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, 2004
MITSUBISHI TOKYO FINANCIAL GROUP, INC.
(Translation of registrants 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 24, 2004
MITSUBISHI TOKYO FINANCIAL GROUP, INC. | ||
By: | /S/ Ryutaro Kusama | |
Name: | Ryutaro Kusama | |
Title: | Chief Manager, General Affairs Corporate Administration Division |
Interim Consolidated Summary Report
<under Japanese GAAP>
for the Fiscal Year Ending March 31, 2005
Date: | November 24, 2004 | |
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: | Nobuo Kuroyanagi, President & CEO | |
For inquiry: | Katsuhiko Ishizuka, Chief ManagerFinancial Policy Division | |
(Phone) +81-3-3240-8211 | ||
Date of resolution of Board of Directors with respect to the interim consolidated financial statements: |
November 24, 2004 | |
Trading accounts: | Established |
1. Consolidated financial data for the six months ended September 30, 2004
(1) Operating results
(in millions of yen except per share data and percentages) | ||||||||
For the six months ended September 30, |
For the year ended March 31, 2004 | |||||||
2004 |
2003 |
|||||||
Ordinary income |
1,258,164 | 1,360,929 | 2,555,183 | |||||
Change from the previous year |
(7.6 | )% | (4.5 | )% | ||||
Ordinary profit |
310,306 | 273,432 | 578,371 | |||||
Change from the previous year |
13.5 | % | | |||||
Net income |
171,678 | 301,877 | 560,815 | |||||
Change from the previous year |
(43.1 | )% | | |||||
Net income per common share |
25,924.96 | 47,619.95 | 87,156.63 | |||||
Net income per common and common equivalent share |
| 45,810.42 | 85,017.34 |
Notes:
1. | Equity in earnings of affiliates: |
For the six months ended September 30, 2004: |
7,573 | million yen | ||
For the six months ended September 30, 2003: |
1,232 | million yen | ||
For the year ended March 31, 2004: |
3,595 | million yen |
2. | Average number of shares outstanding: |
For the six months ended September 30, 2004: |
||||
(common stock) |
6,492,611 | shares | ||
(preferred stockclass 1) |
81,022 | shares | ||
(preferred stockclass 2) |
8,196 | shares | ||
For the six months ended September 30, 2003: |
||||
(common stock) |
6,259,246 | shares | ||
(preferred stockclass 1) |
81,022 | shares | ||
(preferred stockclass 2) |
89,614 | shares | ||
For the year ended March 31, 2004: |
||||
(common stock) |
6,349,929 | shares | ||
(preferred stockclass 1) |
81,022 | shares | ||
(preferred stockclass 2) |
58,039 | shares |
3. Changes in accounting policy: No
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(2) Financial condition
(in millions of yen except per share data and percentages) |
|||||||||
For the six months ended September 30, |
For the year ended March 31, 2004 |
||||||||
2004 |
2003 |
||||||||
Total assets |
113,408,478 | 104,711,005 | 106,615,487 | ||||||
Shareholders equity |
4,306,432 | 3,742,207 | 4,295,243 | ||||||
Shareholders equity as a percentage of total liabilities, minority interest and shareholders equity |
3.8 | % | 3.6 | % | 4.0 | % | |||
Shareholders equity per common share |
623,070.24 | 532,290.28 | 620,797.48 | ||||||
Risk-adjusted capital ratio (based on the standards of the Bank for International Settlements, the BIS) |
(preliminary basis) 10.92 % | 12.44 | % | 12.95 | % |
Note:
Number of shares outstanding as of:
September 30, 2004: |
||||
(common stock) |
6,516,155 | shares | ||
(preferred stockclass 1) |
81,022 | shares | ||
September 30, 2003: |
||||
(common stock) |
6,355,414 | shares | ||
(preferred stockclass 1) |
81,022 | shares | ||
(preferred stockclass 2) |
56,200 | shares | ||
March 31, 2004 |
||||
(common stock) |
6,473,306 | shares | ||
(preferred stockclass 1) |
81,022 | shares | ||
(preferred stockclass 2) |
15,000 | shares |
(3) Cash flows
(in millions of yen) |
||||||||
For the six months ended September 30, |
For the year ended March 31, 2004 |
|||||||
2004 |
2003 |
|||||||
Net cash provided by operating activities |
6,106,171 | 700,148 | 2,999,790 | |||||
Net cash provided by (used in) investing activities |
(5,490,858 | ) | 1,096,071 | (3,893,910 | ) | |||
Net cash provided by (used in) financing activities |
(30,770 | ) | 106,895 | (71,269 | ) | |||
Cash and cash equivalents at end of (interim) fiscal year |
3,625,125 | 5,955,417 | 3,034,525 |
(4) Scope of consolidation and application of the equity method
Consolidated subsidiaries: |
154 | Affiliated companies accounted for by the equity method: |
25 |
(5) Change in the scope of consolidation and application of the equity method
Consolidated subsidiaries: |
Newly included: 6 | Excluded: 4 | ||
Affiliated companies accounted for by the equity method: |
Newly included: 1 | Excluded: 0 |
2. Earning projections for the fiscal year ending March 31, 2005
(in millions of yen) | ||||
Ordinary income |
Ordinary profit |
Net income | ||
2,450,000 | 640,000 | 340,000 |
Projected net income per common share for the year ending March 31, 2005 (yen): 51,405.06
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(Reference)
Formulas for computing ratios for the six months ended September 30, 2004 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, 2005 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 × 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 and/or the group as a whole (the forward-looking statements). The forward-looking statements are not historical facts and include, reflect or are otherwise based upon, among other things, the companys current estimations, projections, views, policies, business strategies, targets, expectations, assumptions and evaluations with respect to general economic conditions, its results of operations, its financial condition, its 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 companys management will strive to achieve through the
successful implementation of the companys 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 companys latest annual report and other disclosures.
- 3 -
1. Information on MTFG
MTFG is engaged primarily in the banking business and also conducts trust business, securities business, asset management business and other related financial businesses.
The following is an illustration of the Companys corporate governance structure and major subsidiaries.
- 4 -
2. Management Policy
(1) | Principal management policy |
MTFGs 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 Companys policy to endeavor to maintain stable dividends while improving the Companys overall strength in order to bolster its financial health and continued sound management.
With respect to interim dividends for the six months ended September 30, 2004, the Company has decided not to pay any dividends on its common stock and to pay ¥41,250 per share of class 1 preferred stock.
With respect to annual dividends for the fiscal year ending March 31, 2005, the Company plans to pay ¥6,000 per share of common stock and ¥41,250 per share of class 1 preferred stock (in addition to the interim dividend, for a total of ¥82,500 per share).
(3) | Basic policy relating to the possible lowering of the minimum investment amount |
With regard to the possible lowering of the minimum investment amount of the Companys common stock, the Company does not believe that it needs to make any actions immediately, after taking into account such factors as the stock price, the number of shareholders, liquidity issues and the transaction costs and potential benefits. The Company, however, will continue to consider, as appropriate, the possibility of lowering the minimum purchase price while taking into account investor needs and the above-described factors.
(4) | Management targets |
On August 12, 2004, the Company and UFJ Group concluded, subject to the approval of the shareholders and the relevant authorities, a basic agreement with regard to the management integration of the holding companies, banks, trust banks and securities companies of the two groups. The new group aims to become one of the top five global financial institutions in terms of market value by the end of fiscal year 2008.
(5) | Medium term management strategy |
MTFG has drawn up a new 3-year plan, the First Medium-Term Strategic Plan and Medium-Term Business Plan (2004) starting from fiscal 2004, and has set an aspiration of becoming one of the worlds top ten financial institutions by market capitalization.
To realize our aspiration, we have positioned our retail, corporate and trust assets (asset management and administration) businesses as our three core businesses. In April 2004 we introduced an integrated business group system encompassing these three businesses to promote unified group management, and we are shifting to a profit structure in which these three businesses form the core.
In our integrated business group system, the holding company formulates strategy for the Group on an integrated basis, which is then executed by Group banks. Through a customer-first approach, MTFG aims to fulfill the latent needs of its customers through delivering high-quality, comprehensive financial services. Through speedy and unified decision-making, reorganization of our Groups business portfolio, a more dynamic reallocation of Groups operational resources and unified risk management, we aim to enhance our corporate value.
In July 2004, to aggressively promote the strategy described above and create a premier comprehensive global financial group, MTFG commenced discussions regarding a proposed management integration with UFJ Group. In August 2004, the two groups concluded a basic agreement with regard to the management integration of the two groups. Subsequently, in September 2004, we formulated our basic integration strategy and we have set a new aspiration of becoming one of the top five global financial institutions by market capitalization by the end of fiscal 2008. This new aspiration signals a further advance from our earlier aspiration of joining the global top ten. In addition MTFG cooperated in the strengthening of UFJ Banks capital to further its aim of management integration with UFJ Group.
- 5 -
The new group will be the first comprehensive, integrated financial group in Japan comprising commercial banks, trust banks and securities companies, as well as top-class credit card companies, consumer finance companies, investment trust companies, lease companies and foreign banks (including Union Bank of California). We aim to integrate the two groups holding companies, banks, trust banks and securities companies by October 1, 2005, subject to approval by shareholders and the relevant authorities.
In order to fully leverage the strengths of the new group, its operational framework will be based on the framework provided by MTFGs integrated business group system. Each company in the new group, including the banks, trust banks and securities companies, as well as the credit card and other companies, will collaborate to aggressively implement the groups integration strategy in order to offer financial services that meet the true needs of customers in a unified, flexible manner.
(6) | Issues facing the company |
MTFG will rapidly and boldly deal with its key business challenges based on the strategy outlined above.
Specifically:
In our retail business we will strengthen sales and marketing capabilities through a significant increase in sales staff numbers and improvement of the quality of sales staff through training at our new Retail Academy facility. We will also drastically strengthen our consumer finance business through expanding use of our multifunctional IC cards incorporating biometric recognition functions, and through consolidation and reorganization of functions in the consumer finance business with ACOM Co., Ltd, with which we have a business and capital alliance.
In our corporate banking business, from October 2004, we have been strengthening our investment banking capabilities particularly in market-driven business areas. We also aim to expand our business base by extending to our medium- and smaller-sized corporate customers the expertise and product strengths that we have developed through our business with large and listed companies.
In our trust assets business (asset management and administration) we aim to shift to common use of existing infrastructure such as operations and systems and reduce costs rapidly as a unified Group. We also plan to develop the common use within the Group of our asset management platform, thus efficiently strengthening our asset management capabilities.
Our preparations for integration with UFJ Group are progressing smoothly and we intend to move rapidly to leverage the complementary branch networks and customer bases of the two groups in order to maximize integration synergies. We have already eliminated cross-use fees between the ATMs of Bank of Tokyo-Mitsubishi, UFJ Bank, Mitsubishi Trust and Banking and UFJ Trust Bank. We also plan to establish further operational tie-ups between the two groups in various business areas and achieve integration benefits before the formal integration date. Through integration, we will seek to achieve rationalization efficiencies, streamline headquarters functions, increase convenience and efficiency in our branch network, efficiently relocate staff, and integrate operations and systems.
In these ways, throughout MTFG we are actively promoting an integrated Group strategy, while through management integration with the UFJ Group we aim to create a premier global comprehensive financial group and raise corporate value.
(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.
In order to realize the principles of the Group Management Philosophy and MTFG Code of Ethics we are working to strengthen our corporate governance.
- 6 -
<MTFG Code of Ethics>
| Establishment of Trust |
Fully cognizant of the importance of the Groups 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 Groups 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>
i. | Corporate governance structures for decision making, administration and supervision |
The Board of Directors of the Company is comprised of eleven directors, two of whom are outside directors. The Board of Directors decides the administration of the affairs of the Company and supervises the execution of duties of the directors.
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 directors by attending meetings, including meetings of the Board of Directors, and by reviewing the business performance and financial conditions of the Company.
The Corporate Administration Division provides staffing support to all directors and corporate auditors, including the outside directors and outside corporate auditors.
From the perspective of strengthened corporate governance, in order to clearly separate the functions of the oversight of business and the execution of business, an executive officer system has been introduced. The Heads and Deputy Heads of the integrated business groups and heads of the major business lines are executive officers, and the seven managing officers and fourteen executive officers engage in executing business as decided by the Board of Directors. Pursuant to the basic policies adopted by the Board of Directors, the Executive Committee comprised of seven members, the Chairman, President, Deputy President, two Senior Managing Directors, and two directors nominated by the President, deliberates on and decides important management affairs of the Company.
The Company has also set up the Compliance Advisory Committee comprised of external lawyers and accountants and in addition has established the Advisory Board comprised of outside experts, and various committees and the Corporate Policy Meeting that serve as advisory bodies to the Executive Committee.
The main committees are as follows:
| 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. |
| Internal Audit Committee: (Formerly the Audit & Compliance Committee): The Internal Audit Committee deliberates on important matters relating to internal audits of the Group overall. The committee convenes on a quarterly basis. (From October 2004 a separate Compliance Committee has been established that deliberates on matters related to legal compliance of the Group overall) |
- 7 -
| Disclosure Committee: The Disclosure Committee deliberates on the accuracy of disclosure and internal disclosure standards. The committee convenes at least four times a year. |
| Corporate Risk Management Committee: The Corporate Risk Management Committee deliberates on important matters relating to all types of risks across the entire Group. The committee convenes on a quarterly basis. |
| Credit & Investment Committee: The Credit & Investment Committee deliberates on important aspects of credit risk management across the entire Group. The committee convenes semi-annually. |
| Personnel Committee: The Personnel Committee deliberates with respect to personnel measures necessary to the management of the integrated business system. The committee convenes as needed. |
| Asset & Liability Management Committee: The Asset & Liability Management Committee deliberates on important aspects of investment and funding activities across the entire Group. The committee convenes semi-annually. |
| Operations & Systems Integration Committee: The Operations & Systems Integration Committee deliberates on the integration of Group operations and IT systems. The committee convenes semi-annually. |
| Credit Committee: The Credit Committee deliberates on important matters relating to the concentration of credit across the entire Groups portfolio. The committee convenes monthly. |
| Compliance Committee: The Compliance Committee deliberates on matters related to legal compliance of the Group overall. (Formerly the Audit & Compliance Committee deliberated on these matters but its role in this respect has been succeeded by the Compliance Committee as of October 2004). |
| Corporate Policy Meeting: The Corporate Policy Meeting deliberates and exchanges opinions from a broad perspective on fundamental policy with respect to matters of major importance regarding the integrated management and integrated business of the group. The meeting convenes as needed. |
| Compliance Advisory Committee: The Compliance Advisory Committee makes compliance related proposals and provides advice to the Board of Directors from an independent standpoint to improve the effectiveness of the Groups compliance activities. 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 board convenes semi-annually. |
The Companys framework of operation and audit and the framework of internal control are as follows:
The Company receives advice from external lawyers and accountants, if needed for the execution of its duties.
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ii. | 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 with the Company which are material or that are unusual in their nature or conditions.
Ryotaro Kaneko, an outside director, also serves as President of Meiji Yasuda Life Insurance Company, with which the Company has a business relationship. Takuma Otoshi, an outside director, also serves as President of IBM Japan, Ltd., with which the Company has a business relationship.
iii. | Implementation of measures to strengthen the corporate governance structure in the interim period ended September 2004 |
During the first half of fiscal year 2004, the Board of Directors met 16 times to decide the administration of affairs of the Group, and the Executive Committee met 27 times to deliberate on and decide important management affairs.
The Board of Corporate Auditors met 11 times and decided audit policies and plans. Pursuant to the audit policies and plans, each corporate auditor oversaw the execution of duties by the directors by attending key meetings, including meetings of the Board of Directors, and by reviewing the business performance and financial conditions of the Company. The Management Planning Committee and the Audit & Compliance Committee each met twice and the Disclosure Committee met 3 times. The Corporate Risk Management Committee met twice and the Personnel Committee, the Asset & Liability Management Committee and the Operations & Systems Integration Committee each met once. The Credit Committee met three times and the Corporate Policy Meeting met six times. The Compliance Advisory Committee met twice and provided proposals and advice to the Board of Directors. The Advisory Board met twice and provided advice to the Executive Committee.
With respect to the disclosure of corporate information, during the first half of the fiscal year Consolidated Financial Information with respect to the first quarter of fiscal 2004 (April to June) was for the first time provided to shareholders and customers. In addition, a Japanese-language 2004 Disclosure Report and a 2004 Mini-Disclosure Report for individual investors and customers was published and information on MTFG and group companies was regularly disclosed on the respective websites. Similarly, in the English-language, a 2004 Annual Report was published and information on MTFG and group companies was regularly disclosed on the respective websites.
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, 2004, overseas economies moved toward recovery in the early part of the current period, particularly in the United States where the recovery was driven by large-scale tax cuts, and in China where domestic demand continued to expand. In the latter part of the current period, however, a degree of uncertainty returned to overseas economies as a result of the passing of the initial effect of the tax cut in the United States, measures to restrain investment in China and a sharp increase in crude oil prices.
In the Japanese economy, exports and capital expenditures rose due to increased overseas demand in the early part of the current period. Private consumption also steadily increased due to an improvement in consumer confidence. Nevertheless, the Japanese economy began slowing down again in the latter part of the current period. Consumer prices continued to decline.
Regarding the interest rate environment, in the EU, the European Central Banks policy rate remained at 2%. On the other hand, in the United States, the federal funds rate was raised from 1% to 1.75% between June and September. In Japan, the Bank of Japan continued its current easy monetary policy and kept short-term interest rates at near zero percent. On the other hand, the yield on ten-year Japanese government bonds soared temporarily, reflecting bullish views about an expected economic recovery, before declining again.
In the foreign exchange markets, although the yen initially depreciated against the US dollar due to the increases in the federal funds rate, the exchange rate subsequently stabilized and remained within a narrow range.
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Amidst this economic environment, net income for the six months ended September 30, 2004 was ¥171.6 billion, a decrease of ¥130.1 billion from ¥301.8 billion for the six months ended September 30, 2003. This decrease was primarily due to a number of factors. The first factor was a ¥119.6 billion increase in total credit costs, from a ¥63.2 billion reversal of total credit costs for the six months ended September 30, 2003 to ¥56.3 billion in total credit costs for the six months ended September 30, 2004. The second factor was a ¥28.9 billion decrease in net business profits before credit costs for trust accounts and provision for formula allowance for loan losses, from ¥417.8 billion for the six months ended September 30, 2003 to ¥388.9 billion for the six months ended September 30, 2004. The third factor was the absence of two special gains that were recorded in the six months ended September 30, 2003, ¥41.9 billion in refunded enterprise taxes by the Tokyo Metropolitan Government and special gains of ¥26.5 billion resulting from gains on the transfer of the substitutional portion of future pension obligations. As a result, for the six months ended September 30, 2004, ordinary profit was ¥310.3 billion and net income was ¥171.6 billion.
Ordinary profit by business segment was ¥235.7 billion for the banking segment, ¥57.7 billion for the trust banking segment and ¥6.4 billion for the securities segment. Ordinary profit (loss) by geographic segment was ¥221.8 billion in Japan, ¥74.3 billion in North America, ¥9.7 billion in Europe and the Middle East, ¥16.3 billion in Asia and Oceania excluding Japan, and an ordinary loss of ¥4.6 billion in Latin America.
The Company has the following earning projections for the fiscal year ending March 31, 2005.
Consolidated ordinary income |
Consolidated ordinary profit |
Consolidated net income | ||
¥2,450,000 million | ¥640,000 million | ¥340,000 million |
(Reference) |
|||||
1. Projected net income per common share (consolidated) |
¥ | 51,405.06 | |||
2. Projected net income per common share (non-consolidated) |
¥ | 30,838.19 | |||
3. Projected dividend per share (non-consolidated) |
Common stock | ¥ | 6,000 | ||
Preferred stockclass1 | ¥ | 82,500 |
The Companys business and results of operations may be materially affected for a wide range of possible reasons (which may include those material to investors), including:
| Increase of problem loans and credit-related expenses; |
| Risk that the proposed management integration with UFJ Group may be delayed, materially altered or abandoned and possible difficulties the Company may face in integrating operations of the UFJ Group; |
| Possible negative effects to our equity portfolio; |
| Risks relating to trading and investment activities; |
| Changes in interest rates in Japan or elsewhere in the world; |
| Inability to maintain BIS capital ratios above minimum levels; |
| Downgrade of the Companys credit ratings and the negative effect on the Companys treasury operations; |
| Ineffectiveness or failure of the Companys business strategies; |
| Risks accompanying the expansion of the Companys operation and the range of products and services; |
| Decline in the results of operations and financial conditions of the Companys subsidiaries; |
| Deterioration of economic conditions in Japan or elsewhere in the world (especially in Asian and Latin American countries); |
| Fluctuations in foreign currency exchange rates; |
| Risks relating to the increase of the Companys pension obligations; |
| Events that obligate the Company to compensate for losses in loan trusts and jointly operated designated money in trusts; |
| Disruption or impairment of the Companys business or operations due to external circumstances or events (such as the destruction or impairment of the Companys business sites and terrorist attacks); |
| Risks relating to the Companys capabilities to protect confidential information; |
| Risks relating to regulatory developments or changes in laws, rules, including accounting rules, governmental policies and economic controls; |
| Increase in competitive pressures; |
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| Risks inherent in the Companys holding company structure; and |
| Possible negative effects related to owning our shares. |
For a detailed discussion of these risks and other risks, uncertainties, possible changes and others, please see the Companys most recent public filings.
(2) Financial condition
Loans and bills discounted increased by ¥830.8 billion from ¥46,590.1 billion at March 31, 2004 to ¥47,420.9 billion at September 30, 2004. This change consisted mainly of an increase of ¥246.8 billion in domestic loans, an increase of ¥223.0 billion in loans made by overseas subsidiaries (UnionBanCal Corporation and Bank of Tokyo-Mitsubishi Trust Company) and an increase of ¥238.9 billion in domestic housing loans.
Investment securities increased by ¥5,360.8 billion, from ¥28,329.5 billion at March 31, 2003 to ¥33,690.3 billion at September 30, 2004.
Total shareholders equity increased by ¥11.1 billion, from ¥4,295.2 billion at March 31, 2003 to ¥4,306.4 billion at September 30, 2004.
For the six months ended September 30, 2004, net cash provided by operating activities was ¥6,106.1 billion, net cash used in investing activities was ¥5,490.8 billion and net cash used in financing activities was ¥30.7 billion. As a result, the balance of cash and cash equivalents at September 30, 2004 was ¥3,625.1 billion.
The Companys consolidated risk adjusted capital ratio (based on applicable regulatory standards) was 10.92% at September 30, 2004.
The following table shows the Companys consolidated risk adjusted capital ratio at September 30, 2003, March 31, 2004 and September 30, 2004.
(in billions, except for percentages) |
||||||||||||
At September 30, 2003 |
At March 31, 2004 |
At September 30, (Preliminary basis) |
||||||||||
Tier I capital |
¥ | 3,683.7 | ¥ | 3,859.4 | ¥ | 4,025.9 | ||||||
Tier II capital |
¥ | 3,127.2 | ¥ | 3,157.8 | ¥ | 2,818.0 | ||||||
Tier III capital |
¥ | 29.9 | ¥ | 30.0 | | |||||||
Deduction from total qualifying capital |
¥ | 51.0 | ¥ | 54.5 | ¥ | 894.3 | ||||||
Total qualifying capital |
¥ | 6,789.7 | ¥ | 6,992.7 | ¥ | 5,949.6 | ||||||
Risk-adjusted assets |
¥ | 54,543.3 | ¥ | 53,996.7 | ¥ | 54,457.1 | ||||||
Consolidated risk-adjusted capital ratio (based on applicable regulatory standards) |
12.44 | % | 12.95 | % | 10.92 | % |
Note) Tier II and Tier III capital represent amounts includable as qualifying capital.
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(Japanese GAAP)
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Balance Sheets
As of September 30, |
(A) (B) |
As of March 31, |
(A) (C) |
||||||||||||
(in millions of yen) | 2004 (A) |
2003 (B) |
2004 (C) |
||||||||||||
Assets: |
|||||||||||||||
Cash and due from banks |
7,641,687 | 9,912,534 | (2,270,847 | ) | 6,511,422 | 1,130,264 | |||||||||
Call loans and bills bought |
343,348 | 937,576 | (594,227 | ) | 893,805 | (550,456 | ) | ||||||||
Receivables under resale agreements |
951,074 | 521,366 | 429,708 | 1,336,995 | (385,921 | ) | |||||||||
Receivables under securities borrowing transactions |
4,637,860 | 5,763,393 | (1,125,532 | ) | 5,572,154 | (934,294 | ) | ||||||||
Commercial paper and other debt purchased |
1,633,157 | 1,167,667 | 465,490 | 1,338,092 | 295,064 | ||||||||||
Trading assets |
7,626,950 | 6,460,498 | 1,166,452 | 6,572,110 | 1,054,840 | ||||||||||
Money held in trust |
451,935 | 470,220 | (18,284 | ) | 469,377 | (17,441 | ) | ||||||||
Investment securities |
33,690,393 | 22,265,644 | 11,424,748 | 28,329,543 | 5,360,849 | ||||||||||
Allowance for losses on investment securities |
(1,262 | ) | (2,937 | ) | 1,675 | (1,948 | ) | 686 | |||||||
Loans and bills discounted |
47,420,986 | 46,420,701 | 1,000,284 | 46,590,131 | 830,854 | ||||||||||
Foreign exchanges |
653,654 | 589,994 | 63,659 | 559,382 | 94,272 | ||||||||||
Other assets |
2,997,373 | 4,394,439 | (1,397,065 | ) | 3,217,991 | (220,617 | ) | ||||||||
Premises and equipment |
863,350 | 942,775 | (79,425 | ) | 889,580 | (26,229 | ) | ||||||||
Deferred tax assets |
719,396 | 1,055,185 | (335,789 | ) | 711,680 | 7,716 | |||||||||
Deferred tax assets on land revaluation loss |
| 1,803 | (1,803 | ) | | | |||||||||
Customers liabilities for acceptances and guarantees |
4,580,375 | 4,853,440 | (273,065 | ) | 4,457,806 | 122,569 | |||||||||
Allowance for loan losses |
(801,804 | ) | (1,043,299 | ) | 241,494 | (832,638 | ) | 30,834 | |||||||
Total assets |
113,408,478 | 104,711,005 | 8,697,473 | 106,615,487 | 6,792,991 | ||||||||||
Liabilities: |
|||||||||||||||
Deposits |
67,082,418 | 65,186,659 | 1,895,759 | 66,097,591 | 984,826 | ||||||||||
Negotiable certificates of deposit |
3,896,695 | 3,729,540 | 167,155 | 2,819,588 | 1,077,106 | ||||||||||
Debentures |
30,752 | 516,603 | (485,851 | ) | 265,056 | (234,304 | ) | ||||||||
Call money and bills sold |
9,083,330 | 4,334,966 | 4,748,363 | 6,879,141 | 2,204,189 | ||||||||||
Payables under repurchase agreements |
5,182,015 | 3,536,865 | 1,645,150 | 3,316,268 | 1,865,747 | ||||||||||
Payables under securities lending transactions |
4,221,383 | 4,558,290 | (336,906 | ) | 3,415,952 | 805,431 | |||||||||
Commercial paper |
632,079 | 717,989 | (85,909 | ) | 637,006 | (4,927 | ) | ||||||||
Trading liabilities |
2,933,887 | 1,634,106 | 1,299,780 | 2,824,399 | 109,487 | ||||||||||
Borrowed money |
1,304,542 | 1,446,930 | (142,388 | ) | 1,342,691 | (38,148 | ) | ||||||||
Foreign exchanges |
1,134,219 | 920,205 | 214,013 | 1,081,271 | 52,948 | ||||||||||
Short-term corporate bonds |
368,900 | 213,500 | 155,400 | 340,200 | 28,700 | ||||||||||
Bonds and notes |
3,818,578 | 3,830,193 | (11,615 | ) | 3,734,610 | 83,967 | |||||||||
Bonds with warrants |
49,165 | 50,528 | (1,363 | ) | 50,000 | (835 | ) | ||||||||
Due to trust account |
1,367,460 | 1,336,541 | 30,919 | 1,380,268 | (12,808 | ) | |||||||||
Other liabilities |
2,794,984 | 3,517,798 | (722,813 | ) | 3,079,852 | (284,867 | ) | ||||||||
Reserve for employees bonuses |
19,727 | 17,231 | 2,495 | 16,881 | 2,846 | ||||||||||
Reserve for employees retirement benefits |
38,320 | 32,473 | 5,846 | 34,932 | 3,388 | ||||||||||
Reserve for expenses related to EXPO 2005 Japan |
211 | 103 | 107 | 158 | 53 | ||||||||||
Reserves under special laws |
1,305 | 1,049 | 256 | 1,160 | 144 | ||||||||||
Deferred tax liabilities |
65,440 | 65,638 | (197 | ) | 56,131 | 9,309 | |||||||||
Deferred tax liabilities on land revaluation excess |
134,023 | 128,396 | 5,626 | 138,926 | (4,902 | ) | |||||||||
Acceptances and guarantees |
4,580,375 | 4,853,440 | (273,065 | ) | 4,457,806 | 122,569 | |||||||||
Total liabilities |
108,739,818 | 100,629,052 | 8,110,766 | 101,969,895 | 6,769,922 | ||||||||||
Minority interest |
362,227 | 339,745 | 22,481 | 350,347 | 11,880 | ||||||||||
Shareholders equity: |
|||||||||||||||
Capital stock |
1,258,052 | 1,258,052 | | 1,258,052 | | ||||||||||
Capital surplus |
931,154 | 931,304 | (149 | ) | 931,309 | (155 | ) | ||||||||
Retained earnings |
1,659,442 | 1,244,197 | 415,244 | 1,506,576 | 152,866 | ||||||||||
Land revaluation excess |
151,260 | 186,364 | (35,104 | ) | 158,044 | (6,784 | ) | ||||||||
Unrealized gains on securities available for sale |
422,926 | 186,295 | 236,631 | 560,316 | (137,390 | ) | |||||||||
Foreign currency translation adjustments |
(112,955 | ) | (60,670 | ) | (52,284 | ) | (115,424 | ) | 2,468 | ||||||
Less treasury stock |
(3,447 | ) | (3,335 | ) | (111 | ) | (3,631 | ) | 183 | ||||||
Total shareholders equity |
4,306,432 | 3,742,207 | 564,225 | 4,295,243 | 11,188 | ||||||||||
Total liabilities, minority interest and shareholders equity |
113,408,478 | 104,711,005 | 8,697,473 | 106,615,487 | 6,792,991 | ||||||||||
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 September 30, |
(A) (B) |
For the year ended March 31, 2004 | |||||||
(in millions of yen) | 2004 (A) |
2003 (B) |
|||||||
Ordinary income: |
|||||||||
Interest income: |
|||||||||
Interest on loans and discounts |
414,602 | 454,784 | (40,182 | ) | 873,427 | ||||
Interest and dividends on securities |
165,661 | 178,509 | (12,848 | ) | 340,494 | ||||
Other interest income |
109,401 | 123,071 | (13,670 | ) | 203,802 | ||||
Total interest income |
689,664 | 756,365 | (66,700 | ) | 1,417,724 | ||||
Trust fees |
46,115 | 36,452 | 9,662 | 86,461 | |||||
Fees and commissions |
273,568 | 234,025 | 39,542 | 487,786 | |||||
Trading profits |
51,609 | 76,177 | (24,567 | ) | 135,647 | ||||
Other business income |
103,940 | 169,633 | (65,693 | ) | 243,377 | ||||
Other ordinary income |
93,266 | 88,275 | 4,990 | 184,186 | |||||
Total ordinary income |
1,258,164 | 1,360,929 | (102,765 | ) | 2,555,183 | ||||
Ordinary expenses: |
|||||||||
Interest expense: |
|||||||||
Interest on deposits |
87,029 | 84,492 | 2,536 | 161,921 | |||||
Interest on debentures |
348 | 2,310 | (1,962 | ) | 4,030 | ||||
Other interest expense |
96,628 | 137,472 | (40,843 | ) | 224,543 | ||||
Total interest expense |
184,006 | 224,276 | (40,269 | ) | 390,496 | ||||
Fees and commissions |
32,249 | 38,224 | (5,975 | ) | 66,102 | ||||
Trading losses |
1,362 | 4,136 | (2,773 | ) | | ||||
Other business expenses |
62,232 | 108,115 | (45,882 | ) | 152,803 | ||||
General and administrative expenses |
526,211 | 523,123 | 3,088 | 1,047,735 | |||||
Other ordinary expenses |
141,793 | 189,621 | (47,827 | ) | 319,674 | ||||
Total ordinary expenses |
947,857 | 1,087,497 | (139,639 | ) | 1,976,811 | ||||
Ordinary profit |
310,306 | 273,432 | 36,874 | 578,371 | |||||
Special gains: |
|||||||||
Gains on sales of premises and equipment |
2,584 | 2,316 | 268 | 4,376 | |||||
Gains on loans charged-off |
12,358 | 15,348 | (2,990 | ) | 26,425 | ||||
Reduction in reserve for contingent liabilities from brokering of financial futures transactions |
| 26 | (26 | ) | 26 | ||||
Reversal of allowance for loan losses |
11,340 | 163,548 | (152,208 | ) | 239,965 | ||||
Refund of enterprise taxes by the Tokyo Metropolitan Government |
| 41,958 | (41,958 | ) | 41,989 | ||||
Gains on transfer of the substitutional portion of future pension obligations |
| 26,503 | (26,503 | ) | 26,503 | ||||
Other special gains |
512 | | 512 | | |||||
Total Special gains |
26,795 | 249,702 | (222,906 | ) | 339,286 | ||||
Special losses: |
|||||||||
Losses on sales of premises and equipment |
5,107 | 9,572 | (4,465 | ) | 15,773 | ||||
Losses on impairment of fixed assets |
3,978 | | 3,978 | 21,586 | |||||
Provision for reserve for contingent liabilities from brokering of securities transactions |
144 | 276 | (131 | ) | 387 | ||||
Other special losses |
| 4,952 | (4,952 | ) | 7 | ||||
Total Special losses |
9,230 | 14,800 | (5,570 | ) | 37,754 | ||||
Income before income taxes and others |
327,872 | 508,334 | (180,461 | ) | 879,903 | ||||
Income taxes-current |
39,605 | 25,503 | 14,101 | 45,956 | |||||
Income taxes-deferred |
95,687 | 159,516 | (63,829 | ) | 230,650 | ||||
Minority interest |
20,901 | 21,436 | (534 | ) | 42,480 | ||||
Net income |
171,678 | 301,877 | (130,199 | ) | 560,815 | ||||
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 September 30, |
(A) (B) |
For the year ended March 31, 2004 |
||||||||||
(in millions of yen) | 2004 (A) |
2003 (B) |
||||||||||
Consolidated Statements of Capital Surplus |
||||||||||||
Balance of capital surplus at beginning of fiscal year |
931,309 | 932,016 | (707 | ) | 932,016 | |||||||
Decrease: |
(155 | ) | (712 | ) | 557 | (707 | ) | |||||
Losses on sales of treasury stock, net of income taxes |
(155 | ) | (712 | ) | 557 | (707 | ) | |||||
Balance of capital surplus at end of (interim) fiscal year |
931,154 | 931,304 | (149 | ) | 931,309 | |||||||
Consolidated Statements of Retained Earnings |
||||||||||||
Balance of retained earnings at beginning of fiscal year |
1,506,576 | 962,347 | 544,228 | 962,347 | ||||||||
Increase: |
195,262 | 310,932 | (115,669 | ) | 577,123 | |||||||
Net income |
171,678 | 301,877 | (130,199 | ) | 560,815 | |||||||
Reduction in land revaluation excess |
6,782 | 9,054 | (2,271 | ) | 16,286 | |||||||
Decrease in consolidated subsidiaries |
| | | 22 | ||||||||
Increase in companies accounted for by the equity method |
16,802 | | 16,802 | | ||||||||
Decrease: |
(42,396 | ) | (29,082 | ) | (13,314 | ) | (32,895 | ) | ||||
Cash dividends |
(42,316 | ) | (29,078 | ) | (13,237 | ) | (32,891 | ) | ||||
Bonuses to directors of consolidated subsidiaries |
(80 | ) | (3 | ) | (76 | ) | (3 | ) | ||||
Balance of retained earnings at end of (interim) fiscal year |
1,659,442 | 1,244,197 | 415,244 | 1,506,576 | ||||||||
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 September 30, |
(A) (B) |
For the year ended March 31, 2004 |
||||||||||
(in millions of yen) | 2004 (A) |
2003 (B) |
||||||||||
Cash flows from operating activities: |
||||||||||||
Income before income taxes and others |
327,872 | 508,334 | (180,461 | ) | 879,903 | |||||||
Depreciation |
53,131 | 46,061 | 7,070 | 106,495 | ||||||||
Impairment losses |
3,978 | | 3,978 | 21,586 | ||||||||
Goodwill amortization |
1,586 | (599 | ) | 2,186 | 551 | |||||||
Equity in loss (earnings) of affiliates |
(7,573 | ) | (1,232 | ) | (6,340 | ) | (3,595 | ) | ||||
Increase (decrease) in allowance for loan losses |
(30,563 | ) | (253,853 | ) | 223,289 | (455,972 | ) | |||||
Increase (decrease) in allowance for losses on investment securities |
(512 | ) | 1,121 | (1,633 | ) | 1,194 | ||||||
Increase (decrease) in reserve for employees bonuses |
2,846 | 202 | 2,643 | (147 | ) | |||||||
Increase (decrease) in reserve for employees retirement benefits |
3,110 | (4,502 | ) | 7,613 | (1,467 | ) | ||||||
Increase (decrease) in reserve for expenses related to EXPO 2005 Japan |
53 | 53 | 0 | 107 | ||||||||
Interest income recognized on statement of operations |
(689,664 | ) | (756,365 | ) | 66,700 | (1,417,724 | ) | |||||
Interest expenses recognized on statement of operations |
184,006 | 224,276 | (40,269 | ) | 390,496 | |||||||
Investment securities losses (gains) |
(23,933 | ) | 10,035 | (33,969 | ) | 20,149 | ||||||
Losses (gains) on money held in trust |
918 | (3,895 | ) | 4,813 | (6,992 | ) | ||||||
Foreign exchange losses (gains) |
(270,271 | ) | 302,701 | (572,972 | ) | 495,113 | ||||||
Losses (gains) on sales of premises and equipment |
2,522 | 7,721 | (5,199 | ) | 11,395 | |||||||
Net decrease (increase) in trading assets |
(1,043,781 | ) | (831,976 | ) | (211,805 | ) | (966,983 | ) | ||||
Net increase (decrease) in trading liabilities |
101,583 | 53,836 | 47,747 | 1,260,653 | ||||||||
Adjustment of unsettled trading accounts |
46,792 | (44,595 | ) | 91,388 | 140,034 | |||||||
Net decrease (increase) in loans and bills discounted |
(787,427 | ) | 587,495 | (1,374,922 | ) | (41,889 | ) | |||||
Net increase (decrease) in deposits |
937,980 | 2,511,203 | (1,573,223 | ) | 3,894,086 | |||||||
Net increase (decrease) in negotiable certificates of deposit |
1,077,314 | (317,583 | ) | 1,394,897 | (1,224,926 | ) | ||||||
Net increase (decrease) in debentures |
(234,304 | ) | (119,456 | ) | (114,847 | ) | (371,003 | ) | ||||
Net increase (decrease) in borrowed money (excluding subordinated borrowings) |
(52,776 | ) | (54,327 | ) | 1,551 | (89,963 | ) | |||||
Net decrease (increase) in due from banks (excluding cash equivalents) |
(536,777 | ) | 244,440 | (781,217 | ) | 597,067 | ||||||
Net decrease (increase) in call loans and bills bought and others |
675,893 | (589,857 | ) | 1,265,750 | (1,592,137 | ) | ||||||
Net decrease (increase) in receivables under securities borrowing transactions |
945,922 | (3,284,170 | ) | 4,230,092 | (3,152,785 | ) | ||||||
Net increase (decrease) in call money and bills sold and others |
4,041,454 | 961,881 | 3,079,572 | 3,315,174 | ||||||||
Net increase (decrease) in commercial paper |
(6,196 | ) | (54,575 | ) | 48,379 | (117,078 | ) | |||||
Net increase (decrease) in payables under securities lending transactions |
791,198 | 667,873 | 123,324 | (399,401 | ) | |||||||
Net decrease (increase) in foreign exchanges (assets) |
(94,272 | ) | 19,949 | (114,222 | ) | 50,562 | ||||||
Net increase (decrease) in foreign exchanges (liabilities) |
52,948 | 387,258 | (334,310 | ) | 548,324 | |||||||
Net increase (decrease) in issuance and redemption of short-term corporate bonds |
28,700 | 203,500 | (174,800 | ) | 330,200 | |||||||
Net increase (decrease) in issuance and redemption of unsubordinated bonds and notes |
50,569 | 127,506 | (76,937 | ) | 255,847 | |||||||
Net increase (decrease) in due to trust account |
(12,808 | ) | (65,076 | ) | 52,268 | (21,349 | ) | |||||
Interest income (cash basis) |
722,444 | 810,788 | (88,344 | ) | 1,466,611 | |||||||
Interest expenses (cash basis) |
(193,029 | ) | (272,624 | ) | 79,594 | (442,499 | ) | |||||
Other |
64,899 | (301,910 | ) | 366,809 | (428,749 | ) | ||||||
Sub-total |
6,133,834 | 719,638 | 5,414,196 | 3,050,886 | ||||||||
Income taxes |
(27,662 | ) | (19,489 | ) | (8,172 | ) | (51,096 | ) | ||||
Net cash provided by (used in) operating activities |
6,106,171 | 700,148 | 5,406,023 | 2,999,790 | ||||||||
Cash flows from investing activities: |
||||||||||||
Purchases of investment securities |
(41,117,087 | ) | (23,411,837 | ) | (17,705,249 | ) | (47,839,599 | ) | ||||
Proceeds from sales of investment securities |
19,947,002 | 17,576,271 | 2,370,731 | 29,004,862 | ||||||||
Proceeds from maturities of investment securities |
15,664,556 | 6,969,299 | 8,695,256 | 14,981,518 | ||||||||
Increase in money held in trust |
(29,075 | ) | (61,595 | ) | 32,520 | (65,949 | ) | |||||
Decrease in money held in trust |
48,374 | 5,043 | 43,330 | 9,349 | ||||||||
Purchases of premises and equipment |
(17,770 | ) | (15,173 | ) | (2,596 | ) | (49,867 | ) | ||||
Proceeds from sales of premises and equipment |
14,460 | 32,040 | (17,580 | ) | 59,827 | |||||||
Proceeds from sales of equity of subsidiaries resulting exclusion from consolidation |
| 2,022 | (2,022 | ) | 5,948 | |||||||
Additional purchases of equity of consolidated subsidiaries |
(1,319 | ) | | (1,319 | ) | | ||||||
Net cash provided by (used in) investing activities |
(5,490,858 | ) | 1,096,071 | (6,586,929 | ) | (3,893,910 | ) | |||||
Cash flows from financing activities: |
||||||||||||
Increase in subordinated borrowings |
85,200 | 104,345 | (19,145 | ) | 112,499 | |||||||
Decrease in subordinated borrowings |
(77,150 | ) | (139,845 | ) | 62,694 | (174,999 | ) | |||||
Increase in subordinated bonds and notes and bonds with warrants |
67,306 | 191,642 | (124,335 | ) | 304,155 | |||||||
Decrease in subordinated bonds and notes and bonds with warrants |
(49,607 | ) | (17,057 | ) | (32,549 | ) | (323,285 | ) | ||||
Proceeds from issuance of common stock |
4,581 | | 4,581 | 10,000 | ||||||||
Proceeds from issuance of common stock to minority shareholders |
| 9,422 | (9,422 | ) | 38,407 | |||||||
Dividend paid by the parent |
(42,264 | ) | (29,010 | ) | (13,254 | ) | (32,850 | ) | ||||
Dividend paid by subsidiaries to minority shareholders |
(11,607 | ) | (13,372 | ) | 1,764 | (5,678 | ) | |||||
Purchases of treasury stock |
(416 | ) | (139 | ) | (276 | ) | (467 | ) | ||||
Proceeds from sales of treasury stock |
1,105 | 910 | 194 | 949 | ||||||||
Purchases of treasury stock by consolidated subsidiaries |
(8,176 | ) | | (8,176 | ) | | ||||||
Proceeds from sales of treasury stock by consolidated subsidiaries |
259 | | 259 | | ||||||||
Net cash provided by (used in) financing activities |
(30,770 | ) | 106,895 | (137,665 | ) | (71,269 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents |
6,057 | 2,772 | 3,285 | (49,616 | ) | |||||||
Net increase (decrease) in cash and cash equivalents |
590,600 | 1,905,887 | (1,315,287 | ) | (1,015,005 | ) | ||||||
Cash and cash equivalents at beginning of fiscal year |
3,034,525 | 4,049,530 | (1,015,005 | ) | 4,049,530 | |||||||
Cash and cash equivalents at end of (interim) fiscal year |
3,625,125 | 5,955,417 | (2,330,292 | ) | 3,034,525 | |||||||
See Notes to Consolidated Financial Statements.
- 15 -
Notes to Consolidated Financial Statements
Notes related to the Consolidated Balance Sheet as of September 30, 2004 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 generally accepted in Japan, which are different in certain respects as compared to the application and disclosure requirements of International Accounting Standards. 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 assets and Trading liabilities are stated at market value 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, other than the case that the securities embedding derivatives are measured at fair value in their entirety and the change in the fair value is recognized in current earnings.
4. Securities in Money Held in Trust
Securities included in Money held in trust of sole investment mainly for the purpose of security investment 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 principle.
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 |
4 years to 15 years |
Depreciation for buildings and equipment of other consolidated subsidiaries is computed principally using the straight-line method based on the estimated useful lives.
- 16 -
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. Bond Discount and Bond Issuance Cost
Bond discount is amortized over the remaining life of the bond.
Bond issuance cost is charged to expenses when incurred.
9. Translation of Foreign Currency Items
Foreign currency assets and liabilities and overseas branches accounts of MTFGs 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 MTFGs 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:
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 ¥482,508 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.
- 17 -
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, MTFGs domestic banking subsidiary and trust banking subsidiary have principally adopted portfolio hedges or individual hedges prescribed in the Industry Audit Committee 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., MTFGs 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 individually or 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.
In hedging activities to fix forecasted cash flows on variable rate or short-term fixed rate deposits and loans etc., MTFGs 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 (at most 15 years from 2003). Deferred hedge losses and deferred hedge gains attributable to the macro hedge accounting as of September 30, 2004 were ¥140,550 million and ¥174,476 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, MTFGs 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.
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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 under identical currency 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 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 scheduled to be held in 2005 based on the estimated contractual participation expenses allocated over the period. 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 ¥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 ¥1,274 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. Impairment of Fixed Assets
Effective April 1, 2003, the MTFG Group adopted Accounting Standards for Impairment of Fixed Assets issued by the Business Accounting Council on August 9, 2002 and Financial Accounting Standard Implementation Guidance No. 6, Implementation Guidance for Accounting Standard for Impairment of Fixed Assets issued by the Accounting Standards Board of Japan, ASBJ on October 31, 2003, because their early adoption in the fiscal year ended March 31, 2004 was permitted.
- 19 -
23. Due from Directors of MTFG
Due from directors of MTFG was ¥89 million.
24. Accumulated Depreciation
Accumulated depreciation on premises and equipment was ¥622,588 million.
25. Accumulated Deferred Gains on Sales of Real Estate
Accumulated deferred gains on sales of real estate of ¥45,484 million were deducted from the acquisition cost of newly acquired premises and equipment.
26. Nonaccrual Loans
Loans to customers in bankruptcy and past due loans are included in Loans and bills discounted, and the amounts were ¥33,746 million and ¥1,173,309 million, respectively. The amount of past due loans included loans of ¥610 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.
27. 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 ¥11,898 million. Loans classified as loans to customers in bankruptcy or past due loans are excluded.
28. Restructured Loans
Restructured loans are included in Loans and bills discounted, and the amount was ¥325,637 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.
29. 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 ¥1,544,591 million. The amount of past due loans included loans of ¥610 million entrusted to the Resolution and Collection Corporation, which facilitates the removal of problem loans from balance sheet.
The amounts reflected in Notes 26. to 29. represent the gross receivable amounts prior to reduction for the allowance for loan losses.
30. 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 MTFGs domestic banking subsidiary and trust banking subsidiary are permitted to be sold or pledged and the total face value was ¥743,000 million.
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31. Assets Pledged
Assets pledged as collateral were as follows:
Cash and due from banks |
¥ | 1,876 million | |
Commercial paper and other debt purchased |
¥ | 4,792 million | |
Trading assets |
¥ | 177,297 million | |
Investment securities |
¥ | 2,782,097 million | |
Loans and bills discounted |
¥ | 4,528,666 million | |
Premises and equipment |
¥ | 28,569 million |
Liabilities related to the pledged assets were as follows:
Deposits |
¥ | 232,475 million | |
Call money and bills sold |
¥ | 6,969,200 million | |
Borrowed money |
¥ | 28,898 million | |
Bonds and notes |
¥ | 79,491 million | |
Other liabilities |
¥ | 8,066 million | |
Acceptances and guarantees |
¥ | 1,796 million |
In addition, Cash and due from banks of ¥288,174 million, Commercial paper and other debt purchased of ¥17 million, Trading assets of ¥26,665 million, Investment securities of ¥5,176,425 million, Loans and bills discounted of ¥1,106,569 million and Other assets of ¥4,184 million were pledged as collateral for settlement of exchange or derivatives transactions or as valuation margin.
Commercial paper and other debt purchased of ¥28,189 million, Trading assets of ¥3,223,757 million and Investment securities of ¥3,569,278 million were sold under repurchase agreements or lent under secured lending transactions, and Payables under repurchase agreements of ¥4,196,452 million and Payables under securities lending transactions of ¥2,997,813 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 MTFGs domestic banking subsidiary and trust banking subsidiary was ¥18,727 million.
32. Land Revaluation Excess
Pursuant to the Law concerning Revaluation of Land, March 31, 1998, 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 MTFGs 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 |
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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 Paragraph 5 of the Law.
Land used for business operations of a certain affiliated company has been revalued as of March 31, 2002.
33. Subordinated Borrowings
Subordinated borrowings of ¥716,290 million were included in Borrowed money.
34. Subordinated Bonds
Subordinated bonds of ¥1,525,593 million were included in Bonds and notes.
35. Guaranteed Trusts
Principal amounts of Jointly operated designated money trusts and Loan trusts of MTFGs trust banking subsidiary, for which repayment of the principal to the customers is guaranteed, were ¥915,281 million and ¥1,004,308 million, respectively.
36. Net Assets per Common Share
Net assets per common share were ¥623,070.24.
37. 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
38. 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 39. to 41.
Trading securities
Balance sheet amount |
¥ | 6,805,250 million | |
Valuation profits included in Income before income taxes and others |
¥ | 8,428 million |
Marketable debt securities being held to maturity
(in millions of yen) | ||||||||||
Balance sheet amount |
Market value |
Differences |
Gains |
Losses | ||||||
Domestic bonds |
1,792,718 | 1,806,309 | 13,590 | 13,590 | | |||||
Government bonds |
1,648,689 | 1,656,678 | 7,989 | 7,989 | | |||||
Municipal bonds |
100,005 | 103,744 | 3,738 | 3,738 | | |||||
Corporate bonds |
44,024 | 45,886 | 1,862 | 1,862 | | |||||
Other securities |
368,615 | 370,357 | 1,741 | 1,954 | 212 | |||||
Foreign bonds |
69,355 | 71,097 | 1,741 | 1,954 | 212 | |||||
Other |
299,259 | 299,259 | | | | |||||
Total |
2,161,334 | 2,176,667 | 15,332 | 15,544 | 212 |
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Marketable securities available for sale
(in millions of yen) | ||||||||||
Cost |
Balance sheet amount |
Valuation differences |
Gains |
Losses | ||||||
Domestic equity securities |
2,508,010 | 3,142,643 | 634,632 | 744,276 | 109,644 | |||||
Domestic bonds |
20,192,100 | 20,216,217 | 24,116 | 45,435 | 21,318 | |||||
Government bonds |
18,272,652 | 18,288,827 | 16,175 | 35,779 | 19,604 | |||||
Municipal bonds |
210,303 | 211,565 | 1,262 | 2,137 | 874 | |||||
Corporate bonds |
1,709,145 | 1,715,823 | 6,678 | 7,518 | 839 | |||||
Other securities |
7,642,773 | 7,689,726 | 46,952 | 100,044 | 53,091 | |||||
Foreign equity securities |
20,434 | 34,436 | 14,001 | 14,520 | 519 | |||||
Foreign bonds |
5,821,554 | 5,849,643 | 28,089 | 52,886 | 24,797 | |||||
Other |
1,800,783 | 1,805,646 | 4,862 | 32,637 | 27,775 | |||||
Total |
30,342,884 | 31,048,586 | 705,702 | 889,757 | 184,054 |
Among the valuation differences above, the amounts of shareholders equity, net of income taxes were ¥705,558 million as a result of recognizing ¥143 million profits, which were related to the securities embedding derivatives and measured in their entirety, in current earnings. Those amounts, net of ¥285,590 million of related deferred tax liabilities, were ¥419,968 million. Net valuation differences, excluding minority interest of ¥700 million and adding MTFGs ownership percentage of affiliates unrealized gains on securities available for sale of ¥2,257 million, were ¥422,926 million which were included in Unrealized gains on securities available for sale.
39. 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 | ||||
¥19,986,193 | ¥ | 116,337 | ¥ | 59,596 |
40. 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 |
¥ | 13,574 million | |
Securities available for sale |
|||
Domestic equity securities |
¥ | 1,015,921 million | |
Domestic corporate bonds |
¥ | 528,431 million | |
Foreign bonds |
¥ | 48,548 million |
- 23 -
41. 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 1 year |
Due after 1 year through 5 years |
Due after 5 years through 10 years |
Due after 10 years | |||||
Domestic bonds |
12,023,151 | 7,842,279 | 1,631,717 | 1,044,415 | ||||
Government bonds |
11,356,231 | 6,120,586 | 1,427,602 | 1,033,095 | ||||
Municipal bonds |
69,242 | 158,562 | 87,967 | | ||||
Corporate bonds |
597,677 | 1,563,130 | 116,147 | 11,319 | ||||
Other bonds |
853,966 | 3,926,149 | 1,135,135 | 1,573,466 | ||||
Foreign bonds |
477,799 | 3,699,398 | 921,674 | 844,105 | ||||
Other |
376,167 | 226,750 | 213,460 | 729,361 | ||||
Total |
12,877,118 | 11,768,428 | 2,766,852 | 2,617,882 |
42. Money Held in Trust
Classification of Money held in trust was as follows:
Money held in trust for trading purposes
Balance sheet amount |
¥ | 335,105 million | |
Valuation gains included in Income before income taxes and others |
¥ | 11 million |
Other Money held in trust
(in millions) | ||||||||
Cost |
Balance sheet amount |
Valuation differences |
Gains |
Losses | ||||
¥116,830 | ¥116,830 | | | |
43. Securities Lent/Borrowed
Unsecured securities lent for which borrowers have rights of sale or pledge were included in Trading assets and Investment securities. The amount was ¥128 million and ¥733 million, respectively.
With respect to borrowed securities, received securities as collateral for call loans and purchased securities under resale agreements that are permitted to be sold or pledged, ¥2,625,073 million were pledged, ¥483,146 million were lent and ¥4,579,774 million were held at hand at this interim fiscal year end.
44. 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 ¥30,979,116 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.
- 24 -
Notes related to the Consolidated Statement of Operations for the six months ended September 30, 2004 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 generally accepted in Japan, which are different in certain respects as compared to application and disclosure requirements of International Accounting Standards. 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 ¥25,924.96.
3. Trading Profits and Losses
Profits and losses on trading transactions (dividends and interest, gains or losses on sales, and valuation gains or losses) are shown as Trading profits or Trading losses on a trade date basis.
4. Other Ordinary Income
Other ordinary income included gains on sales of equity securities of ¥42,943 million.
5. Other Ordinary Expenses
Other ordinary expenses included losses on sales or exchange of loans and other claims of ¥38,182 million, losses on equity securities charge-offs of ¥33,549 million, losses on loan charge-offs of ¥28,597 million and losses on sales of equity securities of ¥14,121 million .
6. Enterprise Taxes
With the implementation of the Revision of the Local Tax Law (Legislation No.9, March, 2003) on March 31, 2003, a part of tax basis of enterprise taxes was changed to amount of value-added and amount of capital in the fiscal year started April 1, 2004. MTFG and certain domestic consolidated subsidiaries have presented enterprise taxes computed based on amount of value-added and amount of capital in general and administrative expenses in the Consolidated Statement of Operations based on Practical Treatment of Presentation in Income Statement for Enterprise Taxes through External Standards Taxation (February 13, 2004, ASBJ-Report of Practical Issues No.12) .
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Note related to the Consolidated Statement of Capital Surplus and Retained Earnings for the six months ended September 30, 2004 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 generally accepted in Japan, which are different in certain respects as compared to application and disclosure requirements of International Accounting Standards. 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.
- 26 -
Notes related to the Consolidated Statement of Cash Flows for the six months ended September 30, 2004 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 generally accepted in Japan, which are different in certain respects as compared to application and disclosure requirements of International Accounting Standards. 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 |
¥ | 7,641,687 | ||
Time deposits and negotiable certificates of deposit in other banks |
(4,016,561 | ) | ||
Cash and cash equivalents at end of interim fiscal year |
¥ | 3,625,125 | ||
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Mitsubishi Tokyo Financial Group, Inc., and Subsidiaries
Significant Policies in Preparation of Consolidated Financial Statements
1. Scope of Consolidation
(1) | Number of consolidated subsidiaries: 154 |
Significant companies | ||
The Bank of Tokyo-Mitsubishi, Ltd. | The Mitsubishi Trust and Banking Corporation |
(2) | Non-consolidated subsidiaries |
Companies | ||
KOKUSAI Europe Limited | KOKUSAI America Incorporated | |
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: 25 |
Significant companies | ||
ACOM Co., Ltd. | ||
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 | |
ACOM Co., Ltd. is included in affiliated companies accounted for by the equity method due to acquirement of shares from this fiscal year. |
(2) | Non-consolidated subsidiaries and affiliated companies not accounted for by the equity method |
Companies | ||
KOKUSAI Europe Limited | KOKUSAI America Incorporated | |
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. 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 | : | 100 | subsidiaries | September 30 | : | 51 | 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. |
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Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Segment Information
1. Business segment information
<For the six months ended September 30, 2004>
(in millions of yen) | |||||||||||||||
Banking |
Trust Banking |
Securities |
Other |
Total |
(Elimination) |
Consolidated | |||||||||
Ordinary income: |
|||||||||||||||
(1) Ordinary income from customers |
881,408 | 223,290 | 83,743 | 69,721 | 1,258,164 | | 1,258,164 | ||||||||
(2) Internal ordinary income among segments |
13,127 | 7,037 | 8,867 | 190,934 | 219,967 | (219,967 | ) | | |||||||
Total ordinary income |
894,535 | 230,327 | 92,611 | 260,656 | 1,478,131 | (219,967 | ) | 1,258,164 | |||||||
Ordinary expenses |
658,774 | 172,558 | 86,154 | 65,779 | 983,266 | (35,409 | ) | 947,857 | |||||||
Ordinary profit |
235,761 | 57,769 | 6,456 | 194,876 | 494,864 | (184,557 | ) | 310,306 | |||||||
Notes:
1. | Other primarily includes credit card and leasing businesses. |
2. | Ordinary profit for Other includes dividend of 183,257 million yen from MTFGs domestic banking subsidiary and trust banking subsidiary. |
<For the six months ended September 30, 2003>
(in millions of yen) | |||||||||||||||
Banking |
Trust 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 |
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, MTFGs 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 year ended March 31, 2004>
(in millions of yen) | |||||||||||||||
Banking |
Trust Banking |
Securities |
Other |
Total |
(Elimination) |
Consolidated | |||||||||
Ordinary income: |
|||||||||||||||
(1) Ordinary income from customers |
1,758,067 | 483,201 | 179,776 | 134,137 | 2,555,183 | | 2,555,183 | ||||||||
(2) Internal ordinary income among segments |
26,576 | 15,920 | 16,177 | 73,836 | 132,510 | (132,510 | ) | | |||||||
Total ordinary income |
1,784,643 | 499,122 | 195,954 | 207,973 | 2,687,694 | (132,510 | ) | 2,555,183 | |||||||
Ordinary expenses |
1,392,766 | 368,205 | 152,144 | 129,868 | 2,042,984 | (66,173 | ) | 1,976,811 | |||||||
Ordinary profit |
391,877 | 130,916 | 43,810 | 78,104 | 644,709 | (66,337 | ) | 578,371 | |||||||
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 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 fiscal year, MTFGs 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 10,435 million yen, and its effect in the Banking segment and the Trust Banking segment was 8,885 million yen and 1,550 million yen, respectively.
3. | In the current fiscal year, a part of derivative business for trading purpose of MTFGs domestic banking subsidiary is transplanted to Mitsubishi Securities Co., Ltd.. Therefore, ordinary profit and expenses for Securities includes that for the transplanted business. |
- 29 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
2. Geographic segment information
<For the six months ended September 30, 2004>
(in millions of yen) | ||||||||||||||||||
Japan |
North America |
Latin America |
Europe/ Mid. East |
Asia/Oceania excl. Japan |
Total |
(Elimination) |
Consolidated | |||||||||||
Ordinary income: |
||||||||||||||||||
(1) Ordinary income from customers |
884,694 | 227,208 | 5,739 | 94,441 | 46,079 | 1,258,164 | | 1,258,164 | ||||||||||
(2) Internal ordinary income among segments |
20,610 | 7,135 | 9,112 | 14,849 | 9,188 | 60,895 | (60,895 | ) | | |||||||||
Total ordinary income |
905,304 | 234,343 | 14,852 | 109,291 | 55,267 | 1,319,059 | (60,895 | ) | 1,258,164 | |||||||||
Ordinary expenses |
683,475 | 159,968 | 19,471 | 99,570 | 38,903 | 1,001,389 | (53,532 | ) | 947,857 | |||||||||
Ordinary profit (loss) |
221,828 | 74,375 | (4,618 | ) | 9,720 | 16,364 | 317,670 | (7,363 | ) | 310,306 | ||||||||
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 six months ended September 30, 2003>
(in millions of yen) | ||||||||||||||||||
Japan |
North America |
Latin America |
Europe/ Mid. East |
Asia/Oceania 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, MTFGs 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 year ended March 31, 2004>
(in millions of yen) | ||||||||||||||||||
Japan |
North America |
Latin America |
Europe/ Mid. East |
Asia/Oceania excl. Japan |
Total |
(Elimination) |
Consolidated | |||||||||||
Ordinary income: |
||||||||||||||||||
(1) Ordinary income from customers |
1,791,099 | 445,309 | 12,734 | 212,057 | 93,982 | 2,555,183 | | 2,555,183 | ||||||||||
(2) Internal ordinary income among segments |
75,041 | 8,111 | 21,897 | 39,537 | 11,193 | 155,780 | (155,780 | ) | | |||||||||
Total ordinary income |
1,866,140 | 453,420 | 34,632 | 251,594 | 105,176 | 2,710,964 | (155,780 | ) | 2,555,183 | |||||||||
Ordinary expenses |
1,480,462 | 316,804 | 40,581 | 198,885 | 75,377 | 2,112,111 | (135,299 | ) | 1,976,811 | |||||||||
Ordinary profit (loss) |
385,678 | 136,616 | (5,949 | ) | 52,709 | 29,798 | 598,853 | (20,481 | ) | 578,371 | ||||||||
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 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 fiscal year, MTFGs 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 10,435 million yen, and its effect in Japan and North America was 9,974 million yen and 461 million yen, respectively.
- 30 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
3. Ordinary income from overseas operations
(in millions of yen) |
|||||||
Ordinary income from overseas operations |
Consolidated ordinary income |
Ordinary income from overseas operations as a percentage of consolidated ordinary income |
|||||
For the six months ended September 30, 2004 |
373,469 | 1,258,164 | 29.6 | % | |||
For the six months ended September 30, 2003 |
427,894 | 1,360,929 | 31.4 | % | |||
For the year ended March 31, 2004 |
764,083 | 2,555,183 | 29.9 | % |
Note:
1. | Ordinary income from overseas operations consists of income from transactions of the overseas branches of MTFGs domestic banking subsidiary and trust banking subsidiary, and MTFGs overseas subsidiaries (excluding internal ordinary income among consolidated companies). |
- 31 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Investment securities
Following tables include:
Investment securities
Trading securities, trading commercial paper and trading short-term corporate bonds in Trading assets
Negotiable certificates of deposits in Cash and due from banks
Beneficiary certificates of commodity investment trusts in Commercial Paper and other debt purchased.
1. Marketable debt securities being held to maturity
( in millions of yen) | |||||||||||
As of September 30, 2003 | |||||||||||
Balance sheet amount |
Market value |
Differences |
Gains |
Losses | |||||||
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 | | ||||||
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 | ||||||
2. Marketable securities available for sale | |||||||||||
( in millions of yen) | |||||||||||
As of September 30, 2003 | |||||||||||
Cost |
Balance sheet amount |
Valuation differences |
Gains |
Losses | |||||||
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 | ||||||
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 | ||||||
3. Principal securities not stated at market value
( in millions of yen) | ||
As of September 30, 2003 | ||
Balance sheet amount | ||
Debt securities being held to maturity |
||
Foreign bonds |
20,442 | |
Securities available for sale |
||
Domestic equity securities |
170,093 | |
Domestic corporate bonds |
339,304 | |
Foreign bonds |
65,148 |
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, 2003 | ||||||||
Cost |
Balance sheet amount |
Valuation differences |
Gains |
Losses | ||||
134,190 |
134,508 | 317 | 317 | |
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, 2003 |
|||
Valuation differences |
314,917 | ||
Securities available for sale |
314,599 | ||
Money held in trust other than trading purpose and being held to maturity |
317 | ||
Deferred tax liabilities |
(127,093 | ) | |
Net valuation differences |
187,823 | ||
Minority interest |
(2,528 | ) | |
MTFGs ownership percentage of affiliates unrealized gains on securities available for sale |
1,000 | ||
Unrealized gains on securities available for sale |
186,295 | ||
- 32 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Investment securities
Following tables include:
Investment securities
Trading securities, trading commercial paper and trading short-term corporate bonds 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, 2004 | ||
Balance sheet amount |
Valuation losses recognized on statement of operations | |
5,655,999 |
(3,823) |
2. Marketable debt securities being held to maturity
( in millions of yen) | |||||||||||
As of March 31, 2004 | |||||||||||
Balance sheet amount |
Market value |
Differences |
Gains |
Losses | |||||||
Domestic bonds |
1,159,458 | 1,165,842 | 6,383 | 7,602 | 1,218 | ||||||
Government bonds |
998,942 | 999,449 | 507 | 1,724 | 1,217 | ||||||
Municipal bonds |
108,526 | 112,230 | 3,703 | 3,704 | 0 | ||||||
Corporate bonds |
51,988 | 54,162 | 2,173 | 2,173 | | ||||||
Foreign bonds |
74,239 | 76,825 | 2,586 | 2,592 | 5 | ||||||
Other |
168,118 | 168,152 | 34 | 34 | | ||||||
Total |
1,401,815 | 1,410,820 | 9,004 | 10,228 | 1,224 | ||||||
3. Marketable securities available for sale | |||||||||||
( in millions of yen) | |||||||||||
As of March 31, 2004 | |||||||||||
Cost |
Balance sheet amount |
Valuation differences |
Gains |
Losses | |||||||
Domestic equity securities |
2,768,443 | 3,553,772 | 785,328 | 891,328 | 105,999 | ||||||
Domestic bonds |
15,703,795 | 15,707,190 | 3,394 | 40,723 | 37,328 | ||||||
Government bonds |
13,989,184 | 13,986,921 | (2,263 | ) | 31,617 | 33,880 | |||||
Municipal bonds |
243,459 | 244,981 | 1,522 | 2,734 | 1,212 | ||||||
Corporate bonds |
1,471,150 | 1,475,286 | 4,136 | 6,371 | 2,235 | ||||||
Foreign equity securities |
15,012 | 29,518 | 14,506 | 14,827 | 321 | ||||||
Foreign bonds |
6,316,837 | 6,424,133 | 107,296 | 115,867 | 8,570 | ||||||
Other |
1,475,136 | 1,512,124 | 36,987 | 51,846 | 14,858 | ||||||
Total |
26,279,224 | 27,226,739 | 947,514 | 1,114,592 | 167,078 | ||||||
4. Securities available for sale sold
( in millions of yen) | ||||
For the year ended March 31, 2004 | ||||
Proceeds from sales |
Gains on sales |
Losses on sales | ||
28,653,515 |
224,278 | 211,230 |
5. Principal securities not stated at market value
( in millions of yen) | ||
As of March 31, 2004 | ||
Balance sheet amount | ||
Debt securities being held to maturity |
||
Foreign bonds |
13,749 | |
Securities available for sale |
||
Domestic equity securities |
182,534 | |
Domestic corporate bonds |
410,366 | |
Foreign bonds |
18,935 |
6. Redemption schedules of bonds
( in millions of yen) | ||||||||
As of March 31, 2004 | ||||||||
Due within 1 year |
Due after 1 year through 5 years |
Due after 5 years through 10 years |
Due after 10 years | |||||
Domestic bonds |
8,211,601 | 6,917,038 | 1,020,579 | 1,132,321 | ||||
Government bonds |
7,818,442 | 5,246,113 | 793,757 | 1,127,550 | ||||
Municipal bonds |
92,371 | 168,187 | 97,475 | | ||||
Corporate bonds |
300,787 | 1,502,737 | 129,346 | 4,771 | ||||
Foreign bonds |
1,047,316 | 4,350,417 | 447,576 | 653,007 | ||||
Other |
261,669 | 232,304 | 188,395 | 501,545 | ||||
Total |
9,520,586 | 11,499,760 | 1,656,551 | 2,286,875 | ||||
- 33 -
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 31,2004 | ||
Balance sheet amount |
Valuation gains recognized on statement of operations | |
334,316 |
8,247 |
2. Money held in trust other than trading purpose and being held to maturity
( in millions of yen) | ||||||||
As of March 31, 2004 | ||||||||
Cost |
Balance sheet amount |
Valuation differences |
Gains |
Losses | ||||
134,664 |
135,061 | 396 | 396 | |
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, 2004 |
|||
Valuation differences |
947,719 | ||
Securities available for sale |
947,322 | ||
Money held in trust other than trading purpose and being held to maturity |
396 | ||
Deferred tax liabilities |
(386,457 | ) | |
Net valuation differences |
561,261 | ||
Minority interest |
(3,001 | ) | |
MTFGs ownership percentage of affiliates unrealized gains on securities available for sale |
2,056 | ||
Unrealized gains on securities available for sale |
560,316 | ||
- 34 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Notional principal or contract amount, market value and valuation gains (losses) on derivatives
The publication is omitted in order to be disclosed by EDINET.
<Reference>
1. Derivatives qualified for hedge-accounting
(in billions of yen) |
|||||
As of September 30, 2004 |
|||||
Notional principal or contract amount |
Market value |
||||
Interest rate futures |
5,839.2 | (1.2 | ) | ||
Interest rate swaps |
30,054.3 | 104.8 | |||
Currency swaps |
5,044.2 | (37.0 | ) | ||
Other interest rate-related transactions |
797.3 | 3.1 | |||
Others |
0.8 | (0.0 | ) | ||
Total |
69.6 | ||||
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, 2004 | ||||||||
Due within 1 year |
Due after 1 year through 5 years |
Due after 5 years |
Total | |||||
Receive-fix/pay-floater |
6,597.0 | 14,624.9 | 1,357.3 | 22,579.3 | ||||
Receive-floater/pay-fix |
3,373.1 | 2,462.2 | 1,629.5 | 7,464.9 | ||||
Receive-floater/pay-floater |
| 10.0 | | 10.0 | ||||
Total |
9,970.2 | 17,097.2 | 2,986.8 | 30,054.3 | ||||
2. Deferred gains (losses)
(in billions of yen) |
|||||||
As of September 30, 2004 |
|||||||
Deferred gains |
Deferred losses |
Net gains (losses) |
|||||
(A) |
(B) |
(A)(B) |
|||||
Interest rate futures |
10.5 | 11.0 | (0.5 | ) | |||
Interest rate swaps |
252.0 | 229.1 | 22.8 | ||||
Currency swaps |
23.2 | 21.0 | 2.2 | ||||
Other interest rate-related transactions |
1.2 | 0.2 | 0.9 | ||||
Others |
2.3 | 2.4 | (0.1 | ) | |||
Total |
289.3 | 263.9 | 25.4 | ||||
Note: Deferred gains (losses) attributable to the macro hedge accounting as of September 30, 2004 are included in the above table.
- 35 -
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) | ||||||||
As of September 30, 2003 | ||||||||
Due within 1 year |
Due after 1 year through 5 years |
Due after 5 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)
(in billions of yen) |
|||||||
As of September 30, 2003 |
|||||||
Deferred gains |
Deferred losses |
Net gains (losses) |
|||||
(A) |
(B) |
(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.
- 36 -
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
<Reference>
1. Derivatives qualified for hedge-accounting
(in billions of yen) | ||||
As of March 31, 2004 | ||||
Notional principal or contract amount |
Market value | |||
Interest rate futures |
5,921.2 | 2.4 | ||
Interest rate swaps |
26,922.0 | 91.4 | ||
Currency swaps |
3,994.9 | 17.9 | ||
Other interest rate-related transactions |
3.8 | 0.0 | ||
Others |
0.6 | 0.6 | ||
Total |
112.5 | |||
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 March 31, 2004 | ||||||||
Due within 1 year |
Due after 1 year through 5 years |
Due after 5 years |
Total | |||||
Receive-fix/pay-floater |
6,089.5 | 12,283.2 | 1,318.4 | 19,691.2 | ||||
Receive-floater/pay-fix |
3,042.5 | 2,685.5 | 1,492.7 | 7,220.8 | ||||
Receive-floater/pay-floater |
| 10.0 | | 10.0 | ||||
Total |
9,132.0 | 14,978.7 | 2,811.2 | 26,922.0 | ||||
2. Deferred gains (losses)
(in billions of yen) |
|||||||
As of March 31, 2004 |
|||||||
Deferred gains |
Deferred losses |
Net gains (losses) |
|||||
(A) |
(B) |
(A)(B) |
|||||
Interest rate futures |
17.7 | 13.8 | 3.8 | ||||
Interest rate swaps |
325.2 | 305.1 | 20.0 | ||||
Currency swaps |
37.2 | 39.1 | (1.9 | ) | |||
Other interest rate-related transactions |
0.1 | 0.1 | | ||||
Others |
4.0 | 4.4 | (0.3 | ) | |||
Total |
384.3 | 362.6 | 21.6 | ||||
Note: Deferred gains (losses) attributable to the macro hedge accounting as of March 31, 2004 are included in the above table.
- 37 -
Interim Non-Consolidated Summary Report
<under Japanese GAAP>
for the Fiscal Year Ending March 31, 2005
Date: |
November 24, 2004 | |
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: |
Nobuo Kuroyanagi, President & CEO | |
For inquiry: |
Katsuhiko Ishizuka, Chief ManagerFinancial Policy Division | |
(Phone) +81-3-3240-8211 | ||
Date of resolution of Board of Directors with respect |
||
to the interim non-consolidated financial statements: |
November 24, 2004 | |
Interim dividends policy: |
Yes | |
Unit share system: |
No |
1. Non-consolidated financial data for the six months ended September 30, 2004
(1) Operating results
(in millions of yen except per share data and percentages) | ||||||||
For the six months ended September 30, |
For the year ended March 31, 2004 | |||||||
2004 |
2003 |
|||||||
Operating income |
187,924 | 42,493 | 69,321 | |||||
Change from the previous year |
342.2 | % | 76.1 | % | ||||
Operating profit |
184,170 | 40,429 | 64,735 | |||||
Change from the previous year |
355.5 | % | 80.4 | % | ||||
Ordinary profit |
183,263 | 40,269 | 64,426 | |||||
Change from the previous year |
355.1 | % | 80.4 | % | ||||
Net income |
183,200 | 40,304 | 64,474 | |||||
Change from the previous year |
354.5 | % | 82.8 | % | ||||
Net income per common share |
27,696.42 | 5,828.98 | 9,003.89 |
Notes:
1. | Average number of shares outstanding: |
For the six months ended September 30, 2004: |
||||
(common stock) |
6,493,370 | shares | ||
(preferred stockclass 1) |
81,400 | shares | ||
(preferred stockclass 2) |
8,196 | shares | ||
For the six months ended September 30, 2003: |
||||
(common stock) |
6,260,288 | shares | ||
(preferred stockclass 1) |
81,400 | shares | ||
(preferred stockclass 2) |
89,614 | shares | ||
For the year ended March 31, 2004: |
||||
(common stock) |
6,350,814 | shares | ||
(preferred stockclass 1) |
81,400 | shares | ||
(preferred stockclass 2) |
58,039 | shares |
2. | Changes in accounting policy: No |
- 38 -
(2) Payment of dividends
(in yen) | ||||||||||||||||
For the six months ended September 30, |
For the year ended March 31, | |||||||||||||||
2004 |
2003 |
2004 | ||||||||||||||
Common stock |
Preferred stockclass 1 |
Common stock |
Preferred stockclass 1 |
Preferred stockclass 2 |
Common stock |
Preferred stockclass 1 |
Preferred stockclass 2 | |||||||||
Interim dividends per share |
0 | 41,250 | 0 | 41,250 | 8,100 | | | | ||||||||
Total dividends per share paid for the fiscal year |
| | | | | 6,000 | 82,500 | 16,200 | ||||||||
(3) Financial condition
(in millions of yen except per share data and percentages) |
|||||||||
As of September 30, |
As of March 31, |
||||||||
2004 |
2003 |
2004 |
|||||||
Total assets |
5,129,492 | 4,284,607 | 4,321,389 | ||||||
Shareholders equity |
4,423,039 | 4,262,486 | 4,282,547 | ||||||
Shareholders equity as a percentage of total liabilities and shareholders equity |
86.2 | % | 99.5 | % | 99.1 | % | |||
Shareholders equity per common share |
640,735.04 | 613,905.15 | 618,015.33 |
Notes:
1. | Number of shares outstanding as of: |
September 30, 2004: |
||||
(common stock) |
6,516,705 | shares | ||
(preferred stock-class 1) |
81,400 | shares | ||
September 30, 2003: |
||||
(common stock) |
6,356,150 | shares | ||
(preferred stock-class 1) |
81,400 | shares | ||
(preferred stock-class 2) |
56,200 | shares | ||
March 31, 2004: |
||||
(common stock) |
6,474,038 | shares | ||
(preferred stock-class 1) |
81,400 | shares | ||
(preferred stock-class 2) |
15,000 | shares |
2. | Number of treasury stocks outstanding as of: |
September 30, 2004: |
2,442 | shares | ||
September 30, 2003: |
1,711 | shares | ||
March 31, 2004: |
2,061 | shares |
2. Earning projections for the fiscal year ending March 31, 2005
(in millions of yen) | ||||
Operating income |
Ordinary profit |
Net income | ||
227,000 |
206,000 | 206,000 |
(in yen) | ||||
For the six months ending March 31, 2005 |
For the year ending March 31, 2005 | |||
Dividends per share: Common stock |
6,000 | 6,000 | ||
Preferred stockclass 1 |
41,250 | 82,500 |
Projected net income per common share for the year ending March 31, 2005 (yen): 30,838.19
- 39 -
(Reference)
Formulas for computing ratios for the six months ended September 30, 2004 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, 2005 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 × 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 and/or the group as a whole (the forward-looking statements). The forward-looking statements are not historical facts and include, reflect or are otherwise based upon, among other things, the companys current estimations, projections, views, policies, business strategies, targets, expectations, assumptions and evaluations with respect to general economic conditions, its results of operations, its financial condition, its 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 companys management will strive to achieve through the successful implementation of the companys 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 companys latest annual report and other disclosures.
- 40 -
Mitsubishi Tokyo Financial Group, Inc.
Non-Consolidated Balance Sheets
As of September 30, |
As of March 31, |
|||||||||||||||||
(in millions of yen) |
2003 |
2004 |
2004 |
|||||||||||||||
Assets: |
||||||||||||||||||
Current assets: |
||||||||||||||||||
Cash and bank deposits |
41,721 | 36,867 | 57,571 | |||||||||||||||
Accounts receivable |
29,844 | 41,449 | 51,315 | |||||||||||||||
Other |
400 | 961 | 36 | |||||||||||||||
Total current assets |
71,966 | 1.7 | % | 79,278 | 1.6 | % | 108,923 | 2.5 | % | |||||||||
Fixed assets: |
||||||||||||||||||
Premises and equipment |
339 | 466 | 308 | |||||||||||||||
Intangible assets |
529 | 484 | 554 | |||||||||||||||
Investments and other assets |
4,210,912 | 5,048,746 | 4,210,914 | |||||||||||||||
Investments in subsidiaries |
4,210,347 | 4,348,217 | 4,210,347 | |||||||||||||||
Investments securities |
| 700,000 | | |||||||||||||||
Other |
564 | 528 | 566 | |||||||||||||||
Total fixed assets |
4,211,781 | 98.3 | % | 5,049,697 | 98.4 | % | 4,211,778 | 97.5 | % | |||||||||
Deferred charges |
859 | 0.0 | % | 515 | 0.0 | % | 687 | 0.0 | % | |||||||||
Total assets |
4,284,607 | 100.0 | % | 5,129,492 | 100.0 | % | 4,321,389 | 100.0 | % | |||||||||
Liabilities: |
||||||||||||||||||
Current liabilities: |
||||||||||||||||||
Short-term borrowings |
| 400,000 | | |||||||||||||||
Accounts payable |
21,873 | 5,576 | 38,703 | |||||||||||||||
Reserve |
73 | 137 | 74 | |||||||||||||||
Other |
174 | 739 | 64 | |||||||||||||||
Total current liabilities |
22,121 | 0.5 | % | 406,453 | 7.9 | % | 38,842 | 0.9 | % | |||||||||
Long-term liabilities: |
||||||||||||||||||
Long-term liabilities |
| 300,000 | | |||||||||||||||
Total long-term liabilities |
| | 300,000 | 5.9 | % | | | |||||||||||
Total liabilities |
22,121 | 0.5 | % | 706,453 | 13.8 | % | 38,842 | 0.9 | % | |||||||||
Shareholders equity: |
||||||||||||||||||
Capital stock |
1,258,052 | 29.3 | % | 1,258,052 | 24.5 | % | 1,258,052 | 29.1 | % | |||||||||
Capital surplus: |
||||||||||||||||||
Legal capital surplus |
2,350,244 | 2,350,244 | 2,350,244 | |||||||||||||||
Other capital surplus |
599,960 | 599,968 | 599,962 | |||||||||||||||
Total capital surplus |
2,950,205 | 68.9 | % | 2,950,212 | 57.5 | % | 2,950,207 | 68.3 | % | |||||||||
Retained earnings: |
||||||||||||||||||
Unappropriated |
55,519 | 216,754 | 75,876 | |||||||||||||||
Total retained earnings |
55,519 | 1.3 | % | 216,754 | 4.2 | % | 75,876 | 1.7 | % | |||||||||
Less treasury stock |
(1,291 | ) | (0.0 | )% | (1,980 | ) | (0.0 | )% | (1,589 | ) | (0.0 | )% | ||||||
Total shareholders equity |
4,262,486 | 99.5 | % | 4,423,039 | 86.2 | % | 4,282,547 | 99.1 | % | |||||||||
Total liabilities and shareholders equity |
4,284,607 | 100.0 | % | 5,129,492 | 100.0 | % | 4,321,389 | 100.0 | % | |||||||||
See Notes to Non-Consolidated Financial Statements.
- 41 -
Mitsubishi Tokyo Financial Group, Inc.
Non-Consolidated Statements of Income
For the six months ended September 30, |
For the year ended March 31, 2004 |
|||||||||||||||||
(in millions of yen) |
2003 |
2004 |
||||||||||||||||
Operating income |
42,493 | 100.0 | % | 187,924 | 100.0 | % | 69,321 | 100.0 | % | |||||||||
Operating expenses |
2,064 | 4.9 | % | 3,754 | 2.0 | % | 4,585 | 6.6 | % | |||||||||
Operating profit |
40,429 | 95.1 | % | 184,170 | 98.0 | % | 64,735 | 93.4 | % | |||||||||
Non-operating income |
12 | 0.0 | % | 36 | 0.0 | % | 35 | 0.0 | % | |||||||||
Non-operating expenses |
172 | 0.4 | % | 943 | 0.5 | % | 344 | 0.5 | % | |||||||||
Ordinary profit |
40,269 | 94.7 | % | 183,263 | 97.5 | % | 64,426 | 92.9 | % | |||||||||
Income before income taxes |
40,269 | 94.7 | % | 183,263 | 97.5 | % | 64,426 | 92.9 | % | |||||||||
Income taxes-current |
(75 | ) | (54 | ) | (84 | ) | ||||||||||||
Income taxes-deferred |
40 | 116 | 36 | |||||||||||||||
Total income taxes |
(35 | ) | (0.1 | )% | 62 | 0.0 | % | (47 | ) | (0.1 | )% | |||||||
Net income |
40,304 | 94.8 | % | 183,200 | 97.5 | % | 64,474 | 93.0 | % | |||||||||
Unappropriated retained earnings brought forward |
15,215 | 33,553 | 15,215 | |||||||||||||||
Interim cash dividends |
| | 3,812 | |||||||||||||||
Unappropriated retained earnings at end of (interim) fiscal year |
55,519 | 216,754 | 75,876 | |||||||||||||||
See Notes to Non-Consolidated Financial Statements.
- 42 -
Notes to the Non-Consolidated Financial Statements for the six months ended September 30, 2004
The accompanying Non-Consolidated Financial Statements are compiled as required by the Securities and Exchange Law of Japan and in conformity with accounting principles generally accepted in Japan, which are different in certain respects as compared to the application and disclosure requirements of International Accounting Standards. 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, affiliates and securities not stated at market value 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 |
10 years to 50 years | |
Equipment and furniture |
4 years to 15 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 |
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.
A note related to the Non-Consolidated Balance Sheet as of September 30, 2004 is as follows:
1. |
Accumulated depreciation on premises and equipment | ¥ | 277 million | ||
2. |
MTFG indemnifies the Bankers Association of Deutschland for the deposit liability of the German branches of Bank of Tokyo Mitsubishi pursuant to regulation of the Deposit Insurance Corporation of Deutschland. | ¥ | 98,916 million |
A note related to the Non-Consolidated Statement of Income for the six months ended September 30, 2004 is as follows:
1. |
Principal item in Non-operating expenses is as follows: | ||||
Interest on borrowed money |
¥ | 771 million | |||
2. |
Depreciation expense | ||||
Depreciation expense for premises and equipment |
¥ | 62 million | |||
Amortization expense for intangible assets |
¥ | 76 million |
- 43 -
A note related to securities is as follows:
Investments in subsidiaries and affiliates stated at market value
Balance sheet amount |
Market value |
Difference | |||||||
Investments in affiliates |
¥ | 137,870 million | ¥ | 141,394 million | ¥ | 3,524 million |
Note: Fair value is based on market value as of September 30, 2004.
Fair value is not readily determinable for Investments in subsidiaries.
Additional information
1. | Impairment of Fixed Assets |
Effective April 1, 2003, the MTFG adopted Accounting Standards for Impairment of Fixed Assets issued by the Business Accounting Council on August 9, 2002 and Financial Accounting Standard Implementation Guidance No. 6, Implementation Guidance for Accounting Standard for Impairment of Fixed Assets issued by the Accounting Standards Board of Japan, ASBJ on October 31, 2003, because their early adoption in the fiscal year ended March 31, 2004 was permitted.
2. | Enterprise Taxes |
With the implementation of the Revision of the Local Tax Law (Legislation No.9, March, 2003) on March 31, 2003, a part of tax basis of enterprise taxes was changed to amount of value-added and amount of capital in the fiscal year started April 1, 2004. MTFG has presented enterprise taxes computed based on amount of value-added and amount of capital in operating expenses in the Statement of Operations based on Practical Treatment of Presentation in Income Statement for Enterprise Taxes through External Standards Taxation (February 13, 2004, ASBJ-Report of Practical Issues No.12).
- 44 -
Selected Interim Financial Information
under Japanese GAAP
For the Fiscal Year Ending March 31, 2005
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, 2005 | |||||
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*] | 13 | ||||
[Trust] | ||||||
9. Foreign Loans | [Total of the 2 Banks*] | 15 | ||||
10. Loans and Deposits | [Total of the 2 Banks*] | 16 | ||||
11. Domestic Deposits | [Total of the 2 Banks*] | 16 | ||||
12. Number of Employees | [Total of the 2 Banks*] | 16 | ||||
13. Number of Offices | [Total of the 2 Banks*] | 16 | ||||
14. Status of Deferred Tax Assets | [Total of the 2 Banks*] | 17 | ||||
15. Employees Retirement Benefits | [Consolidated] | 19 | ||||
16. Earning Projections for the Fiscal Year Ending March 31, 2005 | [Consolidated] | 20 | ||||
[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, 2005
1. Financial Results
(in millions of yen) |
|||||||||
Six months ended September 30, 2003 (A) |
Six months ended September 30, 2004 (B) |
Increase/ (Decrease) |
|||||||
(B) (A) |
|||||||||
Gross profits |
898,929 | 885,955 | (12,973 | ) | |||||
Net interest income |
533,116 | 506,567 | (26,549 | ) | |||||
Trust fees |
36,452 | 46,115 | 9,662 | ||||||
Credit costs for trust accounts (1) |
(8,432 | ) | (2,336 | ) | 6,096 | ||||
Net fees and commissions |
195,801 | 241,318 | 45,517 | ||||||
Net trading profits |
72,040 | 50,246 | (21,793 | ) | |||||
Net other business income |
61,518 | 41,707 | (19,810 | ) | |||||
Net gains (losses) on debt securities |
(2,701 | ) | 27,836 | 30,538 | |||||
General and administrative expenses |
489,543 | 499,388 | 9,845 | ||||||
Net business profits before credit costs for trust accounts and provision for formula allowance for loan losses |
417,818 | 388,903 | (28,915 | ) | |||||
Provision for formula allowance for loan losses (2) |
| | | ||||||
Net business profits* |
409,386 | 386,566 | (22,819 | ) | |||||
Net non-recurring losses |
(135,953 | ) | (76,260 | ) | 59,693 | ||||
Credit related costs (3) |
(91,889 | ) | (65,402 | ) | 26,487 | ||||
Losses on loan charge-offs |
(49,840 | ) | (28,597 | ) | 21,242 | ||||
Provision for specific allowance for loan losses |
| | | ||||||
Losses on sales of loans to the Resolution and Collection Corporation |
(13,878 | ) | (852 | ) | 13,026 | ||||
Provision for allowance for loans to specific foreign borrowers |
| | | ||||||
Other credit related costs |
(28,171 | ) | (35,953 | ) | (7,781 | ) | |||
Net losses on equity securities |
(9,070 | ) | (4,728 | ) | 4,342 | ||||
Gains on sales of equity securities |
48,009 | 42,943 | (5,065 | ) | |||||
Losses on sales of equity securities |
(53,429 | ) | (14,121 | ) | 39,307 | ||||
Losses on write down of equity securities |
(3,649 | ) | (33,549 | ) | (29,899 | ) | |||
Equity in profit of affiliates |
1,232 | 7,573 | 6,340 | ||||||
Other |
(36,226 | ) | (13,702 | ) | 22,523 | ||||
Ordinary profit |
273,432 | 310,306 | 36,874 | ||||||
Net special gains |
234,901 | 17,565 | (217,336 | ) | |||||
Gain on loans charged-off (4) |
15,348 | 12,358 | (2,990 | ) | |||||
Reversal of allowance for loan losses (5) |
163,548 | 11,340 | (152,208 | ) | |||||
Losses on impairment of fixed assets |
| (3,978 | ) | (3,978 | ) | ||||
Income before income taxes and others |
508,334 | 327,872 | (180,461 | ) | |||||
Income taxes-current |
25,503 | 39,605 | 14,101 | ||||||
Income taxes-deferred |
159,516 | 95,687 | (63,829 | ) | |||||
Minority interest |
21,436 | 20,901 | (534 | ) | |||||
Net income |
301,877 | 171,678 | (130,199 | ) | |||||
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)+(5) |
63,226 | (56,398 | ) | (119,625 | ) | ||||
Total credit costs + Gain on loans charged-off (1)+(2)+(3)+(4)+(5) |
78,575 | (44,040 | ) | (122,615 | ) | ||||
Number of consolidated subsidiaries |
176 | 154 | (22 | ) | |||||
Number of affiliated companies accounted for by the equity method |
31 | 25 | (6 | ) |
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 held to maturity |
Amortized cost | |
Securities available for sale |
Market value (valuation differences are included in 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, 2004 |
As of September 30, 2003 |
As of March 31, 2004 | |||||||||||||||||||||||
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 |
15,332 | 4,957 | 6,328 | 15,544 | 212 | 10,375 | 10,378 | 3 | 9,004 | 10,228 | 1,224 | ||||||||||||||
Securities available for sale |
705,702 | 391,102 | (241,812 | ) | 889,757 | 184,054 | 314,599 | 677,703 | 363,104 | 947,514 | 1,114,592 | 167,078 | |||||||||||||
Domestic equity securities |
634,632 | 380,607 | (150,696 | ) | 744,276 | 109,644 | 254,024 | 494,697 | 240,672 | 785,328 | 891,328 | 105,999 | |||||||||||||
Domestic bonds |
24,116 | 58,687 | 20,721 | 45,435 | 21,318 | (34,570 | ) | 28,869 | 63,440 | 3,394 | 40,723 | 37,328 | |||||||||||||
Other |
46,952 | (48,192 | ) | (111,837 | ) | 100,044 | 53,091 | 95,145 | 154,136 | 58,991 | 158,790 | 182,541 | 23,750 | ||||||||||||
Total |
721,034 | 396,059 | (235,484 | ) | 905,301 | 184,267 | 324,974 | 688,082 | 363,107 | 956,518 | 1,124,821 | 168,302 | |||||||||||||
Domestic equity securities |
634,632 | 380,607 | (150,696 | ) | 744,276 | 109,644 | 254,024 | 494,697 | 240,672 | 785,328 | 891,328 | 105,999 | |||||||||||||
Domestic bonds |
37,707 | 65,869 | 27,928 | 59,025 | 21,318 | (28,161 | ) | 35,281 | 63,443 | 9,778 | 48,325 | 38,546 | |||||||||||||
Other |
48,694 | (50,416 | ) | (112,716 | ) | 101,999 | 53,304 | 99,111 | 158,103 | 58,991 | 161,411 | 185,167 | 23,755 |
(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, 2004 | ||||
Trust Assets at interim-period end |
Market Value |
Valuation Gains | ||
228,883 |
234,699 | 5,815 |
Note : A fair value is given where a fair value can be calculated for a market-value equivalent.
B. Valuation Gains of Derivative Transaction : 4,444 millions of yen
Loan Trusts
A. Market Value of Securities
(in millions of yen) | ||||
September 30, 2004 | ||||
Trust Assets at interim-period end |
Market Value |
Valuation Gains | ||
8,764 |
9,384 | 620 |
Note : A fair value is given where a fair value can be calculated for a market-value equivalent.
B. Valuation Gains of Derivative Transaction : 10,155 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, 2004 (A) (Preliminary basis) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||||||
(A) (B) |
(A) (C) |
||||||||||||||||||
(1) |
Risk-adjusted capital ratio | 10.92 | % | (1.52 | )% | (2.02 | )% | 12.44 | % | 12.95 | % | ||||||||
(2) |
Tier 1 capital | 4,025.9 | 342.1 | 166.4 | 3,683.7 | 3,859.4 | |||||||||||||
(3) |
Tier 2 capital includable as qualifying capital | 2,818.0 | (309.1 | ) | (339.8 | ) | 3,127.2 | 3,157.8 | |||||||||||
i) |
The amount of unrealized gains on investment securities, includable as qualifying capital | 319.2 | 176.7 | (108.8 | ) | 142.4 | 428.0 | ||||||||||||
ii) |
The amount of land revaluation excess includable as qualifying capital | 128.3 | (12.4 | ) | (5.2 | ) | 140.8 | 133.6 | |||||||||||
iii) |
Subordinated debt | 2,004.4 | (157.7 | ) | 10.4 | 2,162.1 | 1,993.9 | ||||||||||||
(4) |
Tier 3 capital includable as qualifying capital | | (29.9 | ) | (30.0 | ) | 29.9 | 30.0 | |||||||||||
(5) |
Deductions from total qualifying capital | 894.3 | 843.2 | 839.7 | 51.0 | 54.5 | |||||||||||||
(6) |
Total qualifying capital (2)+(3)+(4)-(5) | 5,949.6 | (840.0 | ) | (1,043.0 | ) | 6,789.7 | 6,992.7 | |||||||||||
(7) |
Risk-adjusted assets | 54,457.1 | (86.2 | ) | 460.3 | 54,543.3 | 53,996.7 |
4. Return on Equity
(%) | |||||||
Six months ended September 30, 2004 (A) |
Increase/ (Decrease) |
Six months ended September 30, | |||||
(A) (B) |
|||||||
ROE * |
9.86 | (10.17 | ) | 20.04 |
Note: * ROE is computed as follows:
(Net income Dividends on preferred stocks) × 2 |
× 100 | |
{(Shareholders equity at beginning of period - Number of preferred stocks at beginning of period × 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 × 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 September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, | ||||||||
(A)(B) |
(A)(C) |
|||||||||||
Loans to customers in bankruptcy |
33,746 | (40,799 | ) | (12,392 | ) | 74,545 | 46,138 | |||||
Past due loans |
1,173,309 | 239,839 | 479,831 | 933,469 | 693,477 | |||||||
Accruing loans contractually past due 3 months or more |
11,898 | (5,784 | ) | (362 | ) | 17,682 | 12,260 | |||||
Restructured loans |
325,637 | (561,703 | ) | (376,010 | ) | 887,341 | 701,648 | |||||
Total |
1,544,591 | (368,448 | ) | 91,066 | 1,913,039 | 1,453,524 | ||||||
Amount of direct reduction |
482,508 | (122,864 | ) | (45,830 | ) | 605,373 | 528,339 | |||||
Loans and bills discounted |
47,420,986 | 1,000,284 | 830,854 | 46,420,701 | 46,590,131 |
Percentage of total loans and bills discounted
Loans to customers in bankruptcy |
0.07 | % | (0.08 | )% | (0.02 | )% | 0.16 | % | 0.09 | % | |||||
Past due loans |
2.47 | % | 0.46 | % | 0.98 | % | 2.01 | % | 1.48 | % | |||||
Accruing loans contractually past due 3 months or more |
0.02 | % | (0.01 | )% | (0.00 | )% | 0.03 | % | 0.02 | % | |||||
Restructured loans |
0.68 | % | (1.22 | )% | (0.81 | )% | 1.91 | % | 1.50 | % | |||||
Total |
3.25 | % | (0.86 | )% | 0.13 | % | 4.12 | % | 3.11 | % | |||||
[Trust accounts] | |||||||||||||||
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, |
|||||||||||
(A)(B) |
(A)(C) |
||||||||||||||
Loans to customers in bankruptcy |
1,386 | (1,790 | ) | (201 | ) | 3,177 | 1,588 | ||||||||
Past due loans |
664 | (846 | ) | (627 | ) | 1,511 | 1,292 | ||||||||
Accruing loans contractually past due 3 months or more |
837 | 236 | 466 | 601 | 370 | ||||||||||
Restructured loans |
24,944 | (4,800 | ) | (7,623 | ) | 29,745 | 32,568 | ||||||||
Total |
27,833 | (7,201 | ) | (7,985 | ) | 35,035 | 35,819 | ||||||||
Loans and bills discounted |
551,236 | (211,816 | ) | (70,739 | ) | 763,053 | 621,976 | ||||||||
[Consolidated and Trust accounts] | |||||||||||||||
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, |
|||||||||||
(A)(B) |
(A)(C) |
||||||||||||||
Loans to customers in bankruptcy |
35,132 | (42,590 | ) | (12,594 | ) | 77,723 | 47,727 | ||||||||
Past due loans |
1,173,974 | 238,993 | 479,204 | 934,980 | 694,769 | ||||||||||
Accruing loans contractually past due 3 months or more |
12,735 | (5,548 | ) | 104 | 18,284 | 12,631 | |||||||||
Restructured loans |
350,582 | (566,504 | ) | (383,633 | ) | 917,086 | 734,216 | ||||||||
Total |
1,572,425 | (375,649 | ) | 83,080 | 1,948,074 | 1,489,344 | |||||||||
Loans and bills discounted |
47,972,223 | 788,467 | 760,114 | 47,183,755 | 47,212,108 | ||||||||||
4
Mitsubishi Tokyo Financial Group, Inc.
2. | Classification of Risk-Monitored Loans |
Classification by geographic area
[Consolidated]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic* |
1,256,864 | (374,480 | ) | 130,785 | 1,631,344 | 1,126,078 | ||||||
Overseas* |
287,727 | 6,032 | (39,719 | ) | 281,694 | 327,446 | ||||||
Asia |
34,020 | (2,619 | ) | 7,363 | 36,639 | 26,656 | ||||||
Indonesia |
3,526 | (6,900 | ) | (1,052 | ) | 10,426 | 4,578 | |||||
Thailand |
2,724 | (5,934 | ) | (7,838 | ) | 8,659 | 10,562 | |||||
Hong Kong |
22,148 | 14,873 | 17,431 | 7,274 | 4,717 | |||||||
Other |
5,621 | (4,657 | ) | (1,176 | ) | 10,279 | 6,798 | |||||
United States of America |
192,908 | 30,153 | (37,611 | ) | 162,754 | 230,520 | ||||||
Other |
60,798 | (21,501 | ) | (9,471 | ) | 82,299 | 70,269 | |||||
Total |
1,544,591 | (368,448 | ) | 91,066 | 1,913,039 | 1,453,524 | ||||||
Note:* Domestic and Overseas are classified by domicile of borrowers.
[Trust accounts]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic |
27,833 | (7,201 | ) | (7,985 | ) | 35,035 | 35,819 |
Classification by type of industry of borrowers
[Consolidated]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic* |
1,256,864 | (374,480 | ) | 130,785 | 1,631,344 | 1,126,078 | ||||||
Manufacturing |
180,823 | (3,357 | ) | (6,587 | ) | 184,181 | 187,410 | |||||
Construction |
54,200 | (160,938 | ) | (28,319 | ) | 215,138 | 82,520 | |||||
Wholesale and Retail |
338,767 | (5,507 | ) | 109,572 | 344,275 | 229,195 | ||||||
Banks and other financial institutions |
66,247 | 53,820 | 44,723 | 12,426 | 21,523 | |||||||
Real estate |
373,874 | (11,759 | ) | 60,901 | 385,634 | 312,973 | ||||||
Services |
123,772 | (58,781 | ) | (23,720 | ) | 182,554 | 147,493 | |||||
Other industries |
35,528 | (43,718 | ) | (19,264 | ) | 79,247 | 54,793 | |||||
Consumer |
83,648 | (144,236 | ) | (6,520 | ) | 227,885 | 90,168 | |||||
Overseas* |
287,727 | 6,032 | (39,719 | ) | 281,694 | 327,446 | ||||||
Banks and other financial institutions |
98,375 | 96,287 | 14,646 | 2,087 | 83,728 | |||||||
Commercial and industrial |
166,869 | (106,516 | ) | (43,707 | ) | 273,385 | 210,576 | |||||
Other |
22,482 | 16,261 | (10,658 | ) | 6,221 | 33,141 | ||||||
Total |
1,544,591 | (368,448 | ) | 91,066 | 1,913,039 | 1,453,524 | ||||||
Note:* Domestic and Overseas are classified by domicile of borrowers.
[Trust accounts]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic |
27,833 | (7,201 | ) | (7,985 | ) | 35,035 | 35,819 | |||||
Manufacturing |
435 | (1,310 | ) | (4,030 | ) | 1,746 | 4,465 | |||||
Construction |
60 | (1,175 | ) | (3 | ) | 1,235 | 63 | |||||
Wholesale and Retail |
1,710 | (323 | ) | (487 | ) | 2,033 | 2,197 | |||||
Banks and other financial institutions |
| | | | | |||||||
Real estate |
4,730 | (1,017 | ) | (1,163 | ) | 5,748 | 5,894 | |||||
Services |
694 | (600 | ) | (363 | ) | 1,294 | 1,057 | |||||
Other industries |
16,868 | (1,208 | ) | (104 | ) | 18,076 | 16,972 | |||||
Consumer |
3,334 | (1,564 | ) | (1,834 | ) | 4,899 | 5,168 | |||||
Total |
27,833 | (7,201 | ) | (7,985 | ) | 35,035 | 35,819 | |||||
5
Mitsubishi Tokyo Financial Group, Inc.
3. | Allowance for Loan Losses |
[Consolidated]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Allowance for loan losses |
801,804 | (241,494 | ) | (30,834 | ) | 1,043,299 | 832,638 | |||||
Formula allowance for loan losses |
366,078 | (317,877 | ) | (236,185 | ) | 683,955 | 602,263 | |||||
Specific allowance for loan losses |
430,307 | 80,165 | 206,204 | 350,141 | 224,102 | |||||||
Allowance for loans to specific foreign borrowers |
5,419 | (3,783 | ) | (853 | ) | 9,202 | 6,272 |
[Trust accounts]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Special internal reserves |
5,483 | (1,799 | ) | (651 | ) | 7,283 | 6,135 | |||||
Allowance for bad debts |
613 | (313 | ) | (186 | ) | 926 | 799 |
4. | Coverage Ratio against Risk-Monitored Loans |
[Consolidated]
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Allowance for loan losses (I) |
801,804 | (241,494 | ) | (30,834 | ) | 1,043,299 | 832,638 | ||||||||
Risk-monitored loans (II) |
1,544,591 | (368,448 | ) | 91,066 | 1,913,039 | 1,453,524 | |||||||||
Coverage ratio (I)/(II) |
51.91 | % | (2.62 | )% | (5.37 | )% | 54.53 | % | 57.28 | % |
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 September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Claims to bankrupt and substantially bankrupt debtors |
107,873 | (74,447 | ) | (32,554 | ) | 182,320 | 140,428 | |||||
Claims under high risk |
1,168,029 | 422,282 | 626,719 | 745,746 | 541,309 | |||||||
Claims under close observation |
356,623 | (572,604 | ) | (380,727 | ) | 929,227 | 737,350 | |||||
Total (1) |
1,632,526 | (224,768 | ) | 213,438 | 1,857,295 | 1,419,088 | ||||||
Normal claims |
48,097,849 | 1,673,126 | 1,210,414 | 46,424,722 | 46,887,434 | |||||||
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 September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Secured coverage amount (2) |
1,173,369 | (220,448 | ) | 179,696 | 1,393,817 | 993,672 | |||||||||
Allowance for loan losses |
431,934 | (29,973 | ) | 111,574 | 461,908 | 320,359 | |||||||||
Reserve for financial assistance to specific borrowers |
| | | | | ||||||||||
Collateral, guarantees, etc. |
741,434 | (190,474 | ) | 68,122 | 931,909 | 673,312 | |||||||||
Secured coverage ratio (2)/(1) |
71.87 | % | (3.17 | )% | 1.85 | % | 75.04 | % | 70.02 | % |
Secured Coverage of Each Category of Disclosed Claims under the FRL
[Banking and Trust accounts: Total of the 2 Banks]
(in millions of yen) |
|||||||||||||||||
Category |
Disclosed amount (A) |
Allowance for loan losses (B) |
Reserve for financial support to specific borrowers (C) |
Collectable amount by collateralized and guaranteed loans (D) |
Coverage ratio [(B)+(C)] / [(A)-(D)] |
Coverage ratio [(B)+(C)+(D)] /(A) |
|||||||||||
Claims to bankrupt and substantially bankrupt debtors |
107,873 [140,428 |
] |
11,926 [15,770 |
] |
|
95,947 [124,654 |
] |
100.00 [99.97 |
% ]% |
100.00 [99.99 |
% ]% | ||||||
Claims under high risk |
1,168,029 [541,309 |
] |
376,083 [165,737 |
] |
|
441,134 [286,271 |
] |
51.73 [64.98 |
% ]% |
69.96 [83.50 |
% ]% | ||||||
Claims under close observation |
356,623 [737,350 |
] |
43,924 [138,852 |
] |
|
204,352 [262,386 |
] |
28.84 [29.23 |
% ]% |
69.61 [54.41 |
% ]% | ||||||
Sub total (1) |
1,632,526 [1,419,088 |
] |
431,934 [320,359 |
] |
|
741,434 [673,312 |
] |
48.47 [42.95 |
% ]% |
71.87 [70.02 |
% ]% | ||||||
Normal claims |
48,097,849 [46,887,434 |
] |
|||||||||||||||
Total (2) |
49,730,375 [48,306,522 |
] |
|||||||||||||||
Sub total (1) / Total (2) |
3.28 [2.93 |
% ]% |
|||||||||||||||
Note: The upper figures are as of September 30, 2004. The lower figures with bracket are as of March 31, 2004.
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 September 30, 2000 |
As of March 31, 2001 |
As of September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
|||||||||||||
Claims to bankrupt and substantially bankrupt debtors |
513.6 | 280.6 | 274.1 | 213.9 | 253.7 | 68.7 | 34.9 | 23.0 | 11.4 | (11.5 | ) | |||||||||||
Claims under high risk |
1,580.2 | 1,400.4 | 1,141.3 | 840.1 | 378.5 | 37.4 | 33.2 | 8.7 | 7.7 | (1.0 | ) | |||||||||||
Total |
2,093.8 | 1,681.0 | 1,415.4 | 1,054.1 | 632.2 | 106.2 | 68.2 | 31.8 | 19.1 | (A) | (12.6 | )(B) | ||||||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
0.0 | ||
Re-constructive disposition |
0.1 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
0.1 | ||
Charge-off |
8.3 | ||
Other |
3.9 | ||
Collection of claims |
3.9 | ||
Improvements in financial status |
| ||
Total |
12.6 | (B) | |
Above (A) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
4.5 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
3.6 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
0.6 | |
Total |
8.8 | |
(2) | Assets newly categorized as problem assets during second half of fiscal 2000 based on the FRL |
(in billions of yen) |
||||||||||||||||||||
As of March 31, 2001 |
As of September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004(b) |
(b) (a) |
||||||||||||
Claims to bankrupt and substantially bankrupt debtors |
117.9 | 103.8 | 99.2 | 46.9 | 28.6 | 27.1 | 17.6 | 15.4 | (2.1 | ) | ||||||||||
Claims under high risk |
769.0 | 693.0 | 538.9 | 346.0 | 79.4 | 55.7 | 30.9 | 25.6 | (5.2 | ) | ||||||||||
Total |
887.0 | 796.8 | 638.1 | 393.0 | 108.0 | 82.8 | 48.5 | 41.1 | (C) | (7.3 | )(D) | |||||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
| ||
Re-constructive disposition |
0.0 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
0.9 | ||
Charge-off |
0.7 | ||
Other |
5.6 | ||
Collection of claims |
2.6 | ||
Improvements in financial status |
2.9 | ||
Total |
7.3 | (D) | |
Above (C) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
1.4 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
13.8 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
15.3 | |
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 September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) - (a) |
|||||||||||
Claims to bankrupt and substantially bankrupt debtors |
30.2 | 42.1 | 27.9 | 19.3 | 12.3 | 7.3 | 6.1 | (1.1 | ) | |||||||||
Claims under high risk |
337.1 | 170.3 | 101.6 | 53.7 | 31.7 | 19.4 | 14.9 | (4.4 | ) | |||||||||
Total |
367.3 | 212.5 | 129.6 | 73.0 | 44.0 | 26.8 | 21.1 | (E) | (5.6 | )(F) | ||||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
(0.0 | ) | |
Re-constructive disposition |
0.0 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
1.2 | ||
Charge-off |
0.4 | ||
Other |
3.9 | ||
Collection of claims |
2.5 | ||
Improvements in financial status |
1.4 | ||
Total |
5.6 | (F) | |
Above (E) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.6 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
5.6 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
6.2 | |
(4) | Assets newly categorized as problem assets during second half of fiscal 2001 based on the FRL |
(in billions of yen) |
||||||||||||||||
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
||||||||||
Claims to bankrupt and substantially bankrupt debtors |
63.6 | 44.4 | 22.3 | 17.1 | 6.8 | 6.0 | (0.7 | ) | ||||||||
Claims under high risk |
384.0 | 190.9 | 113.7 | 55.2 | 32.0 | 26.3 | (5.6 | ) | ||||||||
Total |
447.7 | 235.3 | 136.0 | 72.3 | 38.9 | 32.4 | (G) | (6.4 | )(H) | |||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
0.2 | ||
Re-constructive disposition |
0.0 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
0.0 | ||
Charge-off |
0.4 | ||
Other |
5.6 | ||
Collection of claims |
2.2 | ||
Improvements in financial status |
3.3 | ||
Total |
6.4 | (H) | |
Above (G) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.9 | |
Quasi-legal liquidation |
0.2 | |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
5.1 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
6.2 | |
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 September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
|||||||||
Claims to bankrupt and substantially bankrupt debtors |
28.9 | 35.2 | 30.1 | 20.4 | 15.0 | (5.3 | ) | |||||||
Claims under high risk |
369.4 | 179.5 | 98.5 | 58.5 | 44.9 | (13.6 | ) | |||||||
Total |
398.4 | 214.7 | 128.7 | 78.9 | 60.0 | (I) | (18.9 | )(J) | ||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
0.0 | ||
Re-constructive disposition |
1.1 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
3.8 | ||
Charge-off |
0.8 | ||
Other |
13.1 | ||
Collection of claims |
5.9 | ||
Improvements in financial status |
7.1 | ||
Total |
18.9 | (J) | |
Above (I) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
9.3 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
4.1 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
13.4 | |
(6) | Assets newly categorized as problem assets during second half of fiscal 2002 based on the FRL |
(in billions of yen) |
||||||||||||
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
||||||||
Claims to bankrupt and substantially bankrupt debtors |
52.1 | 46.0 | 41.2 | 35.5 | (5.6 | ) | ||||||
Claims under high risk |
567.4 | 320.5 | 177.4 | 71.1 | (106.2 | ) | ||||||
Total |
619.6 | 366.5 | 218.6 | 106.7 | (K) | (111.8 | )(L) | |||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
0.4 | ||
Re-constructive disposition |
(0.0 | ) | |
Improvements in financial status due to re-constructive disposition |
23.7 | ||
Loan sales to secondary market |
2.0 | ||
Charge-off |
2.2 | ||
Other |
83.5 | ||
Collection of claims |
27.0 | ||
Improvements in financial status |
56.5 | ||
Total |
111.8 | (L) | |
Above (K) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
6.1 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
8.3 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
14.4 | |
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 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
|||||||
Claims to bankrupt and substantially bankrupt debtors |
14.4 | 9.1 | 6.0 | (3.1 | ) | |||||
Claims under high risk |
150.7 | 94.1 | 60.8 | (33.3 | ) | |||||
Total |
165.1 | 103.3 | 66.9 | (M) | (36.4 | )(N) | ||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
0.1 | ||
Re-constructive disposition |
0.5 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
2.2 | ||
Charge-off |
2.8 | ||
Other |
30.5 | ||
Collection of claims |
15.0 | ||
Improvements in financial status |
15.5 | ||
Total |
36.4 | (N) | |
Above (M) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
1.5 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
4.3 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
5.9 | |
(8) | Assets newly categorized as problem assets during second half of fiscal 2003 based on the FRL |
(in billions of yen) |
||||||||
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
||||||
Claims to bankrupt and substantially bankrupt debtors |
14.7 | 6.9 | (7.7 | ) | ||||
Claims under high risk |
120.0 | 59.5 | (60.5 | ) | ||||
Total |
134.7 | 66.4 | (O) | (68.3 | )(P) | |||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
1.2 | ||
Re-constructive disposition |
5.4 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
19.3 | ||
Charge-off |
2.7 | ||
Other |
39.5 | ||
Collection of claims |
32.7 | ||
Improvements in financial status |
6.7 | ||
Total |
68.3 | (P) | |
Above (O) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
2.7 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
3.0 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
5.7 | |
11
Mitsubishi Tokyo Financial Group, Inc.
(9) | Assets newly categorized as problem assets during first half of fiscal 2004 based on the FRL |
(in billions of yen) |
|||
As of September 30, |
|||
Claims to bankrupt and substantially bankrupt debtors |
5.0 | ||
Claims under high risk |
856.7 | ||
Total |
861.8 | (Q) | |
Above (Q) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
2.3 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
2.6 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
4.9 | |
(10) | Historical trend of problem assets based on the FRL |
(in billions of yen) |
|||||||||||||||||||||
As of September 30, 2000 |
As of March 31, 2001 |
As of September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
||||||||||||
Claims to bankrupt and substantially bankrupt debtors |
513.6 | 398.6 | 408.1 | 419.0 | 402.1 | 226.4 | 182.3 | 140.4 | 107.8 | (32.5 | ) | ||||||||||
Claims under high risk |
1,580.2 | 2,169.5 | 2,171.4 | 1,933.5 | 1,386.6 | 1,031.3 | 745.7 | 541.3 | 1,168.0 | 626.7 | |||||||||||
Total |
2,093.8 | 2,568.1 | 2,579.6 | 2,352.6 | 1,788.7 | 1,257.8 | 928.0 | 681.7 | 1,275.9 | 594.1 | |||||||||||
12
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 September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Domestic offices (excluding loans booked at offshore markets) |
40,121,843 | 2,205,807 | 1,159,980 | 37,916,036 | 38,961,862 | ||||||||||
Manufacturing |
5,187,273 | (175,136 | ) | (116,939 | ) | 5,362,409 | 5,304,212 | ||||||||
Agriculture |
11,663 | (2,450 | ) | (697 | ) | 14,113 | 12,360 | ||||||||
Forestry |
4,784 | (447 | ) | (103 | ) | 5,231 | 4,887 | ||||||||
Fishery |
28,825 | 755 | 314 | 28,070 | 28,511 | ||||||||||
Mining |
33,227 | (7,424 | ) | (1,558 | ) | 40,651 | 34,785 | ||||||||
Construction |
933,027 | (195,473 | ) | (35,428 | ) | 1,128,500 | 968,455 | ||||||||
Utilities |
371,904 | (18,061 | ) | (11,300 | ) | 389,965 | 383,204 | ||||||||
Media and Communication |
1,353,290 | (137,493 | ) | (104,621 | ) | 1,490,783 | 1,457,911 | ||||||||
Wholesale and Retail |
4,437,568 | (405,330 | ) | (143,174 | ) | 4,842,898 | 4,580,742 | ||||||||
Banks and other financial institutions |
5,094,164 | 1,002,299 | 880,243 | 4,091,865 | 4,213,921 | ||||||||||
Real estate |
4,605,982 | 138,830 | 88,473 | 4,467,152 | 4,517,509 | ||||||||||
Services |
4,517,182 | (578,003 | ) | (80,469 | ) | 5,095,185 | 4,597,651 | ||||||||
Municipal government |
483,159 | (123,190 | ) | (127,597 | ) | 606,349 | 610,756 | ||||||||
Other industries |
13,059,787 | 2,706,929 | 812,840 | 10,352,857 | 12,246,946 | ||||||||||
Overseas offices and loans booked at offshore markets |
4,526,958 | (295,068 | ) | 98,991 | 4,822,026 | 4,427,966 | |||||||||
Total |
44,648,801 | 1,910,738 | 1,258,972 | 42,738,063 | 43,389,829 | ||||||||||
(2) Domestic consumer loans [Total of the 2 Banks] |
|||||||||||||||
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Total domestic consumer loans |
8,330,435 | 323,503 | 213,100 | 8,006,932 | 8,117,335 | ||||||||||
Housing loans |
7,894,458 | 380,030 | 238,979 | 7,514,428 | 7,655,479 | ||||||||||
Others |
435,977 | (56,526 | ) | (25,878 | ) | 492,503 | 461,855 | ||||||||
(3) Domestic loans to small and medium-sized companies [Total of the 2 Banks] |
| ||||||||||||||
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Domestic loans to small and medium-sized companies |
20,472,628 | 277,947 | 372,254 | 20,194,680 | 20,100,373 | ||||||||||
Percentage to total domestic loans |
51.02 | % | (2.23 | )% | (0.56 | )% | 53.26 | % | 51.58 | % |
13
Mitsubishi Tokyo Financial Group, Inc.
(4) | Loans by type of industry [Trust accounts] |
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Domestic offices (excluding loans booked at offshore markets) |
651,019 | (244,575 | ) | (84,853 | ) | 895,594 | 735,872 | ||||||||
Manufacturing |
34,053 | (15,372 | ) | (6,132 | ) | 49,425 | 40,185 | ||||||||
Agriculture |
| | | | | ||||||||||
Forestry |
19 | (7 | ) | (3 | ) | 26 | 22 | ||||||||
Fishery |
1,064 | (161 | ) | (64 | ) | 1,225 | 1,128 | ||||||||
Mining |
34 | (43 | ) | (27 | ) | 77 | 61 | ||||||||
Construction |
2,010 | (3,463 | ) | (234 | ) | 5,473 | 2,244 | ||||||||
Utilities |
79,905 | (37,566 | ) | (13,560 | ) | 117,471 | 93,465 | ||||||||
Media and Communication |
61,603 | (45,466 | ) | (14,384 | ) | 107,069 | 75,987 | ||||||||
Wholesale and Retail |
6,825 | (3,847 | ) | (1,533 | ) | 10,672 | 8,358 | ||||||||
Banks and other financial institutions |
42,296 | (57,931 | ) | (19,930 | ) | 100,227 | 62,226 | ||||||||
Real estate |
60,850 | (10,425 | ) | (4,220 | ) | 71,275 | 65,070 | ||||||||
Services |
24,635 | (22,020 | ) | (1,707 | ) | 46,655 | 26,342 | ||||||||
Municipal government |
34,777 | (2,046 | ) | (973 | ) | 36,823 | 35,750 | ||||||||
Other industries |
302,941 | (46,227 | ) | (22,085 | ) | 349,168 | 325,026 | ||||||||
Overseas offices and loans booked at offshore markets |
| | | | | ||||||||||
Total |
651,019 | (244,575 | ) | (84,853 | ) | 895,594 | 735,872 | ||||||||
(5) Domestic consumer loans [Trust accounts]
|
|||||||||||||||
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Total domestic consumer loans |
212,215 | (34,778 | ) | (15,874 | ) | 246,994 | 228,089 | ||||||||
Housing loans |
210,004 | (34,045 | ) | (15,553 | ) | 244,050 | 225,558 | ||||||||
Others |
2,210 | (733 | ) | (320 | ) | 2,943 | 2,530 | ||||||||
(6) Domestic loans to small and medium-sized companies [Trust accounts] |
| ||||||||||||||
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Domestic loans to small and medium-sized companies |
423,058 | (118,301 | ) | (49,389 | ) | 541,359 | 472,447 | ||||||||
Percentage to total domestic loans |
64.98 | % | 4.53 | % | 0.78 | % | 60.44 | % | 64.20 | % |
14
Mitsubishi Tokyo Financial Group, Inc.
9. | Foreign Loans |
(1) | Loans to specific foreign borrowers [Total of the 2 Banks] |
(in millions of yen except number of countries) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Loan to specific foreign borrowers |
36,540 | (10,924 | ) | (1,101 | ) | 47,464 | 37,641 | |||||
Number of countries |
7 | (3 | ) | (4 | ) | 10 | 11 |
(2) | Loans to Asian countries [Total of the 2 Banks] |
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Thailand |
218,968 | 22,317 | 27,881 | 196,650 | 191,087 | |||||||
Indonesia |
128,783 | 16,847 | 14,339 | 111,935 | 114,444 | |||||||
Malaysia |
86,644 | (26,353 | ) | (1,198 | ) | 112,998 | 87,843 | |||||
Philippines |
56,194 | (5,309 | ) | (2,359 | ) | 61,504 | 58,554 | |||||
South Korea |
135,987 | (37,248 | ) | (24,525 | ) | 173,235 | 160,512 | |||||
Singapore |
247,730 | 25,377 | (7,311 | ) | 222,352 | 255,041 | ||||||
Hong Kong |
364,556 | (14,768 | ) | 2,132 | 379,324 | 362,423 | ||||||
China |
279,310 | 80,173 | 60,163 | 199,137 | 219,147 | |||||||
Taiwan |
53,662 | 10,004 | 3,697 | 43,658 | 49,964 | |||||||
Others |
46,611 | 6,340 | 4,923 | 40,270 | 41,687 | |||||||
Total |
1,618,449 | 77,381 | 77,742 | 1,541,068 | 1,540,707 | |||||||
(3) Loans to Latin American countries [Total of the 2 Banks]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Argentina |
8,716 | (16,700 | ) | (11,308 | ) | 25,416 | 20,024 | |||||
Brazil |
37,500 | (31,686 | ) | (8,817 | ) | 69,186 | 46,317 | |||||
Mexico |
73,208 | (13,973 | ) | 7,508 | 87,182 | 65,700 | ||||||
Caribbean countries |
399,750 | 35,061 | 44,713 | 364,688 | 355,036 | |||||||
Others |
75,073 | (27,559 | ) | (9,738 | ) | 102,633 | 84,812 | |||||
Total |
594,249 | (54,858 | ) | 22,356 | 649,108 | 571,893 | ||||||
15
Mitsubishi Tokyo Financial Group, Inc.
10. | Loans and Deposits [Total of the 2 Banks] |
(in millions of yen) | ||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||
(A) (B) |
(A) (C) |
|||||||||
Deposits (ending balance) |
62,817,395 | 1,908,003 | 153,248 | 60,909,391 | 62,664,147 | |||||
Deposits (average balance) |
62,076,676 | 2,204,808 | 1,823,169 | 59,871,867 | 60,253,507 | |||||
Loans (ending balance) |
44,648,801 | 1,910,738 | 1,258,972 | 42,738,063 | 43,389,829 | |||||
Loans (average balance) |
43,535,747 | 953,475 | 523,112 | 42,582,272 | 43,012,635 |
11. | Domestic Deposits [Total of the 2 Banks] |
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Individuals |
33,801,755 | 835,154 | 399,390 | 32,966,600 | 33,402,365 | |||||||
Corporations and others |
20,396,497 | (514,359 | ) | (178,651 | ) | 20,910,857 | 20,575,149 | |||||
Domestic deposits |
54,198,253 | 320,795 | 220,738 | 53,877,458 | 53,977,514 |
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 September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) - (B) |
(A) - (C) |
|||||||||||
Number of employees |
20,201 | (953 | ) | (122 | ) | 21,154 | 20,323 |
13. | Number of Offices [Total of the 2 Banks] |
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic: |
313 | (10 | ) | (2 | ) | 323 | 315 | |||||
Head office and Branches |
291 | (11 | ) | (5 | ) | 302 | 296 | |||||
Sub-branches & Agencies |
22 | 1 | 3 | 21 | 19 | |||||||
Overseas: |
81 | | | 81 | 81 | |||||||
Branches |
47 | | (1 | ) | 47 | 48 | ||||||
Sub-branches |
15 | 1 | 1 | 14 | 14 | |||||||
Representative offices |
19 | (1 | ) | | 20 | 19 | ||||||
Total |
394 | (10 | ) | (2 | ) | 404 | 396 | |||||
16
Mitsubishi Tokyo Financial Group, Inc.
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) |
||||||||
Sep. 30, 2004 |
||||||||
vs. Mar. 31, 2004 |
||||||||
1 |
Deferred Tax Assets |
1,020.5 | (96.6 | ) | ||||
2 |
Allowance for loan losses |
356.4 | 2.5 | |||||
3 |
Write down of investment securities |
104.1 | 4.5 | |||||
4 |
Net operating loss carryforwards |
561.4 | (101.3 | ) | ||||
5 |
Reserve for employees retirement benefits |
39.4 | 3.5 | |||||
6 |
Unrealized losses on securities available for sale |
| | |||||
7 |
Other |
53.4 | (1.9 | ) | ||||
8 |
Valuation allowance |
(94.4 | ) | (4.0 | ) | |||
9 |
Deferred tax liabilities |
308.8 | (95.4 | ) | ||||
10 |
Gains on placing trust for retirement benefits |
7.3 | | |||||
11 |
Unrealized gains on securities available for sale |
295.6 | (91.7 | ) | ||||
12 |
Other |
5.8 | (3.6 | ) | ||||
13 |
Net Deferred Tax Assets |
711.7 | (1.2 | ) | ||||
(Consolidated) |
||||||||
14 |
Net Deferred Tax Assets |
653.9 | (1.5 | ) |
(2) | Balance of Net Deferred Tax Assets and % of Tier I Capital |
(3) | Net Business Profits before Credit Costs and Taxable Income (Current Fiscal Years) |
(Total of the two banks)
(in billions of yen) | ||||
Interim FY 2004 | ||||
15 |
Net business profits before credit costs | 320.6 | ||
16 |
Credit related costs | 50.1 | ||
17 |
Income before income taxes | 240.6 | ||
18 |
Reconciliation to taxable income | 3.1 | ||
19 |
Taxable income | 243.8 |
(4) | Net Business Profits before Credit Costs and Taxable Income (Past Five Fiscal Years) |
(Total of the two banks)
(in billions of yen) |
|||||||||||||||||
FY 1999 |
FY 2000 |
FY 2001 |
FY 2002 |
FY 2003 |
|||||||||||||
20 |
Net business profits before credit costs | 578.6 | 552.0 | 619.5 | 689.9 | 654.8 | |||||||||||
21 |
Credit related costs | 652.4 | 730.5 | 666.3 | 485.9 | (105.7 | ) | ||||||||||
22 |
Income before income taxes | 409.4 | (199.0 | ) | (359.3 | ) | (485.2 | ) | 719.0 | ||||||||
23 |
Reconciliation to taxable income | (76.3 | ) | 304.4 | 142.0 | (1,021.4 | ) | (443.9 | ) | ||||||||
24 |
Taxable income | 333.1 | 105.3 | (217.2 | ) | (1,506.7 | ) | 275.0 |
(5) Comparison with Past Fiscal Years
17
Mitsubishi Tokyo Financial Group, Inc.
(6) | Classification Based on Prior Year Operating Results as Provided in the JICPA Audit Committee Report No. 66 |
Although we recorded taxable income for the six months ended September 30, 2004, 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 followings: (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, 2004 (Assumptions) |
(in billions of yen) | ||||
Five year total (2004 2nd half to 2009 1st half) | ||||
1 |
Net business profits (based on our business plan) (*1) |
4,940.0 | ||
2 |
Net business profits (basis of realizability determination) (*2) |
3,990.0 | ||
3 |
Income before income taxes (basis of realizability determination) |
3,250.0 | ||
4 |
Taxable income before adjustments (basis of realizability determination) (*3) |
3,680.0 | ||
5 |
Temporary difference + net operating loss carryforwards (for which deferred tax assets shall be recognized) |
2,508.0 | ||
6 |
Deferred tax assets at September 30, 2004 (*4) |
1,023.0 |
(*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) | Line5 multiplied by effective tax rate (consolidated corporate-tax basis) |
(Reference) Assumptions for Business Plan
FY 2004 2nd half |
FY 2005 |
FY 2006 |
FY 2007 |
FY 2008 |
FY 2009 1st half |
|||||||||||||||||||
S/T interest rate (3 m/s TIBOR) |
0.08 | % | 0.13 | % | 0.50 | % | 0.57 | % | 0.88 | % | 1.12 | % | ||||||||||||
L/T interest rate (10 year JGB) |
1.78 | % | 1.90 | % | 2.30 | % | 2.03 | % | 2.58 | % | 2.95 | % | ||||||||||||
Exchange rate (USD/Yen) |
¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 |
18
Mitsubishi Tokyo Financial Group, Inc.
15. | Employees Retirement Benefits |
(1) | Benefit obligation |
[Consolidated]
(in millions of yen) |
|||||
As of September 30, 2004 |
|||||
Projected benefits obligation at beginning of the period | (A-B+C-D+E+H+K) | 999,538 | |||
Discount rate: |
|||||
Domestic subsidiaries 1.1% to 2.2%, Overseas subsidiaries 5.4% to 6.25% |
|||||
Fair value of plan assets at beginning of the period |
(A) | 960,295 | |||
Prepaid pension cost at beginning of the period |
(B) | 189,588 | |||
Reserve for employees retirement benefits at beginning of the period |
(C) | 35,095 | |||
Unrecognized plan assets at beginning of the period |
(D) | 57,822 | |||
Unrecognized net obligation by the change of accounting policy at beginning of the period |
(E) | 16,330 | |||
Amortization for the current period (Amortized period mainly 5 years) |
(F) | 8,164 | |||
Unrecognized net obligation at end of the interim period |
(G) | 8,166 | |||
Unrecognized prior service cost at beginning of the period |
(H) | (37,750 | ) | ||
Amortization for the current period (Amortized period mainly 10 years) |
(I) | (2,097 | ) | ||
Unrecognized prior service cost at end of the interim period |
(J) | (35,653 | ) | ||
Unrecognized net actuarial loss at beginning of the period |
(K) | 272,977 | |||
Amortization for the current period (Amortized period mainly 10 years) |
(L) | 15,470 | |||
Unrecognized net actuarial loss at end of the interim period |
(M) | 257,506 | |||
Net amount unrecognized at beginning of the period |
(N)(E+H+K) | 251,557 | |||
Net amount amortized during the interim period |
(O)(F+I+L) | 21,537 | |||
Net amount unrecognized at end of the interim period |
(P)(N-O) | 230,020 |
Note Discount rate : The Bank of Tokyo-Mitsubishi, Ltd. 2.1%, The Mitsubishi Trust and Banking Corporation 2.2%.
(2) | Net periodic pension cost |
[Consolidated]
(in millions of yen) |
|||
For the six months ended September 30, 2004 |
|||
Net periodic cost of the employees retirement benefits |
32,242 | ||
Service cost |
13,836 | ||
Interest cost |
12,939 | ||
Expected return on plan assets |
(20,883 | ) | |
Amortization of net obligation by the change of accounting policy |
8,164 | ||
Amortization of prior service cost |
(2,097 | ) | |
Amortization of net actuarial loss |
15,470 | ||
Other |
4,811 |
19
Mitsubishi Tokyo Financial Group, Inc.
16. | Earning Projections for the Fiscal Year Ending March 31, 2005 |
[Consolidated]
(in billions of yen) | ||||
For the year ending March 31, 2005 |
For the six months ended September 30, 2004 | |||
Ordinary income |
2,450.0 | 1,258.1 | ||
Ordinary profit |
640.0 | 310.3 | ||
Net income |
340.0 | 171.6 |
[Non-Consolidated]
(in billions of yen) | ||||
For the year ending March 31, 2005 |
For the six months ended September 30, 2004 | |||
Operating income |
227.0 | 187.9 | ||
Ordinary profit |
206.0 | 183.2 | ||
Net income |
206.0 | 183.2 |
20
Selected Interim Financial Information
under Japanese GAAP
For the Fiscal Year Ending March 31, 2005
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, 2005 |
1. Consolidated Balance Sheets |
21 | |||
2. Consolidated Statements of Operations |
22 | |||
3. Consolidated Statements of Capital Surplus and Retained Earnings |
23 | |||
4. Non-Consolidated Balance Sheets |
24 | |||
5. Non-Consolidated Statements of Operations |
25 | |||
6. Notional Principal or Contract Amount, Market Value and Valuation Gains (Losses) on Derivatives |
26 | |||
[Consolidated] | ||||
7. Financial Results |
[Consolidated], [Non-Consolidated] | 27 | ||
8. Average Interest Rate Spread |
[Non-Consolidated] | 29 | ||
9. Valuation Differences on Securities |
[Consolidated], [Non-Consolidated] | 29 | ||
10. Risk-Adjusted Capital Ratio Based on the Standards of the BIS |
[Consolidated], [Non-Consolidated] | 30 |
2 | Loan Portfolio and Other |
1. Risk-Monitored Loans |
[Consolidated], [Non-Consolidated] |
31 | ||
2. Classification of Risk-Monitored Loans |
[Consolidated] |
32 | ||
3. Allowance for Loan Losses |
[Consolidated], [Non-Consolidated] |
33 | ||
4. Coverage Ratio against Risk-Monitored Loans |
[Consolidated], [Non-Consolidated] |
33 | ||
5. Disclosed Claims under the Financial Reconstruction Law (the FRL) |
[Non-Consolidated] |
34 | ||
6. Status of Secured Coverage on Disclosed Claims under the FRL |
[Non-Consolidated] |
34 | ||
7. Progress in the Disposal of Problem Assets |
[Non-Consolidated] |
35 | ||
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, 2005 |
[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, 2005
(Japanese GAAP)
1. Consolidated Balance Sheets
As of September 30, |
Increase/ (Decrease) |
As of March 31, 2004 (C) |
Increase/ (Decrease) |
||||||||||||
2004 (A) |
2003 (B) |
||||||||||||||
(in millions of yen) | (A) (B) |
(A) - (C) |
|||||||||||||
Assets: |
|||||||||||||||
Cash and due from banks |
7,144,855 | 9,157,554 | (2,012,698 | ) | 5,840,013 | 1,304,842 | |||||||||
Call loans and bills bought |
405,014 | 947,232 | (542,218 | ) | 953,941 | (548,926 | ) | ||||||||
Receivables under resale agreements |
974,535 | 580,316 | 394,219 | 1,409,963 | (435,427 | ) | |||||||||
Receivables under securities borrowing transactions |
3,902,533 | 4,633,877 | (731,344 | ) | 4,603,993 | (701,460 | ) | ||||||||
Commercial paper and other debt purchased |
1,570,449 | 1,144,590 | 425,858 | 1,297,241 | 273,208 | ||||||||||
Trading assets |
7,309,032 | 6,093,002 | 1,216,029 | 6,296,997 | 1,012,034 | ||||||||||
Money held in trust |
445,055 | 460,078 | (15,022 | ) | 462,424 | (17,368 | ) | ||||||||
Investment securities |
26,056,540 | 16,256,667 | 9,799,872 | 20,960,352 | 5,096,188 | ||||||||||
Allowance for losses on investment securities |
(1,242 | ) | (2,856 | ) | 1,614 | (1,923 | ) | 680 | |||||||
Loans and bills discounted |
39,469,702 | 37,933,075 | 1,536,626 | 38,017,560 | 1,452,142 | ||||||||||
Foreign exchanges |
645,833 | 577,097 | 68,736 | 553,711 | 92,121 | ||||||||||
Other assets |
2,416,794 | 3,331,415 | (914,620 | ) | 2,450,786 | (33,991 | ) | ||||||||
Premises and equipment |
698,431 | 764,385 | (65,953 | ) | 721,219 | (22,787 | ) | ||||||||
Deferred tax assets |
502,273 | 780,828 | (278,554 | ) | 517,036 | (14,762 | ) | ||||||||
Customers liabilities for acceptances and guarantees |
4,374,092 | 4,501,685 | (127,593 | ) | 4,233,353 | 140,738 | |||||||||
Allowance for loan losses |
(609,129 | ) | (774,485 | ) | 165,356 | (630,054 | ) | 20,924 | |||||||
Total assets |
95,304,773 | 86,384,465 | 8,920,308 | 87,686,618 | 7,618,155 | ||||||||||
Liabilities: |
|||||||||||||||
Deposits |
56,961,748 | 54,991,383 | 1,970,364 | 55,910,135 | 1,051,612 | ||||||||||
Negotiable certificates of deposit |
2,582,587 | 2,681,475 | (98,888 | ) | 1,528,477 | 1,054,109 | |||||||||
Debentures |
30,752 | 517,498 | (486,746 | ) | 265,957 | (235,204 | ) | ||||||||
Call money and bills sold |
8,442,561 | 3,979,533 | 4,463,028 | 5,993,188 | 2,449,373 | ||||||||||
Payables under repurchase agreements |
4,528,883 | 3,225,214 | 1,303,668 | 2,812,279 | 1,716,603 | ||||||||||
Payables under securities lending transactions |
3,001,833 | 2,480,041 | 521,792 | 1,571,280 | 1,430,553 | ||||||||||
Commercial paper |
308,479 | 295,989 | 12,490 | 241,006 | 67,472 | ||||||||||
Trading liabilities |
2,871,997 | 1,550,401 | 1,321,596 | 2,751,586 | 120,411 | ||||||||||
Borrowed money |
1,105,351 | 1,255,183 | (149,832 | ) | 1,153,916 | (48,564 | ) | ||||||||
Foreign exchanges |
1,130,384 | 903,761 | 226,622 | 1,068,413 | 61,970 | ||||||||||
Short-term corporate bonds |
297,600 | 213,500 | 84,100 | 300,200 | (2,600 | ) | |||||||||
Bonds and notes |
3,417,282 | 3,441,293 | (24,011 | ) | 3,350,710 | 66,571 | |||||||||
Bonds with warrants |
49,165 | 50,528 | (1,363 | ) | 50,000 | (835 | ) | ||||||||
Other liabilities |
2,427,182 | 2,843,206 | (416,023 | ) | 2,612,359 | (185,177 | ) | ||||||||
Reserve for employees bonuses |
15,848 | 13,340 | 2,507 | 13,050 | 2,797 | ||||||||||
Reserve for employees retirement benefits |
35,075 | 29,084 | 5,990 | 32,140 | 2,935 | ||||||||||
Reserve for expenses related to EXPO 2005 Japan |
131 | 64 | 66 | 97 | 33 | ||||||||||
Reserves under special laws |
1,305 | 1,049 | 256 | 1,160 | 144 | ||||||||||
Deferred tax liabilities |
65,440 | 65,586 | (146 | ) | 56,137 | 9,302 | |||||||||
Deferred tax liabilities on land revaluation excess |
125,597 | 126,697 | (1,099 | ) | 130,408 | (4,810 | ) | ||||||||
Acceptances and guarantees |
4,374,092 | 4,501,685 | (127,593 | ) | 4,233,353 | 140,738 | |||||||||
Total liabilities |
91,773,299 | 83,166,517 | 8,606,782 | 84,075,860 | 7,697,438 | ||||||||||
Minority interest |
370,234 | 348,976 | 21,258 | 357,087 | 13,146 | ||||||||||
Shareholders equity: |
|||||||||||||||
Capital stock |
871,973 | 871,973 | | 871,973 | | ||||||||||
Capital surplus |
681,928 | 681,928 | | 681,928 | | ||||||||||
Retained earnings |
1,241,837 | 1,075,158 | 166,678 | 1,256,278 | (14,440 | ) | |||||||||
Land revaluation excess |
160,611 | 186,667 | (26,055 | ) | 167,631 | (7,019 | ) | ||||||||
Unrealized gains on securities available for sale |
310,963 | 109,159 | 201,804 | 383,572 | (72,609 | ) | |||||||||
Foreign currency translation adjustments |
(106,074 | ) | (55,914 | ) | (50,159 | ) | (107,713 | ) | 1,639 | ||||||
Total shareholders equity |
3,161,239 | 2,868,971 | 292,268 | 3,253,670 | (92,430 | ) | |||||||||
Total liabilities, minority interest and shareholders equity |
95,304,773 | 86,384,465 | 8,920,308 | 87,686,618 | 7,618,155 | ||||||||||
21
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
2. Consolidated Statements of Operations
For the six months ended September 30, |
Increase/ (Decrease) |
For the year ended March 31, 2004 | |||||||
(in millions of yen) | 2004 (A) |
2003 (B) |
(A) (B) |
||||||
Ordinary income: |
|||||||||
Interest income: |
562,543 | 603,955 | (41,412 | ) | 1,128,672 | ||||
Interest on loans and discounts |
363,263 | 402,930 | (39,666 | ) | 768,626 | ||||
Interest and dividends on securities |
103,260 | 92,911 | 10,348 | 182,125 | |||||
Trust fees |
8,571 | 8,622 | (50 | ) | 15,974 | ||||
Fees and commissions |
238,910 | 207,171 | 31,739 | 427,748 | |||||
Trading profits |
46,871 | 75,464 | (28,593 | ) | 133,520 | ||||
Other business income |
85,036 | 124,903 | (39,866 | ) | 193,403 | ||||
Other ordinary income |
77,454 | 63,680 | 13,773 | 145,941 | |||||
Total ordinary income |
1,019,388 | 1,083,798 | (64,409 | ) | 2,045,260 | ||||
Ordinary expenses: |
|||||||||
Interest expense: |
152,366 | 180,704 | (28,338 | ) | 312,949 | ||||
Interest on deposits |
73,005 | 70,975 | 2,029 | 134,327 | |||||
Interest on debentures |
348 | 2,312 | (1,964 | ) | 4,035 | ||||
Fees and commissions |
25,743 | 31,144 | (5,401 | ) | 52,843 | ||||
Trading losses |
1,403 | 5,389 | (3,986 | ) | | ||||
Other business expenses |
39,788 | 81,745 | (41,957 | ) | 112,499 | ||||
General and administrative expenses |
437,119 | 426,162 | 10,956 | 857,740 | |||||
Other ordinary expenses |
114,681 | 152,464 | (37,782 | ) | 262,701 | ||||
Total ordinary expenses |
771,102 | 877,612 | (106,509 | ) | 1,598,735 | ||||
Ordinary profit |
248,286 | 206,186 | 42,099 | 446,524 | |||||
Special gains |
18,219 | 239,472 | (221,252 | ) | 326,824 | ||||
Special losses |
7,841 | 10,304 | (2,463 | ) | 29,874 | ||||
Income before income taxes and others |
258,664 | 435,354 | (176,689 | ) | 743,474 | ||||
Income taxes-current |
26,234 | 44,584 | (18,350 | ) | 77,438 | ||||
Income taxes-deferred |
73,535 | 130,817 | (57,282 | ) | 190,905 | ||||
Minority interest |
22,373 | 23,332 | (958 | ) | 45,846 | ||||
Net income |
136,521 | 236,619 | (100,097 | ) | 429,283 | ||||
22
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
3. Consolidated Statements of Capital Surplus and Retained Earnings
For the six months ended September 30, |
Increase/ (Decrease) |
For the year ended March 31, 2004 |
||||||||||
(in millions of yen) | 2004(A) |
2003(B) |
(A) (B) |
|||||||||
Balance of capital surplus at beginning of fiscal year |
681,928 | 681,928 | | 681,928 | ||||||||
Balance of capital surplus at end of (interim) fiscal year |
681,928 | 681,928 | | 681,928 | ||||||||
Balance of retained earnings at beginning of fiscal year |
1,256,278 | 858,177 | 398,100 | 858,177 | ||||||||
Increase: |
143,541 | 247,441 | (103,900 | ) | 446,977 | |||||||
Net income |
136,521 | 236,619 | (100,097 | ) | 429,283 | |||||||
Reduction in land revaluation excess |
7,020 | 10,822 | (3,802 | ) | 17,694 | |||||||
Decrease: |
(157,982 | ) | (30,460 | ) | (127,521 | ) | (48,877 | ) | ||||
Cash dividends |
(157,907 | ) | (30,457 | ) | (127,449 | ) | (48,873 | ) | ||||
Bonuses to directors of consolidated subsidiaries |
(75 | ) | (3 | ) | (71 | ) | (3 | ) | ||||
Balance of retained earnings at end of (interim) fiscal year |
1,241,837 | 1,075,158 | 166,678 | 1,256,278 | ||||||||
23
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
4. Non-Consolidated Balance Sheets
As of September 30, |
Increase/ (Decrease) |
As of March 31, 2004 (C) |
Increase/ (Decrease) |
||||||||||||
(in millions of yen) | 2004 (A) |
2003 (B) |
(A) (B) |
(A) (C) |
|||||||||||
Assets: |
|||||||||||||||
Cash and due from banks |
6,733,032 | 8,646,356 | (1,913,323 | ) | 5,418,791 | 1,314,241 | |||||||||
Call loans |
264,826 | 787,828 | (523,002 | ) | 838,128 | (573,302 | ) | ||||||||
Receivables under resale agreements |
141,199 | 57,964 | 83,235 | 458,662 | (317,462 | ) | |||||||||
Receivables under securities borrowing transactions |
2,270,074 | 3,103,441 | (833,366 | ) | 2,757,662 | (487,587 | ) | ||||||||
Commercial paper and other debt purchased |
528,302 | 286,902 | 241,399 | 457,187 | 71,115 | ||||||||||
Trading assets |
3,836,123 | 4,456,764 | (620,640 | ) | 4,204,602 | (368,478 | ) | ||||||||
Money held in trust |
398,980 | 407,977 | (8,996 | ) | 414,457 | (15,476 | ) | ||||||||
Investment securities |
25,876,278 | 16,038,996 | 9,837,282 | 20,766,910 | 5,109,368 | ||||||||||
Allowance for losses on investment securities |
(1,242 | ) | (2,856 | ) | 1,614 | (1,923 | ) | 680 | |||||||
Loans and bills discounted |
36,001,958 | 34,260,461 | 1,741,496 | 34,816,640 | 1,185,317 | ||||||||||
Foreign exchanges |
648,426 | 584,631 | 63,795 | 557,677 | 90,749 | ||||||||||
Other assets |
1,417,170 | 2,487,755 | (1,070,584 | ) | 1,731,951 | (314,780 | ) | ||||||||
Premises and equipment |
562,409 | 612,419 | (50,009 | ) | 580,409 | (17,999 | ) | ||||||||
Deferred tax assets |
502,196 | 786,838 | (284,642 | ) | 527,692 | (25,496 | ) | ||||||||
Customers liabilities for acceptances and guarantees |
3,551,691 | 3,708,476 | (156,784 | ) | 3,377,138 | 174,552 | |||||||||
Allowance for loan losses |
(455,266 | ) | (579,522 | ) | 124,256 | (468,577 | ) | 13,311 | |||||||
Total assets |
82,276,162 | 75,644,432 | 6,631,729 | 76,437,410 | 5,838,752 | ||||||||||
Liabilities: |
|||||||||||||||
Deposits |
52,351,389 | 50,397,958 | 1,953,430 | 51,819,415 | 531,973 | ||||||||||
Negotiable certificates of deposit |
2,673,131 | 2,766,399 | (93,267 | ) | 1,626,476 | 1,046,655 | |||||||||
Debentures |
30,752 | 517,498 | (486,746 | ) | 265,957 | (235,204 | ) | ||||||||
Call money |
2,096,530 | 1,669,275 | 427,254 | 2,456,412 | (359,882 | ) | |||||||||
Payables under repurchase agreements |
3,560,445 | 2,564,436 | 996,008 | 1,818,440 | 1,742,005 | ||||||||||
Payables under securities lending transactions |
806,530 | 1,014,511 | (207,981 | ) | 386,061 | 420,469 | |||||||||
Bills sold |
5,829,000 | 2,113,200 | 3,715,800 | 3,247,400 | 2,581,600 | ||||||||||
Trading liabilities |
770,563 | 921,379 | (150,815 | ) | 800,207 | (29,643 | ) | ||||||||
Borrowed money |
1,303,162 | 1,592,983 | (289,821 | ) | 1,344,764 | (41,602 | ) | ||||||||
Foreign exchanges |
1,131,446 | 905,401 | 226,044 | 1,068,964 | 62,481 | ||||||||||
Short-term corporate bonds |
297,600 | 213,500 | 84,100 | 300,200 | (2,600 | ) | |||||||||
Bonds and notes |
2,567,860 | 2,438,260 | 129,600 | 2,567,140 | 720 | ||||||||||
Other liabilities |
2,130,354 | 1,918,821 | 211,533 | 2,066,730 | 63,623 | ||||||||||
Reserve for employees bonuses |
7,476 | 6,515 | 960 | 6,053 | 1,422 | ||||||||||
Reserve for employees retirement benefits |
16,448 | 9,914 | 6,533 | 13,272 | 3,175 | ||||||||||
Reserve for financial assistance to specific borrowers |
| 1,371 | (1,371 | ) | | | |||||||||
Reserve for expenses related to EXPO 2005 Japan |
131 | 64 | 66 | 97 | 33 | ||||||||||
Reserves under special laws |
31 | 31 | | 31 | | ||||||||||
Deferred tax liabilities on land revaluation excess |
125,597 | 126,697 | (1,099 | ) | 130,408 | (4,810 | ) | ||||||||
Acceptances and guarantees |
3,551,691 | 3,708,476 | (156,784 | ) | 3,377,138 | 174,552 | |||||||||
Total liabilities |
79,250,142 | 72,886,696 | 6,363,445 | 73,295,173 | 5,954,968 | ||||||||||
Shareholders equity: |
|||||||||||||||
Capital stock |
871,973 | 871,973 | | 871,973 | | ||||||||||
Capital surplus |
681,928 | 681,928 | | 681,928 | | ||||||||||
Capital reserve |
681,928 | 681,928 | | 681,928 | | ||||||||||
Retained earnings |
998,836 | 923,101 | 75,734 | 1,041,547 | (42,710 | ) | |||||||||
Revenue reserve |
190,044 | 190,044 | | 190,044 | | ||||||||||
Voluntary reserves |
664,890 | 475,701 | 189,188 | 475,701 | 189,188 | ||||||||||
Unappropriated profit |
143,901 | 257,355 | (113,453 | ) | 375,801 | (231,899 | ) | ||||||||
Net income |
108,176 | 229,764 | (121,587 | ) | 359,754 | (251,578 | ) | ||||||||
Land revaluation excess |
160,684 | 186,740 | (26,056 | ) | 167,704 | (7,020 | ) | ||||||||
Unrealized gains on securities available for sale |
312,597 | 93,992 | 218,605 | 379,082 | (66,485 | ) | |||||||||
Total shareholders equity |
3,026,020 | 2,757,736 | 268,284 | 3,142,236 | (116,216 | ) | |||||||||
Total liabilities and shareholders equity |
82,276,162 | 75,644,432 | 6,631,729 | 76,437,410 | 5,838,752 | ||||||||||
24
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
5. Non-Consolidated Statements of Operations
For the six months ended September 30, |
Increase/ (Decrease) |
For the year ended March 31, 2004 | |||||||
(in millions of yen) | 2004 (A) |
2003 (B) |
(A) (B) |
||||||
Ordinary income: |
|||||||||
Interest income: |
441,852 | 457,325 | (15,472 | ) | 887,752 | ||||
Interest on loans and discounts |
277,893 | 288,121 | (10,228 | ) | 569,937 | ||||
Interest and dividends on securities |
97,848 | 89,064 | 8,784 | 182,201 | |||||
Fees and commissions |
116,652 | 97,727 | 18,925 | 205,938 | |||||
Trading profits |
30,934 | 33,116 | (2,182 | ) | 57,961 | ||||
Other business income |
92,045 | 128,722 | (36,677 | ) | 205,278 | ||||
Other ordinary income |
46,969 | 59,892 | (12,923 | ) | 114,075 | ||||
Total ordinary income |
728,455 | 776,784 | (48,329 | ) | 1,471,005 | ||||
Ordinary expenses: |
|||||||||
Interest expense: |
127,890 | 138,823 | (10,932 | ) | 255,402 | ||||
Interest on deposits |
65,064 | 55,706 | 9,357 | 110,763 | |||||
Interest on debentures |
348 | 2,312 | (1,964 | ) | 4,035 | ||||
Fees and commissions |
24,067 | 24,369 | (302 | ) | 52,541 | ||||
Trading losses |
1,675 | 4,920 | (3,245 | ) | 3,221 | ||||
Other business expenses |
57,696 | 82,393 | (24,696 | ) | 122,362 | ||||
General and administrative expenses |
254,026 | 256,642 | (2,615 | ) | 505,343 | ||||
Other ordinary expenses |
92,030 | 120,635 | (28,604 | ) | 241,912 | ||||
Total ordinary expenses |
557,386 | 627,783 | (70,397 | ) | 1,180,784 | ||||
Ordinary profit |
171,068 | 149,001 | 22,067 | 290,221 | |||||
Special gains |
11,322 | 246,160 | (234,838 | ) | 325,586 | ||||
Special losses |
6,237 | 9,171 | (2,933 | ) | 28,088 | ||||
Income before income taxes and others |
176,152 | 385,990 | (209,838 | ) | 587,719 | ||||
Income taxes-current |
1,791 | 27,861 | (26,070 | ) | 44,462 | ||||
Income taxes-deferred |
66,185 | 128,365 | (62,180 | ) | 183,503 | ||||
Net income |
108,176 | 229,764 | (121,587 | ) | 359,754 | ||||
Unappropriated retained earnings brought forward |
28,705 | 16,769 | 11,936 | 16,769 | |||||
Reduction in land revaluation excess |
7,020 | 10,822 | (3,802 | ) | 17,694 | ||||
Interim dividends |
| | | 18,416 | |||||
Unappropriated retained earnings |
143,901 | 257,355 | (113,453 | ) | 375,801 | ||||
25
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
The publication is omitted in order to be disclosed by EDINET.
<Reference>
1. Derivatives qualified for hedge-accounting [Consolidated]
(in billions of yen) |
|||||
As of September 30, 2004 |
|||||
Notional principal or contract amount |
Market value |
||||
Interest rate futures |
5,839.2 | (1.2 | ) | ||
Interest rate swaps |
23,769.1 | 96.4 | |||
Currency swaps |
3,336.2 | (20.8 | ) | ||
Other interest rate-related transactions |
797.3 | 3.1 | |||
Others |
0.8 | (0.0 | ) | ||
Total |
77.5 | ||||
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, 2004 | ||||||||
Due within 1 year |
Due after 1 year through 5 years |
Due after 5 years |
Total | |||||
Receive-fix/pay-floater |
5,251.5 | 10,699.5 | 1,218.3 | 17,169.3 | ||||
Receive-floater/pay-fix |
3,173.6 | 1,977.9 | 1,438.1 | 6,589.7 | ||||
Receive-floater/pay-floater |
| 10.0 | | 10.0 | ||||
Total |
8,425.1 | 12,687.4 | 2,656.4 | 23,769.1 |
2. Deferred gains (losses) [Consolidated]
(in billions of yen) |
|||||||
As of September 30, 2004 |
|||||||
Deferred gains |
Deferred losses |
Net gains (losses) |
|||||
(A) |
(B) |
(A) (B) |
|||||
Interest rate futures |
10.5 | 11.0 | (0.5 | ) | |||
Interest rate swaps |
206.7 | 184.9 | 21.8 | ||||
Currency swaps |
22.0 | 20.2 | 1.8 | ||||
Other interest rate-related transactions |
1.2 | 0.1 | 1.1 | ||||
Others |
2.3 | 2.4 | (0.1 | ) | |||
Total |
242.9 | 218.8 | 24.1 |
Note : | Deferred gains (losses) attributable to the macro hedge accounting as of September 30, 2004 are included in the above table. |
26
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) |
|||||||||
For the six months ended September 30, 2003 (A) |
For the six months ended September 30, 2004 (B) |
Increase/ (Decrease) |
|||||||
(B) (A) |
|||||||||
Gross profits |
722,151 | 723,537 | 1,385 | ||||||
Net interest income |
424,269 | 411,081 | (13,187 | ) | |||||
Trust fees |
8,622 | 8,571 | (50 | ) | |||||
Net fees and commissions |
176,026 | 213,167 | 37,140 | ||||||
Net trading profits |
70,074 | 45,467 | (24,607 | ) | |||||
Net other business income |
43,157 | 45,248 | 2,090 | ||||||
Net gains (losses) on debt securities |
(16,876 | ) | 22,944 | 39,821 | |||||
General and administrative expenses |
401,872 | 420,693 | 18,821 | ||||||
Net business profits before provision for formula allowance for loan losses |
320,278 | 302,843 | (17,435 | ) | |||||
Provision for formula allowance for loan losses (1) |
| | | ||||||
Net business profits* |
320,278 | 302,843 | (17,435 | ) | |||||
Net non-recurring losses |
(114,092 | ) | (54,557 | ) | 59,535 | ||||
Credit related costs (2) |
(84,402 | ) | (51,005 | ) | 33,397 | ||||
Losses on loan charge-offs |
(46,957 | ) | (26,890 | ) | 20,067 | ||||
Provision for specific allowance for loan losses |
| | | ||||||
Losses on sales of loans to the Resolution and Collection Corporation |
(14,020 | ) | (852 | ) | 13,168 | ||||
Provision for allowance for loans to specific foreign borrowers |
| | | ||||||
Other credit related costs |
(23,424 | ) | (23,263 | ) | 161 | ||||
Net gains (losses) on equity securities |
(11,282 | ) | 560 | 11,842 | |||||
Gains on sales of equity securities |
30,464 | 37,991 | 7,527 | ||||||
Losses on sales of equity securities |
(40,107 | ) | (13,679 | ) | 26,428 | ||||
Losses on write down of equity securities |
(1,638 | ) | (23,751 | ) | (22,112 | ) | |||
Equity in profit (loss) of affiliates |
(771 | ) | 943 | 1,714 | |||||
Other |
(17,635 | ) | (5,055 | ) | 12,580 | ||||
Ordinary profit |
206,186 | 248,286 | 42,099 | ||||||
Net special gains |
229,167 | 10,378 | (218,789 | ) | |||||
Gains on loans charged-off(3) |
12,535 | 8,425 | (4,110 | ) | |||||
Reversal of allowance for loan losses (4) |
166,175 | 6,849 | (159,325 | ) | |||||
Losses on impairment of fixed assets |
| (3,825 | ) | (3,825 | ) | ||||
Income before income taxes and others |
435,354 | 258,664 | (176,689 | ) | |||||
Income taxes-current |
44,584 | 26,234 | (18,350 | ) | |||||
Income taxes-deferred |
130,817 | 73,535 | (57,282 | ) | |||||
Minority interest |
23,332 | 22,373 | (958 | ) | |||||
Net income |
236,619 | 136,521 | (100,097 | ) | |||||
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)+(4) |
81,772 | (44,156 | ) | (125,928 | ) | ||||
Total credit costs + Gains on loans charged-off (1)+(2)+(3)+(4) |
94,307 | (35,730 | ) | (130,038 | ) | ||||
Number of consolidated subsidiaries |
144 | 132 | (12 | ) | |||||
Number of affiliated companies accounted for by the equity method |
23 | 23 | |
27
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
Financial Results (The Bank of Tokyo-Mitsubishi, Ltd.)
(in millions of yen) |
|||||||||
For the six months ended September 30, 2003 (A) |
For the six months ended September 30, 2004 (B) |
Increase/ (Decrease) |
|||||||
(B) (A) |
|||||||||
Gross profits |
467,403 | 471,059 | 3,655 | ||||||
Domestic gross profits |
222,433 | 290,999 | 68,565 | ||||||
Net interest income |
208,647 | 217,119 | 8,472 | ||||||
Net fees and commissions |
43,472 | 60,809 | 17,337 | ||||||
Net trading profits |
1,782 | (1,271 | ) | (3,053 | ) | ||||
Net other business income |
(31,469 | ) | 14,340 | 45,809 | |||||
Net gains (losses) on debt securities |
(22,995 | ) | 17,385 | 40,380 | |||||
Non-domestic gross profits |
244,969 | 180,060 | (64,909 | ) | |||||
Net interest income |
110,872 | 97,746 | (13,126 | ) | |||||
Net fees and commissions |
29,884 | 31,775 | 1,890 | ||||||
Net trading profits |
26,413 | 30,529 | 4,116 | ||||||
Net other business income |
77,799 | 20,008 | (57,790 | ) | |||||
Net gains on debt securities |
4,903 | 5,798 | 894 | ||||||
General and administrative expenses |
232,351 | 237,600 | 5,248 | ||||||
Personnel expenses |
89,505 | 89,256 | (248 | ) | |||||
Non-personnel expenses |
130,279 | 135,867 | 5,587 | ||||||
Taxes |
12,566 | 12,475 | (90 | ) | |||||
Net business profits before provision for formula allowance for loan losses |
235,051 | 233,459 | (1,592 | ) | |||||
Provision for formula allowance for loan losses (1) |
| | | ||||||
Net business profits |
235,051 | 233,459 | (1,592 | ) | |||||
Net non-recurring losses |
(86,050 | ) | (62,390 | ) | 23,660 | ||||
Credit related costs (2) |
(61,972 | ) | (41,746 | ) | 20,225 | ||||
Losses on loan charge-offs |
(23,696 | ) | (17,631 | ) | 6,064 | ||||
Provision for specific allowance for loan losses |
| | | ||||||
Losses on sales of loans to the Resolution and Collection Corporation |
(13,655 | ) | (852 | ) | 12,802 | ||||
Provision for allowance for loans to specific foreign borrowers |
| | | ||||||
Other credit related costs |
(24,621 | ) | (23,263 | ) | 1,358 | ||||
Net gains (losses) on equity securities |
5,930 | (1,158 | ) | (7,089 | ) | ||||
Gains on sales of equity securities |
50,030 | 36,154 | (13,876 | ) | |||||
Losses on sales of equity securities |
(40,127 | ) | (13,621 | ) | 26,505 | ||||
Losses on write down of equity securities |
(3,972 | ) | (23,691 | ) | (19,719 | ) | |||
Others |
(30,009 | ) | (19,484 | ) | 10,524 | ||||
Ordinary profit |
149,001 | 171,068 | 22,067 | ||||||
Net special gains |
236,989 | 5,084 | (231,905 | ) | |||||
Gains on loans charged-off (3) |
12,790 | 5,688 | (7,102 | ) | |||||
Reversal of allowance for loan losses (4) |
172,744 | 3,561 | (169,183 | ) | |||||
Losses on impairment of fixed assets |
| (2,657 | ) | (2,657 | ) | ||||
Income before income taxes |
385,990 | 176,152 | (209,838 | ) | |||||
Income taxes-current |
27,861 | 1,791 | (26,070 | ) | |||||
Income taxes-deferred |
128,365 | 66,185 | (62,180 | ) | |||||
Net income |
229,764 | 108,176 | (121,587 | ) | |||||
Total credit costs (1)+(2)+(4) |
110,772 | (38,185 | ) | (148,957 | ) | ||||
Total credit costs + Gains on loans charged-off (1)+(2)+(3)+(4) |
123,562 | (32,497 | ) | (156,059 | ) | ||||
28
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) |
||||||
2004(A) |
2003(B) |
(A) (B) |
|||||
Total average interest rate on interest-earning assets (a) |
1.36 | 1.55 | (0.19 | ) | |||
Average interest rate on Loans and bills discounted |
1.58 | 1.67 | (0.08 | ) | |||
Average interest rate on Investment securities |
0.82 | 0.94 | (0.12 | ) | |||
Total average interest rate on interest-bearing liabilities (b) |
1.05 | 1.17 | (0.12 | ) | |||
Average interest rate on Deposits, NCD and Debentures |
0.25 | 0.23 | 0.02 | ||||
Average interest rate on external liabilities |
0.46 | 0.98 | (0.51 | ) | |||
Total average interest rate spread (a)-(b) |
0.30 | 0.37 | (0.07 | ) | |||
(percentage per annum) |
|||||||
Average interest rate spread in domestic business segment: |
|||||||
Total average interest rate on interest-earning assets (a) |
0.98 | 1.09 | (0.10 | ) | |||
Average interest rate on Loans and bills discounted |
1.38 | 1.46 | (0.07 | ) | |||
Average interest rate on Investment securities |
0.43 | 0.45 | (0.02 | ) | |||
Total average interest rate on interest-bearing liabilities (b) |
0.72 | 0.81 | (0.09 | ) | |||
Average interest rate on Deposits, NCD and Debentures |
0.03 | 0.03 | (0.00 | ) | |||
Average interest rate on external liabilities |
0.28 | 0.73 | (0.44 | ) | |||
Total average interest rate spread (a)-(b) |
0.26 | 0.28 | (0.01 | ) | |||
9. Valuation Differences on Securities
(1) Valuation method of securities
Trading securities | Market value (valuation differences are recorded as profits or losses) | |
Debt securities being held to maturity | Amortized cost | |
Stocks of subsidiaries and affiliates | Cost | |
Securities available for sale | Market value (valuation differences are included in 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
[Consolidated]
(in millions of yen) | ||||||||||||||||||||||||||
As of September 30, 2004 |
As of September 30, 2003 |
As of March 31, 2004 | ||||||||||||||||||||||||
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 |
9,331 | 7,377 | 7,357 | 9,332 | 0 | 1,954 | 1,955 | 0 | 1,974 | 3,197 | 1,223 | |||||||||||||||
Securities available for sale |
518,369 | 333,687 | (131,927 | ) | 668,300 | 149,931 | 184,682 | 482,353 | 297,671 | 650,296 | 792,943 | 142,647 | ||||||||||||||
Domestic equity securities |
506,020 | 293,051 | (101,523 | ) | 590,600 | 84,579 | 212,969 | 409,682 | 196,713 | 607,544 | 693,953 | 86,409 | ||||||||||||||
Domestic bonds |
946 | 50,420 | 15,954 | 21,510 | 20,564 | (49,474 | ) | 11,793 | 61,267 | (15,007 | ) | 21,033 | 36,041 | |||||||||||||
Other |
11,402 | (9,785 | ) | (46,358 | ) | 56,189 | 44,787 | 21,187 | 60,878 | 39,690 | 57,760 | 77,955 | 20,195 | |||||||||||||
Total |
527,700 | 341,064 | (124,570 | ) | 677,633 | 149,932 | 186,636 | 484,308 | 297,672 | 652,270 | 796,141 | 143,870 | ||||||||||||||
Domestic equity securities |
506,020 | 293,051 | (101,523 | ) | 590,600 | 84,579 | 212,969 | 409,682 | 196,713 | 607,544 | 693,953 | 86,409 | ||||||||||||||
Domestic bonds |
8,839 | 58,314 | 23,459 | 29,403 | 20,564 | (49,474 | ) | 11,793 | 61,267 | (14,620 | ) | 22,638 | 37,259 | |||||||||||||
Other |
12,840 | (10,300 | ) | (46,506 | ) | 57,629 | 44,788 | 23,141 | 62,833 | 39,691 | 59,347 | 79,548 | 20,201 | |||||||||||||
[Non-Consolidated]
|
|
|||||||||||||||||||||||||
(in millions of yen) | ||||||||||||||||||||||||||
As of September 30, 2004 |
As of September 30, 2003 |
As of March 31, 2004 | ||||||||||||||||||||||||
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 |
8,229 | 8,111 | 7,546 | 8,230 | 0 | 118 | 119 | 0 | 683 | 1,903 | 1,220 | |||||||||||||||
Stocks of subsidiaries and affiliates |
496,074 | 104,142 | 2,565 | 496,074 | | 391,931 | 391,992 | 60 | 493,508 | 493,517 | 8 | |||||||||||||||
Securities available for sale |
526,672 | 369,126 | (111,637 | ) | 653,630 | 126,957 | 157,546 | 450,214 | 292,668 | 638,310 | 759,175 | 120,864 | ||||||||||||||
Domestic equity securities |
498,363 | 289,874 | (101,526 | ) | 582,605 | 84,242 | 208,488 | 404,742 | 196,253 | 599,889 | 674,637 | 74,747 | ||||||||||||||
Domestic bonds |
960 | 50,435 | 15,998 | 21,501 | 20,540 | (49,474 | ) | 11,792 | 61,267 | (15,038 | ) | 21,002 | 36,041 | |||||||||||||
Other |
27,348 | 28,816 | (26,110 | ) | 49,523 | 22,174 | (1,467 | ) | 33,678 | 35,146 | 53,459 | 63,535 | 10,075 | |||||||||||||
Total |
1,030,976 | 481,379 | (101,525 | ) | 1,157,934 | 126,958 | 549,596 | 842,325 | 292,729 | 1,132,502 | 1,254,596 | 122,094 | ||||||||||||||
Domestic equity securities |
576,585 | 296,788 | (194,396 | ) | 660,827 | 84,242 | 279,796 | 476,061 | 196,265 | 770,981 | 845,729 | 74,747 | ||||||||||||||
Domestic bonds |
8,853 | 58,328 | 23,504 | 29,394 | 20,540 | (49,474 | ) | 11,792 | 61,267 | (14,651 | ) | 22,607 | 37,258 | |||||||||||||
Other |
445,537 | 126,262 | 69,365 | 467,712 | 22,174 | 319,275 | 354,471 | 35,196 | 376,171 | 386,259 | 10,087 |
29
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, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of 2004 (C) |
|||||||||||||||
(Preliminary basis) |
(A) (B) |
(A) (C) |
|||||||||||||||||
(1) | Risk-adjustedcapital ratio |
10.56 | % | (1.33 | )% | (1.41 | )% | 11.89 | % | 11.97 | % | ||||||||
(2) | Tier 1 capital |
3,005.3 | 123.1 | 129.3 | 2,882.2 | 2,876.0 | |||||||||||||
(3) | Tier 2 capital includable as qualifying capital |
2,178.4 | (260.5 | ) | (236.8 | ) | 2,438.9 | 2,415.3 | |||||||||||
i) | The amount of unrealized gains on investment securities, includable as qualifying capital | 234.2 | 150.3 | (59.7 | ) | 83.9 | 294.0 | ||||||||||||
ii) | The amount of land revaluation excess includable as qualifying capital | 128.7 | (12.2 | ) | (5.3 | ) | 140.9 | 134.0 | |||||||||||
iii) | Subordinated debt | 1,507.8 | (161.6 | ) | (1.2 | ) | 1,669.4 | 1,509.0 | |||||||||||
(4) | Tier 3 capital includable as qualifying capital |
| (29.9 | ) | (30.0 | ) | 29.9 | 30.0 | |||||||||||
(5) | Deductions from total qualifying capital | 442.7 | 403.8 | 401.0 | 38.8 | 41.7 | |||||||||||||
(6) | Total qualifying capital (2)+(3)+(4)-(5) | 4,741.0 | (571.1 | ) | (538.5 | ) | 5,312.1 | 5,279.5 | |||||||||||
(7) | Risk-adjusted assets | 44,893.6 | 247.4 | 799.7 | 44,646.1 | 44,093.8 | |||||||||||||
[Non-Consolidated] | |||||||||||||||||||
(in billions of yen except percentages) |
|||||||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||||||
(Preliminary basis) |
(A) (B) |
(A) (C) |
|||||||||||||||||
(1) | Risk-adjusted capital ratio | 10.65 | % | (1.57 | )% | (1.53 | )% | 12.23 | % | 12.18 | % | ||||||||
(2) | Tier 1 capital |
2,529.7 | 71.1 | 92.1 | 2,458.5 | 2,437.5 | |||||||||||||
(3) | Tier 2 capital includable as qualifying capital |
2,015.5 | (213.4 | ) | (216.7 | ) | 2,229.0 | 2,232.3 | |||||||||||
i) | The amount of unrealized gains on investment securities, includable as qualifying capital | 236.9 | 165.8 | (50.3 | ) | 71.0 | 287.3 | ||||||||||||
ii) | The amount of land revaluation excess includable as qualifying capital | 128.8 | (12.2 | ) | (5.3 | ) | 141.0 | 134.1 | |||||||||||
iii) | Subordinated debt | 1,464.7 | (156.6 | ) | 3.6 | 1,621.3 | 1,461.1 | ||||||||||||
(4) | Tier 3 capital includable as qualifying capital |
| (18.7 | ) | (12.4 | ) | 18.7 | 12.4 | |||||||||||
(5) | Deductions from total qualifying capital | 404.3 | 399.2 | 399.7 | 5.0 | 4.5 | |||||||||||||
(6) | Total qualifying capital (2)+(3)+(4)-(5) | 4,140.9 | (560.3 | ) | (536.7 | ) | 4,701.2 | 4,677.7 | |||||||||||
(7) | Risk-adjusted assets | 38,853.3 | 416.4 | 477.9 | 38,436.9 | 38,375.3 |
30
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 September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Loans to customers in bankruptcy |
17,068 | (21,051 | ) | (5,616 | ) | 38,119 | 22,684 | ||||||||
Past due loans |
903,212 | 217,058 | 384,103 | 686,154 | 519,109 | ||||||||||
Accruing loans contractually past due 3 months or more |
11,886 | (5,367 | ) | (374 | ) | 17,253 | 12,260 | ||||||||
Restructured loans |
248,575 | (452,925 | ) | (260,337 | ) | 701,501 | 508,913 | ||||||||
Total |
1,180,742 | (262,286 | ) | 117,775 | 1,443,028 | 1,062,966 | |||||||||
Amount of direct reduction |
274,321 | (93,642 | ) | (26,288 | ) | 367,964 | 300,610 | ||||||||
Loans and bills discounted |
39,469,702 | 1,536,626 | 1,452,142 | 37,933,075 | 38,017,560 | ||||||||||
Percentage of total loans and bills discounted |
|||||||||||||||
Loans to customers in bankruptcy |
0.04 | % | (0.05 | )% | (0.01 | )% | 0.10 | % | 0.05 | % | |||||
Past due loans |
2.28 | % | 0.47 | % | 0.92 | % | 1.80 | % | 1.36 | % | |||||
Accruing loans contractually past due 3 months or more |
0.03 | % | (0.01 | )% | (0.00 | )% | 0.04 | % | 0.03 | % | |||||
Restructured loans |
0.62 | % | (1.21 | )% | (0.70 | )% | 1.84 | % | 1.33 | % | |||||
Total |
2.99 | % | (0.81 | )% | 0.19 | % | 3.80 | % | 2.79 | % | |||||
[Non-Consolidated] |
|||||||||||||||
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Loans to customers in bankruptcy |
11,389 | (12,855 | ) | (3,788 | ) | 24,244 | 15,177 | ||||||||
Past due loans |
849,379 | 264,538 | 404,255 | 584,840 | 445,124 | ||||||||||
Accruing loans contractually past due 3 months or more |
10,816 | (4,937 | ) | (1,018 | ) | 15,753 | 11,835 | ||||||||
Restructured loans |
247,095 | (451,906 | ) | (260,345 | ) | 699,002 | 507,440 | ||||||||
Total |
1,118,680 | (205,160 | ) | 139,102 | 1,323,841 | 979,578 | |||||||||
Amount of direct reduction |
229,046 | (89,001 | ) | (14,390 | ) | 318,047 | 243,437 | ||||||||
Loans and bills discounted |
36,001,958 | 1,741,496 | 1,185,317 | 34,260,461 | 34,816,640 | ||||||||||
Percentage of total loans and bills discounted |
|||||||||||||||
Loans to customers in bankruptcy |
0.03 | % | (0.03 | )% | (0.01 | )% | 0.07 | % | 0.04 | % | |||||
Past due loans |
2.35 | % | 0.65 | % | 1.08 | % | 1.70 | % | 1.27 | % | |||||
Accruing loans contractually past due 3 months or more |
0.03 | % | (0.01 | )% | (0.00 | )% | 0.04 | % | 0.03 | % | |||||
Restructured loans |
0.68 | % | (1.35 | )% | (0.77 | )% | 2.04 | % | 1.45 | % | |||||
Total |
3.10 | % | (0.75 | )% | 0.29 | % | 3.86 | % | 2.81 | % | |||||
31
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 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic* |
937,168 | (263,087 | ) | 129,493 | 1,200,256 | 807,675 | ||||||
Overseas* |
243,574 | 801 | (11,717 | ) | 242,772 | 255,291 | ||||||
Asia |
33,070 | (311 | ) | 10,424 | 33,382 | 22,645 | ||||||
Indonesia |
3,065 | (6,850 | ) | (1,025 | ) | 9,916 | 4,090 | |||||
Thailand |
2,724 | (4,737 | ) | (5,138 | ) | 7,462 | 7,863 | |||||
Hong Kong |
22,148 | 15,504 | 17,431 | 6,643 | 4,717 | |||||||
Other |
5,131 | (4,228 | ) | (842 | ) | 9,360 | 5,974 | |||||
United States of America |
160,888 | 19,974 | (23,171 | ) | 140,913 | 184,060 | ||||||
Other |
49,615 | (18,861 | ) | 1,029 | 68,477 | 48,585 | ||||||
Total |
1,180,742 | (262,286 | ) | 117,775 | 1,443,028 | 1,062,966 | ||||||
Note:* Domestic and Overseas are classified by domicile of borrowers.
Classification by type of industry of borrowers
[Consolidated]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of March 31, | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic* |
937,168 | (263,087 | ) | 129,493 | 1,200,256 | 807,675 | ||||||
Manufacturing |
131,192 | 20,873 | 29,872 | 110,318 | 101,319 | |||||||
Construction |
39,606 | (55,247 | ) | (4,206 | ) | 94,854 | 43,813 | |||||
Wholesale and Retail |
266,476 | (26,037 | ) | 76,844 | 292,514 | 189,632 | ||||||
Banks and other financial institutions |
65,652 | 55,902 | 50,709 | 9,749 | 14,943 | |||||||
Real estate |
270,747 | (52,751 | ) | (4,724 | ) | 323,498 | 275,472 | |||||
Services |
67,527 | (39,050 | ) | (14,425 | ) | 106,578 | 81,953 | |||||
Other industries |
21,118 | (27,076 | ) | 723 | 48,194 | 20,394 | ||||||
Consumer |
74,846 | (139,700 | ) | (5,300 | ) | 214,546 | 80,146 | |||||
Overseas* |
243,574 | 801 | (11,717 | ) | 242,772 | 255,291 | ||||||
Banks and other financial institutions |
94,673 | 93,258 | 14,085 | 1,415 | 80,588 | |||||||
Commercial and industrial |
147,318 | (89,762 | ) | (19,110 | ) | 237,080 | 166,429 | |||||
Other |
1,582 | (2,694 | ) | (6,692 | ) | 4,276 | 8,274 | |||||
Total |
1,180,742 | (262,286 | ) | 117,775 | 1,443,028 | 1,062,966 | ||||||
Note:* Domestic and Overseas are classified by domicile of borrowers.
32
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
3. | Allowance for Loan Losses |
[Consolidated]
(in millions of yen) | ||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Allowance for loan losses |
609,129 | (165,356 | ) | (20,924 | ) | 774,485 | 630,054 | |||||
Formula allowance for loan losses |
307,563 | (236,986 | ) | (170,527 | ) | 544,549 | 478,090 | |||||
Specific allowance for loan losses |
296,504 | 75,188 | 150,450 | 221,315 | 146,054 | |||||||
Allowance for loans to specific foreign borrowers |
5,061 | (3,558 | ) | (847 | ) | 8,620 | 5,908 | |||||
[Non-Consolidated] | ||||||||||||
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Allowance for loan losses |
455,266 | (124,256 | ) | (13,311 | ) | 579,522 | 468,577 | |||||
Formula allowance for loan losses |
185,052 | (210,518 | ) | (164,628 | ) | 395,571 | 349,680 | |||||
Specific allowance for loan losses |
265,151 | 89,821 | 152,164 | 175,330 | 112,987 | |||||||
Allowance for loans to specific foreign borrowers |
5,061 | (3,558 | ) | (847 | ) | 8,620 | 5,908 | |||||
Reserve for financial assistance to specific borrowers |
| (1,371 | ) | | 1,371 | | ||||||
4. | Coverage Ratio against Risk-Monitored Loans |
[Consolidated]
(in millions of yen) |
|||||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Allowance for loan losses (a) |
609,129 | (165,356 | ) | (20,924 | ) | 774,485 | 630,054 | ||||||||
Risk-monitored loans (b) |
1,180,742 | (262,286 | ) | 117,775 | 1,443,028 | 1,062,966 | |||||||||
Coverage ratio (a)/(b) |
51.58 | % | (2.08 | )% | (7.68 | )% | 53.67 | % | 59.27 | % | |||||
[Non-Consolidated] |
|||||||||||||||
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Allowance for loan losses (a) |
455,266 | (124,256 | ) | (13,311 | ) | 579,522 | 468,577 | ||||||||
Risk-monitored loans (b) |
1,118,680 | (205,160 | ) | 139,102 | 1,323,841 | 979,578 | |||||||||
Coverage ratio (a)/(b) |
40.69 | % | (3.07 | )% | (7.13 | )% | 43.77 | % | 47.83 | % |
33
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 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Claims to bankrupt and substantially bankrupt debtors |
71,475 | (52,468 | ) | (19,490 | ) | 123,943 | 90,966 | |||||
Claims under high risk |
902,042 | 395,933 | 519,506 | 506,108 | 382,536 | |||||||
Claims under close observation |
257,912 | (456,843 | ) | (261,363 | ) | 714,756 | 519,276 | |||||
Total (1) |
1,231,430 | (113,378 | ) | 238,651 | 1,344,808 | 992,778 | ||||||
Normal claims |
39,062,829 | 1,760,140 | 1,210,357 | 37,302,689 | 37,852,472 |
6. Status of Secured Coverage on Disclosed Claims under the FRL
[Non-Consolidated]
(in millions of yen) |
|||||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Secured coverage amount (2) |
837,741 | (152,112 | ) | 162,054 | 989,854 | 675,687 | |||||||||
Allowance for loan losses |
296,779 | (9,027 | ) | 86,397 | 305,806 | 210,381 | |||||||||
Reserve for financial assistance to specific borrowers |
| | | | | ||||||||||
Collateral, guarantees, etc. |
540,962 | (143,085 | ) | 75,656 | 684,047 | 465,305 | |||||||||
Secured coverage ratio (2)/(1) |
68.02 | % | (5.57 | )% | (0.03 | )% | 73.60 | % | 68.06 | % |
Secured Coverage of Each Category of Disclosed Claims under the FRL
[Non-Consolidated]
(in millions of yen) |
|||||||||||||||||
Category |
Disclosed amount (A) |
Allowance for loan losses (B) |
Reserve for financial assistance to specific borrowers (C) |
Collectable amount by collateralized and guaranteed loans (D) |
Coverage ratio [(B)+(C)] / [(A)-(D)] |
Coverage ratio [(B)+(C)+(D)] / (A) |
|||||||||||
Claims to bankrupt and substantially bankrupt debtors |
71,475 [90,966 |
] |
5,742 [5,283 |
] |
|
65,732 [85,683 |
] |
100.00 [100.00 |
% %] |
100.00 [100.00 |
% %] | ||||||
Claims under high risk |
902,042 [382,536 |
] |
255,016 [105,087 |
] |
|
335,061 [210,741 |
] |
44.97 [61.17 |
% %] |
65.41 [82.56 |
% %] | ||||||
Claims under close observation |
257,912 [519,276 |
] |
36,019 [100,011 |
] |
|
140,168 [168,880 |
] |
30.59 [28.54 |
% %] |
68.31 [51.78 |
% %] | ||||||
Sub total (1) |
1,231,430 [992,778 |
] |
296,779 [210,381 |
] |
|
540,962 [465,305 |
] |
42.98 [39.88 |
% %] |
68.02 [68.06 |
% %] | ||||||
Normal claims |
39,062,829 [37,852,472 |
] |
|||||||||||||||
Total (2) |
40,294,260 [38,845,250 |
] |
|||||||||||||||
Sub total (1) / Total (2) |
3.05 [2.55 |
% ]% |
Note: The upper figures are as of September 30, 2004. The lower figures with bracket are as of March 31, 2004.
34
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 September 30, 2000 |
As of March 31, 2001 |
As of September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
||||||||||||||
(b) (a) |
||||||||||||||||||||||
Claims to bankrupt and substantially bankrupt debtors |
274.3 | 144.3 | 150.6 | 144.9 | 210.9 | 38.7 | 19.0 | 14.9 | 6.3 | (8.6 | ) | |||||||||||
Claims under high risk |
1,053.5 | 944.9 | 758.4 | 538.4 | 193.6 | 13.5 | 10.3 | 7.4 | 7.1 | (0.3 | ) | |||||||||||
Total |
1,327.8 | 1,089.2 | 909.0 | 683.4 | 404.6 | 52.3 | 29.3 | 22.4 | 13.5 | (A) | (8.9 | )(B) | ||||||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
(0.0 | ) | |
Re-constructive disposition |
0.1 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
0.1 | ||
Charge-off |
8.2 | ||
Other |
0.3 | ||
Collection of claims |
0.3 | ||
Improvements in financial status |
| ||
Total |
8.9 | (B) | |
Above (A) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.6 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
2.4 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
3.1 | |
(2) | Assets newly categorized as problem assets during second half of fiscal 2000 based on the FRL |
(in billions of yen) |
||||||||||||||||||||
As of March 31, 2001 |
As of September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
||||||||||||
Claims to bankrupt and substantially bankrupt debtors |
106.8 | 98.3 | 94.3 | 44.0 | 18.6 | 17.8 | 14.7 | 14.0 | (0.6 | ) | ||||||||||
Claims under high risk |
635.3 | 575.4 | 447.4 | 269.3 | 72.5 | 49.1 | 30.7 | 25.5 | (5.2 | ) | ||||||||||
Total |
742.2 | 673.7 | 541.8 | 313.3 | 91.2 | 67.0 | 45.5 | 39.6 | (C) | (5.8 | )(D) | |||||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
| ||
Re-constructive disposition |
0.0 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
0.4 | ||
Charge-off |
0.0 | ||
Other |
5.3 | ||
Collection of claims |
2.3 | ||
Improvements in financial status |
2.9 | ||
Total |
5.8 | (D) | |
Above (C) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.8 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
12.9 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
13.8 | |
35
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 September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
|||||||||||
Claims to bankrupt and substantially bankrupt debtors | 27.1 | 25.6 | 26.4 | 17.8 | 11.4 | 6.7 | 5.5 | (1.2 | ) | |||||||||
Claims under high risk |
257.0 | 140.1 | 79.9 | 47.2 | 27.9 | 17.7 | 14.2 | (3.5 | ) | |||||||||
Total |
284.2 | 165.8 | 106.3 | 65.1 | 39.4 | 24.5 | 19.8 | (E) | (4.7 | ) (F) | ||||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
(0.0 | ) | |
Re-constructive disposition |
0.0 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
1.2 | ||
Charge-off |
0.1 | ||
Other |
3.3 | ||
Collection of claims |
2.3 | ||
Improvements in financial status |
0.9 | ||
Total |
4.7 | (F) | |
Above (E) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.3 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
5.1 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
5.5 | |
(4) Assets newly categorized as problem assets during second half of fiscal 2001 based on the FRL
(in billions of yen) |
||||||||||||||||
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
||||||||||
Claims to bankrupt and substantially bankrupt debtors |
57.3 | 35.4 | 14.7 | 12.3 | 4.7 | 4.6 | (0.1 | ) | ||||||||
Claims under high risk |
315.9 | 162.4 | 104.1 | 48.5 | 28.3 | 25.8 | (2.4 | ) | ||||||||
Total |
373.2 | 197.9 | 118.9 | 60.8 | 33.0 | 30.4 | (G) | (2.6 | ) (H) | |||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
0.2 | ||
Re-constructive disposition |
0.0 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
0.0 | ||
Charge-off |
0.2 | ||
Other |
2.0 | ||
Collection of claims |
1.6 | ||
Improvements in financial status |
0.3 | ||
Total |
2.6 | (H) | |
Above (G) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.8 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
3.7 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
4.6 | |
36
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 September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
|||||||||
Claims to bankrupt and substantially bankrupt debtors |
24.6 | 19.8 | 16.7 | 9.1 | 6.1 | (3.0 | ) | |||||||
Claims under high risk |
279.9 | 143.5 | 82.7 | 47.2 | 34.2 | (13.0 | ) | |||||||
Total |
304.5 | 163.3 | 99.5 | 56.4 | 40.3 | (I) | (16.0 | )(J) | ||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
0.0 | ||
Re-constructive disposition |
1.1 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
1.5 | ||
Charge-off |
0.8 | ||
Other |
12.4 | ||
Collection of claims |
5.4 | ||
Improvements in financial status |
7.0 | ||
Total |
16.0 | (J) | |
Above (I) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.5 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
3.7 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
4.3 | |
(6) | Assets newly categorized as problem assets during second half of fiscal 2002 based on the FRL |
(in billions of yen) |
||||||||||||
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
||||||||
Claims to bankrupt and substantially bankrupt debtors |
26.7 | 32.0 | 22.0 | 19.5 | (2.4 | ) | ||||||
Claims under high risk |
390.7 | 169.1 | 115.7 | 59.3 | (56.4 | ) | ||||||
Total |
417.5 | 201.2 | 137.8 | 78.9 | (K) | (58.8 | )(L) | |||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
0.4 | ||
Re-constructive disposition |
(0.0 | ) | |
Improvements in financial status due to re-constructive disposition |
20.4 | ||
Loan sales to secondary market |
2.0 | ||
Charge-off |
0.9 | ||
Other |
35.1 | ||
Collection of claims |
10.8 | ||
Improvements in financial status |
24.2 | ||
Total |
58.8 | (L) | |
Above (K) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
2.1 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
5.7 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
7.9 | |
37
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 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
|||||||
Claims to bankrupt and substantially bankrupt debtors |
14.3 | 8.8 | 4.9 | (3.9 | ) | |||||
Claims under high risk |
118.2 | 73.3 | 53.1 | (20.1 | ) | |||||
Total |
132.5 | 82.2 | 58.1 | (M) | (24.1 | )(N) | ||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
0.1 | ||
Re-constructive disposition |
0.5 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
2.2 | ||
Charge-off |
0.9 | ||
Other |
20.1 | ||
Collection of claims |
8.6 | ||
Improvements in financial status |
11.4 | ||
Total |
24.1 | (N) | |
Above (M) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
1.5 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
3.4 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
4.9 | |
(8) | Assets newly categorized as problem assets during second half of fiscal 2003 based on the FRL |
(in billions of yen) |
||||||||
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
||||||
Claims to bankrupt and substantially bankrupt debtors |
9.5 | 5.4 | (4.1 | ) | ||||
Claims under high risk |
61.8 | 25.2 | (36.5 | ) | ||||
Total |
71.3 | 30.6 | (O) | (40.7 | )(P) | |||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
1.2 | ||
Re-constructive disposition |
3.2 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
15.9 | ||
Charge-off |
2.4 | ||
Other |
17.8 | ||
Collection of claims |
13.0 | ||
Improvements in financial status |
4.7 | ||
Total |
40.7 | (P) | |
Above (O) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
2.6 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
2.6 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
5.3 | |
38
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(9) Assets newly categorized as problem assets during first half of fiscal 2004 based on the FRL
(in billions of yen) |
|||
As of 2004 |
|||
Claims to bankrupt and substantially bankrupt debtors |
4.7 | ||
Claims under high risk |
657.2 | ||
Total |
661.9 | (Q) | |
Above (Q) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
2.0 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
2.6 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
4.6 | |
(10) Historical trend of problem assets based on the FRL
(in billions of yen) |
|||||||||||||||||||||
As of September 30, 2000 |
As of March 31, 2001 |
As of September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
||||||||||||
Claims to bankrupt and substantially bankrupt debtors |
274.3 | 251.2 | 276.1 | 322.3 | 341.5 | 136.6 | 123.9 | 90.9 | 71.4 | (19.4 | ) | ||||||||||
Claims under high risk |
1,053.5 | 1,580.2 | 1,590.9 | 1,442.0 | 985.3 | 772.0 | 506.1 | 382.5 | 902.0 | 519.5 | |||||||||||
Total |
1,327.8 | 1,831.4 | 1,867.0 | 1,764.4 | 1,326.9 | 908.6 | 630.0 | 473.5 | 973.5 | 500.0 | |||||||||||
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 September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic offices (excluding loans booked at offshore markets) |
31,730,000 | 1,949,659 | 1,052,358 | 29,780,340 | 30,677,641 | |||||||
Manufacturing |
4,081,650 | (87,837 | ) | (40,220 | ) | 4,169,487 | 4,121,870 | |||||
Agriculture |
10,050 | (2,272 | ) | (545 | ) | 12,322 | 10,595 | |||||
Forestry |
4,784 | (447 | ) | (103 | ) | 5,231 | 4,887 | |||||
Fishery |
2,663 | 89 | 210 | 2,574 | 2,453 | |||||||
Mining |
29,418 | (5,853 | ) | (1,179 | ) | 35,271 | 30,597 | |||||
Construction |
773,380 | (91,268 | ) | (23,390 | ) | 864,648 | 796,770 | |||||
Utilities |
242,928 | (19,959 | ) | (5,608 | ) | 262,887 | 248,536 | |||||
Media and Communication |
556,887 | (88,399 | ) | (47,076 | ) | 645,286 | 603,963 | |||||
Wholesale and Retail |
3,827,219 | (351,044 | ) | (129,643 | ) | 4,178,263 | 3,956,862 | |||||
Banks and other financial institutions |
2,361,089 | 381,067 | 475,350 | 1,980,022 | 1,885,739 | |||||||
Real estate |
3,524,956 | 83,743 | 69,852 | 3,441,213 | 3,455,104 | |||||||
Services |
3,856,653 | (566,691 | ) | (41,549 | ) | 4,423,344 | 3,898,202 | |||||
Municipal government |
39,464 | 8,343 | 6,397 | 31,121 | 33,067 | |||||||
Other industries |
12,418,859 | 2,690,187 | 789,862 | 9,728,671 | 11,628,996 | |||||||
Overseas offices and loans booked at offshore markets |
4,271,958 | (208,162 | ) | 132,959 | 4,480,120 | 4,138,998 | ||||||
Total |
36,001,958 | 1,741,496 | 1,185,317 | 34,260,461 | 34,816,640 | |||||||
(2) | Domestic consumer loans [Non-Consolidated] |
(in millions of yen) | ||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Total domestic consumer loans |
7,974,102 | 261,662 | 175,137 | 7,712,440 | 7,798,965 | |||||||
Housing loans |
7,562,169 | 314,275 | 198,710 | 7,247,894 | 7,363,459 | |||||||
Others |
411,933 | (52,613 | ) | (23,573 | ) | 464,546 | 435,506 |
(3) | Domestic loans to small and medium-sized companies [Non-Consolidated] |
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Domestic loans to small and medium-sized companies |
17,585,118 | 129,772 | 256,126 | 17,455,345 | 17,328,991 | ||||||||||
Percentage to total domestic loans |
55.42 | % | (3.19 | )% | (1.06 | )% | 58.61 | % | 56.48 | % |
40
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
9. | Loans and Deposits [Non-Consolidated] |
(in millions of yen) | ||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, | ||||||
(A) (B) |
(A) (C) |
|||||||||
Deposits (ending balance) |
52,351,389 | 1,953,430 | 531,973 | 50,397,958 | 51,819,415 | |||||
Deposits (average balance) |
51,429,113 | 2,649,716 | 2,142,964 | 48,779,396 | 49,286,149 | |||||
Loans (ending balance) |
36,001,958 | 1,741,496 | 1,185,317 | 34,260,461 | 34,816,640 | |||||
Loans (average balance) |
35,015,495 | 641,784 | 355,059 | 34,373,711 | 34,660,436 |
10. | Domestic Deposits [Non-Consolidated] |
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Individuals |
27,085,776 | 853,371 | 417,827 | 26,232,405 | 26,667,948 | |||||||
Corporations and others |
17,676,984 | (242,496 | ) | (55,860 | ) | 17,919,481 | 17,732,845 | |||||
Domestic deposits |
44,762,761 | 610,874 | 361,967 | 44,151,886 | 44,400,794 |
Note: Amounts do not include negotiable certificates of deposit, deposits of overseas offices and JOM accounts.
11. | Number of Employees [Non-Consolidated] |
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) - (B) |
(A) - (C) |
|||||||||||
Number of Employees |
14,351 | (711 | ) | (117 | ) | 15,062 | 14,468 |
12. | Number of Offices [Non-Consolidated] |
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic |
267 | (6 | ) | | 273 | 267 | ||||||
Head office and Branches |
247 | (7 | ) | (2 | ) | 254 | 249 | |||||
Sub-branches and Agencies |
20 | 1 | 2 | 19 | 18 | |||||||
Overseas |
73 | | | 73 | 73 | |||||||
Branches |
42 | | (1 | ) | 42 | 43 | ||||||
Sub-branches |
15 | 1 | 1 | 14 | 14 | |||||||
Representative offices |
16 | (1 | ) | | 17 | 16 | ||||||
Total |
340 | (6 | ) | | 346 | 340 | ||||||
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, 2004 |
||||||
vs. Mar. 31, 2004 |
||||||
Deferred Tax Assets |
727.4 | (73.9 | ) | |||
Allowance for loan losses |
236.0 | 3.8 | ||||
Write-down of investment securities |
82.1 | (1.2 | ) | |||
Net operating loss carryforwards |
407.1 | (78.0 | ) | |||
Reserve for employees retirement benefits |
31.9 | 1.6 | ||||
Unrealized losses on securities available for sale |
| | ||||
Other |
37.2 | (0.4 | ) | |||
Valuation allowance |
(67.1 | ) | 0.2 | |||
Deferred tax liabilities |
225.2 | (48.4 | ) | |||
Gains on placing trust for retirement benefits |
7.3 | | ||||
Unrealized gains on securities available for sale |
213.9 | (45.5 | ) | |||
Other |
3.9 | (2.9 | ) | |||
Net Deferred Tax Assets |
502.1 | (25.4 | ) | |||
[Consolidated] |
||||||
Net Deferred Tax Assets |
436.8 | (24.0 | ) |
(2) | Net Business Profits before Credit Costs and Taxable Income (Current Interim Fiscal Year) |
[Non-Consolidated]
(in billions of yen) | ||
Interim FY 2004 | ||
Net business profits before credit costs |
233.4 | |
Credit related costs |
38.1 | |
Income before income taxes |
176.1 | |
Reconciliation to taxable income |
10.3 | |
Taxable income |
186.5 |
(3) | Net Business Profits before Credit Costs and Taxable Income (Past Five Fiscal Years) |
[Non-Consolidated]
(in billions of yen) |
||||||||||||||
FY 1999 |
FY 2000 |
FY 2001 |
FY 2002 |
FY 2003 |
||||||||||
Net business profits before credit costs |
400.8 | 388.9 | 463.3 | 511.5 | 466.8 | |||||||||
Credit related costs |
504.5 | 554.0 | 484.8 | 341.0 | (135.3 | ) | ||||||||
Income before income taxes |
279.9 | (225.3 | ) | (317.4 | ) | (287.3 | ) | 587.7 | ||||||
Reconciliation to taxable income |
82.1 | 393.0 | 137.3 | (821.7 | ) | (404.1 | ) | |||||||
Taxable income |
362.1 | 167.6 | (180.0 | ) | (1,109.0 | ) | 183.5 |
(4) | Classification Based on Prior Year Operating Results as Provided in the JICPA Audit Committee Report No.66 |
Although we recorded taxable income for the six months ended September 30, 2004, 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 followings : (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, 2004 (Assumptions) |
(in billions of yen) | ||
Five year total (2004 2nd half to 2009 1st half) | ||
Net business profits (based on our business plan) (*1) |
3,870.0 | |
Net business profits (basis of realizability determination) (*2) |
3,110.0 | |
Income before income taxes (basis of realizability determination) |
2,570.0 | |
Taxable income before adjustments (basis of realizability determination) (*3) |
2,890.0 | |
Temporary difference + net operating loss carryforwards (for which deferred tax assets shall be recognized) |
1,801.2 | |
Deferred tax assets at September 30, 2004 (*4) |
727.4 |
(*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) | Temporary difference + net operating loss carryforwards (for which deferred tax assets shall be recognized) multiplied by effective tax rate |
(Reference) Assumptions for Business Plan
FY 2004 2nd half |
FY 2005 |
FY 2006 |
FY 2007 |
FY2008 |
FY 2009 1st half |
|||||||||||||||||||
S/T interest rate (3 m/s TIBOR) |
0.08 | % | 0.13 | % | 0.50 | % | 0.57 | % | 0.88 | % | 1.12 | % | ||||||||||||
L/T interest rate (10 year JGB) |
1.78 | % | 1.90 | % | 2.30 | % | 2.03 | % | 2.58 | % | 2.95 | % | ||||||||||||
Exchange rate (USD/Yen) |
¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 |
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, 2004 |
|||||
Projected benefits obligation at beginning of the period |
(A-B+C+D+G+J) | 577,647 | |||
Fair value of plan assets at beginning of the period |
(A) | 506,585 | |||
Prepaid pension cost at beginning of the period |
(B) | 54,442 | |||
Reserve for employees retirement benefits at beginning of the period |
(C) | 13,376 | |||
Unrecognized net obligation by the change of accounting policy at beginning of the period |
(D) | 11,199 | |||
Amortization for the current period (Amortized period 5 years) |
(E) | 5,599 | |||
Unrecognized net obligation at end of the interim period |
(F) | 5,599 | |||
Unrecognized prior service cost at beginning of the period |
(G) | (31,371 | ) | ||
Amortization for the current period (Amortized period 10 years) |
(H) | (1,836 | ) | ||
Unrecognized prior service cost at end of the interim period |
(I) | (29,535 | ) | ||
Unrecognized net actuarial loss at beginning of the period |
(J) | 132,299 | |||
Amortization for the current period (Amortized period 10 years) |
(K) | 8,820 | |||
Unrecognized net actuarial loss at end of the interim period |
(L) | 123,479 | |||
Net amount unrecognized at beginning of the period |
(M)(D+G+J) | 112,128 | |||
Net amount amortized for the current period |
(N)(E+H+K) | 12,583 | |||
Net amount unrecognized at end of the interim period |
(O)(M-N) | 99,544 |
Note : Discount rate is 2.1%.
43
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
15. | Earning Projections for the Fiscal Year Ending March 31, 2005 |
[Consolidated]
(in billions of yen) | ||||
For the year ending March 31, 2005 |
For the six months ended September 30, 2004 | |||
Ordinary income |
2,000.0 | 1,019.3 | ||
Ordinary profit |
525.0 | 248.2 | ||
Net income |
275.0 | 136.5 |
[Non-Consolidated]
(in billions of yen) | ||||
For the year ending March 31, 2005 |
For the six months ended September 30, 2004 | |||
Ordinary income |
1,500.0 | 728.4 | ||
Ordinary profit |
380.0 | 171.0 | ||
Net income |
210.0 | 108.1 | ||
Net business profits before provision for formula allowance for loan losses |
500.0 | 233.4 |
44
Selected Interim Financial Information
under Japanese GAAP
For the Fiscal Year Ending March 31, 2005
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, 2005 |
1. Consolidated Balance Sheets | 45 | |||||
2. Consolidated Statements of Operations | 46 | |||||
3. Consolidated Statements 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 [Consolidated] | 50 | |||||
7. Comparison of Statement of Trust Assets and Liabilities | [Non-Consolidated], [Trust] | 51 | ||||
8. Financial Results | [Consolidated], [Non-Consolidated] | 54 | ||||
9. Average Interest Rate Spread | [Non-Consolidated] | 56 | ||||
10. Valuation Differences on Securities | [Consolidated], [Non-Consolidated] [Trust] |
56 | ||||
11. Risk-Adjusted Capital Ratio Based on the Standards of the BIS |
[Consolidated], [Non-Consolidated] | 57 | ||||
2 |
Loan Portfolio and Other | |||||
[Consolidated], | ||||||
[Non-Consolidated], [Trust] | ||||||
[Non-Consolidated and Trust], | ||||||
1. Risk-Monitored Loans | [Consolidated and Trust] | 58 | ||||
2. Classification of Risk-Monitored Loans | [Consolidated and Trust] | 60 | ||||
3. Allowance for Loan Losses | [Consolidated], [Non-Consolidated], [Trust] | 61 | ||||
4. Coverage Ratio against Risk-Monitored Loans | [Consolidated], [Non-Consolidated] | 61 | ||||
5. Disclosed Claims under the Financial Reconstruction Law(theFRL) | [Non-Consolidated], [Trust] | 62 | ||||
[Non-Consolidated and Trust] | ||||||
6. Status of Secured Coverage on Disclosed Claims under the FRL | [Non-Consolidated], [Trust] | 63 | ||||
[Non-Consolidated and Trust] | ||||||
7. Progress in the Disposal of Problem Assets | [Non-Consolidated and Trust] | 65 | ||||
8. Classification of Loans by Type of Industry | [Non-Consolidated], [Trust] | 70 | ||||
[Non-Consolidated and Trust] | ||||||
9. Loans and Deposits | [Non-Consolidated] | 73 | ||||
10. Domestic Deposits | [Non-Consolidated] | 73 | ||||
11. Number of Employees | [Non-Consolidated] | 73 | ||||
12. Number of Offices | [Non-Consolidated] | 73 | ||||
13. Status of Deferred Tax Assets | [Non-Consolidated] | 74 | ||||
14. Employees Retirement Benefits | [Non-Consolidated] | 75 | ||||
15. Earning Projections for the Fiscal Year Ending March 31, 2005 | [Consolidated], [Non-Consolidated] | 76 |
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, 2005
(Japanese GAAP)
1. Consolidated Balance Sheets
As of September 30, |
Increase/ (Decrease) (A) (B) |
As of March 31, |
Increase/ (Decrease) (A) (C) |
||||||||||||
(in millions of yen) | 2004 (A) |
2003 (B) |
2004 (C) |
||||||||||||
Assets: |
|||||||||||||||
Cash and due from banks |
869,083 | 1,085,451 | (216,367 | ) | 1,311,942 | (442,858 | ) | ||||||||
Call loans and bills bought |
210,627 | 112,593 | 98,033 | 211,800 | (1,172 | ) | |||||||||
Receivables under securities borrowing transactions |
964,561 | 1,931,532 | (966,970 | ) | 1,042,049 | (77,488 | ) | ||||||||
Commercial paper and other debt purchased |
62,708 | 23,076 | 39,631 | 40,851 | 21,856 | ||||||||||
Trading assets |
319,373 | 376,341 | (56,968 | ) | 277,967 | 41,406 | |||||||||
Money held in trust |
6,880 | 10,142 | (3,262 | ) | 6,953 | (73 | ) | ||||||||
Investment securities |
6,814,258 | 6,038,108 | 776,149 | 7,415,627 | (601,369 | ) | |||||||||
Allowance for losses on investment securities |
(19 | ) | (81 | ) | 61 | (25 | ) | 5 | |||||||
Loans and bills discounted |
8,660,203 | 8,499,575 | 160,627 | 8,588,926 | 71,276 | ||||||||||
Foreign exchanges |
9,946 | 12,925 | (2,979 | ) | 10,717 | (770 | ) | ||||||||
Other assets |
546,230 | 1,082,852 | (536,622 | ) | 790,162 | (243,931 | ) | ||||||||
Premises and equipment |
162,651 | 176,130 | (13,479 | ) | 166,218 | (3,567 | ) | ||||||||
Deferred tax assets |
210,875 | 271,981 | (61,106 | ) | 186,617 | 24,257 | |||||||||
Deferred tax assets on land revaluation losses |
| 1,803 | (1,803 | ) | | | |||||||||
Customers liabilities for acceptances and guarantees |
216,561 | 358,941 | (142,379 | ) | 230,475 | (13,913 | ) | ||||||||
Allowance for loan losses |
(192,674 | ) | (268,813 | ) | 76,138 | (202,584 | ) | 9,909 | |||||||
Total assets |
18,861,266 | 19,712,561 | (851,294 | ) | 20,077,700 | (1,216,433 | ) | ||||||||
Liabilities: |
|||||||||||||||
Deposits |
10,506,179 | 10,531,669 | (25,489 | ) | 10,846,664 | (340,484 | ) | ||||||||
Negotiable certificates of deposit |
1,348,808 | 1,088,064 | 260,744 | 1,348,411 | 397 | ||||||||||
Call money and bills sold |
907,398 | 477,683 | 429,715 | 1,157,889 | (250,490 | ) | |||||||||
Payables under repurchase agreements |
653,132 | 311,650 | 341,481 | 503,988 | 149,143 | ||||||||||
Payables under securities lending transactions |
1,472,245 | 2,939,215 | (1,466,970 | ) | 1,991,528 | (519,283 | ) | ||||||||
Commercial paper |
323,600 | 422,000 | (98,400 | ) | 396,000 | (72,400 | ) | ||||||||
Trading liabilities |
63,110 | 92,273 | (29,163 | ) | 75,374 | (12,264 | ) | ||||||||
Borrowed money |
212,540 | 205,096 | 7,443 | 202,124 | 10,415 | ||||||||||
Foreign exchanges |
3,908 | 16,447 | (12,539 | ) | 12,865 | (8,957 | ) | ||||||||
Short-term corporate bonds |
71,300 | | 71,300 | 40,000 | 31,300 | ||||||||||
Bonds and notes |
402,199 | 388,900 | 13,299 | 383,899 | 18,300 | ||||||||||
Due to trust account |
1,367,460 | 1,336,541 | 30,919 | 1,380,268 | (12,808 | ) | |||||||||
Other liabilities |
370,684 | 703,136 | (332,451 | ) | 504,940 | (134,256 | ) | ||||||||
Reserve for employees bonuses |
3,741 | 3,817 | (75 | ) | 3,756 | (14 | ) | ||||||||
Reserve for employees retirement benefits |
1,302 | 1,884 | (581 | ) | 1,068 | 233 | |||||||||
Reserve for expenses related to EXPO 2005 Japan |
80 | 39 | 41 | 60 | 20 | ||||||||||
Deferred tax liabilities |
| 78 | (78 | ) | 91 | (91 | ) | ||||||||
Deferred tax liabilities on land revaluation excess |
8,425 | 1,699 | 6,726 | 8,517 | (92 | ) | |||||||||
Acceptances and guarantees |
216,561 | 358,941 | (142,379 | ) | 230,475 | (13,913 | ) | ||||||||
Total liabilities |
17,932,681 | 18,879,140 | (946,459 | ) | 19,087,926 | (1,155,245 | ) | ||||||||
Minority interest |
4,376 | 3,815 | 561 | 4,499 | (122 | ) | |||||||||
Shareholders equity: |
|||||||||||||||
Capital stock |
324,279 | 324,279 | | 324,279 | | ||||||||||
Capital surplus |
274,752 | 274,752 | | 274,752 | | ||||||||||
Retained earnings |
221,592 | 155,191 | 66,400 | 216,076 | 5,515 | ||||||||||
Land revaluation excess |
(9,351 | ) | (302 | ) | (9,048 | ) | (9,586 | ) | 235 | ||||||
Unrealized gains on securities available for sale |
119,713 | 80,361 | 39,351 | 187,336 | (67,623 | ) | |||||||||
Foreign currency translation adjustments |
(6,776 | ) | (4,676 | ) | (2,100 | ) | (7,584 | ) | 807 | ||||||
Total shareholders equity |
924,208 | 829,605 | 94,603 | 985,273 | (61,065 | ) | |||||||||
Total liabilities, minority interest and shareholders equity |
18,861,266 | 19,712,561 | (851,294 | ) | 20,077,700 | (1,216,433 | ) | ||||||||
45
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
2. Consolidated Statements of Operations
For the six months ended September 30, |
Increase/ (A) (B) |
For the year ended March 31, 2004 |
|||||||||
(in millions of yen) | 2004 (A) |
2003 (B) |
|||||||||
Ordinary income: |
|||||||||||
Trust fees |
37,573 | 27,829 | 9,743 | 70,487 | |||||||
Interest income: |
131,221 | 160,205 | (28,984 | ) | 300,665 | ||||||
(Interest on loans and discounts) |
48,663 | 50,019 | (1,355 | ) | 100,352 | ||||||
(Interest and dividends on securities) |
62,687 | 85,527 | (22,840 | ) | 158,415 | ||||||
Fees and commissions |
36,239 | 29,020 | 7,218 | 63,582 | |||||||
Trading profits |
4,554 | 2,243 | 2,311 | 2,612 | |||||||
Other business income |
22,928 | 45,380 | (22,452 | ) | 50,094 | ||||||
Other ordinary income |
10,176 | 22,694 | (12,517 | ) | 34,044 | ||||||
Total ordinary income |
242,692 | 287,373 | (44,680 | ) | 521,485 | ||||||
Ordinary expenses: |
|||||||||||
Interest expense: |
38,515 | 54,027 | (15,511 | ) | 94,821 | ||||||
(Interest on deposits) |
18,375 | 17,719 | 656 | 34,794 | |||||||
Fees and commissions |
5,408 | 6,480 | (1,071 | ) | 11,850 | ||||||
Trading losses |
| | | 244 | |||||||
Other business expenses |
25,982 | 27,131 | (1,148 | ) | 40,419 | ||||||
General and administrative expenses |
82,864 | 90,349 | (7,484 | ) | 176,601 | ||||||
Other ordinary expenses |
27,945 | 30,237 | (2,292 | ) | 50,145 | ||||||
Total ordinary expenses |
180,717 | 208,226 | (27,509 | ) | 374,083 | ||||||
Ordinary profit |
61,975 | 79,147 | (17,171 | ) | 147,402 | ||||||
Special gains |
8,929 | 13,210 | (4,280 | ) | 16,486 | ||||||
Special losses |
3,955 | 18,009 | (14,053 | ) | 23,881 | ||||||
Income before income taxes and others |
66,949 | 74,348 | (7,399 | ) | 140,006 | ||||||
Income taxes-current |
13,423 | (19,007 | ) | 32,430 | (31,401 | ) | |||||
Income taxes-deferred |
22,035 | 28,658 | (6,622 | ) | 39,708 | ||||||
Minority interest |
387 | 728 | (341 | ) | 1,452 | ||||||
Net income |
31,103 | 63,969 | (32,865 | ) | 130,247 | ||||||
46
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
3. Consolidated Statements of Capital Surplus and Retained Earnings
(in millions of yen) |
For the six months ended September 30, |
Increase/ (Decrease) (A) (B) |
For the year ended March 31, 2004 |
|||||||||
2004(A) |
2003(B) |
|||||||||||
Balance of capital surplus at beginning of fiscal year |
274,752 | 274,752 | | 274,752 | ||||||||
Balance of capital surplus at end of (interim) fiscal year |
274,752 | 274,752 | | 274,752 | ||||||||
Balance of retained earnings at beginning of fiscal year |
216,076 | 102,888 | 113,187 | 102,888 | ||||||||
Increase: |
31,103 | 63,969 | (32,865 | ) | 130,270 | |||||||
Net income |
31,103 | 63,969 | (32,865 | ) | 130,247 | |||||||
Decrease in consolidated subsidiaries |
| | | 22 | ||||||||
Decrease: |
(25,587 | ) | (11,666 | ) | (13,921 | ) | (17,082 | ) | ||||
Cash dividends |
(25,350 | ) | (9,898 | ) | (15,452 | ) | (15,674 | ) | ||||
Reduction in land revaluation excess |
(237 | ) | (1,768 | ) | 1,530 | (1,407 | ) | |||||
Balance of retained earnings at end of (interim) fiscal year |
221,592 | 155,191 | 66,400 | 216,076 | ||||||||
47
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
4. Non-Consolidated Balance Sheets
As of September 30, |
Increase/ (Decrease) (A) (B) |
As of March 31, 2004 (C) |
Increase/ (Decrease) (A) (C) |
||||||||||||
(in millions of yen) | 2004 (A) |
2003 (B) |
|||||||||||||
Assets: |
|||||||||||||||
Cash and due from banks |
778,413 | 813,957 | (35,543 | ) | 1,221,929 | (443,515 | ) | ||||||||
Call loans |
210,522 | 112,593 | 97,928 | 176,600 | 33,922 | ||||||||||
Receivables under securities borrowing transactions |
505,169 | 1,117,283 | (612,114 | ) | 450,049 | 55,119 | |||||||||
Bills bought |
| | | 35,200 | (35,200 | ) | |||||||||
Commercial paper and other debt purchased |
61,702 | 23,076 | 38,626 | 40,851 | 20,850 | ||||||||||
Trading assets |
319,373 | 376,341 | (56,968 | ) | 277,967 | 41,406 | |||||||||
Money held in trust |
6,880 | 10,142 | (3,262 | ) | 6,953 | (73 | ) | ||||||||
Investment securities |
6,817,581 | 6,044,696 | 772,885 | 7,416,391 | (598,809 | ) | |||||||||
Allowance for losses on investment securities |
(19 | ) | (403 | ) | 383 | (25 | ) | 5 | |||||||
Loans and bills discounted |
8,646,843 | 8,477,601 | 169,242 | 8,573,188 | 73,654 | ||||||||||
Foreign exchanges |
9,946 | 12,947 | (3,001 | ) | 10,717 | (770 | ) | ||||||||
Other assets |
540,850 | 1,074,053 | (533,203 | ) | 783,933 | (243,082 | ) | ||||||||
Premises and equipment |
138,580 | 152,153 | (13,572 | ) | 141,787 | (3,206 | ) | ||||||||
Deferred tax assets |
209,530 | 271,086 | (61,556 | ) | 185,281 | 24,248 | |||||||||
Deferred tax assets on land revaluation losses |
| 1,803 | (1,803 | ) | | | |||||||||
Customers liabilities for acceptances and guarantees |
218,638 | 370,664 | (152,025 | ) | 245,371 | (26,733 | ) | ||||||||
Allowance for loan losses |
(191,947 | ) | (268,350 | ) | 76,402 | (201,986 | ) | 10,039 | |||||||
Total assets |
18,272,064 | 18,589,647 | (317,582 | ) | 19,364,209 | (1,092,144 | ) | ||||||||
Liabilities: |
|||||||||||||||
Deposits |
10,466,006 | 10,511,433 | (45,426 | ) | 10,844,731 | (378,724 | ) | ||||||||
Negotiable certificates of deposit |
1,348,808 | 1,088,064 | 260,744 | 1,347,875 | 932 | ||||||||||
Call money |
291,598 | 369,583 | (77,984 | ) | 505,489 | (213,890 | ) | ||||||||
Payables under repurchase agreements |
653,132 | 311,650 | 341,481 | 503,988 | 149,143 | ||||||||||
Payables under securities lending transactions |
1,004,154 | 1,893,685 | (889,530 | ) | 1,334,914 | (330,760 | ) | ||||||||
Bills sold |
615,800 | 108,100 | 507,700 | 652,400 | (36,600 | ) | |||||||||
Commercial paper |
323,600 | 422,000 | (98,400 | ) | 396,000 | (72,400 | ) | ||||||||
Trading liabilities |
63,100 | 92,273 | (29,173 | ) | 75,374 | (12,274 | ) | ||||||||
Borrowed money |
308,160 | 325,009 | (16,848 | ) | 319,922 | (11,761 | ) | ||||||||
Foreign exchanges |
3,909 | 16,449 | (12,540 | ) | 12,875 | (8,965 | ) | ||||||||
Short-term corporate bonds |
71,300 | | 71,300 | 40,000 | 31,300 | ||||||||||
Bonds and notes |
283,800 | 242,800 | 41,000 | 242,800 | 41,000 | ||||||||||
Due to trust account |
1,367,460 | 1,336,541 | 30,919 | 1,380,268 | (12,808 | ) | |||||||||
Other liabilities |
326,926 | 673,769 | (346,842 | ) | 474,024 | (147,097 | ) | ||||||||
Reserve for employees bonuses |
2,975 | 3,119 | (143 | ) | 3,013 | (38 | ) | ||||||||
Reserve for employees retirement benefits |
187 | 859 | (671 | ) | | 187 | |||||||||
Reserve for expenses related to EXPO 2005 Japan |
80 | 39 | 41 | 60 | 20 | ||||||||||
Deferred tax liabilities on land revaluation excess |
6,480 | | 6,480 | 6,508 | (28 | ) | |||||||||
Acceptances and guarantees |
218,638 | 370,664 | (152,025 | ) | 245,371 | (26,733 | ) | ||||||||
Total liabilities |
17,356,120 | 17,766,042 | (409,922 | ) | 18,385,618 | (1,029,498 | ) | ||||||||
Shareholders equity: |
|||||||||||||||
Capital stock |
324,279 | 324,279 | | 324,279 | | ||||||||||
Capital surplus |
274,752 | 274,752 | | 274,752 | | ||||||||||
Capital reserve |
274,752 | 274,752 | | 274,752 | | ||||||||||
Retained earnings |
206,862 | 147,247 | 59,614 | 202,359 | 4,502 | ||||||||||
Revenue reserve |
49,526 | 49,409 | 117 | 49,526 | | ||||||||||
Voluntary reserves |
109,206 | 19,207 | 89,999 | 19,207 | 89,999 | ||||||||||
Unappropriated profit |
48,128 | 78,630 | (30,501 | ) | 133,624 | (85,496 | ) | ||||||||
Net income |
30,181 | 60,965 | (30,784 | ) | 122,781 | (92,600 | ) | ||||||||
Land revaluation excess |
(9,074 | ) | (2,649 | ) | (6,424 | ) | (9,403 | ) | 328 | ||||||
Unrealized gains on securities available for sale |
119,125 | 79,976 | 39,149 | 186,603 | (67,477 | ) | |||||||||
Total shareholders equity |
915,944 | 823,604 | 92,339 | 978,590 | (62,646 | ) | |||||||||
Total liabilities and shareholders equity |
18,272,064 | 18,589,647 | (317,582 | ) | 19,364,209 | (1,092,144 | ) | ||||||||
48
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
5. Non-Consolidated Statements of Operations
For the six months ended September 30, |
Increase/ (Decrease) (A) (B) |
For the year ended March 31, 2004 |
||||||||||
(in millions of yen) | 2004 (A) |
2003 (B) |
||||||||||
Ordinary income: |
||||||||||||
Trust fees |
37,573 | 27,829 | 9,743 | 70,487 | ||||||||
Interest income: |
123,940 | 150,440 | (26,500 | ) | 286,713 | |||||||
(Interest on loans and discounts) |
47,887 | 49,081 | (1,194 | ) | 98,734 | |||||||
(Interest and dividends on securities) |
62,423 | 84,975 | (22,551 | ) | 158,871 | |||||||
Fees and commissions |
30,644 | 25,206 | 5,437 | 56,645 | ||||||||
Trading profits |
3,637 | 1,109 | 2,527 | 648 | ||||||||
Other business income |
22,747 | 45,549 | (22,802 | ) | 49,554 | |||||||
Other ordinary income |
9,248 | 20,535 | (11,286 | ) | 28,547 | |||||||
Total ordinary income |
227,791 | 270,671 | (42,880 | ) | 492,595 | |||||||
Ordinary expenses: |
||||||||||||
Interest expense: |
33,042 | 47,133 | (14,090 | ) | 83,861 | |||||||
(Interest on deposits) |
18,324 | 18,660 | (335 | ) | 35,737 | |||||||
Fees and commissions |
5,649 | 6,726 | (1,076 | ) | 12,444 | |||||||
Trading losses |
| | | 244 | ||||||||
Other business expenses |
24,863 | 26,090 | (1,227 | ) | 38,460 | |||||||
General and administrative expenses |
77,731 | 85,172 | (7,441 | ) | 165,912 | |||||||
Other ordinary expenses |
26,875 | 30,778 | (3,903 | ) | 53,158 | |||||||
Total ordinary expenses |
168,162 | 195,902 | (27,739 | ) | 354,082 | |||||||
Ordinary profit |
59,628 | 74,769 | (15,141 | ) | 138,513 | |||||||
Special gains |
8,674 | 13,319 | (4,645 | ) | 15,993 | |||||||
Special losses |
3,790 | 17,413 | (13,622 | ) | 23,208 | |||||||
Income before income taxes and others |
64,511 | 70,675 | (6,163 | ) | 131,297 | |||||||
Income taxes-current |
12,313 | (18,896 | ) | 31,210 | (32,920 | ) | ||||||
Income taxes-deferred |
22,016 | 28,606 | (6,589 | ) | 41,436 | |||||||
Net income |
30,181 | 60,965 | (30,784 | ) | 122,781 | |||||||
Unappropriated retained earnings brought forward |
18,275 | 17,356 | 918 | 17,356 | ||||||||
Reduction in land revaluation excess |
(328 | ) | 307 | (636 | ) | (619 | ) | |||||
Interim dividends |
| | | 5,776 | ||||||||
Transfer to legal reserve |
| | | 117 | ||||||||
Unappropriated retained earnings |
48,128 | 78,630 | (30,501 | ) | 133,624 | |||||||
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
The publication is omitted in order to be disclosed by EDINET.
<Reference>
1. Derivatives qualified for hedge-accounting [Consolidated]
(in billions of yen) |
|||||
As of September 30, 2004 |
|||||
Notional principal or contract amount |
Market value |
||||
Interest rate futures |
| | |||
Interest rate swaps |
6,290.2 | 8.3 | |||
Currency swaps |
1,707.9 | (16.2 | ) | ||
Other interest rate-related transactions |
| | |||
Others |
| | |||
Total |
(7.8 | ) | |||
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, 2004 | ||||||||
Due within 1 year |
Due after 1 year through 5 years |
Due after 5 years |
Total | |||||
Receive-fix/pay-floater |
1,345.5 | 3,930.3 | 139.0 | 5,414.9 | ||||
Receive floater/pay-fix |
199.4 | 484.3 | 191.3 | 875.2 | ||||
Total |
1,545.0 | 4,414.7 | 330.4 | 6,290.2 | ||||
2. Deferred gains (losses) [Consolidated]
(in billions of yen) |
|||||||
As of September 30, 2004 |
|||||||
Deferred gains (A) |
Deferred losses (B) |
Net gains (losses) (A) (B) |
|||||
Interest rate futures |
| | | ||||
Interest rate swaps |
45.2 | 44.2 | 1.0 | ||||
Currency swaps |
1.2 | 0.7 | 0.4 | ||||
Other interest rate-related transactions |
| 0.1 | (0.1 | ) | |||
Others |
| | | ||||
Total |
46.4 | 45.1 | 1.2 | ||||
Note | : Deferred gains (losses) attributable to the macro hedge accounting as of September 30, 2004 are included in the above table. |
50
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/ (Decrease) (A) (B) |
As of March 31, |
Increase/ (Decrease) (A) (C) |
||||||||||
As of September 30, |
||||||||||||
(in millions of Yen) | 2004 (A) |
2003 (B) |
2004 (C) |
|||||||||
Assets: |
||||||||||||
Loans and bills discounted |
651,019 | 895,594 | (244,575 | ) | 735,872 | (84,853 | ) | |||||
Securities |
6,158,900 | 5,540,057 | 618,842 | 6,156,235 | 2,665 | |||||||
Beneficiary rights to the trust |
10,617,286 | 9,074,428 | 1,542,857 | 9,664,593 | 952,692 | |||||||
Securities held in custody accounts |
4,186,647 | 3,863,012 | 323,634 | 4,225,797 | (39,150 | ) | ||||||
Money claims |
3,986,427 | 3,447,631 | 538,795 | 3,988,567 | (2,140 | ) | ||||||
Premises and equipment |
2,518,697 | 1,862,032 | 656,664 | 2,327,330 | 191,367 | |||||||
Surface rights |
548 | | 548 | 548 | | |||||||
Lease rights |
23,608 | 23,791 | (183 | ) | 23,695 | (87 | ) | |||||
Other claims |
1,653,445 | 1,807,968 | (154,523 | ) | 1,193,978 | 459,466 | ||||||
Call loans |
124,388 | 341,520 | (217,132 | ) | 520,517 | (396,129 | ) | |||||
Due from banking account |
1,367,460 | 1,336,541 | 30,919 | 1,380,268 | (12,808 | ) | ||||||
Cash and due from banks |
1,627,434 | 1,480,557 | 146,877 | 1,557,583 | 69,851 | |||||||
Total assets |
32,915,863 | 29,673,137 | 3,242,725 | 31,774,989 | 1,140,873 | |||||||
Liabilities: |
||||||||||||
Money trusts |
7,516,676 | 6,731,357 | 785,318 | 7,525,601 | (8,925 | ) | ||||||
Pension trusts |
74,923 | 81,877 | (6,953 | ) | 63,411 | 11,512 | ||||||
Property formation benefit trusts |
12,724 | 12,344 | 380 | 12,958 | (233 | ) | ||||||
Loan trusts |
673,111 | 945,709 | (272,598 | ) | 792,932 | (119,821 | ) | |||||
Investment trusts |
10,360,938 | 8,835,970 | 1,524,967 | 9,424,449 | 936,489 | |||||||
Money entrusted other than money trusts |
204,178 | 295,772 | (91,593 | ) | 291,449 | (87,270 | ) | |||||
Securities trusts |
7,326,192 | 7,377,662 | (51,470 | ) | 7,276,403 | 49,789 | ||||||
Money claim trusts |
4,016,779 | 3,388,774 | 628,005 | 3,876,931 | 139,847 | |||||||
Land and fixtures trusts |
101,694 | 172,140 | (70,446 | ) | 127,435 | (25,740 | ) | |||||
Other trusts |
2,628,644 | 1,831,527 | 797,116 | 2,383,417 | 245,226 | |||||||
Total liabilities |
32,915,863 | 29,673,137 | 3,242,725 | 31,774,989 | 1,140,873 | |||||||
Note:
Joint trust assets under the management of other companies |
as of September 30, 2004 : 28,666,467 millions of yen | |
as of September 30, 2003 : 32,431,438 millions of yen | ||
as of March 31, 2004 : 31,853,153 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 year includes the trust assets 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.
51
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
As of September 30, |
Increase/ (Decrease) |
As of March 31, |
Increase/ (Decrease) (A) (C) |
|||||||||
(in millions of Yen) | 2004 (A) |
2003 (B) |
(A)(B) |
2004 (C) |
||||||||
Assets: |
||||||||||||
Loans and bills discounted |
651,019 | 895,594 | (244,575 | ) | 735,872 | (84,853 | ) | |||||
Securities |
24,861,173 | 25,983,180 | (1,122,007 | ) | 26,511,148 | (1,649,975 | ) | |||||
Beneficiary rights to the trust |
11,654,288 | 10,171,247 | 1,483,040 | 10,911,534 | 742,753 | |||||||
Securities held in custody accounts |
4,231,291 | 3,863,703 | 367,588 | 4,241,080 | (9,788 | ) | ||||||
Money claims |
4,038,827 | 3,471,620 | 567,207 | 4,034,942 | 3,884 | |||||||
Premises and equipment |
2,518,697 | 1,862,032 | 656,664 | 2,327,330 | 191,367 | |||||||
Surface rights |
548 | | 548 | 548 | | |||||||
Lease rights |
23,608 | 23,791 | (183 | ) | 23,695 | (87 | ) | |||||
Other claims |
2,180,063 | 2,324,554 | (144,491 | ) | 1,768,093 | 411,970 | ||||||
Call loans |
1,042,955 | 1,275,194 | (232,239 | ) | 1,406,530 | (363,575 | ) | |||||
Due from banking account |
1,621,085 | 1,733,142 | (112,056 | ) | 1,702,841 | (81,756 | ) | |||||
Cash and due from banks |
2,549,834 | 1,804,849 | 744,984 | 2,212,768 | 337,065 | |||||||
Total assets |
55,373,392 | 53,408,912 | 1,964,480 | 55,876,387 | (502,994 | ) | ||||||
Liabilities: |
||||||||||||
Money trusts |
17,593,514 | 18,223,827 | (630,312 | ) | 19,604,145 | (2,010,630 | ) | |||||
Pension trusts |
8,177,076 | 8,206,779 | (29,702 | ) | 8,274,971 | (97,895 | ) | |||||
Property formation benefit trusts |
12,724 | 12,344 | 380 | 12,958 | (233 | ) | ||||||
Loan trusts |
673,111 | 945,709 | (272,598 | ) | 792,932 | (119,821 | ) | |||||
Investment trusts |
10,360,938 | 8,835,970 | 1,524,967 | 9,424,449 | 936,489 | |||||||
Money entrusted other than money trusts |
2,037,510 | 2,357,868 | (320,357 | ) | 2,010,336 | 27,174 | ||||||
Securities trusts |
7,370,837 | 7,378,353 | (7,516 | ) | 7,291,686 | 79,150 | ||||||
Money claim trusts |
4,016,779 | 3,388,774 | 628,005 | 3,876,931 | 139,847 | |||||||
Land and fixtures trusts |
101,694 | 172,140 | (70,446 | ) | 127,435 | (25,740 | ) | |||||
Other trusts |
5,029,205 | 3,887,143 | 1,142,061 | 4,460,539 | 568,665 | |||||||
Total liabilities |
55,373,392 | 53,408,912 | 1,964,480 | 55,876,387 | (502,994 | ) | ||||||
52
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(2) Supplemental Data (As of September 30, 2004)
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: |
||
Loans and bills discounted |
201,766 | |
Securities |
228,883 | |
Other |
485,270 | |
Total |
915,920 | |
Liabilities: | ||
Principal | 915,281 | |
Reserve for possible loan losses | 613 | |
Other | 26 | |
Total |
915,920 | |
(in millions of Yen) | ||
Loan trusts |
||
Assets: |
||
Loans and bills discounted |
349,469 | |
Securities |
8,764 | |
Other |
662,938 | |
Total |
1,021,172 | |
Liabilities: | ||
Principal | 1,004,308 | |
Special reserve funds | 5,483 | |
Other | 11,379 | |
Total | 1,021,172 | |
(3) Financial Highlights [Non-Consolidated]
As of September 30, |
Increase/ (Decrease) (A)(B) |
Increase/ (Decrease) (A) (C) |
||||||||||
As of March 31, |
||||||||||||
(in millions of Yen) | 2004 (A) |
2003 (B) |
2004 (C) |
|||||||||
Total funds |
38,271,242 | 38,988,158 | (716,915 | ) | 40,877,615 | (2,606,373 | ) | |||||
Deposits |
10,466,006 | 10,511,433 | (45,426 | ) | 10,844,731 | (378,724 | ) | |||||
Negotiable certificates of deposit |
1,348,808 | 1,088,064 | 260,744 | 1,347,875 | 932 | |||||||
Money trusts |
17,593,514 | 18,223,827 | (630,312 | ) | 19,604,145 | (2,010,630 | ) | |||||
Pension trusts |
8,177,076 | 8,206,779 | (29,702 | ) | 8,274,971 | (97,895 | ) | |||||
Property formation benefit trusts |
12,724 | 12,344 | 380 | 12,958 | (233 | ) | ||||||
Loan trusts |
673,111 | 945,709 | (272,598 | ) | 792,932 | (119,821 | ) | |||||
Loans and bills discounted |
9,297,862 | 9,373,196 | (75,333 | ) | 9,309,061 | (11,198 | ) | |||||
Banking account |
8,646,843 | 8,477,601 | 169,242 | 8,573,188 | 73,654 | |||||||
Trust account |
651,019 | 895,594 | (244,575 | ) | 735,872 | (84,853 | ) | |||||
Investment securities |
31,678,755 | 32,027,877 | (349,122 | ) | 33,927,539 | (2,248,784 | ) |
Note:
The balance at the end of the interim business period of fiscal year, 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.
53
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) |
|||||||||
For the six months ended 2003 (A) |
For the six months ended 2004 (B) |
Increase/ (Decrease) (B) (A) |
|||||||
Gross profits |
177,049 | 162,614 | (14,434 | ) | |||||
(Gross ordinary profit before trust accounts charge-offs) |
185,481 | 164,951 | (20,530 | ) | |||||
Trust fees |
27,829 | 37,573 | 9,743 | ||||||
Credit costs for trust accounts (1) |
(8,432 | ) | (2,336 | ) | 6,096 | ||||
Net interest income |
106,186 | 92,710 | (13,476 | ) | |||||
Net fees and commissions |
22,539 | 30,830 | 8,290 | ||||||
Net trading profits |
2,243 | 4,554 | 2,311 | ||||||
Net other business income (loss) |
18,249 | (3,054 | ) | (21,303 | ) | ||||
Net gains on debt securities |
15,619 | 4,892 | (10,727 | ) | |||||
General and administrative expenses |
82,502 | 75,256 | (7,246 | ) | |||||
Net business profits before credit costs for trust accounts and provision for formula allowance for loan losses* |
102,979 | 89,694 | (13,284 | ) | |||||
Provision for formula allowance for loan losses (2) |
2,037 | | (2,037 | ) | |||||
Net business profits** |
96,583 | 87,357 | (9,225 | ) | |||||
Net non-recurring losses |
(17,436 | ) | (25,382 | ) | (7,946 | ) | |||
Credit related costs (3) |
(11,478 | ) | (14,397 | ) | (2,918 | ) | |||
Losses on loan charge-offs |
(2,882 | ) | (1,706 | ) | 1,175 | ||||
Provision for specific allowance for loan losses |
(4,237 | ) | | 4,237 | |||||
Provision for allowance for loans to specific foreign borrowers |
245 | | (245 | ) | |||||
Other credit related costs |
(4,604 | ) | (12,690 | ) | (8,085 | ) | |||
Net gains (losses) on equity securities |
1,759 | (4,464 | ) | (6,223 | ) | ||||
Gains on sales of equity securities |
17,025 | 5,773 | (11,252 | ) | |||||
Losses on sales of equity securities |
(13,297 | ) | (439 | ) | 12,857 | ||||
Losses on write down of equity securities |
(1,968 | ) | (9,797 | ) | (7,829 | ) | |||
Equity in loss of affiliates |
(871 | ) | (800 | ) | 70 | ||||
Other |
(6,845 | ) | (5,720 | ) | 1,125 | ||||
Ordinary profit |
79,147 | 61,975 | (17,171 | ) | |||||
Net special gains (losses) |
(4,798 | ) | 4,973 | 9,772 | |||||
Reversal of allowance for loan losses (4) |
| 4,490 | 4,490 | ||||||
Gains on loans charged-off(5) |
2,813 | 3,933 | 1,119 | ||||||
Losses on impairment of fixed assets |
| (148 | ) | (148 | ) | ||||
Losses on placing financial assets to the trust for retirement benefits |
(2,570 | ) | (2,570 | ) | 0 | ||||
Income before income taxes and others |
74,348 | 66,949 | (7,399 | ) | |||||
Income taxes-current |
(19,007 | ) | 13,423 | 32,430 | |||||
Income taxes-deferred |
28,658 | 22,035 | (6,622 | ) | |||||
Minority interest |
728 | 387 | (341 | ) | |||||
Net income |
63,969 | 31,103 | (32,865 | ) | |||||
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)+(4) |
(17,873 | ) | (12,242 | ) | 5,631 | ||||
Total credit costs + Gains on loans charged-off (1)+(2)+(3)+(4)+(5) |
(15,060 | ) | (8,309 | ) | 6,751 | ||||
Number of consolidated subsidiaries |
28 | 18 | (10 | ) | |||||
Number of affiliated companies accounted for by the equity method |
13 | 6 | (7 | ) |
54
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
Financial Results (The Mitsubishi Trust and Banking Corporation)
(in millions of yen) |
|||||||||
For the six months ended 2003 (A) |
For the six months ended 2004 (B) |
Increase/ (Decrease) (B) (A) |
|||||||
Gross profits |
170,194 | 154,990 | (15,203 | ) | |||||
(Gross ordinary profit before trust accounts charge-offs)* |
178,627 | 157,327 | (21,299 | ) | |||||
Domestic gross profits |
98,234 | 118,260 | 20,026 | ||||||
Trust fees |
27,829 | 37,573 | 9,743 | ||||||
Trust fees before trust accounts charge-offs* |
36,262 | 39,909 | 3,647 | ||||||
Loan trusts and money trusts fees (Jointly operated designated money trusts before trust accounts charge-offs)* |
19,184 | 21,870 | 2,686 | ||||||
Other trust fees |
17,077 | 18,038 | 961 | ||||||
Credit costs for trust accounts** (1) |
(8,432 | ) | (2,336 | ) | 6,096 | ||||
Losses on loan charge-offs |
(7,793 | ) | (2,336 | ) | 5,456 | ||||
Other losses incurred from sales of loans |
(639 | ) | | 639 | |||||
Net interest income |
48,323 | 53,531 | 5,208 | ||||||
Net fees and commissions |
18,695 | 25,406 | 6,710 | ||||||
Net trading profits (losses) |
(574 | ) | 3,748 | 4,323 | |||||
Net other business income |
3,960 | (1,999 | ) | (5,959 | ) | ||||
Net gains (losses) on debt securities |
593 | (72 | ) | (665 | ) | ||||
Non-domestic gross profits |
71,960 | 36,730 | (35,230 | ) | |||||
Net interest income |
54,993 | 37,371 | (17,621 | ) | |||||
Net fees and commissions |
(215 | ) | (412 | ) | (196 | ) | |||
Net trading profits (losses) |
1,684 | (111 | ) | (1,795 | ) | ||||
Net other business income |
15,498 | (117 | ) | (15,615 | ) | ||||
Net gains on debt securities |
15,026 | 4,964 | (10,061 | ) | |||||
General and administrative expenses |
77,326 | 70,123 | (7,202 | ) | |||||
Personnel expenses |
31,354 | 25,088 | (6,266 | ) | |||||
Non-personnel expenses |
43,309 | 40,999 | (2,309 | ) | |||||
Taxes |
2,661 | 4,035 | 1,373 | ||||||
Net business profits before credit costs for trust accounts and provision for formula allowance for loan losses* |
101,300 | 87,203 | (14,097 | ) | |||||
Provision for formula allowance for loan losses (2) |
2,111 | | (2,111 | ) | |||||
Net business profits |
94,979 | 84,867 | (10,112 | ) | |||||
Net non-recurring losses |
(20,210 | ) | (25,239 | ) | (5,028 | ) | |||
Credit related costs (3) |
(11,557 | ) | (14,300 | ) | (2,743 | ) | |||
Losses on loan charge-offs |
(2,805 | ) | (1,610 | ) | 1,194 | ||||
Provision for specific allowance for loan losses |
(4,393 | ) | | 4,393 | |||||
Provision for allowance for loans to specific foreign borrowers |
245 | | (245 | ) | |||||
Other credit related costs |
(4,604 | ) | (12,690 | ) | (8,085 | ) | |||
Net gains (losses) on equity securities |
912 | (4,585 | ) | (5,497 | ) | ||||
Gains on sales of equity securities |
17,022 | 5,651 | (11,371 | ) | |||||
Losses on sales of equity securities |
(13,297 | ) | (439 | ) | 12,857 | ||||
Losses on write down of equity securities |
(2,813 | ) | (9,797 | ) | (6,984 | ) | |||
Others |
(9,565 | ) | (6,353 | ) | 3,211 | ||||
Ordinary profit |
74,769 | 59,628 | (15,141 | ) | |||||
Net special gains (losses) |
(4,094 | ) | 4,883 | 8,977 | |||||
Reversal of allowance for loan losses (4) |
| 4,677 | 4,677 | ||||||
Gains on loans charged-off (5) |
2,743 | 3,844 | 1,101 | ||||||
Losses on impairment of fixed assets |
| (90 | ) | (90 | ) | ||||
Losses on placing financial assets to the trust for retirement benefits |
(2,570 | ) | (2,570 | ) | 0 | ||||
Income before income taxes and others |
70,675 | 64,511 | (6,163 | ) | |||||
Income taxes-current |
(18,896 | ) | 12,313 | 31,210 | |||||
Income taxes-deferred |
28,606 | 22,016 | (6,589 | ) | |||||
Net income |
60,965 | 30,181 | (30,784 | ) | |||||
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)+(4) |
(17,878 | ) | (11,959 | ) | 5,918 | ||||
Total credit costs + Gains on loans charged-off (1)+(2)+(3)+(4)+(5) |
(15,134 | ) | (8,115 | ) | 7,019 |
55
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 September 30, |
Increase/ (A) (B) |
||||||
2004(A) |
2003(B) |
||||||
Total average interest rate on interest-earning assets (a) |
1.52 | 1.65 | (0.12 | ) | |||
Average interest rate on Loans and bills discounted |
1.11 | 1.19 | (0.07 | ) | |||
Average interest rate on Investment securities |
2.04 | 2.28 | (0.24 | ) | |||
Total average interest rate on interest-bearing liabilities (b) |
0.40 | 0.51 | (0.11 | ) | |||
Average interest rate on Deposits |
0.32 | 0.30 | 0.01 | ||||
Total average interest rate spread (a)-(b) |
1.12 | 1.13 | (0.01 | ) | |||
(percentage per annum) |
|||||||
Average interest rate spread in domestic business segment: |
|||||||
Total average interest rate on interest-earning assets (a) |
0.96 | 0.92 | 0.04 | ||||
Average interest rate on Loans and bills discounted |
1.05 | 1.10 | (0.05 | ) | |||
Average interest rate on Investment securities |
1.00 | 0.92 | 0.07 | ||||
Total average interest rate on interest-bearing liabilities (b) |
0.15 | 0.18 | (0.03 | ) | |||
Average interest rate on Deposits |
0.11 | 0.14 | (0.02 | ) | |||
Total average interest rate spread (a)-(b) |
0.81 | 0.73 | 0.07 |
10. Valuation Differences on Securities
(1) Valuation method of securities
Trading securities |
Market value (valuation differences are recorded as profits or losses) | |
Debt securities being held to maturity |
Amortized cost | |
Securities available for sale |
Market value (valuation differences are included in 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) |
(2) Valuation differences
[Consolidated]
(in millions of yen) | ||||||||||||||||||||||||
As of September 30, 2004 |
As of September 30, 2003 |
As of March 31, 2004 | ||||||||||||||||||||||
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 |
6,000 | (2,420 | ) | (1,029 | ) | 6,212 | 211 | 8,420 | 8,423 | 2 | 7,030 | 7,030 | 0 | |||||||||||
Securities available for sale |
202,772 | 67,105 | (114,225 | ) | 236,050 | 33,277 | 135,667 | 199,952 | 64,285 | 316,997 | 340,339 | 23,342 | ||||||||||||
Domestic equity securities |
144,050 | 97,246 | (53,513 | ) | 168,270 | 24,219 | 46,804 | 89,617 | 42,812 | 197,564 | 216,065 | 18,500 | ||||||||||||
Domestic bonds |
23,170 | 8,266 | 4,767 | 23,924 | 754 | 14,904 | 17,076 | 2,172 | 18,402 | 19,689 | 1,286 | |||||||||||||
Other |
35,550 | (38,407 | ) | (65,479 | ) | 43,855 | 8,304 | 73,958 | 93,258 | 19,300 | 101,030 | 104,585 | 3,554 | |||||||||||
Total |
208,773 | 64,685 | (115,254 | ) | 242,262 | 33,489 | 144,087 | 208,376 | 64,288 | 324,027 | 347,370 | 23,342 | ||||||||||||
Domestic equity securities |
144,050 | 97,246 | (53,513 | ) | 168,270 | 24,219 | 46,804 | 89,617 | 42,812 | 197,564 | 216,065 | 18,500 | ||||||||||||
Domestic bonds |
28,868 | 7,555 | 4,468 | 29,622 | 754 | 21,312 | 23,488 | 2,175 | 24,399 | 25,686 | 1,287 | |||||||||||||
Other |
35,854 | (40,116 | ) | (66,209 | ) | 44,370 | 8,515 | 75,970 | 95,270 | 19,300 | 102,063 | 105,618 | 3,554 |
[Non-Consolidated]
(in millions of yen) | ||||||||||||||||||||||||
As of September 30, 2004 |
As of September 30, 2003 |
As of March 31, 2004 | ||||||||||||||||||||||
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 |
5,958 | (1,954 | ) | (931 | ) | 5,958 | | 7,912 | 7,915 | 2 | 6,889 | 6,890 | 0 | |||||||||||
Securities available for sale |
200,848 | 66,456 | (113,769 | ) | 234,125 | 33,277 | 134,391 | 198,676 | 64,285 | 314,617 | 337,959 | 23,342 | ||||||||||||
Domestic equity securities |
142,127 | 96,597 | (53,057 | ) | 166,346 | 24,219 | 45,529 | 88,341 | 42,812 | 195,184 | 213,685 | 18,500 | ||||||||||||
Domestic bonds |
23,170 | 8,266 | 4,767 | 23,924 | 754 | 14,904 | 17,076 | 2,172 | 18,402 | 19,689 | 1,286 | |||||||||||||
Other |
35,550 | (38,407 | ) | (65,479 | ) | 43,855 | 8,304 | 73,958 | 93,258 | 19,300 | 101,030 | 104,585 | 3,554 | |||||||||||
Total |
206,806 | 64,502 | (114,700 | ) | 240,084 | 33,277 | 142,303 | 206,592 | 64,288 | 321,507 | 344,850 | 23,342 | ||||||||||||
Domestic equity securities |
142,127 | 96,597 | (53,057 | ) | 166,346 | 24,219 | 45,529 | 88,341 | 42,812 | 195,184 | 213,685 | 18,500 | ||||||||||||
Domestic bonds |
28,867 | 7,555 | 4,468 | 29,622 | 754 | 21,312 | 23,488 | 2,175 | 24,399 | 25,686 | 1,287 | |||||||||||||
Other |
35,811 | (39,650 | ) | (66,112 | ) | 44,115 | 8,304 | 75,462 | 94,762 | 19,300 | 101,923 | 105,478 | 3,554 |
56
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) | |||||
Trust Assets at period end |
Market Value |
Valuation Gains | ||||
September 30, 2004 |
228,883 | 234,699 | 5,815 |
Note | : A fair value is given where a fair value can be calculated for a market-value equivalent. |
B. | Valuation Gains of Derivative Transaction : 4,444 millions of yen |
Loan Trusts
A. Market Value of Securities | (in millions of yen) | |||||
Trust Assets at period end |
Market Value |
Valuation Gains | ||||
September 30, 2004 |
8,764 | 9,384 | 620 |
Note | : A fair value is given where a fair value can be calculated for a market-value equivalent. |
B. | Valuation Gains of Derivative Transaction : 10,155 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, 2004 (A) (Preliminary basis) |
Increase/ (Decrease) (A) (B) |
Increase/ (Decrease) (A) (C) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(1) Risk-adjusted capital ratio |
11.71 | % | (2.41 | )% | (3.31 | )% | 14.13 | % | 15.03 | % | |||||
(2) Tier 1 capital |
809.9 | 62.7 | 23.9 | 747.2 | 785.9 | ||||||||||
(3) Tier 2 capital includable as qualifying capital |
645.9 | (30.6 | ) | (105.2 | ) | 676.6 | 751.2 | ||||||||
i) The amount of unrealized gains on investment securities, includable as qualifying capital |
91.2 | 30.1 | (51.4 | ) | 61.0 | 142.6 | |||||||||
ii) The amount of land revaluation excess includable as qualifying capital |
(0.4 | ) | (0.2 | ) | 0.0 | (0.1 | ) | (0.4 | ) | ||||||
iii) Subordinated debt |
496.6 | 3.9 | 11.7 | 492.7 | 484.9 | ||||||||||
(4) Deductions from total qualifying capital |
311.0 | 305.8 | 294.7 | 5.1 | 16.2 | ||||||||||
(5) Total qualifying capital (2)+(3)-(4) |
1,144.8 | (273.7 | ) | (376.1 | ) | 1,418.6 | 1,520.9 | ||||||||
(6) Risk-adjusted assets |
9,770.0 | (264.2 | ) | (347.1 | ) | 10,034.2 | 10,117.1 |
[Non-Consolidated]
(in billions of yen except percentages) |
|||||||||||||||
As of September 30, 2004 (A) (Preliminary basis) |
Increase/ (Decrease) (A) (B) |
Increase/ (Decrease) (A) (C) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(1) Risk-adjusted capital ratio |
11.71 | % | (2.62 | )% | (3.45 | )% | 14.34 | % | 15.16 | % | |||||
(2) Tier 1 capital |
798.1 | 57.2 | 22.1 | 740.8 | 776.0 | ||||||||||
(3) Tier 2 capital includable as qualifying capital |
643.8 | (24.3 | ) | (105.0 | ) | 668.1 | 748.8 | ||||||||
i) The amount of unrealized gains on investment securities, includable as qualifying capital |
90.3 | 29.9 | (51.1 | ) | 60.4 | 141.5 | |||||||||
ii) The amount of land revaluation excess includable as qualifying capital |
(1.1 | ) | 0.8 | 0.1 | (2.0 | ) | (1.3 | ) | |||||||
iii) Subordinated debt |
496.6 | 3.9 | 11.7 | 492.7 | 484.9 | ||||||||||
(4) Deductions from total qualifying capital |
307.9 | 305.0 | 295.5 | 2.9 | 12.4 | ||||||||||
(5) Total qualifying capital (2)+(3)-(4) |
1,134.0 | (272.0 | ) | (378.4 | ) | 1,406.0 | 1,512.4 | ||||||||
(6) Risk-adjusted assets |
9,679.2 | (125.7 | ) | (291.1 | ) | 9,805.0 | 9,970.3 |
57
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 September 30, 2004 (A) |
Increase/ (Decrease) (A) (B) |
Increase/ (Decrease) (A) (C) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
Loans to customers in bankruptcy |
16,677 | (19,747 | ) | (6,776 | ) | 36,425 | 23,454 | ||||||||
Past due loans |
270,096 | 22,781 | 95,728 | 247,315 | 174,368 | ||||||||||
Accruing loans contractually past due 3 months or more |
11 | (417 | ) | 11 | 429 | | |||||||||
Restructured loans |
77,061 | (108,778 | ) | (115,672 | ) | 185,840 | 192,734 | ||||||||
Total |
363,848 | (106,161 | ) | (26,709 | ) | 470,010 | 390,557 | ||||||||
Amount of direct reduction |
208,186 | (29,222 | ) | (19,542 | ) | 237,409 | 227,729 | ||||||||
Loans and bills discounted |
8,660,203 | 160,627 | 71,276 | 8,499,575 | 8,588,926 | ||||||||||
Percentage of total loans and bills discounted |
| ||||||||||||||
Loans to customers in bankruptcy |
0.19 | % | (0.23 | )% | (0.08 | )% | 0.42 | % | 0.27 | % | |||||
Past due loans |
3.11 | % | 0.20 | % | 1.08 | % | 2.90 | % | 2.03 | % | |||||
Accruing loans contractually past due 3 months or more |
0.00 | % | (0.00 | )% | 0.00 | % | 0.00 | % | | ||||||
Restructured loans |
0.88 | % | (1.29 | )% | (1.35 | )% | 2.18 | % | 2.24 | % | |||||
Total |
4.20 | % | (1.32 | )% | (0.34 | )% | 5.52 | % | 4.54 | % | |||||
[Non-Consolidated]
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) (A) (B) |
Increase/ (Decrease) (A) (C) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
Loans to customers in bankruptcy |
16,636 | (19,769 | ) | (6,800 | ) | 36,406 | 23,436 | ||||||||
Past due loans |
269,902 | 22,774 | 95,800 | 247,127 | 174,102 | ||||||||||
Accruing loans contractually past due 3 months or more |
11 | (417 | ) | 11 | 429 | | |||||||||
Restructured loans |
77,061 | (108,769 | ) | (114,100 | ) | 185,831 | 191,162 | ||||||||
Total |
363,612 | (106,181 | ) | (25,088 | ) | 469,794 | 388,701 | ||||||||
Amount of direct reduction |
205,401 | (29,241 | ) | (19,641 | ) | 234,642 | 225,042 | ||||||||
Loans and bills discounted |
8,646,843 | 169,242 | 73,654 | 8,477,601 | 8,573,188 | ||||||||||
Percentage of total loans and bills discounted |
| ||||||||||||||
Loans to customers in bankruptcy |
0.19 | % | (0.23 | )% | (0.08 | )% | 0.42 | % | 0.27 | % | |||||
Past due loans |
3.12 | % | 0.20 | % | 1.09 | % | 2.91 | % | 2.03 | % | |||||
Accruing loans contractually past due 3 months or more |
0.00 | % | (0.00 | )% | 0.00 | % | 0.00 | % | | ||||||
Restructured loans |
0.89 | % | (1.30 | )% | (1.33 | )% | 2.19 | % | 2.22 | % | |||||
Total |
4.20 | % | (1.33 | )% | (0.32 | )% | 5.54 | % | 4.53 | % | |||||
58
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 September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Loans to customers in bankruptcy |
1,386 | (1,790 | ) | (201 | ) | 3,177 | 1,588 | ||||||||
Past due loans |
664 | (846 | ) | (627 | ) | 1,511 | 1,292 | ||||||||
Accruing loans contractually past due 3 months or more |
837 | 236 | 466 | 601 | 370 | ||||||||||
Restructured loans |
24,944 | (4,800 | ) | (7,623 | ) | 29,745 | 32,568 | ||||||||
Total |
27,833 | (7,201 | ) | (7,985 | ) | 35,035 | 35,819 | ||||||||
Loans and bills discounted |
551,236 | (211,816 | ) | (70,739 | ) | 763,053 | 621,976 | ||||||||
Percentage of total loans and bills discounted |
|||||||||||||||
Loans to customers in bankruptcy |
0.25 | % | (0.16 | )% | (0.00 | )% | 0.41 | % | 0.25 | % | |||||
Past due loans |
0.12 | % | (0.07 | )% | (0.08 | )% | 0.19 | % | 0.20 | % | |||||
Accruing loans contractually past due 3 months or more |
0.15 | % | 0.07 | % | 0.09 | % | 0.07 | % | 0.05 | % | |||||
Restructured loans |
4.52 | % | 0.62 | % | (0.71 | )% | 3.89 | % | 5.23 | % | |||||
Total |
5.04 | % | 0.45 | % | (0.70 | )% | 4.59 | % | 5.75 | % | |||||
[Banking : Non-Consolidated and Trust Accounts]
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Loans to customers in bankruptcy |
18,023 | (21,560 | ) | (7,001 | ) | 39,583 | 25,025 | ||||||||
Past due loans |
270,567 | 21,928 | 95,172 | 248,639 | 175,394 | ||||||||||
Accruing loans contractually past due 3 months or more |
849 | (180 | ) | 478 | 1,030 | 370 | |||||||||
Restructured loans |
102,006 | (113,570 | ) | (121,724 | ) | 215,576 | 223,730 | ||||||||
Total |
391,446 | (113,383 | ) | (33,074 | ) | 504,829 | 424,521 | ||||||||
Loans and bills discounted |
9,198,080 | (42,574 | ) | 2,915 | 9,240,655 | 9,195,165 | |||||||||
Percentage of total loans and bills discounted |
| ||||||||||||||
Loans to customers in bankruptcy |
0.19 | % | (0.23 | )% | (0.07 | )% | 0.42 | % | 0.27 | % | |||||
Past due loans |
2.94 | % | 0.25 | % | 1.03 | % | 2.69 | % | 1.90 | % | |||||
Accruing loans contractually past due 3 months or more |
0.00 | % | (0.00 | )% | 0.00 | % | 0.01 | % | 0.00 | % | |||||
Restructured loans |
1.10 | % | (1.22 | )% | (1.32 | )% | 2.33 | % | 2.43 | % | |||||
Total |
4.25 | % | (1.20 | )% | (0.36 | )% | 5.46 | % | 4.61 | % | |||||
[Banking : Consolidated and Trust Accounts]
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
|
(A) (C) |
|
||||||||||||
Loans to customers in bankruptcy |
18,064 | (21,538 | ) | (6,978 | ) | 39,602 | 25,042 | ||||||||
Past due loans |
270,761 | 21,934 | 95,100 | 248,826 | 175,660 | ||||||||||
Accruing loans contractually past due 3 months or more |
849 | (180 | ) | 478 | 1,030 | 370 | |||||||||
Restructured loans |
102,006 | (113,578 | ) | (123,296 | ) | 215,585 | 225,302 | ||||||||
Total |
391,682 | (113,363 | ) | (34,694 | ) | 505,045 | 426,377 | ||||||||
Loans and bills discounted |
9,211,439 | (51,189 | ) | 536 | 9,262,629 | 9,210,903 | |||||||||
Percentage of total loans and bills discounted |
| ||||||||||||||
Loans to customers in bankruptcy |
0.19 | % | (0.23 | )% | (0.07 | )% | 0.42 | % | 0.27 | % | |||||
Past due loans |
2.93 | % | 0.25 | % | 1.03 | % | 2.68 | % | 1.90 | % | |||||
Accruing loans contractually past due 3 months or more |
0.00 | % | (0.00 | )% | 0.00 | % | 0.01 | % | 0.00 | % | |||||
Restructured loans |
1.10 | % | (1.22 | )% | (1.33 | )% | 2.32 | % | 2.44 | % | |||||
Total |
4.25 | % | (1.20 | )% | (0.37 | )% | 5.45 | % | 4.62 | % | |||||
59
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 September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic* |
347,529 | (118,594 | ) | (6,692 | ) | 466,123 | 354,222 | |||||
Overseas* |
44,152 | 5,231 | (28,001 | ) | 38,921 | 72,154 | ||||||
Asia |
950 | (2,307 | ) | (3,060 | ) | 3,257 | 4,010 | |||||
Indonesia |
460 | (50 | ) | (26 | ) | 510 | 487 | |||||
Thailand |
| (1,196 | ) | (2,699 | ) | 1,196 | 2,699 | |||||
Hong Kong |
| (631 | ) | | 631 | | ||||||
Other |
489 | (429 | ) | (334 | ) | 919 | 824 | |||||
United States of America |
32,019 | 10,178 | (14,440 | ) | 21,841 | 46,459 | ||||||
Other |
11,182 | (2,639 | ) | (10,500 | ) | 13,822 | 21,683 | |||||
Total |
391,682 | (113,363 | ) | (34,694 | ) | 505,045 | 426,377 | |||||
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 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003(B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic* |
347,529 | (118,594 | ) | (6,692 | ) | 466,123 | 354,222 | |||||
Manufacturing |
50,066 | (25,542 | ) | (40,490 | ) | 75,608 | 90,556 | |||||
Construction |
14,653 | (106,865 | ) | (24,116 | ) | 121,519 | 38,770 | |||||
Wholesale and Retail |
74,000 | 20,206 | 32,240 | 53,794 | 41,760 | |||||||
Banks and other financial institutions |
595 | (2,082 | ) | (5,985 | ) | 2,677 | 6,580 | |||||
Real estate |
107,858 | 39,973 | 64,462 | 67,884 | 43,395 | |||||||
Services |
56,938 | (20,332 | ) | (9,657 | ) | 77,271 | 66,596 | |||||
Other industries |
31,279 | (17,850 | ) | (20,092 | ) | 49,129 | 51,371 | |||||
Consumer |
12,136 | (6,101 | ) | (3,054 | ) | 18,237 | 15,190 | |||||
Overseas* |
44,152 | 5,231 | (28,001 | ) | 38,921 | 72,154 | ||||||
Banks and other financial institutions |
3,701 | 3,029 | 561 | 672 | 3,140 | |||||||
Commercial and industrial |
19,550 | (16,754 | ) | (24,596 | ) | 36,304 | 44,147 | |||||
Other |
20,900 | 18,955 | (3,966 | ) | 1,944 | 24,867 | ||||||
Total |
391,682 | (113,363 | ) | (34,694 | ) | 505,045 | 426,377 | |||||
Note:* | Domestic and Overseas are classified by domicile of borrowers. |
60
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
3. Allowance for Loan Losses
[Consolidated]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Allowance for loan losses |
192,674 | (76,138 | ) | (9,909 | ) | 268,813 | 202,584 | |||||
Formula allowance for loan losses |
58,514 | (80,890 | ) | (65,657 | ) | 139,405 | 124,172 | |||||
Specific allowance for loan losses |
133,802 | 4,976 | 55,754 | 128,825 | 78,048 | |||||||
Allowance for loans to specific foreign borrowers |
357 | (224 | ) | (6 | ) | 581 | 363 |
[Non-Consolidated]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Allowance for loan losses |
191,947 | (76,402 | ) | (10,039 | ) | 268,350 | 201,986 | |||||
Formula allowance for loan losses |
58,223 | (81,118 | ) | (65,750 | ) | 139,341 | 123,974 | |||||
Specific allowance for loan losses |
133,367 | 4,940 | 55,718 | 128,426 | 77,649 | |||||||
Allowance for loans to specific foreign borrowers |
357 | (224 | ) | (6 | ) | 581 | 363 | |||||
Reserve for financial assistance to specific borrowers |
| | | | |
[Trust accounts]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Special internal reserves |
5,483 | (1,799 | ) | (651 | ) | 7,283 | 6,135 | |||||
Allowance for bad debts |
613 | (313 | ) | (186 | ) | 926 | 799 |
4. Coverage Ratio against Risk-Monitored Loans
[Consolidated]
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Allowance for loan losses (a) |
192,674 | (76,138 | ) | (9,909 | ) | 268,813 | 202,584 | ||||||||
Risk-monitored loans (b) |
363,848 | (106,161 | ) | (26,709 | ) | 470,010 | 390,557 | ||||||||
Coverage ratio (a)/(b) |
52.95 | % | (4.23 | )% | 1.08 | % | 57.19 | % | 51.87 | % |
[Non-Consolidated]
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Allowance for loan losses (a) |
191,947 | (76,402 | ) | (10,039 | ) | 268,350 | 201,986 | ||||||||
Risk-monitored loans (b) |
363,612 | (106,181 | ) | (25,088 | ) | 469,794 | 388,701 | ||||||||
Coverage ratio (a)/(b) |
52.78 | % | (4.33 | )% | 0.82 | % | 57.12 | % | 51.96 | % |
61
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 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of (B) |
As of (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Claims to bankrupt and substantially bankrupt debtors |
33,781 | (19,823 | ) | (12,642 | ) | 53,604 | 46,423 | |||||
Claims under high risk |
262,407 | 28,364 | 113,120 | 234,042 | 149,286 | |||||||
Claims under close observation |
77,074 | (112,730 | ) | (117,705 | ) | 189,804 | 194,779 | |||||
Total (1) |
373,262 | (104,189 | ) | (17,227 | ) | 477,451 | 390,490 | |||||
Normal claims |
8,511,616 | 117,601 | 62,811 | 8,394,014 | 8,448,804 |
[Trust accounts]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Claims to bankrupt and substantially bankrupt debtors |
2,617 | (2,155 | ) | (421 | ) | 4,772 | 3,038 | |||||
Claims under high risk |
3,580 | (2,016 | ) | (5,906 | ) | 5,596 | 9,486 | |||||
Claims under close observation |
21,636 | (3,030 | ) | (1,657 | ) | 24,666 | 23,294 | |||||
Total (1) |
27,833 | (7,201 | ) | (7,985 | ) | 35,035 | 35,819 | |||||
Normal claims |
523,402 | (204,615 | ) | (62,753 | ) | 728,018 | 586,156 |
[Banking : Non-Consolidated and Trust accounts]
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003(B) |
As of March 31, 2004(C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Claims to bankrupt and substantially bankrupt debtors |
36,398 | (21,978 | ) | (13,063 | ) | 58,377 | 49,462 | |||||
Claims under high risk |
265,987 | 26,348 | 107,213 | 239,638 | 158,773 | |||||||
Claims under close observation |
98,711 | (115,760 | ) | (119,363 | ) | 214,471 | 218,074 | |||||
Total (1) |
401,096 | (111,390 | ) | (25,213 | ) | 512,487 | 426,309 | |||||
Normal claims |
9,035,019 | (87,013 | ) | 57 | 9,122,032 | 9,034,961 |
62
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 September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) - (B) |
(A) - (C) |
||||||||||||||
Secured coverage amount (2) |
319,578 | (62,898 | ) | 23,842 | 382,476 | 295,735 | |||||||||
Allowance for loan losses |
135,155 | (20,946 | ) | 25,176 | 156,101 | 109,978 | |||||||||
Reserve for financial assistance to specific borrowers |
| | | | | ||||||||||
Collateral, guarantees, etc. |
184,423 | (41,951 | ) | (1,333 | ) | 226,374 | 185,757 | ||||||||
Secured coverage ratio (2)/(1) |
85.61 | % | 5.50 | % | 9.88 | % | 80.10 | % | 75.73 | % |
[Trust accounts]
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) - (B) |
(A) - (C) |
||||||||||||||
Secured coverage amount (2) |
16,049 | (5,437 | ) | (6,200 | ) | 21,487 | 22,249 | ||||||||
Allowance for loan losses |
| | | | | ||||||||||
Reserve for financial assistance to specific borrowers |
| | | | | ||||||||||
Collateral, guarantees, etc. |
16,049 | (5,437 | ) | (6,200 | ) | 21,487 | 22,249 | ||||||||
Secured coverage ratio (2)/(1) |
57.66 | % | (3.66 | )% | (4.45 | )% | 61.32 | % | 62.11 | % |
[Banking : Non-Consolidated and Trust accounts]
(in millions of yen) |
|||||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) |
|||||||||||
(A) - (B) |
(A) - (C) |
||||||||||||||
Secured coverage amount (2) |
335,627 | (68,335 | ) | 17,642 | 403,963 | 317,985 | |||||||||
Allowance for loan losses |
135,155 | (20,946 | ) | 25,176 | 156,101 | 109,978 | |||||||||
Reserve for financial assistance to specific borrowers |
| | | | | ||||||||||
Collateral, guarantees, etc. |
200,472 | (47,389 | ) | (7,534 | ) | 247,861 | 208,006 | ||||||||
Secured coverage ratio (2)/(1) |
83.67 | % | 4.85 | % | 9.08 | % | 78.82 | % | 74.59 | % |
63
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) |
|||||||||||||||||
Category |
Disclosed amount (A) |
Allowance for loan losses (B) |
Reserve for financial assistance to specific borrowers (C) |
Collectable amount and guaranteed loans (D) |
Coverage ratio [(B)+(C)] / [(A)(D)] |
Coverage ratio [(B)+(C)+(D)] / (A) |
|||||||||||
Claims to bankrupt and substantially bankrupt debtors |
33,781 [46,423 |
] |
6,183 [10,487 |
] |
|
27,597 [35,935 |
] |
99.99 [100.00 |
% %] |
99.99 [100.00 |
% %] | ||||||
Claims under high risk |
262,407 [149,286 |
] |
121,066 [60,649 |
] |
|
102,844 [66,967 |
] |
75.87 [73.67 |
% %] |
85.32 [85.48 |
% %] | ||||||
Claims under close observation |
77,074 [194,779 |
] |
7,904 [38,841 |
] |
|
53,980 [82,853 |
] |
34.22 [34.70 |
% %] |
80.29 [62.47 |
% %] | ||||||
Sub total (1) |
373,262 [390,490 |
] |
135,155 [109,978 |
] |
|
184,423 [185,757 |
] |
71.57 [53.71 |
% %] |
85.61 [75.73 |
% %] | ||||||
Normal claims |
8,511,616 [8,448,804 |
] |
|||||||||||||||
Total (2) |
8,884,879 [8,839,295 |
] |
|||||||||||||||
Sub total (1) / Total (2) |
4.20 [4.41 |
% %] |
Note: | The upper figures are as of September 30, 2004. The lower figures with bracket are as of March 31, 2004. |
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) |
|||||||||||||||
Category |
Disclosed amount (A) |
Allowance for loan losses (B) |
Reserve for financial assistance to specific borrowers (C) |
Collectable amount by collateralized and guaranteed loans (D) |
Coverage ratio [(B)+(C)] / [(A)(D)] |
Coverage ratio [(B)+(C)+(D)] / (A) |
|||||||||
Claims to bankrupt and substantially bankrupt debtors |
2,617 [3,038 |
] |
|
|
2,617 [3,035 |
] |
100.00 [99.89 |
% %] | |||||||
Claims under high risk |
3,580 [9,486 |
] |
|
|
3,228 [8,562 |
] |
90.17 [90.26 |
% %] | |||||||
Claims under close observation |
21,636 [23,294 |
] |
|
|
10,204 [10,651 |
] |
47.16 [45.72 |
% %] | |||||||
Sub total (1) |
27,833 [35,819 |
] |
|
|
16,049 [22,249 |
] |
57.66 [62.11 |
% %] | |||||||
Normal claims |
523,402 [586,156 |
] |
|||||||||||||
Total (2) |
551,236 [621,976 |
] |
|||||||||||||
Sub total (1) / Total (2) |
5.04 [5.75 |
% %] |
Note: | The upper figures are as of September 30, 2004. The lower figures with bracket are as of March 31, 2004. |
Allowance for possible loan losses are not booked for the trust account, but the Bank executes the direct write-off 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 6 billion yen to the special internal reserve and allowance for bad debt in the trust account, as of September 30, 2004.
[Banking : Non-Consolidated and Trust accounts]
(in millions of yen) |
||||||||||||||||
Category |
Disclosed amount (A) |
Allowance for loan losses (B) |
Reserve for financial assistance to specific borrowers (C) |
Collectable amount by collateralized and guaranteed loans (D) |
Coverage ratio [(B)+(C)] / [(A)(D)] |
Coverage ratio [(B)+(C)+(D)] / (A) |
||||||||||
Claims to bankrupt and substantially bankrupt debtors |
36,398 [49,462 |
] |
6,183 [10,487 |
] |
|
30,214 [38,971 |
] |
99.99 [99.99 |
% %] | |||||||
Claims under high risk |
265,987 [158,773 |
] |
121,066 [60,649 |
] |
|
106,073 [75,529 |
] |
85.39 [85.76 |
% %] | |||||||
Claims under close observation |
98,711 [218,074 |
] |
7,904 [38,841 |
] |
|
64,184 [93,505 |
] |
73.03 [60.68 |
% %] | |||||||
Sub total (1) |
401,096 [426,309 |
] |
135,155 [109,978 |
] |
|
200,472 [208,006 |
] |
83.67 [74.59 |
% %] | |||||||
Normal claims |
9,035,019 [9,034,961 |
] |
||||||||||||||
Total (2) |
9,436,115 [9,461,271 |
] |
||||||||||||||
Sub total (1) / Total (2) |
4.25 [4.50 |
% %] |
Note: | The upper figures are as of September 30, 2004. The lower figures with bracket are as of March 31, 2004. |
64
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 September 30, 2000 |
As of March 31, 2001 |
As of September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) - (a) |
|||||||||||||
Claims to bankrupt |
239.2 | 136.2 | 123.5 | 68.9 | 42.7 | 30.0 | 15.8 | 8.0 | 5.0 | (2.9 | ) | |||||||||||
Claims under high risk |
526.7 | 455.5 | 382.9 | 301.7 | 184.8 | 23.8 | 22.9 | 1.3 | 0.6 | (0.7 | ) | |||||||||||
Total |
766.0 | 591.8 | 506.4 | 370.7 | 227.6 | 53.8 | 38.8 | 9.3 | 5.6 | (A) | (3.7 | )(B) | ||||||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
| ||
Re-constructive disposition |
| ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
| ||
Charge-off |
0.0 | ||
Other |
3.6 | ||
Collection of claims |
3.6 | ||
Improvements in financial status |
| ||
Total |
3.7 | (B) | |
Above (A) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
3.8 | |
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 |
0.6 | |
Total |
5.6 | |
(2) | Assets newly categorized as problem assets during second half of fiscal 2000 based on the FRL |
(in billions of yen) |
||||||||||||||||||||
As of March 31, 2001 |
As of September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) - (a) |
||||||||||||
Claims to bankrupt and substantially bankrupt debtors |
11.0 | 5.5 | 4.8 | 2.8 | 9.9 | 9.2 | 2.8 | 1.3 | (1.4 | ) | ||||||||||
Claims under high risk |
133.7 | 117.5 | 91.4 | 76.7 | 6.8 | 6.5 | 0.1 | 0.1 | 0.0 | |||||||||||
Total |
144.8 | 123.0 | 96.3 | 79.6 | 16.7 | 15.8 | 3.0 | 1.5 | (C) | (1.4 | )(D) | |||||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
| ||
Re-constructive disposition |
| ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
0.5 | ||
Charge-off |
0.6 | ||
Other |
0.2 | ||
Collection of claims |
0.2 | ||
Improvements in financial status |
| ||
Total |
1.4 | (D) | |
Above (C) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.6 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
0.9 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
1.5 | |
65
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(3) | Assets newly categorized as problem assets during first half of fiscal 2001based on the FRL |
(in billions of yen) |
||||||||||||||||||
As of September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) - (a) |
|||||||||||
Claims to bankrupt and substantially bankrupt debtors |
3.0 | 16.4 | 1.5 | 1.4 | 0.8 | 0.5 | 0.6 | 0.0 | ||||||||||
Claims under high risk |
80.0 | 30.2 | 21.6 | 6.4 | 3.7 | 1.6 | 0.7 | (0.9 | ) | |||||||||
Total |
83.1 | 46.7 | 23.2 | 7.8 | 4.6 | 2.2 | 1.3 | (E) | (0.8 | )(F) | ||||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
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 |
0.6 | ||
Collection of claims |
0.1 | ||
Improvements in financial status |
0.4 | ||
Total |
0.8 | (F) | |
Above (E) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.2 | |
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 |
0.7 | |
(4) | Assets newly categorized as problem assets during second half of fiscal 2001based on the FRL |
(in billions of yen) |
||||||||||||||||
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) - (a) |
||||||||||
Claims to bankrupt and substantially bankrupt debtors |
6.3 | 8.9 | 7.5 | 4.8 | 2.0 | 1.4 | (0.6 | ) | ||||||||
Claims under high risk |
68.0 | 28.4 | 9.5 | 6.6 | 3.7 | 0.4 | (3.2 | ) | ||||||||
Total |
74.4 | 37.3 | 17.1 | 11.5 | 5.8 | 1.9 | (G) | (3.8 | )(H) | |||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
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 |
3.6 | ||
Collection of claims |
0.6 | ||
Improvements in financial status |
3.0 | ||
Total |
3.8 | (H) | |
Above (G) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.0 | |
Quasi-legal liquidation |
0.2 | |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
1.3 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
1.6 | |
66
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 September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) - (a) |
|||||||||
Claims to bankrupt and substantially bankrupt debtors |
4.3 | 15.4 | 13.3 | 11.2 | 8.9 | (2.3 | ) | |||||||
Claims under high risk |
89.5 | 35.9 | 15.8 | 11.3 | 10.7 | (0.5 | ) | |||||||
Total |
93.9 | 51.3 | 29.2 | 22.5 | 19.6 | (I) | (2.9 | )(J) | ||||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
| ||
Re-constructive disposition |
| ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
2.2 | ||
Charge-off |
| ||
Other |
0.6 | ||
Collection of claims |
0.5 | ||
Improvements in financial status |
0.0 | ||
Total |
2.9 | (J) | |
Above (I) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
8.8 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
0.3 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
9.1 | |
(6) | Assets newly categorized as problem assets during second half of fiscal 2002 based on the FRL |
(in billions of yen)
As of March 31, |
As of September 30, |
As of March 31, |
As of September 30, |
(b) - (a) |
||||||||
2003 |
2003 |
2004 (a) |
2004 (b) |
|||||||||
Claims to bankrupt and substantially bankrupt debtors |
25.3 | 14.0 | 19.1 | 15.9 | (3.1 | ) | ||||||
Claims under high risk |
176.6 | 151.3 | 61.6 | 11.7 | (49.8 | ) | ||||||
Total |
202.0 | 165.3 | 80.7 | 27.7 | (K) | (53.0 | )(L) | |||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
| ||
Re-constructive disposition |
| ||
Improvements in financial status due to re-constructive disposition |
3.3 | ||
Loan sales to secondary market |
| ||
Charge-off |
1.2 | ||
Other |
48.4 | ||
Collection of claims |
16.1 | ||
Improvements in financial status |
32.2 | ||
Total |
53.0 | (L) | |
Above (K) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
3.9 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
2.5 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
6.5 | |
67
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(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 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
|||||||
Claims to bankrupt and substantially bankrupt debtors |
0.1 | 0.2 | 1.1 | 0.8 | ||||||
Claims under high risk |
32.4 | 20.8 | 7.7 | (13.1 | ) | |||||
Total |
32.6 | 21.1 | 8.8 | (M) | (12.2 | )(N) | ||||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
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 |
10.4 | ||
Collection of claims |
6.3 | ||
Improvements in financial status |
4.0 | ||
Total |
12.2 | (N) | |
Above (M) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.0 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
0.9 | |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
1.0 | |
(8) | Assets newly categorized as problem assets during second half of fiscal 2003 based on the FRL |
(in billions of yen) |
||||||||
As of March 31, |
As of September 30, 2004 (b) |
(b) (a) |
||||||
Claims to bankrupt and substantially bankrupt debtors |
5.1 | 1.5 | (3.6 | ) | ||||
Claims under high risk |
58.1 | 34.2 | (23.9 | ) | ||||
Total |
63.3 | 35.7 | (O) | (27.5 | )(P) | |||
Progress in the disposal of problem assets
(in billions of yen) |
|||
First half of fiscal 2004 |
|||
Disposition by borrowers liquidation |
| ||
Re-constructive disposition |
2.2 | ||
Improvements in financial status due to re-constructive disposition |
| ||
Loan sales to secondary market |
3.4 | ||
Charge-off |
0.2 | ||
Other |
21.7 | ||
Collection of claims |
19.7 | ||
Improvements in financial status |
2.0 | ||
Total |
27.5 | (P) | |
Above (O) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.0 | |
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 |
0.4 | |
68
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(9) | Assets newly categorized as problem assets during first half of fiscal 2004 based on the FRL |
(in billions of yen) |
|||
As of September 30, 2004 |
|||
Claims to bankrupt and substantially bankrupt debtors |
0.3 | ||
Claims under high risk |
199.5 | ||
Total |
199.8 | (Q) | |
Above (Q) includes the following figures which facilitates the final disposal of problem assets.
(in billions of yen) | ||
First half of fiscal 2004 | ||
Legal liquidation |
0.3 | |
Quasi-legal liquidation |
| |
Split-off of problem loans |
| |
Partial charge-off of smaller balance loans |
| |
Entrust through the managed trust method to the Resolution and Collection Corporation |
| |
Total |
0.3 | |
(10) | Historical trend of problem assets based on the FRL |
(in billions of yen) |
|||||||||||||||||||||
As of September 30, 2000 |
As of March 31, 2001 |
As of September 30, 2001 |
As of March 31, 2002 |
As of September 30, 2002 |
As of March 31, 2003 |
As of September 30, 2003 |
As of March 31, 2004 (a) |
As of September 30, 2004 (b) |
(b) (a) |
||||||||||||
Claims to bankrupt and substantially bankrupt debtors |
239.2 | 147.3 | 132.0 | 96.7 | 60.5 | 89.7 | 58.3 | 49.4 | 36.3 | (13.0 | ) | ||||||||||
Claims under high risk |
526.7 | 589.2 | 580.5 | 491.5 | 401.3 | 259.3 | 239.6 | 158.7 | 265.9 | 107.2 | |||||||||||
Total |
766.0 | 736.6 | 712.6 | 588.2 | 461.8 | 349.1 | 298.0 | 208.2 | 302.3 | 94.1 | |||||||||||
69
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
8. Classification of Loans by Type of Industry
(1) | Loans by type of industry [Banking:Non-Consolidated] |
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic offices (excluding loans booked at offshore markets) |
8,391,843 | 256,147 | 107,622 | 8,135,696 | 8,284,221 | |||||||
Manufacturing |
1,105,623 | (87,299 | ) | (76,719 | ) | 1,192,922 | 1,182,342 | |||||
Agriculture |
1,613 | (178 | ) | (152 | ) | 1,791 | 1,765 | |||||
Forestry |
| | | | | |||||||
Fishery |
26,162 | 666 | 104 | 25,496 | 26,058 | |||||||
Mining |
3,809 | (1,571 | ) | (379 | ) | 5,380 | 4,188 | |||||
Construction |
159,647 | (104,205 | ) | (12,038 | ) | 263,852 | 171,685 | |||||
Utilities |
128,976 | 1,898 | (5,692 | ) | 127,078 | 134,668 | ||||||
Media and Communication |
796,403 | (49,094 | ) | (57,545 | ) | 845,497 | 853,948 | |||||
Wholesale and Retail |
610,349 | (54,286 | ) | (13,531 | ) | 664,635 | 623,880 | |||||
Banks and other financial institutions |
2,733,075 | 621,232 | 404,893 | 2,111,843 | 2,328,182 | |||||||
Real estate |
1,081,026 | 55,087 | 18,621 | 1,025,939 | 1,062,405 | |||||||
Services |
660,529 | (11,312 | ) | (38,920 | ) | 671,841 | 699,449 | |||||
Municipal government |
443,695 | (131,533 | ) | (133,994 | ) | 575,228 | 577,689 | |||||
Other industries |
640,928 | 16,742 | 22,978 | 624,186 | 617,950 | |||||||
Overseas offices and loans booked at offshore markets |
255,000 | (86,905 | ) | (33,967 | ) | 341,905 | 288,967 | |||||
Total |
8,646,843 | 169,242 | 73,654 | 8,477,601 | 8,573,188 | |||||||
(2) | Domestic consumer loans [Banking:Non-Consolidated] |
(in millions of yen) | ||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Total domestic consumer loans |
356,333 | 61,841 | 37,963 | 294,492 | 318,370 | |||||||
Housing loans |
332,289 | 65,755 | 40,269 | 266,534 | 292,020 | |||||||
Others |
24,044 | (3,913 | ) | (2,305 | ) | 27,957 | 26,349 |
(3) | Domestic loans to small and medium-sized companies [Banking:Non-Consolidated] |
(in millions of yen) |
|||||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Domestic loans to small and medium-sized companies |
2,887,510 | 148,175 | 116,128 | 2,739,335 | 2,771,382 | ||||||||||
Percentage to total domestic loans |
34.40 | % | 0.73 | % | 0.95 | % | 33.67 | % | 33.45 | % |
70
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(4) | Loans by type of industry [Trust accounts] |
(in millions of yen) | ||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic offices (excluding loans booked at offshore markets) |
651,019 | (244,575 | ) | (84,853 | ) | 895,594 | 735,872 | |||||
Manufacturing |
34,053 | (15,372 | ) | (6,132 | ) | 49,425 | 40,185 | |||||
Agriculture |
| | | | | |||||||
Forestry |
19 | (7 | ) | (3 | ) | 26 | 22 | |||||
Fishery |
1,064 | (161 | ) | (64 | ) | 1,225 | 1,128 | |||||
Mining |
34 | (43 | ) | (27 | ) | 77 | 61 | |||||
Construction |
2,010 | (3,463 | ) | (234 | ) | 5,473 | 2,244 | |||||
Utilities |
79,905 | (37,566 | ) | (13,560 | ) | 117,471 | 93,465 | |||||
Media and Communication |
61,603 | (45,466 | ) | (14,384 | ) | 107,069 | 75,987 | |||||
Wholesale and Retail |
6,825 | (3,847 | ) | (1,533 | ) | 10,672 | 8,358 | |||||
Banks and other financial institutions |
42,296 | (57,931 | ) | (19,930 | ) | 100,227 | 62,226 | |||||
Real estate |
60,850 | (10,425 | ) | (4,220 | ) | 71,275 | 65,070 | |||||
Services |
24,635 | (22,020 | ) | (1,707 | ) | 46,655 | 26,342 | |||||
Municipal government |
34,777 | (2,046 | ) | (973 | ) | 36,823 | 35,750 | |||||
Other industries |
302,941 | (46,227 | ) | (22,085 | ) | 349,168 | 325,026 | |||||
Overseas offices and loans booked at offshore markets |
| | | | | |||||||
Total |
651,019 | (244,575 | ) | (84,853 | ) | 895,594 | 735,872 | |||||
(5) | Domestic consumer loans [Trust accounts] |
(in millions of yen) | ||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Total domestic consumer loans |
212,215 | (34,778 | ) | (15,874 | ) | 246,994 | 228,089 | |||||
Housing loans |
210,004 | (34,045 | ) | (15,553 | ) | 244,050 | 225,558 | |||||
Others |
2,210 | (733 | ) | (320 | ) | 2,943 | 2,530 |
(6) | Domestic loans to small and medium-sized companies [Trust accounts] |
(in millions of yen) |
|||||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Domestic loans to small and medium-sized companies |
423,058 | (118,301 | ) | (49,389 | ) | 541,359 | 472,447 | ||||||||
Percentage to total domestic loans |
64.98 | % | 4.53 | % | 0.78 | % | 60.44 | % | 64.20 | % |
71
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(7) | Loans by type of industry [Banking:Non-Consolidated and Trust accounts] |
(in millions of yen) | ||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic offices (excluding loans booked at offshore markets) |
9,042,862 | 11,572 | 22,768 | 9,031,290 | 9,020,093 | |||||||
Manufacturing |
1,139,677 | (102,670 | ) | (82,851 | ) | 1,242,347 | 1,222,528 | |||||
Agriculture |
1,613 | (178 | ) | (152 | ) | 1,791 | 1,765 | |||||
Forestry |
19 | (7 | ) | (3 | ) | 26 | 22 | |||||
Fishery |
27,226 | 504 | 39 | 26,722 | 27,187 | |||||||
Mining |
3,843 | (1,614 | ) | (406 | ) | 5,457 | 4,249 | |||||
Construction |
161,657 | (107,668 | ) | (12,272 | ) | 269,325 | 173,929 | |||||
Utilities |
208,881 | (35,669 | ) | (19,253 | ) | 244,550 | 228,134 | |||||
Media and Communication |
858,008 | (94,559 | ) | (71,928 | ) | 952,567 | 929,936 | |||||
Wholesale and Retail |
617,176 | (58,133 | ) | (15,064 | ) | 675,309 | 632,240 | |||||
Banks and other financial institutions |
2,775,372 | 563,301 | 384,963 | 2,212,071 | 2,390,409 | |||||||
Real estate |
1,141,877 | 44,663 | 14,402 | 1,097,214 | 1,127,475 | |||||||
Services |
685,165 | (33,332 | ) | (40,627 | ) | 718,497 | 725,792 | |||||
Municipal government |
478,472 | (133,579 | ) | (134,968 | ) | 612,051 | 613,440 | |||||
Other industries |
943,870 | (29,484 | ) | 894 | 973,354 | 942,976 | ||||||
Overseas offices and loans booked at offshore markets |
255,000 | (86,905 | ) | (33,967 | ) | 341,905 | 288,967 | |||||
Total |
9,297,862 | (75,333 | ) | (11,198 | ) | 9,373,196 | 9,309,061 | |||||
(8) | Domestic consumer loans [Banking:Non-Consolidated and Trust accounts] |
(in millions of yen) | ||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Total domestic consumer loans |
568,549 | 27,062 | 22,089 | 541,486 | 546,459 | |||||||
Housing loans |
542,294 | 31,709 | 24,715 | 510,584 | 517,579 | |||||||
Others |
26,254 | (4,646 | ) | (2,625 | ) | 30,901 | 28,880 |
(9) | Domestic loans to small and medium-sized companies [Banking:Non-Consolidated and Trust accounts] |
(in millions of yen) |
|||||||||||||||
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of 2004 (C) |
|||||||||||
(A) (B) |
(A) (C) |
||||||||||||||
Domestic loans to small and medium-sized companies |
3,310,568 | 29,873 | 66,739 | 3,280,695 | 3,243,829 | ||||||||||
Percentage to total domestic loans |
36.60 | % | 0.28 | % | 0.64 | % | 36.32 | % | 35.96 | % |
72
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
9. | Loans and Deposits [Non-Consolidated] |
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Deposits (ending balance) |
10,466,006 | (45,426 | ) | (378,724 | ) | 10,511,433 | 10,844,731 | |||||
Deposits (average balance) |
10,647,563 | (444,907 | ) | (319,794 | ) | 11,092,470 | 10,967,357 | |||||
Loans (ending balance) |
8,646,843 | 169,242 | 73,654 | 8,477,601 | 8,573,188 | |||||||
Loans (average balance) |
8,520,251 | 311,690 | 168,052 | 8,208,560 | 8,352,199 |
10. | Domestic Deposits [Non-Consolidated] |
(in millions of yen) | ||||||||||||
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Individuals |
6,715,979 | (18,216 | ) | (18,437 | ) | 6,734,195 | 6,734,416 | |||||
Corporations and others |
2,719,513 | (271,863 | ) | (122,790 | ) | 2,991,376 | 2,842,303 | |||||
Domestic deposits |
9,435,492 | (290,079 | ) | (141,228 | ) | 9,725,571 | 9,576,720 |
Note: Amounts do not include negotiable certificates of deposit, deposits of overseas offices and JOM accounts.
11. | Number of Employees [Non-Consolidated] |
As of September 30, 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Number of Employees |
5,850 | (242 | ) | (5 | ) | 6,092 | 5,855 |
12. | Number of Offices [Non-Consolidated] |
As of 2004 (A) |
Increase/ (Decrease) |
Increase/ (Decrease) |
As of September 30, 2003 (B) |
As of March 31, 2004 (C) | ||||||||
(A) (B) |
(A) (C) |
|||||||||||
Domestic |
46 | (4 | ) | (2 | ) | 50 | 48 | |||||
Head office and Branches |
44 | (4 | ) | (3 | ) | 48 | 47 | |||||
Sub-branches and Agencies |
2 | | 1 | 2 | 1 | |||||||
Overseas |
8 | | | 8 | 8 | |||||||
Branches |
5 | | | 5 | 5 | |||||||
Representative offices |
3 | | | 3 | 3 | |||||||
Total |
54 | (4 | ) | (2 | ) | 58 | 56 | |||||
73
Mitsubishi Tokyo 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, 2004 |
||||||
vs. Mar. 31, 2004 |
||||||
Deferred Tax Assets |
293.1 | (22.7 | ) | |||
Allowance for loan losses |
120.3 | (1.2 | ) | |||
Write down of investment securities |
21.9 | 5.7 | ||||
Net operating loss carryforwards |
154.3 | (23.3 | ) | |||
Reserve for employees retirement benefits |
7.5 | 1.8 | ||||
Unrealized losses on securities available for sale |
| | ||||
Other |
16.2 | (1.4 | ) | |||
Valuation allowance |
(27.2 | ) | (4.2 | ) | ||
Deferred tax liabilities |
83.5 | (47.0 | ) | |||
Gains on placing trust for retirement benefits |
| | ||||
Unrealized gains on securities available for sale |
81.7 | (46.2 | ) | |||
Other |
1.8 | (0.7 | ) | |||
Net Deferred Tax Assets |
209.5 | 24.2 | ||||
[Consolidated] | ||||||
Net Deferred Tax Assets |
210.8 | 24.3 |
(2) | Net Business Profits before Credit Costs and Taxable Income (Current Interim Fiscal Year) |
[Non-Consolidated]
(in billions of yen) |
|||
Interim FY 2004 |
|||
Net business profits before credit costs |
87.2 | ||
Credit related costs |
11.9 | ||
Income before income taxes |
64.5 | ||
Reconciliation to taxable income |
(7.1 | ) | |
Taxable income |
57.3 |
(3) | Net Business Profits before Credit Costs and Taxable Income (Past Five Fiscal Years) |
[Non-Consolidated]
(in billions of yen) |
|||||||||||||||
FY 1999 |
FY 2000 |
FY 2001 |
FY 2002 |
FY 2003 |
|||||||||||
Net business profits before credit costs |
177.7 | 163.0 | 156.2 | 178.4 | 188.0 | ||||||||||
Credit related costs |
147.9 | 176.4 | 181.5 | 144.8 | 29.6 | ||||||||||
Income before income taxes |
129.5 | 26.3 | (41.9 | ) | (197.9 | ) | 131.2 | ||||||||
Reconciliation to taxable income |
(158.4 | ) | (88.6 | ) | 4.6 | (199.7 | ) | (39.7 | ) | ||||||
Taxable income |
(28.9 | ) | (62.3 | ) | (37.2 | ) | (397.6 | ) | 91.5 |
(4) | Classification Based on Prior Year Operating Results as Provided in the JICPA Audit Committee Report No.66 |
Although we recorded taxable income for the six months ended September 30, 2004, 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 followings : (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, 2004 (Assumptions) |
(in billions of yen) | ||
Five year total (2004 2nd half to 2009 1st half) | ||
Net business profits (based on our business plan) (*1) |
1,070.0 | |
Net business profits (basis of realizability determination) (*2) |
880.0 | |
Income before income taxes (basis of realizability determination) |
700.0 | |
Taxable income before adjustments (basis of realizability determination) (*3) |
800.0 | |
Temporary difference + net operating loss carryforwards (for which deferred tax assets shall be recognized) |
701.4 | |
Deferred tax assets at September 30, 2004 (*4) |
293.1 |
(*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) multiplied by effective tax rate |
(Reference) Assumptions for Business Plan
FY 2004 2nd half |
FY 2005 |
FY2006 |
FY2007 |
FY2008 |
FY 2009 1st half |
|||||||||||||||||||
S/T interest rate (3 m/s TIBOR) |
0.08 | % | 0.13 | % | 0.50 | % | 0.57 | % | 0.88 | % | 1.12 | % | ||||||||||||
L/T interest rate (10 year JGB) |
1.78 | % | 1.90 | % | 2.30 | % | 2.03 | % | 2.58 | % | 2.95 | % | ||||||||||||
Exchange rate (USD/Yen) |
¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 |
74
Mitsubishi Tokyo 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, 2004 |
|||||
Projected benefits obligation at beginning of the period |
(A-B+C-D+E+H+K) | 273,953 | |||
Fair value of plan assets at beginning of the period |
(A) | 326,777 | |||
Prepaid pension cost at beginning of the period |
(B) | 103,227 | |||
Reserve for employees retirement benefits at beginning of the period |
(C) | | |||
Unrecognized plan assets at beginning of the period |
(D) | 57,595 | |||
Unrecognized net obligation by the change of accounting policy at beginning of the period |
(E) | 5,141 | |||
Amortization for the current period (Amortized period 5 years) |
(F) | 2,570 | |||
Unrecognized net obligation at end of the interim period |
(G) | 2,570 | |||
Unrecognized prior service cost at beginning of the period |
(H) | (3,545 | ) | ||
Amortization for the current period (Amortized period 12 years) |
(I) | (175 | ) | ||
Unrecognized prior service cost at end of the interim period |
(J) | (3,370 | ) | ||
Unrecognized net actuarial loss at beginning of the period |
(K) | 106,403 | |||
Amortization for the current period (Amortized period 12 years) |
(L) | 5,359 | |||
Unrecognized net actuarial loss at end of the interim period |
(M) | 101,043 | |||
Net amount unrecognized at beginning of the period |
(N)(E+H+K) | 107,999 | |||
Net amount amortized for the current period |
(O)(F+I+L) | 7,754 | |||
Net amount unrecognized at end of the interim period |
(P)(N-O) | 100,244 |
Note: Discount rate is 2.2%
75
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
15. | Earning Projections for the Fiscal Year Ending March 31, 2005 |
[Consolidated]
(in billions of yen) | ||||
For the year ending March 31, 2005 |
For the six months ended September 30, 2004 | |||
Ordinary income |
470.0 | 242.6 | ||
Ordinary profit |
125.0 | 61.9 | ||
Net income |
65.0 | 31.1 | ||
[Non-Consolidated]
(in billions of yen) | ||||
For the year ending March 31, 2005 |
For the six months ended September 30, 2004 | |||
Ordinary income |
450.0 | 227.7 | ||
Net business profits before credit costs for trust accounts and provision for formula allowance for loan losses |
165.0 | 87.2 | ||
Ordinary profit |
120.0 | 59.6 | ||
Net income |
65.0 | 30.1 | ||
76
Interim Financial Highlights for the Fiscal Year 2004
November 24, 2004
Mitsubishi Tokyo Financial Group, Inc.
Mitsubishi Tokyo Financial Group, Inc.
Interim Financial Highlights under Japanese GAAP for the Fiscal Year Ending March 31, 2005
1. Highlights of Consolidated Statements of Operations
(in billions of yen) |
|||||||||||
Six months ended September 30, 2003 (A) |
Six months ended September 30, 2004 (B) |
(B) (A) |
|||||||||
1 |
Gross profits |
898.9 | 885.9 | (12.9 | ) | ||||||
2 | Net interest income |
533.1 | 506.5 | (26.5 | ) | ||||||
3 |
Trust fees |
36.4 | 46.1 | 9.6 | |||||||
4 |
Credit costs for trust accounts |
(8.4 | ) | (2.3 | ) | 6.0 | |||||
5 |
Net fees and commissions |
195.8 | 241.3 | 45.5 | |||||||
6 |
Net trading profits |
72.0 | 50.2 | (21.7 | ) | ||||||
7 |
Net other business income |
61.5 | 41.7 | (19.8 | ) | ||||||
8 |
Net gains on foreign exchange transactions |
45.5 | 36.1 | (9.4 | ) | ||||||
9 |
Net gains (losses) on debt securities |
(2.7 | ) | 27.8 | 30.5 | ||||||
10 |
Net gains (losses) on derivatives (total of the two Banks *) |
25.7 | (33.0 | ) | (58.8 | ) | |||||
11 |
General and administrative expenses |
489.5 | 499.3 | 9.8 | |||||||
12 |
Personnel expenses (total of the two Banks *) |
120.8 | 114.3 | (6.5 | ) | ||||||
13 |
Non-personnel expenses (total of the two Banks *) |
173.5 | 176.8 | 3.2 | |||||||
14 |
Taxes (total of the two Banks *) |
15.2 | 16.5 | 1.2 | |||||||
15 |
Net business profits before credit costs for trust accounts and provision for formula allowance for loan losses |
417.8 | 388.9 | (28.9 | ) | ||||||
16 |
Provision for formula allowance for loan losses |
[119.0 | ] | [2,374 | ] | [118.4 | ] | ||||
17 |
Net business profits |
409.3 | 386.5 | (22.8 | ) | ||||||
18 |
Net non-recurring gains (losses) |
(135.9 | ) | (76.2 | ) | 59.6 | |||||
19 |
Credit related costs |
(91.8 | ) | (65.4 | ) | 26.4 | |||||
20 |
Losses on loan charge-offs |
(49.8 | ) | (28.5 | ) | 21.2 | |||||
21 |
Provision for specific allowance for loan losses |
[40.3 | ] | [(227.0 | )] | [(267.3 | )] | ||||
22 |
Provision for allowance for loans to specific foreign borrowers |
[4.1 | ] | [0.8 | ] | [(3.3 | )] | ||||
23 |
Losses on sales of loans to the Resolution and Collection Corporation |
(13.8 | ) | (0.8 | ) | 13.0 | |||||
24 |
Other credit related costs |
(28.1 | ) | (35.9 | ) | (7.7 | ) | ||||
25 |
Net losses on equity securities |
(9.0 | ) | (4.7 | ) | 4.3 | |||||
26 |
Gains on sales of equity securities |
48.0 | 42.9 | (5.0 | ) | ||||||
27 |
Losses on sales of equity securities |
(53.4 | ) | (14.1 | ) | 39.3 | |||||
28 |
Losses on write down of equity securities |
(3.6 | ) | (33.5 | ) | (29.8 | ) | ||||
29 |
Other |
(34.9 | ) | (6.1 | ) | 28.8 | |||||
30 |
Ordinary profit |
273.4 | 310.3 | 36.8 | |||||||
31 |
Net special gains |
234.9 | 17.5 | (217.3 | ) | ||||||
32 |
Gains on loans charged-off |
15.3 | 12.3 | (2.9 | ) | ||||||
33 |
Reversal of allowance for loan losses |
163.5 | 11.3 | (152.2 | ) | ||||||
34 |
Impairment losses |
| (3.9 | ) | (3.9 | ) | |||||
35 |
Refund of enterprise taxes by the Tokyo Metropolitan Government |
41.9 | | (41.9 | ) | ||||||
36 |
Gains on transfer of the substitutional portion of future pension obligations |
26.5 | | (26.5 | ) | ||||||
37 |
Income before income taxes and others |
508.3 | 327.8 | (180.4 | ) | ||||||
38 |
Income taxes-current |
25.5 | 39.6 | 14.1 | |||||||
39 |
Income taxes-deferred |
159.5 | 95.6 | (63.8 | ) | ||||||
40 |
Minority interest |
21.4 | 20.9 | (0.5 | ) | ||||||
41 |
Net income |
301.8 | 171.6 | (130.1 | ) | ||||||
42 |
Total credit costs (4+19+33) | 63.2 | (56.3 | ) | (119.6 | ) | |||||
Operating Results of Significant Subsidiaries for the Six Months Ended September 30, 2004
Gross profits |
General and administrative expenses |
Net business profits before credit costs |
Net income | |||||||
43 |
The Bank of Tokyo-Mitsubishi, Ltd. | 471.0 | 237.6 | 233.4 | 108.1 | |||||
44 |
The Mitsubishi Trust and Banking Corporation | 154.9 | 70.1 | 87.2 | 30.1 | |||||
45 |
Mitsubishi Securities Co., Ltd. and Consolidated Subsidiaries | 54.6 | 45.3 | 9.2 | 11.4 | |||||
46 |
UnionBanCal Corporation | 130.5 | 81.2 | 49.3 | 42.1 |
* | 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. |
1
Mitsubishi Tokyo Financial Group, Inc
2. Highlights of Consolidated Balance Sheets
(in billions of yen except percentages) |
|||||||||||
As of March 31, |
As of September 30, |
(B) (A) |
|||||||||
1 |
Loans and bills discounted |
46,590.1 | 47,420.9 | 830.8 | |||||||
2 |
Domestic loans (except for loans from The Bank of Tokyo-Mitsubishi, Ltd. and The Mitsubishi Trust and Banking Corporation to MTFG) |
30,844.5 | 31,091.4 | 246.8 | |||||||
3 |
Overseas branches |
4,427.9 | 4,526.9 | 98.9 | |||||||
4 |
Overseas subsidiaries (UnionBanCal Corporation and Bank of Tokyo-Mitsubishi Trust Company) |
2,947.9 | 3,171.0 | 223.0 | |||||||
5 |
Domestic housing loans |
7,655.4 | 7,894.4 | 238.9 | |||||||
6 |
Domestic other consumer loans |
461.8 | 435.9 | (25.8 | ) | ||||||
7 |
Book value of loans sold during the six months ended September 30, 2003 and 2004 (total of the two Banks*) |
(77.2 | ) | (29.7 | ) | 47.5 | |||||
8 |
Sold to the Resolution and Collection Corporation (RCC) |
(38.2 | ) | (1.8 | ) | 36.3 | |||||
9 |
[Sold to the RCC before charge-offs] |
[(63.3 | )] | [(4.9 | )] | [58.3 | ] | ||||
10 |
Other loans sold |
(39.0 | ) | (27.8 | ) | 11.2 | |||||
11 |
Charge-offs during the six months ended September 30, 2003 and 2004 (total of the two Banks*) |
(39.1 | ) | (18.2 | ) | 20.9 | |||||
12 |
Investment securities |
28,329.5 | 33,690.3 | 5,360.8 | |||||||
13 |
Domestic equity securities |
3,761.2 | 4,361.1 | 599.9 | |||||||
14 |
Japanese Government Bonds (total of the two Banks *) |
14,984.5 | 19,936.2 | 4,951.6 | |||||||
15 |
Foreign bonds (total of the two Banks *) |
5,744.3 | 5,280.0 | (464.3 | ) | ||||||
16 |
Book value of investment securities sold during the six months ended September 30, 2003 and 2004 (total of the two Banks*) |
(493.8 | ) | (225.4 | ) | 268.4 | |||||
17 |
Transferred to an exchange-traded fund |
(81.5 | ) | | 81.5 | ||||||
18 |
Sold in the market or by other means |
(412.2 | ) | (225.4 | ) | 186.8 | |||||
19 |
Write down during the six months ended September 30, 2003 and 2004 (total of the two Banks*) |
(6.7 | ) | (33.4 | ) | (26.7 | ) | ||||
20 |
Deposits |
66,097.5 | 67,082.4 | 984.8 | |||||||
21 |
Total of the two Banks * |
62,664.1 | 62,817.3 | 153.2 | |||||||
22 |
Individuals |
33,402.3 | 33,801.7 | 399.3 | |||||||
23 |
Corporations and others |
20,575.1 | 20,396.4 | (178.6 | ) | ||||||
24 |
Overseas branches |
7,852.1 | 7,832.0 | (20.1 | ) | ||||||
25 |
Total shareholders equity |
4,295.2 | 4,306.4 | 11.1 | |||||||
26 |
Capital stock |
1,258.0 | 1,258.0 | | |||||||
27 |
Capital surplus |
931.3 | 931.1 | (0.1 | ) | ||||||
28 |
Retained earnings |
1,506.5 | 1,659.4 | 152.8 | |||||||
29 |
Unrealized gains on securities available for sale |
560.3 | 422.9 | (137.3 | ) | ||||||
30 |
Less treasury stock |
(3.6 | ) | (3.4 | ) | 0.1 | |||||
31 |
BIS risk-adjusted capital ratio |
12.95 | % | 10.92 | % | (2.02 | )% | ||||
32 |
Tier I ratio |
7.14 | % | 7.39 | % | 0.24 | % | ||||
33 |
Tier I capital |
3,859.4 | 4,025.9 | 166.4 | |||||||
34 |
Risk-adjusted assets |
53,996.7 | 54,457.1 | 460.3 | |||||||
[Valuation gains (losses) on securities available for sale] | |||||||||||
(in billions of yen) |
|||||||||||
As of March 31, |
As of September 30, |
(B) (A) |
|||||||||
35 |
Total securities available for sale |
947.5 | 705.7 | (241.8 | ) | ||||||
36 |
Domestic equity securities |
785.3 | 634.6 | (150.6 | ) | ||||||
37 |
Domestic bonds |
3.3 | 24.1 | 20.7 | |||||||
38 |
Japanese Government Bonds |
(2.2 | ) | 16.1 | 18.4 | ||||||
39 |
Foreign bonds |
107.2 | 28.0 | (79.2 | ) |
* | 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
Mitsubishi Tokyo Financial Group, Inc.
3. Net operating profits
Core net operating profits |
| The net operating profits for the three business segments (retail, corporate and trust assets) | ||
Net operating profits |
| Consolidated business profits before consolidation adjustments (managerial accounts basis; excludes dividends from subsidiaries) |
4. Disclosed Claims under the Financial Reconstruction Law (FRL)
(1) Status of Disclosed Claim under the FRL [prompt report]
(in bullions of yen) |
||||||||||||||||||||
As of March 31, 2002 (A) |
As of March 31, 2003 (B) |
As of September 30, 2003 (C) |
As of March 31, 2004 (D) |
As of September 30, 2004 (E) |
Increase/ (Decrease) |
|||||||||||||||
(E) - (D) |
||||||||||||||||||||
1 | Claims to bankrupt and substantially bankrupt debtors |
419.0 | 226.4 | 182.3 | 140.4 | 107.8 | (32.5 | ) | ||||||||||||
2 | Claims under high risk |
1,933.5 | 1,031.3 | 745.7 | 541.3 | 1,168.0 | 626.7 | |||||||||||||
3 | Claims under close observation |
1,916.8 | 1,357.4 | 929.2 | 737.3 | 356.6 | (380.7 | ) | ||||||||||||
4 | Total Disclosed Claims (A) |
4,269.4 | 2,615.2 | 1,857.2 | 1,419.0 | 1,632.5 | 213.4 | |||||||||||||
5 | Total Credit Exposure (B) |
52,401.4 | 48,951.2 | 48,282.0 | 48,306.5 | 49,730.3 | 1,423.8 | |||||||||||||
6 | Disclosed Claims Ratio (A/B) |
8.14 | % | 5.34 | % | 3.84 | % | 2.93 | % | 3.28 | % | 0.34 | % |
3
Mitsubishi Tokyo Financial Group, Inc.
(2) Status of Non Performing Assets [prompt report]
a. Six months results ended September 30, 2004
(in billions of yen) |
||||||||||||||
As of March 31, |
Inflows (B) |
Outflows (C) |
As of 2004 |
Net increase |
||||||||||
A+B-C |
(B - C) |
|||||||||||||
1 | Claims to bankrupt and substantially bankrupt debtors |
140.4 | 5.0 | (37.6 | ) | 107.8 | (32.5 | ) | ||||||
2 | Claims under high risk |
541.3 | 856.7 | (230.0 | ) | 1,168.0 | 626.7 | |||||||
3 | Total |
681.7 | 861.8 | (267.6 | ) | 1,275.9 | 594.1 | |||||||
b. Six months results ended March 31, 2004
(in billions of yen) |
||||||||||||||
As of 2003 (A) |
Inflows (B) |
Outflows (C) |
As of 2004 |
Net increase |
||||||||||
A+B-C |
(B - C) |
|||||||||||||
4 | Claims to bankrupt and substantially bankrupt debtors |
182.3 | 14.7 | (56.5 | ) | 140.4 | (41.8 | ) | ||||||
5 | Claims under high risk |
745.7 | 120.0 | (324.4 | ) | 541.3 | (204.4 | ) | ||||||
6 | Total |
928.0 | 134.7 | (381.0 | ) | 681.7 | (246.3 | ) | ||||||
c. Six months results ended September 30, 2003
(in billions of yen) |
||||||||||||||
As of March 31, 2003 (A) |
Inflows (B) |
Outflows (C) |
As of September 30, 2003 |
Net increase |
||||||||||
A+B-C |
(B - C) |
|||||||||||||
7 | Claims to bankrupt and substantially bankrupt debtors |
226.4 | 14.4 | (58.5 | ) | 182.3 | (44.1 | ) | ||||||
8 | Claims under high risk |
1,031.3 | 150.7 | (436.3 | ) | 745.7 | (285.6 | ) | ||||||
9 | Total |
1,257.8 | 165.1 | (494.9 | ) | 928.0 | (329.7 | ) | ||||||
(3) Status of Secured Coverage on Disclosed Claims under the FRL [prompt report]
(in billions of yen) |
||||||||||||||||
Disclosed amount |
Collateral, Guarantees, etc |
Unsecured (A) |
Reserves (B) |
Coverage Ratio |
Coverage Ratio (as of March 31, 2004) |
|||||||||||
(B/A) |
||||||||||||||||
10 | Claims to bankrupt and substantially bankrupt debtors |
107.8 | 95.9 | 11.9 | 11.9 | 100.00 | % | 99.97 | % | |||||||
11 | Claims under high risk |
1,168.0 | 441.1 | 726.8 | 376.0 | 51.73 | % | 64.98 | % | |||||||
12 | Claims under close observation |
356.6 | 204.3 | 152.2 | 43.9 | 28.84 | % | 29.23 | % | |||||||
13 | Total |
1,632.5 | 741.4 | 891.0 | 431.9 | 48.47 | % | 42.95 | % | |||||||
14 | (Change from March 31,2004) |
213.4 | 68.1 | 145.3 | 111.5 | 5.51 | % | | ||||||||
15 | Normal claims |
48,097.8 | | | | |
(4) Status of Secured Coverage on Self-Assessment of Assets [prompt report]
As of 2003 (A) |
As of 2003 (B) |
As of 2004 (C) |
As of 2004 (D) |
||||||||||||||
(D) - (C) |
|||||||||||||||||
16 | Normal |
0.17 | % | 0.17 | % | 0.14 | % | 0.12 | % | (0.02 | )% | ||||||
17 | Close Watch |
9.30 | % | 8.74 | % | 9.41 | % | 6.13 | % | (3.28 | )% | ||||||
18 | Close Watch |
3.31 | % | 4.00 | % | 4.81 | % | 4.45 | % | (0.36 | )% | ||||||
19 | Borrowers with Credit under Close Observation |
21.16 | % | 20.23 | % | 21.10 | % | 13.73 | % | (7.36 | )% | ||||||
20 | Likely to become Bankrupt (excluding secured assets) |
67.44 | % | 72.42 | % | 65.23 | % | 51.76 | % | (13.46 | )% |
Note: Above figures exclude certain mortgage and consumer loans.
4
Mitsubishi Tokyo Financial Group, Inc.
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) |
Sep. 30, 2004 |
||||||||||
vs. Mar. 31, 2004 |
||||||||||
1 |
Deferred Tax Assets |
1,020.5 | (96.6 | ) | ||||||
2 |
Allowance for loan losses |
356.4 | 2.5 | |||||||
3 |
Write down of investment securities |
104.1 | 4.5 | |||||||
4 |
Net operating loss carryforwards |
561.4 | (101.3 | ) | ||||||
5 |
Reserve for employees retirement benefits |
39.4 | 3.5 | |||||||
6 |
Unrealized losses on securities available for sale |
| | |||||||
7 |
Other |
53.4 | (1.9 | ) | ||||||
8 |
Valuation allowance |
(94.4 | ) | (4.0 | ) | |||||
9 |
Deferred tax liabilities |
308.8 | (95.4 | ) | ||||||
10 |
Gains on placing trust for retirement benefits |
7.3 | | |||||||
11 |
Unrealized gains on securities available for sale |
295.6 | (91.7 | ) | ||||||
12 |
Other |
5.8 | (3.6 | ) | ||||||
13 |
Net Deferred Tax Assets |
711.7 | (1.2 | ) | ||||||
(Consolidated) |
||||||||||
14 | Net Deferred Tax Assets | 653.9 | (1.5 | ) |
(2) | Balance of Net Deferred Tax Assets and |
% of Tier I Capital
(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 2004 | ||||
15 |
Net business profits before credit costs | 320.6 | ||
16 |
Credit related costs | 50.1 | ||
17 |
Income before income taxes | 240.6 | ||
18 |
Reconciliation to taxable income | 3.1 | ||
19 |
Taxable income | 243.8 |
(4) | Net Business Profits before Credit Costs and |
Taxable Income (Past Five Fiscal Years)
(Total of the two banks) |
(in billions of yen) |
FY 1999 |
FY 2000 |
FY 2001 |
FY 2002 |
FY 2003 |
|||||||||||||
20 |
Net business profits before credit costs | 578.6 | 552.0 | 619.5 | 689.9 | 654.8 | |||||||||||
21 |
Credit related costs | 652.4 | 730.5 | 666.3 | 485.9 | (105.7 | ) | ||||||||||
22 |
Income before income taxes | 409.4 | (199.0 | ) | (359.3 | ) | (485.2 | ) | 719.0 | ||||||||
23 |
Reconciliation to taxable income | (76.3 | ) | 304.4 | 142.0 | (1,021.4 | ) | (443.9 | ) | ||||||||
24 |
Taxable income | 333.1 | 105.3 | (217.2 | ) | (1,506.7 | ) | 275.0 |
(5) | Comparison with Past Fiscal Years |
5
Mitsubishi Tokyo Financial Group, Inc.
(6) | Classification Based on Prior Year Operating Results as Provided in the JICPA Audit Committee Report No. 66 |
Although we recorded taxable income for the six months ended September 30, 2004, 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 followings: (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, 2004 (Assumptions) |
(in billions of yen)
Five year total (2004 2nd half to | ||||
1 |
Net business profits (based on our business plan) (*1) | 4,940.0 | ||
2 |
Net business profits (basis of realizability determination) (*2) | 3,990.0 | ||
3 |
Income before income taxes (basis of realizability determination) | 3,250.0 | ||
4 |
Taxable income before adjustments (basis of realizability determination) (*3) | 3,680.0 | ||
5 |
Temporary difference + net operating loss carryforwards (for which deferred tax assets shall be recognized) | 2,508.0 | ||
6 |
Deferred tax assets at September 30, 2004 (*4) | 1,023.0 |
(*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) | Line 5 multiplied by effective tax rate (consolidated corporate-tax basis) |
(Reference) Assumptions for Business Plan
FY 2004 2nd half |
FY 2005 |
FY 2006 |
FY 2007 |
FY 2008 |
FY 2009 1st half |
|||||||||||||||||||
S/T interest rate (3 m/s TIBOR) |
0.08 | % | 0.13 | % | 0.50 | % | 0.57 | % | 0.88 | % | 1.12 | % | ||||||||||||
L/T interest rate (10 year JGB) |
1.78 | % | 1.90 | % | 2.30 | % | 2.03 | % | 2.58 | % | 2.95 | % | ||||||||||||
Exchange rate (USD/Yen) |
¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 | ¥ | 105 |
6
Mitsubishi Tokyo Financial Group, Inc.
6. Earning Projections for the Fiscal Year Ending March 31, 2005
<Non-consolidated>
(in billions of yen) |
||||||||
For the fiscal year ended March 31, 2004 (Actual) |
For the fiscal year ending March 31, 2005 |
(Reference) for the fiscal year ending | ||||||
1 | Operating income |
69.3 | 227.0 | 190.0 | ||||
2 | Ordinary profit |
64.4 | 206.0 | 183.0 | ||||
3 | Net income |
64.4 | 206.0 | 183.0 |
*Announced on May 24, 2004
(in yen per share) |
||||||||
For the fiscal year ended March 31, 2004 (Actual) |
For the fiscal year ending March 31, 2005 |
(Reference) for the fiscal year ending March 31, 2005 | ||||||
4 | Annual dividends per common share |
6,000 | 6,000 | 6,000 |
*Announced on May 24, 2004
<Consolidated>
(in billions of yen) |
||||||||
For the fiscal year ended March 31, 2004 (Actual) |
For the fiscal year ending March 31, 2005 |
(Reference) for the fiscal year ending | ||||||
5 | Ordinary income |
2,555.1 | 2,450.0 | 2,450.0 | ||||
6 | Ordinary profit |
578.3 | 640.0 | 640.0 | ||||
7 | Net income |
560.8 | 340.0 | 340.0 |
*Announced on May 24, 2004
These materials contain forward-looking statements and other forward-looking information relating to the company and/or the group as a whole (the forward-looking statements). The forward-looking statements are not historical facts and include, reflect or are otherwise based upon, among other things, the companys current estimations, projections, views, policies, business strategies, targets, expectations, assumptions and evaluations with respect to general economic conditions, its results of operations, its financial condition, its 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 companys management will strive to achieve through the successful implementation of the companys 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, expect 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 companys latest annual report and other disclosures.
7