Sumitomo Trust & Banking
COMPANY The Sumitomo Trust & Banking Co., Ltd.
INFORMATION 4-4, Marunouchi 1-
chome,Chiyoda-ku,
TOKYO 100-8233
JAPAN
Nov. 25, 2003
----------------------------------------------------------------------------------------------------------
Financial Results For First Half of Fiscal Year 2003
The Sumitomo Trust and Banking Company, Limited ("the Bank"hereafter)
announces
its financial results for first half of fiscal 2003 ended September 30, 2003 and
forecasts
for full fiscal year 2003 ending March 31, 2004. The financial summary is stated as
below.
Financial Results for First Half of Fiscal Year 2003
Millions of
Half Years ended Millions of Yen U.S. Dollars
--------------------------------------------------------------
September 30 2003 2002 % change 2003
(unaudited)
----------------------------------------------------------------------------------------------------------
Operating Income 262,014 299,295 (12.5) 2,355.2
Net Operating
Income 66,632 40,389 65.0 598.9
Net Income 40,961 5,216 685.2 368.2
Total Assets 15,081,048 17,475,927 (13.7) 135,560.0
Total Stockholders' Equity 719,692 691,303 4.1 6,469.1
Per Share Yen change U.S. Dollars
--------------------------------------------------------------
Net Income 28.09 3.60 24.49 0.25
Stockholders' Equity 424.99 406.75 18.24 3.82
% change
--------------------------------------------------------------
BIS Capital Adequacy Ratio 12.10 11.56 0.54
(preliminary)
Millions of
Cash Flows Millions of Yen U.S. Dollars
--------------------------------------------------------------
Cash Flows from Operating Activities (338,731) (147,836) (3,044.8)
Cash Flows from Investing Activities (46,288) (195,539) (416.1)
Cash Flows from Financing Activities 100,542 (29,706) 903.7
Cash and Cash Equivalents at End of 197,221 288,498 1,772.8
Half Fiscal
Year
----------------------------------------------------------------------------------------------------------
Notes :1. U.S. dollar amounts are converted, for convenience only, at 111.25 Yen per dollar
( Interbank rate in Tokyo at September 30,
2003 ).
2. Average number of shares during the fiscal (half ) year
ended :
September 30, 2003: Common Stock 1,458,185,209 ; Preferred Stock
125,000,000
September 30, 2002: Common Stock 1,448,638,547 ; Preferred Stock
125,000,000
March 31, 2003 : Common Stock 1,451,293,525 ; Preferred Stock 125,000,000
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The Sumitomo Trust & Banking Co., Ltd.
Nov. 25, 2003
----------------------------------------------------------------------------------------------------------
3. Number of issued shares as of
:
September 30, 2003: Common Stock 1,458,145,287 ; Preferred Stock
125,000,000
September 30, 2002: Common Stock 1,453,729,132 ; Preferred Stock
125,000,000
March 31, 2003 : Common Stock 1,458,210,364 ; Preferred Stock 125,000,000
4. Consolidation and Application of the Equity
Method
(1)Consolidated Companies 20 Companies
(newly consolidated) - Company
(excluded) - Company
(2)Companies Accounted for by the Equity Companies
Method 5
(newly accounted for by the equity method) - Company
(excluded) - Company
Millions of
Half Years ended Millions of Yen U.S. Dollars
--------------------------------------------------------------
September 30 2003 2002 % change 2003
(unaudited)
----------------------------------------------------------------------------------------------------------
Operating Income 252,334 289,523 (12.8) 2,268.2
Net Operating Income 62,387 38,287 62.9 560.8
Net Income 40,389 20,160 100.3 363.0
Total Assets 15,160,576 17,592,295 (13.8) 136,274.8
Total Stockholders' Equity 729,117 701,046 4.0 6,553.9
Per Share Yen change U.S. Dollars
--------------------------------------------------------------
Net Income 27.70 13.92 13.78 0.25
Dividends [ Common Stock
] - - - -
Dividends [ Preferred
Stock ] - - - -
Stockholders' Equity 431.45 413.45 18.00 3.88
% change
--------------------------------------------------------------
Equity to Total Assets Ratio 4.8 4.0 0.8
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The Sumitomo Trust & Banking Co., Ltd.
Nov. 25, 2003
----------------------------------------------------------------------------------------------------------
Income Forecasts for Fiscal Year 2003
Millions of Yen
---------------
Full Fiscal
Year
-------------------------------------------------------------------------
Operating Income 520,000
Net Operating Income 110,000
Net Income 65,000
-------------------------------------------------------------------------
Millions of Yen
---------------
Full Fiscal
Year
-------------------------------------------------------------------------
Operating Income 500,000
Net Operating Income 100,000
Net Income 60,000
Yen
--------------------------
Cash Dividend per Share
Common Stock 4.00
Preferred Stock 6.08
----------------------------------------------------------------------------------------------------------
For further information, please contact Koichi Onaka / Financial Management
Department
at 03-3286-8354 by phone, 03-3286-4654 by facsimile, or e-mail:
onaka@sumitomotrust.co.jp.
All amounts of yen are presented on a rounding down basis.
Attached are summarized translations of the brief financial statements (Kessan
Tanshin)
and explanatory material.
Consolidated Balance Sheets
(Millions of
Yen)
-----------------------------------------------------------------------------------------------------
Sep-03 Sep-02 Change Mar-03
(unaudited)
-----------------------------------------------------------------------------------------------------
Assets:
Cash and Due from Banks 425,844 732,082 (306,238) 673,327
Call Loans and Bills Bought 61,914 362,909 (300,994) 47,596
Commercial Paper and Other Debt Purchased 97,783 61,724 36,059 98,668
Trading Assets 246,328 517,808 (271,479) 679,926
Money Held in Trust 0 95,068 (95,068) -
Investment Securities 3,746,289 5,184,029 (1,437,740) 3,458,250
Loans and Bills Discounted 8,992,977 8,983,751 9,225 9,143,155
Foreign Exchanges 9,596 12,314 (2,718) 13,534
Other Assets 963,464 1,006,328 (42,864) 1,089,701
Premises and Equipment 110,832 119,206 (8,374) 116,026
Deferred Tax Assets 212,063 225,292 (13,229) 279,420
Customers' Liabilities for Acceptances and
Guarantees 327,807 340,552 (12,745) 319,217
Reserve for Possible Loan Losses (113,853) (165,141) 51,288 (139,060)
-----------------------------------------------------------------------------------------------------
Total Assets 15,081,048 17,475,927 (2,394,879) 15,779,764
-----------------------------------------------------------------------------------------------------
Liabilities:
Deposits 8,587,543 8,458,587 128,956 8,698,805
Negotiable Certificates of Deposit 1,251,566 2,066,518 (814,952) 1,558,646
Call Money and Bills Sold 190,500 266,372 (75,872) 268,700
Payables under Repurchase Agreements 818,273 1,028,870 (210,597) 928,932
Collateral for Lending Securities 502,636 1,450,828 (948,192) 386,870
Trading Liabilities 46,729 309,316 (262,587) 330,403
Borrowed Money 151,329 74,369 76,959 141,657
Foreign Exchanges 12,862 9,486 3,375 9,718
Corporate Bonds 403,500 446,675 (43,175) 306,100
Convertible Bonds 75 2,400 (2,325) 75
Borrowed Money from Trust Accounts 1,358,198 1,522,463 (164,264) 1,477,346
Other Liabilities 610,191 706,468 (96,276) 624,572
Reserve for Employee Bonuses 3,654 3,660 (6) 3,975
Reserve for Employee Retirement Benefits 2,302 3,294 (992) 2,279
Deferred Tax Liabilities 190 60 129 178
Deferred Tax Liabilities on Revaluation Reserve for
Land 2,956 3,684 (728) 3,702
Negative Goodwill 1,383 1,936 (553) 1,659
Acceptances and Guarantees 327,807 340,552 (12,745) 319,217
-----------------------------------------------------------------------------------------------------
Total Liabilities 14,271,700 16,695,548 (2,423,847) 15,062,840
-----------------------------------------------------------------------------------------------------
Minority Interest 89,655 89,075 579 89,093
Stockholders' Equity:
Capital Stock 287,015 285,853 1,162 287,015
Capital Surplus 240,435 239,272 1,162 240,435
Retained Earnings 151,114 192,252 (41,138) 114,190
Revaluation Reserve for Land, Net of Tax 4,506 5,820 (1,314) 5,604
Net Unrealized Gains(Losses) on Available-for-Sale
Securities, Net of Tax 44,782 (23,735) 68,518 (11,309)
Foreign Currency Translation Adjustments, Net of Tax (3,768) (3,875) 107 (3,741)
Treasury Stock (4,393) (4,284) (108) (4,363)
-----------------------------------------------------------------------------------------------------
Total Stockholders' Equity 719,692 691,303 28,388 627,830
-----------------------------------------------------------------------------------------------------
Total Liabilities, Minority Interest
and Stockholders' Equity 15,081,048 17,475,927 (2,394,879) 15,779,764
-----------------------------------------------------------------------------------------------------
Notes to Consolidated Balance Sheets at the end of first half of Fiscal year 2003
1. Trading Assets and Liabilities
Transactions for "Trading Purposes" (purposes for seeking to capture gains arising from
short-term changes in interest rates, currency exchange rates or securities prices in
markets and other market-related indices or from differences between markets) are included
in Trading Assets and Trading Liabilities on a trade date basis.
Trading Account Securities and Monetary Claims are stated at market value of the balance
sheets date and financial derivatives for trading purposes, such as swaps, futures or
options, are valued on the assumption that they are settled at balance sheets date.
2. Investment Securities
Held-to-Maturity Debt Securities are valued on an amortized or accumulated cost basis using
the moving average method. Investment in non-consolidated subsidiaries not accounted for
by the equity method and investment in affiliates not accounted for by the equity method
are stated at cost base using the moving average method.
Available-for-Sale Securities , for which market prices are available, are stated at fair
value calculated by using the average market price during last one month of the interim
period as for Japanese stocks, and by using the market prices at the end of the interim
period as for bonds and others, while those for which fair value is not available are
stated at cost or amortized or accumulated cost basis using the moving average method.
Unrealized gains and losses on available-for-sale securities (net of tax) are included in
Stockholders' Equity.
3. Issuance Costs of Bonds and Discounts of Bonds
Issuance costs of bonds are charged to expenses when incurred. Discount of bonds are
deferred and amortized using the straight-line method over the lives of the bonds.
4. Reserve for Possible Loan Losses
Reserve for possible loan losses of the Bank is provided as detailed below, pursuant to the
internal rules for self-assessment of asset quality and internal rules for possible credit
losses.
For claims to debtors who are legally bankrupt (due to bankruptcy, subject to the Japanese
Civil Rehabilitation Law, suspension of transactions with banks by the rules of
clearinghouses, etc.) or virtually bankrupt, the specific reserve is provided based on the
amount of claims, after direct deduction described below, net of the amount expected to be
collected through the disposal of collateral or execution of guarantees.
For claims to debtors who are likely to become bankrupt, the specific reserve is provided
based on the amount considered to be necessary by on an overall solvency assessment, on net
amounts expected to be collected through the disposal of collateral or execution of
guarantees.
Among For claims to debtors with more than certain amount of the Bank's claim, who are
likely to become bankrupt or to whom the Bank has Restructured Loans (see following note
9), which their future cash flows from capital collection and interest receipt could be
reasonably estimated, a reserve is provided for the difference between the present value of
expected future cash flows discounted at the contracted interest rate before relaxing to
support and the present book value of the claims.
For claims that are classified to the categories other than above, general reserve is
provided based on the historical loan loss ratio.
The reserve for loans to borrowers in specific foreign countries is provided based on
expected losses due to the political and economic situation of those countries.
All claims are assessed by the responsible branches and credit supervision divisions based
on the internal rules for self-assessment of asset quality. The Risk Management Department,
which is independent from branches and credit supervision divisions, subsequently conducts
their audits of their assessments, and the reserve is adjusted to reflect the audit
results.
And for claims to debtors who are legally bankrupt or virtually bankrupt with collateral or
guarantees, the expected uncollectible amount, net of amounts expected to be collected
through the disposal of collateral or execution of guarantees, are deducted directly out of
the original amount of claims. The deducted amount is 121,573 millions of yen.
For the consolidated subsidiaries, the reserve for possible loan losses is provided based on
the historical loan-loss-ratio for ordinary claims, and based on the amount expected to be
uncollectible for each specific claim respectively.
5. Reserve for Employee Retirement Benefits
Reserve for employee retirement benefits is provided based on the projected benefit
obligation and the fair value of the plan assets at the balance sheets date.
Prior service cost is recognized in expenses using the straight-line method over the average
of the estimated service lives (10 years). Actuarial gains and losses are recognized in
expenses using the straight-line method over the average expected remaining service lives
(10 years).
Unrecognized net transition obligation arising from the initial adoption of a new accounting
standard, amounting to 17,503 millions of yen, is amortized straight-line basis
primarily over five years. For this interim period, one-tenth of such amount is stated as
expense.
6. Hedge Accounting
The Bank manages interest rate risk arising from various assets and liabilities, such as
loans, bills discounted, deposits, etc., by using financial derivative transactions and
applies deferred hedge accounting. For previous periods, the Bank adopted "Macro Hedge
Accounting" as a whole hedge accounting method, in accordance with the temporary treatment
regulated by "Treatment for Accounting and Auditing of Application of Accounting Standard
for Financial Instruments in Banking Industry" (JICPA Industry Auditing Committee Report
No.24, hereafter "Report No. 24"). From this period, the Bank adopts the main rule of
Report No. 24. As for cash-flow-hedge, the effectiveness of the hedge is assessed by
confirming the correlation between the fluctuational factor of interest rate for hedged
items and for hedge transactions. The main rule of Report No.24 requires that some
transactions, which used to be applied "Macro Hedge Accounting", be discontinued the hedge
accounting.
Deferred hedge income (losses) based on "Macro Hedge Accounting", which is included in
"Other Assets" and "Other Liabilities" on the balance sheets, is amortized according to
remaining period for each hedge transaction. Deferred hedge losses and income based on
"Macro Hedge Accounting" are 281,514 millions of yen and 270,754 millions of yen
respectively.
The Bank manages foreign exchange risk arising from various assets and liabilities
denominated in foreign currencies by using financial derivative transactions and applies
deferred hedge accounting. For previous periods, on currency swaps and foreign exchange
swaps entered in for the purpose of funding foreign currencies, the Bank adopted the
temporary treatment regulated by "Treatment for Accounting and Auditing of Application of
Accounting Standard for Foreign Currency Transactions in the Banking Industry" (JICPA
Industry Auditing Committee Report No. 25, hereafter "Report No. 25"). From this period,
the Bank adopts the main rule of Report No. 25 and applies hedge accounting. The Bank
specifies the currency swaps and foreign exchange swaps made to mitigate the foreign
exchange risks arising from monetary claims and debts denominated in foreign currencies as
hedge transactions. The effectiveness of the hedge is assessed by confirming that the
position of those hedge transactions exceed the monetary claims and debts denominated
foreign currency as hedged items.
The Bank also applies fair value hedge to mitigate foreign currency exchange rate exposure
in available-for-sale securities denominated in foreign currencies (other than bonds) as
"Portfolio Hedges" when the hedge foreign currency securities are specified in advance to
the inception of the transactions and spot forward liabilities exist on a foreign currency
basis that exceed acquisition costs of the foreign currency securities designated as hedged
items.
The Bank applies Report No.24 and 25 to internal hedge transactions, such as interest rate
swaps and currency swaps, etc., between consolidated companies or between Banking and
Trading account. The Bank assesses the effectiveness of internal hedge transactions as
strictly as that of external ones without arbitrary choices. Therefore, income and losses
from these transactions are recognized or deferred without netting off.
As for specific assets and liabilities, the Bank also adopts the individual deferred hedge
accounting or the accrual-basis calculation on interest rate swaps.
7. Delinquent Loans
Loans in Bankruptcy Proceedings and Other Delinquent Loans are 11,840 millions of yen and
124,020 millions of yen respectively.
Loans in Bankruptcy Proceedings are non-accrual loans outstanding (not including direct
write-off portion of loans) to borrowers who are legally bankrupt as defined in Article 96
1-3 or 4 of Enforcement Ordinance for the Corporation Tax Law.
Other Delinquent Loans are non-accrual loans other than 1) Loans in Bankruptcy Proceedings
and 2) loans of which interest payments are rescheduled in order to assist the
restructuring of borrowers.
8. Loans More than Three Months Past Due
Loans More than Three Months Past Due are 10,917 millions of yen.
Loans More than Three Months Past Due are those loans for which principal or interest
payments are more than three months past due from the date succeeding the due date and
exclude loans classified as Delinquent Loans.
9. Restructured Loans
Restructured Loans are 168,336 millions of yen.
Restructured Loans are those loans of which terms have been relaxed to support borrowers who
are in financial difficulties and exclude Delinquent Loans and Loans More than Three Months
Past Due.
10. Other Assets
Other Assets on the balance sheets includes the amount of 6,316 million yen of provisional
payment of the withholding tax. The Bank received reassessment notice from tax office
claiming the Bank's responsibility for collecting withholding tax on some of its
repurchase agreement transactions. However, the bank filed a petition with Tax Tribunal
objecting to such tax imposition, and the claim is on the trial.
Consolidated Statements of Operations
(Millions of
Yen)
-----------------------------------------------------------------------------------------------------
Sep-03 Sep-02 Change Mar-03
(unaudited)
-----------------------------------------------------------------------------------------------------
Operating Income:
Trust Fees 31,627 26,618 5,008 71,382
Interest Income: 107,363 142,798 (35,435) 270,666
Interest on Loans and Discounts 61,338 67,426 (6,087) 132,000
Interest and Dividends on Securities 42,904 66,187 (23,283) 122,966
Fees and Commissions 33,203 27,429 5,773 59,445
Trading Revenue 3,008 5,092 (2,083) 8,094
Other Operating Income 60,227 79,732 (19,505) 123,267
Other Income 26,584 17,623 8,960 29,832
-----------------------------------------------------------------------------------------------------
Total Operating Income 262,014 299,295 (37,281) 562,687
-----------------------------------------------------------------------------------------------------
Operating Expenses:
Interest Expenses: 58,668 66,299 (7,631) 119,054
Interest on Deposits 16,129 22,446 (6,316) 41,306
Fees and Commissions 8,239 9,032 (793) 23,353
Trading Expenses - - - 478
Other Operating Expenses 24,031 69,214 (45,183) 118,963
General and Administrative Expenses 66,545 68,094 (1,549) 135,147
Other Expenses 37,897 46,264 (8,367) 231,850
-----------------------------------------------------------------------------------------------------
Total Operating Expenses 195,381 258,906 (63,524) 628,847
-----------------------------------------------------------------------------------------------------
Net Operating Income (Loss) 66,632 40,389 26,243 (66,159)
Extraordinary Income 8,642 1,826 6,816 2,728
Extraordinary Expenses 3,004 31,353 (28,348) 63,061
-----------------------------------------------------------------------------------------------------
Income (Loss) before Income Taxes 72,270 10,862 61,407 (126,493)
Provision for Income Taxes:
Current 532 581 (48) 1,028
Deferred 28,932 3,759 25,173 (57,483)
Minority Interests in Net Income 1,843 1,305 538 2,927
-----------------------------------------------------------------------------------------------------
Net Income (Loss) 40,961 5,216 35,744 (72,967)
-----------------------------------------------------------------------------------------------------
Notes to Consolidated Statements of Operations for first half of Fiscal year 2003
1. Trading profits and losses
Profits and losses on trading transactions are shown as Trading Revenue or Trading Expenses
on a trade date basis.
2.Other Income
Other income includes 19,923 millions yen of gains on sale of shares and other securities.
3.Other Expenses
Other expenses includes 8,552 millions yen of claims write-offs of loans and 8,401 millions
losses on sale of shares and other securities.
4. Extraordinary Income
Extraordinary income includes 5,285 millions yen of tax refund and additional tax refund
according to reconciliation with Tokyo metropolitan government regarding external
standards taxation on banks in Tokyo and 2,749 millions yen of transfer from reserve for
possible loan losses.
5. Extraordinary Expenses
Extraordinary expenses include 1,829 millions yen of the amortizing cost of the net
transition obligation, which arose from the initial adoption of a new accounting standard
for employee retirement benefits (see note 5 for B/S).
Consolidated Statements of Capital Surplus and Retained Earnings
(Millions of Yen)
------------------------------------------------------------------------------------------------------------------------
Sep-03 Sep-02 Change Mar-03
(unaudited)
------------------------------------------------------------------------------------------------------------------------
(Capital Surplus)
Balance at Beginning of Fiscal Year 240,435 237,472 2,962 237,472
Increase - 1,800 (1,800) 2,962
Balance at End of Interim Period (Fiscal Year) 240,435 239,272 1,162 240,435
(Retained Earnings)
Balance at Beginning of Fiscal Year 114,190 195,034 (80,844) 195,034
Increase 42,059 5,216 36,842 116
Decrease 5,135 7,998 (2,863) 80,960
Balance at End of Interim Period (Fiscal Year) 151,114 192,252 (41,138) 114,190
Cash Flows from Financing Activities :
Proceeds from Subordinated Borrowings 10,000 25,500 (15,500) 78,500
Payments of Subordinated Borrowings - (60,000) 60,000 (60,000)
Proceeds from Subordinated Bonds and Convertible Bonds 97,009 21,348 75,660 21,348
Redemption of Subordinated Bonds and Convertible Bonds - (8,000) 8,000 (148,726)
Proceeds from Issuance of Stock to Minority Shareholders - 800 (800) 800
Cash Dividends Paid (5,131) (7,982) 2,850 (7,983)
Cash Dividends Paid to Minority Shareholders (1,305) (1,324) 18 (2,645)
Purchases of Treasury Stock (30) (48) 17 (130)
Proceeds from Sale of Treasury Stock 1 - 1 -
-------------------------------------------------------------------------------------------------------
Net Cash Provided by (Used in) Financing Activities 100,542 (29,706) 130,248 (118,838)
Effect on Exchange Rate Changes on Cash and Cash Equivalents (27) (2,934) 2,907 (2,828)
---------------------------------------------------------------------------------------------------------
Net Change in Cash and Cash Equivalents (284,504) (376,016) 91,512 (182,788)
Cash and Cash Equivalents at Beginning of Year 481,726 664,515 (182,788) 664,515
---------------------------------------------------------------------------------------------------------
Cash and Cash Equivalents at End of (Half) Year 197,221 288,498 (91,276) 481,726
---------------------------------------------------------------------------------------------------------
� The Sumitomo Trust and Banking Co., Ltd.
� 11
Notes to Consolidated Statements of Cash Flows for first half of Fiscal year 2003
1. Definition of Cash and Cash Equivalents
For the purpose of reporting cash flows, Cash and Cash Equivalents is defined as
Cash and Due from Bank of Japan ("BOJ") for the Bank and as Cash and Due from Banks
for the consolidated subsidiaries.
2. Reconciliation of Cash and Cash Equivalents
(Millions of Yen)
Cash and Due from Banks 425,844
Due from Banks (excluding due from BOJ) of the Bank (228,622)
----------------------
Cash and Cash Equivalents 197,221
======================
Segment Information by Location ( Consolidated )
Half Years ended (Millions of Yen)
------------------------------------------------------------------------------------------
September 30, 2003
(unaudited) Japan Americas Europe Asia/Oceania Total Elimination Consolidated
---------------------------------------------------------------------------------------------------------------------
Total Operating Income 220,292 21,673 16,397 8,826 267,189 (5,174) 262,014
------------------------------------------------------------------------------------------------------------------
(1) Unaffiliated
Customers 219,651 18,111 15,637 8,613 262,014 - 262,014
(2) Intersegment 640 3,561 759 212 5,174 (5,174) -
Total Operating
Expenses 162,544 17,220 15,222 5,568 200,556 (5,174) 195,381
------------------------------------------------------------------------------------------------------------------
Net Operating Income 57,748 4,452 1,174 3,257 66,632 - 66,632
------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Half Years ended (Millions of Yen)
------------------------------------------------------------------------------------------
September 30, 2002
Japan Americas Europe Asia/Oceania Total Elimination Consolidated
---------------------------------------------------------------------------------------------------------------------
Total Operating Income 237,199 33,555 28,266 7,803 306,824 (7,528) 299,295
------------------------------------------------------------------------------------------------------------------
(1) Unaffiliated
Customers 235,424 29,497 27,056 7,317 299,295 - 299,295
(2) Intersegment 1,774 4,057 1,210 485 7,528 (7,528) -
Total Operating
Expenses 205,683 27,343 26,431 6,362 265,821 (6,915) 258,906
------------------------------------------------------------------------------------------------------------------
Net Operating Income 31,515 6,211 1,834 1,440 41,003 (613) 40,389
------------------------------------------------------------------------------------------------------------------
The following table summarizes main items of book values of securities with no available fair values.
---------------------------------------
September 30, 2003
-------------------------------------------------------------------------------------------
Book
Millions of Yen Value
------------------------------------------------------------------------------
Available-for-Sale Securities
Unlisted Foreign Securities 94,171
Unlisted Japanese Stocks (excluding stocks sold in public
market) 63,432
Trust Certificates of Loan Trust 11,027
------------------------------------------------------------------------------
2. Money Held in Trust
(a) Money Held in Trust being Held-to-Maturity
There are no corresponding items.
(b) Money Held in Trust for Others
---------------------------------------------------------------------------------
September 30, 2003
------------------------------------------------------------------------------------------------------------------------
Book Unrealized Gain(Loss)
------------------------------------------
Millions of Yen Cost Value Net Gain Loss
------------------------------------------------------------------------------------------------------------------------
Money Held in Trust for Others 0 0 - - -
------------------------------------------------------------------------------------------------------------------------
3. Net Unrealized Gains on Available-for-Sale
Securities
The schedule set forth below shows component items of Net Unrealized Gains on Available-for-Sale Securities, Net of
Tax in the balance sheets.
------------------------------------------------------------------------------------------------------------------------
Millions of Yen September 30, 2003
------------------------------------------------------------------------------------------------------------------------
Net Unrealized Gains 73,810
Available-for-Sale Securities 73,810
(+) Amount Equivalent to Deferred Tax Assets (29,594)
Total (before adjustment for Minority Interest) 44,215
========================================================================================================================
(-) Minority Interests 44
(+) Parent Company's portions in Available-for-Sale Securities owned by its
affiliates 611
Net Unrealized Gains on Available-for-Sale Securities, Net of Tax 44,782
------------------------------------------------------------------------------------------------------------------------
Market Value Information for First Half of Fiscal 2002 ( Consolidated )
1. Securities
The information includes a part of "Commercial Paper and Other Debt Purchased" treated as securities in
"Accounting Standard for Financial Instruments."
(a) Held-to-Maturity Debt Securities with Market
Value
---------------------------------------------------------------------------------
September 30, 2002
------------------------------------------------------------------------------------------------------------------------
Book Market Unrealized Gain(Loss)
------------------------------------------
Millions of Yen Value Value Net Gain Loss
------------------------------------------------------------------------------------------------------------------------
Japanese Government Bonds - - - - -
Japanese Local Government Bonds - - - - -
Japanese Corporate Bonds - - - - -
Foreign Government Bonds and Others 23,691 24,485 794 861 67
-----------------------------------------------------------------------------------------------------------------------
Total 23,691 24,485 794 861 67
-----------------------------------------------------------------------------------------------------------------------
Market Value is based on the closing prices at the end of
interim period.
(b) Available-for-Sale Securities with Market Value
---------------------------------------------------------------------------------
September 30, 2002
------------------------------------------------------------------------------------------------------------------------
Book Unrealized Gain(Loss)
------------------------------------------
Millions of Yen Cost Value Net Gain Loss
------------------------------------------------------------------------------------------------------------------------
Japanese Stocks 840,338 722,175 (118,162) 46,379 164,542
Japanese Bonds 1,064,772 1,072,800 8,028 8,707 679
Government Bonds 720,642 721,845 1,203 1,284 81
Local Government Bonds 76,460 79,367 2,907 2,908 1
Corporate Bonds 267,669 271,587 3,917 4,514 596
Foreign Securities and Others 3,162,764 3,233,984 71,219 85,158 13,938
------------------------------------------------------------------------------------------------------------------------
Total 5,067,875 5,028,959 (38,915) 140,245 179,160
------------------------------------------------------------------------------------------------------------------------
Values in the balance sheets reflect market value calculated by using the average market prices during last one
month of interim period as for Japanese stocks, and by using the market value at the end of interim period as for
the securities other than Japanese stocks.
(c) Investment Securities without
Market Value
The following table summarizes main items of book values of securities with no
available fair values.
---------------------------------------
September 30, 2002
-------------------------------------------------------------------------------------------
Book
Millions of Yen Value
------------------------------------------------------------------------------
Available-for-Sale Securities
Unlisted Foreign Securities 64,497
Unlisted Japanese Stocks (excluding stocks sold in public
market) 57,751
Trust Certificates of Loan Trust 24,844
------------------------------------------------------------------------------
2. Net Unrealized Losses on Available-for-Sale
Securities
The schedule set forth below shows component items of Net Unrealized Losses on Available-for-Sale Securities, Net of
Tax in the balance sheets.
------------------------------------------------------------------------------------------------------------------------
Millions of Yen September 30, 2002
------------------------------------------------------------------------------------------------------------------------
Net Unrealized Losses (39,132)
Available-for-Sale Securities (39,132)
(+) Amount Equivalent to Deferred Tax
Assets 15,151
Total (before adjustment for Minority
Interest) (23,981)
========================================================================================================================
(-) Minority Interests 10
(+) Parent Company's portions in available-for-sale securities owned by its
affiliates 255
Net Unrealized Losses on Available-for-Sale Securities, Net of
Tax (23,735)
------------------------------------------------------------------------------------------------------------------------
Market Value Information for Fiscal 2002 ( Consolidated )
1. Securities
The information includes a part of "Commercial Paper and Other Debt Purchased" treated as securities in
"Accounting Standard for Financial Instruments."
(a) Trading Securities
-----------------------------------------------
March 31, 2003
------------------------------------------------------------------------------------------------------------------------
Book Net Unrealized Gain (Loss)
Millions of Yen Value Reflected on the Statements of
Operations
---------------------------------------------------------------------------------------
Trading Securities 345,866 173
---------------------------------------------------------------------------------------
(b) Held-to-Maturity Debt Securities with Market
Value
--------------------------------------------------------------------------------
March 31, 2003
------------------------------------------------------------------------------------------------------------------------
Book Market Unrealized Gain(Loss)
---------------------------------------------
Millions of Yen Value Value Net Gain Loss
------------------------------------------------------------------------------------------------------------------------
Japanese Government Bonds - - - - -
Japanese Local Government Bonds - - - - -
Japanese Corporate Bonds - - - - -
Foreign Government Bonds and Others 18,022 18,700 678 999 320
-----------------------------------------------------------------------------------------------------------------
Total 18,022 18,700 678 999 320
-----------------------------------------------------------------------------------------------------------------
Market Value is based on the closing prices at the end of the fiscal
period.
(c) Available-for-Sale Securities with Market Value
--------------------------------------------------------------------------------
March 31, 2003
------------------------------------------------------------------------------------------------------------------------
Book Unrealized Gain(Loss)
---------------------------------------------
Millions of Yen Cost Value Net Gain Loss
------------------------------------------------------------------------------------------------------------------------
Japanese Stocks 588,781 525,156 (63,625) 35,432 99,057
Japanese Bonds 1,095,127 1,103,590 8,462 8,560 98
Government Bonds 771,895 773,056 1,161 1,220 59
Local Government Bonds 31,504 32,739 1,234 1,238 4
Corporate Bonds 291,727 297,793 6,066 6,101 34
Foreign Securities and Others 1,583,417 1,619,188 35,770 47,463 11,692
----------------------------------------------------------------------------------------------------
Total 3,267,326 3,247,934 (19,391) 91,456 110,848
------------------------------------------------------------------------------------------------------------------------
Values in the balance sheets reflect market value calculated by using the average market value during last one month
of the fiscal period as for Japanese stocks, and by using the market value at the end of the fiscal period as for
the securities other than Japanese stocks.
(d) Available-for-Sale Securities Sold during the Fiscal Year
-----------------------------------
March 31, 2003
---------------------------------------------------------------------------------------
Amount
Millions of Yen Sold Gain Loss
---------------------------------------------------------------------------
Available-for-Sale Securities 8,906,938 132,072 110,214
---------------------------------------------------------------------------
(e) Investment Securities without Market Value
The following table summarizes main items of book values of securities with no available fair values.
-----------------------------------
March 31, 2003
---------------------------------------------------------------------------------------
Book
Millions of Yen Value
---------------------------------------------------------------------------
Available-for-Sale Securities
Unlisted Foreign Securities 121,750
Unlisted Japanese Stocks (excluding stocks sold in public
market) 55,710
Trust Certificates of Loan Trust 18,071
---------------------------------------------------------------------------
(f) Change of Classification by Holding Purpose of Securities
There are no corresponding items.
(g) Redemption Schedule of Bonds classified as Available-for-Sale Securities with
maturity
and Held-to-Maturity Debt Securities
-----------------------------------------------
March 31, 2003
------------------------------------------------------------------------------------------------------------------------
Book Value
-----------------------------------------------
Millions of Yen 1YR 1YR5YR 5YR10YR 10YR
---------------------------------------------------------------------------------------
Japanese Bonds 333,890 689,336 78,661 1,701
Government Bonds 305,395 467,661 - -
Local Government Bonds - 16,514 16,225 -
Corporate Bonds 28,495 205,161 62,436 1,701
Others 157,272 615,988 737,424 205,440
---------------------------------------------------------------------------------------
Total 491,163 1,305,325 816,085 207,141
---------------------------------------------------------------------------------------
(h) Investments in Subsidiaries and Affiliates with Market Value (Non-consolidated)
There are no corresponding items.
2. Money Held in Trust
(a) Money Held in Trust for Trading
Purpose
There are no corresponding items.
(b) Money Held in Trust being Held-to-Maturity and Others
There are no corresponding items.
3. Net Unrealized Losses on Available-for-Sale
Securities
The schedule set forth below shows component items of Net Unrealized Losses on Available-for-Sale Securities, Net of
Tax in the balance sheets.
------------------------------------------------------------------------------------------------------------------------
Millions of Yen March 31, 2003
------------------------------------------------------------------------------------------------------------------------
Net Unrealized Losses (19,637)
Available-for-Sale Securities (19,637)
(+) Amount Equivalent to Deferred Tax Assets 8,072
Total (before adjustment for Minority Interest) (11,564)
========================================================================================================================
(-) Minority Interests 20
(+) Parent Company's portions in available-for-sale securities owned by its
affiliates 275
Net Unrealized Losses on Available-for-Sale Securities, Net of
Tax (11,309)
------------------------------------------------------------------------------------------------------------------------
Financial Derivatives for First Half of Fiscal 2003 and 2002 ( Consolidated
)
(a) Interest Related Transactions
------------------------------------------------------------------------
September 30, 2003 September 30, 2002
---------------------------------------------------------------------------------------------------------
Contract Market Unrealized Contract Market Unrealized
Millions of Yen Value Value Gain (Loss) Value Value Gain (Loss)
---------------------------------------------------------------------------------------------------------
Listed
Interest Futures
Sold 30,411,280 (62,905) (62,905) 4,817,998 (15,174) (15,174)
Purchased 26,978,046 22,932 22,932 4,800,517 15,417 15,417
Interest Options
Sold 2,711,795 (845) (76) 1,068,807 (687) (344)
Purchased 3,187,584 439 (679) 1,057,700 690 342
Over-the-Counter
Forward Rate Agreements - - - - - -
Interest Rate Swaps
Fix Rcv-Flt Pay 20,085,224 669,479 669,479 10,716,531 296,766 296,766
Flt Rcv-Fix Pay 19,136,881 (595,176) (595,176) 10,162,090 (301,169) (301,169)
Flt Rcv-Flt Pay 3,924,135 (514) (514) 2,187,100 4,998 4,998
Interest Options
Sold 524,289 (2,033) (1,247) 506,866 (1,700) 1,566
Purchased 577,433 6,281 4,523 277,046 3,398 554
Other Interest Related - - - - - -
---------------------------------------------------------------------------------------------------
Total 37,657 36,336 2,539 2,957
---------------------------------------------------------------------------------------------------
Transactions listed above are evaluated on a Mark-to-Market basis and calculated net unrealized gains
(losses) are
reflected on the statements of operations.
Derivative transactions subject to hedge accounting treatments are excluded from the schedule above.
(b) Currency Related Transactions
------------------------------------------------------------------------
September 30, 2003 September 30, 2002
---------------------------------------------------------------------------------------------------------
Contract Market Unrealized Contract Market Unrealized
Millions of Yen Value Value Gain (Loss) Value Value Gain (Loss)
---------------------------------------------------------------------------------------------------------
Listed
Currency Futures - - - - - -
Currency Options - - - - - -
Over-the-Counter
Currency Swaps 50,383 2,852 2,852 48,021 3,117 3,117
Forward
Sold 1,939,552 98,371 98,371 - - -
Purchased 2,243,158 (93,479) (93,479) - - -
Currency Options
Sold 1,902 (3,033) (1,426) - - -
Purchased 1,928 3,240 1,582 - - -
Other Currency Related - - - - - -
---------------------------------------------------------------------------------------------------
Total 7,951 7,900 3,117 3,117
---------------------------------------------------------------------------------------------------
Transactions listed above are evaluated on a Mark-to-Market basis and calculated net unrealized gains
(losses) are
reflected on the statements of operations.
Derivative transactions subject to hedge accounting treatments and such transactions accompanied by
foreign currency monetary
claims or obligations, which are either reflected on the balance sheets at end of interim period, or
eliminated therefrom in the process
of consolidation, are excluded from the schedule above.
Currency swaps subject to the accrual-basis Standard for Foreign Currency Accounting treatment in
accordance with
the temporary treatment regulated by "Treatment for Accounting and Auditing of Application of
Accounting Standard for
Foreign Currency Transactions in the Banking Industry" (JICPA Industry Auditing Committee Report
No.25) at end of the
previous interim period are as shown below.
------------------------------------
September 30, 2002
-------------------------------------------------------------------------
Contract Market Unrealized
Millions of Yen Value Value GainLoss)
-------------------------------------------------------------------------
Currency Swaps 569,907 (1,162) (1,162)
-------------------------------------------------------------
Forward Exchange Contracts and Currency Options whose unrealized gains (losses) are reflected on the
statements of operations
after being evaluated on a Mark-to-Market basis at the fiscal year end for previous period are included
in the schedule above.
Currency swaps subject to hedge accounting treatments in accordance with "Treatment for Accounting and
Auditing of
Application of Accounting Standard for Foreign Currency Transactions in the Banking Industry" (JICPA
Industry Auditing
Committee Report No.25) are excluded from this category.
Contract Value of currency related derivative transactions subject to the Mark-to-Market evaluation at
the end of previous
interim period are as shown below.
------------------------
September 30, 2002
-------------------------------------------------------------
Millions of Yen Contract Value
-------------------------------------------------------------
Listed
Currency Futures -
Currency Options -
Over-the-Counter
Forward
Sold 2,331,072
Purchased 2,651,359
Currency Options
Sold 110,680
Purchased 84,121
Other Currency Related -
-------------------------------------------------
(c) Stock Related Transactions
------------------------------------------------------------------------
September 30, 2003 September 30, 2002
---------------------------------------------------------------------------------------------------------
Contract Market Unrealized Contract Market Unrealized
Millions of Yen Value Value Gain (Loss) Value Value Gain (Loss)
---------------------------------------------------------------------------------------------------------
Listed
Stock Index Futures
Sold 18,864 462 462 11,233 145 145
Purchased 415 (5) (5) 1,674 (2) (2)
Stock Index Options
Sold 2,250 (11) 9 1,450 (16) 3
Purchased 6,497 24 (28) - - -
Over-the-Counter
Stock Options - - - - - -
Stock Index and Other
Swaps - - - - - -
Others - - - - - -
---------------------------------------------------------------------------------------------------
Total 468 437 125 146
---------------------------------------------------------------------------------------------------
Transactions listed above are evaluated on a Mark-to-Market basis and calculated net unrealized gains
(losses) are
reflected on the statements of operations.
Derivative transactions subject to hedge accounting treatments are excluded from the schedule above.
(d) Bond Related Transactions
------------------------------------------------------------------------
September 30, 2003 September 30, 2002
---------------------------------------------------------------------------------------------------------
Contract Market Unrealized Contract Market Unrealized
Millions of Yen Value Value Gain (Loss) Value Value Gain (Loss)
---------------------------------------------------------------------------------------------------------
Listed
Bond Futures
Sold 1,273,442 (27,511) (27,511) 72,816 (941) (941)
Purchased 1,287,697 21,741 21,741 81,840 1,196 1,196
Bond Future Options
Sold 73,316 (579) (100) 605 (2) 0
Purchased 258,607 1,429 451 603 1 (1)
Over-the-Counter
Bond Options
Sold 13,861 (102) 206 - - -
Purchased 13,861 569 239 - - -
Others - - - - - -
---------------------------------------------------------------------------------------------------
Total (4,452) (4,972) 253 253
---------------------------------------------------------------------------------------------------
Transactions listed above are evaluated on a Mark-to-Market basis and calculated net unrealized gains
(losses) are
reflected on the statements of operations.
Derivative transactions subject to hedge accounting treatments are excluded from the schedule above.
(e) Commodity Related Transactions
The Bank did not have any commodity related transactions as of September 30, 2003 and September 30,
2002.
(f) Credit Derivative Transactions
------------------------------------------------------------------------
September 30, 2003 September 30, 2002
---------------------------------------------------------------------------------------------------------
Contract Market Unrealized Contract Market Unrealized
Millions of Yen Value Value Gain (Loss) Value Value Gain (Loss)
---------------------------------------------------------------------------------------------------------
Over-the-Counter
Credit Derivative Transactions
Sold 2,000 3 3 - - -
Purchased 3,000 (18) (18) 62,500 32 (3)
---------------------------------------------------------------------------------------------------
Total (14) (14) 32 (3)
---------------------------------------------------------------------------------------------------
Transactions listed above are evaluated on a Mark-to-Market basis and calculated net unrealized gains
(losses) are
reflected on the statements of operations.
Derivative transactions subject to hedge accounting treatments are excluded from the schedule above.
"Sold" indicates credit risks assumed, and "Purchased" indicates credit risks transferred.
Financial Derivatives for Fiscal 2002 and 2001 ( Consolidated )
(a) Interested Related Transactions
-------------------------------------------------------------------------------------
March 31, 2003 March 31,
2002
--------------------------------------------------------------------------------------------------------------
Contract Market Unrealized Contract Market Unrealized
---------- ----------
Millions of Yen Value Over 1YR Value Gain Value Over 1YR Value Gain
(Loss) (Loss)
--------------------------------------------------------------------------------------------------------------
Listed
Interest Futures
Sold 4,121,446 156,962 (4,905) (4,905) 4,809,187 381,051 (897) (897)
Purchased 4,293,304 171,146 5,471 5,471 4,423,293 348,049 (536) (536)
Interest Options
Sold 963,808 - (143) 7 951,023 - (112) 121
Purchased 842,235 - 159 (7) 959,958 - 115 (133)
Over-the-Counter
Forward Rate Agreements - - - - - - - -
Interest Rate Swaps
Fix Rcv-Flt Pay 11,357,723 9,735,692 315,416 315,416 10,232,630 8,190,257 240,017 240,017
Flt Rcv-Fix Pay 10,834,784 9,348,652 (316,994) (316,994) 9,686,264 7,829,844 (251,565) (251,565)
Flt Rcv-Flt Pay 2,252,100 2,153,600 3,311 3,311 2,136,674 2,066,100 6,636 6,636
Interest Options
Sold 524,120 351,810 (1,438) 1,766 486,026 416,071 (1,843) 1,522
Purchased 289,415 150,680 2,893 384 307,971 284,646 3,566 189
Other Interest Related - - - - - - - -
--------------------------------------------------------------------------------------------------------------
Total 3,770 4,451 (4,618 ) (4,644 )
--------------------------------------------------------------------------------------------------------------
Transactions listed above are evaluated on a Mark-to-Market basis and calculated net unrealized gains
(losses) are
reflected on the statements of
operations.
Derivative transactions subject to hedge accounting treatments are excluded
from the schedule above.
(b) Currency Related Transactions
-------------------------------------------------------------------------------------
March 31, 2003 March 31,
2002
--------------------------------------------------------------------------------------------------------------
Contract Market Unrealized Contract Market Unrealized
---------- ----------
Millions of Yen Value Over 1YR Value Gain Value Over 1YR Value Gain
(Loss) (Loss)
--------------------------------------------------------------------------------------------------------------
Over-the-Counter
Currency Swaps 46,655 44,058 3,276 3,276 52,182 48,862 3,612 3,612
Forward - - - - - - - -
Currency Options - - - - - - - -
Other Currency Related - - - - - - - -
--------------------------------------------------------------------------------------------------------------
Transactions listed above are evaluated on a Mark-to-Market basis and calculated net unrealized gains
(losses) are
reflected on the statements of
operations.
Derivative transactions subject to hedge accounting treatments are excluded
from the schedule above.
Note)
For previous period, in accordance with Temporary Treatment for Accounting and Auditing of Application of
Accounting Standard
for Foreign Currency Transactions in the Banking Industry (JICPA Industry Auditing Committee Report No.20),
for this period,
in accordance with the temporary treatment regulated by Treatment for Accounting and Auditing of
Application of Accounting Standard
for Foreign Currency Transactions in the Banking Industry (JICPA Industry Auditing Committee Report No.25),
currency swaps
subject to the accrual-basis Standard for Foreign Currency Accounting treatment are
excluded from this category.
Currency swaps subject to accrual-basis calculation are
as shown below.
------------------------------------------------------------------
March 31, 2003 March 31, 2002
--------------------------------------------------------------------------------------------------
Contract Market Unrealized Contract Market Unrealized
Millions of Yen Value Value Gain(Loss) Value Value Gain
(Loss)
-----------------------------------------------------------------------------------------
Currency Swaps 589,146 (875) (875) 538,119 (1,195) (1,195)
-----------------------------------------------------------------------------------------
Forward Exchange Contracts and Currency Options whose unrealized gains (losses) are reflected on the
statements of operations
after being evaluated on a Mark-to-Market basis at the fiscal year end, and such transactions
accompanied by foreign currency
monetary claims or obligations, which are either reflected on the balance
sheets at the fiscal year end,
or eliminated therefrom in the process of consolidation, are
excluded from this category.
Contract Value of currency related derivative transactions subject to the Mark-to-Market
evaluation is as shown below.
------------------------------------------------------------------
March 31, 2003 March 31, 2002
--------------------------------------------------------------------------------------------------
Millions of Yen Contract Value Contract Value
--------------------------------------------------------------------------------------------------
Listed
Currency Futures - -
Currency Options - -
Over-the-Counter
Forward
Sold 2,527,166 3,455,681
Purchased 2,477,226 3,423,121
Currency Options
Sold 3,766 151,605
Purchased 3,575 98,078
Other Currency
Related - -
-----------------------------------------------------------------------------------------
(c) Stock Related
Transactions
-------------------------------------------------------------------------------------
March 31, 2003 March 31,
2002
--------------------------------------------------------------------------------------------------------------
Contract Market Unrealized Contract Market Unrealized
---------- ----------
Millions of Yen Value Over 1YR Value Gain Value Over 1YR Value Gain
(Loss) (Loss)
--------------------------------------------------------------------------------------------------------------
Listed
Stock Index Futures
Sold 8,713 - (8) (8) 31,080 - - -
Purchased 649 - (18) (18) - - - -
Stock Index Options
Sold 5,180 - (84) 63 2,450 - (21) 19
Purchased - - - - - - - -
Over-the-Counter
Stock Options - - - - - - - -
Stock Index and Other
Swaps - - - - - - - -
Others - - - - - - - -
--------------------------------------------------------------------------------------------------------------
Total (111) 36 (21) 19
--------------------------------------------------------------------------------------------------------------
Transactions listed above are evaluated on a Mark-to-Market basis and calculated net unrealized gains
(losses) are
reflected on the statements of
operations.
Derivative transactions subject to hedge accounting treatments are excluded
from the schedule above.
(d) Bond Related
Transactions
-------------------------------------------------------------------------------------
March 31, 2003 March 31,
2002
--------------------------------------------------------------------------------------------------------------
Contract Market Unrealized Contract Market Unrealized
---------- ----------
Millions of Yen Value Over 1YR Value Gain Value Over 1YR Value Gain
(Loss) (Loss)
--------------------------------------------------------------------------------------------------------------
Listed
Bond Futures
Sold 278,195 - (988) (988) 199,253 - (47) (47)
Purchased 257,253 - 702 702 184,182 - (270) (270)
Bond Future Options
Sold 360 - (0) 1 - - - -
Purchased 480 - 2 (0) - - - -
Over-the-Counter
Bond Options - - - - - - - -
Others - - - - - - - -
--------------------------------------------------------------------------------------------------------------
Total (285) (285) (317) (317)
--------------------------------------------------------------------------------------------------------------
Transactions listed above are evaluated on a Mark-to-Market basis and calculated net unrealized gains
(losses) are
reflected on the statements of
operations.
Derivative transactions subject to hedge accounting treatments are excluded
from the schedule above.
(e) Commodity Related Transactions
The Bank did not have any commodity related transactions as of March 31, 2003
and March 31, 2002.
(f) Credit Derivative
Transactions
-------------------------------------------------------------------------------------
March 31, 2003 March 31,
2002
--------------------------------------------------------------------------------------------------------------
Contract Market Unrealized Contract Market Unrealized
---------- ----------
Millions of Yen Value Over 1YR Value Gain Value Over 1YR Value Gain
(Loss) (Loss)
--------------------------------------------------------------------------------------------------------------
Over-the-Counter
Credit Derivative Transactions
Sold - - - - - - - -
Purchased 229,852 1,000 137 (179) - - - -
--------------------------------------------------------------------------------------------------------------
Total 137 (179) - -
--------------------------------------------------------------------------------------------------------------
Transactions listed above are evaluated on a Mark-to-Market basis and calculated net unrealized gains
(losses) are
reflected on the statements of
operations.
Derivative transactions subject to hedge accounting treatments are excluded
from the schedule above.
"Sold" indicates credit risks assumed, and "Purchased" indicates
credit risks transferred.
Non-Consolidated
Balance Sheets
(Millions of Yen)
--------------------------------------------------------------------------
Sep-03 Sep-02 Change Mar-03
(unaudited)
--------------------------------------------------------------
Assets:
Cash and Due from
Banks 422,372 727,329 (304,956) 670,518
Call Loans 30,000 136,009 (106,009) 30,000
Bills Bought - 200,000 (200,000) -
Commercial Paper
and Other Debt
Purchased 93,583 61,424 32,159 95,869
Trading Assets 247,008 517,808 (270,799) 679,926
Money Held in
Trust 0 95,068 (95,068) -
Investment
Securities 3,744,658 5,192,052 (1,447,393) 3,468,066
Loans and Bills
Discounted 9,018,876 9,005,920 12,956 9,168,024
Foreign Exchanges 9,596 12,314 (2,718) 13,534
Other Assets 948,014 995,717 (47,702) 1,075,893
Premises and
Equipment 99,773 107,714 (7,940) 105,000
Deferred Tax
Assets 200,786 212,313 (11,526) 266,881
Customers'
Liabilities for
Acceptances and
Guarantees 457,877 490,643 (32,765) 432,641
Reserve for
Possible Loan
Losses (111,281) (161,438) 50,156 (136,094)
Reserve for Losses
on Investment
Securities (690) (581) (109) (719)
--------------------------------------------------------------
Total Assets 15,160,576 17,592,295 (2,431,719)15,869,541
--------------------------------------------------------------
Liabilities:
Deposits 8,555,154 8,434,581 120,572 8,689,399
Negotiable
Certificates of
Deposit 1,251,706 2,073,568 (821,862) 1,558,646
Call Money 103,400 110,972 (7,572) 60,000
----------------------------------------------
Payables under NET
Repurchase
Agreements 818,273 1,028,870 (210,597) 928,932 9/30/2003 9/30/2002
----------------------------------------------
Collateral for Collateral
Lending for LS
Securities 502,636 1,450,828 (948,192) 386,870 386,870,419,950 876,757,691,950 (489,887,272,000)
Bills Sold 87,100 155,400 (68,300) 208,700
Trading
Liabilities 47,408 309,316 (261,908) 330,403
Borrowed Money 444,377 397,572 46,805 424,279
Foreign Exchanges 13,041 17,477 (4,436) 45,333
Corporate Bonds 192,700 206,600 (13,900) 106,600
Convertible Bonds 75 2,400 (2,325) 75
Borrowed Money
from Trust
Accounts 1,358,198 1,522,463 (164,264) 1,477,346
Other Liabilities 594,888 683,944 (89,056) 576,154
Reserve for
Employee Bonuses 2,940 2,966 (25) 3,141
Reserve for
Employee
Retirement
Benefits 226 1,458 (1,231) 315
Deferred Tax
Liabilities on
Revaluation
Reserve for Land 1,453 2,183 (730) 2,199
Acceptances and
Guarantees 457,877 490,643 (32,765) 432,641
--------------------------------------------------------------
Total Liabilities 14,431,459 16,891,249 (2,459,790)15,231,038
--------------------------------------------------------------
Stockholders'
Equity:
Capital Stock 287,015 285,853 1,162 287,015
Capital Surplus 240,435 239,272 1,162 240,435
Additional Paid-
in Capital 240,435 239,272 1,162 240,435
Retained Earnings 160,323 200,575 (40,252) 123,970
Legal Retained
Earnings 45,603 44,503 1,100 44,503
Voluntary
Reserves 68,872 129,873 (61,000) 129,873
----------------------------------------------
Unappropriated NET
Profit
(Undisposed
Loss) at End of
the Period 45,846 26,198 19,648 (50,406) 9/30/2003 9/30/2002
----------------------------------------------
Net Net Income
Income(Loss) 40,389 20,160 20,228 (56,565) 40,389,340,141 20,160,837,939 20,228,502,202
Revaluation
Reserve for
Land, Net of Tax 2,138 3,450 (1,312) 3,236
Net Unrealized
Gains(Losses) on
Available-for-
Sale Securities,
Net of Tax 43,598 (23,820) 67,418 (11,790)
Treasury Stock (4,393) (4,284) (108) (4,363)
--------------------------------------------------------------
Total
Stockholders'
Equity 729,117 701,046 28,070 638,503
--------------------------------------------------------------
Total Liabilities
and Stockholders'
Equity 15,160,576 17,592,295 (2,431,719)15,869,541
--------------------------------------------------------------
Non-Consolidated Statements
of Operations and Retained
Earnings
(Millions of Yen)
--------------------------------------------------------------------------
Sep-03 Sep-02 Change Mar-03
(unaudited)
--------------------------------------------------------------
Operating Income:
Trust Fees 31,627 26,618 5,008 71,382
Interest Income: 106,582 141,965 (35,383) 273,533
Interest on
Loans and
Discounts 61,381 67,019 (5,638) 131,639
Interest and
Dividends on
Securities 42,460 65,976 (23,515) 126,856
Fees and
Commissions 25,827 20,776 5,050 45,748
Trading Revenue 3,008 5,092 (2,083) 8,094
Other Operating
Income 60,359 79,783 (19,423) 123,259
Other Income 24,929 15,286 9,642 24,746
--------------------------------------------------------------
Total
Operating
Income 252,334 289,523 (37,189) 546,764
--------------------------------------------------------------
Operating
Expenses:
Interest
Expenses: 59,384 67,232 (7,848) 120,718
Interest on
Deposits 15,796 22,243 (6,447) 40,721
Fees and
Commissions 13,319 9,550 3,769 27,309
Trading Expenses - - - 478
Other Operating
Expenses 24,026 68,849 (44,822) 118,901
General and
Administrative
Expenses 56,887 60,536 (3,648) 119,010
Other Expenses 36,329 45,067 (8,738) 228,736
--------------------------------------------------------------
Total
Operating
Expenses 189,947 251,236 (61,288) 615,155
--------------------------------------------------------------
Net Operating
Income (Loss) 62,387 38,287 24,099 (68,390)
Extraordinary
Income 8,728 26,643 (17,914) 26,614
-------------------------------------------------
Extraordinary NET
Expenses 2,973 31,314 (28,340) 62,990 9/30/2003 9/30/2002
-------------------------------------------------------------- ----------------------------------------------
Income (Loss) Income
before Income before
Taxes Income
68,142 33,616 34,526 (104,766) taxes 68,142,703,271 33,616,535,883 34,526,167,388
Provision for
Income Taxes:
Current 44 51 (7) 103
----------------------------------------------
Deferred 27,708 13,403 14,305 (48,305) 9/30/2003 9/30/2002 NET
-------------------------------------------------------------- ----------------------------------------------
Net Income (Loss) 40,389 20,160 20,228 (56,565) Net Income 40,389,340,141 20,160,837,939 20,228,502,202
--------------------------------------------------------------
Retained Earnings
Brought Forward
from Previous
Year 4,359 6,042 (1,683) 6,042
Transfer from
Revaluation
Reserve for Land,
Net of Tax 1,098 (5) 1,103 116
Deferential Loss
on Disposal of
Treasury Stock 0 - 0 -
--------------------------------------------------------------
Unappropriated
Profit
(Undisposed Loss)
at End of (Half)
Year 45,846 26,198 19,648 (50,406)
--------------------------------------------------------------
Statements of Trust Account
(Millions
of Yen)
------------------------------------------------------------------------------------------------------------------------
Sep-03 Sep-02 Change Mar-03
(unaudited)
------------------------------------------------------------------------------------------------------------------------
Assets:
Loans and Bills Discounted 1,499,722 1,874,215 (374,493) 1,761,904
Investment Securities 5,363,196 3,878,888 1,484,308 4,476,065
Money Held in Trust 37,971,904 39,733,028 (1,761,124)39,465,647
Securities Held in Custody Accounts 880 1,843 (962) 1,188
Securities Lent - 4,800 (4,800) -
Money Claims 3,162,319 2,706,162 456,157 3,223,012
Premises and Equipment 2,047,854 1,759,439 288,414 1,968,312
Other Claims 66,426 108,428 (42,002) 72,290
Loans to Banking Account 1,358,198 1,522,463 (164,264) 1,477,346
Cash and Due from Banks 161,058 156,806 4,252 170,363
------------------------------------------------------------------------------------------------------------------------
Total Assets 51,631,561 51,746,076 (114,514)52,616,131
------------------------------------------------------------------------------------------------------------------------
Liabilities:
Money Trusts 18,943,918 18,762,344 181,573 20,108,266
Pension Trusts 5,187,752 5,586,923 (399,170) 5,477,868
Property Formation Benefit Trusts 11,137 11,684 (547) 11,515
Loan Trusts 1,617,789 2,348,740 (730,951) 1,963,838
Securities Investment Trusts 6,784,070 7,505,967 (721,896) 6,804,661
Money Entrusted, other than Money Trusts 3,231,977 2,996,449 235,527 3,215,853
Securities Trusts 9,107,795 8,757,819 349,975 8,430,286
Money Claim Trusts 2,836,827 2,324,121 512,705 2,868,189
Equipment Trusts 4,590 6,487 (1,897) 5,925
Land and Fixtures Trusts 186,987 196,263 (9,275) 190,265
Other Trusts 3,718,716 3,249,274 469,441 3,539,459
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Total Liabilities 51,631,561 51,746,076 (114,514)52,616,131
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Major Account Balances
(sum of Banking account and Trust account)
(Millions
of Yen)
------------------------------------------------------------------------------------------------------------------------
Sep-03 Sep-02 Change Mar-03
(unaudited)
------------------------------------------------------------------------------------------------------------------------
Total Employable Funds 35,567,458 37,217,843 (1,650,385)37,809,535
Deposits 8,555,154 8,434,581 120,572 8,689,399
Negotiable Certificates of Deposit 1,251,706 2,073,568 (821,862) 1,558,646
Money Trusts 18,943,918 18,762,344 181,573 20,108,266
Pension Trusts 5,187,752 5,586,923 (399,170) 5,477,868
Property Formation Benefit Trusts 11,137 11,684 (547) 11,515
Loan Trusts 1,617,789 2,348,740 (730,951) 1,963,838
------------------------------------------------------------------------------------------------------------------------
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Loans and Bills Discounted 10,518,598 10,880,136 (361,537)10,929,929
Banking
Account 9,018,876 9,005,920 12,956 9,168,024
Trust
Account 1,499,722 1,874,215 (374,493) 1,761,904
Investment Securities 9,107,855 9,070,940 36,915 7,944,132
Banking
Account 3,744,658 5,192,052 (1,447,393) 3,468,066
Trust
Account 5,363,196 3,878,888 1,484,308 4,476,065