recovery. In Japan, there were several trends that indicated signs
of recovery, such as reports that exports and productivity are increasing
and that capital investment sentiment is improving. However, consumer
prices continued to decline and deflation is also continuing.
Looking at the financial situation in the United States, the Federal Fund
Rate was lowered to 1 percent in June 2003 with a negative outlook. In the
EU, the European Central Bank's policy rate was reduced to 2 percent in
June 2003.
In Japan, the target balance for the current account held at the Bank of
Japan was raised to around (Y)27 to (Y)30 trillion in May 2003 in order to
ensure liquidity in the Japanese financial market. During the six months
ended September 30, 2003, while the short-term interest rate remained at
near zero percent, the yield on 10-year government bonds, used as a
benchmark for long-term interest rates, reached a record low at around 0.4%
in June 2003 and then jumped up to around 1.7% temporarily. In the foreign
exchange markets, although the Japanese yen-US dollar exchange rate
generally remained in the range of (Y)115 to (Y)120, after the meeting of
the G-7 finance ministers and central bank governors held on September 20,
2003, the value of the Japanese yen rose rapidly against the US dollar.
Amidst this environment, the Company recorded a net income of (Y)301.8
billion for the six months ended September 30, 2003 compared to a net loss
of (Y)188.0 billion for the six months ended September 30, 2002. The
increase was primarily due to the following factors.
The first factor was a (Y)288.8 billion decrease in total credit costs from
(Y)225.6 billion for the six months ended September 30, 2002 to (Y)63.2
billion reversal of total credit costs for the six months ended September
30, 2003.
The second factor was a (Y)233.8 billion decrease in net losses on equity
securities from (Y)242.9 billion for the six months ended September 30,
2002 to (Y)9.0 billion for the six months ended September 30, 2003.
The third factor was a (Y)49.5 billion increase in net business profits
before credit costs for trust accounts and provision for formula allowance
for loan losses from (Y)368.3 billion for the six months ended September
30, 2002 to (Y)417.8 billion for the six months ended September 30, 2003.
The increase was mainly due to increases in net fees and commissions and
net trading profits.
The fourth factor was a (Y)58.0 billion decrease in other net non-recurring
losses, due primarily to not having foreign exchange losses of (Y)43.6
billion relating to the redemption of convertible bonds as was the case in
the same period in the prior fiscal year. Gains specific to the six months
ended September 30, 2003 were special gains of (Y)41.9 billion recognized
for the refund of enterprise taxes by the Tokyo Metropolitan Government and
special gains of (Y)26.5 billion resulting from the transfer of the
substitutional portion of future pension obligations.
As a result, for the six months ended September 30, 2003, ordinary profit
was (Y)273.4 billion and net income was (Y)301.8 billion.
- 9 -
Ordinary profit by business segment was; (Y)174.0 billion for the banking
segment, (Y)65.4 billion for the trust banking segment and (Y)22.4 billion
for the securities segment. Ordinary profit (loss) by geographic segment
was; ordinary profit of (Y)158.3 billion in Japan, (Y)75.3 billion in North
America, (Y)30.8 billion in Europe and the Middle East, (Y)18.6 billion in
Asia and Oceania excluding Japan, respectively, and ordinary loss of (Y)0.9
billion in Latin America.
The Company has the following earning projections for the fiscal year
ending March 31, 2004.
Consolidated
Consolidated ordinary income ordinary profit Consolidated net income
(Y)2,700,000 million (Y)530,000 million (Y)425,000 million
(Reference)
1. Projected net income per common share (consolidated) (Y)65,672.20
2. Projected net income per common share (non-consolidated) (Y)8,869.21
3. Projected dividend per share (non-consolidated)
Common stock (Y)4,000
Preferred stock-class 1 (Y)82,500
Preferred stock-class 2 (Y)16,200
The Company's business and results of operations may be materially affected for
a wide range of possible reasons (which may include those material to
investors), including:
. Deterioration of economic conditions in Japan or elsewhere in the world
(especially in Asian and Latin American countries);
. Increase of problem loans and credit-related expenses;
. Possible negative effects to our equity portfolio;
. Inability to maintain BIS capital ratios above minimum levels;
. Risks relating to trading and investment activities;
. Changes in interest rates in Japan or elsewhere in the world;
. Fluctuations in foreign currency exchange rates;
. Downgrade of the Company's credit ratings and the negative effect on the
Company's treasury operations;
. Ineffectiveness or failure of the Company's business strategies;
. Risks accompanying the expansion of the Company's operation and the range
of products and services;
. Decline in the results of operations and financial conditions of the
Company's subsidiaries;
. Risks relating to the increase of the Company's pension obligations;
. Events that obligate the Company to compensate for losses in loan trusts
and jointly operated designated money in trusts;
. Risks inherent in the Company's holding company structure;
. Risks relating to regulatory developments or changes in laws, rules,
including accounting rules, governmental policies and economic controls;
. Increase in competitive pressures;
. Imposition of bank taxes or introduction of new taxes applicable to banks;
and
. Possible negative effects related to owning our shares.
For a detailed discussion of these risks and other risks, please see the
Company's public filings.
(2) Financial condition
Loans and bills discounted decreased by (Y)529.6 billion from (Y)46,950.3
billion at March 31, 2003 to (Y)46,420.7 billion at September 30, 2003.
This change consisted mainly of a decrease of (Y)30.3 billion in domestic
loans, a decrease of (Y)748.4 billion in loans made by overseas branches
and an increase of (Y)573.2 billion in domestic housing loans.
Investment securities decreased by (Y)1,892.6 billion from (Y)24,158.3
billion at March 31, 2003 to (Y)22,265.6 billion at September 30, 2003.
Total shareholders' equity increased by (Y)695.7 billion from (Y)3,046.4
billion at March 31, 2003 to (Y)3,742.2 billion at September 30, 2003.
- 10 -
For the six months ended September 30, 2003, net cash provided by operating
activities were (Y)700.1 billion, net cash provided by investing activities
were (Y)1,096.0 billion and net cash provided by financing activities were
(Y)106.8 billion. As a result, the balance of cash and cash equivalents at
September 30, 2003 was (Y)5,955.4 billion.
The Company's consolidated risk adjusted capital ratio (based on the
standards of the BIS) increased by 1.60% from 10.84% at March 31, 2003 to
12.44% at September 30, 2003.
The following table shows the Company's consolidated risk adjusted capital
ratio at March 31, 2002, 2003 and September 30, 2003.
(in billions of Japanese yen,
except for percentages)
-------------------------------------------------------------------------------
At September
30, 2003
At March At March (Preliminary
31, 2002 31, 2003 basis)
-------------------------------------------------------------------------------
Tier I capital 3,181.1 3,128.6 3,683.7
-------------------------------------------------------------------------------
Tier II capital 3,145.3 2,847.6 3,127.2
-------------------------------------------------------------------------------
Tier III capital -- 30.0 29.9
-------------------------------------------------------------------------------
Deduction from total qualifying
capital 105.9 37.9 51.0
-------------------------------------------------------------------------------
Total qualifying capital 6,220.5 5,968.4 6,789.7
-------------------------------------------------------------------------------
Risk-adjusted assets 60,335.8 55,049.6 54,543.3
-------------------------------------------------------------------------------
Consolidated risk-adjusted capital
ratio (based on the standards of
the BIS) 10.30% 10.84% 12.44%
-------------------------------------------------------------------------------
----------
(*) Tier II capital and Tier III capital represent amounts includable as
qualifying capital.
- 11 -
(Japanese GAAP)
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Balance Sheets
========================================================================================================================
As of September 30, As of March
(in millions of yen) 2003 (A) 2002 (B) (A) - (B) 31, 2003 (C) (A) - (C)
========================================================================================================================
Assets:
Cash and due from banks 9,912,534 6,311,583 3,600,951 8,235,754 1,676,779
Call loans and bills bought 937,576 600,125 337,451 551,357 386,219
Receivables under resale agreements 521,366 977,461 (456,095) 482,776 38,589
Receivables under securities borrowing
transactions 5,763,393 2,731,518 3,031,874 2,475,841 3,287,552
Commercial paper and other debt purchased 1,167,667 530,599 637,067 500,614 667,052
Trading assets 6,460,498 5,473,291 987,206 5,612,937 847,560
Money held in trust 470,220 337,989 132,230 415,558 54,661
Investment securities 22,265,644 23,118,954 (853,309) 24,158,330 (1,892,685)
Allowance for losses on investment securities (2,937) (4,125) 1,187 (2,067) (870)
Loans and bills discounted 46,420,701 46,961,813 (541,111) 46,950,363 (529,662)
Foreign exchanges 589,994 615,782 (25,787) 609,944 (19,949)
Other assets 4,394,439 3,439,202 955,237 3,213,143 1,181,295
Premises and equipment 942,775 1,014,900 (72,125) 988,407 (45,631)
Deferred debenture discounts and other costs -- 30 (30) 9 (9)
Deferred tax assets 1,055,185 1,120,699 (65,513) 1,362,692 (307,506)
Deferred tax assets on land revaluation loss 1,803 4,984 (3,181) 1,593 209
Customers' liabilities for acceptances and
guarantees 4,853,440 5,383,121 (529,680) 4,915,353 (61,913)
Allowance for loan losses (1,043,299) (1,498,277) 454,978 (1,297,292) 253,993
-------------------------------------------------- --------------------------------------------------------------------
Total assets 104,711,005 97,119,655 7,591,349 99,175,319 5,535,685
================================================== ====================================================================
Liabilities:
Deposits 65,186,659 60,110,143 5,076,515 62,624,363 2,562,295
Negotiable certificates of deposit 3,729,540 3,062,225 667,314 4,045,901 (316,361)
Debentures 516,603 1,198,024 (681,421) 636,060 (119,456)
Call money and bills sold 4,334,966 3,335,976 998,990 3,740,653 594,312
Payables under repurchase agreements 3,536,865 3,135,593 401,271 3,162,054 374,810
Payables under securities lending transactions 4,558,290 3,519,242 1,039,048 3,883,443 674,846
Commercial paper 717,989 908,040 (190,051) 763,208 (45,219)
Trading liabilities 1,634,106 1,957,506 (323,400) 1,567,512 66,594
Borrowed money 1,446,930 1,675,564 (228,634) 1,512,729 (65,798)
Foreign exchanges 920,205 648,370 271,834 532,947 387,258
Short-term corporate bonds 213,500 -- 213,500 10,000 203,500
Bonds and notes 3,830,193 3,420,718 409,474 3,546,979 283,213
Bonds with warrants 50,528 295,651 (245,123) 50,528 --
Due to trust account 1,336,541 1,635,468 (298,927) 1,401,617 (65,076)
Other liabilities 3,517,798 3,327,976 189,822 3,163,552 354,246
Reserve for employees' bonuses 17,231 16,888 342 17,028 202
Reserve for employees' retirement benefits 32,473 40,996 (8,522) 36,976 (4,502)
Reserve for losses on real estate-
collateralized loans sold -- 2,039 (2,039) -- --
Reserve for expenses related to EXPO 2005 Japan 103 -- 103 50 53
Reserves under special laws 1,049 540 508 799 249
Deferred tax liabilities 65,638 54,190 11,447 60,836 4,801
Deferred tax liabilities on land revaluation
excess 128,396 126,561 1,835 133,649 (5,253)
Acceptances and guarantees 4,853,440 5,383,121 (529,680) 4,915,353 (61,913)
-------------------------------------------------- --------------------------------------------------------------------
Total liabilities 100,629,052 93,854,844 6,774,207 95,806,248 4,822,803
-------------------------------------------------- --------------------------------------------------------------------
Minority interest 339,745 329,902 9,843 322,650 17,095
-------------------------------------------------- --------------------------------------------------------------------
Shareholders' equity:
Capital stock 1,258,052 1,146,500 111,552 1,258,052 --
Capital surplus 931,304 835,048 96,255 932,016 (712)
Retained earnings 1,244,197 944,245 299,951 962,347 281,849
Land revaluation excess 186,364 198,590 (12,225) 195,418 (9,054)
Unrealized gains (losses) on securities
available for sale 186,295 (9,521) 195,816 (223,432) 409,727
Foreign currency translation adjustments (60,670) (81,228) 20,558 (73,499) 12,829
Less treasury stock (3,335) (98,724) 95,388 (4,482) 1,146
-------------------------------------------------- --------------------------------------------------------------------
Total shareholders' equity 3,742,207 2,934,909 807,298 3,046,420 695,786
-------------------------------------------------- --------------------------------------------------------------------
Total liabilities, minority interest and
shareholders' equity 104,711,005 97,119,655 7,591,349 99,175,319 5,535,685
================================================== ====================================================================
See Notes to Consolidated Financial Statements.
- 12 -
(Japanese GAAP)
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statements of Operations
==========================================================================================================
For the six months ended For the year
September 30, ended March
(in millions of yen) 2003 (A) 2002 (B) (A) - (B) 31, 2003
==========================================================================================================
Ordinary income:
Interest income:
Interest on loans and discounts 454,784 519,318 (64,534) 1,016,256
Interest and dividends on securities 178,509 177,292 1,217 378,334
Other interest income 123,071 186,518 (63,447) 297,048
----------------------------------------------- ------------------------------------------------------
Total interest income 756,365 883,129 (126,764) 1,691,639
Trust fees 36,452 47,957 (11,504) 101,442
Fees and commissions 234,025 201,837 32,188 428,014
Trading profits 76,177 54,283 21,893 79,907
Other business income 169,633 133,006 36,627 278,645
Other ordinary income 88,275 105,197 (16,922) 192,878
-------------------------------------------------- ------------------------------------------------------
Total ordinary income 1,360,929 1,425,412 (64,482) 2,772,528
-------------------------------------------------- ------------------------------------------------------
Ordinary expenses:
Interest expense:
Interest on deposits 84,492 119,535 (35,042) 231,832
Interest on debentures and amortization of
debenture discounts 2,310 5,654 (3,343) 8,504
Other interest expense 137,472 236,621 (99,149) 394,184
----------------------------------------------- ------------------------------------------------------
Total interest expense 224,276 361,811 (137,535) 634,520
Fees and commissions 38,224 33,621 4,602 73,296
Trading losses 4,136 10,549 (6,413) --
Other business expenses 108,115 69,084 39,030 126,198
General and administrative expenses 523,123 511,825 11,298 1,048,806
Other ordinary expenses 189,621 631,820 (442,198) 1,249,968
-------------------------------------------------- ------------------------------------------------------
Total ordinary expenses 1,087,497 1,618,712 (531,215) 3,132,790
-------------------------------------------------- ------------------------------------------------------
Ordinary profit (loss) 273,432 (193,300) 466,732 (360,262)
-------------------------------------------------- ------------------------------------------------------
Special gains 249,702 27,271 222,431 48,552
Special losses 14,800 14,405 395 29,031
-------------------------------------------------- ------------------------------------------------------
Income (Loss) before income taxes and others 508,334 (180,434) 688,768 (340,742)
-------------------------------------------------- ------------------------------------------------------
Income taxes-current 25,503 31,920 (6,416) 55,919
Income taxes-deferred 159,516 (27,033) 186,550 (237,065)
Minority interest 21,436 2,777 18,658 1,898
-------------------------------------------------- ------------------------------------------------------
Net income (loss) 301,877 (188,098) 489,976 (161,495)
================================================== ======================================================
See Notes to Consolidated Financial Statements.
- 13 -
(Japanese GAAP)
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statements of Capital Surplus and Retained Earnings
===============================================================================================================================
For the six months ended For the year
September 30, ended March
(in millions of yen) 2003 (A) 2002 (B) (A) - (B) 31, 2003
===============================================================================================================================
Consolidated Statements of Capital Surplus
Balance of capital surplus at beginning of fiscal year 932,016 834,644 97,371 834,644
-------------------------------------------------------------------- ------------------------------------------------------
Increase: -- 403 (403) 111,552
Issuance of common stock due to capital increase -- -- -- 111,552
Gains on sales of treasury stock, net of income taxes -- 403 (403) --
-------------------------------------------------------------------- ------------------------------------------------------
Decrease: (712) -- (712) (14,180)
Losses on sales of treasury stock, net of income taxes (712) -- (712) (14,180)
-------------------------------------------------------------------- ------------------------------------------------------
Balance of capital surplus at end of (interim) fiscal year 931,304 835,048 96,255 932,016
==================================================================== ======================================================
Consolidated Statements of Retained Earnings
Balance of retained earnings at beginning of fiscal year 962,347 1,189,718 (227,370) 1,189,718
-------------------------------------------------------------------- ------------------------------------------------------
Increase: 310,932 6,141 304,790 3,228
Net income 301,877 -- 301,877 --
Reduction in land revaluation excess 9,054 3,064 5,989 --
Change in ownership percentage to a consolidated subsidiary
due to stock repurchase by the subsidiary -- 2,738 (2,738) 2,648
Decrease in companies accounted for by the equity method -- 338 (338) 580
-------------------------------------------------------------------- ------------------------------------------------------
Decrease: (29,082) (251,614) 222,532 (230,599)
Net loss -- (188,098) 188,098 (161,495)
Cash dividends (29,078) (41,776) 12,697 (45,943)
Bonuses to directors of consolidated subsidiaries (3) (3) (0) (3)
Reduction in land revaluation excess -- -- -- (1,420)
Change in ownership percentage to consolidated subsidiaries and
a company accounted for by the equity method due to their merger -- (17,725) 17,725 (17,725)
Increase in consolidated subsidiaries and companies
accounted for by the equity method -- (4,011) 4,011 (4,011)
-------------------------------------------------------------------- ------------------------------------------------------
Balance of retained earnings at end of (interim) fiscal year 1,244,197 944,245 299,951 962,347
==================================================================== ======================================================
See Notes to Consolidated Financial Statements.
- 14 -
(Japanese GAAP)
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statements of Cash Flows
=================================================================================================================================
For the six months ended For the year
September 30, ended March
(in millions of yen) 2003 (A) 2002 (B) (A) - (B) 31, 2003
=================================================================================================================================
Cash flows from operating activities:
Income (Loss) before income taxes and others 508,334 (180,434) 688,768 (340,742)
Depreciation 46,061 39,596 6,464 86,242
Goodwill amortization (599) (693) 93 (3,937)
Equity in loss (earnings) of affiliates (1,232) 6,340 (7,572) 3,532
Increase (decrease) in allowance for loan losses (253,853) (153,931) (99,922) (355,043)
Increase (decrease) in allowance for losses on investment securities 1,121 2,625 (1,503) 566
Increase (decrease) in reserve for losses on real estate-
collateralized loans sold -- (5,536) 5,536 (7,575)
Increase (decrease) in reserve for employees' bonuses 202 566 (363) 743
Increase (decrease) in reserve for employees' retirement benefits (4,502) 4,280 (8,783) 228
Increase (decrease) in reserve for expenses related to EXPO 2005 Japan 53 -- 53 50
Interest income recognized on statements of operations (756,365) (883,129) 126,764 (1,691,639)
Interest expenses recognized on statements of operations 224,276 361,811 (137,535) 634,520
Investment securities losses (gains) 10,035 210,579 (200,544) 400,864
Losses (gains) on money held in trust (3,895) 8,552 (12,447) 7,421
Foreign exchange losses (gains) 302,701 148,678 154,023 (32,716)
Losses (gains) on sales of premises and equipment 7,721 11,507 (3,785) 20,680
Net decrease (increase) in trading assets (831,976) 200,750 (1,032,727) 100,860
Net increase (decrease) in trading liabilities 53,836 1,265,030 (1,211,194) 848,319
Adjustment of unsettled trading accounts (44,595) (610,143) 565,547 (601,361)
Net decrease (increase) in loans and bills discounted 587,495 1,639,205 (1,051,710) 1,668,901
Net increase (decrease) in deposits 2,511,203 592,884 1,918,318 3,077,728
Net increase (decrease) in negotiable certificates of deposit (317,583) (119,345) (198,237) 863,841
Net increase (decrease) in debentures (119,456) (1,077,545) 958,088 (1,639,510)
Net increase (decrease) in borrowed money (excluding subordinated
borrowings) (54,327) (208,726) 154,398 (304,049)
Net decrease (increase) in due from banks (excluding cash equivalents) 244,440 491,185 (246,745) 477,598
Net decrease (increase) in call loans and bills bought and others (589,857) 623,072 (1,212,929) 1,208,579
Net decrease (increase) in receivables under securities borrowing
transactions (3,284,170) (736,788) (2,547,381) (217,281)
Net increase (decrease) in call money and bills sold and others 961,881 (1,112,719) 2,074,600 (695,559)
Net increase (decrease) in commercial paper (54,575) 69,688 (124,264) (75,419)
Net increase (decrease) in payables under securities lending
transactions 667,873 377,634 290,238 475,235
Net decrease (increase) in foreign exchanges (assets) 19,949 (54,999) 74,949 (49,161)
Net increase (decrease) in foreign exchanges (liabilities) 387,258 134,471 252,787 19,047
Net increase (decrease) in short-term corporate bonds (liabilities) 203,500 -- 203,500 10,000
Net increase (decrease) in issuance and redemption of unsubordinated
bonds and notes 127,506 229,423 (101,916) 401,567
Net increase (decrease) in due to trust account (65,076) (646,756) 581,679 (880,607)
Interest income (cash basis) 810,788 958,652 (147,864) 1,772,695
Interest expenses (cash basis) (272,624) (413,633) 141,008 (718,006)
Other (301,910) 104,074 (405,985) 215,211
------------------------------------------------------------------------- ------------------------------------------------------
Sub-total 719,638 1,276,230 (556,592) 4,681,824
Income taxes (19,489) (30,332) 10,842 (45,110)
------------------------------------------------------------------------- ------------------------------------------------------
Net cash provided by operating activities 700,148 1,245,897 (545,749) 4,636,714
Cash flows from investing activities:
Purchases of investment securities (23,411,837) (22,905,355) (506,481) (44,807,196)
Proceeds from sales of investment securities 17,576,271 12,765,484 4,810,787 27,103,131
Proceeds from maturities of investment securities 6,969,299 9,460,086 (2,490,787) 15,702,239
Increase in money held in trust (61,595) (64,333) 2,738 (162,435)
Decrease in money held in trust 5,043 48,921 (43,878) 64,037
Purchases of premises and equipment (15,173) (29,424) 14,250 (42,775)
Proceeds from sales of premises and equipment 32,040 15,107 16,933 19,099
Purchases of equity of newly consolidated subsidiaries -- -- -- (923)
Proceeds from sales of equity of subsidiaries resulting
deconsolidation 2,022 -- 2,022 --
------------------------------------------------------------------------- ------------------------------------------------------
Net cash provided by (used in) investing activities 1,096,071 (709,513) 1,805,585 (2,124,823)
Cash flows from financing activities:
Increase in subordinated borrowings 104,345 115,500 (11,154) 116,000
Decrease in subordinated borrowings (139,845) (70,599) (69,245) (137,842)
Increase in subordinated bonds and notes and bonds with warrants 191,642 161,432 30,209 189,757
Decrease in subordinated bonds and notes and bonds with warrants (17,057) (279,339) 262,281 (625,897)
Proceeds from issuance of common stock -- -- -- 223,104
Proceeds from issuance of common stock to minority shareholders 9,422 11,189 (1,767) 16,195
Dividend paid by the parent (29,010) (41,724) 12,714 (46,702)
Dividend paid by subsidiaries to minority shareholders (13,372) (3,045) (10,327) (3,414)
Purchases of treasury stock (139) (380) 240 (965)
Proceeds from sales of treasury stock 910 11,820 (10,909) 82,944
------------------------------------------------------------------------- ------------------------------------------------------
Net cash provided by (used in) financing activities 106,895 (95,146) 202,042 (186,820)
Effect of exchange rate changes on cash and cash equivalents 2,772 (72,492) 75,265 (48,536)
------------------------------------------------------------------------- ------------------------------------------------------
Net increase in cash and cash equivalents 1,905,887 368,744 1,537,142 2,276,534
Cash and cash equivalents at beginning of fiscal year 4,049,530 1,741,798 2,307,731 1,741,798
Increase in cash and cash equivalents due to consolidation of new
subsidiaries -- 34,811 (34,811) 34,811
Decrease in cash and cash equivalents due to deconsolidation of
subsidiaries -- -- -- (3,614)
------------------------------------------------------------------------- ------------------------------------------------------
Cash and cash equivalents at end of (interim) fiscal year 5,955,417 2,145,354 3,810,063 4,049,530
------------------------------------------------------------------------- ------------------------------------------------------
- 15 -
Notes to Consolidated Financial Statements
Notes related to the Consolidated Balance Sheet as of September 30, 2003 are as
follows:
1. Basis of Presentation
The accompanying Consolidated Balance Sheet of Mitsubishi Tokyo Financial
Group, Inc. ("MTFG") and its subsidiaries 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 Consolidated 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. The amounts are presented in millions of yen and are rounded down to the
nearest million.
2. Trading Assets and Liabilities
Transactions for trading purposes (for purposes of seeking to capture gains
arising from short-term changes in interest rates, currency exchange rates or
market prices of securities and other market-related indices or from gaps among
markets) are included in Trading assets and Trading liabilities on a trade date
basis.
Trading securities and monetary claims purchased for trading purposes are
stated at market value at interim fiscal year end. Trading-related financial
derivatives such as swaps, futures or options are stated at the estimated
amounts that would be received or paid for settlement if such transactions were
terminated at interim fiscal year end.
3. Investment Securities
Debt securities being held to maturity are stated at amortized cost
computed by the moving-average method (straight-line amortization). Other
securities (securities available for sale) whose current value can be estimated
are stated at market value at interim fiscal year end (sale cost is calculated
by the moving-average method) and other non-marketable securities are stated at
cost or amortized cost computed by the moving-average method. Unrealized gains
and losses on securities available for sale are included in shareholders'
equity, net of income taxes.
4. Securities in Money Held in Trust
Securities included in Money held in trust are stated at the same method as
described in notes 2. and 3.
5. Derivatives
Derivatives for purposes other than trading are stated at market value.
In the previous fiscal year, MTFG's domestic banking subsidiary and trust
banking subsidiary adopted the transitional treatments prescribed in the
Industry Audit Committee Report No. 25, "Treatment of Accounting and Auditing
Concerning Accounting for Foreign Currency Transactions in the Banking Industry"
issued by the Japanese Institute of Certified Public Accountants (the "JICPA")
on July 29, 2002. According to the transitional treatments, currency swap
transactions and fund swap transactions for the purpose of funds
borrowing/lending in different currencies were accounted for on an accrual basis
as financing transactions in accordance with the Industry Audit Committee Report
No. 20, "Temporary Treatment of Accounting and Auditing Concerning Accounting
for Foreign Currency Transactions in the Banking Industry" issued by the JICPA
on November 14, 2000. In the current interim fiscal year, such swap transactions
are stated at market value as derivative transactions and net assets or
liabilities are recorded on the balance sheet in accordance with the standard
treatments of the Industry Audit Committee Report No. 25.
- 16 -
As a result, "Other assets" and "Other liabilities" increased by (Y)81,105
million, respectively. With respect to the currency swap transactions and fund
swap transactions which had been accounted for on an accrual basis, the change
had no effects on the results of operations since MTFG's domestic banking
subsidiary and trust banking subsidiary applied hedge accounting in accordance
with the Industry Audit Committee Report No. 25. Summary of the hedge accounting
is described in Note 16.
In the previous fiscal year, the translation adjustments of forward
exchange transactions and other relevant transactions in MTFG's domestic banking
subsidiary were reported as other in "Other assets" or other in "Other
liabilities" on a net basis by applying the transitional treatments prescribed
in the Industry Audit Committee Report No. 25. In the current interim fiscal
year, they are reported as trading derivative financial instruments in "Trading
assets" and "Trading liabilities" or as derivative financial instruments in
"Other assets" and "Other liabilities" on a gross basis in accordance with the
standard treatments of the Report No. 25. The translation adjustments of forward
exchange transactions and other relevant transactions in MTFG's domestic trust
banking subsidiary were reported as other in "Other assets" or other in "Other
liabilities." In the current interim fiscal year, they are reported as trading
derivative financial instruments in "Trading assets" and "Trading liabilities"
or as derivative financial instruments in "Other assets" and "Other
liabilities." As a result, "Trading assets" increased by (Y)60,878 million,
"Trading liabilities" decreased by (Y)377 million, "Other assets" increased by
(Y)715,102 million and "Other liabilities" increased by (Y)776,358 million.
6. Premises and Equipment
Depreciation for buildings and equipment of MTFG and its domestic banking
subsidiary and trust banking subsidiary is computed using the declining-balance
method.
Principal estimated useful lives are as follows:
Buildings 15 years to 50 years
Equipment and furniture 5 years to 20 years
Depreciation for buildings and equipment of other consolidated subsidiaries
is computed principally using the straight-line method based on the estimated
useful lives.
7. Software
Costs of computer software developed or obtained for internal use are
deferred and amortized using the straight-line method over the estimated useful
lives of 5 to 10 years.
8. Bonds Issuance Costs
Bonds issuance costs are charged to expenses when incurred.
9. Translation of Foreign Currency Items
Foreign currency assets and liabilities and overseas branches' accounts of
MTFG's domestic banking subsidiary and trust banking subsidiary are principally
translated into yen equivalents at the exchange rates prevailing at interim
fiscal year end, except equity securities of affiliated companies which are
translated into yen equivalents at the exchange rates prevailing at the
acquisition date for those securities.
Foreign currency assets and liabilities of other consolidated subsidiaries
are principally translated into yen equivalents at the exchange rates prevailing
at interim fiscal year end of each company.
10. Allowance for Loan Losses
An allowance for loan losses of MTFG's primary domestic consolidated
subsidiaries is provided as detailed below, pursuant to the internal rules for
self-assessment of asset quality and the internal rules for providing allowances
for credit losses:
- 17 -
For claims to debtors who are legally bankrupt (due to bankruptcy, special
liquidation, suspension of transactions with banks by the rules of clearing
houses, etc.) or virtually bankrupt, an allowance is provided based on the
amount of claims, after the charge-off as 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 for which future
cash flows could not be reasonably estimated, an allowance is provided for the
amount considered to be necessary based on an overall solvency assessment
performed for the amount of claims, 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 and to be closely
watched for which future cash flows could be reasonably estimated, an allowance
is provided for the difference between the present value of expected future cash
flows discounted at the contracted interest rate and the carrying value of the
claim.
For other claims, an allowance is provided based on historical loan loss
experience.
The allowance for loans to specific foreign borrowers is provided based on
the amount of expected losses due to the political and economic situation of
their respective countries.
All claims are assessed by the branches and credit supervision divisions
based on the internal rules for self-assessment of asset quality. The credit
examination divisions, which are independent from branches and credit
supervision divisions, subsequently conduct audits of their assessments, and an
allowance is provided based on audit results.
For collateralized or guaranteed claims to debtors who are legally bankrupt
or virtually bankrupt, the amount of claims exceeding the estimated value of
collateral or guarantees, which is deemed uncollectible, has been charged-off
and the amount was (Y)605,373 million.
An allowance for loan losses of other consolidated subsidiaries is provided
based on historical loan losses experience or estimated collectibility of
specific claims.
11. Allowance for Losses on Investment Securities
An allowance for losses on investment securities is provided based on the
estimated losses on non-marketable debt securities.
12. Reserve for Employees' Bonuses
A reserve for employees' bonuses is provided for the payment of employees'
bonuses based on estimated amounts of the future payments attributed to the
current interim fiscal year.
13. Reserve for Employees' Retirement Benefits
A reserve for employees' retirement benefits is provided for the payment of
employees' retirement benefits based on estimated amounts of the actuarial
retirement benefit obligation and the related pension assets. Prior service cost
is amortized using the straight-line method over 10 years. Net actuarial gain
(loss) is amortized using the straight-line method over 10 years commencing from
the next fiscal year of incurrence. The unrecognized net retirement benefit
obligation at the adoption of new accounting standard is being amortized using
the straight-line method over 5 years.
14. Equipment Used under Finance Lease Agreements
Equipment used under finance lease agreements is accounted for as equipment
leased under operating leases, except for those leases which transfer ownership
of leased equipment to the lessee, in which case the equipment is capitalized.
15. Hedge Accounting for Interest Rate Risks
With respect to hedge accounting for interest rate risks arising from
financial assets and liabilities, in the previous fiscal year,
- 18 -
MTFG's domestic banking subsidiary and trust banking subsidiary principally
applied the "macro hedge" accounting for which they manage interest rate risks
arising from various deposits and loans etc. with derivative transactions as a
whole in conformity with the transitional treatments prescribed in the Industry
Audit Committee Report No. 24, "Treatment of Accounting and Auditing of
Application of Accounting Standard for Financial Instruments in the Banking
Industry" issued by the JICPA on February 13, 2002. Since the beginning of the
current interim fiscal year, they have adopted portfolio hedges or individual
hedges prescribed in the Report No. 24 and the Accounting Committee Report No.
14, "Practical Guidelines for Accounting for Financial Instruments" issued by
the JICPA on January 31, 2000. The method of the hedge accounting is the
deferral method.
In hedging activities to offset changes in the fair value of fixed rate
deposits and loans etc., MTFG's domestic banking subsidiary and trust banking
subsidiary distinguish hedged items by grouping the hedged items by their
maturities and designate interest rate swap transactions etc. as hedging
instruments in accordance with the Industry Audit Committee Report No. 24. In
hedging activities offsetting changes in the fair value of fixed rate bonds,
they distinguish hedged items by individual bond or identical type of bonds and
designate interest rate swap transactions etc. as hedging instruments. Since
material terms related to the hedged items and hedging instruments are
substantially identical, hedge relationship is deemed to be highly effective and
the hedge effectiveness testing is substituted. MTFG's domestic trust banking
subsidiary applies exceptional treatments permitted for interest rate swaps for
certain assets and liabilities and, therefore, omits testing hedge
effectiveness.
In hedging activities to fix forecasted cash flows on variable rate or
short-term fixed rate deposits and loans etc., MTFG's domestic banking
subsidiary and trust banking subsidiary distinguish hedged items by grouping the
hedged items by their index interest rates and repricing terms and designate
interest rate swap transactions etc. as hedging instruments in accordance with
the Industry Audit Committee Report No. 24. Since material terms related to the
hedged items and hedging instruments are substantially identical, hedge
relationship is deemed to be highly effective and the hedge effectiveness
testing is substituted. Effectiveness is also tested by correlation of
fluctuation factors in interest rates.
Deferred hedge losses and deferred hedge gains recorded on the balance
sheet as of March 31, 2003 as a result of the macro hedge accounting are
realized as expenses or income over the remaining lives of the hedging
instruments. Deferred hedge losses and deferred hedge gains attributable to the
macro hedge accounting as of September 30, 2003 were (Y)304,517 million and
(Y)363,926 million, respectively.
16. Hedge Accounting for Foreign Exchange Risks
With respect to hedge accounting for foreign exchange risks attributable to
foreign-currency-denominated financial assets and liabilities, since the
beginning of the current interim fiscal year, MTFG's domestic banking subsidiary
and trust banking subsidiary have applied the deferral hedge accounting by
distinguishing hedged items by grouping the foreign-currency-denominated
financial assets and liabilities by currencies and designating currency swap
transactions and forward exchange contracts (funds swap transactions) as hedging
instruments, pursuant to the Industry Audit Committee Report No. 25.
They also engage in "portfolio hedge" to hedge foreign exchange risk
attributable to foreign-currency-denominated investments in affiliated companies
and foreign-currency-denominated securities available for sale (other than
bonds), using foreign-currency-denominated liabilities and forward exchange
contracts as hedging instruments. They apply the deferral hedge method to
foreign-currency-denominated investments in affiliated companies and the fair
value hedge method to foreign-currency-denominated securities available for sale
(other than bonds).
17. Intercompany and Intracompany Swap Transactions
With respect to the intercompany and intracompany derivative transactions,
realized gains (losses) or valuation gains (losses) on the interest rate swap
transactions and currency swap transactions are reported in current earnings or
deferred as assets or liabilities without elimination if mirror transactions
with the third parties against these swap transactions designated as hedging
instruments are appropriately conducted in conformity with the non-arbitrary and
strict hedging policy in accordance with the
- 19 -
Industry Audit Committee Report No. 24 and No. 25.
18. Consumption Taxes
The National Consumption Tax and the Local Consumption Tax are excluded
from transaction amounts. The portion of the National Consumption Tax and the
Local Consumption Tax, which were paid on the purchase of premises and equipment
and which are not deductible as a tax credit, are charged to expenses when
incurred.
19. Reserve for Expenses Related to EXPO 2005 Japan
A reserve for expenses related to EXPO 2005 Japan is provided for the
expenses related to the participation in the EXPO 2005 Japan to be held in Aichi
Prefecture in 2005. The reserve is provided pursuant to Article 43 of the
Commercial Code and includes the allowance provided pursuant to Article 68-52 of
the Special Taxation Measures Law.
20. Reserves under Special Laws
Pursuant to Article 82 of the Financial Futures Transactions Law, a reserve
for contingent liabilities from brokering of financial futures transactions of
(Y)31 million was provided.
Pursuant to Article 51 of the Securities and Exchange Law, a reserve for
contingent liabilities from brokering of securities transactions of (Y)1,017
million was provided.
21. Consolidated Corporate-tax System
MTFG and certain domestic consolidated subsidiaries adopt consolidated
corporate-tax system, with MTFG being a parent company under the system.
22. Due from Directors of MTFG
Due from directors of MTFG was (Y)102 million.
23. Accumulated Depreciation
Accumulated depreciation on premises and equipment was (Y)636,810 million.
24. Accumulated Deferred Gains on Sales of Real Estate
Accumulated deferred gains on sales of real estate of (Y)49,407 million
were deducted from the acquisition cost of newly acquired premises and
equipment.
25. Nonaccrual Loans
Loans to customers in bankruptcy and past due loans are included in Loans
and bills discounted, and the amounts were (Y)74,545 million and (Y)933,469
million, respectively. The amount of past due loans included loans of (Y)22,426
million entrusted to the Resolution and Collection Corporation, which
facilitates the removal of problem loans from balance sheet.
Loans are generally placed on nonaccrual status when substantial doubt is
judged to exist as to ultimate collectibility of either principal or interest if
they are past due for a certain period or for other reasons. Loans to customers
in bankruptcy represent nonaccrual loans, after the partial charge-off of claims
deemed uncollectible, to debtors who are legally bankrupt, which are defined in
Article 96, Paragraph 1, Subparagraph 3 and 4 of Enforcement Ordinance for the
Corporation Tax Law. Past due loans are nonaccrual loans other than loans to
customers in bankruptcy and loans for which interest payments are deferred in
order to assist the financial recovery of debtors in financial difficulties.
- 20 -
26. Accruing Loans Contractually Past Due 3 Months or More
Accruing loans contractually past due 3 months or more are included in
Loans and bills discounted, and the amount was (Y)17,682 million. Loans
classified as loans to customers in bankruptcy or past due loans are excluded.
27. Restructured Loans
Restructured loans are included in Loans and bills discounted, and the
amount was (Y)887,341 million. Such restructured loans are loans on which
concessions (e.g., reduction of the stated interest rate, deferral of interest
payment, extension of maturity date, reduction of the face amount or maturity
amount of the debt or accrued interest) have been granted to debtors in
financial difficulties to assist them in their financial recovery and eventually
to be able to repay to creditors. Loans classified as loans to customers in
bankruptcy, past due loans or accruing loans contractually past due 3 months or
more are excluded.
28. Nonaccrual Loans, Accruing Loans Contractually Past Due 3 Months or More and
Restructured Loans
Total amount of nonaccrual loans, accruing loans contractually past due 3
months or more and restructured loans was (Y)1,913,039 million. The amount of
past due loans included loans of (Y)22,426 million entrusted to the Resolution
and Collection Corporation, which facilitates the removal of problem loans from
balance sheet.
The amounts reflected in Notes 25. to 28. represent the gross receivable
amounts prior to reduction for the allowance for loan losses.
29. Bills Discounted
Bills discounted are accounted for as secured lending transactions in
conformity with the Industry Audit Committee Report No.24. Bills accepted by
other banks, commercial bills, bills of exchange, and foreign bills bought
discounted by MTFG's domestic banking subsidiary and trust banking subsidiary
are permitted to be sold or pledged and the total face value was (Y)747,615
million.
30. Assets Pledged
Assets pledged as collateral were as follows:
Cash and due from banks (Y)3,375 million
Trading assets (Y)169,993 million
Investment securities (Y)1,154,950 million
Loans and bills discounted (Y)1,945,083 million
Premises and equipment (Y)5,351 million
Liabilities related to the pledged assets were as follows:
Deposits (Y)268,540 million
Call money and bills sold (Y)2,741,800 million
Borrowed money (Y)76,205 million
Other liabilities (Y)150 million
Acceptances and guarantees (Y)3,173 million
In addition, Cash and due from banks of (Y)182,338 million, Trading assets
of (Y)2,876 million, Investment securities of (Y)2,544,781 million, Loans and
bills discounted of (Y)1,452,017 million and Other assets of (Y)88,348 million
were pledged as collateral for settlement of exchange or derivatives
transactions or as valuation margin.
Trading assets of (Y)2,185,564 million and Investment securities of
(Y)2,541,945 million were sold under repurchase agreements or lent under secured
lending transactions, and Payables under repurchase agreements of (Y)2,728,651
million and
- 21 -
Payables under securities lending transactions of (Y)2,582,123 million were
corresponding.
Bills rediscounted are accounted for secured borrowing transactions in
conformity with the Industry Audit Committee Report No.24. The total face value
of bills accepted by other banks, commercial bills, and bills of exchange
rediscounted by MTFG's domestic banking subsidiary and trust banking subsidiary
was (Y)22,678 million.
31. Land Revaluation Excess
Pursuant to the Law concerning Revaluation of Land, promulgated on March
31, 1998 and revised on March 31, 2001, land used for business operations of
domestic subsidiaries has been revalued as of the following dates. Land
revaluation excess is included in Shareholders' equity, net of income taxes. The
land revaluation excess includes MTFG's ownership percentage of affiliated
companies' land revaluation excess.
Date of the revaluation:
Domestic banking subsidiary March 31, 1998
Domestic trust banking subsidiary March 31, 2002
Other domestic subsidiaries December 31, 2001
The method of the revaluation as set forth in Article 3, Paragraph 3 of the
Law:
Pursuant to Article 2, Subparagraph 4 of the Enforcement Ordinance for
the Law concerning Revaluation of Land, the land price for the
revaluation is determined based on the method established and
published by the Director General of National Tax Agency in order to
calculate the land value for a basis of determining the taxable amount
subject to land value tax prescribed by Article 16 of the Land Value
Tax Law, reflecting appropriate adjustments for land shape and timing
of the assessment and based on real estate appraisal information
defined by Article 5 of the Law.
Land used for business operations of a certain affiliated company has been
revalued as of March 31, 2002.
32. Subordinated Borrowings
Subordinated borrowings of (Y)735,104 million were included in Borrowed
money.
33. Subordinated Bonds
Subordinated bonds of (Y)1,704,200 million were included in Bonds and
notes.
34. Guaranteed Trusts
Principal amounts of Jointly operated designated money trusts and Loan
trusts of MTFG's trust banking subsidiary, for which repayment of the principal
to the customers is guaranteed, were (Y)961,844 million and (Y)1,281,285
million, respectively.
35. Net Assets per Common Share
Net assets per common share were (Y)532,290.27.
36. Write Down of Investment Securities
Marketable securities other than trading securities are written down when a
decline in the market value below the cost of the securities is substantial and
the valuation differences are recognized as losses, based upon the judgment that
the decline in market value is other than temporary at the current interim
fiscal year-end. A "substantial decline in the market value" is recognized based
on the classification of issuers as follows, pursuant to the internal rules for
self-assessment of asset quality:
Issuers who are legally bankrupt, virtually bankrupt or likely to
become bankrupt: Market value is lower than cost
Issuers who are to be closely watched: Market value is 30% or more
lower than cost
Other issuers: Market value is 50% or more lower than cost
- 22 -
37. Market Value of Securities
Market value and valuation differences of securities were as follows.
Securities below include trading securities, trading commercial paper and
trading short-term corporate bonds classified as Trading assets, negotiable
certificates of deposits classified as Cash and due from banks and investments
in commodity investment trusts classified as Commercial paper and other debt
purchased. The same definition is applied in Notes 38. to 40.
Trading securities
Balance sheet amount (Y)5,976,417 million
Valuation losses included in Income
before income taxes and others (Y)(2,347) million
Marketable debt securities being held to maturity
(in millions of yen)
Balance sheet Market value Differences Gains Losses
amount
Domestic bonds 180,862 187,271 6,408 6,411 2
Government bonds 3,269 3,408 138 138 --
Municipal bonds 116,762 120,589 3,826 3,828 2
Corporate bonds 60,829 63,273 2,444 2,444 --
Other securities 257,265 261,231 3,966 3,967 0
Foreign bonds 74,926 78,892 3,966 3,967 0
Other 182,338 182,338 -- -- --
--------------------------------------------------------------------------------------
Total 438,127 448,502 10,375 10,378 3
Marketable securities available for sale
(in millions of yen)
Cost Balance sheet Valuation Gains Losses
amount differences
Domestic equity securities 3,023,771 3,277,796 254,024 494,697 240,672
Domestic bonds 11,144,886 11,110,315 (34,570) 28,869 63,440
Government bonds 9,354,067 9,315,897 (38,169) 18,519 56,689
Municipal bonds 390,704 393,589 2,885 4,415 1,530
Corporate bonds 1,400,114 1,400,828 713 5,934 5,220
Other securities 7,727,136 7,822,282 95,145 154,136 58,991
Foreign equity securities 16,764 34,512 17,748 18,089 340
Foreign bonds 6,162,404 6,252,956 90,552 121,124 30,571
Other 1,547,968 1,534,812 (13,155) 14,923 28,078
----------------------------------------------------------------------------------------------
Total 21,895,795 22,210,394 314,599 677,703 363,104
Valuation differences, net of (Y)126,965 million of related deferred tax
liabilities, were (Y)187,634 million. Net valuation differences, excluding
minority interest of (Y)2,528 million and adding MTFG's ownership percentage of
affiliates' unrealized gains on securities available for sale of (Y)1,000
million, were (Y)186,106 million which were included in Unrealized gains on
securities available for sale.
- 23 -
38. Securities Available for Sale Sold
Securities available for sale sold during the interim fiscal year were as
follows:
(in millions)
Proceeds from sales Gains Losses
(Y)17,766,183 (Y)144,633 (Y)145,376
39. Securities Not Stated at Market Value
The balance sheet amounts of principal securities not stated at market
value were as follows:
Balance sheet amount
Debt Securities being held to maturity
Foreign bonds (Y)20,442 million
Securities available for sale
Domestic equity securities (Y)170,093 million
Domestic corporate bonds (Y)339,304 million
Foreign bonds (Y)65,148 million
40. Redemption Schedule of Bonds
Redemption schedule of bonds classified as securities available for sale
and being held to maturity was as follows:
(in millions of yen)
Due within Due after 1 year Due after 5 years Due after
1 year through 5 years through 10 years 10 years
Domestic bonds 2,637,158 7,006,505 1,405,163 587,533
Government bonds 2,295,817 5,281,191 1,154,670 587,487
Municipal bonds 82,719 308,358 125,152 --
Corporate bonds 258,620 1,416,955 125,339 46
Other bonds 1,804,545 4,166,856 660,569 949,711
Foreign bonds 1,542,180 3,935,334 532,537 369,950
Other 262,365 231,521 128,031 579,760
--------------------------------------------------------------------------------
Total 4,441,704 11,173,361 2,065,732 1,537,244
41. Money Held in Trust
Classification of Money held in trust was as follows:
Money held in trust for trading purposes
Balance sheet amount (Y)335,712 million
Valuation gains included in Income before income taxes
and others (Y)8,088 million
Other Money held in trust
(in millions)
Cost Balance sheet Valuation Gains Losses
amount differences
(Y)134,190 (Y)134,508 (Y)317 (Y)317 --
Valuation differences, net of (Y)128 million of related deferred tax
liabilities, were (Y)189 million which were included in Unrealized gains on
securities available for sale.
- 24 -
42. Securities Lent/Borrowed
Unsecured securities lent for which borrowers have rights of sale or pledge
were included in Investment securities and the amount was (Y)49,592 million.
With respect to borrowed securities and purchased securities under resale
agreements that are permitted to be sold or pledged, (Y)3,945,324 million were
pledged, (Y)677,937 million were lent and (Y)5,082,471 million were held at hand
at this interim fiscal year end.
43. Loan Commitments
Contracts of overdraft facilities and loan commitment limits are contracts
under which customers are lent to up to the prescribed limits in response to the
customers' application for a loan as long as there is no violation of any
condition in the contracts. The unused amount within the limits relating to
these contracts was (Y)28,811,652 million.
Since many of these commitments expire without being drawn, the unused
amount does not necessarily represent a future cash requirement. Most of these
contracts have conditions that allow MTFG and its consolidated subsidiaries to
refuse the customers' application for a loan or decrease the contract limits
with proper reasons (e.g., changes in financial situation, deterioration in
customers' creditworthiness, etc.). At the inception of contracts, MTFG and its
consolidated subsidiaries obtain real estate, securities, etc. as collateral if
considered to be necessary. Subsequently, MTFG and its consolidated subsidiaries
perform periodic reviews of the customers' business results based on internal
rules, and take necessary measures to reconsider conditions in contracts and/or
require additional collateral and guarantees.
44. Transfer of Substitutional Portion of Pension Obligations
On August 1, 2003, according to the enactment of the Defined Benefit
Pension Plan Law, MTFG's domestic banking subsidiary obtained an approval of
exemption from the substitutional portion of its future pension obligations by
the Minister of Health, Labor and Welfare. MTFG's domestic banking subsidiary
recognized extinguishment of benefit obligation and plan assets as of the date
of approval in accordance with a transitional measurement prescribed in Article
47-2 of the Accounting Committee Report No. 13, "Practical Guidelines for
Accounting for Retirement Benefits (Interim Report)" issued by the JICPA on
September 14, 1999.
As a result, special gains of (Y)26,503 million were recorded in this
interim fiscal year.
The substitutional portion of the plan assets which will be transferred to
the government in the subsequent year measured at the interim fiscal year-end
was (Y)98,002 million.
45. Derivatives Embedded in Hybrid Financial Instruments
The derivatives, which were embedded in hybrid financial instruments and
not required to be accounted separately from the host contracts, had been
accounted for on an accrual basis together with the host contracts. Since the
beginning of the current interim fiscal year, such embedded derivatives have
been measured at market value and their valuation gains (losses) have been
reported in current earnings if they are managed separately from the host
contracts.
Such hybrid financial instruments had been risk adjusted items in the macro
hedge accounting. Since the beginning of the current interim fiscal year, MTFG's
domestic banking subsidiary and trust banking subsidiary have adopted the
standard treatments of the Industry Audit Committee Report No. 24 and,
therefore, valuation gains (losses) on the derivatives which used to be risk
adjusting instruments in the macro hedge accounting are reported in current
earnings. In response to this change, they changed the accounting for the
embedded derivatives, which had been accounted together with the host contracts,
and measured them at market value and reported their valuation gains (losses) in
current earnings if they are managed separately from the host contracts.
As a result, ordinary profit and income before income taxes and others
increased by (Y)7,442 million, respectively.
- 25 -
Notes related to the Consolidated Statement of Operations for the six months
ended September 30, 2003 are as follows:
1. Basis of Presentation
The accompanying Consolidated Statement of Operations 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 application and disclosure requirements of International
Accounting Standards. The Consolidated Statement of Operations 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. The amounts are presented in
millions of yen and are rounded down to the nearest million.
2. Net Income per Common Share
Net income per common share was (Y)47,619.95.
3. Net Income per Common and Common Equivalent Share
Net income per common and common equivalent share was (Y)45,810.42.
4. Trading Profits and Losses
Profits and losses on trading transactions are shown as Trading profits or
Trading losses on a trade date basis.
The amounts of the above profits and losses presented are the sum of (1)
the difference between the valuation gains or losses at the beginning and end of
the current interim fiscal year in the case of securities and monetary claims
purchased, and the difference between the amount of unrealized gains or losses
at the beginning and end of current interim fiscal year in the case of
trading-related financial derivatives, and (2) interest received or paid in cash
during the interim fiscal year.
5. Other Ordinary Income
Other ordinary income included gains on sales of equity securities of
(Y)48,009 million.
6. Other Ordinary Expenses
Other ordinary expenses included losses on sales of equity securities of
(Y)53,429 million, losses on loan charge-offs of (Y)49,840 million and losses on
sales of loans and other claims of (Y)20,471 million.
7. Special Gains
Special gains included reversal of allowance for loan losses of (Y)163,548
million, refund of enterprise taxes by the Tokyo Metropolitan Government plus
accrued interest of (Y)41,958 million and gains on transfer of the
substitutional portion of future pension obligations of (Y)26,503 million.
- 26 -
Note related to the Consolidated Statement of Capital Surplus and Retained
Earnings for the six months ended September 30, 2003 is as follows:
1. Basis of Presentation
The accompanying Consolidated Statement of Capital Surplus and Retained
Earnings 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 application and disclosure
requirements of International Accounting Standards. The Consolidated Statement
of Capital Surplus and Retained Earnings 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. The amounts are presented in millions of yen and are rounded
down to the nearest million.
- 27 -
Notes related to the Consolidated Statement of Cash Flows for the six months
ended September 30, 2003 are as follows:
1. Basis of Presentation
The accompanying Consolidated Statement of Cash Flows 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 application and disclosure requirements of International
Accounting Standards. The Consolidated Statement of Cash Flows 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. The amounts are presented in
millions of yen and are rounded down to the nearest million.
2. Definition of Cash and Cash Equivalents
For the purpose of reporting cash flows, cash and cash equivalents are
defined as those amounts included in Cash and due from banks excluding time
deposits and negotiable certificates of deposits in other banks.
3. Reconciliation to the Cash and Cash Equivalents
The reconciliation of the Cash and due from banks in the Consolidated
Balance Sheet to the Cash and cash equivalents at end of interim fiscal year is
as follows:
(in millions)
Cash and due from banks (Y) 9,912,534
Time deposits and negotiable certificates of deposit
in other banks (3,957,116)
-------------
Cash and cash equivalents at end of interim fiscal year (Y) 5,955,417
=============
- 28 -
Mitsubishi Tokyo Financial Group, Inc., and Subsidiaries
Significant Policies in Preparation of Consolidated Financial Statements
1. Scope of Consolidation
(1) Number of consolidated subsidiaries: 176
Significant companies
The Bank of Tokyo-Mitsubishi, Ltd. The Mitsubishi Trust and Banking
Corporation
(2) Number of non-consolidated subsidiaries: 3
Non-consolidated subsidiaries are excluded from the scope of
consolidation since their assets, ordinary income, and our ownership
percentage of their net income or retained earnings do not have a
material impact on our results of operations or financial condition.
2. Application of the Equity Method
(1) Number of affiliated companies accounted for by the equity method: 31
Significant companies
Diamond Lease Co., Ltd. The Master Trust Bank of Japan, Ltd.
Diamond Computer Service Co., Ltd. M&T Information Technology Co., Ltd.
BOT Lease Co., Ltd. MTBC Bank Deutschland GmbH
(2) Number of non-consolidated subsidiaries and affiliated companies not
accounted for by the equity method: 3
Non-consolidated subsidiaries and affiliated companies not accounted for
by the equity method are excluded from the scope of the equity method
since our ownership percentage of their net income or retained earnings
do not have a material impact on our consolidated financial statements.
(3) Although we own 29.3% of voting rights for Sanwa Tatemono Co., Ltd., we
do not regard it as an affiliated company since we do not have the
ability to exercise significant influence over the company due to its
commencement of corporate rehabilitation proceedings pursuant to the
Corporate Rehabilitation Law in June 1994.
3. Interim Fiscal Year Ends of Consolidated Subsidiaries
(1) Interim fiscal year ends of consolidated subsidiaries are as follows:
April 30 : 2 subsidiaries August 31 : 1 subsidiary
June 30 : 107 subsidiaries September 30 : 66 subsidiaries
(2) Subsidiaries whose interim fiscal year ends are April 30 are
consolidated based on their financial statements ended on July 31. Other
subsidiaries are consolidated based on financial statements for their
respective interim fiscal year ends. Significant transactions occurred
during the intervening periods are reflected in the consolidated
financial statements.
- 29 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Segment Information
-------------------
1. Business segment information
[For the six months ended September 30, 2003] (in millions of yen)
------------------------------------------------------------------------------------------------------------------
Trust
Banking Banking Securities Other Total (Elimination) Consolidated
------------------------------------------------------------------------------------------------------------------
Ordinary income:
(1) Ordinary income from
customers 937,791 262,566 92,013 68,557 1,360,929 -- 1,360,929
(2) Internal ordinary
income among segments 11,140 9,811 6,063 45,841 72,857 (72,857) --
------------------------------------------------------------------------------------------------------------------
Total ordinary income 948,932 272,378 98,077 114,398 1,433,786 (72,857) 1,360,929
------------------------------------------------------------------------------------------------------------------
Ordinary expenses 774,880 206,952 75,610 66,289 1,123,732 (36,235) 1,087,497
------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) 174,051 65,426 22,467 48,108 310,054 (36,621) 273,432
------------------------------------------------------------------------------------------------------------------
Notes:
1. Other primarily includes credit card and leasing businesses.
2. The derivatives, which were embedded in hybrid financial instruments and
not required to be accounted separately from the host contracts, had been
accounted for on an accrual basis together with the host contracts. Since
the beginning of the current interim fiscal year, such embedded derivatives
have been measured at market value and their valuation gains (losses) have
been reported in current earnings if they are managed separately from the
host contracts.
Such hybrid financial instruments had been risk adjusted in the macro hedge
accounting. Since the beginning of the current interim fiscal year, MTFG's
domestic banking subsidiary and trust banking subsidiary have adopted the
standard treatments of the Industry Audit Committee Report No. 24 and,
therefore, valuation gains (losses) on the derivatives which used to be
risk adjusting instruments in the macro hedge accounting are reported in
current earnings. In response to this change, they changed the accounting
for the embedded derivatives, which had been accounted together with the
host contracts, and measured them at market value and reported their
valuation gains (losses) in current earnings if they are managed separately
from the host contracts.
As a result, ordinary profit increased by 7,442 million yen, and its effect
in the Banking segment and the Trust Banking segment was 4,519 million yen
and 2,923 million yen, respectively.
[For the six months ended September 30, 2002] (in millions of yen)
------------------------------------------------------------------------------------------------------------------
Trust
Banking Banking Securities Other Total (Elimination) Consolidated
------------------------------------------------------------------------------------------------------------------
Ordinary income:
(1) Ordinary income from
customers 1,043,048 275,380 40,588 66,394 1,425,412 -- 1,425,412
(2) Internal ordinary
income among segments 13,930 8,206 4,154 33,361 59,653 (59,653) --
------------------------------------------------------------------------------------------------------------------
Total ordinary income 1,056,979 283,587 44,742 99,756 1,485,065 (59,653) 1,425,412
------------------------------------------------------------------------------------------------------------------
Ordinary expenses 1,193,701 324,097 62,932 73,940 1,654,671 (35,958) 1,618,712
------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) (136,721) (40,509) (18,189) 25,815 (169,605) (23,694) (193,300)
------------------------------------------------------------------------------------------------------------------
Note:
1. Other primarily includes credit card and leasing businesses.
[For the year ended March 31, 2003] (in millions of yen)
-------------------------------------------------------------------------------------------------------------------
Trust
Banking Banking Securities Other Total (Elimination) Consolidated
-------------------------------------------------------------------------------------------------------------------
Ordinary income:
(1) Ordinary income from
customers 1,975,522 569,401 86,953 140,650 2,772,528 -- 2,772,528
(2) Internal ordinary
income among segments 33,684 17,048 10,835 41,309 102,877 (102,877) --
-------------------------------------------------------------------------------------------------------------------
Total ordinary income 2,009,207 586,449 97,789 181,959 2,875,405 (102,877) 2,772,528
-------------------------------------------------------------------------------------------------------------------
Ordinary expenses 2,165,525 755,789 131,928 151,444 3,204,687 (71,896) 3,132,790
-------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) (156,318) (169,339) (34,139) 30,515 (329,281) (30,980) (360,262)
-------------------------------------------------------------------------------------------------------------------
Notes:
1. Other primarily includes credit card and leasing businesses.
2. With the implementation of the "Metropolitan ordinance regarding the
imposition of enterprise taxes through external standards taxation on banks
in Tokyo" (Tokyo Metropolitan Ordinance No.145, 2000) ("the metropolitan
ordinance"), enterprise taxes which were hitherto levied on income are now
levied on gross business profit. On October 18, 2000, MTFG's domestic
banking subsidiary and trust banking subsidiary filed a lawsuit with the
Tokyo District Court against the Tokyo metropolitan government and the
Governor of Tokyo seeking to void the metropolitan ordinance. MTFG's
domestic banking subsidiary and trust banking subsidiary won the case
eventually entirely on March 26, 2002 with a decision of the Tokyo District
Court in favor of MTFG's domestic banking subsidiary and trust banking
subsidiary, on the grounds that the metropolitan ordinance was illegal. The
District Court ordered the metropolitan government to return to MTFG's
domestic banking subsidiary and trust banking subsidiary advance tax
payments of 11,741 million yen and also awarded to MTFG's domestic banking
subsidiary and trust banking subsidiary damages of 300 million yen. On
March 29, 2002, the metropolitan government lodged an appeal with the Tokyo
High Court against the decision, and on April 9, 2002, the plaintiff banks
at the first trial, including MTFG's domestic banking subsidiary and trust
banking subsidiary, also lodged an appeal. MTFG's domestic banking
subsidiary and trust banking subsidiary won the second-trial case
eventually on January 30, 2003 with a decision of the Tokyo High Court in
favor of MTFG's domestic banking subsidiary and trust banking subsidiary,
on the grounds that the metropolitan ordinance was illegal. The High Court
ordered the metropolitan government to return to MTFG's domestic banking
subsidiary and trust banking subsidiary advance tax payments of 30,409
million yen. On February 10, 2003, the metropolitan government lodged a
final appeal with the Supreme Court against the decision, and on February
13, 2003 the plaintiff banks at the first trial, including MTFG's domestic
banking subsidiary and trust banking subsidiary also lodged a final appeal.
It is the opinion of MTFG's domestic banking subsidiary and trust banking
subsidiary that the metropolitan ordinance is both unconstitutional and
illegal. MTFG's domestic banking subsidiary and trust banking subsidiary
have asserted this opinion in the courts and the matter is still in
litigation. The fact that during this fiscal year MTFG's domestic banking
subsidiary and trust banking subsidiary have applied the same treatment as
in the previous fiscal year, accounting for enterprise taxes through
external standards taxation on banks in Tokyo in accordance with the
metropolitan ordinance, is because MTFG's domestic banking subsidiary and
trust banking subsidiary have deemed it appropriate at this stage to
continue with the same accounting treatment as before. This accounting
treatment does not constitute in any way an admission on the part of MTFG's
domestic banking subsidiary and trust banking subsidiary either of the
constitutionality or of the legality of the metropolitan ordinance. With
the implementation of the municipal ordinance, enterprise taxes relating to
banks in Tokyo were recorded in Other ordinary expenses in the amount of
19,593 million yen this fiscal year. As a result, there was a respective
increase in Ordinary loss by the same amount as compared with the previous
standards under which enterprise taxes were levied on income, and its
effect in the Banking segment and the Trust Banking segment was 14,960
million yen and 4,633 million yen, respectively.
3. Since the current fiscal year, MTFG has adopted Financial Accounting
Standard No.1 "Accounting Standard for Treasury Stock and Reversal of Legal
Reserves" issued by the Accounting Standards Board of Japan on February 21,
2002. As a result, Ordinary loss decreased by 21,444 million yen, and its
effect in the Banking segment and the Trust Banking segment was an increase
of 15,445 million yen and a decrease of 36,889 million yen, respectively.
- 30 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
2. Geographic segment information
[For the six months ended September 30, 2003] (in millions of yen)
-------------------------------------------------------------------------------------------------------------------------------
North Latin Europe/ Asia/Oceania
Japan America America Mid. East excl. Japan Total (Elimination) Consolidated
-------------------------------------------------------------------------------------------------------------------------------
Ordinary income:
(1) Ordinary income from
customers 933,034 249,995 10,283 117,722 49,893 1,360,929 -- 1,360,929
(2) Internal ordinary
income among segments 33,041 1,780 10,000 21,139 4,760 70,722 (70,722) --
-------------------------------------------------------------------------------------------------------------------------------
Total ordinary income 966,076 251,776 20,283 138,861 54,653 1,431,652 (70,722) 1,360,929
-------------------------------------------------------------------------------------------------------------------------------
Ordinary expenses 807,681 176,443 21,189 107,988 35,976 1,149,280 (61,783) 1,087,497
-------------------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) 158,394 75,333 (906) 30,873 18,676 282,371 (8,938) 273,432
-------------------------------------------------------------------------------------------------------------------------------
Notes:
1. North America includes United States and Canada. Latin America primarily
includes the Caribbean, Panama and Brazil. Europe/Middle East primarily
includes United Kingdom, Germany and Netherlands. Asia/Oceania excluding
Japan primarily includes Hong Kong, Singapore and China.
2. The derivatives, which were embedded in hybrid financial instruments and
not required to be accounted separately from the host contracts, had been
accounted for on an accrual basis together with the host contracts. Since
the beginning of the current interim fiscal year, such embedded derivatives
have been measured at market value and their valuation gains (losses) have
been reported in current earnings if they are managed separately from the
host contracts. Such hybrid financial instruments had been risk adjusted in
the macro hedge accounting. Since the beginning of the current interim
fiscal year, MTFG's domestic banking subsidiary and trust banking
subsidiary have adopted the standard treatments of the Industry Audit
Committee Report No. 24 and, therefore, valuation gains (losses) on the
derivatives which used to be risk adjusting instruments in the macro hedge
accounting are reported in current earnings. In response to this change,
they changed the accounting for the embedded derivatives, which had been
accounted together with the host contracts, and measured them at market
value and reported their valuation gains (losses) in current earnings if
they are managed separately from the host contracts.
As a result, ordinary profit increased by 7,442 million yen, and its effect
in Japan and North America was 7,138 million yen and 304 million yen,
respectively.
[For the six months ended September 30, 2002] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
North Latin Europe/ Asia/Oceania
Japan America America Mid. East excl. Japan Total (Elimination) Consolidated
--------------------------------------------------------------------------------------------------------------------------------
Ordinary income:
(1) Ordinary income from
customers 881,958 290,324 19,688 168,366 65,073 1,425,412 -- 1,425,412
(2) Internal ordinary
income among segments 42,702 15,784 19,024 30,397 14,880 122,789 (122,789) --
--------------------------------------------------------------------------------------------------------------------------------
Total ordinary income 924,661 306,109 38,712 198,764 79,953 1,548,202 (122,789) 1,425,412
--------------------------------------------------------------------------------------------------------------------------------
Ordinary expenses 1,141,668 320,635 41,469 183,929 44,879 1,732,582 (113,869) 1,618,712
--------------------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) (217,006) (14,526) (2,756) 14,835 35,074 (184,380) (8,919) (193,300)
--------------------------------------------------------------------------------------------------------------------------------
Note:
1. North America includes United States and Canada. Latin America primarily
includes the Caribbean, Panama and Brazil. Europe/Middle East primarily
includes United Kingdom, Germany and Netherlands. Asia/Oceania excluding
Japan primarily includes Hong Kong, Singapore and China.
[For the year ended March 31, 2003] (in millions of yen)
-------------------------------------------------------------------------------------------------------------------------------
North Latin Europe/ Asia/Oceania
Japan America America Mid. East excl. Japan Total (Elimination) Consolidated
-------------------------------------------------------------------------------------------------------------------------------
Ordinary income:
(1) Ordinary income from
customers 1,811,995 558,864 36,366 244,205 121,097 2,772,528 -- 2,772,528
(2) Internal ordinary
income among segments 88,140 19,708 30,571 57,966 24,020 220,406 (220,406) --
-------------------------------------------------------------------------------------------------------------------------------
Total ordinary income 1,900,135 578,572 66,937 302,172 145,117 2,992,935 (220,406) 2,772,528
-------------------------------------------------------------------------------------------------------------------------------
Ordinary expenses 2,285,305 575,764 67,687 301,134 98,344 3,328,236 (195,446) 3,132,790
-------------------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) (385,169) 2,808 (750) 1,038 46,772 (335,301) (24,960) (360,262)
-------------------------------------------------------------------------------------------------------------------------------
Notes:
1. North America includes United States and Canada. Latin America primarily
includes the Caribbean, Panama and Brazil. Europe/Middle East primarily
includes United Kingdom, Germany and Netherlands. Asia/Oceania excluding
Japan primarily includes Hong Kong, Singapore and China.
2. With the implementation of the "Metropolitan ordinance regarding the
imposition of enterprise taxes through external standards taxation on banks
in Tokyo" (Tokyo Metropolitan Ordinance No.145, 2000) ("the metropolitan
ordinance"), enterprise taxes which were hitherto levied on income are now
levied on gross business profit. On October 18, 2000, MTFG's domestic
banking subsidiary and trust banking subsidiary filed a lawsuit with the
Tokyo District Court against the Tokyo metropolitan government and the
Governor of Tokyo seeking to void the metropolitan ordinance. MTFG's
domestic banking subsidiary and trust banking subsidiary won the case
eventually entirely on March 26, 2002 with a decision of the Tokyo District
Court in favor of MTFG's domestic banking subsidiary and trust banking
subsidiary, on the grounds that the metropolitan ordinance was illegal. The
District Court ordered the metropolitan government to return to MTFG's
domestic banking subsidiary and trust banking subsidiary advance tax
payments of 11,741 million yen and also awarded to MTFG's domestic banking
subsidiary and trust banking subsidiary damages of 300 million yen. On
March 29, 2002, the metropolitan government lodged an appeal with the Tokyo
High Court against the decision, and on April 9, 2002, the plaintiff banks
at the first trial, including MTFG's domestic banking subsidiary and trust
banking subsidiary, also lodged an appeal. MTFG's domestic banking
subsidiary and trust banking subsidiary won the second-trial case
eventually on January 30, 2003 with a decision of the Tokyo High Court in
favor of MTFG's domestic banking subsidiary and trust banking subsidiary,
on the grounds that the metropolitan ordinance was illegal. The High Court
ordered the metropolitan government to return to MTFG's domestic banking
subsidiary and trust banking subsidiary advance tax payments of 30,409
million yen. On February 10, 2003, the metropolitan government lodged a
final appeal with the Supreme Court against the decision, and on February
13, 2003 the plaintiff banks at the first trial, including MTFG's domestic
banking subsidiary and trust banking subsidiary also lodged a final appeal.
It is the opinion of MTFG's domestic banking subsidiary and trust banking
subsidiary that the metropolitan ordinance is both unconstitutional and
illegal. MTFG's domestic banking subsidiary and trust banking subsidiary
have asserted this opinion in the courts and the matter is still in
litigation. The fact that during this fiscal year MTFG's domestic banking
subsidiary and trust banking subsidiary have applied the same treatment as
in the previous fiscal year, accounting for enterprise taxes through
external standards taxation on banks in Tokyo in accordance with the
metropolitan ordinance, is because MTFG's domestic banking subsidiary and
trust banking subsidiary have deemed it appropriate at this stage to
continue with the same accounting treatment as before. This accounting
treatment does not constitute in any way an admission on the part of MTFG's
domestic banking subsidiary and trust banking subsidiary either of the
constitutionality or of the legality of the metropolitan ordinance. With
the implementation of the municipal ordinance, enterprise taxes relating to
banks in Tokyo were recorded in Other ordinary expenses in the amount of
19,593 million yen this fiscal year. As a result, there was a respective
increase in Ordinary loss in Japan by the same amount as compared with the
previous standards under which enterprise taxes were levied on income.
3. Since the current fiscal year, MTFG has adopted Financial Accounting
Standard No.1 "Accounting Standard for Treasury Stock and Reversal of Legal
Reserves" issued by the Accounting Standards Board of Japan on February 21,
2002. As a result, Ordinary loss in Japan decreased by 21,444 million yen.
- 31 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
3. Ordinary income from overseas operations
(in millions of yen)
---------------------------------------------------------------------
Ordinary income
from overseas
operations as a
Ordinary income Consolidated percentage of
from overseas ordinary consolidated
operations income ordinary income
---------------------------------------------------------------------
For the six months
ended September
30, 2003 427,894 1,360,929 31.4%
---------------------------------------------------------------------
For the six months
ended September
30, 2002 543,453 1,425,412 38.1%
---------------------------------------------------------------------
For the year ended
March 31, 2003 960,533 2,772,528 34.6%
---------------------------------------------------------------------
Note:
1. Ordinary income from overseas operations consists of income from
transactions of the overseas branches of MTFG's domestic banking subsidiary
and trust banking subsidiary, and MTFG's overseas subsidiaries (excluding
internal ordinary income among consolidated companies).
- 32 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Investment securities
---------------------
Following tables include:
Investment securities
Negotiable certificates of deposits in "Cash and due from banks"
Beneficiary certificates of merchandise investment in "Commercial Paper
and other debt purchased".
1. Marketable debt securities being held to maturity
(in millions of yen)
----------------------------------------------------------------------------
As of September 30,2002
-------------------------------------------------------
Balance sheet Market
amount value Differences Gains Losses
----------------------------------------------------------------------------
Domestic bonds 205,147 215,660 10,513 10,513 --
-------------------------------------------------------------------------
Municipal bonds 126,963 133,319 6,356 6,356 --
-------------------------------------------------------------------------
Corporate bonds 78,183 82,341 4,157 4,157 --
----------------------------------------------------------------------------
Foreign bonds 125,389 129,993 4,603 4,683 79
----------------------------------------------------------------------------
Other 299,190 299,190 -- -- --
----------------------------------------------------------------------------
Total 629,727 644,844 15,117 15,196 79
----------------------------------------------------------------------------
2. Marketable securities available for sale
(in millions of yen)
--------------------------------------------------------------------------------------
As of September 30,2002
---------------------------------------------------------
Balance
sheet Valuation
Cost amount differences Gains Losses
--------------------------------------------------------------------------------------
Domestic equity securities 4,191,596 3,969,653 (221,942) 343,679 565,621
--------------------------------------------------------------------------------------
Domestic bonds 11,236,769 11,332,928 96,159 97,420 1,261
--------------------------------------------------------------------------------------
Government bonds 9,449,564 9,522,776 73,212 73,609 397
-----------------------------------------------------------------------------------
Municipal bonds 407,339 417,153 9,813 9,838 25
-----------------------------------------------------------------------------------
Corporate bonds 1,379,865 1,392,998 13,133 13,972 839
-----------------------------------------------------------------------------------
Foreign equity securities 20,828 40,350 19,521 19,969 448
--------------------------------------------------------------------------------------
Foreign bonds 5,764,290 5,936,289 171,998 179,627 7,628
--------------------------------------------------------------------------------------
Other 1,396,530 1,313,387 (83,143) 12,243 95,386
--------------------------------------------------------------------------------------
Total 22,610,015 22,592,608 (17,406) 652,940 670,347
--------------------------------------------------------------------------------------
3. Principal securities not stated at market value
(in millions of yen)
----------------------------------------------------
As of September 30,2002
-----------------------
Balance sheet amount
----------------------------------------------------
Debt securities being held
to maturity Foreign bonds 26,402
----------------------------------------------------
Securities available for
sale
Domestic equity securities 103,204
Domestic municipal bonds 52,549
Domestic corporate bonds 274,322
Foreign equity securities 6,914
Foreign bonds 48,676
----------------------------------------------------
Money held in trust
-------------------
Money held in trust other than trading purpose and being held to maturity
(in millions of yen)
-----------------------------------------------------
As of September 30,2002
-----------------------------------------------------
Balance sheet Valuation
Cost amount differences Gains Losses
-----------------------------------------------------
94,833 94,833 -- -- --
-----------------------------------------------------
Unrealized gains (losses) on securities available for sale
----------------------------------------------------------
The classification of unrealized gains (losses) on securities available for sale
on the consolidated balance sheet is as follows:
(in millions of yen)
-----------------------------------------------------------------
As of September 30,
2002
-----------------------------------------------------------------
Valuation differences (17,406)
-----------------------------------------------------------------
Securities available for sale (17,406)
--------------------------------------------------------------
Deferred tax assets 7,688
-----------------------------------------------------------------
Net valuation differences (9,718)
=================================================================
Minority interest (411)
-----------------------------------------------------------------
MTFG's ownership percentage of affiliates'
unrealized gains on securities available
for sale 608
-----------------------------------------------------------------
Unrealized losses on securities available
for sale (9,521)
-----------------------------------------------------------------
- 33 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Investment securities
---------------------
Following tables include:
Investment securities
Trading securities and negotiable certificates of deposits in "Trading
assets"
Negotiable certificates of deposits in "Cash and due from banks"
Securities and beneficiary certificates of merchandise investment in
"Commercial Paper and other debt purchased".
1. Trading securities
(in millions of yen)
---------------------------------------------
As of March 31,2003
---------------------------------------------
Balance sheet Valuation gains recognized on
amount statement of operations
---------------------------------------------
4,829,854 981
---------------------------------------------
2. Marketable debt securities being held to maturity
(in millions of yen)
------------------------------------------------------------------------------
As of March 31,2003
---------------------------------------------------------
Balance sheet Market
amount value Differences Gains Losses
------------------------------------------------------------------------------
Domestic bonds 192,446 203,873 11,427 11,427 --
---------------------------------------------------------------------------
Municipal bonds 122,238 129,778 7,539 7,539 --
---------------------------------------------------------------------------
Corporate bonds 70,207 74,095 3,887 3,887 --
------------------------------------------------------------------------------
Foreign bonds 65,886 70,419 4,533 4,534 1
------------------------------------------------------------------------------
Other 207,649 207,649 -- -- --
------------------------------------------------------------------------------
Total 465,981 481,942 15,960 15,961 1
------------------------------------------------------------------------------
3. Marketable securities available for sale
(in millions of yen)
--------------------------------------------------------------------------------------
As of March 31,2003
---------------------------------------------------------
Balance
sheet Valuation
Cost amount differences Gains Losses
--------------------------------------------------------------------------------------
Domestic equity securities 3,517,001 3,089,757 (427,244) 191,051 618,296
--------------------------------------------------------------------------------------
Domestic bonds 12,150,041 12,271,912 121,780 124,182 2,311
--------------------------------------------------------------------------------------
Government bonds 10,490,464 10,592,432 101,968 103,523 1,554
-----------------------------------------------------------------------------------
Municipal bonds 431,003 439,162 8,159 8,184 25
-----------------------------------------------------------------------------------
Corporate bonds 1,228,573 1,240,316 11,742 12,474 731
-----------------------------------------------------------------------------------
Foreign equity securities 19,813 34,455 14,642 15,072 430
--------------------------------------------------------------------------------------
Foreign bonds 6,821,736 6,968,748 147,012 158,634 11,621
--------------------------------------------------------------------------------------
Other 1,349,624 1,250,708 (98,916) 17,513 116,429
--------------------------------------------------------------------------------------
Total 23,858,217 23,615,582 (242,635) 506,454 749,089
--------------------------------------------------------------------------------------
4. Securities available for sale sold
(in millions of yen)
--------------------------------
For the year ended March 31,2003
--------------------------------
Proceeds Gains Losses
from sales on sales on sales
--------------------------------
27,610,331 252,510 280,803
--------------------------------
5. Principal securities not stated at market value
(in millions of yen)
--------------------------------------------------------------
As of March 31,2003
---------------------
Balance sheet amount
--------------------------------------------------------------
Debt securities being held to maturity
Foreign bonds 22,193
--------------------------------------------------------------
Securities available for sale
Domestic equity securities 121,170
Domestic corporate bonds 310,530
Foreign bonds 43,877
--------------------------------------------------------------
6. Redemption schedules of securities
(in millions of yen)
--------------------------------------------------------------------
As of March 31,2003
----------------------------------------------
Due after Due after
1 year 5 years
Due within through through Due after
1 year 5 years 10 years 10 years
--------------------------------------------------------------------
Domestic bonds 3,186,171 6,736,050 2,568,077 290,641
-----------------------------------------------------------------
Government bonds 2,785,137 5,188,677 2,329,234 289,383
-----------------------------------------------------------------
Municipal bonds 63,063 378,861 125,528 --
-----------------------------------------------------------------
Corporate bonds 337,970 1,168,511 113,314 1,258
--------------------------------------------------------------------
Foreign bonds 508,719 4,726,113 1,101,419 738,569
--------------------------------------------------------------------
Other 327,808 222,141 68,287 492,003
--------------------------------------------------------------------
Total 4,022,698 11,684,306 3,737,783 1,521,215
--------------------------------------------------------------------
- 34 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Money held in trust
-------------------
1. Money held in trust for trading purpose
(in millions of yen)
----------------------------------------------
As of March 31,2003
----------------------------------------------
Balance sheet Valuation losses recognized on
amount statement of operations
----------------------------------------------
309,800 (9,024)
----------------------------------------------
2. Money held in trust other than trading purpose and being held to maturity
(in millions of yen)
-------------------------------------------------------
As of March 31, 2003
-------------------------------------------------------
Balance sheet Valuation
Cost amount differences Gains Losses
-------------------------------------------------------
105,757 105,757 -- -- --
-------------------------------------------------------
Unrealized gains (losses) on securities available for sale
----------------------------------------------------------
The classification of unrealized gains (losses) on securities available for sale
on the consolidated balance sheet is as follows:
(in millions of yen)
--------------------------------------------------------------------------
As of March 31, 2003
--------------------------------------------------------------------------
Valuation differences (242,635)
-----------------------------------------------------------------------
Securities available for sale (242,635)
--------------------------------------------------------------------------
Deferred tax assets 20,937
--------------------------------------------------------------------------
Net valuation differences (221,697)
==========================================================================
Minority interest (2,200)
--------------------------------------------------------------------------
MTFG's ownership percentage of affiliates'
unrealized gains on securities available for sale 465
--------------------------------------------------------------------------
Unrealized losses on securities available for sale (223,432)
--------------------------------------------------------------------------
- 35 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Notional principal or contract amount, market value and valuation gains (losses)
on derivatives
a. Interest rate-related transactions
(in millions of yen)
--------------------------------------------------------------------------
As of September 30, 2003
------------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
--------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------
Futures 14,574,430 (13,072) (13,087)
-----------------------------------------------------------------------
Options 22,021,680 1,398 851
--------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------
FRAs 4,290,049 (2,216) (2,216)
-----------------------------------------------------------------------
Swaps 227,270,827 139,697 109,450
-----------------------------------------------------------------------
Others 11,926,225 3,336 10,957
--------------------------------------------------------------------------
Total 129,143 105,955
--------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the table above.
b. Foreign exchange-related transactions
(in millions of yen)
-------------------------------------------------------------------------
As of September 30, 2003
--------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
-------------------------------------------------------------------------
Exchange-traded
----------------------------------------------------------------------
Futures 5,736 -- --
-------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------
Swaps 8,807,097 (31,533) (31,533)
----------------------------------------------------------------------
Forward contracts 46,076,528 (66,676) (66,676)
----------------------------------------------------------------------
Options 8,604,469 (4,229) 14,125
-------------------------------------------------------------------------
Total (102,439) (84,084)
-------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the table above.
c. Equity-related transactions
(in millions of yen)
----------------------------------------------------------------------
As of September 30, 2003
--------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
----------------------------------------------------------------------
Exchange-traded
-------------------------------------------------------------------
Futures 69,132 129 129
-------------------------------------------------------------------
Options 18,477 179 91
-------------------------------------------------------------------
Over-the-counter
-------------------------------------------------------------------
Options 58,442 536 241
-------------------------------------------------------------------
Swaps 38 -- --
-------------------------------------------------------------------
Index forwards 1,705 (4) (4)
----------------------------------------------------------------------
Total 840 457
----------------------------------------------------------------------
Note: Valuation gains(losses) are recognized in the consolidated statement of
operations.
- 36 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
d. Bond-related transactions
(in millions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
---------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
-------------------------------------------------------------------------------
Exchange-traded
----------------------------------------------------------------------------
Futures 1,317,678 (3,263) (3,263)
----------------------------------------------------------------------------
Options 172,941 (86) 324
-------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Options 1,485,328 (898) 98
-------------------------------------------------------------------------------
Total (4,248) (2,840)
-------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the table above.
e. Commodity-related transactions
(in millions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
---------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
-------------------------------------------------------------------------------
Exchange-traded
----------------------------------------------------------------------------
Futures 5,957 384 384
----------------------------------------------------------------------------
Options 348 (18) (12)
-------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Swaps 266,091 (173) (173)
----------------------------------------------------------------------------
Options 39,847 1,090 734
-------------------------------------------------------------------------------
Total 1,282 933
-------------------------------------------------------------------------------
Notes:
1. Valuation gains (losses) are recognized in the consolidated statement of
operations.
2. Commodities are primarily related to petroleum.
f. Credit derivatives
(in millions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
---------------------------------------------------
Notional principal
or contract amount Market value Valuation gains
-------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Credit default options 881,871 29,118 29,118
-------------------------------------------------------------------------------
Note: Valuation gains are recognized in the consolidated statement of
operations.
g. Others
(in millions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
---------------------------------------------------
Notional principal
or contract amount Market value Valuation gains
-------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Weather derivatives 490 (19) 20
-------------------------------------------------------------------------------
Note: Valuation gains are recognized in the consolidated statement of
operations.
- 37 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
[Reference]
1. Derivatives qualified for hedge-accounting
(in billions of yen)
---------------------------------------------------------------
As of September 30, 2003
---------------------------------
Notional principal
or contract amount Market value
---------------------------------------------------------------
Interest rate futures 4,268.8 (6.4)
---------------------------------------------------------------
Interest rate swaps 26,448.7 81.5
---------------------------------------------------------------
Currency swaps 4,734.3 96.6
---------------------------------------------------------------
Other interest rate-related
transactions 3.9 0.0
---------------------------------------------------------------
Others 350.7 (0.0)
---------------------------------------------------------------
Total 171.7
---------------------------------------------------------------
Note: Derivatives which are accounted for on an accrual basis based on
"Accounting standard for financial instruments" are not included in the
table above.
Notional principal by the remaining life of the interest rate swaps above
is as follows.
(in billions of yen)
-------------------------------------------------------------------------------------
Due within Due after 1 year Due after 5
1 year through 5 years years Total
-------------------------------------------------------------------------------------
Receive-fix/pay-floater 7,456.0 11,388.1 986.7 19,831.0
-------------------------------------------------------------------------------------
Receive-floater/pay-fix 2,763.3 2,662.7 1,167.2 6,593.3
-------------------------------------------------------------------------------------
Receive-floater/pay-floater 14.3 -- 10.0 24.3
-------------------------------------------------------------------------------------
Total 10,233.8 14,050.8 2,164.0 26,448.7
-------------------------------------------------------------------------------------
2. Deferred gains (losses)
--------------------------------------------------------------------------
As of September 30, 2003
--------------------------------------------
Deferred Deferred Net gains
gains (A) losses (B) (losses) (A)-(B)
--------------------------------------------------------------------------
Interest rate futures 31.5 29.9 1.5
--------------------------------------------------------------------------
Interest rate swaps 448.3 445.2 3.1
--------------------------------------------------------------------------
Currency swaps 41.4 35.8 5.5
--------------------------------------------------------------------------
Other interest rate-related
transactions 3.7 3.5 0.1
--------------------------------------------------------------------------
Others 23.0 25.4 (2.4)
--------------------------------------------------------------------------
Total 548.0 540.1 7.8
--------------------------------------------------------------------------
Note: Deferred gains (losses) attributable to the macro hedge accounting as of
September 30, 2003 are included in the above table.
- 38 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Notional principal or contract amount, market value and valuation gains (losses)
on derivatives
a. Interest rate-related transactions
(in millions of yen)
----------------------------------------------------------------------------
As of September 30, 2002
-----------------------------------------------
Notional
principal or Valuation
contract amount Market value gains (losses)
----------------------------------------------------------------------------
Exchange-traded
-------------------------------------------------------------------------
Futures 8,307,705 (7,042) (7,042)
-------------------------------------------------------------------------
Options 5,088,593 6,389 1,841
----------------------------------------------------------------------------
Over-the-counter
-------------------------------------------------------------------------
FRAs 792,187 (501) (501)
-------------------------------------------------------------------------
Swaps 215,265,731 118,394 118,394
-------------------------------------------------------------------------
Others 12,933,774 5,485 2,698
----------------------------------------------------------------------------
Total 122,725 115,390
----------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the table above.
b. Foreign exchange-related transactions
(in millions of yen)
----------------------------------------------------------------------------
As of September 30, 2002
-----------------------------------------------
Notional
principal Valuation
amount Market value gains (losses)
----------------------------------------------------------------------------
Over-the-counter
-------------------------------------------------------------------------
Swaps 8,784,272 (20,268) (20,268)
-------------------------------------------------------------------------
Forward contracts 81,824 152 152
-------------------------------------------------------------------------
Options 1,353 1 1
----------------------------------------------------------------------------
Total (20,114) (20,114)
----------------------------------------------------------------------------
Notes: 1. Valuation gains (losses) are recognized in the consolidated statement
of operations. Derivatives which qualify for hedge-accounting and/or
which are applicable to notes 2. are not included in the table above.
2. Currency swaps which are accounted for on an accrual basis are not
included in the table above. Notional principal amount, market value
and valuation gains (losses) on currency swaps which are accounted for
on an accrual basis are as follows:
(in millions of yen)
----------------------------------------------------------------------------
As of September 30, 2002
-----------------------------------------------
Notional
principal Valuation
amount Market value losses
----------------------------------------------------------------------------
Swaps 6,223,453 (17,310) (17,310)
----------------------------------------------------------------------------
Other foreign exchange-related transactions such as forward exchange
contracts and currency options, whose valuation gains (losses) have
been recognized in the consolidated statement of operations, are not
included in the table above.
Notional principal or contract amounts of such foreign
exchange-related transactions are as follows:
(in millions of yen)
-----------------------------------------------------------
As of September 30, 2002
-------------------------------------
Notional principal or contract amount
-----------------------------------------------------------
Exchange-traded
--------------------------------------------------------
Futures 3,647
-----------------------------------------------------------
Over-the-counter
--------------------------------------------------------
Forward contracts 64,716,665
--------------------------------------------------------
Options 10,530,635
-----------------------------------------------------------
- 39 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
c. Equity-related transactions
(in millions of yen)
----------------------------------------------------------------------------
As of September 30, 2002
-----------------------------------------------
Notional
principal or Valuation
contract amount Market value gains
----------------------------------------------------------------------------
Exchange-traded
-------------------------------------------------------------------------
Futures 71,586 276 276
-------------------------------------------------------------------------
Options 46,672 (102) 73
----------------------------------------------------------------------------
Over-the-counter
-------------------------------------------------------------------------
Options 167,058 2,718 2,787
-------------------------------------------------------------------------
Swaps 15,381 151 151
----------------------------------------------------------------------------
Total 3,044 3,290
----------------------------------------------------------------------------
Note: Valuation gains are recognized in the consolidated statement of
operations.
d. Bond-related transactions
(in millions of yen)
----------------------------------------------------------------------------
As of September 30, 2002
-----------------------------------------------
Notional
principal or Valuation
contract amount Market value gains (losses)
----------------------------------------------------------------------------
Exchange-traded
-------------------------------------------------------------------------
Futures 2,239,098 273 273
-------------------------------------------------------------------------
Options 320,023 (509) (78)
----------------------------------------------------------------------------
Over-the-counter
-------------------------------------------------------------------------
Options 724,700 (1,009) (1,117)
----------------------------------------------------------------------------
Total (1,246) (922)
----------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the table above.
e. Commodity-related transactions
(in millions of yen)
----------------------------------------------------------------------------
As of September 30, 2002
-----------------------------------------------
Notional
principal or Valuation
contract amount Market value gains (losses)
----------------------------------------------------------------------------
Exchange-traded
-------------------------------------------------------------------------
Futures 4,104 211 211
-------------------------------------------------------------------------
Options 1,294 (60) (19)
----------------------------------------------------------------------------
Over-the-counter
-------------------------------------------------------------------------
Swaps 275,753 (6,298) (6,298)
-------------------------------------------------------------------------
Options 77,311 1,998 853
----------------------------------------------------------------------------
Total (4,148) (5,253)
----------------------------------------------------------------------------
Notes: 1. Valuation gains (losses) are recognized in the consolidated statement
of operations.
2. Commodities are primarily related to petroleum.
f. Credit derivatives
(in millions of yen)
----------------------------------------------------------------------------
As of September 30, 2002
-----------------------------------------------
Notional
principal or Valuation
contract amount Market value gains (losses)
----------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Credit default
options 998,695 48,917 48,917
-------------------------------------------------------------------------
Others 97,952 (17,164) (17,164)
----------------------------------------------------------------------------
Total 31,752 31,752
----------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement
of operations.
g. Others
(in millions of yen)
----------------------------------------------------------------------------
As of September 30, 2002
-----------------------------------------------
Notional
principal or Valuation
contract amount Market value losses
----------------------------------------------------------------------------
Over-the-counter
-------------------------------------------------------------------------
Weather derivatives 393 (24) (8)
----------------------------------------------------------------------------
Note: Valuation losses are recognized in the consolidated statement of
operations.
- 40 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Derivatives qualified for hedge-accounting
(in billions of yen)
------------------------------------------------------------------------------------------------------------
As of September 30, 2002
-------------------------------------------------------------------------------
Notional Deferred Net gains
principal or Deferred gains losses (losses)
contract amount Market value (A) (B) (A)-(B)
------------------------------------------------------------------------------------------------------------
Interest rate futures 12,745.2 14.2 79.7 63.5 16.2
------------------------------------------------------------------------------------------------------------
Interest rate swaps 60,081.9 235.6 645.5 536.3 109.1
------------------------------------------------------------------------------------------------------------
Other interest rate-related
transactions 30,328.2 (2.9) 1.4 0.9 0.5
------------------------------------------------------------------------------------------------------------
Other 1,285.9 (0.8) 21.2 26.1 (4.9)
------------------------------------------------------------------------------------------------------------
Total 246.1 748.0 627.0 120.9
------------------------------------------------------------------------------------------------------------
Notes 1. Derivatives which are accounted for on an accrual basis based on
"Accounting standard for financial instruments" are not included in
the table above.
2. The transactions in the table above are reported on a mark-to-market
basis on the consolidated balance sheet. The valuation differences
which do not correspond to the income/ expenses accruing on hedged
items are deferred as assets/liabilities.
Notional principal by the remaining life of the interest rate swaps above
is as follows.
(in billions of yen)
--------------------------------------------------------------------------------------------
Due after 1
Due within year through Due after
1 year 5 years 5 year Total
--------------------------------------------------------------------------------------------
Receive-fix/pay-floater 17,805.2 18,344.5 1,696.8 37,846.7
--------------------------------------------------------------------------------------------
Receive-floater/pay-fix 8,362.8 10,846.1 1,561.9 20,770.9
--------------------------------------------------------------------------------------------
Receive-floater/pay-floater 249.3 1,169.3 45.5 1,464.2
--------------------------------------------------------------------------------------------
Total 26,417.5 30,360.0 3,304.3 60,081.9
--------------------------------------------------------------------------------------------
- 41 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Notional principal or contract amount , market value and valuation gains
(losses) on derivatives
a. Interest rate-related transactions
(in millions of yen)
--------------------------------------------------------------------------------------------------------------------
As of March 31, 2003
------------------------------------------------------------------------
Notional
principal with
or contract maturity Valuation
amount of over 1 year Market value gains (losses)
--------------------------------------------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------------------------------------------
sell 4,979,785 235,364 (37,589) (37,589)
Futures ---------------------------------------------------------------------------------------
buy 6,782,908 660,290 27,458 27,458
-----------------------------------------------------------------------------------------------------------------
sell 16,690,400 -- (17,299) (10,658)
Options ---------------------------------------------------------------------------------------
buy 22,234,614 8,124 35,101 21,088
--------------------------------------------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------------------------------------------
sell 702,374 452 973 973
FRAs ---------------------------------------------------------------------------------------
buy 799,281 42,336 (2,649) (2,649)
-----------------------------------------------------------------------------------------------------------------
receive-fix/pay-floater 105,883,942 81,131,283 4,109,124 4,109,124
---------------------------------------------------------------------------------------
receive-floater/pay-fix 104,900,874 79,166,025 (3,989,686) (3,989,686)
Swaps ---------------------------------------------------------------------------------------
receive-floater/
pay-floater 5,791,662 4,209,716 (8,915) (8,915)
---------------------------------------------------------------------------------------
receive-fix/pay-fix 194,856 100,767 (4,233) (4,233)
--------------------------------------------------------------------------------------------------------------------
sell 7,270,211 4,439,813 (98,797) (64,203)
Others ---------------------------------------------------------------------------------------
buy 5,831,717 3,499,145 102,466 68,460
--------------------------------------------------------------------------------------------------------------------
Total 115,954 109,168
--------------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains (losses) are recognized in the consolidated statement
of operations. Derivatives which qualify for hedge-accounting are not
included in the above table.
2. Market values of exchange-traded transactions are based on closing
prices on the Tokyo International Financial Future Exchange, etc.
Market values of over-the-counter transactions are based on discounted
cash flow method, option pricing models, etc.
b. Foreign exchange-related transactions
(in millions of yen)
--------------------------------------------------------------------------------------------------------------------
As of March 31, 2003
--------------------------------------------------------------
Notional
principal with
or contract maturity Valuation
amount of over 1 year Market value gains (losses)
--------------------------------------------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------------------------------------------
Swaps 9,539,280 6,189,546 (109,996) (109,996)
-----------------------------------------------------------------------------------------------------------------
Forward sell 23,912 -- (523) (523)
---------------------------------------------------------------------------------------
contracts buy 16,662 -- 788 788
--------------------------------------------------------------------------------------------------------------
sell 883 -- (6) 6
Options ---------------------------------------------------------------------------------------
buy 883 -- 6 (3)
--------------------------------------------------------------------------------------------------------------------
Total (109,731) (109,729)
--------------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains (losses) are recognized in the consolidated statement
of operations. Derivatives which qualify for hedge-accounting and/or
which are applicable to note 3. are not included in the above table.
2. Market values are based on discounted cash flow method, option pricing
models, etc.
3. Currency swaps which are accounted for by an accrual basis are not
included in the above table. Notional principal amount, market value
and valuation gains of currency swaps which are accounted for by an
accrual basis are as follows:
(in millions of yen)
----------------------------------------------------------------------------
As of March 31, 2003
----------------------------------------------------------------------------
Notional
principal Valuation
amount Market value losses
----------------------------------------------------------------------------
Swaps 5,800,174 (47,725) (47,725)
----------------------------------------------------------------------------
Other foreign exchange-related transactions such as forward exchange
contracts and currency options, which valuation gains (losses) had
been recognized in the consolidated statement of operations,are not
included in the above table.
Notional principal or contract amounts of those foreign
exchange-related transactions are as follows:
(in millions of yen)
----------------------------------------------------------------------------
As of March
31, 2003
--------------
Notional
principal or
contract
amount
----------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------
sell 564
Futures ------------------------------
buy 2,985
------------------------------
Over-the-counter
-----------------------------------------------
Forward sell 27,811,969
------------------------------
contracts buy 30,148,731
-----------------------------------------------
sell 4,991,663
Options ------------------------------
buy 4,705,518
-----------------------------------------------
- 42 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
c. Equity-related transactions
(in millions of yen)
--------------------------------------------------------------------------------------------------------------------
As of March 31, 2003
--------------------------------------------------------------
Notional
principal with
or contract maturity Valuation
amount of over 1 year Market value gains (losses)
--------------------------------------------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------------------------------------------
sell 96,698 -- 1,560 1,560
Futures ---------------------------------------------------------------------------------------
buy 82 -- (0) (0)
-----------------------------------------------------------------------------------------------------------------
sell 19,693 -- (247) 38
Options ---------------------------------------------------------------------------------------
buy 11,450 -- 1,508 72
--------------------------------------------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------------------------------------------
sell 49,054 25,657 (1,980) (1,185)
Options ---------------------------------------------------------------------------------------
buy 69,266 39,394 2,455 1,825
-----------------------------------------------------------------------------------------------------------------
receive-index swaps 38 38 -- --
Swaps ---------------------------------------------------------------------------------------
pay-index swaps -- -- -- --
-----------------------------------------------------------------------------------------------------------------
sell 260 -- 7 7
Index ---------------------------------------------------------------------------------------
forwards buy 1,007 -- (57) (57)
--------------------------------------------------------------------------------------------------------------------
Total 3,246 2,261
--------------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains (losses) are recognized in the consolidated statement
of operations.
2. Market values of exchange-traded transactions are based on closing
prices on the Tokyo Stock Exchange, etc. Market values of
over-the-counter transactions are based on discounted cash flow
method, option pricing models, etc.
d. Bond-related transactions
(in millions of yen)
--------------------------------------------------------------------------------------------------------------------
As of March 31, 2003
--------------------------------------------------------------
Notional
principal with
or contract maturity Valuation
amount of over 1 year Market value gains (losses)
--------------------------------------------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------------------------------------------
sell 539,459 27,604 (1,052) (1,052)
Futures ---------------------------------------------------------------------------------------
buy 551,546 22,762 1,025 1,025
-----------------------------------------------------------------------------------------------------------------
sell 88,630 37,431 (139) 260
Options ---------------------------------------------------------------------------------------
buy 202,912 37,431 276 (300)
--------------------------------------------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------------------------------------------
sell 487,927 -- (3,661) (1,187)
Options ---------------------------------------------------------------------------------------
buy 310,284 -- 691 (116)
--------------------------------------------------------------------------------------------------------------------
Total (2,859) (1,370)
--------------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains (losses) are recognized in the consolidated statement
of operations. Derivatives which qualify for hedge-accounting are not
included in the above table.
2. Market values of exchange-traded transactions are based on closing
prices on the Tokyo Stock Exchange, etc. Market values of
over-the-counter transactions are based on option pricing models, etc.
e. Commodity-related transactions
(in millions of yen)
--------------------------------------------------------------------------------------------------------------------
As of March 31, 2003
--------------------------------------------------------------
Notional
principal with
or contract maturity Valuation
amount of over 1 year Market value gains (losses)
--------------------------------------------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------------------------------------------
sell 1,123 -- (41) (41)
Futures ---------------------------------------------------------------------------------------
buy 3,491 3,224 159 159
--------------------------------------------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------------------------------------------
receive-index swaps 138,709 71,273 (14,903) (14,903)
Swaps ---------------------------------------------------------------------------------------
pay-index swaps 123,008 45,895 14,654 14,654
--------------------------------------------------------------------------------------------------------------
sell 28,774 8,192 (1,881) (505)
Options ---------------------------------------------------------------------------------------
buy 33,528 7,546 3,903 1,999
--------------------------------------------------------------------------------------------------------------------
Total 1,891 1,362
--------------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains (losses) are recognized in the consolidated statement
of operations.
2. Market values of exchange-traded transactions are based on closing
prices on the International Petroleum Exchange, etc. Market values of
over-the-counter transactions are based on the price of the
commodities, contract terms, and other factors comprising the contract
of transactions.
3. Commodities are mainly related to petroleum.
- 43 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
f. Credit derivatives
(in millions of yen)
--------------------------------------------------------------------------------------------------------------------
As of March 31, 2003
--------------------------------------------------------------
Notional
principal with
or contract maturity Valuation
amount of over 1 year Market value gains
--------------------------------------------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------------------------------------------
sell 342,536 275,427 29,452 29,452
Credit default ---------------------------------------------------------------------------------------
options buy 489,391 334,624 648 648
-----------------------------------------------------------------------------------------------------------------
sell 3,227 -- 286 286
Others ---------------------------------------------------------------------------------------
buy -- -- -- --
--------------------------------------------------------------------------------------------------------------------
Total 30,386 30,386
--------------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains are recognized in the consolidated statement of
operations.
2. Market values are based on discounted cash flow method, option pricing
models, etc.
3. In the above table, "sell" indicates credit risks assumed, and "buy"
indicates credit risks transferred.
g. Others
(in millions of yen)
--------------------------------------------------------------------------------------------------------------------
As of March 31, 2003
--------------------------------------------------------------
Notional
principal with
or contract maturity Valuation
amount of over 1 year Market value gains
--------------------------------------------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------------------------------------------
Weather sell 215 -- (8) 26
---------------------------------------------------------------------------------------
derivatives buy -- -- -- --
--------------------------------------------------------------------------------------------------------------------
Total (8) 26
--------------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains are recognized in the consolidated statement of
operations.
2. Market values are based on option pricing models, etc.
[Reference]
Derivatives qualified for hedge-accounting
(in billions of yen)
------------------------------------------------------------------------------------------------------------
As of March 31, 2003
-------------------------------------------------------------------------------
Notional Deferred Net gains
principal or Deferred gains losses (losses)
contract amount Market value (A) (B) (A)-(B)
------------------------------------------------------------------------------------------------------------
Interest rate futures 1,625.4 4.3 58.3 42.4 15.8
------------------------------------------------------------------------------------------------------------
Interest rate swaps 42,409.9 206.0 669.6 570.6 98.9
------------------------------------------------------------------------------------------------------------
Other interest rate-related
transactions 291.7 (0.2) 0.7 0.6 0.1
------------------------------------------------------------------------------------------------------------
Other 662.2 (3.3) 24.8 31.1 (6.2)
------------------------------------------------------------------------------------------------------------
Total 206.8 753.5 644.9 108.6
------------------------------------------------------------------------------------------------------------
Notes:
1. Derivatives which are accounted for on an accrual basis based on
"Accounting standard for financial instruments" are not included in
the above table.
2. The transactions in the table above are reported on a mark-to-market
basis on the consolidated balance sheet. The valuation differences
which do not correspond to the income/ expenses accruing on hedged
items are deferred assets/liabilities.
Notional principal by the remaining life of the interest rate swaps above is as
follows.
(in billions of yen)
--------------------------------------------------------------------------------------------
As of March 31, 2003
---------------------------------------------------------------
Due after 1
Due within year through Due after
1 year 5 years 5 year Total
--------------------------------------------------------------------------------------------
Receive-fix/pay-floater 12,411.5 14,407.5 1,178.1 27,997.2
--------------------------------------------------------------------------------------------
Receive-floater/pay-fix 5,624.2 7,180.3 833.0 13,637.6
--------------------------------------------------------------------------------------------
Receive-floater/pay-floater 306.2 414.8 53.8 774.9
--------------------------------------------------------------------------------------------
Total 18,342.0 22,002.8 2,065.0 42,409.9
--------------------------------------------------------------------------------------------
- 44 -
Interim Non-Consolidated Summary Report
[under Japanese GAAP]
for the Fiscal Year Ending March 31, 2004
Date: November 25, 2003
Company name (code number): Mitsubishi Tokyo Financial Group,
Inc. (8306)
(URL http://www.mtfg.co.jp)
Stock exchange listings: Tokyo, Osaka, New York, London
Headquarters: Tokyo
Representative: Shigemitsu Miki, President & CEO
For inquiry: Katsuhiko Ishizuka, Chief Manager -
Financial Policy Division
(Phone) +81-3-3240-8211
Date of resolution of Board of
Directors with respect to the interim
non-consolidated financial statements: November 25, 2003
Interim dividends policy: Yes
Unit share system: No
1. Non-consolidated financial data for the six months ended September 30, 2003
(1) Operating results
(in millions of yen except per
share data and percentages)
---------------------------------------------------------------
For the
year
For the six months ended
ended September 30, March 31,
---------------------------------------------------------------
2003 2002 2003
---------------------------------------------------------------
Operating income 42,493 24,135 27,232
Change from the previous year 76.1% 525.6%
Operating profit 40,429 22,407 23,991
Change from the previous year 80.4% --
Ordinary profit 40,269 22,320 22,415
Change from the previous year 80.4% --
Net income 40,304 22,053 23,389
Change from the previous year 82.8% --
Net income per common share 5,828.98 3,115.04 2,610.44
Notes:
1. Average number of shares outstanding:
For the six months ended
September 30, 2003: (common stock) 6,260,288 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 89,614 shares
For the six months ended
September 30, 2002: (common stock) 5,741,887 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
For the year ended March 31, 2003: (common stock) 5,766,886 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
2. Changes in accounting policy: No
- 45 -
(2) Payment of dividends
(in yen)
-------------------------------------------------------------------------------------------------------------
For the six months ended September 30, For the year ended March 31,
----------------------------------------------------------------------------------------
2003 2002 2003
----------------------------------------------------------------------------------------
Preferred Preferred Preferred Preferred Preferred Preferred
Common stock- stock- Common stock- stock- Common stock- stock-
stock class 1 class 2 stock class 1 class 2 stock class 1 class 2
-------------------------------------------------------------------------------------------------------------
Interim
dividends per share 0 41,250 8,100 0 41,250 8,100 -- -- --
-------------------------------------------------------------------------------------------------------------
Total dividends per
share paid for the
fiscal year -- -- -- -- -- -- 4,000 82,500 16,200
-------------------------------------------------------------------------------------------------------------
(3) Financial condition
(in millions of yen except per share data and percentages)
------------------------------------------------------------------------------
As of
As of September 30, March 31,
----------------------------------------
2003 2002 2003
----------------------------------------
Total assets 4,284,607 4,281,610 4,264,085
------------------------------------------------------------------------------
Shareholders' equity 4,262,486 4,031,618 4,251,306
------------------------------------------------------------------------------
Shareholders' equity as a percentage
of total liabilities and
shareholders' equity 99.5% 94.2% 99.7%
------------------------------------------------------------------------------
Shareholders' equity per
common share 613,905.15 624,079.75 609,704.98
------------------------------------------------------------------------------
Notes:
1. Number of shares outstanding as of:
September 30, 2003: (common stock) 6,356,150 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 56,200 shares
September 30, 2002: (common stock) 5,741,655 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
March 31, 2003: (common stock) 6,230,506 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
2. Number of treasury stocks outstanding as of:
September 30, 2003: 1,711 shares
September 30, 2002: 811 shares
March 31, 2003: 1,655 shares
2. Earning projections for the fiscal year ending March 31, 2004
(in millions of yen)
---------------------------------------------
Operating income Ordinary profit Net income
---------------------------------------------
69,000 64,000 64,000
---------------------------------------------
(in yen)
---------------------------------------------------------------------------
For the six months
ending For the year ending
March 31, 2004 March 31, 2004
---------------------------------------------------------------------------
Dividends
per share: Common stock 4,000 4,000
Preferred stock-class 1 41,250 82,500
Preferred stock-class 2 8,100 16,200
---------------------------------------------------------------------------
Projected net income per common share for the year ending
March 31, 2004 (yen): 8,869.21
- 46 -
(Reference)
Formulas for computing ratios for the six months ended September 30, 2003 are as
follows.
Net income per common share
Net income - Total dividends on preferred stock
----------------------------------------------------------------------------
Average number of common stock during the period *
Shareholders' equity per common share
Shareholders' equity at end of period - Deduction from shareholders' equity**
-----------------------------------------------------------------------------
Number of common stock at end of period *
Formula for computing projected earning ratio for the fiscal year ending March
31, 2004 is as follows.
Projected net income per common share
Projected net income - Projected total dividends on preferred stock
---------------------------------------------------------------------------
Number of common stock at end of period *
* excluding treasury stock
** number of preferred stock at end of period x issue price + total
dividends on preferred stock
--------------------------------------------------------------------------------
This financial summary report and the accompanying financial highlights contain
forward-looking statements and other forward-looking information relating to the
company (the "forward-looking statements"). The forward-looking statements are
not historical facts and include, reflect or are otherwise based upon, among
other things, the company's current estimations, projections, views, policies,
business strategies, targets, expectations, assumptions and evaluation with
respect to general economic conditions, the results of operations, the financial
condition, the company's management in general and other future events.
Accordingly, they are inherently susceptible to uncertainties, risks and changes
in circumstances and are not guarantees of future performance.
Some forward-looking statements represent targets that the company's management
will strive to achieve through the successful implementation of the company's
business strategies. The company may not be successful in implementing its
business strategy, and actual results may differ materially, for a wide range of
possible reasons. Other forward-looking statements reflect the assumptions and
estimations upon which the calculation of deferred tax assets has been based and
are themselves subject to the full range of uncertainties, risks and changes in
circumstances outlined above.
In light of the many risks, uncertainties and possible changes, you are advised
not to put undue reliance on the forward-looking statements. The company is
under no obligation - and expressly disclaims any obligation - to update or
alter the forward-looking statements, except as may be required by any
applicable laws and regulations or stock exchange rules.
For detailed information relating to uncertainties, risks and changes regarding
the forward-looking statements, please see the company's latest annual report
and other disclosures.
--------------------------------------------------------------------------------
- 47 -
Mitsubishi Tokyo Financial Group, Inc.
Non-Consolidated Balance Sheets
=====================================================================================================================
As of September 30, As of March 31,
(in millions of yen) 2002 2003 2003
=====================================================================================================================
Assets:
Current assets:
Cash and bank deposits 26,656 41,721 34,360
Convertible bonds due from
subsidiary 245,123 -- --
Accounts receivable -- 29,844 15,544
Other 6,962 400 1,527
Total current assets 278,743 6.5 % 71,966 1.7 % 51,432 1.2 %
Fixed assets:
Premises and equipment 407 339 367
Intangible assets 383 529 372
Investments and other assets 4,000,873 4,210,912 4,210,881
Investments in
subsidiaries 4,000,070 4,210,347 4,210,347
Other 802 564 533
Total fixed assets 4,001,663 93.5 % 4,211,781 98.3 % 4,211,622 98.8 %
Deferred charges 1,203 0.0 % 859 0.0 % 1,031 0.0 %
------------------------------------- ------------------------------------------------------------------------------
Total assets 4,281,610 100.0 % 4,284,607 100.0 % 4,264,085 100.0 %
------------------------------------- ------------------------------------------------------------------------------
Liabilities:
Current liabilities:
Accounts payable -- 21,873 12,241
Current portion of
convertible bonds 245,123 -- --
Reserve 77 73 78
Other 2,767 174 459
Total current liabilities 247,969 5.8 % 22,121 0.5 % 12,779 0.3 %
Long-term liabilities:
Other 2,022 -- --
Total long-term liabilities 2,022 0.0 % -- -- % -- -- %
------------------------------------- ------------------------------------------------------------------------------
Total liabilities 249,991 5.8 % 22,121 0.5 % 12,779 0.3 %
------------------------------------- ------------------------------------------------------------------------------
Shareholders' equity:
Capital stock 1,146,500 26.8 % 1,258,052 29.3 % 1,258,052 29.5 %
Capital surplus:
Legal capital surplus 2,238,692 2,350,244 2,350,244
Other capital surplus 600,000 599,960 600,000
Total capital surplus 2,838,692 66.3 % 2,950,205 68.9 % 2,950,244 69.2 %
Retained earnings:
Unappropriated 47,137 55,519 44,305
Total retained earnings 47,137 1.1 55,519 1.3 % 44,305 1.0 %
Less treasury stock (711) (0.0)% (1,291) (0.0)% (1,296) (0.0)%
------------------------------------- ------------------------------------------------------------------------------
Total shareholders' equity 4,031,618 94.2 % 4,262,486 99.5 % 4,251,306 99.7 %
------------------------------------- ------------------------------------------------------------------------------
Total liabilities and shareholders'
equity 4,281,610 100.0 % 4,284,607 100.0 % 4,264,085 100.0 %
===================================== ==============================================================================
See Notes to Non-Consolidated Financial Statements.
- 48 -
Mitsubishi Tokyo Financial Group, Inc.
Non-Consolidated Statements of Income
================================================================================================================
For the six months ended September 30, For the year ended
(in millions of yen) 2002 2003 March 31, 2003
================================================================================================================
Operating income 24,135 100.0 % 42,493 100.0 % 27,232 100.0 %
Operating expenses 1,727 7.2 % 2,064 4.9 % 3,240 11.9 %
Operating profit 22,407 92.8 % 40,429 95.1 % 23,991 88.1 %
------------------------------------- -------------------------------------------------------------------------
Non-operating income 3,592 14.8 % 12 0.0 % 4,861 17.8 %
Non-operating expenses 3,679 15.2 % 172 0.4 % 6,437 23.6 %
Ordinary profit 22,320 92.4 % 40,269 94.7 % 22,415 82.3 %
------------------------------------- -------------------------------------------------------------------------
Special losses 269 1.1 % -- -- % 272 1.0 %
------------------------------------- -------------------------------------------------------------------------
Income before income taxes 22,050 91.3 % 40,269 94.7 % 22,143 81.3 %
------------------------------------- -------------------------------------------------------------------------
Income taxes-current 0 (75) 859
Income taxes-deferred (4) 40 (2,105)
Total income taxes (3) (0.0)% (35) (0.1)% (1,245) (4.6)%
------------------------------------- -------------------------------------------------------------------------
Net income 22,053 91.3 % 40,304 94.8 % 23,389 85.9 %
------------------------------------- -------------------------------------------------------------------------
Unappropriated retained earnings
brought forward 25,083 15,215 25,083
Interim cash dividends -- -- 4,167
Unappropriated retained earnings at
end of (interim) fiscal year 47,137 55,519 44,305
===================================== =========================================================================
See Notes to Non-Consolidated Financial Statements.
- 49 -
Notes to the Non-Consolidated Financial Statements for the six months ended
September 30, 2003
The accompanying Non-Consolidated Financial Statements are compiled as
required by the Securities and Exchange Law of Japan 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
Financial Statements are not intended to present the financial position and 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. The amounts are presented in millions of yen and
are rounded down to the nearest million.
Summary of significant accounting policies
1. Investments
Investments in subsidiaries are stated at cost determined by the
moving-average method.
2. Depreciation for fixed assets
Depreciation for premises and equipment is computed using the
declining-balance method based on the following estimated useful
lives. The range of estimated useful lives is principally as follows:
Leasehold improvements 3 years to 50 years
Equipment and furniture 3 years to 20 years
Amortization for intangible assets is computed by the straight-line
method over estimated useful lives. Costs of computer software
developed or obtained for internal use are deferred and amortized
using the straight-line method over the estimated useful lives of 5
years.
3. Reserve
A reserve for employees' bonuses is provided for the payment of
employees' bonuses based on estimated amounts of the future payments
attributed to the current term.
4. Consumption taxes
The National Consumption Tax and the Local Consumption Tax are
excluded from transaction amounts.
5. Consolidated Corporate-tax System
MTFG has adopted consolidated corporate-tax system.
Change of presentation
"Accounts receivable" and "Accounts payable", included in "Other" of
current assets and "Other" of current liabilities, respectively, in the previous
interim fiscal year, are reported separately in the current interim fiscal year.
"Accounts receivable" included in "Other" of current assets and "Accounts
payable" included in "Other" of current liabilities at the previous interim
fiscal year-end were (Y)1 million and (Y)130 million, respectively.
A note related to the Non-Consolidated Balance Sheet as of September 30, 2003 is
as follows:
Accumulated depreciation on premises and equipment (Y)179 million
A note related to the Non-Consolidated Statement of Income for the six months
ended September 30, 2003 is as follows:
Depreciation expense for premises and equipment (Y)34 million
Amortization expense for intangible assets (Y)58 million
A note related to securities is as follows:
Fair value is not readily determinable for Investments in subsidiaries.
- 50 -
MTFG
-------------------------------------------
Selected Interim Financial Information
under Japanese GAAP
For the Fiscal Year Ending March 31, 2004
-------------------------------------------
Mitsubishi Tokyo Financial Group, Inc.
Mitsubishi Tokyo Financial Group, Inc.
[Contents]
1 Interim Consolidated Financial Highlights under Japanese GAAP for the
Fiscal Year Ending March 31, 2004
1. Financial Results [Consolidated] 1
2. Valuation Differences on Securities [Consolidated], [Trust] 2
3. Risk-Adjusted Capital Ratio Based on
the Standards of the BIS [Consolidated] 3
4. Return on Equity [Consolidated] 3
2 Loan Portfolio and Other
1. Risk-Monitored Loans [Consolidated], [Trust] 4
[Consolidated and Trust]
2. Classification of Risk-Monitored Loans [Consolidated], [Trust] 5
3. Allowance for Loan Losses [Consolidated], [Trust] 6
4. Coverage Ratio against Risk-Monitored
Loans [Consolidated] 6
5. Disclosed Claims under the Financial
Reconstruction Law (the "FRL") [Total of the 2 Banks*] 7
6. Status of Secured Coverage on
Disclosed Claims under the FRL [Total of the 2 Banks*] 7
7. Progress in the Disposal of Problem
Assets [Total of the 2 Banks*] 8
8. Classification of Loans by Type of
Industry [Total of the 2 Banks*] 11
[Trust]
9. Foreign Loans [Total of the 2 Banks*] 13
10. Loans and Deposits [Total of the 2 Banks*] 14
11. Domestic Deposits [Total of the 2 Banks*] 14
12. Number of Employees [Total of the 2 Banks*] 14
13. Number of Offices [Total of the 2 Banks*] 14
14. Status of Deferred Tax Assets [Total of the 2 Banks*] 16
15. Employees' Retirement Benefits [Consolidated] 18
16. Earning Projections for the Fiscal
Year Ending March 31, 2004 [Consolidated] 19
[Non-Consolidated]
Note: * "Total of the 2 Banks" stands for the aggregated non-consolidated
figures of The Bank of Tokyo-Mitsubishi, Ltd. and The Mitsubishi Trust
and Banking Corporation.
Mitsubishi Tokyo Financial Group, Inc.
1 Interim Consolidated Financial Highlights under Japanese GAAP
for the Fiscal Year Ending March 31, 2004
1. Financial Results
(in millions of yen)
==================================================================================================
Six months ended Increase/ Six months ended
September 30, (Decrease) September 30,
2003 (A) (A) - (B) 2002 (B)
==================================================================================================
Gross profits 898,929 52,884 846,044
--------------------------------------------------------------------------------------------------
Net interest income 533,116 10,900 522,215
--------------------------------------------------------------------------------------------------
Trust fees 36,452 (11,504) 47,957
--------------------------------------------------------------------------------------------------
Credit costs for trust accounts (1) (8,432) (3,697) (4,735)
--------------------------------------------------------------------------------------------------
Net fees and commissions 195,801 27,585 168,215
--------------------------------------------------------------------------------------------------
Net trading profits 72,040 28,306 43,734
--------------------------------------------------------------------------------------------------
Net other business income 61,518 (2,403) 63,921
--------------------------------------------------------------------------------------------------
Net gains on debt securities (2,701) (20,713) 18,012
--------------------------------------------------------------------------------------------------
General and administrative expenses 489,543 7,066 482,476
--------------------------------------------------------------------------------------------------
Net business profits before credit costs
for trust accounts and provision for
formula allowance for loan losses 417,818 49,515 368,302
--------------------------------------------------------------------------------------------------
Provision for formula allowance for loan
losses (2) -- (74,093) 74,093
--------------------------------------------------------------------------------------------------
Net business profits* 409,386 119,911 289,474
--------------------------------------------------------------------------------------------------
Net non-recurring losses (135,953) 346,821 (482,774)
--------------------------------------------------------------------------------------------------
Credit related costs (3) (91,889) 54,921 (146,811)
--------------------------------------------------------------------------------------------------
Losses on loan charge-offs (49,840) 48,918 (98,758)
--------------------------------------------------------------------------------------------------
Provision for specific allowance for
loan losses -- (3,884) 3,884
--------------------------------------------------------------------------------------------------
Losses on sales of loans to the
Resolution and Collection Corporation (13,878) 30,342 (44,220)
--------------------------------------------------------------------------------------------------
Provision for allowance for loans to
specific foreign borrowers -- (12,753) 12,753
--------------------------------------------------------------------------------------------------
Other credit related costs (28,171) (7,700) (20,470)
--------------------------------------------------------------------------------------------------
Net losses on equity securities (9,070) 233,880 (242,950)
--------------------------------------------------------------------------------------------------
Gains on sales of equity securities 48,009 (8,912) 56,922
--------------------------------------------------------------------------------------------------
Losses on sales of equity securities (53,429) 44,723 (98,153)
--------------------------------------------------------------------------------------------------
Losses on write down of equity
securities (3,649) 198,069 (201,719)
--------------------------------------------------------------------------------------------------
Equity in loss of affiliates 1,232 7,572 (6,340)
--------------------------------------------------------------------------------------------------
Other (36,226) 50,445 (86,672)
==================================================================================================
Ordinary profit (loss) 273,432 466,732 (193,300)
==================================================================================================
Net special gains 234,901 222,036 12,865
--------------------------------------------------------------------------------------------------
Reversal of allowance for loan losses (4) 163,548 163,548 --
--------------------------------------------------------------------------------------------------
Refund of enterprise taxes by the Tokyo
Metropolitan Government 41,958 41,958 --
--------------------------------------------------------------------------------------------------
Gains on transfer of the substitutional
portion of future pension obligations 26,503 26,503 --
--------------------------------------------------------------------------------------------------
Gain on loans charged-off (5) 15,348 (9,348) 24,697
--------------------------------------------------------------------------------------------------
Income (loss) before income taxes and others 508,334 688,768 (180,434)
--------------------------------------------------------------------------------------------------
Income taxes-current 25,503 (6,416) 31,920
--------------------------------------------------------------------------------------------------
Income taxes-deferred 159,516 186,550 (27,033)
--------------------------------------------------------------------------------------------------
Minority interest 21,436 18,658 2,777
==================================================================================================
Net income (loss) 301,877 489,976 (188,098)
==================================================================================================
Note:
* Net business profits = The 2 Banks' non-consolidated net business
profits + Other consolidated entities' gross profits - Other
consolidated entities' general and administrative expenses - Other
consolidated entities' provision for formula allowance for loan losses
- Inter-company transactions
(Reference)
===============================================================================================
Total credit costs (1)+(2)+(3)+(4) (63,226) (288,866) 225,640
===============================================================================================
===============================================================================================
Total credit costs + Gain on loans
charged-off (1)+(2)+(3)+(4)+(5) (78,575) (279,518) 200,942
===============================================================================================
===============================================================================================
Number of consolidated subsidiaries 176 (16) 192
-----------------------------------------------------------------------------------------------
Number of affiliated companies
accounted for by the equity method 31 (2) 33
===============================================================================================
1
Mitsubishi Tokyo Financial Group, Inc.
2. Valuation Differences on Securities
(1) Valuation method of securities
--------------------------------------------------------------------------------
Trading securities Market value (valuation differences are recorded as
profits or losses)
--------------------------------------------------------------------------------
Debt securities being Amortized cost
held to maturity
--------------------------------------------------------------------------------
Securities available Market value (valuation differences are included in
for sale shareholders' equity, net of income taxes)
--------------------------------------------------------------------------------
(Reference) Securities in money held in trust
--------------------------------------------------------------------------------
Trading purposes Market value (valuation differences are recorded as
profits or losses)
--------------------------------------------------------------------------------
Being held to maturity Amortized cost
--------------------------------------------------------------------------------
Other Market value (valuation differences are included in
shareholders' equity, net of income taxes)
--------------------------------------------------------------------------------
(2) Valuation differences
(in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of September 30, 2003 As of September 30, 2002 As of March 31, 2003
------------------------------------------------------------------------------------------------------------------------------------
Valuation difference Valuation difference Valuation difference
------------------------------------------------------------------------------------------------------------------------------------
(A) (A) - (B) (A) - (C) Gains Losses (B) Gains Losses (C) Gains Losses
------------------------------------------------------------------------------------------------------------------------------------
Debt securities being
held to maturity 10,375 (4,742) (5,585) 10,378 3 15,117 15,196 79 15,960 15,961 1
------------------------------------------------------------------------------------------------------------------------------------
Securities available
for sale 314,599 332,006 557,234 677,703 363,104 (17,406) 652,940 670,347 (242,635) 506,454 749,089
---------------------------------------------------------------------------------------------------------------------------------
Domestic equity
securities 254,024 475,967 681,269 494,697 240,672 (221,942) 343,679 565,621 (427,244) 191,051 618,296
---------------------------------------------------------------------------------------------------------------------------------
Domestic bonds (34,570) (130,729)(156,441) 28,869 63,440 96,159 97,420 1,261 121,870 124,182 2,311
---------------------------------------------------------------------------------------------------------------------------------
Other 95,145 (13,231) 32,406 154,136 58,991 108,376 211,840 103,463 62,738 191,220 128,481
------------------------------------------------------------------------------------------------------------------------------------
Total 324,974 327,264 551,649 688,082 363,107 (2,289) 668,136 670,426 (226,675) 522,415 749,090
------------------------------------------------------------------------------------------------------------------------------------
Domestic equity
securities 254,024 475,967 681,269 494,697 240,672 (221,942) 343,679 565,621 (427,244) 191,051 618,296
---------------------------------------------------------------------------------------------------------------------------------
Domestic bonds (28,161) (134,834)(161,459) 35,281 63,443 106,672 107,933 1,261 133,297 135,609 2,311
---------------------------------------------------------------------------------------------------------------------------------
Other 99,111 (13,868) 31,839 158,103 58,991 112,980 216,523 103,543 67,271 195,755 128,483
------------------------------------------------------------------------------------------------------------------------------------
(3) Market Value Information for Securities in Trusts with Contracts for
Compensating the Principal
Money Trusts (jointly operated designated money in trust)
A. Market Value of Securities
(in millions of yen)
-----------------------------------------------------------------------------
September 30, 2003
-----------------------------------------------------------------------------
Trust Assets at interim-period end Market Value Valuation Gains
-----------------------------------------------------------------------------
232,059 238,072 6,013
-----------------------------------------------------------------------------
Note : A fair value is given where a fair value can be calculated for a
market-value equivalent.
B. Valuation Gains of Derivative Transaction : 1,486 millions of yen
Loan Trusts
A. Market Value of Securities
(in millions of yen)
-----------------------------------------------------------------------------
September 30, 2003
-----------------------------------------------------------------------------
Trust Assets at interim-period end Market Value Valuation Gains
-----------------------------------------------------------------------------
188,133 207,254 19,121
-----------------------------------------------------------------------------
Note : A fair value is given where a fair value can be calculated for a
market-value equivalent.
B. Valuation Gains of Derivative Transaction : 12,927 millions of yen
2
Mitsubishi Tokyo Financial Group, Inc.
3. Risk-Adjusted Capital Ratio Based on the Standards of the BIS
(in billions of yen except percentages)
--------------------------------------------------------------------------------------------------------
As of
September
30, As of
2003 (A) Increase/ Increase/ September As of
(Preliminary (Decrease) (Decrease) 30, March 31,
basis) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
(1) Risk-adjusted capital ratio 12.44% 1.95% 1.60% 10.49% 10.84%
(2) Tier 1 capital 3,683.7 630.6 555.0 3,053.1 3,128.6
(3) Tier 2 capital includable as
qualifying capital 3,127.2 184.3 279.6 2,942.8 2,847.6
i) The amount of unrealized
gains on investment
securities, includable
as qualifying capital 142.4 142.4 142.4 -- --
ii) The amount of land
revaluation excess
includable as qualifying
capital 140.8 (3.2) (6.5) 144.0 147.3
iii) Subordinated debt 2,162.1 51.8 149.9 2,110.2 2,012.1
(4) Tier 3 capital includable as
qualifying capital 29.9 0.1 (0.1) 29.8 30.0
(5) Deductions from total
qualifying capital 51.0 27.3 13.1 23.7 37.9
(6) Total qualifying capital
(2)+(3)+(4)-(5) 6,789.7 787.7 821.3 6,002.0 5,968.4
(7) Risk-adjusted assets 54,543.3 (2,646.9) (506.2) 57,190.3 55,049.6
--------------------------------------------------------------------------------------------------------
4. Return on Equity
(%)
----------------------------------------------------------------------------
Six months Six months
ended ended
September Increase/ September
30, (Decrease) 30,
2003 (A) (A) - (B) 2002 (B)
----------------------------------------------------------------------------
ROE* 20.04 34.50 (14.45)
----------------------------------------------------------------------------
Note: * ROE is computed as follows:
(Net income - Dividends on preferred stocks) x 2
--------------------------------------------------------------------- x 100
{(Shareholders' equity at beginning of period - Number of preferred
stocks at beginning of period x Issue price - Land revaluation excess
at beginning of period - Unrealized gains on securities available for
sale at beginning of period) + (Shareholders' equity at end of period
- Number of preferred stocks at end of period x Issue price - Land
revaluation excess at end of period - Unrealized gains on securities
available for sale at end of period)} / 2
3
Mitsubishi Tokyo Financial Group, Inc.
2 Loan Portfolio and Other
1. Risk-Monitored Loans
(Non-accrual loans, accruing loans contractually past due 3 months or
more and restructured loans)
[Consolidated]
(in millions of yen)
--------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 74,545 (36,415) (21,984) 110,961 96,530
-----------------------------------------------------------------------------------------------------------
Past due loans 933,469 (616,132) (274,636) 1,549,602 1,208,106
-----------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 17,682 3,712 (2,716) 13,970 20,399
-----------------------------------------------------------------------------------------------------------
Restructured loans 887,341 (913,249) (357,090) 1,800,590 1,244,431
-----------------------------------------------------------------------------------------------------------
Total 1,913,039 (1,562,085) (656,428) 3,475,124 2,569,468
--------------------------------------------------------------------------------------------------------------
Amount of direct reduction 605,373 (360,947) (106,296) 966,321 711,669
--------------------------------------------------------------------------------------------------------------
Loans and bills discounted 46,420,701 (541,111) (529,662) 46,961,813 46,950,363
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
--------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 0.16% (0.07)% (0.04)% 0.23% 0.20%
--------------------------------------------------------------------------------------------------------------
Past due loans 2.01% (1.28)% (0.56)% 3.29% 2.57%
--------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.03% 0.00% (0.00)% 0.02% 0.04%
--------------------------------------------------------------------------------------------------------------
Restructured loans 1.91% (1.92)% (0.73)% 3.83% 2.65%
--------------------------------------------------------------------------------------------------------------
Total 4.12% (3.27)% (1.35)% 7.39% 5.47%
--------------------------------------------------------------------------------------------------------------
[Trust accounts]
(in millions of yen)
--------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 3,177 (6,951) (1,191) 10,129 4,369
--------------------------------------------------------------------------------------------------------------
Past due loans 1,511 (4,934) (709) 6,445 2,220
--------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 601 (440) (317) 1,041 919
--------------------------------------------------------------------------------------------------------------
Restructured loans 29,745 (11,288) (3,910) 41,033 33,655
--------------------------------------------------------------------------------------------------------------
Total 35,035 (23,614) (6,129) 58,650 41,165
--------------------------------------------------------------------------------------------------------------
Loans and bills discounted 763,053 (205,814) (120,447) 968,867 883,501
--------------------------------------------------------------------------------------------------------------
[Consolidated and Trust accounts]
(in millions of yen)
--------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 77,723 (43,367) (23,176) 121,090 100,899
--------------------------------------------------------------------------------------------------------------
Past due loans 934,980 (621,067) (275,346) 1,556,048 1,210,327
--------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 18,284 3,271 (3,034) 15,012 21,319
--------------------------------------------------------------------------------------------------------------
Restructured loans 917,086 (924,537) (361,000) 1,841,623 1,278,087
--------------------------------------------------------------------------------------------------------------
Total 1,948,075 (1,585,700) (662,558) 3,533,775 2,610,633
--------------------------------------------------------------------------------------------------------------
Loans and bills discounted 47,183,755 (746,925) (650,109) 47,930,681 47,833,865
--------------------------------------------------------------------------------------------------------------
4
Mitsubishi Tokyo Financial Group, Inc.
2. Classification of risk-monitored Loans
Classification by geographic area
[Consolidated]
(in millions of yen)
--------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------------
Domestic* 1,631,345 (1,482,091) (532,070) 3,113,436 2,163,416
--------------------------------------------------------------------------------------------------------------
Overseas* 281,694 (79,993) (124,357) 361,687 406,051
--------------------------------------------------------------------------------------------------------------
Asia 36,639 (46,921) (30,026) 83,561 66,666
--------------------------------------------------------------------------------------------------------------
Indonesia 10,426 (21,139) (3,921) 31,566 14,348
Thailand 8,659 (20,957) (4,936) 29,616 13,595
Hong Kong 7,274 4,692 (9,264) 2,581 16,539
Other 10,279 (9,516) (11,904) 19,796 22,183
--------------------------------------------------------------------------------------------------------------
United States of America 162,754 10,742 (50,023) 152,012 212,778
Other 82,299 (43,813) (44,307) 126,113 126,606
--------------------------------------------------------------------------------------------------------------
Total 1,913,039 (1,562,085) (656,428) 3,475,124 2,569,468
--------------------------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
[Trust accounts]
(in millions of yen)
--------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------------
Domestic 35,035 (23,614) (6,129) 58,650 41,165
--------------------------------------------------------------------------------------------------------------
Classification by type of industry of borrowers
[Consolidated]
(in millions of yen)
--------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------------
Domestic* 1,631,345 (1,482,091) (532,070) 3,113,436 2,163,416
--------------------------------------------------------------------------------------------------------------
Manufacturing 184,181 (230,792) (119,751) 414,974 303,932
Construction 215,138 (130,676) (42,235) 345,815 257,374
Wholesale and Retail 344,275 (279,440) (131,095) 623,715 475,371
Banks and other financial
institutions 12,426 (70,384) (12,515) 82,811 24,942
Real estate 385,634 (524,852) (130,077) 910,487 515,712
Services 182,554 (190,164) (67,269) 372,719 249,824
Other industries 79,247 (30,716) (23,831) 109,964 103,079
Consumer 227,885 (25,063) (5,293) 252,949 233,178
--------------------------------------------------------------------------------------------------------------
Overseas* 281,694 (79,993) (124,357) 361,687 406,051
--------------------------------------------------------------------------------------------------------------
Banks and other financial
institutions 2,087 (6,967) (4,035) 9,055 6,122
Commercial and industrial 273,385 (27,998) (105,852) 301,384 379,238
Other 6,221 (45,026) (14,469) 51,248 20,691
--------------------------------------------------------------------------------------------------------------
Total 1,913,039 (1,562,085) (656,428) 3,475,124 2,569,468
--------------------------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
[Trust accounts]
(in millions of yen)
--------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------------
Domestic 35,035 (23,614) (6,129) 58,650 41,165
--------------------------------------------------------------------------------------------------------------
Manufacturing 1,746 (7,680) (2,259) 9,426 4,005
Construction 1,235 (1,763) (482) 2,999 1,717
Wholesale and Retail 2,033 (1,880) (466) 3,914 2,500
Banks and other financial
institutions -- -- -- -- --
Real estate 5,748 (4,954) (871) 10,703 6,619
Services 1,294 (7,663) (439) 8,958 1,733
Other industries 18,076 2,560 (133) 15,516 18,210
Consumer 4,899 (2,231) (1,478) 7,131 6,377
--------------------------------------------------------------------------------------------------------------
Total 35,035 (23,614) (6,129) 58,650 41,165
--------------------------------------------------------------------------------------------------------------
5
Mitsubishi Tokyo Financial Group,Inc.
3. Allowance for Loan Losses
[Consolidated] (in millions of yen)
----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
----------------------------------------------------------------------------------------------
Allowance for loan losses 1,043,299 (454,978) (253,993) 1,498,277 1,297,292
----------------------------------------------------------------------------------------------
Formula allowance for loan losses 683,955 (158,217) (122,060) 842,172 806,015
-------------------------------------------------------------------------------------------
Specific allowance for loan losses 350,141 (291,113) (127,757) 641,255 477,898
-------------------------------------------------------------------------------------------
Allowance for loans to specific
foreign borrowers 9,202 (5,646) (4,175) 14,849 13,378
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
Reserve for losses on real
estate-collateralized loans sold -- (2,039) -- 2,039 --
----------------------------------------------------------------------------------------------
[Trust accounts] (in millions of yen)
----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
----------------------------------------------------------------------------------------------
Special internal reserves 7,283 (3,867) (1,142) 11,151 8,425
----------------------------------------------------------------------------------------------
Allowance for bad debts 926 (162) (75) 1,089 1,002
----------------------------------------------------------------------------------------------
4. Coverage Ratio against Risk-Monitored Loans
[Consolidated] (in millions of yen)
----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
----------------------------------------------------------------------------------------------
Allowance for loan losses (I) 1,043,299 (454,978) (253,993) 1,498,277 1,297,292
----------------------------------------------------------------------------------------------
Risk-monitored loans (II) 1,913,039 (1,562,085) (656,428) 3,475,124 2,569,468
----------------------------------------------------------------------------------------------
Coverage ratio (I)/(II) 54.53% 11.42% 4.04% 43.11% 50.48%
----------------------------------------------------------------------------------------------
6
Mitsubishi Tokyo Financial Group, Inc.
5. Disclosed Claims under the Financial Reconstruction Law (the "FRL")
[Banking and Trust accounts: Total of the 2 Banks] (in millions of yen)
-----------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
-----------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 182,320 (219,791) (44,136) 402,112 226,457
-----------------------------------------------------------------------------------------------------
Claims under high risk 745,746 (640,910) (285,626) 1,386,657 1,031,373
-----------------------------------------------------------------------------------------------------
Claims under close observation 929,227 (957,059) (428,217) 1,886,287 1,357,445
-----------------------------------------------------------------------------------------------------
Total(1) 1,857,295 (1,817,761) (757,980) 3,675,056 2,615,276
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Normal claims 46,424,722 192,810 88,779 46,231,912 46,335,943
-----------------------------------------------------------------------------------------------------
6. Status of Secured Coverage on Disclosed Claims under the FRL
[Banking and Trust accounts: Total of the 2 Banks] (in millions of yen)
-----------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
-----------------------------------------------------------------------------------------------------
Secured coverage amount (2) 1,393,817 (1,407,641) (577,460) 2,801,459 1,971,278
-----------------------------------------------------------------------------------------------------
Allowance for loan losses 461,908 (415,870) (209,934) 877,778 671,843
--------------------------------------------------------------------------------------------------
Reserve for financial assistance
to specific borrowers -- (250) (531) 250 531
--------------------------------------------------------------------------------------------------
Collateral, guarantees, etc. 931,909 (991,520) (366,994) 1,923,429 1,298,903
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Secured coverage ratio (2)/(1) 75.04% (1.18)% (0.32)% 76.22% 75.37%
-----------------------------------------------------------------------------------------------------
Secured Coverage of Each Category of Disclosed Claims under the FRL
[Banking and Trust accounts: Total of the 2 Banks] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------
Reserve
for
financial Collectable
support amount by
to collateralized Coverage
Allowance specific and ratio Coverage ratio
Disclosed for loan borrowers guaranteed [(B)+(C)]/ [(B)+(C)+(D)] /
Category amount (A) losses (B) (C) loans (D) [(A)-(D)] (A)
--------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially 182,320 12,046 -- 170,274 100.00% 100.00%
bankrupt debtors [226,457] [19,961] -- [206,495] [100.00%] [100.00%]
--------------------------------------------------------------------------------------------------------------------------
Claims under high risk 745,746 278,998 -- 360,974 72.51% 85.81%
[1,031,373] [386,331] -- [467,567] [68.52%] [82.79%]
--------------------------------------------------------------------------------------------------------------------------
Claims under close 929,227 170,863 -- 400,660 32.32% 61.50%
observation [1,357,445] [265,549] [531] [624,840] [36.31%] [65.63%]
--------------------------------------------------------------------------------------------------------------------------
Sub total (1) 1,857,295 461,908 -- 931,909 49.91% 75.04%
[2,615,276] [671,843] [531] [1,298,903] [51.07%] [75.37%]
--------------------------------------------------------------------------------------------------------------------------
Normal claims 46,424,722
[46,335,943]
--------------------------------------------------------------------------------------------------------------------------
Total (2) 48,282,018
[48,951,219]
--------------------------------------------------------------------------------------------------------------------------
Sub total (1) 3.84%
/ Total (2) [5.34%]
--------------------------------------------------------------------------------------------------------------------------
Note: The upper figures are as of September 30, 2003. The lower figures with
bracket are as of March 31, 2003.
7
Mitsubishi Tokyo Financial Group,Inc.
7. Progress in the Disposal of Problem Assets [Banking and Trust accounts: Total
of the 2 Banks]
(excluding claims under close observation)
(1) Assets categorized as problem assets as of September 30, 2000 based on the
FRL
(in billions of yen)
---------------------------------------------------------------------------------------------------------------------------
As of As of As of As of
September As of September As of September As of September
30, March 31, 30, March 31, 30, March 31, 30,
2000 2001 2001 2002 2002 2003 (a) 2003 (b) (b)-(a)
---------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 513.6 280.6 274.1 213.9 253.7 68.7 34.9 (33.8)
---------------------------------------------------------------------------------------------------------------------------
Claims under high risk 1,580.2 1,400.4 1,141.3 840.1 378.5 37.4 33.2 (4.1)
---------------------------------------------------------------------------------------------------------------------------
Total 2,093.8 1,681.0 1,415.4 1,054.1 632.2 106.2 68.2 (37.9)
---------------------------------------------------------------------------------------------------------------------------
(A) (B)
Progress in the disposal of problem assets
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Disposition by borrowers' liquidation 14.2
-------------------------------------------------------------------
Re-constructive disposition 0.3
-------------------------------------------------------------------
Improvements in financial status due to
re-constructive disposition --
-------------------------------------------------------------------
Loan sales to secondary market 0.6
-------------------------------------------------------------------
Charge-off 2.6
-------------------------------------------------------------------
Other 20.0
----------------------------------------------------------------
Collection of claims 18.8
----------------------------------------------------------------
Improvements in financial status 1.1
-------------------------------------------------------------------
Total 37.9(B)
-------------------------------------------------------------------
Above (A) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Legal liquidation 15.2
-------------------------------------------------------------------
Quasi-legal liquidation --
-------------------------------------------------------------------
Split-off of problem loans 0.6
-------------------------------------------------------------------
Partial charge-off of smaller balance
loans 7.9
-------------------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection
Corporation 22.7
-------------------------------------------------------------------
Total 46.5
-------------------------------------------------------------------
(2) Assets newly categorized as problem assets during second half of fiscal 2000
based on the FRL
(in billions of yen)
----------------------------------------------------------------------------------------------------------------
As of As of As of
As of September As of September As of September
March 31, 30, March 31, 30, March 31, 30,
2001 2001 2002 2002 2003 (a) 2003 (b) (b)-(a)
----------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 117.9 103.8 99.2 46.9 28.6 27.1 (1.4)
----------------------------------------------------------------------------------------------------------------
Claims under high risk 769.0 693.0 538.9 346.0 79.4 55.7 (23.6)
----------------------------------------------------------------------------------------------------------------
Total 887.0 796.8 638.1 393.0 108.0 82.8 (25.1)
----------------------------------------------------------------------------------------------------------------
(C) (D)
Progress in the disposal of problem assets
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Disposition by borrowers' liquidation 0.5
-------------------------------------------------------------------
Re-constructive disposition 0.3
-------------------------------------------------------------------
Improvements in financial status due to
re-constructive disposition --
-------------------------------------------------------------------
Loan sales to secondary market 0.3
-------------------------------------------------------------------
Charge-off 1.3
-------------------------------------------------------------------
Other 22.6
----------------------------------------------------------------
Collection of claims 14.4
----------------------------------------------------------------
Improvements in financial status 8.2
-------------------------------------------------------------------
Total 25.1(D)
-------------------------------------------------------------------
Above (C) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Legal liquidation 9.6
-------------------------------------------------------------------
Quasi-legal liquidation --
-------------------------------------------------------------------
Split-off of problem loans --
-------------------------------------------------------------------
Partial charge-off of smaller balance
loans 15.7
-------------------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection
Corporation --
-------------------------------------------------------------------
Total 25.3
-------------------------------------------------------------------
Note: The figures (2) to (6) as of March 31, 2003 have been revised. This is
because figures of loans to individuals in The Bank of Tokyo-Mitsubishi,
Ltd. were allocated based on research when they caused. Those had been
included collectively in (2) at March 31, 2003.
8
Mitsubishi Tokyo Financial Group, Inc.
(3) Assets newly categorized as problem assets during first half of fiscal
2001 based on the FRL
(in billions of yen)
-----------------------------------------------------------------------------------------------------
As of As of As of
September As of September As of September
30, March 31, 30, March 31, 30,
2001 2002 2002 2003 (a) 2003 (b) (b)-(a)
-----------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 30.2 42.1 27.9 19.3 12.3 (6.9)
-----------------------------------------------------------------------------------------------------
Claims under high risk 337.1 170.3 101.6 53.7 31.7 (22.0)
-----------------------------------------------------------------------------------------------------
Total 367.3 212.5 129.6 73.0 44.0 (28.9)
-----------------------------------------------------------------------------------------------------
(E) (F)
Progress in the disposal of problem assets
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Disposition by borrowers' liquidation 0.1
-------------------------------------------------------------------
Re-constructive disposition 3.9
-------------------------------------------------------------------
Improvements in financial status due to
re-constructive disposition --
-------------------------------------------------------------------
Loan sales to secondary market 8.7
-------------------------------------------------------------------
Charge-off 2.4
-------------------------------------------------------------------
Other 13.6
----------------------------------------------------------------
Collection of claims 9.5
----------------------------------------------------------------
Improvements in financial status 4.1
-------------------------------------------------------------------
Total 28.9(F)
-------------------------------------------------------------------
Above (E) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Legal liquidation 1.6
-------------------------------------------------------------------
Quasi-legal liquidation --
-------------------------------------------------------------------
Split-off of problem loans --
-------------------------------------------------------------------
Partial charge-off of smaller balance
loans 10.2
-------------------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection
Corporation --
-------------------------------------------------------------------
Total 11.8
-------------------------------------------------------------------
(4) Assets newly categorized as problem assets during second half of fiscal
2001 based on the FRL
(in billions of yen)
------------------------------------------------------------------------------------------
As of As of
As of September As of September
March 31, 30, March 31, 30,
2002 2002 2003 (a) 2003 (b) (b)-(a)
------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 63.6 44.4 22.3 17.1 (5.1)
------------------------------------------------------------------------------------------
Claims under high risk 384.0 190.9 113.7 55.2 (58.5)
------------------------------------------------------------------------------------------
Total 447.7 235.3 136.0 72.3 (63.7)
------------------------------------------------------------------------------------------
(G) (H)
Progress in the disposal of problem assets
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Disposition by borrowers' liquidation 0.1
-------------------------------------------------------------------
Re-constructive disposition 0.8
-------------------------------------------------------------------
Improvements in financial status due to
re-constructive disposition --
-------------------------------------------------------------------
Loan sales to secondary market 5.7
-------------------------------------------------------------------
Charge-off 10.5
-------------------------------------------------------------------
Other 46.3
----------------------------------------------------------------
Collection of claims 20.8
----------------------------------------------------------------
Improvements in financial status 25.4
-------------------------------------------------------------------
Total 63.7(H)
-------------------------------------------------------------------
Above (G) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Legal liquidation 1.7
-------------------------------------------------------------------
Quasi-legal liquidation 2.4
-------------------------------------------------------------------
Split-off of problem loans --
-------------------------------------------------------------------
Partial charge-off of smaller balance
loans 11.6
-------------------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection
Corporation --
-------------------------------------------------------------------
Total 15.8
-------------------------------------------------------------------
9
Mitsubishi Tokyo Financial Group, Inc.
(5) Assets newly categorized as problem assets during first half of fiscal
2002 based on the FRL
(in billions of yen)
-------------------------------------------------------------------------------
As of As of
September As of September
30, March 31, 30,
2002 2003 (a) 2003 (b) (b)-(a)
-------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 28.9 35.2 30.1 (5.1)
-------------------------------------------------------------------------------
Claims under high risk 369.4 179.5 98.5 (80.9)
-------------------------------------------------------------------------------
Total 398.4 214.7 128.7 (86.0)
-------------------------------------------------------------------------------
(I) (J)
Progress in the disposal of problem assets
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Disposition by borrowers' liquidation 2.0
-------------------------------------------------------------------
Re-constructive disposition 4.9
-------------------------------------------------------------------
Improvements in financial status due to
re-constructive disposition 0.3
-------------------------------------------------------------------
Loan sales to secondary market 18.2
-------------------------------------------------------------------
Charge-off 6.9
-------------------------------------------------------------------
Other 53.5
----------------------------------------------------------------
Collection of claims 30.9
----------------------------------------------------------------
Improvements in financial status 22.5
-------------------------------------------------------------------
Total 86.0(J)
-------------------------------------------------------------------
Above (I) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Legal liquidation 17.1
-------------------------------------------------------------------
Quasi-legal liquidation --
-------------------------------------------------------------------
Split-off of problem loans --
-------------------------------------------------------------------
Partial charge-off of smaller balance
loans 9.0
-------------------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection
Corporation --
-------------------------------------------------------------------
Total 26.1
-------------------------------------------------------------------
(6) Assets newly categorized as problem assets during second half of fiscal 2002
based on the FRL
(in billions of yen)
-------------------------------------------------------------------
As of
As of September
March 31, 30,
2003 (a) 2003 (b) (b)-(a)
-------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 52.1 46.0 (6.0)
-------------------------------------------------------------------
Claims under high risk 567.4 320.5 (246.9)
-------------------------------------------------------------------
Total 619.6 366.5 (253.0)
-------------------------------------------------------------------
(K) (L)
Progress in the disposal of problem assets
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Disposition by borrowers' liquidation 1.8
-------------------------------------------------------------------
Re-constructive disposition 14.5
-------------------------------------------------------------------
Improvements in financial status due to
re-constructive disposition --
-------------------------------------------------------------------
Loan sales to secondary market 43.4
-------------------------------------------------------------------
Charge-off 16.1
-------------------------------------------------------------------
Other 176.8
----------------------------------------------------------------
Collection of claims 80.4
----------------------------------------------------------------
Improvements in financial status 96.4
-------------------------------------------------------------------
Total 253.0(L)
-------------------------------------------------------------------
Above (K) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2003
-------------------------------------------------------------------
Legal liquidation 14.1
-------------------------------------------------------------------
Quasi-legal liquidation --
-------------------------------------------------------------------
Split-off of problem loans --
-------------------------------------------------------------------
Partial charge-off of smaller balance
loans 14.1
-------------------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection
Corporation --
-------------------------------------------------------------------
Total 28.3
-------------------------------------------------------------------
10
Mitsubishi Tokyo Financial Group,Inc.
(7) Assets newly categorized as problem assets during first half of fiscal 2003
based on the FRL
(in billions of yen)
-----------------------------------------------
As of
September
30,
2003
-----------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 14.4
-----------------------------------------------
Claims under high risk 150.7
-----------------------------------------------
Total 165.1
-----------------------------------------------
(8) Historical trend of problem assets based on the FRL
(in billions of yen)
---------------------------------------------------------------------------------------------------------------------------
As of As of As of As of
September As of September As of September As of September
30, March 31, 30, March 31, 30, March 31, 30,
2000 2001 2001 2002 2002 2003 (a) 2003 (b) (b)-(a)
---------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 513.6 398.6 408.1 419.0 402.1 226.4 182.3 (44.1)
---------------------------------------------------------------------------------------------------------------------------
Claims under high risk 1,580.2 2,169.5 2,171.4 1,933.5 1,386.6 1,031.3 745.7 (285.6)
---------------------------------------------------------------------------------------------------------------------------
Total 2,093.8 2,568.1 2,579.6 2,352.6 1,788.7 1,257.8 928.0 (329.7)
---------------------------------------------------------------------------------------------------------------------------
11
Mitsubishi Tokyo Financial Group, Inc.
8. Classification of Loans by Type of Industry
(1) Loans by type of industry [Total of the 2 Banks] (in millions of yen)
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Domestic offices (excluding loans
booked at offshore markets) 37,916,036 754,461 499,902 37,161,574 37,416,133
-----------------------------------------------------------------------------------------------------
Manufacturing 5,362,409 (315,893) (110,570) 5,678,302 5,472,979
Agriculture 14,113 (2,445) (1,455) 16,558 15,568
Forestry 5,231 (153) (194) 5,384 5,425
Fishery 28,070 8,575 2,777 19,495 25,293
Mining 40,651 (492) 1,158 41,143 39,493
Construction 1,128,500 (215,253) (99,750) 1,343,753 1,228,250
Utilities 389,965 17,004 (27,332) 372,961 417,297
Media and Communication 1,490,783 (487,625) (6,084) 1,978,408 1,496,867
Wholesale and Retail 4,842,898 (642,503) (248,427) 5,485,401 5,091,325
Banks and other financial
institutions 4,091,865 (121,930) 240,286 4,213,795 3,851,579
Real estate 4,467,152 (186,135) 2,957 4,653,287 4,464,195
Services 5,095,185 768,487 313,490 4,326,698 4,781,695
Municipal government 606,349 314,011 229,836 292,338 376,513
Other industries 10,352,857 1,618,811 203,211 8,734,045 10,149,646
--------------------------------------------------------------------------------------------------------
Overseas offices and loans booked
at offshore markets 4,822,026 (972,321) (748,399) 5,794,347 5,570,426
--------------------------------------------------------------------------------------------------------
Total 42,738,063 (217,859) (248,496) 42,955,922 42,986,559
--------------------------------------------------------------------------------------------------------
(2) Domestic consumer loans [Total of the 2 Banks] (in millions of yen)
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Total domestic consumer loans 8,006,932 740,746 530,226 7,266,185 7,476,706
-----------------------------------------------------------------------------------------------------
Housing loans 7,514,428 816,795 573,235 6,697,632 6,941,192
-----------------------------------------------------------------------------------------------------
Others 492,503 (76,048) (43,009) 568,552 535,513
--------------------------------------------------------------------------------------------------------
(3) Domestic loans to small and medium-sized companies [Total of the 2 Banks] (in millions of yen)
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Domestic loans to small and
medium-sized companies 20,194,680 (691,008) 274,328 20,885,689 19,920,352
--------------------------------------------------------------------------------------------------------
Percentage to total domestic
loans 53.26% (2.94)% 0.02% 56.20% 53.24%
--------------------------------------------------------------------------------------------------------
12
(4) Loans by type of industry [Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Domestic offices (excluding loans
booked at offshore markets) 895,594 (283,379) (211,961) 1,178,974 1,107,555
-----------------------------------------------------------------------------------------------------
Manufacturing 49,425 (30,051) (27,370) 79,476 76,795
Agriculture -- -- -- -- --
Forestry 26 (7) (4) 33 30
Fishery 1,225 268 (347) 957 1,572
Mining 77 (146) (52) 223 129
Construction 5,473 (6,364) (2,399) 11,837 7,872
Utilities 117,471 (34,762) (17,733) 152,233 135,204
Media and Communication 107,069 (53,015) (17,491) 160,084 124,560
Wholesale and Retail 10,672 (4,597) (6,518) 15,269 17,190
Banks and other financial
institutions 100,227 (48,660) (97,495) 148,887 197,722
Real estate 71,275 (17,886) (6,525) 89,161 77,800
Services 46,655 (21,340) (6,112) 67,995 52,767
Municipal government 36,823 (3,630) (950) 40,453 37,773
Other industries 349,168 (63,191) (28,966) 412,359 378,134
--------------------------------------------------------------------------------------------------------
Overseas offices and loans booked
at offshore markets -- -- -- -- --
--------------------------------------------------------------------------------------------------------
Total 895,594 (283,379) (211,961) 1,178,974 1,107,555
--------------------------------------------------------------------------------------------------------
(5) Domestic consumer loans [Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Total domestic consumer loans 246,994 (44,368) (21,411) 291,362 268,405
-----------------------------------------------------------------------------------------------------
Housing loans 244,050 (43,474) (21,000) 287,524 265,050
-----------------------------------------------------------------------------------------------------
Others 2,943 (894) (411) 3,837 3,354
--------------------------------------------------------------------------------------------------------
(6) Domestic loans to small and medium-sized companies [Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Domestic loans to small and
medium-sized companies 541,359 (128,643) (125,042) 670,002 666,401
--------------------------------------------------------------------------------------------------------
Percentage to total domestic
loans 60.44% 3.61% 0.27% 56.82% 60.16%
--------------------------------------------------------------------------------------------------------
13
9. Foreign Loans
(1) Loans to specific foreign borrowers
[Total of the 2 Banks] (in millions of yen except number of countries)
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Loan to specific foreign
borrowers 47,464 (28,523) (10,777) 75,987 58,241
--------------------------------------------------------------------------------------------------------
Number of countries 10 -- -- 10 10
--------------------------------------------------------------------------------------------------------
(2) Loans to Asian countries [Total of the 2 Banks] (in millions of yen)
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Thailand 196,650 (50,175) (16,594) 246,826 213,245
Indonesia 111,935 (33,606) (8,713) 145,541 120,649
Malaysia 112,998 1,394 13,022 111,603 99,975
Philippines 61,504 (4,492) (691) 65,997 62,195
South Korea 173,235 65,867 14,335 107,368 158,900
Singapore 222,352 (50,661) (20,821) 273,014 243,173
Hong Kong 379,324 (13,241) (38,586) 392,566 417,910
China 199,137 (22,602) (15,887) 221,739 215,024
Taiwan 43,658 7,500 4,166 36,157 39,491
Others 40,270 (14,408) (4,340) 54,679 44,611
--------------------------------------------------------------------------------------------------------
Total 1,541,068 (114,426) (74,109) 1,655,494 1,615,177
--------------------------------------------------------------------------------------------------------
(3) Loans to Latin American countries [Total of the 2 Banks] (in millions of yen)
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Argentina 25,416 (40,706) (11,854) 66,123 37,271
Brazil 69,186 (15,390) (3,370) 84,577 72,557
Mexico 87,182 (21,788) (16,067) 108,970 103,249
Caribbean countries 364,688 (61,679) (16,886) 426,368 381,575
Others 102,633 (14,117) (23,613) 116,750 126,246
--------------------------------------------------------------------------------------------------------
Total 649,108 (153,682) (71,792) 802,790 720,900
--------------------------------------------------------------------------------------------------------
14
10. Loans and Deposits [Total of the 2 Banks]
(in millions of yen)
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Deposits (ending balance) 60,909,391 4,027,315 1,938,605 56,882,076 58,970,786
--------------------------------------------------------------------------------------------------------
Deposits (average balance) 59,871,867 3,253,673 2,444,483 56,618,194 57,427,383
--------------------------------------------------------------------------------------------------------
Loans (ending balance) 42,738,063 (217,859) (248,496) 42,955,922 42,986,559
--------------------------------------------------------------------------------------------------------
Loans (average balance) 42,582,272 (804,344) (1,095,249) 43,386,616 43,677,521
--------------------------------------------------------------------------------------------------------
11. Domestic Deposits [Total of the 2 Banks]
(in millions of yen)
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Individuals 32,966,600 2,078,157 802,159 30,888,443 32,164,441
-----------------------------------------------------------------------------------------------------
Corporations and others 20,910,857 1,770,997 1,007,037 19,139,860 19,903,820
-----------------------------------------------------------------------------------------------------
Domestic deposits 53,877,458 3,849,154 1,809,196 50,028,304 52,068,261
--------------------------------------------------------------------------------------------------------
Note: Amounts do not include negotiable certificates of deposit, deposits of
overseas offices and JOM accounts.
12. Number of Employees [Total of the 2 Banks]
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Number of employees 21,154 (1,149) (213) 22,303 21,367
--------------------------------------------------------------------------------------------------------
13. Number of Offices [Total of the 2 Banks]
--------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A)-(B) (A)-(C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------------
Domestic: 323 (19) (12) 342 335
-----------------------------------------------------------------------------------------------------
Head office and Branches 302 (12) (7) 314 309
Sub-branches & Agencies 21 (7) (5) 28 26
--------------------------------------------------------------------------------------------------------
Overseas: 81 (2) 1 83 80
-----------------------------------------------------------------------------------------------------
Branches 47 (2) -- 49 47
Sub-branches 14 -- 1 14 13
Representative offices 20 -- -- 20 20
--------------------------------------------------------------------------------------------------------
Total 404 (21) (11) 425 415
--------------------------------------------------------------------------------------------------------
15
14. Status of Deferred Tax Assets
(1) Tax Effects of the Items Comprising Net Deferred Tax Assets
(Total of the two banks) (in billions of yen)
----------------------------------------------------------------------------
Sept. 30, 2003
------------------
vs. Mar. 31, 2003
----------------------------------------------------------------------------
1 Deferred Tax Assets 1,204.4 (186.7)
-------------------------------------------------------------------------
2 Allowance for loan losses 422.1 (110.0)
-------------------------------------------------------------------------
3 Write down of investment securities 84.8 (4.9)
-------------------------------------------------------------------------
4 Net operating loss carryforwards 728.5 (39.3)
-------------------------------------------------------------------------
5 Reserve for employees' retirement benefits 31.5 (6.0)
-------------------------------------------------------------------------
6 Unrealized losses on
securities available for sale -- (113.4)
-------------------------------------------------------------------------
7 Other 45.8 (5.8)
-------------------------------------------------------------------------
8 Valuation allowance (108.4) 93.0
----------------------------------------------------------------------------
9 Deferred tax liabilities 146.5 128.2
-------------------------------------------------------------------------
10 Gains on placing trust
for retirement benefits 7.2 (1.3)
-------------------------------------------------------------------------
11 Unrealized gains on
securities available for sale 118.2 118.2
-------------------------------------------------------------------------
12 Other 20.9 11.3
----------------------------------------------------------------------------
13 Net Deferred Tax Assets 1,057.9 (314.9)
----------------------------------------------------------------------------
(Consolidated)
----------------------------------------------------------------------------
14 Net Deferred Tax Assets 989.5 (312.3)
----------------------------------------------------------------------------
(2) Balance of Net Tax Assets and % of Tier I Capital
[CHART APPEARS HERE]
(3) Net Business Profits before Credit Costs and Taxable Income
(Current Interim Fiscal Year)
(Total of the two banks) (in billions of yen)
-------------------------------------------------------------------
Interim FY 2003
-------------------------------------------------------------------
15 Net business profits before credit costs 336.3
-------------------------------------------------------------------
16 Credit related costs (92.8)
-------------------------------------------------------------------
17 Income before income taxes 456.5
-------------------------------------------------------------------
18 Reconciliation to taxable income (358.7)
-------------------------------------------------------------------
19 Taxable income 97.9
-------------------------------------------------------------------
(4) Net Business Profits before Credit Costs and Taxable Income
(Past Five Fiscal Years)
(Total of the two banks) (in billions of yen)
------------------------------------------------------------------------
FY 1998 FY 1999 FY 2000 FY 2001 FY 2002
------------------------------------------------------------------------
20 Net business
profits before
credit costs 888.0 578.6 552.0 619.5 689.9
------------------------------------------------------------------------
21 Credit related costs 1,393.1 652.4 730.5 666.3 485.9
------------------------------------------------------------------------
22 Income before
income taxes (124.7) 409.4 (199.0) (359.3) (485.2)
------------------------------------------------------------------------
23 Reconciliation to
taxable income 421.0 (76.3) 304.4 142.0 (1,021.4)
------------------------------------------------------------------------
24 Taxable income 296.2 333.1 105.3 (217.2) (1,506.7)
------------------------------------------------------------------------
(5) Comparison with Past Fiscal Years
[CHART APPEARS HERE]
16
(6) Classification Based on Prior Year Operating Results As Provided in the
JICPA Audit Committee Report No. 66
-----------------------------------------------------------------------------------------------------
Estimable period of future taxable income
-----------------------------------------
Classifi- Prior year operating results 1 year 5 years Estimable No
cation period limitation
-----------------------------------------------------------------------------------------------------
1 Sufficient taxable income for more than
three consecutive fiscal years xxxxx xxxxx xxxxx xxxxx
-----------------------------------------------------------------------------------------------------
2 Stable but insufficient taxable income for
three consecutive fiscal years xxxxx xxxxx xxxxx
-----------------------------------------------------------------------------------------------------
3 Precarious and insufficient operating
results due to volatile profit xxxxx xxxxx
-----------------------------------------------------------------------------------------------------
4 Material net operating loss carryforwards xxxxx
-----------------------------------------------------------------------------------------------------
Exception Net operating loss carryforwards are
attributable to extraordinary factors xxxxx xxxxx
-----------------------------------------------------------------------------------------------------
5 Tax loss for three consecutive fiscal years
and tax loss for the current fiscal year is Cannot estimate future taxable income
expected
-----------------------------------------------------------------------------------------------------
Although we recorded taxable income for the six months ended September 30,
2003, we are classified as "4" described above since we have material net
operating loss carryforwards. However, since we believe the net operating loss
carryforwards are attributable to extraordinary factors such as changes in laws
and regulations, we apply the exception to classification 4. (Five years' future
taxable income is estimable.)
(7) Extraordinary Factors Such as Changes in Laws and Regulations
Our net operating loss carryforwards were incurred due to, among other
things, the following: (i) we accelerated the final disposal of nonperforming
loans in response to both the "Emerging Economic Package," which provided
guidance to major banks to remove from their balance sheets claims to debtors
classified as "likely to become bankrupt" or below, and the "Program for
Financial Revival," which urged major banks to reduce the ratio of disclosed
claims to total claims by about half; and (ii) we reduced our holdings of
strategic equity investments under the "Law Concerning Restriction, etc. of
Banks' Shareholdings etc."
(8) Realizability of Deferred Tax Assets at September 30, 2003 (Assumptions)
(in billions of yen)
-------------------------------------------------------------------------
Five year
total
(2003 2/nd/
half to 2008
1/st/ half)
-------------------------------------------------------------------------
1 Net business profits (based on our business plan) (*1) 4,560.0
-------------------------------------------------------------------------
2 Net business profits (basis of realizability
determination) (*2) 4,050.0
-------------------------------------------------------------------------
3 Income before income taxes (basis of realizability
determination) 2,550.0
-------------------------------------------------------------------------
4 Taxable income before adjustments (basis of
realizability determination) (*3) 3,440.0
-------------------------------------------------------------------------
5 Temporary difference + net operating loss carryforwards
(for which deferred tax assets shall be recognized) 3,070.0
-------------------------------------------------------------------------
6 Deferred tax assets at September 30, 2003 (*4) 1,207.0
-------------------------------------------------------------------------
(*1) Total of the two banks, before credit costs
(*2) Based on the scenario that current short-term interest rate level
continues for the next five years
(*3) Before reversals of existing
deductible temporary differences and net operating loss carryforwards
(*4) "5" describes above X effective tax rate
(consolidated corporate tax basis)
[CHART APPEARS HERE]
(Reference) Assumptions for Business Plan
----------------------------------------------------------------------------------------------------
FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008
2/nd/ half 1/st/ half
----------------------------------------------------------------------------------------------------
S/T interest rate (3 m/s TIBOR) 0.1% 0.1% 0.6% 0.9% 0.8% 0.6%
----------------------------------------------------------------------------------------------------
L/T interest rate (10 year JGB) 1.4% 1.3% 2.0% 2.5% 2.2% 2.1%
----------------------------------------------------------------------------------------------------
Exchange rate (USD/Yen) (Y)120 (Y)120 (Y)120 (Y)120 (Y)120 (Y)120
----------------------------------------------------------------------------------------------------
17
15. Employees' Retirement Benefits
(1) Benefit obligation
(in millions of yen)
--------------------------------------------------------------------------------------------
As of
September 30,
2003
--------------------------------------------------------------------------------------------
Projected benefits obligation at beginning of the period (A-B+C+D+G+J) 1,205,544
Discount rate:
Domestic subsidiaries 1.1% to 1.9%, Overseas subsidiaries
5.5% to 7.25%
-----------------------------------------------------------------------------------------
Fair value of plan assets at beginning of the period (A) 780,934
-----------------------------------------------------------------------------------------
Prepaid pension cost at beginning of the period (B) 90,562
-----------------------------------------------------------------------------------------
Reserve for employees' retirement benefits at beginning
of the period (C) 37,015
-----------------------------------------------------------------------------------------
Unrecognized net obligation by the change of accounting
policy at beginning of the period (D) 36,312
--------------------------------------------------------------------------------------
Amortization for the current period (Amortized period
mainly 5 years) (E) 11,827
--------------------------------------------------------------------------------------
Unrecognized net obligation at end of the interim
period (F) 24,485
-----------------------------------------------------------------------------------------
Unrecognized prior service cost at beginning of the period (G) (50,965)
--------------------------------------------------------------------------------------
Amortization for the current period (Amortized period
mainly 10 years) (H) (11,048)
--------------------------------------------------------------------------------------
Unrecognized prior service cost at end of the interim
period (I) (39,916)
-----------------------------------------------------------------------------------------
Unrecognized net actuarial (gain) loss at beginning of
the period (J) 492,810
--------------------------------------------------------------------------------------
Amortization for the current period (Amortized period
mainly 10 years) (K) 107,044
--------------------------------------------------------------------------------------
Unrecognized net actuarial (gain) loss at end of the
interim period (L) 385,765
--------------------------------------------------------------------------------------------
Net amount unrecognized at beginning of period (M)(D+G+J) 478,157
--------------------------------------------------------------------------------------------
Net amount amortized during the period (N)(E+H+K) 107,823
--------------------------------------------------------------------------------------------
Net amount unrecognized at end of period (O)(M-N) 370,334
--------------------------------------------------------------------------------------------
Note: 1. Discount rates of The Bank of Tokyo Mitsubishi, Ltd. and The
Mitsubishi Trust and Banking Corporation are 1.9%.
2. With respect to the transfer of the substitutional portion of future
pension obligations, the amortization of unrecognized amount due to
application of the transitional measurement prescribed in the
"Practical Guidelines for Accounting for Retirement Benefits (Interim
Report)" are included in the net amount amortized during the period.
3. The amounts of unrecognized prior service cost and unrecognized net
actuarial loss recognized during the interim period are included in at
beginning of the period.
(2) Net periodic pension cost
(in millions of yen)
--------------------------------------------------------------------------
For the six months ended
September 30, 2003
--------------------------------------------------------------------------
Net periodic cost of the employees' retirement
benefits 47,267
-----------------------------------------------------------------------
Service cost 15,186
-----------------------------------------------------------------------
Interest cost 12,554
-----------------------------------------------------------------------
Expected return on plan assets (14,755)
-----------------------------------------------------------------------
Amortization of net obligation at transition 8,772
-----------------------------------------------------------------------
Amortization of prior service cost (2,452)
-----------------------------------------------------------------------
Amortization of net actuarial loss 22,864
-----------------------------------------------------------------------
Other 5,097
--------------------------------------------------------------------------
18
16. Earning Projections for the Fiscal Year Ending March 31, 2004
[Consolidated] (in billions of yen)
--------------------------------------------------------------------------
For the year ending For the six months ended
March 31, 2004 September 30, 2003
--------------------------------------------------------------------------
Ordinary income 2,700.0 1,360.9
--------------------------------------------------------------------------
Ordinary profit 530.0 273.4
--------------------------------------------------------------------------
Net income 425.0 301.8
--------------------------------------------------------------------------
[Non consolidated] (in billions of yen)
--------------------------------------------------------------------------
For the year ending For the six months ended
March 31, 2004 September 30, 2003
--------------------------------------------------------------------------
Operating income 69.0 42.4
--------------------------------------------------------------------------
Ordinary profit 64.0 40.2
--------------------------------------------------------------------------
Net income 64.0 40.3
--------------------------------------------------------------------------
19
MTFG
-------------------------------------------
Selected Interim Financial Information
under Japanese GAAP
For the Fiscal Year Ending March 31, 2004
-------------------------------------------
The Bank of Tokyo-Mitsubishi, Ltd.
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
[Contents]
1 Interim Financial Highlights under Japanese GAAP for the Fiscal Year Ending
March 31, 2004
1. Consolidated Balance Sheets 20
2. Consolidated Statements of Operations 21
3. Consolidated Statement of Capital Surplus and Retained Earnings 22
4. Non-Consolidated Balance Sheets 23
5. Non-Consolidated Statements of Operations 24
6. Notional principal or contract amount, market value and valuation
gains (losses) on derivatives 25
[Consolidated]
7. Financial Results [Consolidated], [Non-Consolidated] 28
8. Average interest rate spread [Non-Consolidated] 30
9. Valuation Differences on Securities [Consolidated], [Non-Consolidated] 30
10. Risk-Adjusted Capital Ratio Based on the Standards of the BIS
[Consolidated], [Non-Consolidated] 31
2 Loan Portfolio and Other
1. Risk-Monitored Loans [Consolidated], [Non-Consolidated] 32
2. Classification of Risk-Monitored Loans
[Consolidated] 33
3. Allowance for Loan Losses [Consolidated], [Non-Consolidated] 34
4. Coverage Ratio against Risk-Monitored Loans
[Consolidated], [Non-Consolidated] 34
5. Disclosed Claims under the Financial Reconstruction Law (the "FRL")
[Non-Consolidated] 35
6. Status of Secured Coverage on Disclosed Claims under the FRL
[Non-Consolidated] 35
7. Progress in the Disposal of Problem Assets
[Non-Consolidated] 36
8. Classification of Loans by Type of Industry
[Non-Consolidated] 40
9. Loans and Deposits [Non-Consolidated] 41
10. Domestic Deposits [Non-Consolidated] 41
11. Number of Employees [Non-Consolidated] 41
12. Number of Offices [Non-Consolidated] 41
13. Status of Deferred Tax Assets [Non-Consolidated] 42
14. Employees' Retirement Benefits [Non-Consolidated] 43
15. Earning Projections for the Fiscal Year Ending March 31, 2004
[Consolidated], [Non-Consolidated] 44
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
1 Interim Financial Highlights under Japanese GAAP for the Fiscal Year Ending
March 31, 2004
(Japanese GAAP)
1. Consolidated Balance Sheets
================================================================================================================================
Increase/ As of Increase/
As of September 30, (Decrease) March 31, (Decrease)
(in millions of yen) 2003(A) 2002(B) (A) - (B) 2003(C) (A) - (C)
================================================================================================================================
Assets:
Cash and due from banks 9,157,554 5,682,723 3,474,830 7,366,450 1,791,103
Call loans and bills bought 947,232 771,207 176,024 678,407 268,825
Receivables under resale agreements 580,316 1,028,771 (448,455) 576,814 3,502
Receivables under securities borrowing transactions 4,633,877 1,438,229 3,195,648 1,561,391 3,072,486
Commercial paper and other debt purchased 1,144,590 520,074 624,516 484,195 660,395
Trading assets 6,093,002 5,062,812 1,030,190 5,276,242 816,760
Money held in trust 460,078 323,554 136,523 405,882 54,195
Investment securities 16,256,667 16,301,106 (44,438) 16,600,079 (343,411)
Allowance for losses on investment securities (2,856) (4,125) 1,268 (2,067) (789)
Loans and bills discounted 37,933,075 38,142,802 (209,726) 38,668,577 (735,501)
Foreign exchanges 577,097 600,159 (23,062) 594,767 (17,670)
Other assets 3,331,415 2,173,366 1,158,048 2,067,540 1,263,874
Premises and equipment 764,385 823,145 (58,760) 801,917 (37,532)
Deferred debenture discounts and other costs -- 30 (30) 9 (9)
Deferred tax assets 780,828 858,781 (77,953) 1,008,726 (227,898)
Customers' liabilities for acceptances and
guarantees 4,501,685 4,952,501 (450,815) 4,518,715 (17,030)
Allowance for loan losses (774,485) (1,122,543) 348,058 (1,016,265) 241,779
--------------------------------------------------------------------------------------------------------------------------------
Total assets 86,384,465 77,552,596 8,831,868 79,591,387 6,793,077
================================================================================================================================
Liabilities:
Deposits 54,991,383 49,471,557 5,519,825 52,095,330 2,896,052
Negotiable certificates of deposit 2,681,475 1,779,897 901,577 2,625,077 56,398
Debentures 517,498 1,198,394 (680,896) 636,060 (118,561)
Call money and bills sold 3,979,533 2,319,399 1,660,134 3,013,869 965,663
Payables under repurchase agreements 3,225,214 3,091,593 133,621 2,828,308 396,905
Payables under securities lending transactions 2,480,041 1,805,370 674,670 1,996,214 483,826
Commercial paper 295,989 368,040 (72,051) 312,208 (16,219)
Trading liabilities 1,550,401 1,818,463 (268,061) 1,455,493 94,907
Borrowed money 1,255,183 1,453,198 (198,014) 1,303,831 (48,648)
Foreign exchanges 903,761 628,159 275,601 512,676 391,084
Short-term corporate bonds 213,500 -- 213,500 10,000 203,500
Bonds and notes 3,441,293 3,075,318 365,974 3,188,379 252,913
Bonds with warrants 50,528 540,775 (490,247) 50,528 --
Other liabilities 2,843,206 2,188,628 654,577 2,166,328 676,877
Reserve for employees' bonuses 13,340 12,802 538 12,531 809
Reserve for employees' retirement benefits 29,084 24,840 4,243 26,429 2,655
Reserve for losses on real estate-collateralized
loans sold -- 1,687 (1,687) -- --
Reserve for expenses related to EXPO 2005 Japan 64 -- 64 31 33
Reserves under special laws 1,049 540 508 799 249
Deferred tax liabilities 65,586 53,937 11,649 61,037 4,549
Deferred tax liabilities on land revaluation excess 126,697 126,371 325 133,453 (6,756)
Acceptances and guarantees 4,501,685 4,952,501 (450,815) 4,518,715 (17,030)
--------------------------------------------------------------------------------------------------------------------------------
Total liabilities 83,166,517 74,911,480 8,255,036 76,947,306 6,219,211
--------------------------------------------------------------------------------------------------------------------------------
Minority interest 348,976 337,590 11,385 330,812 18,163
--------------------------------------------------------------------------------------------------------------------------------
Shareholder's equity:
Capital stock 871,973 785,969 86,003 871,973 --
Capital surplus 681,928 595,925 86,003 681,928 --
Retained earnings 1,075,158 837,738 237,420 858,177 216,980
Land revaluation excess 186,667 206,289 (19,622) 197,489 (10,822)
Unrealized gains (losses) on securities available
for sale 109,159 (47,328) 156,487 (227,826) 336,985
Foreign currency translation adjustments (55,914) (75,067) 19,152 (68,474) 12,559
--------------------------------------------------------------------------------------------------------------------------------
Total shareholder's equity 2,868,971 2,303,525 565,446 2,313,268 555,703
--------------------------------------------------------------------------------------------------------------------------------
Total liabilities, minority interest and
shareholder's equity 86,384,465 77,552,596 8,831,868 79,591,387 6,793,077
================================================================================================================================
20
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
2. Consolidated Statements of Operations
=======================================================================================================================
For the six months ended Increase/ For the year ended
September 30, (Decrease) March 31, 2003
(in millions of yen) 2003(A) 2002(B) (A) - (B)
=======================================================================================================================
Ordinary income:
Interest income: 603,955 712,144 (108,188) 1,347,905
Interest on loans and discounts 402,930 451,593 (48,663) 886,442
Interest and dividends on securities 92,911 105,417 (12,505) 216,381
Other interest income 108,113 155,133 (47,019) 245,082
Trust fees 8,622 9,401 (778) 18,515
Fees and commissions 207,171 177,676 29,495 377,440
Trading profits 75,464 53,480 21,984 76,654
Other business income 124,903 111,218 13,684 218,914
Other ordinary income 63,680 79,451 (15,770) 146,742
-----------------------------------------------------------------------------------------------------------------------
Total ordinary income 1,083,798 1,143,372 (59,574) 2,186,174
-----------------------------------------------------------------------------------------------------------------------
Ordinary expenses:
Interest expense: 180,704 290,445 (109,740) 491,872
Interest on deposits 70,975 93,290 (22,314) 183,936
Interest on debentures and amortization
of debenture discounts 2,312 5,707 (3,394) 8,504
Other interest expense 107,415 191,447 (84,032) 299,431
Fees and commissions 31,144 30,117 1,026 66,074
Trading losses 5,389 11,185 (5,795) --
Other business expenses 81,745 37,575 44,169 72,104
General and administrative expenses 426,162 416,701 9,461 855,093
Other ordinary expenses 152,464 509,797 (357,332) 973,652
-----------------------------------------------------------------------------------------------------------------------
Total ordinary expenses 877,612 1,295,823 (418,210) 2,458,796
-----------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) 206,186 (152,450) 358,636 (272,622)
-----------------------------------------------------------------------------------------------------------------------
Special gains 239,472 21,969 217,502 39,919
Special losses 10,304 13,374 (3,070) 24,658
-----------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes and others 435,354 (143,855) 579,209 (257,361)
-----------------------------------------------------------------------------------------------------------------------
Income taxes-current 44,584 34,097 10,486 54,906
Income taxes-deferred 130,817 (25,646) 156,464 (178,443)
Minority interest 23,332 5,034 18,298 4,293
-----------------------------------------------------------------------------------------------------------------------
Net income (loss) 236,619 (157,341) 393,960 (138,117)
=======================================================================================================================
21
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
3. Consolidated Statement of Capital Surplus and Retained Earnings
==========================================================================================================================
Increase/ As of
As of September 30, (Decrease) March 31,
(in millions of yen) 2003(A) 2002(B) (A) - (B) 2003(C)
==========================================================================================================================
Balance of capital surplus at beginning of period 681,928 595,925 86,003 595,925
Increase: -- -- -- 86,003
Issuance of common stock due to capital increase -- -- -- 86,003
--------------------------------------------------------------------------------------------------------------------------
Balance of capital surplus at end of period 681,928 595,925 86,003 681,928
--------------------------------------------------------------------------------------------------------------------------
Balance of retained earnings at beginning of period 858,177 1,026,305 (168,127) 1,026,305
Increase: 247,441 5,805 241,636 7,021
Net income 236,619 -- 236,619 --
Reduction in land revaluation excess 10,822 3,066 7,755 4,130
Change in ownership percentage to a consolidated subsidiary
due to stock repurchase by the subsidiary -- 2,738 (2,738) 2,648
Decrease in consolidated companies accounted for by the
equity method -- -- -- 242
Decrease: (30,460) (194,371) 163,910 (175,148)
Net loss -- (157,341) 157,341 (138,117)
Cash dividends (30,457) (17,384) (13,073) (17,384)
Bonuses to directors of consolidated subsidiaries (3) (3) (0) (3)
Change in ownership percentage to consolidated subsidiaries
and a company accounted for by the equity method due to
their merger -- (15,896) 15,896 (15,896)
Increase in consolidated subsidiaries and companies
accounted for by the equity method -- (3,746) 3,746 (3,746)
--------------------------------------------------------------------------------------------------------------------------
Balance of retained earnings at end of period 1,075,158 837,738 237,420 858,177
==========================================================================================================================
22
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
4. Non-Consolidated Balance Sheets
================================================================================================================================
Increase/ As of Increase/
As of September 30, (Decrease) March 31, (Decrease)
(in millions of yen) 2003(A) 2002(B) (A) - (B) 2003(C) (A) - (C)
================================================================================================================================
Assets:
Cash and due from banks 8,646,356 5,511,564 3,134,792 7,107,314 1,539,041
Call loans 787,828 649,635 138,192 478,160 309,667
Receivables under resale agreements 57,964 90,258 (32,293) 156,108 (98,144)
Receivables under securities borrowing
transactions 3,103,441 786,853 2,316,587 787,680 2,315,760
Commercial paper and other debt purchased 286,902 355,718 (68,816) 293,492 (6,589)
Trading assets 4,456,764 4,014,899 441,864 4,150,726 306,037
Money held in trust 407,977 288,981 118,996 365,381 42,595
Investment securities 16,038,996 15,951,226 87,769 16,351,043 (312,046)
Allowance for losses on investment
securities (2,856) (4,125) 1,268 (2,067) (789)
Loans and bills discounted 34,260,461 34,163,445 97,015 34,724,836 (464,375)
Foreign exchanges 584,631 608,187 (23,556) 603,344 (18,713)
Other assets 2,487,755 1,467,973 1,019,781 1,247,816 1,239,939
Premises and equipment 612,419 660,011 (47,592) 637,663 (25,244)
Deferred debenture discounts and other costs -- 18 (18) -- --
Deferred tax assets 786,838 889,466 (102,628) 1,018,553 (231,715)
Customers' liabilities for acceptances and
guarantees 3,708,476 4,672,858 (964,382) 3,795,648 (87,172)
Allowance for loan losses (579,522) (903,592) 324,070 (809,374) 229,851
--------------------------------------------------------------------------------------------------------------------------------
Total assets 75,644,432 69,203,381 6,441,051 70,906,329 4,738,103
================================================================================================================================
Liabilities:
Deposits 50,397,958 45,715,654 4,682,304 47,827,174 2,570,784
Negotiable certificates of deposit 2,766,399 1,800,029 966,369 2,720,083 46,315
Debentures 517,498 1,198,694 (681,196) 636,060 (118,561)
Call money 1,669,275 1,588,388 80,887 2,364,965 (695,690)
Payables under repurchase agreements 2,564,436 2,079,826 484,610 2,149,826 414,609
Payables under securities lending transactions 1,014,511 1,556,867 (542,356) 1,273,929 (259,418)
Bills sold 2,113,200 593,300 1,519,900 576,500 1,536,700
Commercial paper -- 105,700 (105,700) 15,000 (15,000)
Trading liabilities 921,379 1,293,586 (372,206) 1,273,940 (352,560)
Borrowed money 1,592,983 1,672,654 (79,671) 1,588,979 4,003
Foreign exchanges 905,401 632,379 273,022 514,781 390,620
Short-term corporate bonds 213,500 -- 213,500 10,000 203,500
Bonds and notes 2,438,260 2,070,405 367,855 2,203,400 234,860
Bonds with warrants -- 245,123 (245,123) -- --
Other liabilities 1,918,821 1,574,827 343,993 1,588,857 329,963
Reserve for employees' bonuses 6,515 7,439 (924) 6,945 (429)
Reserve for employees' retirement benefits 9,914 5,743 4,171 6,691 3,223
Reserve for losses on real
estate-collateralized loans sold -- 1,687 (1,687) -- --
Reserve for financial assistance to specific
borrowers 1,371 10,336 (8,965) -- 1,371
Reserve for expenses related to EXPO 2005 Japan 64 -- 64 31 33
Reserves under special laws 31 58 (26) 58 (26)
Deferred tax liabilities on land revaluation excess 126,697 126,371 325 133,453 (6,756)
Acceptances and guarantees 3,708,476 4,672,858 (964,382) 3,795,648 (87,172)
--------------------------------------------------------------------------------------------------------------------------------
Total liabilities 72,886,696 66,951,931 5,934,765 68,686,327 4,200,368
--------------------------------------------------------------------------------------------------------------------------------
Shareholder's equity:
Capital stock 871,973 785,969 86,003 871,973 --
Capital surplus 681,928 595,925 86,003 681,928 --
Capital reserve 681,928 595,925 86,003 681,928 --
Retained earnings 923,101 724,210 198,891 712,972 210,129
Revenue reserve 190,044 190,044 -- 190,044 --
Voluntary reserves 475,701 592,908 (117,206) 592,908 (117,206)
Unappropriated profit 257,355 (58,742) 316,097 (69,979) 327,335
Net income 229,764 (79,815) 309,579 (92,116) 321,881
Land revaluation excess 186,740 206,360 (19,620) 197,563 (10,822)
Unrealized gains (losses) on securities available
for sale 93,992 (61,015) 155,007 (244,435) 338,427
--------------------------------------------------------------------------------------------------------------------------------
Total shareholder's equity 2,757,736 2,251,449 506,286 2,220,001 537,734
--------------------------------------------------------------------------------------------------------------------------------
Total liabilities, minority interest and
shareholder's equity 75,644,432 69,203,381 6,441,051 70,906,329 4,738,103
================================================================================================================================
23
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
5. Non-Consolidated Statements of Operations
=======================================================================================================================
For the six months ended Increase/
September 30, (Decrease) For the year ended
(in millions of yen) 2003(A) 2002(B) (A) - (B) March 31, 2003
=======================================================================================================================
Ordinary income:
Interest income: 457,325 550,839 (93,514) 1,034,757
Interest on loans and discounts 288,121 326,177 (38,055) 635,436
Interest and dividends on securities 89,064 86,962 2,102 191,193
Fees and commissions 97,727 89,221 8,505 186,807
Trading profits 33,116 30,147 2,969 49,467
Other business income 128,722 103,771 24,951 211,157
Other ordinary income 59,892 83,813 (23,920) 129,082
-----------------------------------------------------------------------------------------------------------------------
Total ordinary income 776,784 857,792 (81,008) 1,611,272
-----------------------------------------------------------------------------------------------------------------------
Ordinary expenses:
Interest expense: 138,823 231,968 (93,145) 381,843
Interest on deposits 55,706 81,391 (25,684) 148,216
Interest on debentures and amortization of
debenture discounts 2,312 5,631 (3,319) 8,413
Fees and commissions 24,369 27,210 (2,840) 53,833
Trading losses 4,920 -- 4,920 --
Other business expenses 82,293 31,961 50,431 70,110
General and administrative expenses 256,642 258,738 (2,096) 508,060
Other ordinary expenses 120,635 461,291 (340,655) 897,463
-----------------------------------------------------------------------------------------------------------------------
Total ordinary expenses 627,783 1,011,170 (383,387) 1,911,312
-----------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) 149,001 (153,377) 302,379 (300,040)
-----------------------------------------------------------------------------------------------------------------------
Special gains 246,160 18,626 227,534 33,532
Special losses 9,171 10,972 (1,801) 20,825
-----------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes and others 385,990 (145,723) 531,714 (287,333)
-----------------------------------------------------------------------------------------------------------------------
Income taxes-current 27,861 17,851 10,010 22,925
Income taxes-deferred 128,365 (83,759) 212,124 (218,141)
-----------------------------------------------------------------------------------------------------------------------
Net income (loss) 229,764 (79,815) 309,579 (92,116)
-----------------------------------------------------------------------------------------------------------------------
Unappropriated retained earnings brought forward 16,769 18,006 (1,237) 18,006
Reduction in land revaluation excess 10,822 3,066 7,755 4,130
Unappropriated retained earnings 257,355 (58,742) 316,097 (69,979)
=======================================================================================================================
24
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
6. Notional principal or contract amount, market value and valuation gains
(losses) on derivatives
a. Interest rate-related transactions
(in millions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
---------------------------------------------------
Notional principal Valuation gains
or contract amount Market value (losses)
-------------------------------------------------------------------------------
Exchange-traded
----------------------------------------------------------------------------
Futures 14,060,343 (13,283) (13,283)
----------------------------------------------------------------------------
Options 22,021,680 1,398 851
-------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
FRAs 4,290,049 (2,216) (2,216)
----------------------------------------------------------------------------
Swaps 211,025,812 91,790 91,790
----------------------------------------------------------------------------
Others 10,766,900 3,665 10,458
-------------------------------------------------------------------------------
Total 81,353 87,599
-------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the above table.
b. Foreign exchange-related transactions
(in millions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
-------------------------------------------------------------------------------
Notional principal Valuation gains
amount Market value (losses)
-------------------------------------------------------------------------------
Exchange-traded
----------------------------------------------------------------------------
Futures 5,736 -- --
----------------------------------------------------------------------------
Options -- -- --
-------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Swaps 8,697,795 (31,579) (31,579)
----------------------------------------------------------------------------
Forward contracts 39,816,751 (58,805) (58,805)
----------------------------------------------------------------------------
Options 8,282,699 (3,728) 15,288
-------------------------------------------------------------------------------
Total (94,113) (75,096)
-------------------------------------------------------------------------------
Notes: 1. Valuation gains (losses) are recognized in the consolidated statement
of operations. Derivatives which qualify for hedge-accounting are not
included in the above table.
2. Forward exchange contracts and currency options are included in the
above table from this interim fiscal year.
3. Currency swaps which are accounted for by an accrual basis are not
included in the above table.
c. Equity-related transactions (in millions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
---------------------------------------------------
Notional principal Valuation gains
or contract amount Market value (losses)
-------------------------------------------------------------------------------
Exchange-traded
----------------------------------------------------------------------------
Futures 69,132 129 129
----------------------------------------------------------------------------
Options 18,477 179 91
-------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Options 58,442 536 241
----------------------------------------------------------------------------
Index swaps 38 -- --
----------------------------------------------------------------------------
Index forwards 1,705 (4) (4)
-------------------------------------------------------------------------------
Total 840 457
-------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations.
25
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
d. Bond-related transactions (in millions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
---------------------------------------------------
Notional principal Valuation gains
or contract amount Market value (losses)
-------------------------------------------------------------------------------
Exchange-traded
----------------------------------------------------------------------------
Futures 1,273,639 (2,033) (2,033)
----------------------------------------------------------------------------
Options 172,941 (86) 324
-------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Options 1,485,328 (898) 98
----------------------------------------------------------------------------
Total (3,018) (1,611)
-------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the above table.
e. Commodity-related transactions (in millions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
---------------------------------------------------
Notional principal Valuation gains
or contract amount Market value (losses)
-------------------------------------------------------------------------------
Exchange-traded
----------------------------------------------------------------------------
Futures 5,957 384 384
----------------------------------------------------------------------------
Options 348 (18) (12)
-------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Options 266,091 (173) (173)
----------------------------------------------------------------------------
Swaps 39,847 1,090 734
-------------------------------------------------------------------------------
Total 1,282 933
-------------------------------------------------------------------------------
Notes: 1. Valuation gains (losses) are recognized in the consolidated statement
of operations.
2. Commodities are primarily related to petroleum.
f. Credit derivatives (in millions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
---------------------------------------------------
Notional principal
or contract amount Market value Valuation gains
-------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Credit default options 900,418 29,104 29,104
-------------------------------------------------------------------------------
Note: Valuation gains are recognized in the consolidated statement of
operations.
g. Others (in millions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
---------------------------------------------------
Notional principal
or contract amount Market value Valuation gains
-------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Weather derivatives 490 (19) 20
-------------------------------------------------------------------------------
Note: Valuation gains are recognized in the consolidated statement of
operations.
26
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
[Reference]
1. Derivatives qualified for hedge-accounting [Consolidated]
(in billions of yen)
----------------------------------------------------------------
As of September 30, 2003
----------------------------------------------------------------
Notional principal
or contract amount Market value
----------------------------------------------------------------
Interest rate futures 4,268.8 (6.4)
----------------------------------------------------------------
Interest rate swaps 20,465.3 86.1
----------------------------------------------------------------
Currency swaps 2,593.9 27.2
----------------------------------------------------------------
Other interest rate-related
transactions 3.9 0.0
----------------------------------------------------------------
Others 350.7 (0.0)
----------------------------------------------------------------
Total 106.8
----------------------------------------------------------------
Note : Derivatives which are accounted for on an accrual basis based on
"Accounting standard for financial instruments" are not included in the
table above.
Notional principal by the remaining life of the interest rate swaps above is as
follows:
(in billions of yen)
------------------------------------------------------------------------------
As of September 30, 2003
------------------------------------------------
Due after 1
Due within year through Due after
1 year 5 years 5 years Total
------------------------------------------------------------------------------
Receive-fix/pay-floater 6,118.5 7,608.8 871.5 14,598.9
------------------------------------------------------------------------------
Receive floater/pay-fix 2,697.3 2,154.3 991.9 5,843.6
------------------------------------------------------------------------------
Receive floater/pay-floater 12.7 -- 10.0 22.7
------------------------------------------------------------------------------
Total 8,828.6 9,763.1 1,873.5 20,465.3
------------------------------------------------------------------------------
2. Deferred gains (losses) [Consolidated]
(in billions of yen)
-------------------------------------------------------------------------------
As of September 30, 2003
---------------------------------------------------
Deferred gains Deferred losses Net gains (losses)
(A) (B) (A) - (B)
-------------------------------------------------------------------------------
Interest rate futures 31.4 29.8 1.5
-------------------------------------------------------------------------------
Interest rate swaps 278.4 275.9 2.4
-------------------------------------------------------------------------------
Currency swaps 39.1 34.4 4.6
-------------------------------------------------------------------------------
Other interest rate-
related transactions 3.7 3.3 0.3
-------------------------------------------------------------------------------
Others 23.0 25.4 (2.4)
-------------------------------------------------------------------------------
Total 375.6 369.1 6.5
-------------------------------------------------------------------------------
Note : Deferred gains (losses) attributable to the macro hedge accounting as of
September 30, 2003 are included in the above table.
27
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
7. Financial Results (The Bank of Tokyo-Mitsubishi, Ltd. and Consolidated
Subsidiaries)
(in millions of yen)
===============================================================================================================
Six months ended Increase/ Six months ended
September 30, (Decrease) September 30,
2003 (A) (A) - (B) 2002 (B)
===============================================================================================================
Gross profits 722,151 26,678 695,473
------------------------------------------------------------------------------------------------------------
Net interest income 424,269 1,694 422,574
------------------------------------------------------------------------------------------------------------
Trust fees 8,622 (778) 9,401
------------------------------------------------------------------------------------------------------------
Net fees and commissions 176,026 28,468 147,558
------------------------------------------------------------------------------------------------------------
Net trading profits 70,074 27,779 42,295
------------------------------------------------------------------------------------------------------------
Net other business income 43,157 (30,485) 73,643
---------------------------------------------------------------------------------------------------------
Net gains on debt securities (16,876) (47,208) 30,332
---------------------------------------------------------------------------------------------------------------
General and administrative expenses 401,872 6,688 395,184
---------------------------------------------------------------------------------------------------------------
Net business profits before provision for formula
allowance for loan losses 320,278 19,990 300,288
---------------------------------------------------------------------------------------------------------------
Provision for formula allowance for loan losses (1) -- (58,147) 58,147
---------------------------------------------------------------------------------------------------------------
Net business profits* 320,278 78,137 242,141
---------------------------------------------------------------------------------------------------------------
Net non-recurring losses (114,092) 280,499 (394,591)
------------------------------------------------------------------------------------------------------------
Credit related costs (2) (84,402) 45,001 (129,404)
---------------------------------------------------------------------------------------------------------
Losses on loan charge-offs (46,957) 45,079 (92,036)
---------------------------------------------------------------------------------------------------------
Provision for specific allowance for loan losses -- (9,354) 9,354
---------------------------------------------------------------------------------------------------------
Losses on sales of loans to the Resolution and
Collection Corporation (14,020) 28,413 (42,433)
---------------------------------------------------------------------------------------------------------
Other credit related costs (23,424) (19,135) (4,289)
------------------------------------------------------------------------------------------------------------
Net losses on equity securities (11,282) 164,169 (175,451)
---------------------------------------------------------------------------------------------------------
Gains on sales of equity securities 30,464 (9,941) 40,405
---------------------------------------------------------------------------------------------------------
Losses on sales of equity securities (40,107) 19,467 (59,575)
---------------------------------------------------------------------------------------------------------
Losses on write down of equity securities (1,638) 154,643 (156,282)
------------------------------------------------------------------------------------------------------------
Equity in loss of affiliates (771) 6,979 (7,751)
------------------------------------------------------------------------------------------------------------
Other (17,635) 64,348 (81,983)
===============================================================================================================
Ordinary profit (loss) 206,186 358,636 (152,450)
===============================================================================================================
Net special gains 229,167 220,573 8,594
------------------------------------------------------------------------------------------------------------
Reversal of allowance for loan losses (3) 166,175 166,175 --
------------------------------------------------------------------------------------------------------------
Refund of enterprise taxes by the Tokyo Metropolitan
Government 32,117 32,117 --
------------------------------------------------------------------------------------------------------------
Gains on transfer of the substitutional portion of
future pension obligations 26,503 26,503 --
------------------------------------------------------------------------------------------------------------
Gain on loans charged-off (4) 12,535 (6,872) 19,407
---------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes and others 435,354 579,209 (143,855)
---------------------------------------------------------------------------------------------------------------
Income taxes-current 44,584 10,486 34,097
---------------------------------------------------------------------------------------------------------------
Income taxes-deferred 130,817 156,464 (25,646)
---------------------------------------------------------------------------------------------------------------
Minority interest 23,332 18,298 5,034
===============================================================================================================
Net income (loss) 236,619 393,960 (157,341)
===============================================================================================================
Note:
* Net business profits = Net business profits of The Bank of Tokyo-Mitsubishi,
Ltd. + Other consolidated entities' gross profits - Other consolidated
entities' general and administrative expenses - Other consolidated entities'
provision for formula allowance for loan losses - Inter-company transactions.
(Reference)
===============================================================================================================
Total credit costs (1)+(2)+(3) (81,772) (269,324) 187,552
===============================================================================================================
===============================================================================================================
Total credit costs + Gain on loans charged-off
(1)+(2)+(3)+(4) (94,307) (262,452) 168,144
===============================================================================================================
===============================================================================================================
Number of consolidated subsidiaries 144 (14) 158
---------------------------------------------------------------------------------------------------------------
Number of affiliated companies accounted for by the
equity method 23 (2) 25
===============================================================================================================
28
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
Financial Results (The Bank of Tokyo-Mitsubishi, Ltd.)
(in millions of yen)
============================================================================================
Six months Six months
ended Increase/ ended
September 30, (Decrease) September 30,
2003 (A) (A) - (B) 2002 (B)
============================================================================================
Gross profits 467,403 (16,311) 483,715
-----------------------------------------------------------------------------------------
Domestic gross profits 222,433 (35,447) 257,881
--------------------------------------------------------------------------------------
Net interest income 208,647 3,241 205,405
--------------------------------------------------------------------------------------
Net fees and commissions 43,472 12,126 31,346
--------------------------------------------------------------------------------------
Net trading profits 1,782 (9,362) 11,144
--------------------------------------------------------------------------------------
Net other business income (31,469) (41,453) 9,984
-----------------------------------------------------------------------------------
Net gains (losses) on debt securities (22,995) (36,211) 13,215
-----------------------------------------------------------------------------------------
Non-domestic gross profits 244,969 19,136 225,833
--------------------------------------------------------------------------------------
Net interest income 110,872 (3,468) 114,340
--------------------------------------------------------------------------------------
Net fees and commissions 29,884 (780) 30,664
--------------------------------------------------------------------------------------
Net trading profits 26,413 7,410 19,002
--------------------------------------------------------------------------------------
Net other business income 77,799 15,973 61,825
-----------------------------------------------------------------------------------
Net gains on debt securities 4,903 (12,564) 17,468
--------------------------------------------------------------------------------------------
General and administrative expenses 232,351 (4,869) 237,221
-----------------------------------------------------------------------------------------
Personnel expenses 89,505 (3,971) 93,476
-----------------------------------------------------------------------------------------
Non-personnel expenses 130,279 (2,084) 132,364
-----------------------------------------------------------------------------------------
Taxes 12,566 1,185 11,381
--------------------------------------------------------------------------------------------
Net business profits before
provision for formula allowance for loan losses 235,051 (11,441) 246,493
--------------------------------------------------------------------------------------------
Provision for formula allowance for loan
losses (1) -- (59,531) 59,531
--------------------------------------------------------------------------------------------
Net business profits 235,051 48,089 186,962
--------------------------------------------------------------------------------------------
Net non-recurring losses (86,050) 254,289 (340,340)
-----------------------------------------------------------------------------------------
Credit related costs (2) (61,972) 34,743 (96,715)
--------------------------------------------------------------------------------------
Losses on loan charge-offs (23,696) 65,225 (88,921)
--------------------------------------------------------------------------------------
Provision for specific allowance for loan
losses -- (40,222) 40,222
--------------------------------------------------------------------------------------
Losses on sale of domestic bad loans and
similar claims (17,181) 25,301 (42,483)
--------------------------------------------------------------------------------------
Losses on financial assistance to
subsidiaries (1,371) 9,081 (10,452)
--------------------------------------------------------------------------------------
Provision for allowance for loans to
specific foreign borrowers -- (12,157) 12,157
--------------------------------------------------------------------------------------
Other credit related costs (19,723) (12,483) (7,239)
--------------------------------------------------------------------------------------------
Net gains (losses) on equity securities 5,930 162,544 (156,613)
--------------------------------------------------------------------------------------
Gains on sales of equity securities 50,030 (11,396) 61,426
--------------------------------------------------------------------------------------
Losses on sales of equity securities (40,127) 19,401 (59,528)
--------------------------------------------------------------------------------------
Losses on write down of equity securities
and provision for allowance for losses on
investment securities (3,972) 154,539 (158,511)
-----------------------------------------------------------------------------------------
Others (30,009) 57,001 (87,010)
============================================================================================
Ordinary profit (loss) 149,001 302,379 (153,377)
============================================================================================
Net special gains 236,989 229,335 7,654
-----------------------------------------------------------------------------------------
Reversal of allowance for loan losses (3) 172,744 172,744 --
-----------------------------------------------------------------------------------------
Refund of enterprise taxes by the Tokyo
Metropolitan Government 32,117 32,117 --
-----------------------------------------------------------------------------------------
Gains on transfer of the substitutional
portion of future pension obligations 26,503 26,503 --
-----------------------------------------------------------------------------------------
Gain on loans charged-off (4) 12,790 (3,321) 16,111
--------------------------------------------------------------------------------------------
Income (loss) before income taxes 385,990 531,714 (145,723)
--------------------------------------------------------------------------------------------
Income taxes-current 27,861 10,010 17,851
--------------------------------------------------------------------------------------------
Income taxes-deferred 128,365 212,124 (83,759)
============================================================================================
Net income (loss) 229,764 309,579 (79,815)
============================================================================================
============================================================================================
Total credit costs (1)+(2)+(3) (110,772) (267,019) 156,247
============================================================================================
============================================================================================
Total credit costs + Gain on loans
charged-off (1)+(2)+(3)+(4) (123,562) (263,698) 140,135
============================================================================================
29
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
8. Average interest rate spread
[Non-Consolidated] (percentage per annum)
-------------------------------------------------------------------------------
For the six months ended
September 30, Increase/
------------------------ (Decrease)
2003(A) 2002(B) (A) - (B)
-------------------------------------------------------------------------------
Total average interest
rate on interest-earning assets (a) 1.55 1.89 (0.34)
----------------------------------------------------------------------------
Average interest rate on Loans and
bills discounted 1.67 1.88 (0.21)
----------------------------------------------------------------------------
Average interest rate on Investment
securities 0.94 1.03 (0.08)
-------------------------------------------------------------------------------
Total average interest rate on
interest-bearing liabilities (b) 1.17 1.56 (0.38)
----------------------------------------------------------------------------
Average interest rate on Deposits,
NCD and Debentures 0.23 0.36 (0.13)
----------------------------------------------------------------------------
Average interest rate on external
liabilities 0.98 1.32 (0.33)
-------------------------------------------------------------------------------
Total average interest rate spread
(a)-(b) 0.37 0.33 0.04
-------------------------------------------------------------------------------
Average interest rate spread in domestic
business segment: (percentage per annum)
-------------------------------------------------------------------------------
Total average interest rate on
interest-earning assets (a) 1.09 1.13 (0.03)
----------------------------------------------------------------------------
Average interest rate on Loans and
bills discounted 1.46 1.56 (0.10)
----------------------------------------------------------------------------
Average interest rate on Investment
securities 0.45 0.47 (0.01)
-------------------------------------------------------------------------------
Total average interest rate on
interest-bearing liabilities (b) 0.81 0.91 (0.10)
----------------------------------------------------------------------------
Average interest rate on
Deposits, NCD and Debentures 0.03 0.07 (0.03)
----------------------------------------------------------------------------
Average interest rate on external
liabilities 0.73 0.96 (0.22)
-------------------------------------------------------------------------------
Total average interest rate spread
(a)-(b) 0.28 0.22 0.06
-------------------------------------------------------------------------------
9. Valuation Differences on Securities
(1) Valuation method of securities
--------------------------------------------------------------------------------
Trading securities Market value (valuation differences are recorded as
profits or loses)
--------------------------------------------------------------------------------
Debt securities Amortized cost
being held to
maturity
--------------------------------------------------------------------------------
Securities Market value (valuation differences are included in
available for sale shareholders' equity, net of income taxes)
--------------------------------------------------------------------------------
(Reference) Securities in money held in trust
--------------------------------------------------------------------------------
Trading purposes Market value (valuation differences are recorded as
profits or loses)
--------------------------------------------------------------------------------
Being held to Amortized cost
maturity
--------------------------------------------------------------------------------
Other Market value (valuation differences are included in
shareholders' equity, net of income taxes)
--------------------------------------------------------------------------------
(2) Valuation differences
[Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of September 30, 2003 As of September 30, 2002 As of March 31, 2003
------------------------------------------------------------------------------------------------------------------------------------
Valuation differences Valuation differences Valuation differences
---------------------------------- ----------------- ---------------
(A) (A)-(B) (A)-(C) Gains Losses (B) Gains Losses (C) Gains Losses
------------------------------------------------------------------------------------------------------------------------------------
Debt securities being held
to maturity 1,954 674 13 1,955 0 1,279 1,358 79 1,940 1,942 1
----------------------------------------------------------------------------------------------------------------------------------
Securities available
for sale 184,682 263,658 431,626 482,353 297,671 (78,976) 388,217 467,194 (246,944) 298,039 544,984
-------------------------------------------------------------------------------------------------------------------------------
Domestic equity securities 212,969 336,443 503,374 409,682 196,713 (123,474) 278,540 402,014 (290,404) 168,888 459,293
-------------------------------------------------------------------------------------------------------------------------------
Domestic bonds (49,474) (97,452) (114,633) 11,793 61,267 47,977 48,951 973 65,158 67,259 2,100
-------------------------------------------------------------------------------------------------------------------------------
Other 21,187 24,667 42,885 60,878 39,690 (3,480) 60,725 64,206 (21,698) 61,892 83,590
----------------------------------------------------------------------------------------------------------------------------------
Total 186,636 264,333 431,639 484,308 297,672 (77,697) 389,576 467,273 (245,003) 299,982 544,985
-------------------------------------------------------------------------------------------------------------------------------
Domestic equity securities 212,969 336,443 503,374 409,682 196,713 (123,474) 278,540 402,014 (290,404) 168,888 459,293
-------------------------------------------------------------------------------------------------------------------------------
Domestic bonds (49,474) (97,452) (114,633) 11,793 61,267 47,977 48,951 973 65,158 67,259 2,100
-------------------------------------------------------------------------------------------------------------------------------
Other 23,141 25,342 42,898 62,833 39,691 (2,201) 62,084 64,285 (19,757) 63,834 83,591
------------------------------------------------------------------------------------------------------------------------------------
[Non-Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of September 30, 2003 As of September 30, 2002 As of March 31, 2003
------------------------------------------------------------------------------------------------------------------------------------
Valuation differences Valuation differences Valuation differences
---------------------------------- ----------------- ---------------
(A) (A)-(B) (A)-(C) Gains Losses (B) Gains Losses (C) Gains Losses
------------------------------------------------------------------------------------------------------------------------------------
Debt securities being held
to maturity 118 28 (168) 119 0 89 91 1 286 287 1
----------------------------------------------------------------------------------------------------------------------------------
Stock of subsidiaries and
affiliates 391,931 90,741 195,686 391,992 60 301,190 312,636 11,445 196,245 270,299 74,054
----------------------------------------------------------------------------------------------------------------------------------
Securities available for sale 157,546 255,927 434,703 450,214 292,668 (98,380) 359,506 457,887 (277,157) 259,275 536,432
-------------------------------------------------------------------------------------------------------------------------------
Domestic equity securities 208,488 330,526 499,018 404,742 196,253 (122,038) 272,706 394,744 (290,529) 163,410 453,940
-------------------------------------------------------------------------------------------------------------------------------
Domestic bonds (49,474) (97,452) (114,640) 11,792 61,267 47,977 48,951 973 65,165 67,259 2,094
-------------------------------------------------------------------------------------------------------------------------------
Other (1,467) 22,852 50,325 33,678 35,146 (24,320) 37,849 62,169 (51,793) 28,605 80,398
----------------------------------------------------------------------------------------------------------------------------------
Total 549,596 346,697 630,222 842,325 292,729 202,899 672,234 469,335 (80,626) 529,862 610,488
-------------------------------------------------------------------------------------------------------------------------------
Domestic equity securities 279,796 408,464 641,377 476,061 196,265 (128,668) 277,522 406,190 (361,581) 166,412 527,994
-------------------------------------------------------------------------------------------------------------------------------
Domestic bonds (49,474) (97,452) (114,640) 11,792 61,267 47,977 48,951 973 65,165 67,259 2,094
-------------------------------------------------------------------------------------------------------------------------------
Other 319,275 35,685 103,485 354,471 35,196 283,589 345,761 62,171 215,789 296,190 80,400
------------------------------------------------------------------------------------------------------------------------------------
30
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
10. Risk-Adjusted Capital Ratio Based on the Standards of the BIS
[Consolidated] (in billions of yen except percentages)
---------------------------------------------------------------------------------------------------
As of
September 30,
2003 (A) Increase/ Increase/ As of As of
(Preliminary (Decrease) (Decrease) September 30, March 31,
basis) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
(1) Risk-adjusted capital ratio 11.89% 1.46% 1.45% 10.43% 10.43%
(2) Tier 1 capital 2,882.2 456.3 481.9 2,425.8 2,400.2
(3) Tier 2 capital includable
as qualifying capital 2,438.9 42.8 147.5 2,396.0 2,291.3
i) The amount of unrealized
gains on investment
securities, includable
as qualifying capital 83.9 83.9 83.9 -- --
ii) The amount of land
revaluation excess
includable as qualifying
capital 140.9 (8.6) (7.9) 149.6 148.9
iii) Subordinated debt 1,669.4 (20.7) 88.2 1,690.2 1,581.1
(4) Tier 3 capital includable
as qualifying capital 29.9 0.1 (0.1) 29.8 30.0
(5) Deductions from total
qualifying capital 38.8 13.1 4.9 25.6 33.9
(6) Total qualifying capital
(2)+(3)+(4)-(5) 5,312.1 486.0 624.4 4,826.0 4,687.7
(7) Risk-adjusted assets 44,646.1 (1,623.0) (256.8) 46,269.2 44,903.0
---------------------------------------------------------------------------------------------------
[Non-Consolidated] (in billions of yen except percentages)
---------------------------------------------------------------------------------------------------
As of
September 30,
2003 (A) Increase/ Increase/ As of As of
(Preliminary (Decrease) (Decrease) September 30, March 31,
basis) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
(1) Risk-adjusted capital ratio 12.23% 2.08% 1.98% 10.14% 10.24%
(2) Tier 1 capital 2,458.5 413.4 466.6 2,045.0 1,991.9
(3) Tier 2 capital includable
as qualifying capital 2,229.0 213.9 260.4 2,015.0 1,968.5
i) The amount of unrealized
gains on investment
securities, includable
as qualifying capital 71.0 71.0 71.0 -- --
ii) The amount of land
revaluation excess
includable as qualifying
capital 141.0 (8.6) (7.9) 149.7 148.9
iii) Subordinated debt 1,621.3 (8.0) 92.0 1,629.4 1,529.3
(4) Tier 3 capital includable
as qualifying capital 18.7 (11.2) (4.6) 30.0 23.4
(5) Deductions from total
qualifying capital 5.0 0.3 0.3 4.7 4.6
(6) Total qualifying capital
(2)+(3)+(4)-(5) 4,701.2 615.8 722.0 4,085.4 3,979.2
(7) Risk-adjusted assets 38,436.9 (1,846.9) (410.3) 40,283.8 38,847.2
---------------------------------------------------------------------------------------------------
31
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
2 Loan Portfolio and Other
1. Risk-Monitored Loans
(Non-accrual loans, accruing loans contractually past due 3 months or more
and restructured loans)
[Consolidated]
(in millions of yen)
---------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
------------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 38,119 (44,191) (15,589) 82,311 53,709
------------------------------------------------------------------------------------------------
Past due loans 686,154 (442,824) (237,075) 1,128,978 923,229
------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 17,253 3,650 (825) 13,603 18,078
------------------------------------------------------------------------------------------------
Restructured loans 701,501 (723,809) (275,982) 1,425,310 977,483
------------------------------------------------------------------------------------------------
Total 1,443,028 (1,207,174) (529,472) 2,650,203 1,972,501
---------------------------------------------------------------------------------------------------
Amount of direct reduction 367,964 (346,507) (47,295) 714,471 415,259
---------------------------------------------------------------------------------------------------
Loans and bills discounted 37,933,075 (209,726) (735,501) 38,142,802 38,668,577
---------------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
------------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 0.10% (0.11)% (0.03)% 0.21% 0.13%
------------------------------------------------------------------------------------------------
Past due loans 1.80% (1.15)% (0.57)% 2.95% 2.38%
------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.04% 0.00% (0.00)% 0.03% 0.04%
------------------------------------------------------------------------------------------------
Restructured loans 1.84% (1.88)% (0.67)% 3.73% 2.52%
------------------------------------------------------------------------------------------------
Total 3.80% (3.14)% (1.29)% 6.94% 5.10%
------------------------------------------------------------------------------------------------
[Non-Consolidated]
(in millions of yen)
---------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
------------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 24,244 (38,318) (23,108) 62,563 47,352
------------------------------------------------------------------------------------------------
Past due loans 584,840 (480,016) (240,626) 1,064,857 825,467
------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 15,753 4,442 (1,331) 11,311 17,085
------------------------------------------------------------------------------------------------
Restructured loans 699,002 (761,690) (339,846) 1,460,693 1,038,848
------------------------------------------------------------------------------------------------
Total 1,323,841 (1,275,584) (604,912) 2,599,425 1,928,753
---------------------------------------------------------------------------------------------------
Amount of direct reduction 318,047 (294,648) (37,730) 612,696 355,778
---------------------------------------------------------------------------------------------------
Loans and bills discounted 34,260,461 97,015 (464,375) 34,163,445 34,724,836
---------------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
------------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 0.07% (0.11)% (0.06)% 0.18% 0.13%
------------------------------------------------------------------------------------------------
Past due loans 1.70% (1.40)% (0.67)% 3.11% 2.37%
------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.04% 0.01% (0.00)% 0.03% 0.04%
------------------------------------------------------------------------------------------------
Restructured loans 2.04% (2.23)% (0.95)% 4.27% 2.99%
------------------------------------------------------------------------------------------------
Total 3.86% (3.74)% (1.69)% 7.60% 5.55%
------------------------------------------------------------------------------------------------
32
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
2. Classification of risk-monitored Loans
Classification by geographic area
[Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Domestic* 1,200,256 (1,141,811) (436,155) 2,342,067 1,636,411
---------------------------------------------------------------------------------------------------
Overseas* 242,772 (65,363) (93,317) 308,136 336,090
------------------------------------------------------------------------------------------------
Asia 33,382 (37,755) (23,328) 71,137 56,710
---------------------------------------------------------------------------------------------
Indonesia 9,916 (15,216) (2,515) 25,133 12,431
Thailand 7,462 (18,913) (3,417) 26,375 10,879
Hong Kong 6,643 4,061 (6,421) 2,581 13,064
Other 9,360 (7,687) (10,975) 17,047 20,335
------------------------------------------------------------------------------------------------
United States of America 140,913 14,137 (34,933) 126,775 175,847
Other 68,477 (41,745) (35,055) 110,222 103,532
---------------------------------------------------------------------------------------------------
Total 1,443,028 (1,207,174) (529,472) 2,650,203 1,972,501
---------------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
Classification by type of industry of borrowers
[Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Domestic* 1,200,256 (1,141,811) (436,155) 2,342,067 1,636,411
------------------------------------------------------------------------------------------------
Manufacturing 110,318 (205,227) (92,776) 315,546 203,095
Construction 94,854 (100,663) (24,080) 195,518 118,934
Wholesale and Retail 292,514 (261,724) (106,582) 554,239 399,097
Banks and other financial
institutions 9,749 (48,766) (7,337) 58,516 17,087
Real estate 323,498 (308,700) (112,739) 632,198 436,237
Services 106,578 (169,663) (67,206) 276,241 173,784
Other industries 48,194 (25,111) (21,806) 73,305 70,001
Consumer 214,546 (21,954) (3,626) 236,501 218,172
---------------------------------------------------------------------------------------------------
Overseas* 242,772 (65,363) (93,317) 308,136 336,090
------------------------------------------------------------------------------------------------
Banks and other financial
institutions 1,415 (7,639) (4,707) 9,055 6,122
Commercial and industrial 237,080 (55,879) (86,555) 292,960 323,635
Other 4,276 (1,843) (2,054) 6,120 6,331
---------------------------------------------------------------------------------------------------
Total 1,443,028 (1,207,174) (529,472) 2,650,203 1,972,501
---------------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
33
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
3. Allowance for Loan Losses
[Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Allowance for loan losses 774,485 (348,058) (241,779) 1,122,543 1,016,265
------------------------------------------------------------------------------------------------
Formula allowance for loan
losses 544,549 (135,757) (120,023) 680,307 664,572
------------------------------------------------------------------------------------------------
Specific allowance for
loan losses 221,315 (207,157) (117,825) 428,472 339,141
------------------------------------------------------------------------------------------------
Allowance for loans to
specific foreign borrowers 8,620 (5,143) (3,930) 13,763 12,551
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Reserve for losses on real
estate-collateralized loans
sold -- (1,687) -- 1,687 --
---------------------------------------------------------------------------------------------------
[Non-Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Allowance for loan losses 579,522 (324,070) (229,851) 903,592 809,374
------------------------------------------------------------------------------------------------
Formula allowance for loan
losses 395,571 (120,828) (110,995) 516,399 506,566
------------------------------------------------------------------------------------------------
Specific allowance for
loan losses 175,330 (198,098) (114,925) 373,429 290,256
------------------------------------------------------------------------------------------------
Allowance for loans to
specific foreign borrowers 8,620 (5,143) (3,930) 13,763 12,551
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Reserve for financial
assistance to specific
borrowers 1,371 (8,965) 1,371 10,336 --
---------------------------------------------------------------------------------------------------
Reserve for losses on real
estate-collateralized loans
sold -- (1,687) -- 1,687 --
---------------------------------------------------------------------------------------------------
4. Coverage Ratio against Risk-Monitored Loans
[Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Allowance for loan losses (a) 774,485 (348,058) (241,779) 1,122,543 1,016,265
---------------------------------------------------------------------------------------------------
Risk-monitored loans (b) 1,443,028 (1,207,174) (529,472) 2,650,203 1,972,501
---------------------------------------------------------------------------------------------------
Coverage ratio (a)/(b) 53.67% 11.31% 2.14% 42.35% 51.52%
---------------------------------------------------------------------------------------------------
[Non-Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Allowance for loan losses (a) 579,522 (324,070) (229,851) 903,592 809,374
---------------------------------------------------------------------------------------------------
Risk-monitored loans (b) 1,323,841 (1,275,584) (604,912) 2,599,425 1,928,753
---------------------------------------------------------------------------------------------------
Coverage ratio (a)/(b) 43.77% 9.01% 1.81% 34.76% 41.96%
---------------------------------------------------------------------------------------------------
34
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
5. Disclosed Claims under the Financial Reconstruction Law (the "FRL")
[Non-Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt
debtors 123,943 (217,646) (12,715) 341,590 136,659
---------------------------------------------------------------------------------------------------
Claims under high risk 506,108 (479,221) (265,891) 985,329 772,000
---------------------------------------------------------------------------------------------------
Claims under close 714,756 (757,248) (341,177) 1,472,004 1,055,933
observation
---------------------------------------------------------------------------------------------------
Total (1) 1,344,808 (1,454,116) (619,784) 2,798,925 1,964,593
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Normal claims 37,302,689 419,124 (97,679) 36,883,565 37,400,369
---------------------------------------------------------------------------------------------------
6. Status of Secured Coverage on Disclosed Claims under the FRL
[Non-Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Secured coverage amount (2) 989,854 (1,135,730) (475,830) 2,125,585 1,465,684
------------------------------------------------------------------------------------------------
Allowance for loan losses 305,806 (315,017) (193,164) 620,824 498,971
------------------------------------------------------------------------------------------------
Reserve for financial
assistance to specific
borrowers -- -- -- -- --
------------------------------------------------------------------------------------------------
Collateral, guarantees,
etc. 684,047 (820,713) (282,665) 1,504,760 966,712
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Secured coverage ratio
(2)/(1) 73.60% (2.33)% (0.99)% 75.94% 74.60%
---------------------------------------------------------------------------------------------------
Secured Coverage of Each Category of Disclosed Claims under the FRL
[Non-Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------------
Reserve for
financial Collectable
assistance amount by Coverage Coverage
Allowance to specific collateralized ratio ratio
Disclosed for loan borrowers and guaranteed [(B)+(C)] [(B)+(C)]+
Category amount (A) losses (B) (C) loans (D) / [(A)-(D)] (D)] / (A)
--------------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt 123,943 9,119 -- 114,824 100.00% 100.00%
debtors [136,659] [11,460] -- [125,198] [100.00%] [100.00%]
--------------------------------------------------------------------------------------------------------
Claims under high risk 506,108 160,838 -- 274,972 69.58% 86.11%
[772,000] [267,551] -- [364,388] [65.63%] [81.85%]
--------------------------------------------------------------------------------------------------------
Claims under close 714,756 135,849 -- 294,251 32.30% 60.17%
observation [1,055,933] [219,959] -- [477,126] [38.00%] [66.01%]
--------------------------------------------------------------------------------------------------------
Sub total (1) 1,344,808 305,806 -- 684,047 46.28% 73.60%
[1,964,593] [498,971] -- [966,712] [50.00%] [74.60%]
--------------------------------------------------------------------------------------------------------
Normal claims 37,302,689
[37,400,369]
--------------------------------------------------------------------------------------------------------
Total (2) 38,647,498
[39,364,962]
--------------------------------------------------------------------------------------------------------
Sub total (1) / 3.47%
Total (2) [4.99%]
--------------------------------------------------------------------------------------------------------
Note: The upper figures are as of September 30, 2003. The lower figures with
bracket are as of March 31, 2003.
35
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
7. Progress in the Disposal of Problem Assets [Non-Consolidated]
(excluding claims under close observation)
(1) Assets categorized as problem assets as of September 30, 2000 based on the
FRL
(in billions of yen)
------------------------------------------------------------------------------------------------------------------------
As of As of As of As of As of As of As of
September March 31, September March 31, September March 31, September 30, --------
30, 2000 2001 30, 2001 2002 30, 2002 2003 (a) 2003 (b) (b) -(a)
------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt
debtors 274.3 144.3 150.6 144.9 210.9 38.7 19.0 (19.6)
------------------------------------------------------------------------------------------------------------------------
Claims under high risk 1,053.5 944.9 758.4 538.4 193.6 13.5 10.3 (3.2)
------------------------------------------------------------------------------------------------------------------------
Total 1,327.8 1,089.2 909.0 683.4 404.6 52.3 29.3 (22.9)
------------------------------------------------------------------------------------------------------------------------
(A) (B)
Progress in the disposal of problem assets
(in billions of yen)
------------------------------------------------------------------
First half of fiscal 2003
------------------------------------------------------------------
Disposition by borrowers' liquidation (14.2)
------------------------------------------------------------------
Re-constructive disposition (0.3)
------------------------------------------------------------------
Improvements in financial status due
to re-constructive disposition --
------------------------------------------------------------------
Loan sales to secondary market (0.6)
------------------------------------------------------------------
Charge-off (0.6)
------------------------------------------------------------------
Other (7.1)
---------------------------------------------------------------
Collection of claims (6.5)
---------------------------------------------------------------
Improvements in financial
status (0.5)
------------------------------------------------------------------
Total (22.9)(B)
------------------------------------------------------------------
Above (A) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
------------------------------------------------------------------
First half of fiscal 2003
------------------------------------------------------------------
Legal liquidation (2.8)
------------------------------------------------------------------
Quasi-legal liquidation --
------------------------------------------------------------------
Split-off of problem loans --
------------------------------------------------------------------
Partial charge-off of smaller balance
loans (4.8)
------------------------------------------------------------------
Entrust through the managed trust
method to the Resolution and Collection
Corporation --
------------------------------------------------------------------
Total (7.6)
------------------------------------------------------------------
(2) Assets newly categorized as problem assets during second half of fiscal
2000 based on the FRL
(in billions of yen)
---------------------------------------------------------------------------------------------------------------------
As of As of As of As of As of As of
March 31, September 30, March 31, September March 31, September ---------
2001 2001 2002 30, 2002 2003 (a) 30, 2003 (b) (b) - (a)
---------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt debtors 106.8 98.3 94.3 44.0 18.6 17.8 (0.8)
---------------------------------------------------------------------------------------------------------------------
Claims under high risk 635.3 575.4 447.4 269.3 72.5 49.1 (23.4)
---------------------------------------------------------------------------------------------------------------------
Total 742.2 673.7 541.8 313.3 91.2 67.0 (24.2)
---------------------------------------------------------------------------------------------------------------------
(C) (D)
Progress in the disposal of problem assets
(in billions of yen)
------------------------------------------------------------------
First half of fiscal 2003
------------------------------------------------------------------
Disposition by borrowers' liquidation (0.5)
------------------------------------------------------------------
Re-constructive disposition (0.3)
------------------------------------------------------------------
Improvements in financial status due to
re-constructive disposition --
------------------------------------------------------------------
Loan sales to secondary market (0.3)
------------------------------------------------------------------
Charge-off (0.7)
------------------------------------------------------------------
Other (22.3)
---------------------------------------------------------------
Collection of claims (14.1)
---------------------------------------------------------------
Improvements in financial status (8.1)
------------------------------------------------------------------
Total (24.2)(D)
------------------------------------------------------------------
Above (C) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
------------------------------------------------------------------
First half of fiscal 2003
------------------------------------------------------------------
Legal liquidation (0.7)
------------------------------------------------------------------
Quasi-legal liquidation --
------------------------------------------------------------------
Split-off of problem loans --
------------------------------------------------------------------
Partial charge-off of smaller balance
loans (15.1)
------------------------------------------------------------------
Entrust through the managed trust
method to the Resolution and Collection
Corporation --
------------------------------------------------------------------
Total (15.8)
------------------------------------------------------------------
Note: The figures (2) to (6) as of March 31, 2003 have been revised. This is
because figures of loans to individuals were allocated based on research
when they caused. Those had been included collectively in (2) at March 31,
2003.
36
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(3) Assets newly categorized as problem assets during first half of fiscal
2001 based on the FRL
(in billions of yen)
-------------------------------------------------------------------------------------------------------
As of
As of As of As of As of September
September March 31, September March 31, 30, ---------
30, 2001 2002 30, 2002 2003 (a) 2003 (b) (b) - (a)
-------------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt debtors 27.1 25.6 26.4 17.8 11.4 (6.3)
-------------------------------------------------------------------------------------------------------
Claims under high risk 257.0 140.1 79.9 47.2 27.9 (19.3)
-------------------------------------------------------------------------------------------------------
Total 284.2 165.8 106.3 65.1 39.4 (25.6)
-------------------------------------------------------------------------------------------------------
(E) (F)
Progress in the disposal of problem assets
(in billions of yen)
-------------------------------------------------------
First half of
fiscal 2003
-------------------------------------------------------
Disposition by borrowers' liquidation (0.1)
-------------------------------------------------------
Re-constructive disposition (3.9)
-------------------------------------------------------
Improvements in financial status
due to re-constructive disposition --
-------------------------------------------------------
Loan sales to secondary market (8.7)
-------------------------------------------------------
Charge-off (2.2)
-------------------------------------------------------
Other (10.6)
----------------------------------------------------
Collection of claims (8.3)
----------------------------------------------------
Improvements in financial status (2.2)
-------------------------------------------------------
Total (25.6)(F)
-------------------------------------------------------
Above (E) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
-------------------------------------------------------------
First half of
fiscal 2003
-------------------------------------------------------------
Legal liquidation (1.4)
-------------------------------------------------------------
Quasi-legal liquidation --
-------------------------------------------------------------
Split-off of problem loans --
-------------------------------------------------------------
Partial charge-off of smaller balance loans (9.1)
-------------------------------------------------------------
Entrust through the managed trust method to
the Resolution and Collection Corporation --
-------------------------------------------------------------
Total (10.5)
-------------------------------------------------------------
(4) Assets newly categorized as problem assets during second half of fiscal
2001 based on the FRL
(in billions of yen)
------------------------------------------------------------------------------------------------
As of
As of As of As of September
March 31, September March 31, 30, ---------
2002 30, 2002 2003 (a) 2003 (b) (b) - (a)
------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 57.3 35.4 14.7 12.3 (2.3)
------------------------------------------------------------------------------------------------
Claims under high risk 315.9 162.4 104.1 48.5 (55.6)
------------------------------------------------------------------------------------------------
Total 373.2 197.9 118.9 60.8 (58.0)
------------------------------------------------------------------------------------------------
(G) (H)
Progress in the disposal of problem assets
(in billions of yen)
-------------------------------------------------------
First half of
fiscal 2003
-------------------------------------------------------
Disposition by borrowers' liquidation (0.1)
-------------------------------------------------------
Re-constructive disposition (0.8)
-------------------------------------------------------
Improvements in financial status
due to re-constructive disposition --
-------------------------------------------------------
Loan sales to secondary market (5.7)
-------------------------------------------------------
Charge-off (8.7)
-------------------------------------------------------
Other (42.5)
----------------------------------------------------
Collection of claims (17.1)
----------------------------------------------------
Improvements in financial status (25.3)
-------------------------------------------------------
Total (58.0) (H)
-------------------------------------------------------
Above (G) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
--------------------------------------------------------------
First half of
fiscal 2003
--------------------------------------------------------------
Legal liquidation (1.0)
--------------------------------------------------------------
Quasi-legal liquidation --
--------------------------------------------------------------
Split-off of problem loans --
--------------------------------------------------------------
Partial charge-off of smaller balance loans (9.7)
--------------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection Corporation --
--------------------------------------------------------------
Total (10.7)
--------------------------------------------------------------
37
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(5) Assets newly categorized as problem assets during first half of fiscal 2002
based on the FRL
(in billions of yen)
--------------------------------------------------------------------------------------------------------
As of As of As of
September 30, March 31, September 30,
2002 2003 (a) 2003 (b) (b) - (a)
--------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 24.6 19.8 16.7 (3.0)
--------------------------------------------------------------------------------------------------------
Claims under high risk 279.9 143.5 82.7 (60.8)
--------------------------------------------------------------------------------------------------------
Total 304.5 163.3 99.5 (63.8)
--------------------------------------------------------------------------------------------------------
(I) (J)
Progress in the disposal of problem assets
(in billions of yen)
--------------------------------------------------------
First half of
fiscal 2003
--------------------------------------------------------
Disposition by borrowers' liquidation (2.0)
--------------------------------------------------------
Re-constructive disposition (4.4)
--------------------------------------------------------
Improvements in financial status due to
re-constructive disposition --
--------------------------------------------------------
Loan sales to secondary market (16.6)
--------------------------------------------------------
Charge-off (6.6)
--------------------------------------------------------
Other (34.1)
----------------------------------------------------
Collection of claims (27.9)
----------------------------------------------------
Improvements in financial status (6.1)
--------------------------------------------------------
Total (63.8)(J)
--------------------------------------------------------
Above (I) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
--------------------------------------------------------
First half of
fiscal 2003
--------------------------------------------------------
Legal liquidation (3.8)
--------------------------------------------------------
Quasi-legal liquidation --
--------------------------------------------------------
Split-off of problem loans --
--------------------------------------------------------
Partial charge-off of
smaller balance loans (8.5)
--------------------------------------------------------
Entrust through the managed trust
method to the Resolution and
Collection Corporation --
--------------------------------------------------------
Total (12.4)
--------------------------------------------------------
(6) Assets newly categorized as problem assets during second half of fiscal
2002 based on the FRL
(in billions of yen)
-------------------------------------------------------------------------------
As of As of
March 31, September 30, -----------
2003 (a) 2003 (b) (b) - (a)
-------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 26.7 32.0 5.2
-------------------------------------------------------------------------------
Claims under high risk 390.7 169.1 (221.6)
-------------------------------------------------------------------------------
Total 417.5 201.2 (216.3)
-------------------------------------------------------------------------------
(K) (L)
Progress in the disposal of problem assets
(in billions of yen)
--------------------------------------------------------
First half of
fiscal 2003
--------------------------------------------------------
Disposition by borrowers' liquidation (1.8)
--------------------------------------------------------
Re-constructive disposition (14.5)
--------------------------------------------------------
Improvements in financial status due to
re-constructive disposition --
--------------------------------------------------------
Loan sales to secondary market (40.7)
--------------------------------------------------------
Charge-off (10.4)
--------------------------------------------------------
Other (148.6)
-----------------------------------------------------
Collection of claims (56.0)
-----------------------------------------------------
Improvements in financial status (92.5)
--------------------------------------------------------
Total (216.3)(L)
--------------------------------------------------------
Above (K) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
--------------------------------------------------------
First half of
fiscal 2003
--------------------------------------------------------
Legal liquidation (9.6)
--------------------------------------------------------
Quasi-legal liquidation --
--------------------------------------------------------
Split-off of problem loans --
--------------------------------------------------------
Partial charge-off of
smaller balance loans (11.8)
--------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection
Corporation --
--------------------------------------------------------
Total (21.5)
--------------------------------------------------------
38
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(7) Assets newly categorized as problem assets during first half of fiscal
2003 based on the FRL
(in billions of yen)
--------------------------------------------------------
As of
September 30,
2003
--------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 14.3
--------------------------------------------------------
Claims under high risk 118.2
--------------------------------------------------------
Total 132.5
--------------------------------------------------------
(8) Historical trend of problem assets based on the FRL
(in billions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of As of As of As of As of As of As of
September 30, March 31, September 30, March 31, September 30, March 31, September 30, ----------
2000 2001 2001 2002 2002 2003 (a) 2003 (b) (b) - (a)
--------------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt
and substantially
bankrupt debtors 274.3 251.2 276.1 322.3 341.5 136.6 123.9 (12.7)
--------------------------------------------------------------------------------------------------------------------------------
Claims under high risk 1,053.5 1,580.2 1,590.9 1,442.0 985.3 772.0 506.1 (265.8)
--------------------------------------------------------------------------------------------------------------------------------
Total 1,327.8 1,831.4 1,867.0 1,764.4 1,326.9 908.6 630.0 (278.6)
--------------------------------------------------------------------------------------------------------------------------------
39
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
8. Classification of Loans by Type of Industry
(1) Loans by type of industry [Non-Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
------------------------------------------------------------------------------------------------------
Domestic offices
(excluding loans booked
at offshore markets) 29,780,340 803,560 123,409 28,976,779 29,656,931
---------------------------------------------------------------------------------------------------
Manufacturing 4,169,487 (316,401) (135,342) 4,485,888 4,304,829
Agriculture 12,322 (2,862) (1,699) 15,184 14,021
Forestry 5,231 (53) (94) 5,284 5,325
Fishery 2,574 (483) (80) 3,057 2,654
Mining 35,271 851 1,822 34,420 33,449
Construction 864,648 (184,957) (91,755) 1,049,605 956,403
Utilities 262,887 17,317 (2,660) 245,570 265,547
Media and
Communication 645,286 (564,417) (5,054) 1,209,703 650,340
Wholesale and Retail 4,178,263 (506,213) (223,892) 4,684,476 4,402,155
Banks and other
financial
institutions 1,980,022 (127,218) 89,022 2,107,240 1,891,000
Real estate 3,441,213 (29,230) 9,920 3,470,443 3,431,293
Services 4,423,344 949,764 318,023 3,473,580 4,105,321
Municipal government 31,121 (546) (1,588) 31,667 32,709
Other industries 9,728,671 1,568,008 166,786 8,160,662 9,561,885
------------------------------------------------------------------------------------------------------
Overseas offices and
loans booked at
offshore markets 4,480,120 (706,545) (587,784) 5,186,665 5,067,905
------------------------------------------------------------------------------------------------------
Total 34,260,461 97,015 (464,375) 34,163,445 34,724,836
------------------------------------------------------------------------------------------------------
(2) Domestic consumer loans [Non-Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
------------------------------------------------------------------------------------------------------
Total domestic consumer
loans 7,712,440 698,155 513,126 7,014,285 7,199,314
---------------------------------------------------------------------------------------------------
Housing loans 7,247,894 770,720 554,217 6,477,174 6,693,677
---------------------------------------------------------------------------------------------------
Others 464,546 (72,565) (41,091) 537,111 505,637
------------------------------------------------------------------------------------------------------
(3) Domestic loans to small and medium-sized companies [Non-Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
------------------------------------------------------------------------------------------------------
Domestic loans to small
and medium-sized
companies 17,455,345 182,669 254,455 17,272,676 17,200,890
------------------------------------------------------------------------------------------------------
Percentage to total 58.61% (0.99)% 0.61% 59.60% 57.99%
domestic loans
------------------------------------------------------------------------------------------------------
40
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
9. Loans and Deposits [Non-Consolidated]
(in millions of yen)
------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
------------------------------------------------------------------------------------------------------
Deposits (ending 50,397,958 4,682,304 2,570,784 45,715,654 47,827,174
balance)
------------------------------------------------------------------------------------------------------
Deposits (average 48,779,396 3,255,368 2,524,655 45,524,028 46,254,741
balance)
------------------------------------------------------------------------------------------------------
Loans (ending balance) 34,260,461 97,015 (464,375) 34,163,445 34,724,836
------------------------------------------------------------------------------------------------------
Loans (average balance) 34,373,711 (191,423) (444,682) 34,565,134 34,818,393
------------------------------------------------------------------------------------------------------
10. Domestic Deposits [Non-Consolidated]
(in millions of yen)
------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
------------------------------------------------------------------------------------------------------
Individuals 26,232,405 1,848,434 749,223 24,383,970 25,483,181
---------------------------------------------------------------------------------------------------
Corporations and
others 17,919,481 1,957,265 1,075,122 15,962,215 16,844,358
---------------------------------------------------------------------------------------------------
Domestic deposits 44,151,886 3,805,700 1,824,346 40,346,185 42,327,540
------------------------------------------------------------------------------------------------------
Note: Amounts do not include negotiable certificates of deposit, deposits of
overseas offices and JOM accounts.
11. Number of Employees [Non-Consolidated]
------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
------------------------------------------------------------------------------------------------------
Number of Employees 15,062 (790) (117) 15,852 15,179
------------------------------------------------------------------------------------------------------
12. Number of Offices [Non-Consolidated]
------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
------------------------------------------------------------------------------------------------------
Domestic : 273 (14) (9) 287 282
---------------------------------------------------------------------------------------------------
Head office and
Branches 254 (9) (6) 263 260
Sub Branches &
Agencies 19 (5) (3) 24 22
------------------------------------------------------------------------------------------------------
Overseas : 73 (2) 1 75 72
---------------------------------------------------------------------------------------------------
Branches 42 (2) -- 44 42
Sub - branches 14 -- 1 14 13
Representative
offices 17 -- -- 17 17
------------------------------------------------------------------------------------------------------
Total 346 (16) (8) 362 354
------------------------------------------------------------------------------------------------------
41
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
13. Status of Deferred Tax Assets [Non-Consolidated]
(1) Tax Effects of the Items Comprising Net Deferred Tax Assets
[Non-Consolidated] (in billions of yen)
-------------------------------------------------------------------------------
Sep. 30, 2003
-----------------
vs. Mar. 31, 2003
-------------------------------------------------------------------------------
Deferred tax assets 874.0 (159.1)
----------------------------------------------------------------------------
Allowance for loan losses 291.9 (99.3)
----------------------------------------------------------------------------
Write down of investment securities 69.3 (0.4)
----------------------------------------------------------------------------
Net operating loss carryforwards 515.1 (12.3)
----------------------------------------------------------------------------
Reserve for employees' retirement
benefits 26.7 (7.2)
----------------------------------------------------------------------------
Unrealized losses on securities
available for sale -- (112.1)
----------------------------------------------------------------------------
Other 33.5 (4.3)
----------------------------------------------------------------------------
Valuation allowance (62.8) 76.6
----------------------------------------------------------------------------
Deferred tax liabilities 87.2 72.5
----------------------------------------------------------------------------
Gains on placing trust for retirement
benefits 7.2 0.0
----------------------------------------------------------------------------
Unrealized gains (losses) on securities
available for sale 63.8 63.8
----------------------------------------------------------------------------
Other 16.0 8.7
----------------------------------------------------------------------------
Net amount of deferred tax assets 786.8 (231.7)
-------------------------------------------------------------------------------
[Consolidated]
-------------------------------------------------------------------------------
Net amount of deferred tax 715.2 (232.4)
assets
-------------------------------------------------------------------------------
(2) Net Business Profits before Credit Costs and Taxable Income (Current Interim
Fiscal Year)
[Non-Consolidated] (in billions of yen)
-------------------------------------------------------------------------------
Interim FY 2003
-------------------------------------------------------------------------------
Net business profits before credit costs 235.0
-------------------------------------------------------------------------------
Credit related costs (110.7)
-------------------------------------------------------------------------------
Income before income taxes 385.9
-------------------------------------------------------------------------------
Reconciliation to taxable income (321.5)
-------------------------------------------------------------------------------
Taxable Income 64.4
-------------------------------------------------------------------------------
(3) Net Business Profits before Credit Costs and Taxable Income (Past Five
Fiscal Year)
[Non-Consolidated] (in billions of yen)
-------------------------------------------------------------------------------
1998 1999 2000 2001 2002
-------------------------------------------------------------------------------
Net business profits before
credit costs 604.7 400.8 388.9 463.3 511.5
-------------------------------------------------------------------------------
Credit related costs 889.5 504.5 554.0 484.8 341.0
-------------------------------------------------------------------------------
Income before income taxes 69.8 279.9 (225.3) (317.4) (287.3)
-------------------------------------------------------------------------------
Reconciliation to taxable income 178.6 82.1 393.0 137.3 (821.7)
-------------------------------------------------------------------------------
Taxable Income 248.5 362.1 167.6 (180.0) (1,109.0)
-------------------------------------------------------------------------------
(4) Classification Based on Prior Year Operating Results As Provided in the
JICPA Audit Committee Report No.66
Although we recorded taxable income for six months ended September 30,
2003, we are classified as "4" described above since we have material net
operating loss carryforwards. However since we believe the net operating
loss carryforwards are attributable to extraordinary factors such as changes
in laws and regulations, we apply the exception to classification 4. (Five
years' future taxable income is estimable.)
[Extraordinary Factors Such as Changes in Laws and Regulations]
Our net operating loss carryforwards were incurred due to, among other
things, the following: (i) we accelerated the final disposal of
nonperforming loans in response to both the "Emerging Economic Package,"
which provided guidance to major banks to remove from their balance sheets
claims to debtors classified as "likely to become bankrupt" or below, and
the "Program for Financial Revival," which urged major banks to reduce the
ratio of disclosed claims to total claims by about half; and (ii) we reduced
our holdings of strategic equity investments under the "Law Concerning
Restriction, etc. of Banks' Shareholdings etc."
(5) Realizability of Deferred Tax Assets at September 30, 2003 (Assumptions)
(in billions of yen)
-------------------------------------------------------------------------------
Five year total
(2003 2nd half
to 2008 1st half)
-------------------------------------------------------------------------------
Net business profits (based on our business plan) (*1) 3,630.0
-------------------------------------------------------------------------------
Net business profits (basis of realizability
determination) (*2) 3,170.0
-------------------------------------------------------------------------------
Income before income taxes (basis of realizability
determination) 1,950.0
-------------------------------------------------------------------------------
Taxable income before adjustments (basis of realizability
determination) (*3) 2,690.0
-------------------------------------------------------------------------------
Temporary difference + net operating loss carryforwards
(for which deferred tax assets shall be recognized) 2,188.0
-------------------------------------------------------------------------------
Deferred tax assets at September 30, 2003 (*4) 874.0
-------------------------------------------------------------------------------
(*1) Before credit costs
(*2) Based on the scenario that current short-term interest rate level continues
for the next five years
(*3) Before reversals of existing deductible temporary differences and net
operating loss carryforwards
(*4) "Temporary difference + net operating loss carryforwards (for which
deferred tax assets shall be recognized)" described above X effective tax
rate
(Reference) Assumptions for Business Plan
-------------------------------------------------------------------------------
FY 2003
2/nd/ FY 2008
half 2004 2005 2006 2007 1/st/ half
-------------------------------------------------------------------------------
S/T interest rate
(3 m/s TIBOR) 0.1% 0.1% 0.6% 0.9% 0.8% 0.6%
-------------------------------------------------------------------------------
L/T interest rate
(10 year JGB) 1.4% 1.3% 2.0% 2.5% 2.2% 2.1%
-------------------------------------------------------------------------------
Exchange rate
(USD/Yen) (Y) 120 (Y) 120 (Y) 120 (Y) 120 (Y) 120 (Y) 120
-------------------------------------------------------------------------------
42
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
14. Employees' Retirement Benefits
Benefit obligation
[Non-Consolidated] (in millions of yen)
===============================================================================
As of
September 30,
2003
===============================================================================
Projected benefits obligation at beginning of
the period (A-B+C+D+G+J) 777,168
----------------------------------------------------------------------------
Fair value of plan assets at beginning of the
period (A) 506,153
----------------------------------------------------------------------------
Prepaid pension cost at beginning of the
period (B) 36,546
----------------------------------------------------------------------------
Reserve for employees' retirement benefits at
beginning of the period (C) 6,687
----------------------------------------------------------------------------
Unrecognized net obligation by the change of
accounting policy at beginning of the period (D) 26,056
-------------------------------------------------------------------------
Amortization for the current period
(Amortized period mainly 5 years) (E) 9,263
-------------------------------------------------------------------------
Unrecognized net obligation at end of the
interim period (F) 16,793
----------------------------------------------------------------------------
Unrecognized prior service cost at beginning
of the period (G) (44,044)
-------------------------------------------------------------------------
Amortization for the current period
(Amortized period mainly 10 years) (H) (10,793)
-------------------------------------------------------------------------
Unrecognized prior service cost at end of
the interim period (I) (33,250)
----------------------------------------------------------------------------
Unrecognized net actuarial (gain) loss at
beginning of the period (J) 318,861
-------------------------------------------------------------------------
Amortization for the current period
(Amortized period mainly 10 years) (K) 100,020
-------------------------------------------------------------------------
Unrecognized net actuarial (gain) loss at
end of the interim period (L) 218,841
===============================================================================
Net amount unrecognized at beginning of
period (M)(D+G+J) 300,873
-------------------------------------------------------------------------------
Net amount amortized during the period (N)(E+H+K) 98,489
-------------------------------------------------------------------------------
Net amount unrecognized at end of period (O)(M-N) 202,383
===============================================================================
Note: 1. Discount rate is 1.9%.
2. With respect to the transfer of the substitutional portion of future
pension obligations, the amortization of unrecognized amount due to
application of the transitional measurement prescribed in the
"Practical Guidelines for Accounting for Retirement Benefits (Interim
Report)" are included in the net amount amortized during the period.
3. The amount accrued during the period of unrecognized net actuarial loss
is included in at beginning of the period.
43
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
15. Earning Projections for the Fiscal Year Ending March 31, 2004
[Consolidated] (in billions of yen)
-------------------------------------------------------------------------------
For the year ending For the six months ended
March 31, 2004 September 30, 2003
-------------------------------------------------------------------------------
Ordinary income 2,200.0 1,083.7
-------------------------------------------------------------------------------
Ordinary Profit 410.0 206.1
-------------------------------------------------------------------------------
Net income 340.0 236.6
-------------------------------------------------------------------------------
[Non-consolidated] (in billions of yen)
-------------------------------------------------------------------------------
For the year ending For the six months ended
March 31, 2004 September 30, 2003
-------------------------------------------------------------------------------
Ordinary income 1,600.0 776.7
-------------------------------------------------------------------------------
Ordinary profit 285.0 149.0
-------------------------------------------------------------------------------
Net income 310.0 229.7
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Net business profits
before provision for
formula allowance for
loan losses 465.0 235.0
-------------------------------------------------------------------------------
44
MTFG
--------------------------------------------------------------------------------
Selected Interim Financial Information
under Japanese GAAP
For the Fiscal Year Ending March 31, 2004
--------------------------------------------------------------------------------
The Mitsubishi Trust and Banking Corporation
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
[Contents]
1 Interim Financial Highlights under Japanese GAAP for the Fiscal Year Ending
March 31, 2004
1. Consolidated Balance Sheets 45
2. Consolidated Statements of Operations 46
3. Consolidated Statement of Capital Surplus and Retained Earnings 47
4. Non-Consolidated Balance Sheets 48
5. Non-Consolidated Statements of Operations 49
6. Notional principal or contract amount, market value and valuation
gains (losses) on derivatives 50
[Consolidated]
7. Comparison of Statement of Trust Assets and Liabilities
[Non-Consolidated], [Trust] 53
8. Financial Results [Consolidated], [Non-Consolidated] 56
9. Average interest rate spread [Non-Consolidated] 58
10. Valuation Differences on Securities [Consolidated], [Non-Consolidated] 58
[Trust]
11. Risk-Adjusted Capital Ratio Based on the Standards of the BIS
[Consolidated], [Non-Consolidated] 59
2 Loan Portfolio and Other
1. Risk-Monitored Loans [Consolidated], [Non-Consolidated], [Trust] 60
[Consolidated and Trust], [Non-Consolidated and Trust]
2. Classification of Risk-Monitored Loans
[Consolidated and Trust] 62
3. Allowance for Loan Losses
[Consolidated], [Non-Consolidated], [Trust] 63
4. Coverage Ratio against Risk-Monitored Loans
[Consolidated], [Non-Consolidated] 63
5. Disclosed Claims under the Financial Reconstruction Law (the"FRL")
[Non-Consolidated], [Trust] 64
[Non-Consolidated and Trust]
6. Status of Secured Coverage on Disclosed Claims under the FRL
[Non-Consolidated], [Trust] 65
[Non-Consolidated and Trust]
7. Progress in the Disposal of Problem Assets
[Non-Consolidated and Trust] 67
8. Classification of Loans by Type of Industry
[Non-Consolidated], [Trust] 71
[Non-Consolidated and Trust]
9. Loans and Deposits [Non-Consolidated] 74
10. Domestic Deposits [Non-Consolidated] 74
11. Number of Employees [Non-Consolidated] 74
12. Number of Offices [Non-Consolidated] 74
13. Status of Deferred Tax Assets [Non-Consolidated] 75
14. Employees' Retirement Benefits [Non-Consolidated] 76
15. Earning Projections for the Fiscal Year Ending March 31, 2004
[Consolidated], [Non-Consolidated] 77
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
1 Interim Financial Highlights under Japanese GAAP for the Fiscal Year Ending
March 31, 2004
(Japanese GAAP)
1. Consolidated Balance Sheets
======================================================================================================================
As of September 30, Increase/ As of Increase/
2003(A) 2002(B) (Decrease) March 31, (Decrease)
(in millions of yen) (A) - (B) 2003(C) (A) - (C)
======================================================================================================================
Assets:
Cash and due from banks 1,085,451 1,170,607 (85,155) 1,333,630 (248,178)
Call loans and bills bought 112,953 6,130 106,463 256,132 (143,538)
Receivables under securities borrowing
transactions 1,931,532 1,921,949 9,582 1,535,155 396,376
Commercial paper and other debt purchased 23,076 10,525 12,550 16,418 6,657
Trading assets 376,341 425,935 (49,594) 350,573 25,767
Money held in trust 10,142 14,434 (4,292) 9,675 466
Investment securities 6,038,108 7,233,595 (1,195,487) 7,577,895 (1,539,786)
Allowance for losses on investment securities (81) -- (81) -- (81)
Loans and bills discounted 8,499,575 8,822,563 (322,988) 8,287,748 211,826
Foreign exchanges 12,925 15,677 (2,751) 19,228 (6,302)
Other assets 1,082,852 1,268,260 (185,407) 1,143,264 (60,411)
Premises and equipment 176,130 189,159 (13,028) 184,212 (8,082)
Deferred tax assets 271,981 246,427 25,554 353,929 (81,947)
Deferred tax assets on land revaluation
losses 1,803 4,984 (3,181) 1,593 209
Customers' liabilities for acceptances and
guarantees 358,941 444,140 (85,199) 410,230 (51,289)
Allowance for loan losses (268,813) (375,733) 106,920 (281,027) 12,214
----------------------------------------------------------------------------------------------------------------------
Total assets 19,712,561 21,398,657 (1,686,096) 21,198,661 (1,486,100)
======================================================================================================================
Liabilities:
Deposits 10,531,669 11,160,893 (629,223) 10,986,946 (455,277)
Negotiable certificates of deposit 1,088,064 1,308,427 (220,363) 1,453,650 (365,586)
Call money and bills sold 477,683 1,217,863 (740,180) 1,125,546 (647,863)
Payables under repurchase agreements 311,650 43,999 267,650 333,746 (22,095)
Payables under securities lending
transactions 2,939,215 2,393,839 545,376 2,601,972 337,243
Commercial paper 422,000 540,000 (118,000) 451,000 (29,000)
Trading liabilities 92,273 154,499 (62,225) 125,897 (33,623)
Borrowed money 205,096 235,716 (30,619) 220,247 (15,150)
Foreign exchanges 16,447 20,215 (3,768) 20,280 (3,833)
Bonds and notes 388,900 345,400 43,500 358,600 30,300
Due to trust account 1,336,541 1,635,468 (298,927) 1,401,617 (65,076)
Other liabilities 703,136 1,146,995 (443,858) 1,000,431 (297,294)
Reserve for employees' bonuses 3,817 4,008 (191) 4,418 (601)
Reserve for employees' retirement benefits 1,884 15,088 (13,204) 9,261 (7,377)
Reserve for losses on real
estate-collateralized loans sold -- 352 (352) -- --
Reserve for expenses related to EXPO 2005
Japan 39 -- 39 19 20
Deferred tax liabilities 78 281 (202) 51 26
Deferred tax liabilities on land revaluation
excess 1,699 190 1,509 196 1,503
Acceptances and guarantees 358,941 444,140 (85,199) 410,230 (51,289)
----------------------------------------------------------------------------------------------------------------------
Total liabilities 18,879,140 20,667,380 (1,788,240) 20,504,115 (1,624,974)
----------------------------------------------------------------------------------------------------------------------
Minority interest 3,815 2,841 974 2,951 864
----------------------------------------------------------------------------------------------------------------------
Shareholder's equity:
Capital stock 324,279 305,143 19,135 324,279 --
Capital surplus 274,752 255,617 19,135 274,752 --
Retained earnings 155,191 173,276 (18,084) 102,888 52,302
Land revaluation excess (302) (7,699) 7,396 (2,071) 1,768
Unrealized gains (losses) on securities
available for sale 80,361 8,262 72,098 (3,228) 83,589
Foreign currency translation adjustments (4,676) (6,165) 1,488 (5,025) 348
----------------------------------------------------------------------------------------------------------------------
Total shareholder's equity 829,605 728,435 101,169 691,594 138,010
----------------------------------------------------------------------------------------------------------------------
Total liabilities, minority interest
and shareholder's equity 19,712,561 21,398,657 (1,686,096) 21,198,661 (1,486,100)
======================================================================================================================
45
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
2. Consolidated Statements of Operations
===============================================================================
For the six months Increase/ For the
ended September 30, (Decrease) year ended
2003(A) 2002(B) (A) - (B) March
(in millions of yen) 31, 2003
===============================================================================
Ordinary income:
Trust fees 27,829 38,575 (10,746) 82,927
Interest income: 160,205 184,728 (24,523) 367,962
(Interest on loans and
discounts) 50,019 67,469 (17,450) 128,412
(Interest and dividends on
securities) 85,527 76,099 9,428 166,982
Fees and commissions 29,020 25,686 3,334 54,017
Trading profits 2,243 1,439 804 3,501
Other business income 45,380 21,917 23,463 60,104
Other ordinary income 22,694 20,923 1,770 41,098
-------------------------------------------------------------------------------
Total ordinary income 287,373 293,270 (5,896) 609,611
-------------------------------------------------------------------------------
Ordinary expenses:
Interest expense: 54,027 85,456 (31,428) 169,362
(Interest on deposits) 17,719 29,638 (11,919) 55,466
Fees and commissions 6,480 3,477 3,003 7,146
Trading losses -- -- -- 248
Other business expenses 27,131 31,543 (4,411) 54,105
General and administrative
expenses 90,349 87,934 2,414 179,737
Other ordinary expenses 30,237 127,531 (97,293) 399,574
-------------------------------------------------------------------------------
Total ordinary expenses 208,226 335,943 (127,716) 810,175
-------------------------------------------------------------------------------
Ordinary profit (loss) 79,147 (42,672) 121,819 (200,564)
-------------------------------------------------------------------------------
Special gains 13,210 9,070 4,140 12,754
Special losses 18,009 3,326 14,682 10,412
-------------------------------------------------------------------------------
Income (loss) before income
taxes and others 74,348 (36,928) 111,277 (198,221)
-------------------------------------------------------------------------------
Income taxes-current (19,007) 1,104 (20,111) 3,989
Income taxes-refund -- 3,284 (3,284) 3,839
Income taxes-deferred 28,658 (1,920) 30,578 (100,783)
Minority interest 728 (297) 1,025 (219)
-------------------------------------------------------------------------------
Net income (loss) 63,969 (32,530) 96,500 (97,369)
===============================================================================
46
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
3. Consolidated Statement of Capital Surplus and Retained Earnings
==============================================================================
As of September 30, Increase/ As of
2003(A) 2002(B) (Decrease) March 31,
(in millions of yen) (A) - (B) 2003(C)
==============================================================================
Balance of capital surplus
at beginning of fiscal year 274,752 255,617 19,135 255,617
Increase: -- -- -- 19,135
Issuance of common stock
due to capital increase -- -- -- 19,135
------------------------------------------------------------------------------
Balance of capital surplus
at end of fiscal year 274,752 255,617 19,135 274,752
------------------------------------------------------------------------------
Balance of retained earnings
at beginning of fiscal year 102,888 210,676 (107,787) 210,676
Increase: 63,969 -- 63,969 --
Net income 63,969 -- 63,969 --
Decrease: (11,666) (37,400) 25,733 (107,787)
Net loss -- (32,530) 32,530 (97,369)
Cash dividends (9,898) (4,683) (5,214) (4,683)
Reduction in land
revaluation excess (1,768) (1) (1,766) (5,551)
Decrease in companies
accounted for by the
equity method -- (184) 184 (184)
------------------------------------------------------------------------------
Balance of retained earnings
at end of fiscal year 155,191 173,276 (18,084) 102,888
==============================================================================
47
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
4. Non-Consolidated Balance Sheets
======================================================================================================================
As of September 30, Increase/ As of Increase/
2003(A) 2002(B) (Decrease) March 31, (Decrease)
(in millions of yen) (A) - (B) 2003(C) (A) - (C)
======================================================================================================================
Assets:
Cash and due from banks 813,957 1,076,636 (262,678) 1,191,315 (377,357)
Call loans 112,593 6,130 106,463 256,132 (143,538)
Receivables under securities borrowing
transactions 1,117,283 1,357,685 (240,402) 983,156 134,126
Commercial paper and other debt purchased 23,076 10,525 12,550 16,418 6,657
Trading assets 376,341 425,935 (49,594) 350,573 25,767
Money held in trust 10,142 14,434 (4,292) 9,675 466
Investment securities 6,044,696 7,248,550 (1,203,854) 7,589,206 (1,544,510)
Allowance for losses on investment securities (403) -- (403) (157) (245)
Loans and bills discounted 8,477,601 8,792,477 (314,875) 8,261,722 215,878
Foreign exchanges 12,947 15,677 (2,729) 19,268 (6,321)
Other assets 1,074,053 1,260,854 (186,800) 1,136,410 (62,356)
Premises and equipment 152,153 163,399 (11,246) 159,504 (7,350)
Deferred tax assets 271,086 245,779 25,307 354,317 (83,230)
Deferred tax assets on land revaluation
losses 1,803 4,984 (3,181) 1,593 209
Customers' liabilities for acceptances
and guarantees 370,664 435,384 (64,720) 409,773 (39,109)
Allowance for loan losses (268,350) (370,118) 101,768 (278,996) 10,646
----------------------------------------------------------------------------------------------------------------------
Total assets 18,589,647 20,688,337 (2,098,689) 20,459,916 (1,870,268)
======================================================================================================================
Liabilities:
Deposits 10,511,433 11,166,422 (654,989) 11,143,611 (632,178)
Negotiable certificates of deposit 1,088,064 1,308,427 (220,363) 1,453,650 (365,586)
Call money 369,583 715,863 (346,280) 652,346 (282,763)
Payables under repurchase agreements 311,650 43,999 267,650 333,746 (22,095)
Payables under securities lending
transactions 1,893,685 1,732,065 161,619 1,769,364 124,320
Bills sold 108,100 502,000 (393,900) 473,200 (365,100)
Commercial paper 422,000 540,000 (118,000) 451,000 (29,000)
Trading liabilities 92,273 154,499 (62,225) 125,897 (33,623)
Borrowed money 325,009 358,340 (33,330) 341,545 (16,536)
Foreign exchanges 16,449 22,473 (6,023) 20,291 (3,841)
Bonds and notes 242,800 195,100 47,700 212,000 30,800
Due to trust account 1,336,541 1,635,468 (298,927) 1,401,617 (65,076)
Other liabilities 673,769 1,129,834 (456,064) 970,310 (296,541)
Reserve for employees' bonuses 3,119 3,754 (634) 3,629 (509)
Reserve for employees' retirement benefits 859 14,062 (13,203) 8,250 (7,391)
Reserve for losses on real
estate-collateralized loans sold -- 352 (352) -- --
Reserve for financial assistance to specific
borrowers -- 250 (250) 531 (531)
Reserve for expenses related to EXPO 2005
Japan 39 -- 39 19 20
Acceptances and guarantees 370,664 435,384 (64,720) 409,773 (39,109)
----------------------------------------------------------------------------------------------------------------------
Total liabilities 17,766,042 19,958,299 (2,192,256) 19,770,787 (2,004,744)
----------------------------------------------------------------------------------------------------------------------
Shareholder's equity:
Capital stock 324,279 305,143 19,135 324,279 --
Capital surplus 274,752 255,617 19,135 274,752 --
Capital reserve 274,752 255,617 19,135 274,752 --
Retained earnings 147,247 169,181 (21,934) 95,871 51,375
Revenue reserve 49,409 47,429 1,980 47,429 1,980
Voluntary reserves 19,207 139,208 (120,000) 139,208 (120,000)
Unappropriated profit 78,630 (17,456) 96,086 (90,766) 169,396
Net income 60,965 (27,558) 88,524 (95,327) 156,293
Land revaluation excess (2,649) (7,961) 5,311 (2,342) (307)
Unrealized gains (losses) on securities
available for sale 79,976 8,056 71,919 (3,431) 83,408
----------------------------------------------------------------------------------------------------------------------
Total shareholder's equity 823,604 730,037 93,567 689,128 134,476
----------------------------------------------------------------------------------------------------------------------
Total liabilities, minority interest
and shareholder's equity 18,589,647 20,688,337 (2,098,689) 20,459,916 (1,870,268)
======================================================================================================================
48
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
5. Non-Consolidated Statements of Operations
====================================================================================================
For the six months Increase/ For the
ended September 30, (Decrease) year ended
2003(A) 2002(B) (A) - (B) March 31,
(in millions of yen) 2003
====================================================================================================
Ordinary income:
Trust fees 27,829 38,575 (10,746) 82,927
Interest income: 150,440 174,700 (24,259) 347,379
(Interest on loans and discounts) 49,081 66,365 (17,283) 126,167
(Interest and dividends on securities) 84,975 75,528 9,446 165,780
Fees and commissions 25,206 22,998 2,207 47,689
Trading profits 1,109 771 338 1,947
Other business income 45,549 21,831 23,718 60,514
Other ordinary income 20,535 18,868 1,667 33,384
----------------------------------------------------------------------------------------------------
Total ordinary income 270,671 277,746 (7,074) 573,842
----------------------------------------------------------------------------------------------------
Ordinary expenses:
Interest expense: 47,133 77,456 (30,322) 153,224
(Interest on deposits) 18,660 30,086 (11,426) 57,360
Fees and commissions 6,726 4,019 2,707 9,534
Trading losses -- -- -- 248
Other business expenses 26,090 30,353 (4,262) 50,999
General and administrative expenses 85,172 83,824 1,347 166,652
Other ordinary expenses 30,778 123,196 (92,418) 397,702
----------------------------------------------------------------------------------------------------
Total ordinary expenses 195,902 318,850 (122,947) 778,362
----------------------------------------------------------------------------------------------------
Ordinary profit (loss) 74,769 (41,104) 115,873 (204,519)
----------------------------------------------------------------------------------------------------
Special gains 13,319 12,517 802 15,622
Special losses 17,413 3,311 14,101 9,062
----------------------------------------------------------------------------------------------------
Income (loss) before income taxes and others 70,675 (31,898) 102,573 (197,958)
----------------------------------------------------------------------------------------------------
Income taxes-current (18,896) 138 (19,035) 2,121
Income taxes-refund -- 3,210 (3,210) 3,459
Income taxes-deferred 28,606 (1,267) 29,873 (101,293)
----------------------------------------------------------------------------------------------------
Net income (loss) 60,965 (27,558) 88,524 (95,327)
----------------------------------------------------------------------------------------------------
Unappropriated retained earnings brought forward 17,356 10,104 7,252 10,104
Reduction in land revaluation excess 307 (1) 309 (5,542)
Unappropriated retained earnings 78,630 (17,456) 96,086 (90,766)
====================================================================================================
49
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
6. Notional principal or contract amount, market value and valuation
gains(losses) on derivatives
a. Interest rate-related transactions
(in millions of yen)
----------------------------------------------------------------------------
As of September 30, 2003
------------------------------------------------------
Notional
principal or Valuation gains
contract amount Market value (losses)
----------------------------------------------------------------------------
Exchange-traded
-------------------------------------------------------------------------
Futures 514,086 210 196
-------------------------------------------------------------------------
Options -- -- --
----------------------------------------------------------------------------
Over-the-counter
-------------------------------------------------------------------------
FRAs -- -- --
-------------------------------------------------------------------------
Swaps 16,440,719 48,015 17,768
-------------------------------------------------------------------------
Options -- -- --
-------------------------------------------------------------------------
Caps/Floors 410,678 2 (112)
-------------------------------------------------------------------------
Others 748,647 122 (256)
----------------------------------------------------------------------------
Total 48,350 17,595
----------------------------------------------------------------------------
Note:Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not included
in the above table.
b. Foreign exchange-related transactions
(in millions of yen)
----------------------------------------------------------------------------
As of September 30, 2003
------------------------------------------------------
Notional
principal Valuation gains
amount Market value (losses)
----------------------------------------------------------------------------
Exchange-traded
-------------------------------------------------------------------------
Futures -- -- --
-------------------------------------------------------------------------
Options -- -- --
----------------------------------------------------------------------------
Over-the-counter
-------------------------------------------------------------------------
Swaps 109,301 40 40
-------------------------------------------------------------------------
Forward contracts 6,098,678 3,466 3,466
-------------------------------------------------------------------------
Options 321,770 (503) (1,159)
-------------------------------------------------------------------------
Options -- -- --
----------------------------------------------------------------------------
Total 3,002 2,346
----------------------------------------------------------------------------
Notes:1. Valuation gains (losses) are recognized in the consolidated statement
of operations. Derivatives which qualify for hedge-accounting are not
included in the above table.
2. Forward exchange contracts and currency options are included in the
above table from this interim fiscal year.
3. Currency swaps which are accounted for by an accrual basis are not
included in the above table.
c. Equity-related transactions : N/A
50
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
d. Bond-related transactions
(in millions of yen)
---------------------------------------------------------------------------
As of September 30, 2003
--------------------------------------------------------
Notional
principal or Valuation gains
contract amount Market value (losses)
---------------------------------------------------------------------------
Exchange-traded
------------------------------------------------------------------------
Futures 44,039 (1,229) (1,229)
------------------------------------------------------------------------
Options -- -- --
---------------------------------------------------------------------------
Over-the-counter
------------------------------------------------------------------------
Options -- -- --
------------------------------------------------------------------------
Others -- -- --
---------------------------------------------------------------------------
Total (1,229) (1,229)
---------------------------------------------------------------------------
Note:Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not included
in the above table.
e. Commodity-related transactions : N/A
f. Credit derivatives
(in millions of yen)
---------------------------------------------------------------------------
As of September 30, 2003
--------------------------------------------------------
Notional
principal or
contract amount Market value Valuation gains
---------------------------------------------------------------------------
Over-the-counter
---------------------------------------------------------------------------
Credit default
options 11,452 13 13
------------------------------------------------------------------------
Others -- -- --
---------------------------------------------------------------------------
Total 13 13
---------------------------------------------------------------------------
Note:Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not included
in the above table.
51
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
[Reference]
1. Derivatives qualified for hedge-accounting [Consolidated]
(in billions of yen)
--------------------------------------------------------------
As of September 30, 2003
---------------------------------
Notional principal
or contract
amount Market value
--------------------------------------------------------------
Interest rate futures -- --
--------------------------------------------------------------
Interest rate swaps 5,988.3 (4.6)
--------------------------------------------------------------
Currency swaps 2,140.3 69.4
--------------------------------------------------------------
Other interest rate-related
transactions -- --
--------------------------------------------------------------
Others -- --
--------------------------------------------------------------
Total 64.8
--------------------------------------------------------------
Note : Derivatives which are accounted for on an accrual basis based on
"Accounting standard for financial instruments" are not included in the
table above.
Notional principal by the remaining life of the interest rate swaps above is as
follows:
(in billions of yen)
--------------------------------------------------------------------------------
As of September 30, 2003
-----------------------------------------------------------
Due after 1
Due within year through Due after 5
1 year 5 years years Total
--------------------------------------------------------------------------------
Receive-fix/pay-
floater 1,337.5 3,784.3 115.2 5,237.0
--------------------------------------------------------------------------------
Receive
floater/pay-fix 66.0 508.4 175.2 749.7
--------------------------------------------------------------------------------
Receive
floater/pay-floater 1.5 -- -- 1.5
--------------------------------------------------------------------------------
Total 1,405.1 4,292.7 290.4 5,988.3
--------------------------------------------------------------------------------
2. Deferred gains(losses) [Consolidated]
(in billions of yen)
-------------------------------------------------------------------
As of September 30, 2003
-----------------------------------------------
Deferred Net gains
Deferred gains losses (losses)
(A) (B) (A) - (B)
-------------------------------------------------------------------
Interest rate
futures 0.1 0.0 0.0
-------------------------------------------------------------------
Interest rate
swaps 169.9 169.3 0.6
-------------------------------------------------------------------
Currency swaps 2.2 1.4 0.8
-------------------------------------------------------------------
Other interest
rate-related
transactions -- 0.2 (0.2)
-------------------------------------------------------------------
Others -- -- --
-------------------------------------------------------------------
Total 172.3 171.0 1.3
-------------------------------------------------------------------
Note : Deferred gains (losses) attributable to the macro hedge accounting as of
September 30, 2003 are included in the above table.
52
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
7. Comparison of Statement of Trust Assets and Liabilities
(1) Comparison of Statement of Trust Assets and Liabilities
The Mitsubishi Trust and Banking Corporation
===========================================================================================
Increase/ As of Increase/
As of September 30, (Decrease) March 31, (Decrease)
(in millions of Yen) 2003(A) 2002(B) (A) - (B) 2003(C) (A) - (C)
===========================================================================================
Assets:
Loans and bills
discounted 895,594 1,178,974 (283,379) 1,107,555 (211,961)
Securities 5,540,057 6,564,841 (1,024,784) 6,659,887 (1,119,829)
Beneficiary rights 9,074,428 8,349,373 725,054 8,988,740 85,687
Securities held in
custody accounts 3,863,012 3,265,155 597,857 3,205,694 657,317
Money claims 3,447,631 2,336,357 1,111,274 2,926,071 521,560
Premises and equipment 1,862,032 1,233,730 628,302 1,532,783 329,249
Lease rights 23,791 21,911 1,880 21,819 1,972
Other claims 1,807,968 1,291,966 516,002 973,227 834,740
Call loans 341,520 266,061 75,458 294,567 46,952
Due from banking account 1,336,541 1,635,468 (298,927) 1,401,617 (65,076)
Cash and due from banks 1,480,557 1,665,996 (185,439) 1,484,012 (3,455)
-------------------------------------------------------------------------------------------
Total assets 29,673,137 27,809,837 1,863,299 28,595,978 1,077,158
===========================================================================================
Liabilities:
Money trusts 6,731,357 7,937,889 (1,206,531) 7,989,136 (1,257,778)
Pension trusts 81,877 92,413 (10,536) 73,937 7,940
Property formation
benefit trusts 12,344 12,125 218 12,174 169
Loan trusts 945,709 1,397,152 (451,442) 1,128,339 (182,629)
Investment trusts 8,835,970 8,192,101 643,869 8,758,551 77,419
Money entrusted other
than money trusts 295,772 240,944 54,827 231,072 64,699
Securities trusts 7,377,662 6,189,907 1,187,754 5,689,577 1,688,084
Money claim trusts 3,388,774 2,434,612 954,161 3,040,282 348,491
Equipment trusts -- 277 (277) 225 (225)
Land and fixtures trusts 172,140 178,141 (6,000) 174,931 (2,790)
Other trusts 1,831,527 1,134,270 697,256 1,497,749 333,777
-------------------------------------------------------------------------------------------
Total liabilities 29,673,137 27,809,837 1,863,299 28,595,978 1,077,158
===========================================================================================
Note:
Joint trust assets under the management of other companies
as of September 30, 2003 : 32,431,438 millions of yen
as of September 30, 2002 : 33,949,606 millions of yen
as of March 31, 2003 : 31,929,580 millions of yen
[Reference]
Of the joint trust assets the management of other companies mentioned above
Note, the balance at the end of the interim business period of fiscal
2003 includes the trust assets of millions of yen which were entrusted to
The Mitsubishi Trust and Banking Corporation and
Master Trust assets of the Service-Shared Co-Trusteeship (here in after
referred to as Trust Assets under Service-Shared Co-Trusteeship).
The comparison of statement of trust assets and liabilities which is
obtained by adding up Trust Assets under Service-Shared Co-Trusteeship is
given on the next page.
53
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
The Comparison of Statement of Trust Assets and Liabilities which is obtained by
adding up Trust Assets under Service-Shared Co-Trusteeship
===========================================================================================
Increase/ As of Increase/
As of September 30, (Decrease) March 31, (Decrease)
(in millions of Yen) 2003(A) 2002(B) (A) - (B) 2003(C) (A) - (C)
===========================================================================================
Assets:
Loans and bills
discounted 895,594 1,178,974 (283,379) 1,107,555 (211,961)
Securities 25,983,180 27,469,641 (1,486,460) 26,349,274 (366,093)
Beneficiary rights 10,171,247 8,363,011 1,808,235 9,806,748 364,499
Securities held in
custody accounts 3,863,703 3,265,826 597,876 3,206,357 657,346
Money claims 3,471,620 2,337,332 1,134,287 2,932,873 538,746
Premises and equipment 1,862,032 1,233,730 628,302 1,532,783 329,249
Lease rights 23,791 21,911 1,880 21,819 1,972
Other claims 2,324,554 1,580,633 743,920 1,344,798 979,756
Bills bought -- 4,511 (4,511) -- --
Call loans 1,275,194 1,566,679 (291,485) 1,069,204 205,989
Due from banking account 1,733,142 1,856,944 (123,802) 1,732,451 690
Cash and due from banks 1,804,849 1,981,810 (176,960) 1,706,589 98,260
-------------------------------------------------------------------------------------------
Total assets 53,408,912 50,861,008 2,547,903 50,810,455 2,598,456
===========================================================================================
Liabilities:
Money trusts 18,223,827 19,040,432 (816,605) 18,867,760 (643,933)
Pension trusts 8,206,779 7,489,650 717,128 7,423,101 783,677
Property formation
benefit trusts 12,344 12,125 218 12,174 169
Loan trusts 945,709 1,397,152 (451,442) 1,128,339 (182,629)
Investment trusts 8,835,970 8,192,101 643,869 8,758,551 77,419
Money entrusted other
than money trusts 2,357,868 2,994,234 (636,365) 2,223,773 134,094
Securities trusts 7,378,353 6,190,579 1,187,774 5,690,240 1,688,113
Money claim trusts 3,388,774 2,434,612 954,161 3,040,282 348,491
Equipment trusts -- 277 (277) 225 (225)
Land and fixtures trusts 172,140 178,141 (6,000) 174,931 (2,790)
Other trusts 3,887,143 2,931,701 955,441 3,491,074 396,069
-------------------------------------------------------------------------------------------
Total liabilities 53,408,912 50,861,008 2,547,903 50,810,455 2,598,456
===========================================================================================
54
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(2) Supplemental Data (As of September 30, 2003)
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) (in millions of Yen)
--------------------------------------------------------------------------------
Assets: Liabilities:
Loans and bills discounted 311,168 Principal 961,844
Securities 232,059 Reserve for possible
loan losses 926
Other 419,697 Other 154
--------------------------------------------------------------------------------
Total 962,925 Total 962,925
--------------------------------------------------------------------------------
Loan trusts
--------------------------------------------------------------------------------
Assets: Liabilities:
Loans and bills discounted 451,885 Principal 1,281,285
Securities 188,133 Special reserve funds 7,283
Other 655,750 Other 7,200
--------------------------------------------------------------------------------
Total 1,295,768 Total 1,295,768
--------------------------------------------------------------------------------
(3) Financial Highlights [Non-Consolidated]
(in millions of Yen)
===========================================================================================
Increase/ As of Increase/
As of September 30, (Decrease) March 31, (Decrease)
(in millions of Yen) 2003(A) 2002(B) (A) - (B) 2003(C) (A) - (C)
===========================================================================================
Total funds 38,988,158 40,414,211 (1,426,053) 40,028,638 (1,040,480)
Deposits 10,511,433 11,166,422 (654,989) 11,143,611 (632,178)
Negotiable certificates
of deposit 1,088,064 1,308,427 (220,363) 1,453,650 (365,586)
Money trusts 18,223,827 19,040,432 (816,605) 18,867,760 (643,933)
Pension trusts 8,206,779 7,489,650 717,128 7,423,101 783,677
Property formation
benefit trusts 12,344 12,125 218 12,174 169
Loan trusts 945,709 1,397,152 (451,442) 1,128,339 (182,629)
Loans and bills discounted 9,373,196 9,971,451 (598,255) 9,369,278 3,917
Banking account 8,477,601 8,792,477 (314,875) 8,261,722 215,878
Trust account 895,594 1,178,974 (283,379) 1,107,555 (211,961)
Investment securities 32,027,877 34,718,192 (2,690,315) 33,938,480 (1,910,603)
===========================================================================================
Note:
The balance at the end of the interim business period of fiscal 2003, trust
accounts figures adding up trust assets and liabilities which
were entrusted to The Mitsubishi Trust and Banking Corporation and Master
Trust assets of the Service-Shared Co-Trusteeship.
55
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
8. Financial Results (The Mitsubishi Trust and Banking Corporation and
Consolidated Subsidiaries)
(in millions of yen)
===============================================================================
Six months Six months
ended Increase/ ended
September 30, (Decrease) September 30,
2003 (A) (A) - (B) 2002 (B)
===============================================================================
Gross profits 177,049 25,157 151,891
(Gross ordinary profit before
trust accounts charge-offs) 185,481 28,855 (156,626)
----------------------------------------------------------------------------
Trust fees 27,829 (10,746) 38,575
-------------------------------------------------------------------------
Credit costs for trust
accounts (1) (8,432) (3,697) (4,735)
----------------------------------------------------------------------------
Net interest income 106,186 6,893 99,293
----------------------------------------------------------------------------
Net fees and commissions 22,539 331 22,208
----------------------------------------------------------------------------
Net trading profits 2,243 804 1,439
----------------------------------------------------------------------------
Net other business income 18,249 27,875 (9,625)
-------------------------------------------------------------------------
Net gains(losses)on debt
securities 15,619 27,939 (12,320)
-------------------------------------------------------------------------------
General and administrative expenses 82,502 (390) 82,893
-------------------------------------------------------------------------------
Net business profits before
credit costs for trust accounts
and provision for formula
allowance for loan losses* 102,979 29,245 73,733
-------------------------------------------------------------------------------
Provision for formula allowance
for loan losses (2) (2,037) (17,982) 15,945
-------------------------------------------------------------------------------
Net business profits** 96,583 43,531 53,052
-------------------------------------------------------------------------------
Net non-recurring gains (losses) (17,436) 78,288 (95,724)
----------------------------------------------------------------------------
Credit related costs (3) (11,478) 5,928 (17,407)
-------------------------------------------------------------------------
Losses on loan charge-offs (2,882) 3,839 (6,721)
-------------------------------------------------------------------------
Provision for specific
allowance for loan losses (4,237) 1,233 (5,470)
-------------------------------------------------------------------------
Losses on sales of loans to
the Resolution and Collection
Corporation 142 1,929 (1,787)
-------------------------------------------------------------------------
Provision for allowance for
loans to specific foreign
borrowers 245 (349) 595
-------------------------------------------------------------------------
Other credit related costs (4,746) (722) (4,023)
----------------------------------------------------------------------------
Net gains (losses) on equity
securities 1,759 72,162 (70,402)
-------------------------------------------------------------------------
Gains on sales of equity
securities 17,025 1,258 15,767
--------------------------------------------------------------------------
Losses on sales of equity
securities (13,297) 28,075 (41,373)
-------------------------------------------------------------------------
Losses on write down of equity
securities (1,968) 42,828 (44,796)
----------------------------------------------------------------------------
Equity in loss of affiliates (871) 1,466 (2,338)
----------------------------------------------------------------------------
Other (6,845) (1,269) (5,576)
===============================================================================
Ordinary profit (loss) 79,147 121,819 (42,672)
===============================================================================
Net special gains (4,798) (10,542) 5,743
----------------------------------------------------------------------------
Refund of enterprise taxes by
the Tokyo Metropolitan
Government 9,840 9,840 --
----------------------------------------------------------------------------
Gain on loans charged-off (4) 2,813 (2,476) 5,289
-------------------------------------------------------------------------------
Income (loss) before income taxes
and others 74,348 111,277 (36,928)
-------------------------------------------------------------------------------
Income taxes-current (19,007) (20,111) 1,104
-------------------------------------------------------------------------------
Income taxes-refund -- (3,284) 3,284
-------------------------------------------------------------------------------
Income taxes-deferred 28,658 30,578 (1,920)
-------------------------------------------------------------------------------
Minority interest 728 1,025 (297)
-------------------------------------------------------------------------------
Net income (loss) 63,969 96,500 (32,530)
-------------------------------------------------------------------------------
Notes:
* Net business profit before credit costs for trust accounts and provision
for formula allowance for loan losses
= Consolidated net business profit + credit costs for trust accounts +
provision for formula allowance for loan losses
** Net business profits = Net business profits of The Mitsubishi Trust and
Banking Corporation + Other consolidated entities' gross profits
- Other consolidated entities' general and administrative expenses - Other
consolidated entities' provision for formula allowance for loan
losses - Inter-company transactions.
(Reference)
-------------------------------------------------------------------------------
Total credit costs (1)+(2)+(3) 17,873 (20,214) 38,088
-------------------------------------------------------------------------------
Total credit costs + Gain on loans
charged-off (1)+(2)+(3)+(4) 15,060 (17,737) 32,798
-------------------------------------------------------------------------------
Number of consolidated subsidiaries 28 (2) 30
-------------------------------------------------------------------------------
Number of affiliated companies
accounted for by the equity method 13 -- 13
-------------------------------------------------------------------------------
56
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
Financial Results (The Mitsubishi Trust and Banking Corporation)
(in millions of yen)
===============================================================================
Six months Six months
ended Increase/ ended
September 30, (Decrease) September 30,
2003 (A) (A) - (B) 2002 (B)
===============================================================================
Gross profits 170,194 23,124 147,070
===============================================================================
(Gross ordinary profit before trust
accounts charge-offs)* 178,627 26,821 (151,805)
----------------------------------------------------------------------------
Domestic gross profits 98,234 (4,107) 102,341
-------------------------------------------------------------------------
Trust fees 27,829 (10,746) 38,575
----------------------------------------------------------------------
Trust fees before trust
accounts charge-offs* 36,262 (7,048) 43,310
-------------------------------------------------------------------
Loan trusts and money
trusts fees (Jointly
operated designated
money trusts before
trust accounts
charge-offs)* 19,184 (6,317) 25,502
-------------------------------------------------------------------
Other trust fees 17,077 (731) 17,808
----------------------------------------------------------------------
Credit costs for trust
accounts** (1) (8,432) (3,697) (4,735)
-------------------------------------------------------------------
Losses on loan
charge-offs (7,793) (5,292) (2,501)
-------------------------------------------------------------------
Other losses incurred
from sales of loans (639) 1,594 (2,234)
-------------------------------------------------------------------------
Net interest income 48,323 (4,860) 53,183
-------------------------------------------------------------------------
Net fees and commissions 18,695 (168) 18,863
-------------------------------------------------------------------------
Net trading profits (574) (2,157) 1,583
-------------------------------------------------------------------------
Net other business income 3,960 13,825 (9,864)
----------------------------------------------------------------------
Net gains (losses) on debt
securities 593 10,743 (10,150)
----------------------------------------------------------------------------
Non-domestic gross profits 71,960 27,231 44,728
-------------------------------------------------------------------------
Net interest income 54,993 10,910 44,082
-------------------------------------------------------------------------
Net fees and commissions (215) (331) 115
-------------------------------------------------------------------------
Net trading profits 1,684 2,496 (812)
-------------------------------------------------------------------------
Net other business income 15,498 14,155 1,343
----------------------------------------------------------------------
Net gains (losses) on debt
securities 15,026 17,206 (2,180)
-------------------------------------------------------------------------------
General and administrative expenses 77,326 (1,456) 78,783
----------------------------------------------------------------------------
Personnel expenses 31,354 (4,773) 36,128
----------------------------------------------------------------------------
Non-personnel expenses 43,309 2,545 40,764
----------------------------------------------------------------------------
Taxes 2,661 771 1,890
-------------------------------------------------------------------------------
Net business profits before credit
costs for trust accounts and
provision for formula allowance
for loan losses* 101,300 28,278 73,022
-------------------------------------------------------------------------------
Provision for formula allowance for
loan losses(2) (2,111) (18,631) 16,519
-------------------------------------------------------------------------------
Net business profits 94,979 43,212 51,767
-------------------------------------------------------------------------------
Net non-recurring losses (20,210) 72,661 (92,871)
----------------------------------------------------------------------------
Credit related costs (3) (11,557) 3,350 (14,907)
-------------------------------------------------------------------------
Losses on loan charge-offs (2,805) 3,591 (6,396)
-------------------------------------------------------------------------
Provision for specific
allowance for loan losses (4,393) (1,107) (3,285)
-------------------------------------------------------------------------
Losses on sales of loans to
the Resolution and Collection
Corporation 142 1,929 (1,787)
-------------------------------------------------------------------------
Provision for allowance for
loans to specific foreign
borrowers 245 (349) 595
-------------------------------------------------------------------------
Other credit related costs (4,746) (712) (4,033)
-------------------------------------------------------------------------------
Net gains (losses) on equity
securities 912 71,332 (70,420)
-------------------------------------------------------------------------
Gains on sales of equity
securities 17,022 1,307 15,715
-------------------------------------------------------------------------
Losses on sales of equity
securities (13,297) 27,991 (41,288)
-------------------------------------------------------------------------
Losses on write down of
equity securities (2,813) 42,033 (44,846)
----------------------------------------------------------------------------
Others (9,565) (2,021) (7,543)
===============================================================================
Ordinary profit (loss) 74,769 115,873 (41,104)
===============================================================================
Net special gains (losses) (4,094) (13,299) 9,205
----------------------------------------------------------------------------
Net losses on sales of premises
and equipment (3,692) (2,963) (728)
----------------------------------------------------------------------------
Gain on loans charged-off (4) 2,743 (2,509) 5,252
----------------------------------------------------------------------------
Amortization of net obligation
at transition (2,570) -- (2,570)
----------------------------------------------------------------------------
Losses on placing financial
assets to the trust for
retirement benefits (10,946) (10,946) --
----------------------------------------------------------------------------
Refund of enterprise taxes by
the Tokyo Metropolitan Government 9,840 9,840 --
-------------------------------------------------------------------------------
Income (loss) before income taxes
and others 70,675 102,573 (31,898)
-------------------------------------------------------------------------------
Income taxes-current (18,896) (19,035) 138
-------------------------------------------------------------------------------
Income taxes refund -- (3,210) 3,210
-------------------------------------------------------------------------------
Income taxes-deferred 28,606 29,873 (1,267)
===============================================================================
Net income (loss) 60,965 88,524 (27,558)
===============================================================================
Notes:
* Amounts before credit costs for loans in trusts with contracts for
compensating the principal
** Credit costs for loans in trusts with contracts for compensating the
principal
-------------------------------------------------------------------------------
Total credit costs (1)+(2)+(3) 17,878 (18,284) 36,162
-------------------------------------------------------------------------------
Total credit costs + Gain on loans
charged-off (1)+(2)+(3)+(4) 15,134 (15,774) 30,909
-------------------------------------------------------------------------------
57
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
9. Average interest rate spread
[Non-Consolidated] (percentage per annum)
--------------------------------------------------------------------------------
For the six months
ended
September30, Increase/
----------------------- (Decrease)
2003(A) 2002(B) (A)- (B)
-------------------------------------------------------------------------------
Total average interest rate on
interest-earning assets (a) 1.65 2.00 (0.35)
----------------------------------------------------------------------------
Average interest rate on
Loans and bills discounted 1.19 1.50 (0.30)
----------------------------------------------------------------------------
Average interest rate on
Investment securities 2.28 2.24 0.04
-------------------------------------------------------------------------------
Total average interest rate on
interest-bearing liabilities (b) 0.51 0.89 (0.38)
----------------------------------------------------------------------------
Average interest rate on
Deposits 0.30 0.50 (0.19)
-------------------------------------------------------------------------------
Total average interest rate
spread (a)-(b) 1.13 1.10 0.02
-------------------------------------------------------------------------------
Average interest rate spread in domestic business segment:(percentage per annum)
--------------------------------------------------------------------------------
Total average interest rate on
interest-earning assets (a) 0.92 1.05 (0.13)
-----------------------------------------------------------------------------
Average interest rate on
Loans and bills discounted 1.10 1.23 (0.13)
-----------------------------------------------------------------------------
Average interest rate on
Investment securities 0.92 0.94 (0.02)
--------------------------------------------------------------------------------
Total average interest rate on 0.18 0.28 (0.09)
interest-bearing liabilities (b)
-----------------------------------------------------------------------------
Average interest rate on
Deposits 0.14 0.21 (0.06)
--------------------------------------------------------------------------------
Total average interest rate
spread (a)-(b) 0.73 0.77 (0.03)
--------------------------------------------------------------------------------
10. Valuation Differences on Securities
(1) Valuation method of securities
--------------------------------------------------------------------------------
Trading Market value (valuation differences are recorded as profits
securities or loses)
--------------------------------------------------------------------------------
Debt securities Amortized cost
being held to
maturity
--------------------------------------------------------------------------------
Securities Market value (valuation differences are included in
available for shareholders' equity, net of income taxes)
sale
--------------------------------------------------------------------------------
(Reference) Securities in money held in trust
--------------------------------------------------------------------------------
Trading purposes Market value (valuation differences are recorded as
profits or loses)
(2) Valuation differences
[Consolidated]
(in millions of yen)
----------------------------------------------------------------------------------------------------------------------
As of September 30, As of September 30, As of March 31,
2003 2002 2003
----------------------------------------------------------------------------------------------------
Valuation differences Valuation differences Valuation differences
---------------- ---------------- ----------------
---------------- Gains Losses Gains Losses Gains Losses
(A) (A)-(B) (A)-(C) (B) (C)
----------------------------------------------------------------------------------------------------------------------
Debt securities
being held to
maturity 8,420 (5,416) (5,598) 8,423 2 13,837 13,837 -- 14,019 14,019 --
----------------------------------------------------------------------------------------------------------------------
Securities
available for
sale 135,667 121,664 138,398 199,952 64,285 14,002 268,201 254,198 (2,731) 207,233 209,964
-------------------------------------------------------------------------------------------------------------------
Domestic
equity
securities 46,804 192,873 190,684 89,617 42,812 (146,068) 68,617 214,685 (143,879) 20,982 164,862
-------------------------------------------------------------------------------------------------------------------
Domestic bonds 14,904 (33,306) (41,807) 17,076 2,172 48,210 48,469 259 56,711 56,922 210
-------------------------------------------------------------------------------------------------------------------
Other 73,958 (37,902) (10,478) 93,258 19,300 111,861 151,114 39,253 84,436 129,328 44,891
----------------------------------------------------------------------------------------------------------------------
Total 144,087 116,247 132,799 208,376 64,288 27,840 282,038 254,198 11,288 221,252 209,964
-------------------------------------------------------------------------------------------------------------------
Domestic
equity
securities 46,804 192,873 190,684 89,617 42,812 (146,068) 68,617 214,685 (143,879) 20,982 164,862
-------------------------------------------------------------------------------------------------------------------
Domestic bonds 21,312 (37,410) (46,826) 23,488 2,175 58,723 58,982 259 68,138 68,349 210
-------------------------------------------------------------------------------------------------------------------
Other 75,970 (39,215) (11,058) 95,270 19,300 115,185 154,438 39,253 87,029 131,920 44,891
----------------------------------------------------------------------------------------------------------------------
[Non-Consolidated] (in millions of yen)
----------------------------------------------------------------------------------------------------------------------
As of September 30, As of September 30, As of March 31,
2003 2002 2003
----------------------------------------------------------------------------------------------------
Valuation differences Valuation differences Valuation differences
---------------- ---------------- ----------------
---------------- Gains Losses Gains Losses Gains Losses
(A) (A)-(B) (A)-(C) (B) (C)
----------------------------------------------------------------------------------------------------------------------
Debt securities
being held to
maturity 7,912 (5,622) (5,682) 7,915 2 13,535 13,535 -- 13,595 13,595 --
----------------------------------------------------------------------------------------------------------------------
Securities
available for
sale 134,391 121,291 137,823 198,676 64,285 13,100 267,120 254,020 (3,431) 206,523 209,955
-------------------------------------------------------------------------------------------------------------------
Domestic
equity
securities 45,529 192,666 190,110 88,341 42,812 (147,137) 67,548 214,685 (144,581) 20,272 164,853
-------------------------------------------------------------------------------------------------------------------
Domestic bonds 14,904 (33,305) (41,807) 17,076 2,172 48,210 48,469 259 56,711 56,922 210
-------------------------------------------------------------------------------------------------------------------
Other 73,958 (38,069) (10,479) 93,258 19,300 112,027 151,102 39,075 84,437 129,328 44,890
----------------------------------------------------------------------------------------------------------------------
Total 142,303 115,668 132,140 206,592 64,288 26,635 280,655 254,020 10,163 220,118 209,955
-------------------------------------------------------------------------------------------------------------------
Domestic
equity
securities 45,529 192,666 190,110 88,341 42,812 (147,137) 67,548 214,685 (144,581) 20,272 164,853
-------------------------------------------------------------------------------------------------------------------
Domestic bonds 21,312 (37,410) (46,826) 23,488 2,175 58,723 58,982 259 68,138 68,349 210
-------------------------------------------------------------------------------------------------------------------
Other 75,462 (39,587) (11,143) 94,762 19,300 115,049 154,124 39,075 86,605 131,496 44,890
----------------------------------------------------------------------------------------------------------------------
58
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(3) Market Value Information for Securities in Trusts with Contracts for
Compensating the Principal Money Trusts (jointly operated designated money in
trust)
A. Market Value of Securities (in millions of yen)
-----------------------------------------------------------------------------
September 30, 2003
-----------------------------------------------------------------------------
Trust Assets at interim period end Market Value Valuation Gains
-----------------------------------------------------------------------------
232,059 238,072 6,013
-----------------------------------------------------------------------------
Note : A fair value is given where a fair value can be calculated for a
market-value equivalent.
B. Valuation Gains of Derivative Transaction : 1,486 millions of yen
Loan Trusts
A. Market Value of Securities (in millions of yen)
-----------------------------------------------------------------------------
September 30, 2003
-----------------------------------------------------------------------------
Trust Assets at interim period end Market Value Valuation Gains
-----------------------------------------------------------------------------
188,133 207,254 19,121
-----------------------------------------------------------------------------
Note : A fair value is given where a fair value can be calculated for a
market-value equivalent.
B. Valuation Gains of Derivative Transaction : 12,927 millions of yen
11. Risk-Adjusted Capital Ratio Based on the Standards of the BIS
[Consolidated] (in billions of yen except percentages)
----------------------------------------------------------------------------------------------
As of
September
30, As of
2003 (A) Increase/ Increase/ September As of
(Preliminary (Decrease) (Decrease) 30, March 31,
basis) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
----------------------------------------------------------------------------------------------
(1) Risk-adjusted capital
ratio 14.13% 2.68% 2.13% 11.44% 12.00%
(2) Tier 1 capital 747.2 16.8 60.4 730.4 686.7
(3) Tier 2 capital
includable as qualifying
capital 676.6 115.3 120.0 561.2 556.5
i) The amount of unrealized
gains on investment
securities, includable
as qualifying capital 61.0 54.7 61.0 6.3 --
ii) The amount of land
revaluation excess
includable as qualifying
capital (0.1) 5.4 1.3 (5.6) (1.5)
iii)Subordinated debt 492.7 72.6 61.7 420.0 431.0
(4) Deductions from total
qualifying capital 5.1 0.5 (0.8) 4.5 5.9
(5) Total qualifying capital
(2)+(3)-(4) 1,418.6 131.5 181.3 1,287.1 1,237.2
(6) Risk-adjusted assets 10,034.2 (1,207.7) (272.9) 11,242.0 10,307.2
----------------------------------------------------------------------------------------------
[Non-Consolidated] (in billions of yen except percentages)
----------------------------------------------------------------------------------------------
As of
September
30, As of
2003 (A) Increase/ Increase/ September As of
(Preliminary (Decrease) (Decrease) 30, March 31,
basis) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
----------------------------------------------------------------------------------------------
(1) Risk-adjusted capital 14.34% 2.86% 3.10% 11.47% 11.23%
ratio
(2) Tier 1 capital 740.8 10.5 58.9 730.2 681.9
(3) Tier 2 capital 668.1 107.8 104.9 560.3 563.2
includable as qualifying
capital
i) The amount of unrealized 60.4 54.5 60.4 5.8 --
gains on investment
securities, includable
as qualifying capital
ii) The amount of land (2.0) 3.8 (0.2) (5.8) (1.7)
revaluation excess
includable as qualifying
capital
iii)Subordinated debt 492.7 72.6 61.7 420.0 431.0
(4) Deductions from total 2.9 -- -- 2.9 2.9
qualifying capital
(5) Total qualifying capital 1,406.0 118.4 163.8 1,287.6 1,242.2
(2)+(3)-(4)
(6) Risk-adjusted assets 9,805.0 (1,412.0) (1,248.8) 11,217.0 11,053.9
----------------------------------------------------------------------------------------------
59
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
2 Loan Portfolio and Other
1. Risk-Monitored Loans
(Non-accrual loans, accruing loans contractually past due 3 months or
more and restructured loans)
[Consolidated]
(in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 36,425 7,776 (6,381) 28,649 42,807
--------------------------------------------------------------------------------------------
Past due loans 247,315 (173,308) (37,548) 420,624 284,864
--------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 429 66 (1,885) 362 2,314
--------------------------------------------------------------------------------------------
Restructured loans 185,840 (189,439) (81,108) 375,280 266,948
--------------------------------------------------------------------------------------------
Total 470,010 (354,906) (126,924) 824,916 596,934
-----------------------------------------------------------------------------------------------
Amount of direct reduction 237,409 (14,440) (59,001) 251,849 296,410
-----------------------------------------------------------------------------------------------
Loans and bills discounted 8,499,575 (322,988) 211,826 8,822,563 8,287,748
-----------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
--------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 0.42% 0.10% (0.08)% 0.32% 0.51%
--------------------------------------------------------------------------------------------
Past due loans 2.90% (1.85)% (0.52)% 4.76% 3.43%
--------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.00% 0.00% (0.02)% 0.00% 0.02%
--------------------------------------------------------------------------------------------
Restructured loans 2.18% (2.06)% (1.03)% 4.25% 3.22%
--------------------------------------------------------------------------------------------
Total 5.52% (3.82)% (1.67)% 9.35% 7.20%
--------------------------------------------------------------------------------------------
[Non-Consolidated]
(in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 36,406 12,630 (578) 23,775 36,984
--------------------------------------------------------------------------------------------
Past due loans 247,127 (169,085) (43,733) 416,212 290,861
--------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 429 66 (1,885) 362 2,314
--------------------------------------------------------------------------------------------
Restructured loans 185,831 (189,439) (81,428) 375,271 267,259
--------------------------------------------------------------------------------------------
Total 469,794 (345,828) (127,626) 815,622 597,420
-----------------------------------------------------------------------------------------------
Amount of direct reduction 234,642 (15,046) (59,526) 249,688 294,169
-----------------------------------------------------------------------------------------------
Loans and bills discounted 8,477,601 (314,875) 215,878 8,792,477 8,261,722
-----------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
--------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 0.42% 0.15% (0.01)% 0.27% 0.44%
--------------------------------------------------------------------------------------------
Past due loans 2.91% (1.81)% (0.60)% 4.73% 3.52%
--------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.00% 0.00% (0.02)% 0.00% 0.02%
--------------------------------------------------------------------------------------------
Restructured loans 2.19% (2.07)% (1.04)% 4.26% 3.23%
--------------------------------------------------------------------------------------------
Total 5.54% (3.73)% (1.68)% 9.27% 7.23%
--------------------------------------------------------------------------------------------
60
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
[Trust accounts : Loans in Trusts with Contracts
for Compensating the Principal] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 3,177 (6,951) (1,191) 10,129 4,369
--------------------------------------------------------------------------------------------
Past due loans 1,511 (4,934) (709) 6,445 2,220
--------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 601 (440) (317) 1,041 919
--------------------------------------------------------------------------------------------
Restructured loans 29,745 (11,288) (3,910) 41,033 33,655
--------------------------------------------------------------------------------------------
Total 35,035 (23,614) (6,129) 58,650 41,165
-----------------------------------------------------------------------------------------------
Loans and bills discounted 763,053 (205,814) (120,447) 968,867 883,501
-----------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
--------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 0.41% (0.62)% (0.07)% 1.04% 0.49%
--------------------------------------------------------------------------------------------
Past due loans 0.19% (0.46)% (0.05)% 0.66% 0.25%
--------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.07% (0.02)% (0.02)% 0.10% 0.10%
--------------------------------------------------------------------------------------------
Restructured loans 3.89% (0.33)% 0.08% 4.23% 3.80%
--------------------------------------------------------------------------------------------
Total 4.59% (1.46)% (0.06)% 6.05% 4.65%
--------------------------------------------------------------------------------------------
[Banking : Non-Consolidated and Trust Accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 39,583 5,678 (1,770) 33,905 41,354
--------------------------------------------------------------------------------------------
Past due loans 248,639 (174,019) (44,443) 422,658 293,082
--------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 1,030 (374) (2,202) 1,404 3,233
--------------------------------------------------------------------------------------------
Restructured loans 215,576 (200,728) (85,338) 416,304 300,915
--------------------------------------------------------------------------------------------
Total 504,829 (369,443) (133,755) 874,273 638,585
-----------------------------------------------------------------------------------------------
Loans and bills discounted 9,240,655 (520,689) 95,431 9,761,345 9,145,224
-----------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
--------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 0.42% 0.08% (0.02)% 0.34% 0.45%
--------------------------------------------------------------------------------------------
Past due loans 2.69% (1.63)% (0.51)% 4.32% 3.20%
--------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.01% (0.00)% (0.02)% 0.01% 0.03%
--------------------------------------------------------------------------------------------
Restructured loans 2.33% (1.93)% (0.95)% 4.26% 3.29%
--------------------------------------------------------------------------------------------
Total 5.46% (3.49)% (1.51)% 8.95% 6.98%
--------------------------------------------------------------------------------------------
[Banking : Consolidated and Trust Accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 39,602 824 (7,573) 38,778 47,176
--------------------------------------------------------------------------------------------
Past due loans 248,826 (178,243) (38,258) 427,070 287,085
--------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 1,030 (374) (2,202) 1,404 3,233
--------------------------------------------------------------------------------------------
Restructured loans 215,585 (200,728) (85,018) 416,313 300,603
--------------------------------------------------------------------------------------------
Total 505,045 (378,521) (133,053) 883,566 638,099
-----------------------------------------------------------------------------------------------
Loans and bills discounted 9,262,629 (528,802) 91,379 9,791,431 9,171,249
-----------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
--------------------------------------------------------------------------------------------
Loans to customers in
bankruptcy 0.42% 0.03% (0.08)% 0.39% 0.51%
--------------------------------------------------------------------------------------------
Past due loans 2.68% (1.67)% (0.44)% 4.36% 3.13%
--------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.01% (0.00)% (0.02)% 0.01% 0.03%
--------------------------------------------------------------------------------------------
Restructured loans 2.32% (1.92)% (0.95)% 4.25% 3.27%
--------------------------------------------------------------------------------------------
Total 5.45% (3.57)% (1.50)% 9.02% 6.95%
--------------------------------------------------------------------------------------------
61
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
2. Classification of risk-monitored Loans
Classification by geographic area
[Banking : Consolidated and Trust Accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
-----------------------------------------------------------------------------------------------
Domestic* 466,123 (363,891) (102,013) 830,015 568,137
-----------------------------------------------------------------------------------------------
Overseas* 38,921 (14,629) (31,040) 53,551 69,961
-----------------------------------------------------------------------------------------------
Asia 3,257 (9,166) (6,698) 12,423 9,956
-----------------------------------------------------------------------------------------
Indonesia 510 (5,922) (1,406) 6,433 1,916
Thailand 1,196 (2,044) (1,519) 3,241 2,716
Hong Kong 631 631 (2,843) -- 3,474
Other 919 (1,829) (929) 2,748 1,848
--------------------------------------------------------------------------------------------
United States of America 21,841 (3,395) (15,089) 25,236 36,931
Other 13,822 (2,068) (9,251) 15,890 23,074
-----------------------------------------------------------------------------------------------
Total 505,045 (378,521) (133,053) 883,566 638,099
-----------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
Classification by type of industry of borrowers
[Banking : Consolidated and Trust Accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September (Decrease) (Decrease) September March 31,
30, (A) - (B) (A) - (C) 30, 2003 (C)
2003 (A) 2002 (B)
-----------------------------------------------------------------------------------------------
Domestic* 466,123 (363,891) (102,013) 830,015 568,137
--------------------------------------------------------------------------------------------
Manufacturing 75,608 (33,245) (29,234) 108,854 104,842
Construction 121,519 (31,776) (18,637) 153,295 140,157
Wholesale and Retail 53,794 (19,596) (24,979) 73,391 78,774
Banks and other financial
institutions 2,677 (21,618) (5,178) 24,295 7,855
Real estate 67,884 (221,107) (18,209) 288,991 86,094
Services 77,271 (28,164) (502) 105,436 77,774
Other industries 49,129 (3,045) (2,158) 52,175 51,288
Consumer 18,237 (5,337) (3,114) 23,575 21,351
-----------------------------------------------------------------------------------------------
Overseas* 38,921 (14,629) (31,040) 53,551 69,961
--------------------------------------------------------------------------------------------
Banks and other financial
institutions 672 672 672 -- --
Commercial and industrial 36,304 27,881 (19,297) 8,423 55,602
Other 1,944 (43,183) (12,415) 45,127 14,359
-----------------------------------------------------------------------------------------------
Total 505,045 (378,521) (133,053) 883,566 638,099
-----------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
62
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
3. Allowance for Loan Losses
[Consolidated] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
-----------------------------------------------------------------------------------------------
Allowance for loan losses 268,813 (106,920) (12,214) 375,733 281,027
--------------------------------------------------------------------------------------------
Formula allowance for loan
losses 139,405 (22,460) (2,037) 161,865 141,442
--------------------------------------------------------------------------------------------
Specific allowance for loan
losses 128,825 (83,956) (9,931) 212,782 138,757
--------------------------------------------------------------------------------------------
Allowance for loans to
specific foreign borrowers 581 (503) (245) 1,085 827
-----------------------------------------------------------------------------------------------
Reserve for losses on real
estate-collateralized loans
sold -- (352) -- 352 --
-----------------------------------------------------------------------------------------------
[Non-Consolidated] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
-----------------------------------------------------------------------------------------------
Allowance for loan losses 268,350 (101,768) (10,646) 370,118 278,996
--------------------------------------------------------------------------------------------
Formula allowance for loan
losses 139,341 (22,155) (2,111) 161,497 141,453
--------------------------------------------------------------------------------------------
Specific allowance for loan
losses 128,426 (79,108) (8,289) 207,534 136,716
--------------------------------------------------------------------------------------------
Allowance for loans to
specific foreign borrowers 581 (503) (245) 1,085 827
-----------------------------------------------------------------------------------------------
Reserve for financial
assistance to specific
borrowers -- (250) (531) 250 531
-----------------------------------------------------------------------------------------------
Reserve for losses on real
estate-collateralized loans
sold -- (352) -- 352 --
-----------------------------------------------------------------------------------------------
[Trust accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
-----------------------------------------------------------------------------------------------
Special internal reserves 7,283 (3,867) (1,142) 11,151 8,425
-----------------------------------------------------------------------------------------------
Allowance for bad debts 926 (162) (75) 1,089 1,002
-----------------------------------------------------------------------------------------------
4. Coverage Ratio against Risk-Monitored Loans
[Consolidated] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------
Allowance for loan losses (a) 268,813 (106,920) (12,214) 375,733 281,027
-----------------------------------------------------------------------------------------------
Risk-monitored loans (b) 470,010 (354,906) (126,924) 824,916 596,934
-----------------------------------------------------------------------------------------------
Coverage ratio (a)/(b) 57.19% 11.64% 10.11% 45.54% 47.07%
-----------------------------------------------------------------------------------------------
[Non-Consolidated] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Allowance for loan losses (a) 268,350 (101,768) (10,646) 370,118 278,996
-----------------------------------------------------------------------------------------------
Risk-monitored loans (b) 469,794 (345,828) (127,626) 815,622 597,420
-----------------------------------------------------------------------------------------------
Coverage ratio (a)/(b) 57.12% 11.74% 10.42% 45.37% 46.70%
-----------------------------------------------------------------------------------------------
63
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
5. Disclosed Claims under the Financial Reconstruction Law (the "FRL")
[Banking : Non-Consolidated] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
-----------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt debtors 53,604 10,487 (29,543) 43,117 83,148
-----------------------------------------------------------------------------------------------
Claims under high risk 234,042 (159,435) (18,992) 393,477 253,034
-----------------------------------------------------------------------------------------------
Claims under close observation 189,804 (191,082) (83,529) 380,887 273,334
-----------------------------------------------------------------------------------------------
Total (1) 477,451 (340,029) (132,066) 817,481 609,517
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Normal claims 8,394,014 (44,114) 300,776 8,438,129 8,093,237
-----------------------------------------------------------------------------------------------
[Trust accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
-----------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt debtors 4,772 (12,632) (1,877) 17,404 6,649
-----------------------------------------------------------------------------------------------
Claims under high risk 5,596 (2,254) (742) 7,850 6,338
-----------------------------------------------------------------------------------------------
Claims under close observation 24,666 (8,728) (3,509) 33,395 28,176
-----------------------------------------------------------------------------------------------
Total (1) 35,035 (23,614) (6,129) 58,650 41,165
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Normal claims 728,018 (182,199) (114,318) 910,217 842,336
-----------------------------------------------------------------------------------------------
[Banking : Non-Consolidated Trust accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
-----------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt debtors 58,377 (2,144) (31,420) 60,521 89,798
-----------------------------------------------------------------------------------------------
Claims under high risk 239,638 (161,689) (19,735) 401,327 259,373
-----------------------------------------------------------------------------------------------
Claims under close observation 214,471 (199,810) (87,039) 414,282 301,511
-----------------------------------------------------------------------------------------------
Total (1) 512,487 (363,644) (138,195) 876,131 650,682
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Normal claims 9,122,032 (226,314) 186,458 9,348,346 8,935,574
-----------------------------------------------------------------------------------------------
64
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
6. Status of Secured Coverage on Disclosed Claims under the FRL
[Banking : Non-Consolidated] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------
Secured coverage amount (2) 382,476 (254,725) (96,255) 637,202 478,732
--------------------------------------------------------------------------------------------
Allowance for loan losses 156,101 (100,852) (16,769) 256,953 172,871
--------------------------------------------------------------------------------------------
Reserve for financial
support to specific
borrowers -- (250) (531) 250 531
--------------------------------------------------------------------------------------------
Collateral, guarantees, etc. 226,374 (153,622) (78,954) 379,997 305,328
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Secured coverage ratio (2)/(1) 80.10% 2.16% 1.56% 77.94% 78.54%
-----------------------------------------------------------------------------------------------
[Trust accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
-----------------------------------------------------------------------------------------------
Secured coverage amount (2) 21,487 (17,184) (5,374) 38,671 26,861
--------------------------------------------------------------------------------------------
Allowance for loan losses -- -- -- -- --
--------------------------------------------------------------------------------------------
Reserve for financial
assistance to specific
borrowers -- -- -- -- --
--------------------------------------------------------------------------------------------
Collateral, guarantees, etc. 21,487 (17,184) (5,374) 38,671 26,861
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Secured coverage ratio (2)/(1) 61.32% (4.60)% (3.92)% 65.93% 65.25%
-----------------------------------------------------------------------------------------------
[Banking : Non-Consolidated and Trust accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------
As of As of
September Increase/ Increase/ September As of
30, (Decrease) (Decrease) 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
-----------------------------------------------------------------------------------------------
Secured coverage amount (2) 403,963 (271,910) (101,630) 675,873 505,593
--------------------------------------------------------------------------------------------
Allowance for loan losses 156,101 (100,852) (16,769) 256,953 172,871
--------------------------------------------------------------------------------------------
Reserve for financial
support to specific
borrowers -- (250) (531) 250 531
--------------------------------------------------------------------------------------------
Collateral, guarantees, etc. 247,861 (170,807) (84,328) 418,669 332,190
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Secured coverage ratio (2)/(1) 78.82% 1.68% 1.12% 77.14% 77.70%
-----------------------------------------------------------------------------------------------
65
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
Secured Coverage of each category of Disclosed Claims under the FRL
[Banking : Non-Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------
Reserve for Collectable
financial amount by
assistance collateralized Coverage
Allowance to specific and guaranteed ratio Coverage ratio
Disclosed for loan borrowers loans [(B)+(C)]/ [(B)+(C)+(D)]/
Category amount (A) losses (B) (C) (D) [(A)-(D)] (A)
---------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and 53,604 2,926 -- 50,677 100.00% 100.00%
substantially
bankrupt debtors [83,148] [8,501] -- [74,647] [100.00%] [100.00%]
---------------------------------------------------------------------------------------------------------------------
Claims under high risk 234,042 118,160 -- 80,656 77.03% 84.94%
[253,034] [118,780] -- [97,433] [76.33%] [85.44%]
---------------------------------------------------------------------------------------------------------------------
Claims under close 189,804 35,014 -- 95,040 36.94% 68.52%
observation [273,334] [45,590] [531] [133,248] [32.92%] [65.62%]
---------------------------------------------------------------------------------------------------------------------
Sub total (1) 477,451 156,101 -- 226,374 62.17% 80.10%
[609,517] [172,871] [531] [305,328] [57.00%] [78.54%]
---------------------------------------------------------------------------------------------------------------------
Normal claims 8,394,014
[8,093,237]
---------------------------------------------------------------------------------------------------------------------
Total (2) 8,871,466
[8,702,755]
---------------------------------------------------------------------------------------------------------------------
Sub total (1)/ Total (2) 5.38%
[7.00%]
---------------------------------------------------------------------------------------------------------------------
Note: The upper figures are as of September 30, 2003. The lower figures with
bracket are as of March 31, 2003. Coverage ratios for Claims under high
risk and for Claims under close observation are listed under allowance for
possible loan losses, following concurrent application of the discount
cash flow method.
[Trust accounts] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------
Reserve for Collectable
financial amount by
assistance collateralized Coverage
Allowance to specific and guaranteed ratio Coverage ratio
Disclosed for loan borrowers loans [(B)+(C)]/ [(B)+(C)+(D)]/
Category amount (A) losses (B) (C) (D) [(A)-(D)] (A)
---------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and 4,772 -- 4,772 100.00%
substantially
bankrupt debtors [6,649] -- -- [6,649] [100.00%]
---------------------------------------------------------------------------------------------------------------------
Claims under high risk 5,596 -- -- 5,346 95.53%
[6,338] -- -- [5,745] [90.64%]
---------------------------------------------------------------------------------------------------------------------
Claims under close 24,666 -- -- 11,368 46.08%
observation [28,176] -- -- [14,466] [51.34%]
---------------------------------------------------------------------------------------------------------------------
Sub total (1) 35,035 -- -- 21,487 61.32%
[41,165] -- -- [26,861] [65.25%]
---------------------------------------------------------------------------------------------------------------------
Normal claims 728,018
[842,336]
---------------------------------------------------------------------------------------------------------------------
Total (2) 763,053
[883,501]
---------------------------------------------------------------------------------------------------------------------
Sub total (1)/ Total (2) 4.59%
[4.65%]
---------------------------------------------------------------------------------------------------------------------
Note: The upper figures are as of September 30, 2003. The lower figures with
bracket are as of March 31, 2003. Allowance for possible loan losses are
not booked for the trust account, but the Bank executes the direct
charge-offs of trust account "Claims to bankrupt and substantially
bankrupt debtors" and "Claims under high risk" in accordance with
standards applied to allowance for possible loan losses in the banking
account. The Bank allocated a total of 8.2 billion yen to the special
internal reserve and allowance for bad debt in the trust account, as of
September 30, 2003.
[Banking : Non-Consolidated and Trust accounts] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------
Reserve for Collectable
financial amount by
assistance collateralized Coverage
Allowance to specific and guaranteed ratio Coverage ratio
Disclosed for loan borrowers loans [(B)+(C)]/ [(B)+(C)+(D)]/
Category amount (A) losses (B) (C) (D) [(A)-(D)] (A)
---------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and 58,377 2,926 -- 55,450 100.00%
substantially
bankrupt debtors [89,798] [8,501] -- [81,297] [100.00%]
---------------------------------------------------------------------------------------------------------------------
Claims under high risk 239,638 118,160 -- 86,002 85.19%
[259,373] [118,780] -- [103,179] [85.57%]
---------------------------------------------------------------------------------------------------------------------
Claims under close 214,471 35,014 -- 106,409 65.94%
observation [301,511] [45,590] [531] [147,714] [64.28%]
---------------------------------------------------------------------------------------------------------------------
Sub total (1) 512,487 156,101 -- 247,861 78.82%
[650,682] [172,871] [531] [332,190] [77.70%]
---------------------------------------------------------------------------------------------------------------------
Normal claims 9,122,032
[8,935,574]
---------------------------------------------------------------------------------------------------------------------
9,634,520
Total (2) [9,586,256]
---------------------------------------------------------------------------------------------------------------------
Sub total (1)/ Total (2) 5.31%
[6.78%]
---------------------------------------------------------------------------------------------------------------------
Note: The upper figures are as of September 30, 2003. The lower figures with
bracket are as of March 31, 2003.
66
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
7. Progress in the Disposal of Problem Assets [Banking : Non-Consolidated and
Trust accounts] (excluding claims under close observation)
(1) Assets categorized as problem assets as of September 30, 2000 based on the
FRL
(in billions of yen)
----------------------------------------------------------------------------------------------------------------------------
As of As of As of As of As of As of As of
September 30, March 31, September 30, March 31, September 30, March 31, September 30, -------
2000 2001 2001 2002 2002 2003 (a) 2003 (b) (b)-(a)
----------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt
debtors 239.2 136.2 123.5 68.9 42.7 30.0 15.8 (14.1)
----------------------------------------------------------------------------------------------------------------------------
Claims under high risk 526.7 455.5 382.9 301.7 184.8 23.8 22.9 (0.8)
----------------------------------------------------------------------------------------------------------------------------
Total 766.0 591.8 506.4 370.7 227.6 53.8 38.8 (15.0)
----------------------------------------------------------------------------------------------------------------------------
(A) (B)
Progress in the disposal of problem assets
(in billions of yen)
----------------------------------------------------------------------
First half of fiscal 2003
----------------------------------------------------------------------
Disposition by borrowers' liquidation --
----------------------------------------------------------------------
Re-constructive disposition 0.0
----------------------------------------------------------------------
Improvements in financial status
due to re-constructive disposition --
----------------------------------------------------------------------
Loan sales to secondary market --
----------------------------------------------------------------------
Charge-off 2.0
----------------------------------------------------------------------
Other 12.9
-------------------------------------------------------------------
Collection of claims 12.3
-------------------------------------------------------------------
Improvements in financial status 0.6
----------------------------------------------------------------------
Total 15.0(B)
----------------------------------------------------------------------
Above (A) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
------------------------------------------------------------------------
First half of fiscal 2003
------------------------------------------------------------------------
Legal liquidation 12.3
------------------------------------------------------------------------
Quasi-legal liquidation --
------------------------------------------------------------------------
Split-off of problem loans 0.6
------------------------------------------------------------------------
Partial charge-off of smaller balance loans 3.1
------------------------------------------------------------------------
Entrust through the managed trust method to
the Resolution and Collection Corporation 22.7
------------------------------------------------------------------------
Total 38.8
------------------------------------------------------------------------
(2) Assets newly categorized as problem assets during second half of fiscal
2000 based on the FRL
(in billions of yen)
-------------------------------------------------------------------------------------------------------------
As of As of As of As of As of As of
March 31, September 30, March 31, September 30, March 31, September 30, -------
2001 2001 2002 2002 2003 (a) 2003 (b) (b)-(a)
-------------------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt 11.0 5.5 4.8 2.8 9.9 9.2 (0.6)
debtors
-------------------------------------------------------------------------------------------------------------
Claims under high risk 133.7 117.5 91.4 76.7 6.8 6.5 (0.2)
-------------------------------------------------------------------------------------------------------------
Total 144.8 123.0 96.3 79.6 16.7 15.8 (0.9)
-------------------------------------------------------------------------------------------------------------
(C) (D)
Progress in the disposal of problem assets
(in billions of yen)
-----------------------------------------------------------------
First half of fiscal 2003
-----------------------------------------------------------------
Disposition by borrowers' liquidation --
-----------------------------------------------------------------
Re-constructive disposition --
-----------------------------------------------------------------
Improvements in financial status
due to re-constructive disposition --
-----------------------------------------------------------------
Loan sales to secondary market --
-----------------------------------------------------------------
Charge-off 0.5
-----------------------------------------------------------------
Other 0.3
--------------------------------------------------------------
Collection of claims 0.3
--------------------------------------------------------------
Improvements in financial status 0.0
-----------------------------------------------------------------
Total 0.9 (D)
-----------------------------------------------------------------
Above (C) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
------------------------------------------------------------------------
First half of fiscal 2003
------------------------------------------------------------------------
Legal liquidation 8.8
------------------------------------------------------------------------
Quasi-legal liquidation --
------------------------------------------------------------------------
Split-off of problem loans --
------------------------------------------------------------------------
Partial charge-off of smaller balance loans 0.5
------------------------------------------------------------------------
Entrust through the managed trust method to
the Resolution and Collection Corporation --
------------------------------------------------------------------------
Total 9.4
------------------------------------------------------------------------
67
(3) Assets newly categorized as problem assets during first half of fiscal 2001
based on the FRL
(in billions of yen)
----------------------------------------------------------------------------------------------------------
As of As of As of As of As of
September 30, March 31, September 30, March 31, September 30, ---------
2001 2002 2002 2003 (a) 2003 (b) (b) - (a)
----------------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt
debtors 3.0 16.4 1.5 1.4 0.8 (0.5)
----------------------------------------------------------------------------------------------------------
Claims under high risk 80.0 30.2 21.6 6.4 3.7 (2.7)
----------------------------------------------------------------------------------------------------------
Total 83.1 46.7 23.2 7.8 4.6 (3.2)
----------------------------------------------------------------------------------------------------------
(E) (F)
Progress in the disposal of problem assets
(in billions of yen)
-----------------------------------------------------------------
First half of fiscal 2003
-----------------------------------------------------------------
Disposition by borrowers' liquidation --
-----------------------------------------------------------------
Re-constructive disposition --
-----------------------------------------------------------------
Improvements in financial status due --
to re-constructive disposition
-----------------------------------------------------------------
Loan sales to secondary market --
-----------------------------------------------------------------
Charge-off 0.2
-----------------------------------------------------------------
Other 3.0
-----------------------------------------------------------------
Collection of claims 1.1
-----------------------------------------------------------------
Improvements in financial status 1.8
-----------------------------------------------------------------
Total 3.2(F)
-----------------------------------------------------------------
Above (E) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
------------------------------------------------------------------------
First half of fiscal 2003
------------------------------------------------------------------------
Legal liquidation 0.1
------------------------------------------------------------------------
Quasi-legal liquidation --
------------------------------------------------------------------------
Split-off of problem loans --
------------------------------------------------------------------------
Partial charge-off of smaller balance loans 1.1
------------------------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection Corporation --
------------------------------------------------------------------------
Total 1.3
------------------------------------------------------------------------
(4) Assets newly categorized as problem assets during second half of fiscal
2001 based on the FRL
(in billions of yen)
--------------------------------------------------------------------------------------------------------
As of As of As of As of
March 31, September 30, March 31, September 30, --------
2002 2002 2003 (a) 2003 (b) (b) - (a)
--------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially 6.3 8.9 7.5 4.8 (2.7)
bankrupt debtors
--------------------------------------------------------------------------------------------------------
Claims under high risk 68.0 28.4 9.5 6.6 (2.9)
--------------------------------------------------------------------------------------------------------
Total 74.4 37.3 17.1 11.5 (5.6)
--------------------------------------------------------------------------------------------------------
(G) (H)
Progress in the disposal of problem assets
(in billions of yen)
-----------------------------------------------------------------
First half of fiscal 2003
-----------------------------------------------------------------
Disposition by borrowers' liquidation --
-----------------------------------------------------------------
Re-constructive disposition --
-----------------------------------------------------------------
Improvements in financial status
due to re-constructive disposition --
-----------------------------------------------------------------
Loan sales to secondary market --
-----------------------------------------------------------------
Charge-off 1.8
-----------------------------------------------------------------
Other 3.8
--------------------------------------------------------------
Collection of claims 3.7
--------------------------------------------------------------
Improvements in financial status 0.0
-----------------------------------------------------------------
Total 5.6(H)
-----------------------------------------------------------------
Above (G) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
------------------------------------------------------------------------
First half of fiscal 2003
------------------------------------------------------------------------
Legal liquidation 0.6
------------------------------------------------------------------------
Quasi-legal liquidation 2.4
------------------------------------------------------------------------
Split-off of problem loans -
------------------------------------------------------------------------
Partial charge-off of smaller balance loans 1.9
------------------------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection Corporation --
------------------------------------------------------------------------
Total 5.0
------------------------------------------------------------------------
68
(5) Assets newly categorized as problem assets during first half of fiscal 2002
based on the FRL
(in billions of yen)
--------------------------------------------------------------------------------------------
As of As of As of
September 30, March 31, September 30, ---------
2002 2003 (a) 2003 (b) (b) - (a)
--------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 4.3 15.4 13.3 (2.0)
--------------------------------------------------------------------------------------------
Claims under high risk 89.5 35.9 15.8 (20.0)
--------------------------------------------------------------------------------------------
Total 93.9 51.3 29.2 (22.1)
--------------------------------------------------------------------------------------------
(I) (J)
Progress in the disposal of problem assets
(in billions of yen)
-----------------------------------------------------------------
First half of fiscal 2003
-----------------------------------------------------------------
Disposition by borrowers' liquidation -
-----------------------------------------------------------------
Re-constructive disposition 0.5
-----------------------------------------------------------------
Improvements in financial status due
to re-constructive disposition 0.3
-----------------------------------------------------------------
Loan sales to secondary market 1.5
-----------------------------------------------------------------
Charge-off 0.2
-----------------------------------------------------------------
Other 19.4
--------------------------------------------------------------
Collection of claims 3.0
--------------------------------------------------------------
Improvements in financial status 16.3
-----------------------------------------------------------------
Total 22.1(J)
-----------------------------------------------------------------
Above (I) includes the following figures which facilitates the final disposal of
problem loans.
(in billions of yen)
------------------------------------------------------------------------
First half of fiscal 2003
------------------------------------------------------------------------
Legal liquidation 13.2
------------------------------------------------------------------------
Quasi-legal liquidation --
------------------------------------------------------------------------
Split-off of problem loans --
------------------------------------------------------------------------
Partial charge-off of smaller balance loans 0.4
------------------------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection Corporation --
------------------------------------------------------------------------
Total 13.6
------------------------------------------------------------------------
(6) Assets newly categorized as problem assets during second half of fiscal 2002
based on the FRL
(in billions of yen)
----------------------------------------------------------------------------
As of As of
March 31, September 30, ---------
2003 (a) 2003 (b) (b) - (a)
----------------------------------------------------------------------------
Claims to bankrupt and substantially 25.3 14.0 (11.3)
bankrupt debtors
----------------------------------------------------------------------------
Claims under high risk 176.6 151.3 (25.3)
----------------------------------------------------------------------------
Total 202.0 165.3 (36.6)
----------------------------------------------------------------------------
(K) (L)
Progress in the disposal of problem assets
(in billions of yen)
-----------------------------------------------------------------
First half of fiscal 2003
-----------------------------------------------------------------
Disposition by borrowers' liquidation --
-----------------------------------------------------------------
Re-constructive disposition --
-----------------------------------------------------------------
Improvements in financial status due
to re-constructive disposition --
-----------------------------------------------------------------
Loan sales to secondary market 2.7
-----------------------------------------------------------------
Charge-off 5.7
-----------------------------------------------------------------
Other 28.1
--------------------------------------------------------------
Collection of claims 24.3
--------------------------------------------------------------
Improvements in financial status 3.8
--------------------------------------------------------------
Total 36.6(L)
-----------------------------------------------------------------
Above (K) includes the following figures which facilitates the
final disposal of problem loans.
(in billions of yen)
------------------------------------------------------------------------
First half of fiscal 2003
------------------------------------------------------------------------
Legal liquidation 4.4
------------------------------------------------------------------------
Quasi-legal liquidation --
------------------------------------------------------------------------
Split-off of problem loans --
------------------------------------------------------------------------
Partial charge-off of smaller balance loans 2.3
------------------------------------------------------------------------
Entrust through the managed trust method
to the Resolution and Collection Corporation --
------------------------------------------------------------------------
Total 6.7
------------------------------------------------------------------------
69
(7) Assets newly categorized as problem assets during first half of
fiscal 2003 based on the FRL
(in billions of yen)
----------------------------------------------------
As of
September 30,
2003
----------------------------------------------------
Claims to bankrupt and substantially 0.1
bankrupt debtors
----------------------------------------------------
Claims under high risks 32.4
----------------------------------------------------
Total 32.6
----------------------------------------------------
(8) Historical trend of problem assets based on the
FRL
(in billions of yen)
----------------------------------------------------------------------------------------------------------------------------
As of As of As of As of As of As of As of
September 30, March 31, September 30, March 31, September 30, March 31, September 30 -------
2000 2001 2001 2002 2002 2003 (a) 2003 (b) (b)-(a)
----------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and 239.2 147.3 132.0 96.7 60.5 89.7 58.3 (31.4)
substantially
bankrupt debtors
----------------------------------------------------------------------------------------------------------------------------
Claims under high 526.7 589.2 580.5 491.5 401.3 259.3 239.6 (19.7)
risk
----------------------------------------------------------------------------------------------------------------------------
Total 766.0 736.6 712.6 588.2 461.8 349.1 298.0 (51.1)
----------------------------------------------------------------------------------------------------------------------------
70
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
8. Classification of Loans by Type of Industry
(1) Loan by type of industry [Banking : Non-Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------
Domestic offices
(excluding loans booked at
offshore markets) 8,135,696 (49,099) 376,493 8,184,795 7,759,202
-----------------------------------------------------------------------------------------------
Manufacturing 1,192,922 508 24,772 1,192,414 1,168,150
Agriculture 1,791 417 244 1,374 1,547
Forestry -- (100) (100) 100 100
Fishery 25,496 9,058 2,857 16,438 22,639
Mining 5,380 (1,343) (664) 6,723 6,044
Construction 263,852 (30,296) (7,995) 294,148 271,847
Utilities 127,078 (313) (24,672) 127,391 151,750
Media and Communication 845,497 76,792 (1,030) 768,705 846,527
Wholesale and Retail 664,635 (136,290) (24,535) 800,925 689,170
Banks and other
financial institutions 2,111,843 5,288 151,264 2,106,555 1,960,579
Real estate 1,025,939 (156,905) (6,963) 1,182,844 1,032,902
Services 671,841 (181,277) (4,533) 853,118 676,374
Municipal government 575,228 314,557 231,424 260,671 343,804
Other industries 624,186 50,803 36,425 573,383 587,761
--------------------------------------------------------------------------------------------------
Overseas offices and loans
booked at offshore markets 341,905 (265,776) (160,614) 607,681 502,520
--------------------------------------------------------------------------------------------------
Total 8,477,601 (314,875) 215,878 8,792,477 8,261,722
--------------------------------------------------------------------------------------------------
(2) Domestic consumer loans [Banking : Non-Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------
Total domestic consumer loans 294,492 42,591 17,100 251,900 277,392
-----------------------------------------------------------------------------------------------
Housing loans 266,534 46,075 19,018 220,458 247,515
-----------------------------------------------------------------------------------------------
Others 27,957 (3,483) (1,918) 31,441 29,876
--------------------------------------------------------------------------------------------------
(3) Domestic loans to small and medium-sized companies
[Banking : Non-Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------
Domestic loans to small
and medium-sized companies 2,739,335 (873,678) 19,873 3,613,013 2,719,462
--------------------------------------------------------------------------------------------------
Percentage to total
domestic loans 33.67% (10.47)% (1.37)% 44.14% 35.04%
--------------------------------------------------------------------------------------------------
71
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(4) Loan by type of industry [Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------
Domestic offices
(excluding loans booked at
offshore markets) 895,594 (283,379) (211,961) 1,178,974 1,107,555
-----------------------------------------------------------------------------------------------
Manufacturing 49,425 (30,051) (27,370) 79,476 76,795
Agriculture -- -- -- -- --
Forestry 26 (7) (4) 33 30
Fishery 1,225 268 (347) 957 1,572
Mining 77 (146) (52) 223 129
Construction 5,473 (6,364) (2,399) 11,837 7,872
Utilities 117,471 (34,762) (17,733) 152,233 135,204
Media and Communication 107,069 (53,015) (17,491) 160,084 124,560
Wholesale and Retail 10,672 (4,597) (6,518) 15,269 17,190
Banks and other
financial institutions 100,227 (48,660) (97,495) 148,887 197,722
Real estate 71,275 (17,886) (6,525) 89,161 77,800
Services 46,655 (21,340) (6,112) 67,995 52,767
Municipal government 36,823 (3,630) (950) 40,453 37,773
Other industries 349,168 (63,191) (28,966) 412,359 378,134
--------------------------------------------------------------------------------------------------
Overseas offices and loans
booked at offshore markets -- -- -- -- --
--------------------------------------------------------------------------------------------------
Total 895,594 (283,379) (211,961) 1,178,974 1,107,555
--------------------------------------------------------------------------------------------------
(5) Domestic consumer loans [Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------
Total domestic consumer loans 246,994 (44,368) (21,411) 291,362 268,405
-----------------------------------------------------------------------------------------------
Housing loans 244,050 (43,474) (21,000) 287,524 265,050
-----------------------------------------------------------------------------------------------
Others 2,943 (894) (411) 3,837 3,354
--------------------------------------------------------------------------------------------------
(6) Domestic loans to small and medium-sized companies
[Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------
Domestic loans to small
and medium-sized companies 541,359 (128,643) (125,042) 670,002 666,401
--------------------------------------------------------------------------------------------------
Percentage to total
domestic loans 60.44% 3.61% 0.27% 56.82% 60.16%
--------------------------------------------------------------------------------------------------
72
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(7) Loan by type of industry
[Banking : Non-Consolidated and Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------
Domestic offices
(excluding loans booked at
offshore markets) 9,031,290 (332,479) 164,532 9,363,769 8,866,758
-----------------------------------------------------------------------------------------------
Manufacturing 1,242,347 (29,543) (2,599) 1,271,890 1,244,946
Agriculture 1,791 417 244 1,374 1,547
Forestry 26 (107) (104) 133 130
Fishery 26,722 9,327 2,511 17,395 24,211
Mining 5,457 (1,490) (716) 6,947 6,173
Construction 269,325 (36,660) (10,395) 305,985 279,720
Utilities 244,550 (35,075) (42,405) 279,625 286,955
Media and Communication 952,567 23,777 (18,521) 928,790 971,088
Wholesale and Retail 675,309 (140,886) (31,052) 816,195 706,361
Banks and other
financial institutions 2,212,071 (43,372) 53,769 2,255,443 2,158,302
Real estate 1,097,214 (174,791) (13,489) 1,272,005 1,110,703
Services 718,497 (202,617) (10,644) 921,114 729,141
Municipal government 612,051 310,926 230,474 301,125 381,577
Other industries 973,354 (12,389) 7,459 985,743 965,895
--------------------------------------------------------------------------------------------------
Overseas offices and loans
booked at offshore markets 341,905 (265,776) (160,614) 607,681 502,520
--------------------------------------------------------------------------------------------------
Total 9,373,196 (598,255) 3,917 9,971,451 9,369,278
--------------------------------------------------------------------------------------------------
(8) Domestic consumer loans
[Banking : Non-Consolidated and Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------
Total domestic consumer loans 541,486 (1,776) (4,311) 543,263 545,797
-----------------------------------------------------------------------------------------------
Housing loans 510,584 2,601 (1,981) 507,983 512,566
-----------------------------------------------------------------------------------------------
Others 30,901 (4,378) (2,330) 35,279 33,231
--------------------------------------------------------------------------------------------------
(9) Domestic loans to small and medium-sized companies
[Banking : Non-Consolidated and Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
--------------------------------------------------------------------------------------------------
Domestic loans to small
and medium-sized companies 3,280,695 (1,002,320) (105,168) 4,283,015 3,385,863
--------------------------------------------------------------------------------------------------
Percentage to total
domestic loans 36.32% (9.41)% (1.86)% 45.74% 38.18%
--------------------------------------------------------------------------------------------------
73
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
9. Loans and Deposits [Non-Consolidated]
(in millions of yen)
---------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Deposits (ending balance) 10,511,433 (654,989) (632,178) 11,166,422 11,143,611
---------------------------------------------------------------------------------------------------
Deposits (average balance) 11,092,470 (1,695) (80,172) 11,094,165 11,172,642
---------------------------------------------------------------------------------------------------
Loans (ending balance) 8,477,601 (314,875) 215,878 8,792,477 8,261,722
---------------------------------------------------------------------------------------------------
Loans (average balance) 8,208,560 (612,920) (650,567) 8,821,481 8,859,128
---------------------------------------------------------------------------------------------------
10. Domestic Deposits [Non-Consolidated]
(in millions of yen)
---------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Individuals 6,734,195 229,722 52,935 6,504,473 6,681,259
------------------------------------------------------------------------------------------------
Corporations and others 2,991,376 (186,268) (68,085) 3,177,644 3,059,461
------------------------------------------------------------------------------------------------
Domestic deposits 9,725,571 43,453 (15,149) 9,682,118 9,740,721
---------------------------------------------------------------------------------------------------
Note : Amounts do not include negotiable certificates of deposit, deposits of
overseas offices and JOM accounts.
11. Number of Employees [Non-Consolidated]
---------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Number of Employees 6,092 (359) (96) 6,451 6,188
---------------------------------------------------------------------------------------------------
12. Number of Offices [Non-Consolidated]
---------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2003 (A) (A) - (B) (A) - (C) 2002 (B) 2003 (C)
---------------------------------------------------------------------------------------------------
Domestic : 50 (5) (3) 55 53
------------------------------------------------------------------------------------------------
Head office and Branches 48 (3) (1) 51 49
Sub Branches & Agencies 2 (2) (2) 4 4
---------------------------------------------------------------------------------------------------
Overseas : 8 -- -- 8 8
------------------------------------------------------------------------------------------------
Branches 5 -- -- 5 5
Sub - branches -- -- -- -- --
Representative offices 3 -- -- 3 3
---------------------------------------------------------------------------------------------------
Total 58 (5) (3) 63 61
---------------------------------------------------------------------------------------------------
74
Mitsubishi Tokoyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
13. Status of Deferred Tax Assets [Non-Consolidated]
(1) Tax Effects of the Items Comprising
Net Deferred Tax Assets
[Non-Consolidated] (in billions of yen)
-------------------------------------------------------------------------------
Sep. 30, 2003
---------
vs. Mar.
31, 2003
-------------------------------------------------------------------------------
Deferred tax assets 330.4 (27.6)
----------------------------------------------------------------------------
Allowance for loan losses 130.1 (10.7)
----------------------------------------------------------------------------
Write down of investment securities 15.4 (4.4)
----------------------------------------------------------------------------
Net operating loss carryforwards 213.3 (27.0)
----------------------------------------------------------------------------
Reserve for employees' retirement benefits 4.7 1.1
----------------------------------------------------------------------------
Unrealized losses on securities available for sale -- (1.3)
----------------------------------------------------------------------------
Other 12.2 (1.5)
----------------------------------------------------------------------------
Valuation allowance (45.6) 16.4
-------------------------------------------------------------------------------
Deferred tax liabilities 59.3 55.6
----------------------------------------------------------------------------
Gains on placing trust for retirement benefits -- (1.3)
----------------------------------------------------------------------------
Unrealized gains (losses) on securities available
for sale 54.4 54.4
----------------------------------------------------------------------------
Other 4.9 2.6
-------------------------------------------------------------------------------
Net amount of deferred tax assets 271.0 (83.2)
-------------------------------------------------------------------------------
[Consolidated]
-------------------------------------------------------------------------------
Net amount of deferred tax assets 271.9 (81.9)
-------------------------------------------------------------------------------
(2) Net Business Profits before Credit Costs and
Taxable Income (Current Interim Fiscal Year)
[Non-Consolidated] (in billions of yen)
-----------------------------------------------------------
Interim FY 2003
-----------------------------------------------------------
Net business profits before credit costs 101.3
-----------------------------------------------------------
Credit related costs 17.8
-----------------------------------------------------------
Income before income taxes 70.6
-----------------------------------------------------------
Reconciliation to taxable income (37.1)
-----------------------------------------------------------
Taxable Income 33.5
-----------------------------------------------------------
(3) Net Business Profits before Credit Costs and
Taxable Income (Past Five Fiscal Year)
[Non-Consolidated] (in billions of yen)
------------------------------------------------------------------------------
1998 1999 2000 2001 2002
-------------------------------------------------------------------------------
Net business profits before credit costs 283.2 177.7 163.0 156.2 178.4
-------------------------------------------------------------------------------
Credit related costs 503.5 147.9 176.4 181.5 144.8
-------------------------------------------------------------------------------
Income before income taxes (194.6) 129.5 26.3 (41.9) (197.9)
-------------------------------------------------------------------------------
Reconciliation to taxable income 242.3 (158.4) (88.6) 4.6 (199.7)
-------------------------------------------------------------------------------
Taxable Income 47.7 (28.9) (62.3) (37.2) (397.6)
-------------------------------------------------------------------------------
(4) Classification Based on Prior Year Operating Results As Provided in the
JICPA Audit Committee Report No.66
Although we recorded taxable income for six months ended September 30,
2003, we are classified as "4" described above since we have material net
operating loss carryforwards. However since we believe the net operating
loss carryforwards are attributable to extraordinary factors such as
changes in laws and regulations, we apply the exception to classification
4. (Five years' future taxable income is estimable.)
[Extraordinary Factors Such as Changes in Laws and Regulations]
Our net operating loss carryforwards were incurred due to, among other
things, the following: (i) we accelerated the final disposal of
nonperforming loans in response to both the "Emerging Economic Package,"
which provided guidance to major banks to remove from their balance sheets
claims to debtors classified as "likely to become bankrupt" or below, and
the "Program for Financial Revival," which urged major banks to reduce the
ratio of disclosed claims to total claims by about half; and (ii) we
reduced our holdings of strategic equity investments under the "Law
Concerning Restriction, etc. of Banks' Shareholdings etc."
(5) Realizability of Deferred Tax Assets at September 30, 2003 (Assumptions)
(in billions of yen)
----------------------------------------------------------------------------
Five year total
(2003 2/nd/ half
to 2008 1/st/ half)
-----------------------------------------------------------------------------
Net business profits (based on our business plan)(*1) 930.0
-----------------------------------------------------------------------------
Net business profits (basis of realizability
determination) (*2) 880.0
-----------------------------------------------------------------------------
Income before income taxes (basis of realizability
determination) 580.0
-----------------------------------------------------------------------------
Taxable income before adjustments (basis of realizability
determination) (*3) 730.0
-----------------------------------------------------------------------------
Temporary difference + net operating loss carryforwards
(for which deferred tax assets shall be recognized) (*4) 880.0
-----------------------------------------------------------------------------
Deferred tax assets at September 30, 2003 (*5) 330.4
-----------------------------------------------------------------------------
(*1) Before credit costs
(*2) Based on the scenario that current short-term interest rate level continues
for the next five years
(*3) Before reversals of existing deductible temporary differences and net
operating loss carryforwards
(*4) (*4) is realizable based on (*3) and taxable income of group companies
subject to consolidated corporate-tax
(*5) "Temporary difference + net operating loss carryforwards (for which
deferred tax assets shall be recognized)" described above X effective tax
rate
(Reference) Assumptions for Business Plan
---------------------------------------------------------------------------------------
FY 2003 FY2008
2/nd/ half 2004 2005 2006 2007 1/st/ half
---------------------------------------------------------------------------------------
S/T interest rate (3 m/s TIBOR) 0.1% 0.1% 0.6% 0.9% 0.8% 0.6%
---------------------------------------------------------------------------------------
L/T interest rate (10 year JGB) 1.4% 1.3% 2.0% 2.5% 2.2% 2.1%
---------------------------------------------------------------------------------------
Exchange rate (USD/Yen) (Y)120 (Y)120 (Y)120 (Y)120 (Y)120 (Y)120
---------------------------------------------------------------------------------------
75
Mitsubishi Tokoyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
14. Employees' Retirement Benefits
Benefit obligation
[Non-Consolidated] (in millions of yen)
======================================================================================
As of
September 30,
2003
======================================================================================
Projected benefits obligation at beginning of the period (A-B+C+D+G+J) 283,858
-----------------------------------------------------------------------------------
Fair value of plan assets at beginning of the period (A) 172,589
-----------------------------------------------------------------------------------
Prepaid pension cost at beginning of the period (B) 28,939
-----------------------------------------------------------------------------------
Reserve for employees' retirement benefits at
beginning of the period (C) 8,250
-----------------------------------------------------------------------------------
Unrecognized net obligation by the change of (D) 10,282
accounting policy at beginning of the period
--------------------------------------------------------------------------------
Amortization for the current period (Amortized
period mainly 5 years) (E) 2,570
--------------------------------------------------------------------------------
Unrecognized net obligation at end of the
interim period (F) 7,711
-----------------------------------------------------------------------------------
Unrecognized prior service cost at beginning of the
period (G) (3,895)
--------------------------------------------------------------------------------
Amortization for the current period (Amortized
period mainly 12 years) (H) (175)
--------------------------------------------------------------------------------
Unrecognized prior service cost at end of the
interim period (I) (3,720)
-----------------------------------------------------------------------------------
Unrecognized net actuarial (gain) loss at beginning
of the period (J) 125,571
--------------------------------------------------------------------------------
Amortization for the current period (Amortized
period mainly 12 years) (K) 5,942
--------------------------------------------------------------------------------
Unrecognized net actuarial (gain) loss at end
of the interim period (L) 119,628
======================================================================================
Net amount unrecognized at beginning of the period (M) (D+G+J) 131,957
--------------------------------------------------------------------------------------
Net amount amortized during the period (N) (E+H+K) 8,337
--------------------------------------------------------------------------------------
Net amount unrecognized at end of the period (O) (M-N) 123,620
======================================================================================
Notes: 1. Discount rate is 1.9%.
2. The amounts of unrecognized prior service cost and unrecognized net
actuarial loss recognized during the interim period are included in at
beginning of the peroid.
76
Mitsubishi Tokoyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
15. Earning Projections for the Fiscal Year Ending March 31, 2004
[Consolidated] (in billions of yen)
-------------------------------------------------------------------
For the year For the six
ending months ended
March 31, September 30,
2004 2003
-------------------------------------------------------------------
Ordinary income 530.0 287.3
-------------------------------------------------------------------
Ordinary profit 115.0 79.1
-------------------------------------------------------------------
Net income 85.0 63.9
-------------------------------------------------------------------
[Non-Consolidated] (in billions of yen)
-------------------------------------------------------------------
For the year For the six
ending months ended
March 31, September 30,
2004 2003
-------------------------------------------------------------------
Ordinary income 500.0 270.6
-------------------------------------------------------------------
Net business profits before credit
costs for trust accounts and provision
for formula allowance for loan losses 180.0 101.3
-------------------------------------------------------------------
Ordinary profit 110.0 74.7
-------------------------------------------------------------------
Net income 80.0 60.9
-------------------------------------------------------------------
77
MTFG
-----------------------------------------------------
Interim Financial Highlights for the Fiscal Year 2003
-----------------------------------------------------
November 25, 2003
Mitsubishi Tokyo Financial Group, Inc.
Interim Financial Highlights under Japanese GAAP
for the Fiscal Year Ending March 31, 2004
1. Highlights of Consolidated Statements of Operations
------------------------------------------------------
(in billions of yen)
----------------------------------------------------------------------------------------
Six months Six months
ended ended
September 30, September 30,
2002 (A) 2003 (B) (B) - (A)
----------------------------------------------------------------------------------------
1 Gross profits 846.0 898.9 52.8
----------------------------------------------------------------------------------
2 Mitsubishi Securities Co., Ltd. 13.1 60.6 47.5
-------------------------------------------------------------------------------------
3 Net interest income 522.2 533.1 10.9
-------------------------------------------------------------------------------------
4 Trust fees 47.9 36.4 (11.5)
----------------------------------------------------------------------------------
5 Credit costs for trust accounts (4.7) (8.4) (3.6)
-------------------------------------------------------------------------------------
6 Net fees and commissions 168.2 195.8 27.5
-------------------------------------------------------------------------------------
7 Net trading profits 43.7 72.0 28.3
-------------------------------------------------------------------------------------
8 Net other business income 63.9 61.5 (2.4)
----------------------------------------------------------------------------------
9 Net gains on debt securities 18.0 (2.7) (20.7)
----------------------------------------------------------------------------------------
10 General and administrative expenses 482.4 489.5 7.0
-------------------------------------------------------------------------------------
11 Mitsubishi Securities Co., Ltd. 23.9 43.6 19.7
----------------------------------------------------------------------------------------
12 Net business profits before credit costs for
trust accounts and provision for formula
allowance for loan losses 368.3 417.8 49.5
----------------------------------------------------------------------------------------
13 Provision for formula allowance for loan
losses (74.0) [119.0] [193.1]
----------------------------------------------------------------------------------------
14 Net business profits 289.4 409.3 119.9
----------------------------------------------------------------------------------------
15 Net non-recurring gains (losses) (482.7) (135.9) 346.8
-------------------------------------------------------------------------------------
16 Credit related costs (146.8) (91.8) 54.9
----------------------------------------------------------------------------------
17 Losses on loan charge-offs (98.7) (49.8) 48.9
----------------------------------------------------------------------------------
18 Provision for specific allowance for
loan losses 3.8 [40.3] [36.4]
----------------------------------------------------------------------------------
19 Provision for allowance for loans to
specific foreign borrowers 12.7 [4.1] [(8.5)]
----------------------------------------------------------------------------------
20 Losses on sales of loans to the
Resolution and Collection Corporation (44.2) (13.8) 30.3
----------------------------------------------------------------------------------
21 Other credit related costs (20.4) (28.1) (7.7)
-------------------------------------------------------------------------------------
22 Net gains (losses) on equity securities (242.9) (9.0) 233.8
-------------------------------------------------------------------------------------
23 Gains on sales of equity securities 56.9 48.0 (8.9)
-------------------------------------------------------------------------------------
24 Losses on sales of equity securities (98.1) (53.4) 44.7
-------------------------------------------------------------------------------------
25 Losses on write down of equity securities (201.7) (3.6) 198.0
-------------------------------------------------------------------------------------
26 Other (93.0) (34.9) 58.0
----------------------------------------------------------------------------------
27 Foreign exchange loss on convertible
bonds (43.6) -- 43.6
----------------------------------------------------------------------------------------
28 Ordinary profit (loss) (193.3) 273.4 466.7
----------------------------------------------------------------------------------------
29 Net special gains 12.8 234.9 222.0
-------------------------------------------------------------------------------------
30 Reversal of allowance for loan losses -- 163.5 163.5
-------------------------------------------------------------------------------------
31 Refund of enterprise taxes by the Tokyo
Metropolitan Government -- 41.9 41.9
-------------------------------------------------------------------------------------
32 Gains on transfer of the substitutional
portion of future pension obligations -- 26.5 26.5
-------------------------------------------------------------------------------------
33 Gains on loans charged-off 24.6 15.3 (9.3)
----------------------------------------------------------------------------------------
34 Income (Loss) before income taxes and others (180.4) 508.3 688.7
----------------------------------------------------------------------------------------
35 Income taxes-current 31.9 25.5 (6.4)
----------------------------------------------------------------------------------------
36 Income taxes-deferred (27.0) 159.5 186.5
----------------------------------------------------------------------------------------
37 Minority interest 2.7 21.4 18.6
----------------------------------------------------------------------------------------
38 Net income (loss) (188.0) 301.8 489.9
----------------------------------------------------------------------------------------
39 Total credit costs (5+13+16+30) (225.6) 63.2 288.8
----------------------------------------------------------------------------------------
40 Total credit costs + gains on loans
charged-off (5+13+16+30+33) (200.9) 78.5 279.5
----------------------------------------------------------------------------------------
Operating Results of Significant Subsidiaries for the Six Months Ended September
30, 2003
---------------------------------------------------------------------------------------
Net business
General and profits
administrative before credit
Gross profits expenses costs Net income
---------------------------------------------------------------------------------------
41 The Bank of Tokyo-Mitsubishi,
Ltd. 467.4 232.3 235.0 229.7
---------------------------------------------------------------------------------------
42 Mitsubishi Trust and Banking
Corporation 170.1 77.3 101.3 60.9
---------------------------------------------------------------------------------------
43 UnionBanCal Corporation 133.2 79.7 53.5 33.5
---------------------------------------------------------------------------------------
-1-
2. Highlights of Consolidated Balance Sheets
--------------------------------------------
(in billions of yen except percentages)
-------------------------------------------------------------------------------------------------
As of As of
March 31, September 30,
2003 (A) 2003 (B) (B) - (A)
-------------------------------------------------------------------------------------------------
1 Loans and bills discounted 46,950.3 46,420.7 (529.6)
----------------------------------------------------------------------------------------------
2 Domestic loans 29,939.4 29,909.1 (30.3)
----------------------------------------------------------------------------------------------
3 Overseas branches 5,570.4 4,822.0 (748.4)
----------------------------------------------------------------------------------------------
4 Overseas subsidiaries (UnionBanCal Corporation
and Bank of Tokyo-Mitsubishi Trust Company) 3,442.2 3,301.6 (140.6)
----------------------------------------------------------------------------------------------
5 Domestic housing loans 6,941.1 7,514.4 573.2
----------------------------------------------------------------------------------------------
6 Domestic other consumer loans 535.5 492.5 (43.0)
----------------------------------------------------------------------------------------------
7 Book value of loans sold during the six months
ended September 30, 2002 and 2003
(total of the two Banks*) (223.6) (77.2) 146.4
-------------------------------------------------------------------------------------------
8 Sold to the Resolution and Collection
Corporation ("RCC") (134.8) (38.2) 96.6
-------------------------------------------------------------------------------------------
9 [Sold to the RCC before charge-offs] [(317.4)] [(63.3)] [254.0]
-------------------------------------------------------------------------------------------
10 Other loans sold (88.8) (39.0) 49.8
-------------------------------------------------------------------------------------------
11 Charge-offs during the six months ended
September 30, 2002 and 2003
(total of the two Banks*) (120.1) (39.1) 81.0
-------------------------------------------------------------------------------------------------
12 Investment securities 24,158.3 22,265.6 (1,892.6)
----------------------------------------------------------------------------------------------
13 Domestic equity securities 3,229.6 3,469.1 239.5
----------------------------------------------------------------------------------------------
14 Japanese Government Bonds
(total of the two Banks *) 10,591.7 9,315.2 (1,276.5)
----------------------------------------------------------------------------------------------
15 Foreign bonds (total of the two Banks *) 6,657.5 5,574.3 (1,083.1)
----------------------------------------------------------------------------------------------
16 Book value of investment securities sold during
the six months ended September 30, 2002 and 2003
(total of the two Banks*) (568.0) (493.8) 74.1
-------------------------------------------------------------------------------------------
17 Transferred to an exchange-traded fund (366.1) (81.5) 284.5
-------------------------------------------------------------------------------------------
18 Sold in the market or by other means (201.9) (412.2) (210.3)
-------------------------------------------------------------------------------------------
19 Write down during the six months ended
September 30, 2002 and 2003
(total of the two Banks*) (203.3) (6.7) 196.5
-------------------------------------------------------------------------------------------------
20 Deposits 62,624.3 65,186.6 2,562.2
----------------------------------------------------------------------------------------------
21 Total of the two Banks * 58,970.7 60,909.3 1,938.6
----------------------------------------------------------------------------------------------
22 Overseas branches 5,943.5 6,538.0 594.5
----------------------------------------------------------------------------------------------
23 Individuals 32,164.4 32,966.6 802.1
----------------------------------------------------------------------------------------------
24 Corporations and others 19,903.8 20,910.8 1,007.0
-------------------------------------------------------------------------------------------------
25 Total shareholders' equity 3,046.4 3,742.2 695.7
----------------------------------------------------------------------------------------------
26 Capital stock 1,258.0 1,258.0 --
----------------------------------------------------------------------------------------------
27 Capital surplus 932.0 931.3 (0.7)
----------------------------------------------------------------------------------------------
28 Retained earnings 962.3 1,244.1 281.8
----------------------------------------------------------------------------------------------
29 Unrealized gains (losses) on securities
available for sale (223.4) 186.2 409.7
----------------------------------------------------------------------------------------------
30 Less treasury stock (4.4) (3.3) 1.1
-------------------------------------------------------------------------------------------------
31 BIS risk-adjusted capital ratio 10.84% 12.44% 1.60%
----------------------------------------------------------------------------------------------
32 Tier I ratio 5.68% 6.75% 1.07%
-------------------------------------------------------------------------------------------------
33 Tier I capital 3,128.6 3,683.7 555.0
-------------------------------------------------------------------------------------------------
34 Risk-adjusted assets 55,049.6 54,543.3 (506.2)
-------------------------------------------------------------------------------------------------
[Valuation gains (losses) on securities available for sale]
(in billions of yen)
-------------------------------------------------------------------------------------------------
As of As of
March 31, September 30,
2003 (A) 2003 (B) (B) - (A)
-------------------------------------------------------------------------------------------------
35 Total securities available for sale (242.6) 314.5 557.2
----------------------------------------------------------------------------------------------
36 Domestic equity securities (427.2) 254.0 681.2
----------------------------------------------------------------------------------------------
37 Domestic bonds 121.8 (34.5) (156.4)
----------------------------------------------------------------------------------------------
38 Foreign bonds 147.0 90.5 (56.4)
-------------------------------------------------------------------------------------------------
* "Total of the two Banks" represents the aggregated non-consolidated figures of
The Bank of Tokyo-Mitsubishi, Ltd. and The Mitsubishi Trust and Banking
Corporation.
-2-
3.Disclosed Claims under the Financial Reconstruction Law("FRL")
----------------------------------------------------------------
(1) Status of Disclosed Claim under the FRL [prompt report]
[CHART APPEARS HERE]
(in billions of yen)
--------------------------------------------------------------------------------------------------------------------
Increase/
As of As of As of As of (Decrease)
March 31, September 30, March 31, September 30, -------------
2002(A) 2002(B) 2003(C) 2003(D) (D)-(C)
--------------------------------------------------------------------------------------------------------------------
1 Claims to bankrupt and substantially
bankrupt debtors 419.0 402.1 226.4 182.3 (44.1)
--------------------------------------------------------------------------------------------------------------------
2 Claims under high risk 1,933.5 1,386.6 1,031.3 745.7 (285.6)
--------------------------------------------------------------------------------------------------------------------
3 Claims under close observation 1,916.8 1,886.2 1,357.4 929.2 (428.2)
--------------------------------------------------------------------------------------------------------------------
4 Total Disclosed Claims (A) 4,269.4 3,675.0 2,615.2 1,857.2 (757.9)
====================================================================================================================
5 Total Credit Exposure (B) 52,401.4 49,906.9 48,951.2 48,282.0 (669.2)
--------------------------------------------------------------------------------------------------------------------
6 Disclosed Claims Ratio (A/B) 8.14% 7.36% 5.34% 3.84% (1.50%)
--------------------------------------------------------------------------------------------------------------------
-3-
(2) Status of Non Performing Assets [prompt report]
a.Six months results ended September 30,2003 (in billions of yen)
--------------------------------------------------------------------------------------------------------------------
Net
As of As of increase
March 31, Inflows Outflows September 30, -------------
2003 (A) (B) (C) 2003 A+B-C (B-C)
--------------------------------------------------------------------------------------------------------------------
1 Claims to bankrupt and
substantially bankrupt debtors 226.4 14.4 (58.5) 182.3 (44.1)
--------------------------------------------------------------------------------------------------------------------
2 Claims under high risk 1,031.3 150.7 (436.3) 745.7 (285.6)
--------------------------------------------------------------------------------------------------------------------
3 Total 1,257.8 165.1 (494.9) 928.0 (329.7)
--------------------------------------------------------------------------------------------------------------------
b.Six months results ended March 31,2003 (in billions of yen)
--------------------------------------------------------------------------------------------------------------------
Net
As of As of increase
September 30, Inflows Outflows March 31, -------------
2002 (A) (B) (C) 2003 A+B-C (B-C)
--------------------------------------------------------------------------------------------------------------------
4 Claims to bankrupt and
substantially bankrupt debtors 402.1 52.1 (227.8) 226.4 (175.6)
--------------------------------------------------------------------------------------------------------------------
5 Claims under high risk 1,386.6 567.4 (922.7) 1,031.3 (355.2)
--------------------------------------------------------------------------------------------------------------------
6 Total 1,788.7 619.6 (1,150.5) 1,257.8 (530.9)
--------------------------------------------------------------------------------------------------------------------
c.Six months results ended September 30,2002 (in billions of yen)
--------------------------------------------------------------------------------------------------------------------
Net
As of As of increase
March 31, Inflows Outflows September 30, -------------
2002 (A) (B) (C) 2002 A+B-C (B-C)
--------------------------------------------------------------------------------------------------------------------
7 Claims to bankrupt and
substantially bankrupt debtors 419.0 28.9 (45.9) 402.1 (16.9)
--------------------------------------------------------------------------------------------------------------------
8 Claims under high risk 1,933.5 369.4 (916.3) 1,386.6 (546.9)
--------------------------------------------------------------------------------------------------------------------
9 Total 2,352.6 398.4 (962.3) 1,788.7 (563.8)
--------------------------------------------------------------------------------------------------------------------
(3) Status of Secured Coverage on Disclosed Claims under the FRL [prompt report] (in billions of yen)
-----------------------------------------------------------------------------------------------------------------------------
Coverage
Collateral, Coverage Ratio (as of
Disclosed Guarantees, Unsecured Reserves Ratio March 31,
amount etc (A) (B) (B/A) 2003)
-----------------------------------------------------------------------------------------------------------------------------
10 Claims to bankrupt and 182.3 170.2 12.0 12.0 100.00% 100.00%
substantially bankrupt debtors
-----------------------------------------------------------------------------------------------------------------------------
11 Claims under high risk 745.7 360.9 384.7 278.9 72.51% 68.52%
-----------------------------------------------------------------------------------------------------------------------------
12 Claims under close observation 929.2 400.6 528.5 170.8 32.32% 36.31%
-----------------------------------------------------------------------------------------------------------------------------
13 Total 1,857.2 931.9 925.3 461.9 49.91% 51.07%
-----------------------------------------------------------------------------------------------------------------------------
14 (Change from March 31,2003) (757.9) (366.9) (390.9) (210.4) (1.16%) --
-----------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
15 Normal claims 46,424.7 -- -- -- --
---------------------------------------------------------------------------------------------------------------
(4) Status of Secured Coverage on Self-Assessment of Assets [prompt report]
------------------------------------------------------------------------------------------------------------------------------
As of As of As of As of
March 31, September 30, March 31, September 30, ----------
2002 (A) 2002 (B) 2003 (C) 2003 (D) (D)-(C)
------------------------------------------------------------------------------------------------------------------------------
16 Normal 0.18% 0.19% 0.17% 0.17% 0.00%
------------------------------------------------------------------------------------------------------------------------------
17 Close Watch 8.11% 8.75% 9.30% 8.74% (0.55%)
---------------------------------------------------------------------------------------------------------------------------
18 Close Watch 3.97% 3.57% 3.31% 4.00% 0.69%
---------------------------------------------------------------------------------------------------------------------------
19 Borrowers with Credit under Close Observation 14.39% 17.44% 21.16% 20.23% (0.93%)
------------------------------------------------------------------------------------------------------------------------------
20 Likely to become Bankrupt (excluding secured assets) 67.54% 66.51% 67.44% 72.42% 4.98%
------------------------------------------------------------------------------------------------------------------------------
Note:Above figures exclude certain mortgage and consumer loans.
-4-
4. Status of Deferred Tax Assets
--------------------------------
(1) Tax Effects of the Items Comprising Net Deferred Tax Assets
(Total of the two banks) (in billions of yen)
--------------------------------------------------------------------
Sept. 30, 2003
-------------
vs. Mar. 31,
2003
--------------------------------------------------------------------
1 Deferred Tax Assets 1,204.4 (186.7)
-----------------------------------------------------------------
2 Allowance for loan losses 422.1 (110.0)
-----------------------------------------------------------------
3 Write down of investment
securities 84.8 (4.9)
-----------------------------------------------------------------
4 Net operating loss carryforwards 728.5 (39.3)
-----------------------------------------------------------------
5 Reserve for employees'
retirement benefits 31.5 (6.0)
-----------------------------------------------------------------
6 Unrealized losses on securities -- (113.4)
available for sale
-----------------------------------------------------------------
7 Other 45.8 (5.8)
-----------------------------------------------------------------
8 Valuation allowance (108.4) 93.0
--------------------------------------------------------------------
9 Deferred tax liabilities 146.5 128.2
-----------------------------------------------------------------
10 Gains on placing trust 7.2 (1.3)
for retirement benefits
-----------------------------------------------------------------
11 Unrealized gains on securities 118.2 118.2
available for sale
-----------------------------------------------------------------
12 Other 20.9 11.3
--------------------------------------------------------------------
13 Net Deferred Tax Assets 1,057.9 (314.9)
--------------------------------------------------------------------
(Consolidated)
--------------------------------------------------------------------
14 Net Deferred Tax Assets 989.5 (312.3)
--------------------------------------------------------------------
(2) Balance of Net Deferred Tax Assets and % of Tier I Capital
[CHART APPEARS HERE]
(3) Net Business Profits before Credit Costs and Taxable Income (Current Interim
Fiscal Year)
(Total of the two banks) (in billions of yen)
----------------------------------------------------
Interim FY
2003
----------------------------------------------------
15 Net business profits
before credit costs 336.3
----------------------------------------------------
16 Credit related costs (92.8)
----------------------------------------------------
17 Income before income taxes 456.5
----------------------------------------------------
18 Reconciliation to taxable income (358.7)
----------------------------------------------------
19 Taxable income 97.9
----------------------------------------------------
(4) Net Business Profits before Credit Costs and Taxable Income (Past Five
Fiscal Years)
(Total of the two banks) (in billions of yen)
--------------------------------------------------------------------------------------------------------------------
FY 1998 FY 1999 FY 2000 FY 2001 FY 2002
--------------------------------------------------------------------------------------------------------------------
20 Net business profits
before credit costs 888.0 578.6 552.0 619.5 689.9
--------------------------------------------------------------------------------------------------------------------
21 Credit related costs 1,393.1 652.4 730.5 666.3 485.9
--------------------------------------------------------------------------------------------------------------------
22 Income before income taxes (124.7) 409.4 (199.0) (359.3) (485.2)
--------------------------------------------------------------------------------------------------------------------
23 Reconciliation to taxable income 421.0 (76.3) 304.4 142.0 (1,021.4)
--------------------------------------------------------------------------------------------------------------------
24 Taxable income 296.2 333.1 105.3 (217.2) (1,506.7)
--------------------------------------------------------------------------------------------------------------------
(5) Comparison with Past Fiscal Years
[CHART APPEARS HERE]
-5-
(6) Classification Based on Prior Year Operating Results As Provided in the
JICPA Audit Committee Report No. 66
---------------------------------------------------------------------------------------------------------------
Estimable period of future taxable income
-----------------------------------------------------
Classifi- Estimable No
cation Prior year operating results 1 year 5 years period limitation
---------------------------------------------------------------------------------------------------------------
1 Sufficient taxable income for more than
three consecutive fiscal years xxxxx xxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------------------
2 Stable but insufficient taxable income for
three consecutive fiscal years xxxxx xxxxx xxxxx
---------------------------------------------------------------------------------------------------------------
3 Precarious and insufficient operating
results due to volatile profit xxxxx xxxxx
---------------------------------------------------------------------------------------------------------------
4 Material net operating loss carryforwards xxxxx
------------------------------------------------------------------------------------------------------------
Excep- Net operating loss carryforwards are
tion attributable to extraordinary factors xxxxx xxxxx
------------------------------------------------------------------------------------------------------------
5 Tax loss for three consecutive fiscal years
and tax loss for the current fiscal year is Cannot estimate future taxable income
expected
---------------------------------------------------------------------------------------------------------------
Although we recorded taxable income for the six months ended September 30,
2003, we are classified as "4" described above since we have material net
operating loss carryforwards. However, since we believe the net operating loss
carryforwards are attributable to extraordinary factors such as changes in laws
and regulations, we apply the exception to classification 4. (Five years' future
taxable income is estimable.)
(7) Extraordinary Factors Such as Changes in Laws and Regulations
Our net operating loss carryforwards were incurred due to, among other
things, the following: (i) we accelerated the final disposal of nonperforming
loans in response to both the "Emerging Economic Package," which provided
guidance to major banks to remove from their balance sheets claims to debtors
classified as "likely to become bankrupt" or below, and the "Program for
Financial Revival," which urged major banks to reduce the ratio of disclosed
claims to total claims by about half; and (ii) we reduced our holdings of
strategic equity investments under the "Law Concerning Restriction, etc. of
Banks' Shareholdings etc."
(8) Realizability of Deferred Tax Assets at September 30, 2003 (Assumptions)
(in billions of yen)
----------------------------------------------------------------------------
Five year
total
(2003 2nd/
half to 2008
1st/ half)
----------------------------------------------------------------------------
1 Net business profits (based on our business plan) (*1) 4,560.0
----------------------------------------------------------------------------
2 Net business profits (basis of realizability 4,050.0
determination) (*2)
----------------------------------------------------------------------------
3 Income before income taxes (basis of realizability 2,550.0
determination)
----------------------------------------------------------------------------
4 Taxable income before adjustments (basis of 3,440.0
realizability determination) (*3)
----------------------------------------------------------------------------
5 Temporary difference + net operating loss carryforwards 3,070.0
(for which deferred tax assets shall be recognized)
----------------------------------------------------------------------------
6 Deferred tax assets at September 30, 2003 (*4) 1,207.0
----------------------------------------------------------------------------
[CHART APPEARS HERE]
(*1) Total of the two banks, before credit costs
(*2) Based on the scenario that current short-term interest rate level continues
for the next five years
(*3) Before reversals of existing deductible temporary differences and net
operating loss carryforwards
(*4) "5" describes above X effective tax rate (consolidated corporate-tax basis)
(Reference) Assumptions for Business Plan
-------------------------------------------------------------------------------------------------------------
FY 2003 FY 2008
2nd/ half FY 2004 FY 2005 FY 2006 FY 2007 1st/ half
-------------------------------------------------------------------------------------------------------------
S/T interest rate (3 m/s TIBOR) 0.1% 0.1% 0.6% 0.9% 0.8% 0.6%
-------------------------------------------------------------------------------------------------------------
L/T interest rate (10 year JGB) 1.4% 1.3% 2.0% 2.5% 2.2% 2.1%
-------------------------------------------------------------------------------------------------------------
Exchange rate (USD/Yen) (Yen)120 (Yen)120 (Yen)120 (Yen)120 (Yen)120 (Yen)120
-------------------------------------------------------------------------------------------------------------
-6-
5. Earning Projections for the Fiscal Year Ending March 31, 2004
----------------------------------------------------------------
[Non-consolidated] (in billions of yen)
--------------------------------------------------------------------------------
For the fiscal year For the fiscal year
ended March ending
31, 2003 (Actual) March 31, 2004
--------------------------------------------------------------------------------
1 Operating income 27.2 69.0
--------------------------------------------------------------------------------
2 Ordinary profit 22.4 64.0
--------------------------------------------------------------------------------
3 Net income 23.3 64.0
--------------------------------------------------------------------------------
[Cash dividends] (in yen per share)
--------------------------------------------------------------------------------
Annual dividends
per share for the Annual dividends
fiscal year ended per share for the
March 31, 2003 fiscal year ending
(Actual) March 31, 2004
--------------------------------------------------------------------------------
4 Common stock 4,000 4,000
--------------------------------------------------------------------------------
[Consolidated] (in billions of yen)
--------------------------------------------------------------------------------
For the fiscal year For the fiscal year
ended March ending March
31, 2003 (Actual) 31, 2004
--------------------------------------------------------------------------------
5 Ordinary income 2,772.5 2,700.0
--------------------------------------------------------------------------------
6 Ordinary profit (loss) (360.2) 530.0
--------------------------------------------------------------------------------
7 Net income (loss) (161.4) 425.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
These materials contain forward-looking statements and other forward-looking
information relating to the company (the "forward-looking statements"). The
forward-looking statements are not historical facts and include, reflect or are
otherwise based upon, among other things, the company's current estimations,
projections, views, policies, business strategies, targets, expectations,
assumptions and evaluation with respect to general economic conditions, the
results of operations, the financial condition, the company's management in
general and other future events. Accordingly, they are inherently susceptible to
uncertainties, risks and changes in circumstances and are not guarantees of
future performance. Some forward-looking statements represent targets that the
company's management will strive to achieve through the successful
implementation of the company's business strategies. The company may not be
successful in implementing its business strategy, and actual results may differ
materially, for a wide range of possible reasons. Other forward-looking
statements reflect the assumptions and estimations upon which the calculation of
deferred tax assets has been based and are themselves subject to the full range
of uncertainties, risks and changes in circumstances outlined above. In light of
the many risks, uncertainties and possible changes, you are advised not to put
undue reliance on the forward-looking statements. The company is under no
obligation - and expressly disclaims any obligation - to update or alter the
forward-looking statements, except as may be required by any applicable laws and
regulations or stock exchange rules. For detailed information relating to
uncertainties, risks and changes regarding the forward-looking statements,
please see the company's latest annual report and other disclosures.
--------------------------------------------------------------------------------
-7-