UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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, 2002
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MITSUBISHI TOKYO FINANCIAL GROUP, INC.
(Translation of registrant's name into English)
4-1, Marunouchi 2-chome, Chiyoda-ku
Tokyo 100-6326, Japan
(Address of principal executive offices)
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[Indicate by check mark whether the registrant files or
will file annual reports under cover Form 20-F or Form 40-F.]
Form 20-F __X__ Form 40-F _____
[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.]
Yes _____ No __X__
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: November 25, 2002
MITSUBISHI TOKYO FINANCIAL GROUP, INC.
By: /s/ Atsushi Inamura
--------------------------------------
Name: Atsushi Inamura
Title: Chief Manager,General Affairs
Corporate Administration Division
Interim Consolidated Summary Report
(under Japanese GAAP)
for the Fiscal Year Ending March 31, 2003
Date: November 25, 2002
Company name (code number): Mitsubishi Tokyo Financial Group, Inc. (8306)
Stock Exchange Listings: Tokyo, Osaka, New York, London
Headquarters: Tokyo
Representative: Shigemitsu Miki, President & CEO
For inquiry: Keiichi Riko, Chief Manager - Financial Policy Division
(Phone) +81-3-3240-8139
Date of resolution of Board of Directors with respect
to the interim consolidated financial statements: November 25, 2002
Trading accounts: Established
Consolidated financial data for the six months ended September 30, 2002
(1) Operating results
(in millions of yen except per share data and percentages)
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For the six months ended September 30, For the year ended
--------------------------------------
2002 2001 March 31,2002
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Ordinary income 1,425,412 1,689,040 3,262,347
change from corresponding period of the previous year (15.6)% -
-----------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) (193,300) (290,070) (289,345)
change from corresponding period of the previous year - -
-----------------------------------------------------------------------------------------------------------------------
Net income (loss) (188,098) (96,834) (152,316)
change from corresponding period of the previous year - -
-----------------------------------------------------------------------------------------------------------------------
Net income (loss) per common share (34,461.56) (17,469.28) (28,921.99)
-----------------------------------------------------------------------------------------------------------------------
Net income per common and common equivalent share - - -
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Notes:
1. Equity in earnings (loss) of affiliates:
For the six months ended September 30, 2002: (6,340) million
For the six months ended September 31, 2001: (3,167) million
For the year ended March 31, 2002: (10,612) million
2. Average number of shares outstanding:
For the six months ended September 30, 2002: (common stock) 5,579,156 shares
(preferred stock-class 1) 81,020 shares
(preferred stock-class 2) 100,000 shares
For the six months ended September 30, 2001: (common stock) 5,543,116 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
For the year ended March 31, 2002: (common stock) 5,554,666 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
3. Changes in accounting policy: No
-1-
(2) Balance sheet highlights
(in millions of yen except per share data and percentages)
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As of September 30, As of March 31,
----------------------------------
2002 2001 2002
--------------------------------------------------------------------------------------------------------------------------
Total assets 97,119,655 97,746,635 99,496,829
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Shareholders' equity 2,934,909 3,219,394 3,324,445
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Shareholders' equity as a percentage of total liabilities,
minority interest and shareholders' equity 3.0% 3.3% 3.3%
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Shareholders' equity per common share 445,269.63 500,403.32 516,832.48
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Risk-adjusted capital ratio (based on the standards of (preliminary
the Bank for International Settlements, the "BIS") basis) 10.49% 10.31% 10.30%
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Note: Number of shares outstanding as of:
September 30, 2002: (common stock) 5,584,349 shares
(preferred stock-class 1) 81,020 shares
(preferred stock-class 2) 100,000 shares
September 30, 2001: (common stock) 5,545,915 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
March 31, 2002: (common stock) 5,572,880 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
(3) Cash flows
(in millions of yen)
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For the six months ended September 30, For the year ended
------------------------------------------
2002 2001 March 31, 2002
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Net cash provided by (used in) operating activities 1,245,897 (3,113,796) (36,150)
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Net cash provided by (used in) investing activities (709,513) 2,976,841 125,290
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Net cash provided by (used in) financing activities (95,146) (11,920) (154,273)
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Cash and cash equivalents at end of period 2,145,354 1,629,451 1,741,798
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(4) Number of consolidated subsidiaries and affiliated companies accounted for
by the equity method as of September 30, 2002
Consolidated subsidiaries: 192 Affiliated companies accounted for
by the equity method: 33
(5) Changes in the number of consolidated subsidiaries and affiliated companies
accounted for by the equity method for the six months ended September 30,
2002
Consolidated subsidiaries: Included: 11 Excluded: 5
Affiliated companies accounted for by
the equity method: Included: 1 Excluded: 5
2. Earning projections for the fiscal year ending March 31, 2003
(in millions of yen except per share data)
--------------------------------------------------------------------------------
Ordinary income Ordinary profit (loss) Net income
--------------------------------------------------------------------------------
2,900,000 (165,000) (185,000)
--------------------------------------------------------------------------------
Projected net income per common share: (34,620.95)
-2-
(Reference)
Formulas for computing ratios for the six months ended September 30, 2002 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 *
Since the current interim fiscal year, MTFG has adopted Financial Accounting
Standard No. 2 "Accounting Standard for Earning per Share" issued by the
Accounting Standards Board of Japan (the "ASBJ") on September 25, 2002 and
Financial Accounting Standards Implementation Guidance No. 4 "Accounting
Standard for Earning per Share" issued by the ASBJ on September 25, 2002.
Formula for computing projected earning ratio for the fiscal year ending March
31, 2003 is as follows.
Projected net income per common share
Projected net income - Projected total dividends on preferred stock
------------------------------------------------------------------------
Number of common stock at end of period *
* excluding treasury stock
** number of preferred stock at end of period x issue price + total
dividends on preferred stock
----------------------------------------------------------------------------
The foregoing forward-looking statements may be materially affected by
regulatory developments or changes in governmental policies, laws,
regulations, voluntary code of practice and interpretations, including
those anticipated to be announced soon in Japan, changes in the level of
Japanese stock prices, the occurrence of material new corporate
bankruptcies, further developments in the Japanese or world economic
environment, and other factors outside MTFG's control. These forward-
looking statements are not guaranties of future performance, and actual
results may differ materially. Please see our latest annual report for
additional information regarding the risks in our business.
----------------------------------------------------------------------------
-3-
(Japanese GAAP)
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Balance Sheets
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As of September 30, Increase/ As of March 31, Increase/
2002(A) 2001(B) (Decrease) 2002(C) (Decrease)
(in millions of yen) (A) - (B) (A) - (C)
------------------------------------------------------------------------------------------------------------------------------------
Assets:
Cash and due from banks 6,311,583 7,447,093 (1,135,509) 6,421,747 (110,164)
Call loans and bills bought 600,125 1,035,946 (435,820) 1,304,328 (704,203)
Receivables under resale agreements 977,461 2,362,136 (1,384,674) 1,047,717 (70,256)
Receivables under securities borrowing transactions 2,731,518 - 2,731,518 - 2,731,518
Commercial paper and other debt purchased 530,599 376,759 153,840 460,912 69,686
Trading assets 5,473,291 6,967,442 (1,494,150) 5,340,726 132,564
Money held in trust 337,989 317,832 20,156 304,060 33,928
Investment securities 23,118,954 19,806,783 3,312,170 23,109,720 9,234
Allowance for losses on investment securities (4,125) (61) (4,064) (1,500) (2,625)
Loans and bills discounted 46,961,813 46,853,324 108,488 49,062,795 (2,100,982)
Foreign exchanges 615,782 750,983 (135,200) 560,783 54,999
Other assets 3,439,202 5,507,751 (2,068,548) 5,651,987 (2,212,784)
Premises and equipment 1,014,900 1,062,475 (47,574) 981,982 32,917
Deferred debenture discounts and other costs 30 535 (504) 158 (128)
Deferred tax assets 1,120,699 1,131,155 (10,456) 1,032,107 88,591
Deferred tax assets on land revaluation excess 4,984 - 4,984 4,985 (1)
Customers' liabilities for acceptances and guarantees 5,383,121 5,782,347 (399,225) 5,873,954 (490,833)
Allowance for loan losses (1,498,277) (1,655,869) 157,592 (1,659,640) 161,363
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Total assets 97,119,655 97,746,635 (626,980) 99,496,829 (2,377,173)
------------------------------------------------------------------------------------------------------------------------------------
Liabilities:
Deposits 60,110,143 55,662,800 4,447,342 59,907,378 202,765
Negotiable certificates of deposit 3,062,225 2,905,629 156,596 3,200,325 (138,099)
Debentures 1,198,024 3,000,699 (1,802,674) 2,275,570 (1,077,545)
Call money and bills sold 3,335,976 3,009,137 326,839 3,977,859 (641,882)
Payables under repurchase agreements 3,135,593 2,991,583 144,010 3,518,977 (383,383)
Payables under securities lending transactions 3,519,242 - 3,519,242 - 3,519,242
Commercial paper 908,040 631,718 276,321 799,367 108,672
Trading liabilities 1,957,506 4,069,226 (2,111,720) 667,926 1,289,580
Borrowed money 1,675,564 1,674,180 1,384 1,844,566 (169,001)
Foreign exchanges 648,370 590,591 57,779 513,899 134,471
Bonds and notes 3,420,718 3,251,563 169,155 3,402,004 18,714
Convertible bonds - 243,924 (243,924) 243,924 (243,924)
Bonds with warrants 295,651 - 295,651 - 295,651
Due to trust account 1,635,468 3,057,218 (1,421,749) 2,282,224 (646,756)
Other liabilities 3,327,976 7,229,494 (3,901,518) 7,241,446 (3,913,469)
Reserve for employees' bonuses 16,888 16,002 885 14,304 2,584
Reserve for employees' retirement benefits 40,996 24,842 16,153 27,023 13,973
Reserve for losses on real estate-collateralized loans sold 2,039 30,229 (28,190) 7,575 (5,536)
Reserves under special laws 540 379 161 436 104
Deferred tax liabilities 54,190 40,246 13,944 47,055 7,134
Deferred tax liabilities on land revaluation excess 126,561 129,473 (2,911) 128,439 (1,878)
Acceptances and guarantees 5,383,121 5,782,347 (399,225) 5,873,954 (490,833)
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 93,854,844 94,341,289 (486,445) 95,974,260 (2,119,416)
------------------------------------------------------------------------------------------------------------------------------------
Minority interest 329,902 185,951 143,950 198,122 131,779
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Shareholders' equity:
Capital stock 1,146,500 1,146,500 - 1,146,500 -
Capital surplus 835,048 834,644 403 834,644 403
Retained earnings 944,245 1,243,202 (298,956) 1,189,718 (245,472)
Land revaluation excess 198,590 211,425 (12,835) 201,654 (3,064)
Unrealized gains (losses) on securities available for sale (9,521) (24,179) 14,658 84,016 (93,538)
Foreign currency translation adjustments (81,228) (68,385) (12,842) (26,699) (54,529)
Less treasury stock (98,724) (123,812) 25,088 (105,389) 6,665
------------------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 2,934,909 3,219,394 (284,485) 3,324,445 (389,536)
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities, minority interests and shareholders'
equity 97,119,655 97,746,635 (626,980) 99,496,829 (2,377,173)
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See Notes to Consolidated Financial Statements.
-4-
(Japanese GAAP)
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statements of Operations
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For the six months ended Increase/ For the year ended
September 30, (Decrease) March 31, 2002
(in millions of yen) 2002(A) 2001(B) (A) - (B)
------------------------------------------------------------------------------------------------------------------------------------
Ordinary income:
Interest income:
Interest on loans and discounts 519,318 657,200 (137,882) 1,258,319
Interest and dividends on securities 177,292 214,391 (37,099) 422,043
Other interest income 186,518 292,412 (105,893) 544,617
---------------------------------------------------------------------------------------------------------------------------------
Total interest income 883,129 1,164,004 (280,874) 2,224,981
Trust fees 47,957 56,438 (8,481) 122,779
Fees and commissions 201,837 195,194 6,643 401,483
Trading profits 54,283 35,667 18,615 58,402
Other business income 133,006 120,145 12,860 206,315
Other ordinary income 105,197 117,588 (12,391) 248,384
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Total ordinary income 1,425,412 1,689,040 (263,627) 3,262,347
------------------------------------------------------------------------------------------------------------------------------------
Ordinary expenses:
Interest expense:
Interest on deposits 119,535 275,529 (155,994) 471,203
Interest on debentures and amortization of debenture discounts 5,654 11,868 (6,213) 20,573
Other interest expense 236,621 332,344 (95,723) 628,073
---------------------------------------------------------------------------------------------------------------------------------
Total interest expense 361,811 619,741 (257,930) 1,119,850
Fees and commissions 33,621 29,783 3,838 63,085
Trading losses 10,549 13,164 (2,614) 3,813
Other business expenses 69,084 53,750 15,333 118,470
General and administrative expenses 511,825 500,553 11,271 1,009,848
Other ordinary expenses 631,820 762,115 (130,295) 1,236,624
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Total ordinary expenses 1,618,712 1,979,110 (360,397) 3,551,693
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Ordinary loss (193,300) (290,070) 96,769 (289,345)
------------------------------------------------------------------------------------------------------------------------------------
Special gains 27,271 26,222 1,048 67,300
Special losses 14,405 12,089 2,316 75,039
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Loss before income taxes and others (180,434) (275,936) 95,501 (297,084)
------------------------------------------------------------------------------------------------------------------------------------
Income taxes-current 31,920 51,562 (19,642) 34,818
Income taxes-deferred (27,033) (239,423) 212,390 (198,311)
Minority interest 2,777 8,759 (5,981) 18,725
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Net loss (188,098) (96,834) (91,264) (152,316)
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See Notes to Consolidated Financial Statements.
-5-
(Japanese GAAP)
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Capital Surplus and Retained Earnings
---------------------------------------------------------------------------------------------------------
For the six months ended
(in millions of yen) September 30, 2002
---------------------------------------------------------------------------------------------------------
Balance of capital surplus at beginning of period 834,644
Increase: 403
Gains on sales of treasury stock, net of taxes 403
---------------------------------------------------------------------------------------------------------
Balance of capital surplus at end of period 835,048
---------------------------------------------------------------------------------------------------------
Balance of retained earnings at beginning of period 1,189,718
Increase: 6,141
Reduction in land revaluation excess 3,064
Change in ownership percentage to a consolidated subsidiary 2,738
due to stock repurchase by the subsidiary
Decrease in companies accounted for by the equity method 338
Decrease: (251,614)
Net loss (188,098)
Cash dividends (41,776)
Bonuses to directors of consolidated subsidiaries (3)
Change in ownership percentage to consolidated subsidiaries and (17,725)
a company accounted for by the equity method due to their merger
Increase in consolidated subsidiaries and companies accounted for (4,011)
by the equity method
---------------------------------------------------------------------------------------------------------
Balance of retained earnings at end of period 944,245
---------------------------------------------------------------------------------------------------------
See Notes to Consolidated Financial Statements.
Consolidated Statements of Retained Earnings
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For the six months ended For the year ended
(in millions of yen) September 30, 2001 March 31, 2002
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Balance of retained earnings at beginning of period 1,367,927 1,367,927
Increase: 1,521 3,520
Reduction in land revaluation excess 1,135 3,134
Increase in companies accounted for by the equity method 385 385
Decrease: (29,412) (29,412)
Cash dividends (28,268) (28,268)
Bonuses to directors of consolidated subsidiaries (12) (12)
Change in ownership percentage to consolidated subsidiaries and (1,131) (1,131)
companies
accounted for by the equity method due to business combination
Net loss (96,834) (152,316)
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Balance of retained earnings at end of period 1,243,202 1,189,718
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See Notes to Consolidated Financial Statements.
-6-
(Japanese GAAP)
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statements of Cash Flows
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For the six months ended Increase/ For the year ended
September 30, (Decrease) March 31, 2002
(in millions of yen) 2002(A) 2001(B) (A) - (B)
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Cash flows from operating activities:
Loss before income taxes and others (180,434) (275,936) 95,501 (297,084)
Depreciation 39,596 29,303 10,292 60,633
Goodwill amortization (693) 27,569 (28,262) 29,297
Equity in loss (earnings) of affiliated companies 6,340 3,167 3,172 10,612
Increase (decrease) in allowance for loan losses (153,931) 71,395 (225,326) 68,758
Increase (decrease) in allowance for losses on investment securities 2,625 (11) 2,637 1,427
Increase (decrease) in reserve for losses on real (5,536) (6,826) 1,290 (29,480)
estate-collateralized loans sold
Increase (decrease) in reserve for employees' bonuses 566 15,915 (15,349) 14,262
Increase (decrease) in reserve for employees' retirement benefits 4,280 (116,291) 120,571 (114,449)
Interest income recognized on statement of operations (883,129) (1,164,004) 280,874 (2,224,981)
Interest expenses recognized on statement of operations 361,811 619,741 (257,930) 1,119,850
Investment securities losses (gains) 210,579 280,731 (70,151) 202,823
Losses (gains) on money held in trust 8,552 3,447 5,105 4,823
Foreign exchange losses (gains) 148,678 18,963 129,715 (309,805)
Losses (gains) on sales of premises and equipment 11,507 3,263 8,243 12,339
Net decrease (increase) in trading assets 200,750 (916,553) 1,117,303 792,187
Net increase (decrease ) in trading liabilities 1,265,030 912,314 352,716 (2,581,880)
Adjustment of unsettled trading accounts (610,143) (359,929) (250,213) (291,024)
Net decrease (increase) in loans and bills discounted 1,639,205 1,379,613 259,592 (491,866)
Net increase (decrease) in deposits 592,884 (517,496) 1,110,381 3,476,921
Net increase (decrease) in negotiable certificates of deposit (119,345) (896,042) 776,696 (617,471)
Net increase (decrease) in debentures (1,077,545) (411,550) (665,995) (1,136,679)
Net increase (decrease) in borrowed money (excluding subordinated (208,726) 161,564 (370,290) 357,121
borrowings)
Net decrease (increase) in due from banks (excluding cash equivalents) 491,185 434,557 56,628 1,621,264
Net decrease (increase) in call loans and bills bought and others 623,072 1,246,550 (623,478) 2,342,085
Net decrease (increase) in receivables under securities borrowing (736,788) 48,873 (785,662) 425,635
transactions
Net increase (decrease) in call money and bills sold and others (1,112,719) (4,039,753) 2,927,033 (2,636,899)
Net increase (decrease) in commercial paper 69,688 161,730 (92,041) 310,281
Net increase (decrease) in payables under securities lending 377,634 (870,619) 1,248,254 (1,411,961)
transactions
Net decrease (increase) in foreign exchanges (assets) (54,999) 61,986 (116,985) 252,186
Net increase (decrease) in foreign exchanges (liabilities) 134,471 157,668 (23,197) 80,976
Net increase (decrease) in issuance and redemption of unsubordinated 229,423 105,398 124,025 263,009
bonds and notes
Net increase (decrease) in due to trust account (646,756) (589,632) (57,123) (1,364,626)
Interest income (cash basis) 958,652 1,301,726 (343,073) 2,369,236
Interest expenses (cash basis) (413,633) (775,386) 361,753 (1,323,986)
Other 104,074 823,727 (719,652) 1,068,957
---------------------------------------------------------
Sub-total 1,276,230 (3,070,824) 4,347,054 52,494
Income taxes (30,332) (42,971) 12,639 (88,644)
---------------------------------------------------------
Net cash provided by (used in) operating activities 1,245,897 (3,113,796) 4,359,694 (36,150)
Cash flows from investing activities:
Purchases of investment securities (22,905,355) (17,740,789) (5,164,566) (36,929,340)
Proceeds from sales of investment securities 12,765,484 18,154,706 (5,389,222) 28,556,435
Proceeds from maturities of investment securities 9,460,086 2,520,164 6,939,922 8,448,217
Increase in money held in trust (64,333) (197,297) 132,964 (289,742)
Decrease in money held in trust 48,921 268,159 (219,237) 380,991
Purchases of premises and equipment (29,424) (36,537) 7,113 (62,489)
Proceeds from sales of premises and equipment 15,107 8,436 6,671 21,219
---------------------------------------------------------
Net cash provided by (used in) investing activities (709,513) 2,976,841 (3,686,355) 125,290
Cash flows from financing activities:
Increase in subordinated borrowings 115,500 34,000 81,500 91,062
Decrease in subordinated borrowings (70,599) (75,000) 4,400 (182,562)
Increase in subordinated bonds and notes and convertible bonds - 140,996 (140,996) 176,800
Increase in subordinated bonds and notes and bonds with warrants 161,432 - 161,432 -
Decrease in subordinated bonds and notes and convertible bonds - (89,979) 89,979 (243,649)
Decrease in subordinated bonds and notes and bonds with warrants (279,339) - (279,339) -
Proceeds from issuance of common stock to minority shareholders 11,189 8,233 2,956 12,218
Dividend paid by the parent (41,724) (28,253) (13,471) (28,272)
Dividend paid by subsidiaries to minority shareholders (3,045) (5,226) 2,181 (5,071)
Purchases of treasury stock (380) (7,105) 6,724 (7,393)
Proceeds from sales of treasury stock 11,820 10,414 1,406 32,593
---------------------------------------------------------
Net cash provided by (used in) financing activities (95,146) (11,920) (83,226) (154,273)
---------------------------------------------------------
Effect of exchange rate changes on cash and cash equivalents (72,492) 41,314 (113,806) 69,919
---------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 368,744 (107,561) 476,305 4,785
Cash and cash equivalents at beginning of period 1,741,798 1,734,069 7,729 1,734,069
Increase in cash and cash equivalents due to consolidation of new
subsidiaries 34,811 2,943 31,867 2,943
---------------------------------------------------------
Cash and cash equivalents at end of period 2,145,354 1,629,451 515,902 1,741,798
------------------------------------------------------------------------------------------------------------------------------------
See Notes to Consolidated Financial Statements.
-7-
Notes to Consolidated Financial Statements
Notes related to the Consolidated Balance Sheet as of September 30, 2002 are
as follows:
1. Basis of Presentation
The accompanying Consolidated Balance Sheet of Mitsubishi Tokyo
Financial Group, Inc. ("MTFG") and its subsidiaries is compiled as required
by the Banking Law and in conformity with accounting principles and practices
generally accepted in Japan, which are different in certain respects as
compared to the application and disclosure requirements of International
Accounting Standards. The Consolidated Balance Sheet is not intended to
present the financial position in accordance with accounting principles and
practices generally accepted in countries and jurisdictions other than Japan.
For the convenience of readers, the presentation is modified in certain
respects from the original Japanese report. The amounts are presented in
millions of yen and are rounded down to the nearest million.
2. Trading Assets and Liabilities
Transactions for trading purposes (for purposes of seeking to capture
gains arising from short-term changes in interest rates, currency exchange
rates or market prices of securities and other market-related indices or from
gaps among markets) are included in Trading assets and Trading liabilities on
a trade date basis.
Trading securities and monetary claims purchased for trading purposes
are stated at market value at the interim fiscal year end. Trading-related
financial derivatives such as swaps, futures or options are stated at the
estimated amounts that would be received or paid for settlement if such
transactions were terminated at the 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 the interim fiscal year end (sale
cost is calculated by the moving-average method) and other non-marketable
securities are stated at cost or amortized cost computed by the
moving-average method. Unrealized gains and losses on securities available
for sale are included in shareholders' equity, net of income taxes.
4. Securities in Money Held in Trust
Securities included in Money held in trust are stated at the same
method as described in notes 2. and 3.
5. Derivatives
Derivatives for purposes other than trading are stated at market value.
6. Premises and Equipment
Depreciation for buildings and equipment of MTFG and its domestic
banking subsidiary and trust banking subsidiary is computed using the
declining-balance method.
Principal estimated useful lives are as follows:
Buildings 15 years to 50 years
Equipment and Furniture 5 years to 20 years
Depreciation for buildings and equipment of other consolidated
subsidiaries is computed principally using the straight-line method based on
the estimated useful lives.
-8-
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 years.
8. Discounts and Issuance Costs of Debentures and Bonds
Debenture and bond discounts are deferred and amortized using the
straight-line method over the lives of the debentures and bonds. Bond
issuance costs are charged to expenses as they are incurred.
9. Translation of Foreign Currency Items
Foreign currency assets and liabilities and overseas branches' accounts
of MTFG's domestic banking subsidiary and trust banking subsidiary are
principally translated into yen equivalents at the exchange rates prevailing
at the 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.
In the previous fiscal year, MTFG's domestic consolidated subsidiaries
had adopted the Industry Audit Committee Report No.20, "Temporary Treatment
of Accounting and Auditing Concerning Accounting for Foreign Currency
Transactions in the Banking Industry", issued by the Japanese Institute of
Certified Public Accountants (the "JICPA") on November 14, 2000. Since the
current interim fiscal year, however, MTFG's domestic consolidated
subsidiaries have adopted the Industry Audit Committee Report No.25,
"Treatment of Accounting and Auditing Concerning Accounting for Foreign
Currency Transactions in the Banking Industry", issued by the JICPA on July
29, 2002.
In the current interim fiscal year, as MTFG's domestic consolidated
subsidiaries have adopted the transitional applications described in the
Industry Audit Committee Report No.25, "fund swap transactions", "currency
swap transactions" and "treatment of internal contract method and
intercompany transactions" are accounted for in the same method as before.
The translation difference of forward exchange transactions and other
relevant transactions are presented with the net balance of the related asset
or liability.
For fund swap transactions of MTFG's domestic consolidated subsidiaries,
the amounts on the balance sheet are net yen-conversions of the principal
equivalents of assets and liabilities using the interim-fiscal-year-end
exchange rate. Differences between spot and forward rates in fund swap
transactions are recorded in interest income or expense on an accrual basis
for the period from the settlement date of spot foreign exchange to the
settlement date of forward foreign exchange. Therefore, accrued interest
income or expenses are recognized at the interim fiscal year end.
Fund swap transactions are foreign exchange swaps, and consist of spot
foreign exchange either bought or sold and forward foreign exchange either
sold or bought. Such transactions are contracted for the purpose of funds
lending or borrowing in a different currency. Fund swap transactions are used
to convert the principal equivalent amount into spot foreign exchange bought
or sold with regard to the corresponding funds borrowing or lending. Also,
such transactions convert the corresponding principal equivalents and foreign
currency equivalents to pay and receive, whose amounts and due dates are
predetermined at the time of the transactions, into forward foreign exchange
either bought or sold.
For currency swap transactions which are for the purpose of funds
borrowing/lending in different currencies and for which spot/forward are flat
type, which means that paying or receiving amounts at the time of the
currency swap contract are equal to receiving or paying amounts at the
currency swap maturity dates and the swap rate applied to principal and
interest is the current market rate (including the currency swap transactions
which are that the principal amount of one counterparty is revised in order
to reflect each exchange rate at the interest payment dates and are judged as
spot/forward flat type for each interest payment date), the amounts on the
balance sheet are net positions of financial asset and liability equivalents
translated by using the interim-fiscal-year-end exchange rate. The equivalent
amounts of interest to exchange are recorded in interest income or expense on
an accrual basis for the corresponding contract period. Therefore, accrued
interest income or expenses are recognized at interim fiscal year end.
-9-
Foreign currency assets and liabilities of other consolidated
subsidiaries are principally translated into yen equivalents at the exchange
rates prevailing at the interim fiscal year end of each company.
10. Allowance for Loan Losses
An allowance for loan losses of MTFG's primary domestic consolidated
subsidiaries is provided as detailed below, pursuant to the internal rules
for self-assessment of asset quality and the internal rules for providing
allowances for credit losses:
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 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 totals (Yen)966,321 million.
An allowance for loan losses of other consolidated subsidiaries is
provided based on historical loan losses experience or estimated
collectibility of specific claims.
11. Allowance for Losses on Investment Securities
An allowance for losses on investment securities is provided based on
the estimated losses on non-marketable debt securities.
12. Reserve for Employees' Bonuses
A reserve for employees' bonuses is provided for the payment of
employees' bonuses based on estimated amounts of the future payments
attributed to the current interim fiscal year.
13. Reserve for Employees' Retirement Benefits
A reserve for employees' retirement benefits is provided for the payment
of employees' retirement benefits based on estimated amounts of the actuarial
retirement benefit obligation and the related pension assets. Prior service
cost is amortized using the straight-line method over 10 years. Net actuarial
gain (loss) is amortized using the straight-line method over 10 years
commencing from the next fiscal year of incurrence. The unrecognized net
retirement benefit obligation at the adoption of new accounting standard is
being amortized using the straight-line method over 5 years.
-10-
14. Reserve for Losses on Real Estate-Collateralized Loans Sold
A reserve for losses on real estate-collateralized loans sold is provided
based on the estimated losses with respect to real estate-collateralized loans
sold to the Cooperative Credit Purchasing Company, Limited, considering the fair
value of the collateral of such loans. The reserve is provided pursuant to
Article 287-2 of the Commercial Code.
15. 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.
16. Method of Hedge Accounting
The method of hedge accounting is a "Macro Hedge" in which MTFG's domestic
banking subsidiary and trust banking subsidiary manage interest rate risks as a
whole arising from various financial assets and liabilities with derivatives
transactions in conformity with the transitional applications described in the
Industry Audit Committee Report No.24, "Treatment of Accounting and Auditing of
Application of Accounting Standard for Financial Instruments in the Banking
Industry", issued by the JICPA on February 13, 2002. They apply risk adjustment
approaches based on the Industry Audit Committee Report No.15, "Temporary
Treatment of Accounting and Auditing of Application of Accounting Standard for
Financial Instruments in the Banking Industry", issued by the JICPA on February
15, 2000. The effectiveness of the macro hedge is reviewed for a reduction in
interest rate risk exposure and for the actual risk amount of derivatives within
the permitted risk amount under their risk control policies.
They also apply deferral hedge accounting to the exchange risk of equity
securities of affiliated companies in foreign currency and fair value hedge
accounting to the exchange risk of securities available for sale in foreign
currency (other than bonds) as "portfolio hedges" defined under "Accounting
Standard for Financial Instruments" when the hedged foreign currency securities
are specified prior to the inception of the transaction and spot and forward
liabilities exist on a foreign currency basis that exceed acquisition costs of
the foreign currency securities designated as hedged items.
Other consolidated subsidiaries apply deferral hedge accounting, fair value
hedge accounting or exceptional treatments permitted for interest rate swaps for
certain assets and liabilities.
17. 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 accounted for as expenses when
incurred.
18. Reserve 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
(Yen)58 million is provided.
Pursuant to Article 51 of the Securities and Exchange Law, a reserve for
contingent liabilities from brokering of securities transactions of (Yen)482
million is provided.
19. Due from Directors of MTFG
Due from directors of MTFG totals (Yen)87 million.
20. Accumulated Depreciation
Accumulated depreciation on premises and equipment totals (Yen)639,714
million.
-11-
21. Accumulated Deferred Gains on Sales of Real Estate
Accumulated deferred gains of (Yen)59,859 million on sales of real estate
are deducted from the acquisition cost of newly acquired premises and equipment.
22. Nonaccrual Loans
Loans to customers in bankruptcy and past due loans are included in Loans
and bills discounted, and total (Yen)110,961 million and (Yen)1,549,602 million,
respectively. However, the amount of past due loans includes loans of (Yen)791
million entrusted through the managed trust method to the Resolution and
Collection Corporation, which facilitates the final disposal of bad loans.
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.
23. 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 total (Yen)13,970 million. Loans classified as
loans to customers in bankruptcy or past due loans are excluded.
24. Restructured Loans
Restructured loans are included in Loans and bills discounted, and total
(Yen)1,800,590 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.
25. Non-accrual Loans, Accruing Loans Contractually Past Due 3 Months or More
and Restructured Loans
Nonaccrual loans, accruing loans contractually past due 3 months or more
and restructured loans total (Yen)3,475,124 million. However, the amount of past
due loans includes loans totaling (Yen)791 million entrusted through the managed
trust method to the Resolution and Collection Corporation, which facilitates the
final disposal of bad loans.
The amounts reflected in notes 22. to 25. represent the gross receivable
amounts prior to reduction for the allowance for loan losses.
26. Bills Discounted
Bills discounted are accounted for as secured lending transactions in
conformity with the Industry Audit Committee Report No.24. Bills accepted by
other banks, commercial bills, bills of exchange, and foreign bills bought
discounted by MTFG's domestic banking subsidiary and trust banking subsidiary
are permitted to be sold or pledged and have a total face value of (Yen)844,191
million.
-12-
27. Assets Pledged
Assets pledged as collateral are as follows:
Cash and due from banks (Yen)3,358 million
Trading assets (Yen)109,829 million
Investment securities (Yen)1,498,012 million
Loans and bills discounted (Yen)1,411,937 million
Other assets (Yen)8,609 million
Premises and equipment (Yen)5,285 million
Liabilities related to the above pledged assets are as follows:
Deposits (Yen)191,802 million
Call money and bills sold (Yen)1,495,300 million
Borrowed money (Yen)193,435 million
Other liabilities (Yen)8,720 million
Acceptances and guarantees (Yen)3,358 million
In addition, Cash and due from banks of (Yen)294,316 million, Commercial
paper and other debt purchased of (Yen)13,608 million, Trading assets of
(Yen)410 million, Investment securities of (Yen)3,111,196 million, Loans and
bills discounted of (Yen)63,948 million and Other assets of (Yen)9,867 million
are pledged as collateral for settlement of exchange or derivatives transactions
or as valuation margin.
Trading assets of (Yen)1,311,977 million, Investment securities of
(Yen)3,726,482 million and Loans and bills discounted of (Yen)16,669 million
are sold under repurchase agreements or lent under secured lending transactions,
and Payables under repurchase agreements of (Yen)1,887,905 million and Payables
under securities lending transactions of (Yen)2,684,312 million are
corresponding. Bills rediscounted are accounted for secured borrowing
transactions in conformity with the Industry Audit Committee Report No.24. The
total face value of bills accepted by other banks, commercial bills, and bills
of exchange rediscounted by MTFG's domestic banking subsidiary and trust banking
subsidiary is (Yen)19,119 million.
28. Land Revaluation Excess
Pursuant to the Law concerning Revaluation of Land, promulgated on March
31,1998 and revised on March 31,2001, land used for business operations of
domestic subsidiaries has been revalued as of the following dates. Land
revaluation excess is included in Shareholders' equity, net of income taxes. The
land revaluation excess includes MTFG's ownership percentage of affiliated
companies' land revaluation excess.
Date of the revaluation
Domestic banking subsidiary March 31, 1998
Domestic trust banking subsidiary March 31, 2002
Other domestic subsidiaries December 31, 2001
The method of the revaluation is set forth in Article 3, Paragraph 3 of
the law.
Pursuant to Article 2, Subparagraph 4 of the Enforcement Ordinance
for the Law concerning Revaluation of Land, the land price for the
revaluation is determined based on the method established and
published by the Director General of National Tax Agency in order to
calculate the land value for a basis of determining the taxable
amount subject to land value tax prescribed by Article 16 of the Land
Value Tax Law, reflecting appropriate adjustments for land shape and
timing of the assessment and based on real estate appraisal
information defined by Article 5 of the Law.
Land used for business operations of a certain affiliated company has
been revalued as of March 31, 2002.
-13-
29. Subordinated Borrowings
Subordinated borrowings of (Yen)837,652 million are included in Borrowed
money.
30. Subordinated Bonds
Subordinated bonds of (Yen)1,626,425 million are included in Bonds and
notes.
31. Guaranteed Trusts
Principal amounts of Jointly operated designated money trusts and Loan
trusts of MTFG's trust banking subsidiary, for which repayment of the principal
to the customers is guaranteed, are (Yen)905,619 million and (Yen)1,866,390
million, respectively.
32. Net Assets per Common Share
Net assets per common share are (Yen)445,269.62.
Since the current interim fiscal year, MTFG has adopted Financial
Accounting Standard No.2 "Accounting Standard for Earning per Share" issued by
the Accounting Standards Board of Japan (the "ASBJ") on September 25, 2002 and
Financial Accounting Standards Implementation Guidance No.4 "Accounting Standard
for Earning per Share" issued by the ASBJ on September 25, 2002.
33. 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 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
34. Market Value of Securities
Market value and valuation differences of securities are as follows.
Securities below include trading securities and trading commercial paper
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 35. to 37.
Trading securities
Balance sheet amount (Yen)4,505,118 million
Valuation gains included in Loss before
income taxes and others (Yen)736 million
-14-
Marketable debt securities being held to maturity
(in millions of yen)
Balance sheet amount Market value Differences Gains Losses
Domestic bonds 205,147 215,660 10,513 10,513 -
Municipal bonds 126,963 133,319 6,356 6,356 -
Corporate bonds 78,183 82,341 4,157 4,157 -
Other securities 424,580 429,183 4,603 4,683 79
Foreign bonds 125,389 129,993 4,603 4,683 79
Other 299,190 299,190 - - -
-----------------------------------------------------------------------------------------------------------
Total 629,727 644,844 15,117 15,196 79
Marketable securities available for sale
(in millions of yen)
Balance sheet Valuation
Cost amount differences Gains Losses
Domestic equity securities 4,191,596 3,969,653 (221,942) 343,679 565,621
Domestic bonds 11,236,769 11,332,928 96,159 97,420 1,261
Government bonds 9,449,564 9,522,776 73,212 73,609 397
Municipal bonds 407,339 417,153 9,813 9,838 25
Corporate bonds 1,379,865 1,392,998 13,133 13,972 839
Other securities 7,181,650 7,290,027 108,376 211,840 103,463
Foreign equity securities 20,828 40,350 19,521 19,969 448
Foreign bonds 5,764,290 5,936,289 171,998 179,627 7,628
Other 1,396,530 1,313,387 (83,143) 12,243 95,386
-----------------------------------------------------------------------------------------------------------
Total 22,610,015 22,592,608 (17,406) 652,940 670,347
Valuation differences, net of (Yen)7,688 million of related deferred tax
assets, are (Yen)(9,718) million. Net valuation differences, excluding minority
interest of (Yen)411 million and adding MTFG's ownership percentage of
affiliates' unrealized gains on securities available for sale of (Yen)608
million, are (Yen)(9,521) million which is included in Unrealized gains on
securities available for sale.
35. Securities Available for Sale Sold
Securities available for sale sold during the interim fiscal year are as
follows:
(in millions)
Proceeds from sales Gains Losses
(Yen)12,490,907 (Yen)133,811 (Yen)126,510
-15-
36. Securities not stated at Market Value
The balance sheet amount of principal securities not stated at market value
is as follows:
Balance sheet amount
Debt Securities being held to maturity
Foreign bonds (Yen)26,402 million
Securities available for sale
Domestic equity securities (Yen)103,204 million
Domestic municipal bonds (Yen)52,549 million
Domestic corporate bonds (Yen)274,322 million
Foreign equity securities (Yen)6,914 million
Foreign bonds (Yen)48,676 million
37. Redemption Schedule of Bonds
Redemption schedule of bonds classified as securities available for sale
and being held to maturity is as follows:
(in millions of yen)
Due within Due after 1 year Due after 5 years Due after
1 year through 5 years through 10 years 10 years
Domestic bonds 3,309,130 6,596,626 1,949,477 9,698
Government bonds 2,884,393 4,963,024 1,675,358 -
Municipal bonds 15,258 419,047 157,321 5,038
Corporate bonds 409,477 1,214,554 116,798 4,660
Other bonds 955,205 4,553,604 1,295,105 585,884
Foreign bonds 575,450 4,208,323 1,077,652 273,834
Other 379,754 345,280 217,453 312,049
--------------------------------------------------------------------------------------------------
Total 4,264,335 11,150,231 3,244,583 595,582
38. Money Held in Trust
Classification of Money held in trust is as follows:
Money held in trust for trading purposes
Balance sheet amount (Yen)243,155 million
Valuation losses included in Loss before
income taxes and others (Yen)(9,348) million
Other Money held in trust
(in millions)
Cost Balance sheet amount Valuation differences Gains Losses
(Yen)94,833 (Yen)94,833 - - -
39. Unsecured Loaned Securities
Unsecured loaned securities for which borrowers have rights of sale or
pledge are included in Investment securities and total (Yen)138,489 million.
Loaned securities for which borrowers have rights of pledge but no rights of
sale are included in Investment securities and total (Yen)43 million.
Borrowed securities and purchased securities under resale agreements that
are permitted to be sold or pledged of (Yen) 3,652,304 million were pledged and
(Yen)2,407,903 million of such securities were held at hand.
-16-
40. 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 totals (Yen)28,124,804 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.
41. Adoption of Financial Accounting Standard No.1
Since the current interim fiscal year, MTFG has adopted Financial
Accounting Standard No.1 "Accounting Standard for Treasury Stock and Reversal of
Legal Reserves" issued by the ASBJ on February 21, 2002.
42. Change of presentation
With the revision of the form prescribed by Ministerial Ordinance of the
Banking Law, the presentations are changed as follows.
(1) Receivables under securities borrowing transactions, included in Other
assets in the previous interim fiscal year, are reported separately in the
current interim fiscal year. Payables under securities lending
transactions, included in Other liabilities in the previous interim fiscal
year, are reported separately in the current interim fiscal year.
(2) Convertible bonds, reported separately in the previous interim fiscal
year, are included in Bonds with warrants in the current interim fiscal
year.
-17-
Notes related to the Consolidated Statement of Operations for the six months
ended September 30, 2002 are as follows:
1. Basis of Presentation
The accompanying Consolidated Statement of Operations is compiled as
required by the Banking Law and in conformity with accounting principles and
practices generally accepted in Japan, which are different in certain respects
as compared to application and disclosure requirements of International
Accounting Standards. The Consolidated Statement of Operations is not intended
to present the results of operations in accordance with accounting principles
and practices generally accepted in countries and jurisdictions other than
Japan. For the convenience of readers, the presentation is modified in certain
respects from the original Japanese report. The amounts are presented in
millions of yen and are rounded down to the nearest million.
2. Net Loss per Common Share
Net loss per common share is (Yen)34,461.55.
Since the current interim fiscal year, MTFG has adopted Financial
Accounting Standard No.2 "Accounting Standard for Earning per Share" issued by
the Accounting Standards Board of Japan (the "ASBJ") on September 25, 2002 and.
Financial Accounting Standards Implementation Guidance No.4 "Accounting Standard
for Earning per Share" issued by the ASBJ on September 25, 2002.
3. Trading Profits and Losses
Profits and losses on trading transactions are shown as Trading profits or
Trading losses on a trade date basis.
The amounts of the above profits and losses presented are the sum of (1)
the difference between the valuation gains or losses at the beginning and end of
the current interim fiscal year in the case of securities and monetary claims
purchased, and the difference between the amount of unrealized gains or losses
at the beginning and end of current interim fiscal year in the case of
trading-related financial derivatives, and (2) interest received or paid in cash
during the interim fiscal year.
4. Other Ordinary Income
Other ordinary income includes gains on sales of equity securities of
(Yen)56,922 million.
5. Other Ordinary Expenses
Other ordinary expenses includes losses on write down of equity securities
of (Yen)201,719 million, losses on loan charge-offs of (Yen)98,758 million,
losses on sales of equity securities of (Yen)98,153 million, and provision for
allowance for loan losses of (Yen)60,939 million.
6. Adoption of Financial Accounting Standard No.1
Since the current interim fiscal year, MTFG has adopted Financial
Accounting Standard No.1 "Accounting Standard for Treasury Stock and Reversal of
Legal Reserves" issued by the Accounting Standards Board of Japan on February
21, 2002. The effect to profit or loss during the current interim fiscal year
attributable to this change is immaterial.
-18-
Note related to the Consolidated Statement of Capital Surplus and Retained
Earnings for the six months ended September 30, 2002 is as follows:
1. Basis of Presentation
The accompanying Consolidated Statement of Capital Surplus and Retained
Earnings is compiled as required by the Banking Law and in conformity with
accounting principles and practices generally accepted in Japan, which are
different in certain respects as compared to application and disclosure
requirements of International Accounting Standards. The Consolidated Statement
of Capital Surplus and Retained Earnings is not intended to present the results
of operations in accordance with accounting principles and practices generally
accepted in countries and jurisdictions other than Japan. For the convenience of
readers, the presentation is modified in certain respects from the original
Japanese report. The amounts are presented in millions of yen and are rounded
down to the nearest million.
-19-
Notes related to the Consolidated Statement of Cash Flows for the six months
ended September 30, 2002 are as follows:
1. Basis of Presentation
The accompanying Consolidated Statement of Cash Flows is compiled as
required by the Banking Law and in conformity with accounting principles and
practices generally accepted in Japan, which are different in certain respects
as compared to application and disclosure requirements of International
Accounting Standards. The Consolidated Statement of Cash Flows is not intended
to present the results of operations in accordance with accounting principles
and practices generally accepted in countries and jurisdictions other than
Japan. For the convenience of readers, the presentation is modified in certain
respects from the original Japanese report. The amounts are presented in
millions of yen and are rounded down to the nearest million.
2. Definition of Cash and Cash Equivalents
For the purpose of reporting cash flows, cash and cash equivalents are
defined as those amounts included in Cash and due from banks excluding time
deposits and negotiable certificates of deposits in other banks.
3. Reconciliation to the Cash and Cash Equivalents
The reconciliation of the Cash and due from banks in the Consolidated
Balance Sheet to the Cash and cash equivalents at end of interim fiscal year is
as follows:
(in millions)
Cash and due from banks (Yen) 6,311,583
Time deposits and negotiable certificates of deposit in other banks (4,166,228)
---------------
Cash and cash equivalents at end of interim fiscal year (Yen) 2,145,354
===============
-20-
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Segment Information
1. Business segment information
(For the six months ended September 30, 2002) (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
Trust
Banking Banking Securities Other Total (Elimination) Consolidated
------------------------------------------------------------------------------------------------------------------------------------
Ordinary income 1,056,979 283,587 44,742 99,756 1,485,065 (59,653) 1,425,412
(1) Ordinary income from customers 1,043,048 275,380 40,588 66,394 1,425,412 -- 1,425,412
(2) Internal ordinary income among segments 13,930 8,206 4,154 33,361 59,653 (59,653) --
------------------------------------------------------------------------------------------------------------------------------------
Ordinary expenses 1,193,701 324,097 62,932 73,940 1,654,671 (35,958) 1,618,712
------------------------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) (136,721) (40,509) (18,189) 25,815 (169,605) (23,694) (193,300)
------------------------------------------------------------------------------------------------------------------------------------
Notes:
1. Amounts are rounded down to the nearest million yen.
2. Other primarily includes credit card business.
3. Segment of "Securities" is reported separately which had been included in
"Other" segment in the previous interim fiscal year.
(For the six months ended September 30, 2001) (in millions of yen)
---------------------------------------------------------------------------------------------------------------------------
Trust
Banking Banking Other Total (Elimination) Consolidated
---------------------------------------------------------------------------------------------------------------------------
Ordinary income 1,244,848 368,405 131,779 1,745,032 (55,992) 1,689,040
(1) Ordinary income from customers 1,224,089 351,554 113,396 1,689,040 -- 1,689,040
(2) Internal ordinary income among segments 20,758 16,850 18,382 55,992 (55,992) --
---------------------------------------------------------------------------------------------------------------------------
Ordinary expenses 1,456,156 409,851 168,502 2,034,511 (55,400) 1,979,110
---------------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) (211,308) (41,446) (36,723) (289,478) (591) (290,070)
---------------------------------------------------------------------------------------------------------------------------
Notes:
1. Amounts are rounded down to the nearest million yen.
2. Other primarily includes securities and credit card business.
(For the year ended March 31, 2002) (in millions of yen)
---------------------------------------------------------------------------------------------------------------------------
Trust
Banking Banking Other Total (Elimination) Consolidated
---------------------------------------------------------------------------------------------------------------------------
Ordinary income 2,448,700 674,172 305,250 3,428,122 (165,775) 3,262,347
(1) Ordinary income from customers 2,406,894 647,836 207,616 3,262,347 -- 3,262,347
(2) Internal ordinary income among segments 41,805 26,335 97,633 165,775 (165,775) --
---------------------------------------------------------------------------------------------------------------------------
Ordinary expenses 2,600,269 762,855 285,932 3,649,057 (97,364) 3,551,693
---------------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) (151,569) (88,683) 19,318 (220,934) (68,410) (289,345)
---------------------------------------------------------------------------------------------------------------------------
Notes:
1. Amounts are rounded down to the nearest million yen.
2. Other primarily includes securities and credit card business.
3. With the implementation of the "Metropolitan ordinance regarding the
imposition of enterprise taxes through external standards taxation on
banks in Tokyo" (Tokyo Metropolitan Ordinance No.145, April 1, 2000)
("the metropolitan ordinance"), enterprise taxes which were hitherto
levied on income are now levied on "gross business profit".
On October 18, 2000 MTFG's domestic banking subsidiary and trust banking
subsidiary filed a lawsuit with the Tokyo District Court against the
Tokyo metropolitan government and the Governor of Tokyo seeking to void
the metropolitan ordinance. MTFG's domestic banking subsidiary and trust
banking subsidiary won the case eventually entirely on March 26, 2002
with a decision of the Tokyo District Court in favor of MTFG's domestic
banking subsidiary and trust banking subsidiary, on the grounds that the
metropolitan ordinance was illegal. The District Court ordered the
metropolitan government to return to MTFG's domestic banking subsidiary
and trust banking subsidiary advance tax payments of (Yen)11,741 million
and also awarded to MTFG's domestic banking subsidiary and trust banking
subsidiary damages of (Yen)300 million. On March 29, 2002 the
metropolitan government lodged an appeal with the Tokyo High Court
against the decision.
It is the opinion of MTFG's domestic banking subsidiary and trust banking
subsidiary that the metropolitan ordinance is both unconstitutional and
illegal. MTFG's domestic banking subsidiary and trust banking subsidiary
have asserted this opinion in the courts and the matter is still in
litigation. The fact that during this term MTFG's domestic banking
subsidiary and trust banking subsidiary have applied the same treatment
as in the previous term, accounting for enterprise taxes through external
standards taxation on banks in Tokyo in accordance with the metropolitan
ordinance, is because MTFG's domestic banking subsidiary and trust
banking subsidiary have deemed it appropriate at this stage to continue
with the same accounting
-21-
treatment as before. This accounting treatment does not constitute in any way an
admission on the part of MTFG's domestic banking subsidiary and trust banking
subsidiary either of the constitutionality or of the legality of the
metropolitan ordinance. With the implementation of the metropolitan ordinance,
enterprise taxes relating to banks in Tokyo were recorded in ordinary expenses
in the amounts of (Yen)18,637 million. As a result, there was an increase in
ordinary loss by the same amount as compared with the previous standards under
which enterprise taxes were levied on income, and its effect in the Banking
segment and the Trust Banking segment was (Yen)14,642 million and (Yen)3,994
million, respectively.
With the implementation of the "Municipal ordinance regarding the imposition of
enterprise taxes through external standards taxation on banks in Osaka" (Osaka
Municipal Ordinance No.131, June 9, 2000) ("the municipal ordinance"),
enterprise taxes which were hitherto levied on income are now levied on "gross
business profit".
On April 4, 2002, MTFG's domestic banking subsidiary and trust banking
subsidiary filed a lawsuit with the Osaka District Court against the Osaka
municipal government and the Governor of Osaka seeking to void the municipal
ordinance.
It is the opinion of MTFG's domestic banking subsidiary and trust banking
subsidiary that the municipal ordinance is both unconstitutional and illegal.
MTFG's domestic banking subsidiary and trust banking subsidiary have asserted
this opinion in the Osaka District Court and the matter is still in litigation.
The fact that during this term MTFG's domestic banking subsidiary and trust
banking subsidiary have applied the treatment accounting for enterprise taxes
through external standards taxation on banks in Osaka in accordance with the
municipal ordinance, is because MTFG's domestic banking subsidiary and trust
banking subsidiary have deemed it appropriate at this stage to apply the same
accounting treatment to Osaka as to Tokyo. This accounting treatment does not
constitute in any way an admission on the part of MTFG's domestic banking
subsidiary and trust banking subsidiary either of the constitutionality or of
the legality of the municipal ordinance. With the implementation of the
municipal ordinance, enterprise taxes relating to banks in Osaka were recorded
in ordinary expenses in the amounts of (Yen)3,087 million. As a result, there
was a increase in ordinary loss by the same amount as compared with the previous
standards under which enterprise taxes were levied on income, and its effect in
the Banking segment and the Trust Banking segment was (Yen)2,438 million and
(Yen)649 million, respectively.
2. Geographic segment information
(For the six months ended September 30, 2002) (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
North Latin Europe/ Asia/Oceania
Japan America America Mid. East excl. Japan Total (Elimination) Consolidated
------------------------------------------------------------------------------------------------------------------------------------
Ordinary income 924,661 306,109 38,712 198,764 79,953 1,548,202 (122,789) 1,425,412
(1) Ordinary income from customers 881,958 290,324 19,688 168,366 65,073 1,425,412 -- 1,425,412
(2) Internal ordinary income among
segments 42,702 15,784 19,024 30,397 14,880 122,789 (122,789) --
------------------------------------------------------------------------------------------------------------------------------------
Ordinary expenses 1,141,668 320,635 41,469 183,929 44,879 1,732,582 (113,869) 1,618,712
------------------------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) (217,006) (14,526) (2,756) 14,835 35,074 (184,380) (8,919) (193,300)
------------------------------------------------------------------------------------------------------------------------------------
Notes:
1. Amounts are rounded down to the nearest million yen.
2. 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, 2001) (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
North Latin Europe/ Asia/Oceania
Japan America America Mid. East excl. Japan Total (Elimination) Consolidated
------------------------------------------------------------------------------------------------------------------------------------
Ordinary income 1,066,284 411,360 58,681 215,811 134,169 1,886,307 (197,266) 1,689,040
(1) Ordinary income from customers 1,012,249 381,523 23,892 175,175 96,199 1,689,040 -- 1,689,040
(2) Internal ordinary income among
segments 54,035 29,837 34,788 40,635 37,970 197,266 (197,266) --
------------------------------------------------------------------------------------------------------------------------------------
Ordinary expenses 1,418,288 359,806 55,803 214,673 124,032 2,172,604 (193,494) 1,979,110
------------------------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) (352,003) 51,554 2,877 1,137 10,137 (286,297) (3,772) (290,070)
------------------------------------------------------------------------------------------------------------------------------------
Notes:
1. Amounts are rounded down to the nearest million yen.
2. North America includes United States and Canada. Latin America primarily
includes the Caribbean, Panama and Brazil. Europe/Middle East primarily
includes United Kingdom, Germany and Netherlands. Asia/Oceania excluding
Japan primarily includes Hong Kong, Singapore and China.
(For the year ended March 31, 2002) (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
North Latin Europe/ Asia/Oceania
Japan America America Mid. East excl. Japan Total (Elimination)Consolidated
------------------------------------------------------------------------------------------------------------------------------------
Ordinary income 2,012,226 816,347 112,344 439,060 246,285 3,626,265 (363,917) 3,262,347
(1) Ordinary income from customers 1,884,734 766,232 53,705 368,466 189,208 3,262,347 -- 3,262,347
(2) Internal ordinary income among
segments 127,492 50,115 58,639 70,594 57,077 363,917 (363,917) --
------------------------------------------------------------------------------------------------------------------------------------
Ordinary expenses 2,406,741 732,106 98,922 447,191 208,766 3,893,729 (342,036) 3,551,693
------------------------------------------------------------------------------------------------------------------------------------
Ordinary profit (loss) (394,514) 84,240 13,421 (8,130) 37,519 (267,464) (21,881) (289,345)
------------------------------------------------------------------------------------------------------------------------------------
-22-
Notes:
1. Amounts are rounded down to the nearest million yen.
2. 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.
3. With the implementation of the "Metropolitan ordinance regarding the
imposition of enterprise taxes through external standards taxation on
banks in Tokyo" (Tokyo Metropolitan Ordinance No.145, April 1, 2000)
("the metropolitan ordinance"), enterprise taxes which were hitherto
levied on income are now levied on "gross business profit".
On October 18, 2000 MTFG's domestic banking subsidiary and trust banking
subsidiary filed a lawsuit with the Tokyo District Court against the Tokyo
metropolitan government and the Governor of Tokyo seeking to void the
metropolitan ordinance. MTFG's domestic banking subsidiary and trust
banking subsidiary won the case eventually entirely on March 26, 2002 with
a decision of the Tokyo District Court in favor of MTFG's domestic banking
subsidiary and trust banking subsidiary, on the grounds that the
metropolitan ordinance was illegal. The District Court ordered the
metropolitan government to return to MTFG's domestic banking subsidiary
and trust banking subsidiary advance tax payments of (Yen)11,741 million
and also awarded to MTFG's domestic banking subsidiary and trust banking
subsidiary damages of (Yen)300 million. On March 29, 2002 the metropolitan
government lodged an appeal with the Tokyo High Court against the decision.
It is the opinion of MTFG's domestic banking subsidiary and trust banking
subsidiary that the metropolitan ordinance is both unconstitutional and
illegal. MTFG's domestic banking subsidiary and trust banking subsidiary
have asserted this opinion in the courts and the matter is still in
litigation. The fact that during this term MTFG's domestic banking
subsidiary and trust banking subsidiary have applied the same treatment as
in the previous term, accounting for enterprise taxes through external
standards taxation on banks in Tokyo in accordance with the metropolitan
ordinance, is because MTFG's domestic banking subsidiary and trust banking
subsidiary have deemed it appropriate at this stage to continue with the
same accounting treatment as before. This accounting treatment does not
constitute in any way an admission on the part of MTFG's domestic banking
subsidiary and trust banking subsidiary either of the constitutionality or
of the legality of the metropolitan ordinance. With the implementation of
the metropolitan ordinance, enterprise taxes relating to banks in Tokyo
were recorded in ordinary expenses in the amounts of (Yen)18,637 million.
As a result, there was an increase in ordinary loss in Japan by the same
amount as compared with the previous standards under which enterprise taxes
were levied on income. With the implementation of the "Municipal ordinance
regarding the imposition of enterprise taxes through external standards
taxation on banks in Osaka" (Osaka Municipal Ordinance No.131, June 9,
2000) ("the municipal ordinance"), enterprise taxes which were hitherto
levied on income are now levied on "gross business profit".
On April 4, 2002, MTFG's domestic banking subsidiary and trust banking
subsidiary filed a lawsuit with the Osaka District Court against the Osaka
municipal government and the Governor of Osaka seeking to void the
municipal ordinance. It is the opinion of MTFG's domestic banking
subsidiary and trust banking subsidiary that the municipal ordinance is
both unconstitutional and illegal. MTFG's domestic banking subsidiary and
trust banking subsidiary have asserted this opinion in the Osaka District
Court and the matter is still in litigation. The fact that during this term
MTFG's domestic banking subsidiary and trust banking subsidiary have
applied the treatment accounting for enterprise taxes through external
standards taxation on banks in Osaka in accordance with the municipal
ordinance, is because MTFG's domestic banking subsidiary and trust banking
subsidiary have deemed it appropriate at this stage to apply the same
accounting treatment to Osaka as to Tokyo. This accounting treatment does
not constitute in any way an admission on the part of MTFG's domestic
banking subsidiary and trust banking subsidiary either of the
constitutionality or of the legality of the municipal ordinance. With the
implementation of the municipal ordinance, enterprise taxes relating to
banks in Osaka were recorded in ordinary expenses in the amounts of
(Yen)3,087 million. As a result, there was a increase in ordinary loss in
Japan by the same amount as compared with the previous standards under
which enterprise taxes were levied on income.
3. Ordinary income from overseas operations
(in millions of yen)
---------------------------------------------------------------------------------------------------------------------------
Ordinary income from overseas
Ordinary income from Consolidated operations as a percentage of
overseas operations ordinary income consolidated ordinary income
---------------------------------------------------------------------------------------------------------------------------
For the six months ended %
September 30, 2002 543,453 1,425,412 38.1
---------------------------------------------------------------------------------------------------------------------------
For the six months ended %
September 30, 2001 676,791 1,689,040 40.1
---------------------------------------------------------------------------------------------------------------------------
For the year ended %
March 31, 2002 1,377,612 3,262,347 42.2
---------------------------------------------------------------------------------------------------------------------------
Notes:
1. Amounts are rounded down to the nearest million yen.
2. Ordinary income from overseas operations consists of income from
transactions of the overseas branches of MTFG's domestic banking
subsidiary and trust banking subsidiary, and MTFG's overseas subsidiaries
(excluding internal ordinary income among consolidated companies).
-23-
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Investment securities
Following tables include:
Investment securities
Negotiable certificates of deposits in "Cash and due from banks"
Beneficiary certificates of merchandise investment in "Commercial Paper and
other debt purchased".
1. Marketable debt securities being held to maturity
(in millions of yen)
------------------------------------------------------------------------------------------
As of September 30, 2001
-------------------------------------------------------------------
Balance sheet Market value Differences
----------------------
amount Gains Losses
------------------------------------------------------------------------------------------
Domestic bonds 222,611 233,156 10,544 10,591 46
----------------------------------------------------------------------------------------
Government bonds 0 0 0 0 -
----------------------------------------------------------------------------------------
Municipal bonds 122,917 128,503 5,586 5,633 46
----------------------------------------------------------------------------------------
Corporate bonds 99,693 104,652 4,958 4,958 -
------------------------------------------------------------------------------------------
Foreign bonds 130,799 136,330 5,530 5,614 84
------------------------------------------------------------------------------------------
Other 272,512 276,041 3,529 3,732 202
------------------------------------------------------------------------------------------
Total 625,924 645,528 19,604 19,938 333
------------------------------------------------------------------------------------------
2. Marketable securities available for sale
(in millions of yen)
------------------------------------------------------------------------------------------
As of September 30, 2001
--------------------------------------------------------------
Cost Balance sheet Valuation differences
----------------------
amount Gains Losses
------------------------------------------------------------------------------------------
Domestic equity securities 5,407,834 5,224,071 (183,762) 511,197 694,960
------------------------------------------------------------------------------------------
Domestic bonds 8,739,888 8,820,949 81,060 82,879 1,819
-------------------------------------------------------------------------------------
Government bonds 7,117,428 7,166,321 48,893 50,244 1,351
-------------------------------------------------------------------------------------
Municipal bonds 417,427 429,624 12,197 12,240 43
-------------------------------------------------------------------------------------
Corporate bonds 1,205,032 1,225,003 19,970 20,394 424
------------------------------------------------------------------------------------------
Foreign equity securities 28,669 45,496 16,826 18,632 1,806
------------------------------------------------------------------------------------------
Foreign bonds 4,166,411 4,279,840 113,428 122,297 8,869
------------------------------------------------------------------------------------------
Other 678,529 621,658 (56,871) 4,995 61,866
------------------------------------------------------------------------------------------
Total 19,021,334 18,992,015 (29,318) 740,003 769,321
------------------------------------------------------------------------------------------
3. Principal securities not stated at market value
(in millions of yen)
-----------------------------------------------------------------------------
As of September 30, 2001
---------------------------------
Balance sheet amount
-----------------------------------------------------------------------------
Debt securities being held to maturity
Foreign bonds 18,787
-----------------------------------------------------------------------------
Securities available for sale
Domestic equity securities 115,577
Domestic municipal bonds 44,610
Domestic corporate bonds 233,477
Foreign equity securities 7,460
Foreign bonds 86,046
-----------------------------------------------------------------------------
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, 2001
--------------------------------------------------------------
Cost Balance sheet Valuation differences
------------------
amount Gains Losses
--------------------------------------------------------------
50,626 50,632 6 6 -
--------------------------------------------------------------
Unrealized gains on securities available for sale
The classification of unrealized gains on securities available for sale on
the consolidated balance sheet is as follows:
(in millions of yen)
--------------------------------------------------------------------------------------------
As of September 30, 2001
--------------------------------------------------------------------------------------------
Valuation differences (29,312)
---------------------------------------------------------------------------------------
Securities available for sale (29,318)
---------------------------------------------------------------------------------------
Other money held in trust 6
--------------------------------------------------------------------------------------------
Deferred tax assets 9,746
--------------------------------------------------------------------------------------------
Net valuation differences (19,566)
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Minority interest (2,741)
--------------------------------------------------------------------------------------------
MTFG's ownership percentage of affiliates' unrealized gains on (1,872)
securities available for sale
--------------------------------------------------------------------------------------------
Unrealized gains on securities available for sale (24,179)
--------------------------------------------------------------------------------------------
-24-
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Investment securities
Following tables include:
Investment securities
Trading securities and negotiable certificates of deposits in "Trading
assets"
Negotiable certificates of deposits in "Cash and due from banks"
Securities and beneficiary certificates of merchandise investment in
"Commercial Paper and other debt purchased".
1. Trading securities
(in millions of yen)
-----------------------------------------------------
As of March 31, 2002
-----------------------------------------------------
Balance sheet Valuation losses recognized on
amount statement of operations
-----------------------------------------------------
5,092,795 (456)
-----------------------------------------------------
2. Marketable debt securities being held to maturity
(in millions of yen)
------------------------------------------------------------------------------------------------
As of March 31, 2002
-------------------------------------------------------------------
Balance sheet Market value Differences
----------------------
amount Gains Losses
------------------------------------------------------------------------------------------------
Domestic bonds 216,074 224,947 8,872 8,956 83
--------------------------------------------------------------------------------------------
Government bonds 0 0 0 0 -
--------------------------------------------------------------------------------------------
Municipal bonds 127,660 132,349 4,688 4,772 83
--------------------------------------------------------------------------------------------
Corporate bonds 88,414 92,597 4,183 4,183 -
------------------------------------------------------------------------------------------------
Foreign bonds 142,140 146,795 4,655 4,843 188
------------------------------------------------------------------------------------------------
Other 254,746 254,746 - - -
------------------------------------------------------------------------------------------------
Total 612,962 626,489 13,527 13,799 271
------------------------------------------------------------------------------------------------
3. Marketable securities available for sale
(in millions of yen)
------------------------------------------------------------------------------------------------
As of March 31, 2002
-------------------------------------------------------------------
Cost Balance sheet Valuation differences
----------------------
amount Gains Losses
------------------------------------------------------------------------------------------------
Domestic equity securities 4,901,605 4,973,059 71,454 551,983 480,528
------------------------------------------------------------------------------------------------
Domestic bonds 11,071,960 11,151,663 79,702 83,691 3,989
--------------------------------------------------------------------------------------------
Government bonds 9,289,845 9,348,331 58,486 59,085 598
--------------------------------------------------------------------------------------------
Municipal bonds 444,440 454,724 10,284 10,426 142
--------------------------------------------------------------------------------------------
Corporate bonds 1,337,675 1,348,606 10,931 14,179 3,248
------------------------------------------------------------------------------------------------
Foreign equity securities 28,559 54,553 25,994 26,725 731
------------------------------------------------------------------------------------------------
Foreign bonds 4,838,160 4,839,041 880 67,404 66,524
------------------------------------------------------------------------------------------------
Other 1,357,507 1,318,317 (39,189) 14,119 53,309
------------------------------------------------------------------------------------------------
Total 22,197,793 22,336,635 138,842 743,925 605,083
------------------------------------------------------------------------------------------------
4. Securities available for sold
(in millions of yen)
-------------------------------------------------
For the year ended March 31, 2002
-------------------------------------------------
Proceeds Gains Losses
from sales on sales on sales
-------------------------------------------------
28,137,984 255,369 300,345
-------------------------------------------------
5. Principal securities not stated at market value
(in millions of yen)
-----------------------------------------------------------------------------
As of March 31, 2002
--------------------------------------
Balance sheet amount
-----------------------------------------------------------------------------
Debt securities being held to maturity
Foreign bonds 11,392
-----------------------------------------------------------------------------
Securities available for sale
Domestic equity securities 96,621
Domestic municipal bonds 45,287
Domestic corporate bonds 253,946
Foreign equity securities 11,918
Foreign bonds 25,984
-----------------------------------------------------------------------------
6. Repayment schedules of securities
(in millions of yen)
------------------------------------------------------------------------------------------
As of March 31, 2002
--------------------------------------------------------------
Due within Due after 1 year Due after 5 years Due after
1 year through 5 years through 10 years 10 years
------------------------------------------------------------------------------------------
Domestic bonds 3,715,867 6,716,062 1,233,198 1,785
--------------------------------------------------------------------------------------
Government bonds 3,505,091 4,941,208 902,032 -
--------------------------------------------------------------------------------------
Municipal bonds 16,034 406,601 205,036 -
--------------------------------------------------------------------------------------
Corporate bonds 194,732 1,368,252 126,128 1,785
------------------------------------------------------------------------------------------
Foreign bonds 709,418 2,819,025 1,084,232 403,764
------------------------------------------------------------------------------------------
Other 338,836 530,919 226,268 376,938
------------------------------------------------------------------------------------------
Total 4,764,122 10,066,007 2,543,700 782,487
------------------------------------------------------------------------------------------
-25-
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, 2002
-------------------------------------------------------
Balance sheet Valuation gains recognized on
amount statement of operations
-------------------------------------------------------
219,026 3,338
-------------------------------------------------------
2. Money held in trust other than trading purpose and being held to maturity
(in millions of yen)
-----------------------------------------------------------------------------
As of March 31, 2002
-----------------------------------------------------------------------------
Cost Balance sheet Valuation differences
-----------------------------
amount Gains Losses
-----------------------------------------------------------------------------
85,033 85,033 - - -
-----------------------------------------------------------------------------
Unrealized gains on securities available for sale
The classification of unrealized gains on securities available for sale on
the consolidated balance sheet is as follows:
(in millions of yen)
-----------------------------------------------------------------------------
As of March 31, 2002
-----------------------------------------------------------------------------
Valuation differences 138,842
--------------------------------------------------------------------------
Securities available for sale 138,842
-----------------------------------------------------------------------------
Deferred tax liabilities (49,076)
-----------------------------------------------------------------------------
Net valuation differences 89,765
-----------------------------------------------------------------------------
Minority interest (4,145)
-----------------------------------------------------------------------------
MTFG's ownership percentage of affiliates' unrealized gains on
securities available for sale (1,603)
-----------------------------------------------------------------------------
Unrealized gains on securities available for sale 84,016
-----------------------------------------------------------------------------
-26-
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Notional principal or contract amount, market value and valuation gains (losses)
on derivatives
a. Interest rate-related transactions
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2002
------------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
--------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------
Futures 8,307,705 (7,042) (7,042)
-----------------------------------------------------------------------------
Options 5,088,593 6,389 1,841
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
FRAs 792,187 (501) (501)
-----------------------------------------------------------------------------
Swaps 215,265,731 118,394 118,394
-----------------------------------------------------------------------------
Others 12,933,774 5,485 2,698
--------------------------------------------------------------------------------
Total 122,725 115,390
--------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the table above.
b. Foreign exchange-related transactions
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2002
------------------------------------------------------
Notional principal Valuation
amount Market value gains (losses)
--------------------------------------------------------------------------------
Over-the-counter
--------------------------------------------------------------------------------
Swaps 8,784,272 (20,268) (20,268)
--------------------------------------------------------------------------------
Forward contracts 81,824 152 152
--------------------------------------------------------------------------------
Options 1,353 1 1
--------------------------------------------------------------------------------
Total (20,114) (20,114)
--------------------------------------------------------------------------------
Notes: 1. Valuation gains (losses) are recognized in the consolidated statement
of operations. Derivatives which qualify for hedge-accounting and/or
which are applicable to notes 2. are not included in the table above.
2. Currency swaps which are accounted for on an accrual basis are not
included in the table above.
Notional principal amount, market value and valuation gains (losses)
on currency swaps which are accounted for on an accrual basis are as
follows:
(in millions of yen)
-----------------------------------------------------------------------------
As of September 30, 2002
------------------------------------------------------
Notional principal
amount Market value Valuation losses
-----------------------------------------------------------------------------
Swaps 6,223,453 (17,310) (17,310)
-----------------------------------------------------------------------------
Other foreign exchange-related transactions such as forward exchange
contracts and currency options, whose valuation gains (losses) have
been recognized in the consolidated statement of operations, are not
included in the table above.
Notional principal or contract amounts of such foreign
exchange-related transactions are as follows:
(in millions of yen)
-----------------------------------------------------------------
As of September 30, 2002
--------------------------------------
Notional principal or contract amount
-----------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------
Futures 3,647
-----------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------
Forward contracts 64,716,665
-----------------------------------------------------------------
Options 10,530,635
-----------------------------------------------------------------
-27-
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
c. Equity-related transactions
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2002
--------------------------------------------------------------------------------
Notional principal
or contract amount Market value Valuation gains
--------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------
Futures 71,586 276 276
-----------------------------------------------------------------------------
Options 46,672 (102) 73
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
Options 167,058 2,718 2,787
-----------------------------------------------------------------------------
Swaps 15,381 151 151
--------------------------------------------------------------------------------
Total 3,044 3,290
--------------------------------------------------------------------------------
Note: Valuation gains are recognized in the consolidated statement of
operations.
d. Bond-related transactions
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2002
--------------------------------------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
--------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------
Futures 2,239,098 273 273
-----------------------------------------------------------------------------
Options 320,023 (509) (78)
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
Options 724,700 (1,009) (1,117)
--------------------------------------------------------------------------------
Total (1,246) (922)
--------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the table above.
e. Commodity-related transactions
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2002
--------------------------------------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
--------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------
Futures 4,104 211 211
-----------------------------------------------------------------------------
Options 1,294 (60) (19)
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
Swaps 275,753 (6,298) (6,298)
-----------------------------------------------------------------------------
Options 77,311 1,998 853
--------------------------------------------------------------------------------
Total (4,148) (5,253)
--------------------------------------------------------------------------------
Notes: 1. Valuation gains (losses) are recognized in the consolidated statement
of operations.
2. Commodities are primarily related to petroleum.
f. Credit derivatives
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2002
--------------------------------------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
Credit default options 998,695 48,917 48,917
-----------------------------------------------------------------------------
Others 97,952 (17,164) (17,164)
--------------------------------------------------------------------------------
Total 31,752 31,752
--------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations.
g. Others
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2002
--------------------------------------------------------------------------------
Notional principal
or contract amount Market value Valuation losses
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
Weather derivatives 393 (24) (8)
--------------------------------------------------------------------------------
Note: Valuation losses are recognized in the consolidated statement of
operations.
-28-
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Derivatives qualified for hedge-accounting
(in billions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of September 30, 2002
------------------------------------------------------------------------------------------
Notional principal Market value Deferred gains Deferred losses Net gains (losses)
or contract amount (A) (B) (A)-(B)
------------------------------------------------------------------------------------------------------------------------------------
Interest rate futures 12,745.2 14.2 79.7 63.5 16.2
------------------------------------------------------------------------------------------------------------------------------------
Interest rate swaps 60,081.9 235.6 645.5 536.3 109.1
------------------------------------------------------------------------------------------------------------------------------------
Other interest rate-related transactions 30,328.2 (2.9) 1.4 0.9 0.5
------------------------------------------------------------------------------------------------------------------------------------
Other 1,285.9 (0.8) 21.2 26.1 (4.9)
------------------------------------------------------------------------------------------------------------------------------------
Total 246.1 748.0 627.0 120.9
------------------------------------------------------------------------------------------------------------------------------------
Notes 1. Derivatives which are accounted for on an accrual basis based on
"Accounting standard for financial instruments" are not included in the
table above.
2. The transactions in the table above are reported on a mark-to-market
basis on the consolidated balance sheet. The valuation differences
which do not correspond to the income/ expenses accruing on hedged
items are deferred as assets/liabilities.
Notional principal by the remaining life of the interest rate swaps above
is as follows.
(in billions of yen)
----------------------------------------------------------------------------------------------------------------------
Due within 1 year Due after 1 year Due after 5 year Total
through 5 years
----------------------------------------------------------------------------------------------------------------------
Receive-fix/pay-floater 17,805.2 18,344.5 1,696.8 37,846.7
----------------------------------------------------------------------------------------------------------------------
Receive-floater/pay-fix 8,362.8 10,846.1 1,561.9 20,770.9
----------------------------------------------------------------------------------------------------------------------
Receive-floater/pay-floater 249.3 1,169.3 45.5 1,464.2
----------------------------------------------------------------------------------------------------------------------
Total 26,417.5 30,360.0 3,304.3 60,081.9
----------------------------------------------------------------------------------------------------------------------
-29-
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Notional principal or contract amount, market value and valuation gains (losses)
on derivatives
a. Interest rate-related transactions
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2001
----------------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
--------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------
Futures 26,951,499 15,790 15,790
-----------------------------------------------------------------------------
Options 11,103,654 3,745 2,359
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
FRAs 1,123,049 (186) (186)
-----------------------------------------------------------------------------
Swaps 225,231,760 110,467 110,467
-----------------------------------------------------------------------------
Others 13,774,569 (13,427) (1,581)
--------------------------------------------------------------------------------
Total 116,388 126,849
--------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the table above.
b. Foreign exchange-related transactions
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2001
------------------------------------------------------------
Notional principal
amount Market value Valuation gains
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
Swaps 8,250,235 76,231 76,231
--------------------------------------------------------------------------------
Notes: 1. Valuation gains are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting and/or
which are applicable to notes 2. are not included in the table above.
2. Currency swaps which are accounted for on an accrual basis are not
included in the table above. Notional principal amount, market value
and valuation gains (losses) on currency swaps which are accounted for
on an accrual basis are as follows:
(in millions of yen)
---------------------------------------------------------------------------
As of September 30, 2001
-------------------------------------------------------------------
Notional principal
amount Market value Valuation gains
---------------------------------------------------------------------------
Swaps 5,376,215 32,033 32,033
---------------------------------------------------------------------------
Other foreign exchange-related transactions such as forward exchange
contracts and currency options, whose valuation gains (losses) have
been recognized in the consolidated statement of operations, are not
included in the table above.
Notional principal or contract amounts of such foreign
exchange-related transactions are as follows:
(in millions of yen)
---------------------------------------------------------------
As of September 30, 2001
-------------------------------------
Notional principal or contract amount
---------------------------------------------------------------
Exchange-traded
------------------------------------------------------------
Futures 14,711
---------------------------------------------------------------
Over-the-counter
------------------------------------------------------------
Forward contracts 65,360,880
------------------------------------------------------------
Options 7,181,045
---------------------------------------------------------------
-30-
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
c. Equity-related transactions
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2001
-----------------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
--------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------
Futures 125,163 726 726
-----------------------------------------------------------------------------
Options 20,406 490 63
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
Options 410,010 (7,794) (5,940)
-----------------------------------------------------------------------------
Swaps 14,480 389 389
--------------------------------------------------------------------------------
Total (6,188) (4,760)
--------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations.
d. Bond-related transactions
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2001
--------------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
--------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------
Futures 1,266,045 (78) (78)
-----------------------------------------------------------------------------
Options 167,673 (327) 133
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
Options 516,256 550 (87)
--------------------------------------------------------------------------------
Total 144 (33)
--------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the table above.
e. Commodity-related transactions
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2001
---------------------------------------------------------
Notional principal Valuation
or contract amount Market value gains (losses)
--------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------
Futures 8,304 87 87
-----------------------------------------------------------------------------
Options 25,083 (164) (43)
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
Swaps 281,731 1,294 1,294
-----------------------------------------------------------------------------
Options 242,365 2,708 (126)
--------------------------------------------------------------------------------
Total 3,926 1,213
--------------------------------------------------------------------------------
Notes: 1. Valuation gains (losses) are recognized in the consolidated statement
of operations.
2. Commodities are primarily related to petroleum.
f. Others
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2001
-----------------------------------------------------
Notional principal
or contract amount Market value Valuation gains
--------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------
Credit default options 842,407 63,442 63,442
-----------------------------------------------------------------------------
Weather derivatives 300 (0) 23
-----------------------------------------------------------------------------
Others 101,568 2,981 2,981
--------------------------------------------------------------------------------
Total 66,423 66,447
--------------------------------------------------------------------------------
Note: Valuation gains are recognized in the consolidated statement of
operations.
-31-
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
Notional principal or contract amount, market value and valuation gains (losses)
on derivatives
a. Interest rate-related transactions
(in millions of yen)
-------------------------------------------------------------------------------------------------------------------
As of March 31, 2002
---------------------------------------------------------------------
Notional principal with maturity Valuation
or contract amount of over 1 year Market value gains (losses)
-------------------------------------------------------------------------------------------------------------------
Exchange-traded
----------------------------------------------------------------------------------------------------------------
sell 9,945,795 1,330,217 (78,510) (78,510)
Futures ------------------------------------------------------------------------------------------------
buy 11,588,263 1,593,247 70,874 70,874
----------------------------------------------------------------------------------------------------------------
sell 4,949,268 7,955 (5,837) 1,306
Options ------------------------------------------------------------------------------------------------
buy 5,307,916 23,784 8,993 (2,794)
-------------------------------------------------------------------------------------------------------------------
Over-the-counter
---------------------------------------------------------------------------------------------------------------
sell 201,257 1,333 (97) (97)
FRAs ------------------------------------------------------------------------------------------------
buy 190,629 42,136 (909) (909)
-------------------------------------------------------------------------------------------------------------------
receive-fix/pay-floater 112,006,008 74,856,804 3,319,807 3,319,807
------------------------------------------------------------------------------------------------
receive-floater/pay-fix 113,791,761 74,335,547 (3,220,413) (3,220,413)
------------------------------------------------------------------------------------------------
Swaps receive-floater/pay-float 4,987,418 4,144,936 (3,115) (3,115)
------------------------------------------------------------------------------------------------
receive-fix/pay-fix 289,172 176,939 (580) (580)
---------------------------------------------------------------------------------------------------------------
sell 7,329,000 4,488,747 (77,834) (15,669)
Others ------------------------------------------------------------------------------------------------
buy 5,993,942 4,073,644 79,061 21,722
-------------------------------------------------------------------------------------------------------------------
Total 91,439 91,619
-------------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not included
in the table above.
2. Market values of exchange-traded transactions are based on closing prices on
the Tokyo International Financial Future Exchange, etc. Market values of
over-the-counter transactions are based on discounted cash flow method,
option pricing models, etc.
b. Foreign exchange-related transactions
(in millions of yen)
-----------------------------------------------------------------------------------------------
As of March 31, 2002
-----------------------------------------------------------------------
Notional principal with maturity
amount of over 1 year Market value Valuation losses
-----------------------------------------------------------------------------------------------
Over-the-counter
--------------------------------------------------------------------------------------------
Swaps 9,241,514 6,560,260 (69,519) (69,519)
-----------------------------------------------------------------------------------------------
Notes:
1. Valuation losses are recognized in the consolidated statement of operations.
Derivatives which qualify for hedge-accounting and/or which are applicable to
note 3. are not included in the table above.
2. Market values are based on the discounted cash flow method.
3. Currency swaps which are accounted for on an accrual basis are not included
in the table above. Notional principal amount, market value and valuation
gains (losses) on currency swaps which are accounted for on an accrual basis
are as follows:
(in millions of yen)
----------------------------------------------------------------
As of March 31, 2002
------------------------------------------------------
Notional principal
amount Market value Valuation losses
----------------------------------------------------------------
Swaps 6,686,242 (99,647) (99,647)
----------------------------------------------------------------
Other foreign exchange-related transactions such as forward exchange
contracts and currency options, whose valuation gains (losses) have been
recognized in the statement of operations, are not included in the table
above.
Notional principal or contract amounts of such foreign exchange-related are
as follows:
(in millions of yen)
----------------------------------------------------------------
As of March 31, 2002
--------------------
Notional principal
or contract amount
----------------------------------------------------------------
Exchange-traded
-------------------------------------------------
sell 790
Futures ----------------------------------
buy 1,314
----------------------------------------------------------------
Over-the-counter
-------------------------------------------------
Forward sell 33,994,202
------------------------------------
contracts buy 35,862,732
-------------------------------------------------
sell 4,188,375
Options ------------------------------------
buy 4,072,059
----------------------------------------------------------------
-32-
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
c. Equity-related transactions
(in millions of yen)
--------------------------------------------------------------------------------------------------------------
As of March 31, 2002
----------------------------------------------------------------------
Notional principal with maturity Valuation
or contract amount of over 1 year Market value gains (losses)
--------------------------------------------------------------------------------------------------------------
Exchange-traded
------------------------------------------------------------------------------------------------------------
sell 166,279 - 2,112 2,112
Futures --------------------------------------------------------------------------------------------
buy 6,134 - 37 37
------------------------------------------------------------------------------------------------------------
sell 6,692 - (37) 20
Options --------------------------------------------------------------------------------------------
buy 8,512 - 232 53
--------------------------------------------------------------------------------------------------------------
Over-the-counter
------------------------------------------------------------------------------------------------------------
sell 223,122 104,338 (42,827) (15,309)
Options --------------------------------------------------------------------------------------------
buy 231,491 102,129 39,008 10,718
------------------------------------------------------------------------------------------------------------
receive-index swaps 2,422 - (95) (95)
Swaps --------------------------------------------------------------------------------------------
pay-index swaps 11,782 4,260 379 379
--------------------------------------------------------------------------------------------------------------
Total (1,190) (2,084)
--------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains (losses) are recognized in the consolidated statement of
operations.
2. Market values of exchange-traded transactions are based on closing prices on
the Osaka Stock Exchange, etc.
Market values of over-the-counter transactions are based on discounted cash
flow method, option pricing models, etc.
d. Bond-related transactions
(in millions of yen)
--------------------------------------------------------------------------------------------------------
As of March 31, 2002
---------------------------------------------------------------------------
Notional principal with maturity Valuation
or contract amount of over 1 year Market value gains (losses)
--------------------------------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------------------------------
sell 460,102 20,390 (672) (672)
Futures --------------------------------------------------------------------------------------
buy 425,757 12,045 (18) (18)
-----------------------------------------------------------------------------------------------------
sell 493,731 - (982) 50
Options --------------------------------------------------------------------------------------
buy 228,111 14,811 521 (4)
--------------------------------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------------------------------
sell 105,600 - (733) 119
Options --------------------------------------------------------------------------------------
buy 25,785 - 78 10
--------------------------------------------------------------------------------------------------------
Total (1,808) (515)
--------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not included
in the table above.
2. Market values of exchange-traded transactions are based on closing prices on
the Tokyo Stock Exchange, etc.
Market values of over-the-counter transactions are based on option pricing
models, etc.
e. Commodity-related transactions
(in millions of yen)
-----------------------------------------------------------------------------------------------------------------
As of March 31, 2002
----------------------------------------------------------------------
Notional principal with maturity Valuation
or contract amount of over 1 year Market value gains (losses)
-----------------------------------------------------------------------------------------------------------------
Exchange-traded
--------------------------------------------------------------------------------------------------------------
sell 2,631 326 220 220
Futures ---------------------------------------------------------------------------------------------
buy 5,193 2,415 (196) (196)
-----------------------------------------------------------------------------------------------------------------
sell 2,883 - (296) 4
Options ---------------------------------------------------------------------------------------------
buy 2,003 - 56 (56)
-----------------------------------------------------------------------------------------------------------------
Over-the-counter
--------------------------------------------------------------------------------------------------------------
receive-index swaps 166,734 58,269 (3,163) (3,163)
Swaps ---------------------------------------------------------------------------------------------
pay-index swaps 154,168 42,168 (7,786) (7,786)
-----------------------------------------------------------------------------------------------------------------
sell 64,758 6,506 (3,332) (140)
Options ---------------------------------------------------------------------------------------------
buy 77,370 9,992 4,681 (943)
-----------------------------------------------------------------------------------------------------------------
Total (9,817) (12,063)
-----------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains (losses) are recognized in the consolidated statement of
operations.
2. Market values of exchange-traded transactions are based on closing prices on
the International Petroleum Exchange, etc.
Market values of over-the-counter transactions are based on the price of the
commodities, contract terms, and other factors comprising the contract of
transactions.
3. Commodities are mainly related to petroleum.
-33-
Mitsubishi Tokyo Financial Group, Inc. and Consolidated Subsidiaries
f. Credit derivatives
(in millions of yen)
-------------------------------------------------------------------------------------------------------------
As of March 31, 2002
-----------------------------------------------------------------------
Notional principal with maturity Valuation
or contract amount of over 1 year Market value gains (losses)
-------------------------------------------------------------------------------------------------------------
Over-the-counter
--------------------------------------------------------------------------------------------------------
sell 373,649 307,792 76,186 76,186
Credit default options --------------------------------------------------------------------------------
buy 534,175 373,215 3,232 3,232
--------------------------------------------------------------------------------------------------------
sell -- -- -- --
Others --------------------------------------------------------------------------------
buy 130,297 16,837 (938) (938)
-------------------------------------------------------------------------------------------------------------
Total 78,480 78,480
-------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains (losses) are recognized in the consolidated statement of
operations.
2. Market values are based on discounted cash flow method, option pricing
models, etc.
3. In the table above, "sell" indicates credit risks assumed, and "buy"
indicates credit risks transferred.
g. Others
(in millions of yen)
-------------------------------------------------------------------------------------------------------------
As of March 31, 2002
------------------------------------------------------------------------------
Notional principal with maturity
or contract amount of over 1 year Market value Valuation gains
-------------------------------------------------------------------------------------------------------------
Over-the-counter
--------------------------------------------------------------------------------------------------------
Weather sell 146 - 8 12
--------------------------------------------------------------------------------------
derivatives buy - - - -
-------------------------------------------------------------------------------------------------------------
Total 8 12
-------------------------------------------------------------------------------------------------------------
Notes:
1. Valuation gains are recognized in the consolidated statement of operations.
2. Market values are based on discounted cash flow method, option pricing
models, etc.
-34-
Interim Non-Consolidated Summary Report
(under Japanese GAAP)
for the Fiscal Year Ending March 31, 2003
Date: November 25, 2002
Company name (code number): Mitsubishi Tokyo Financial Group, Inc. (8306)
(URL http://www.mtfg.co.jp)
Stock Exchange Listings: Tokyo, Osaka, New York, London
Headquarters: Tokyo
Representative: Shigemitsu Miki, President & CEO
For inquiry: Keiichi Riko, Chief Manager - Financial
Policy Division
(Phone) +81-3-3240-8139
Date of resolution of Board of
Directors with respect to the
interim non-consolidated financial
statements: November 25, 2002
Interim dividends policy: Yes
Unit share system: No
1. Non-consolidated financial data for the six months ended September 30, 2002
(1) Operating results
(in millions of yen except per share data and percentages)
-------------------------------------------------------------------------------------------------------------------------
For the six months ended September 30,
-------------------------------------- For the year ended
2002 2001 March 31,2002
-------------------------------------------------------------------------------------------------------------------------
Operating income 24,135 3,858 72,544
Change from corresponding period of the previous year 525.6% --
-------------------------------------------------------------------------------------------------------------------------
Operating profit 22,407 1,179 68,378
Change from corresponding period of the previous year -- --
-------------------------------------------------------------------------------------------------------------------------
Ordinary profit 22,320 1,014 68,114
Change from corresponding period of the previous year -- --
-------------------------------------------------------------------------------------------------------------------------
Net income 22,053 584 67,871
Change from corresponding period of the previous year -- --
-------------------------------------------------------------------------------------------------------------------------
Net income per common share 3,115.04 101.86 10,367.98
-------------------------------------------------------------------------------------------------------------------------
Notes:
1. Average number of shares outstanding:
For the six months ended September 30, 2002: (common stock) 5,741,887 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
For the six months ended September 30, 2001: (common stock) 5,742,334 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
For the year ended March 31, 2002: (common stock) 5,742,295 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
2. Changes in accounting policy: No
-35-
(2) Payment of dividends
(in yen)
------------------------------------------------------------------------------------------------------------------------------
For the six months ended September 30, For the year ended March 31,
-------------------------------------------------------------------------------------------
2002 2001 2002
-------------------------------------------------------------------------------------------
Preferred Preferred Preferred Preferred Preferred Preferred
Common stock- stock- Common stock- stock- Common stock- stock-
stock class 1 class 2 stock class 1 class 2 stock class 1 class 2
------------------------------------------------------------------------------------------------------------------------------
Interim dividends per share 0 41,250 8,100 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total dividends per share
paid for the fiscal year -- -- -- -- -- -- 6,000 82,500 16,200
------------------------------------------------------------------------------------------------------------------------------
(3) Balance sheet highlights
(in millions of yen except per share data and percentages)
--------------------------------------------------------------------------------------------------------
As of September 30,
------------------------------- As of March 31,
2002 2001 2002
--------------------------------------------------------------------------------------------------------
Total assets 4,281,610 4,249,679 4,301,963
--------------------------------------------------------------------------------------------------------
Shareholders' equity 4,031,618 3,985,734 4,052,733
--------------------------------------------------------------------------------------------------------
Shareholders' equity as a percentage
of total liabilities and shareholders' equity 94.2% 93.8% 94.2%
--------------------------------------------------------------------------------------------------------
Shareholders' equity per common share 624,079.75 616,731.32 628,435.11
--------------------------------------------------------------------------------------------------------
Notes:
1. Number of shares outstanding as of:
September 30, 2002: (common stock) 5,741,655 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
September 30, 2001: (common stock) 5,742,427 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
March 31, 2002: (common stock) 5,742,093 shares
(preferred stock-class 1) 81,400 shares
(preferred stock-class 2) 100,000 shares
2. Number of treasury stocks outstanding as of:
September 30, 2002: 811 shares
September 30, 2001: 40 shares
March 31, 2002: 374 shares
2. Earning projections for the fiscal year ending March 31, 2003
(in millions of yen except per share data)
---------------------------------------------------------------------------------------------------
Operating income Ordinary profit Net income
---------------------------------------------------------------------------------------------------
26,000 22,000 22,000
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Dividends per share to be paid Dividends per share to be paid
for the six months ending March for the fiscal year ending March Net income per common share
31, 2003 31, 2003
---------------------------------------------------------------------------------------------------
Common stock 4,000 Common stock 4,000
--------------------------------------------------------------------
Preferred stock-class 1 41,250 Preferred stock-class 1 82,500 2,379.89
--------------------------------------------------------------------
Preferred stock-class 2 8,100 Preferred stock-class 2 16,200
---------------------------------------------------------------------------------------------------
-36-
(Reference)
Formulas for computing ratios for the six months ended September 30, 2002 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 *
Since the current interim fiscal year, MTFG has adopted Financial Accounting
Standard No.2 "Accounting Standard for Earning per Share" issued by the
Accounting Standards Board of Japan (the "ASBJ") on September 25, 2002 and
Financial Accounting Standards Implementation Guidance No.4 "Accounting Standard
for Earning per Share" issued by the ASBJ on September 25, 2002.
Formula for computing projected earning ratio for the fiscal year ending March
31, 2003 is as follows.
Projected net income per common share
Projected net income - Projected total dividends on preferred stock
----------------------------------------------------------------------
Number of common stock at end of period *
* excluding treasury stock
**number of preferred stock at end of period x issue price + total dividends
on preferred stock
The foregoing forward-looking statements may be materially affected by
regulatory developments or changes in governmental policies, laws,
regulations, voluntary code of practice and interpretations, including
those anticipated to be announced soon in Japan, changes in the level
of Japanese stock prices, the occurrence of material new corporate
bankruptcies, further developments in the Japanese or world economic
environment, and other factors outside MTFG's control. These forward-
looking statements are not guaranties of future performance, and
actual results may differ materially. Please see our latest annual
report for additional information regarding the risks in our business.
-37-
Mitsubishi Tokyo Financial Group, Inc.
Non-Consolidated Balance Sheets
---------------------------------------------------------------------------------------------------------------------------------
As of September 30, As of September 30, As of March 31,
(in millions of yen) 2001 2002 2002
---------------------------------------------------------------------------------------------------------------------------------
Assets:
Current assets:
Cash and bank deposits 219 26,656 39,212
Convertible bonds due from subsidiary - 245,123 -
Other 2,526 6,962 16,088
Total current assets 2,746 0.1% 278,743 6.5% 55,300 1.3%
Fixed assets:
Premises and equipment 494 407 439
Intangible assets 458 383 415
Investments and other assets 4,244,432 4,000,873 4,244,431
Investments in subsidiaries 4,000,070 4,000,070 4,000,070
Convertible bonds due from subsidiary 243,924 - 243,924
Other 437 802 436
Total fixed assets 4,245,385 99.9% 4,001,663 93.5% 4,245,287 98.7%
Deferred charges 1,547 0.0% 1,203 0.0% 1,375 0.0%
---------------------------------------------------------------------------------------------------------------------------------
Total assets 4,249,679 100.0% 4,281,610 100.0% 4,301,963 100.0%
---------------------------------------------------------------------------------------------------------------------------------
Liabilities:
Current liabilities:
Short-term bank loans 14,543 - -
Current portion of convertible bonds - 245,123 -
Reserve 86 77 75
Other 3,352 2,767 3,192
Total current liabilities 17,982 0.4% 247,969 5.8% 3,267 0.1%
Long-term liabilities:
Convertible bonds 243,924 - 243,924
Other 2,038 2,022 2,038
Total long-term liabilities 245,962 5.8% 2,022 0.0% 245,962 5.7%
--------------------------------------------------------------------------------------------------------------------------------
Total liabilities 263,945 6.2% 249,991 5.8% 249,230 5.8%
--------------------------------------------------------------------------------------------------------------------------------
Shareholders' equity:
Capital stock 1,146,500 27.0% 1,146,500 26.8% 1,146,500 26.6%
Capital surplus:
Additional paid-in capital 2,838,692 2,238,692 2,838,692
Other capital surplus - 600,000 -
Total capital surplus 2,838,692 66.8% 2,838,692 66.3% 2,838,692 66.0%
Retained earnings:
Unappropriated 584 47,137 67,871
Total retained earnings 584 0.0% 47,137 1.1% 67,871 1.6%
--------------------------------------------------------------------------------------------------------------------------------
Total 3,985,777 93.8% 4,032,330 94.2% 4,053,064 94.2%
Less treasury stock (42) (0.0)% (711) (0.0)% (331) (0.0)%
--------------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 3,985,734 93.8% 4,031,618 94.2% 4,052,733 94.2%
--------------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity 4,249,679 100.0% 4,281,610 100.0% 4,301,963 100.0%
=================================================================================================================================
See Notes to Non-Consolidated Financial Statements.
-38-
Mitsubishi Tokyo Financial Group, Inc.
Non-Consolidated Statements of Income
--------------------------------------------------------------------------------------------------------------------------
For the six months For the six months For the year
ended ended ended
(in millions of yen) September 30, 2001 September 30, 2002 March 31, 2002
--------------------------------------------------------------------------------------------------------------------------
Operating income 3,858 100.0% 24,135 100.0% 72,544 100.0%
Operating expenses 2,678 69.4% 1,727 7.2% 4,166 5.7%
Operating profit 1,179 30.6% 22,407 92.8% 68,378 94.3%
--------------------------------------------------------------------------------------------------------------------------
Non-operating income 3,292 85.3% 3,592 14.8% 7,374 10.1%
Non-operating expenses 3,457 89.6% 3,679 15.2% 7,638 10.5%
Ordinary profit 1,014 26.3% 22,320 92.4% 68,114 93.9%
--------------------------------------------------------------------------------------------------------------------------
Special losses - - 269 1.1% - -
--------------------------------------------------------------------------------------------------------------------------
Income before income taxes 1,014 26.3% 22,050 91.3% 68,114 93.9%
--------------------------------------------------------------------------------------------------------------------------
Income taxes-current 526 0 306
Income taxes-deferred (97) (4) (63)
Total income taxes 429 11.1% (3) (0.0)% 242 0.3%
---------------------------------------------------------------------------------------------------------------------------
Net income 584 15.2% 22,053 91.3% 67,871 93.6%
--------------------------------------------------------------------------------------------------------------------------
Unappropriated retained earnings brought forward - 25,083 -
Unappropriated retained earnings at end of period 584 47,137 67,871
--------------------------------------------------------------------------------------------------------------------------
See Notes to Non-Consolidated Financial Statements.
-39-
Notes to the Non-Consolidated Financial Statements for the six months ended
September 30, 2002
The accompanying Non-Consolidated Financial Statements are compiled as
required by the Securities and Exchange Law of Japan and in conformity with
accounting principles and practices generally accepted in Japan, which are
different in certain respects as compared to the application and disclosure
requirements of International Accounting Standards. The Non-Consolidated
Financial Statements are not intended to present the financial position and the
results of operations in accordance with accounting principles and practices
generally accepted in countries and jurisdictions other than Japan. For the
convenience of readers, the presentation is modified in certain respects from
the original Japanese report.
Summary of significant accounting policies
1. Investments
Investments in subsidiaries and non-marketable available-for-sale
securities 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 at rates principally based on the following
estimated useful lives:
Leasehold improvements 3 years to 50 years
Equipment and furniture 3 years to 20 years
Amortization for intangible assets is computed using the straight-line
method over estimated useful lives. Costs of computer software developed or
obtained for internal use are deferred and amortized using the
straight-line method over the estimated useful lives of 5 years.
3. Reserve
A reserve for employees' bonuses is provided for the payment of employees'
bonuses based on estimated amounts of the future payments attributed to the
current term.
4. Consumption taxes
The National Consumption Tax and the Local Consumption Tax are excluded
from transaction amounts.
Additional information
Since the current interim fiscal year, MTFG has adopted Financial
Accounting Standard No.1 "Accounting Standard for Treasury Stock and Reversal of
Legal Reserves" issued by the Accounting Standards Board of Japan on February
21, 2002. There is no effect to profit or loss during the current interim fiscal
year attributable to this change.
Notes related to the Non-Consolidated Balance Sheet as of September 30, 2002 are
as follows:
1. The amounts are presented in millions of yen and are rounded down to the
nearest million.
2. Accumulated depreciation on premises and equipment totals(Yen)101 million.
3. Mitsubishi Tokyo Financial Group, Inc. (the "MTFG") guarantees Exchangeable
Guaranteed Notes (the "Notes") of(Yen)245,123 million issued by MBL
International Finance (Bermuda) Trust, which is a subsidiary of the MTFG.
(The Notes are exchangeable for common shares of the MTFG.)
Notes related to the Non-Consolidated Statement of Income for the six months
ended September 30, 2002 are as follows:
1. The amounts are presented in millions of yen and are rounded down to the
nearest million.
2. Non-operating income includes interest on securities of (Yen)3,496 million.
3. Non-operating expense includes interest on convertible bonds of (Yen)3,496
million.
4. Depreciation expense for premises and equipment was (Yen)43 million.
Amortization expense for intangible assets was (Yen)46 million.
-40-
MTFG
---------------------------------------------
Selected Interim Financial Information
under Japanese GAAP
For the Fiscal Year Ending March 31, 2003
---------------------------------------------
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, 2003
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. Allowance for Loan Losses [Consolidated], [Trust] .................... 6
3. Coverage Ratio against Risk-Monitored Loans [Consolidated] .................... 6
4. Disclosed Claims under the Financial Reconstruction Law ("FRL") [Total of the 2 Banks*] .................... 7
5. Status of Secured Coverage on Disclosed Claims under the FRL [Total of the 2 Banks*] .................... 7
6. Progress in the Disposal of Problem Assets [Total of the 2 Banks*] .................... 8
7. Classification of Loans by Type of Industry [Total of the 2 Banks*] .................... 10
[Trust] .................... 11
8. Foreign Loans [Total of the 2 Banks*] .................... 12
9. Loans and deposits [Total of the 2 Banks*] .................... 13
10. Domestic deposits [Total of the 2 Banks*] .................... 13
11. Number of Employees [Total of the 2 Banks*] .................... 13
12. Number of Offices [Total of the 2 Banks*] .................... 13
13. Employees' Retirement Benefits [Consolidated] .................... 14
14. Earning Projections for the Fiscal Year ending March 31, 2003 [Consolidated] .................... 15
[Non-Consolidated] .................... 15
Notes: * "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. In addition, figures of The Mitsubishi Trust
and Banking Corporation as of September 30, 2001 include the figures of
Nippon Trust Bank Limited.
Mitsubishi Tokyo Financial Group, Inc.
1 Interim Consolidated Financial Highlights under Japanese GAAP
for the Fiscal Year Ending March 31, 2003
1. Financial Results
(in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
Six months ended Increase/ Six months ended
September 30, (Decrease) September 30,
2002 (A) (A) - (B) 2001 (B)
------------------------------------------------------------------------------------------------------------------------------------
Gross profits 846,044 (10,651) 856,695
------------------------------------------------------------------------------------------------------------------------------------
Net interest income 522,215 (23,732) 545,948
------------------------------------------------------------------------------------------------------------------------------------
Trust fees 47,957 (8,481) 56,438
------------------------------------------------------------------------------------------------------------------------------------
Credit costs for trust accounts (1) (4,735) 5,606 (10,341)
------------------------------------------------------------------------------------------------------------------------------------
Net fees and commissions 168,215 2,805 165,410
------------------------------------------------------------------------------------------------------------------------------------
Net trading profits 43,734 21,230 22,503
------------------------------------------------------------------------------------------------------------------------------------
Net other business income 63,921 (2,473) 66,394
------------------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on debt securities 18,012 (15,661) 33,673
------------------------------------------------------------------------------------------------------------------------------------
General and administrative expenses 482,476 1,759 480,717
------------------------------------------------------------------------------------------------------------------------------------
Net business profits before credit costs for trust accounts 368,302 (18,016) 386,319
and provision for formula allowance for loan losses
------------------------------------------------------------------------------------------------------------------------------------
Provision for formula allowance for loan losses(2) 74,093 55,481 18,611
------------------------------------------------------------------------------------------------------------------------------------
Net business profits* 289,474 (67,891) 357,366
------------------------------------------------------------------------------------------------------------------------------------
Net non-recurring gains (losses) (482,774) 164,661 (647,436)
------------------------------------------------------------------------------------------------------------------------------------
Credit related costs (3) (146,811) 138,136 (284,948)
------------------------------------------------------------------------------------------------------------------------------------
Losses on loan charge-offs (98,758) 8,786 (107,545)
------------------------------------------------------------------------------------------------------------------------------------
Provision for specific allowance for loan losses 3,884 173,815 (169,931)
------------------------------------------------------------------------------------------------------------------------------------
Losses on real estate-collateralized loans sold to the CCPC** (298) 2,581 (2,879)
------------------------------------------------------------------------------------------------------------------------------------
Provision for allowance for loans to specific foreign borrowers 12,753 8,416 4,336
------------------------------------------------------------------------------------------------------------------------------------
Other credit related costs (64,392) (55,464) (8,928)
------------------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on equity securities 242,950) 78,432 (321,382)
------------------------------------------------------------------------------------------------------------------------------------
Gains on sales of equity securities 56,922 (4,294) 61,216
------------------------------------------------------------------------------------------------------------------------------------
Losses on sales of equity securities (98,153) (65,291) (32,861)
------------------------------------------------------------------------------------------------------------------------------------
Losses on write down of equity securities (201,719) 148,018 (349,737)
------------------------------------------------------------------------------------------------------------------------------------
Equity in earnings (loss) of affiliates (6,340) (3,172) (3,167)
------------------------------------------------------------------------------------------------------------------------------------
Other (86,672) (48,734) (37,937)
------------------------------------------------------------------------------------------------------------------------------------
Ordinary loss (193,300) 96,769 (290,070)
------------------------------------------------------------------------------------------------------------------------------------
Net special gains (losses) 12,865 (1,268) 14,133
------------------------------------------------------------------------------------------------------------------------------------
Loss before income taxes and others (180,434) 95,501 (275,936)
------------------------------------------------------------------------------------------------------------------------------------
Income taxes-current 31,920 (19,642) 51,562
------------------------------------------------------------------------------------------------------------------------------------
Income taxes-deferred (27,033) 212,390 (239,423)
------------------------------------------------------------------------------------------------------------------------------------
Minority interest 2,777 (5,981) 8,759
------------------------------------------------------------------------------------------------------------------------------------
Net loss (188,098) (91,264) (96,834)
------------------------------------------------------------------------------------------------------------------------------------
Notes:
* 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 - Intercompany transactions
** CCPC stands for the Cooperative Credit Purchasing Company, Limited.
(Reference)
------------------------------------------------------------------------------------------------------------------------------------
Total credit costs (1)+(2)+(3) 225,640 (88,261) 313,901
------------------------------------------------------------------------------------------------------------------------------------
Number of consolidated subsidiaries 192 8 184
------------------------------------------------------------------------------------------------------------------------------------
Number of affiliated companies accounted for by the equity method 33 (4) 37
------------------------------------------------------------------------------------------------------------------------------------
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 loses)
-----------------------------------------------------------------------------------------------------------------------------
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 loses)
-----------------------------------------------------------------------------------------------------------------------------
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, 2002 As of September 30, 2001 As of March 31, 2002
-----------------------------------------------------------------------------------------------------
Valuation difference Valuation difference Valuation difference
---------------- ---------------- ----------------
Gains Losses Gains Losses Gains Losses
-------------------
(A) (A) - (B) (A) - (C) (B) (C)
------------------------------------------------------------------------------------------------------------------------------------
Debt securities being held
to maturity 15,117 (4,487) 1,589 15,196 79 19,604 19,938 333 13,527 13,799 271
-----------------------------------------------------------------------------------------------------------------------------------
Securities available for sale (17,406) 11,911 (156,249) 652,940 670,347 (29,318) 740,003 769,321 138,842 743,925 605,083
----------------------------------------------------------------------------------------------------------------------------------
Domestic equity securities (221,942) (38,179) (293,397) 343,679 565,621 (183,762) 511,197 694,960 71,454 551,983 480,528
----------------------------------------------------------------------------------------------------------------------------------
Domestic bonds 96,159 15,098 16,457 97,420 1,261 81,060 82,879 1,819 79,702 83,691 3,989
----------------------------------------------------------------------------------------------------------------------------------
Other 108,376 34,992 120,690 211,840 103,463 73,383 145,925 72,542 (12,314) 108,250 120,565
----------------------------------------------------------------------------------------------------------------------------------
Total (2,289) 7,424 (154,659) 668,136 670,426 (9,713) 759,941 769,655 152,370 757,725 605,355
----------------------------------------------------------------------------------------------------------------------------------
Domestic equity securities (221,942) (38,179) (293,397) 343,679 565,621 (183,762) 511,197 694,960 71,454 551,983 480,528
----------------------------------------------------------------------------------------------------------------------------------
Domestic bonds 106,672 15,066 18,097 107,933 1,261 91,605 93,471 1,866 88,574 92,647 4,072
----------------------------------------------------------------------------------------------------------------------------------
Other 112,980 30,536 120,639 216,523 103,543 82,443 155,272 72,829 (7,659) 113,093 120,753
------------------------------------------------------------------------------------------------------------------------------------
(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 interim-period end Market Value Valuation Gains
--------------------------------------------------------------------------------------------------
September 30, 2002 203,183 209,713 6,529
--------------------------------------------------------------------------------------------------
Note: A fair value is given where a fair value can be calculated for a
market-value equivalent.
B. Valuation Gains of Derivative Transaction: 1,081 millions of yen
Loan Trusts
A. Market Value of Securities (in millions of yen)
--------------------------------------------------------------------------------------------------
Trust Assets at interim-period end Market Value Valuation Gains
--------------------------------------------------------------------------------------------------
September 30, 2002 233,107 259,738 26,631
--------------------------------------------------------------------------------------------------
Note: A fair value is given where a fair value can be calculated for a
market-value equivalent.
B. Valuation Gains of Derivative Transaction: 10,952 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)
------------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
(Preliminary basis)
------------------------------------------------------------------------------------------------------------------------------------
(1) Risk-adjusted capital ratio 10.49% 0.18% 0.18% 10.31% 10.30%
(2) Tier I capital 3,053.1 (140.2) (128.0) 3,193.3 3,181.1
(3) Tier II capital includable as
qualifying capital 2,942.8 (107.2) (202.4) 3,050.1 3,145.3
i) The amount of unrealized gains on investment
securities, includable as qualifying capital - - (61.2) - 61.2
ii) The amount of land revaluation excess
includable at qualifying capital 144.0 (9.3) (2.2) 153.4 146.2
iii) Subordinated debt 2,110.2 (258.3) (183.7) 2,368.6 2,294.0
(4) Tier III capital includable as
qualifying capital 29.8 29.8 29.8 - -
(5) Deductions from total qualifying
capital 23.7 (80.4) (82.2) 104.2 105.9
(6) Total qualifying capital (2)+(3)+(4)-(5) 6,002.0 (137.1) (218.4) 6,139.2 6,220.5
(7) Risk-adjusted assets 57,190.3 (2,352.4) (3,145.5) 59,542.7 60,335.8
------------------------------------------------------------------------------------------------------------------------------------
4. Return on Equity
(%)
--------------------------------------------------------------------------------
Six months ended Increase/ Six months ended
September 30, (Decrease) September 30,
2002 (A) (A) - (B) 2001 (B)
--------------------------------------------------------------------------------
ROE * (14.45) (7.69) (6.76)
--------------------------------------------------------------------------------
Note: * ROE is computed as follows:
(Net income - Dividends on preferred stocks) x 2
------------------------------------------------------------------------- x 100
{(Shareholders' equity at beginning of period - Number of preferred stocks
at beginning of period x Issue price - Land revaluation excess at beginning
of period - Unrealized gains on securities available for sale at beginning
of period)
+ (Shareholders' equity at end of period - Number of preferred stocks at
end of period x Issue price - Land revaluation excess at end of period -
Unrealized gains on securities available for sale at end of period)} / 2
3
Mitsubishi Tokyo Financial Group, Inc.
2 Loan Portfolio
1. Risk-Monitored Loans
(Nonaccrual loans, accruing loans contractually past due 3 months or more
and restructured loans)
[Consolidated]
(in millions of yen)
------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
----------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 110,961 (30,856) (36,994) 141,817 147,955
----------------------------------------------------------------------------------------------------------------------
Past due loans 1,549,602 (668,353) (447,907) 2,217,956 1,997,510
----------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 13,970 (4,490) (9,069) 18,460 23,039
----------------------------------------------------------------------------------------------------------------------
Restructured loans 1,800,590 (221,022) (77,521) 2,021,612 1,878,111
----------------------------------------------------------------------------------------------------------------------
Total 3,475,124 (924,722) (571,493) 4,399,847 4,046,618
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Loans and bills discounted 46,961,813 108,488 (2,100,982) 46,853,324 49,062,795
------------------------------------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
----------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 0.23% (0.06)% (0.06)% 0.30% 0.30%
----------------------------------------------------------------------------------------------------------------------
Past due loans 3.29% (1.43)% (0.77)% 4.73% 4.07%
----------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.02% (0.00)% (0.01)% 0.03% 0.04%
----------------------------------------------------------------------------------------------------------------------
Restructured loans 3.83% (0.48)% 0.00% 4.31% 3.82%
----------------------------------------------------------------------------------------------------------------------
Total 7.39% (1.99)% (0.84)% 9.39% 8.24%
------------------------------------------------------------------------------------------------------------------------
[Trust accounts]
(in millions of yen)
------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
----------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 10,129 2,540 1,709 7,589 8,419
----------------------------------------------------------------------------------------------------------------------
Past due loans 6,445 (11,824) (5,570) 18,270 12,016
----------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 1,041 (32) (58) 1,074 1,100
----------------------------------------------------------------------------------------------------------------------
Restructured loans 41,033 (3,850) (3,204) 44,884 44,237
----------------------------------------------------------------------------------------------------------------------
Total 58,650 (13,168) (7,122) 71,818 65,773
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Loans and bills discounted 968,867 (119,811) (154,801) 1,088,679 1,123,669
------------------------------------------------------------------------------------------------------------------------
[Consolidated and Trust accounts]
(in millions of yen)
------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
----------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 121,090 (28,315) (35,284) 149,406 156,374
----------------------------------------------------------------------------------------------------------------------
Past due loans 1,556,048 (680,178) (453,478) 2,236,226 2,009,526
----------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 15,012 (4,523) (9,127) 19,535 24,139
----------------------------------------------------------------------------------------------------------------------
Restructured loans 1,841,623 (224,873) (80,725) 2,066,497 1,922,349
----------------------------------------------------------------------------------------------------------------------
Total 3,533,775 (937,890) (578,616) 4,471,665 4,112,391
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Loans and bills discounted 47,930,681 (11,322) (2,255,784) 47,942,003 50,186,465
------------------------------------------------------------------------------------------------------------------------
4
Mitsubishi Tokyo Financial Group, Inc.
Classification of risk-monitored Loans
Classification by geographic area
[Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------------------
Domestic* 3,113,436 (980,450) (590,553) 4,093,887 3,703,990
---------------------------------------------------------------------------------------------------------------------------------
Overseas* 361,687 55,727 19,059 305,959 342,628
----------------------------------------------------------------------------------------------------------------------------
Asia 83,561 (41,867) (42,991) 125,428 126,553
-----------------------------------------------------------------------------------------------------------------------
Indonesia 31,566 (14,226) (9,963) 45,793 41,530
Thailand 29,616 1,490 (10,848) 28,126 40,465
Hong Kong 2,581 (17,375) (8,908) 19,957 11,490
Other 19,796 (11,755) (13,271) 31,552 33,067
----------------------------------------------------------------------------------------------------------------------------
United States of America 152,012 16,730 557 135,282 151,454
Other 126,113 80,865 61,493 45,248 64,619
---------------------------------------------------------------------------------------------------------------------------------
Total 3,475,124 (924,722) (571,493) 4,399,847 4,046,618
---------------------------------------------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
[Trust accounts] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------------------
Domestic 58,650 (13,168) (7,122) 71,818 65,773
---------------------------------------------------------------------------------------------------------------------------------
Classification by type of industry of borrowers
[Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------------------
Domestic* 3,113,436 (980,450) (590,553) 4,093,887 3,703,990
----------------------------------------------------------------------------------------------------------------------------
Manufacturing 414,974 (33,174) (31,537) 448,148 446,511
Construction 345,815 (33,647) (48,405) 379,462 394,220
Wholesale, Retail and Restaurant 623,715 (94,053) (34,944) 717,768 658,660
Banks and other financial institutions 82,811 (61,015) (10,980) 143,827 93,792
Real estate 910,487 (559,127) (350,621) 1,469,614 1,261,108
Services 372,719 (159,679) (73,438) 532,398 446,157
Other industries 109,964 (14,856) (17,686) 124,821 127,651
Consumer 252,949 (24,895) (22,936) 277,844 275,885
---------------------------------------------------------------------------------------------------------------------------------
Overseas* 361,687 55,727 19,059 305,959 342,628
----------------------------------------------------------------------------------------------------------------------------
Banks and other financial institutions 9,055 (2,286) (16,605) 11,341 25,660
Commercial and industrial 301,384 20,891 (5,045) 280,493 306,429
Other 51,248 37,122 40,709 14,125 10,538
---------------------------------------------------------------------------------------------------------------------------------
Total 3,475,124 (924,722) (571,493) 4,399,847 4,046,618
---------------------------------------------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
[Trust accounts] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------------------
Domestic 58,650 (13,168) (7,122) 71,818 65,773
----------------------------------------------------------------------------------------------------------------------------
Manufacturing 9,426 4,178 2,546 5,248 6,880
Construction 2,999 (616) (99) 3,615 3,098
Wholesale, Retail and Restaurant 3,914 (4,572) (2,510) 8,486 6,425
Banks and other financial institutions - (91) (25) 91 25
Real estate 10,703 (6,461) (3,180) 17,165 13,884
Services 8,958 (3,465) (2,717) 12,423 11,675
Other industries 15,516 (570) (106) 16,087 15,623
Consumer 7,131 (1,568) (1,028) 8,700 8,159
---------------------------------------------------------------------------------------------------------------------------------
Total 58,650 (13,168) (7,122) 71,818 65,773
---------------------------------------------------------------------------------------------------------------------------------
5
Mitsubishi Tokyo Financial Group, Inc.
2. Allowance for Loan Losses
[Consolidated] (in millions of yen)
----------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
----------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses 1,498,277 (157,592) (161,363) 1,655,869 1,659,640
--------------------------------------------------------------------------------------------------------------------------
Formura allowance for loan losses 842,172 87,663 67,622 754,509 774,550
--------------------------------------------------------------------------------------------------------------------------
Specific allowance for loan losses 641,255 (248,311) (216,231) 889,566 857,487
--------------------------------------------------------------------------------------------------------------------------
Allowance for loans to specific
foreign borrowers 14,849 3,055 (12,753) 11,793 27,602
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Reserve for losses on real estate-
collateralized loans sold 2,039 (28,190) (5,536) 30,229 7,575
----------------------------------------------------------------------------------------------------------------------------
[Trust accounts] (in millions of yen)
----------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
----------------------------------------------------------------------------------------------------------------------------
Special internal reserves 11,151 (4,740) (1,953) 15,891 13,104
----------------------------------------------------------------------------------------------------------------------------
Allowance for bad debts 1,089 230 195 858 893
----------------------------------------------------------------------------------------------------------------------------
3. Coverage Ratio against Risk-Monitored Loans
[Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses(I) 1,498,277 (157,592) (161,363) 1,655,869 1,659,640
Risk-monitored loans(II) 3,475,124 (924,722) (571,493) 4,399,847 4,046,618
Coverage ratio(I)/(II) 43.11% 5.47% 2.10% 37.63% 41.01%
------------------------------------------------------------------------------------------------------------------------------
6
Mitsubishi Tokyo Financial Group, Inc.
4. Disclosed Claims under the Financial Reconstruction Law ("FRL")
[Banking and Trust accounts: Total of the 2 Banks] (in millions of yen)
-------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 402,112 (6,058) (16,968) 408,171 419,080
--------------------------------------------------------------------------------------------------------------------
Claims under high risk 1,386,657 (784,821) (546,904) 2,171,479 1,933,561
--------------------------------------------------------------------------------------------------------------------
Claims under close observation 1,886,287 (173,063) (30,551) 2,059,350 1,916,838
--------------------------------------------------------------------------------------------------------------------
Total (1) 3,675,056 (963,944) (594,424) 4,639,001 4,269,481
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
Normal claims 46,231,912 350,199 (1,900,021) 45,881,713 48,131,933
--------------------------------------------------------------------------------------------------------------------
5. 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 Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------
Secured coverage amount (2) 2,801,459 (603,083) (440,595) 3,404,542 3,242,054
----------------------------------------------------------------------------------------------------------------------
Allowance for loan losses 877,778 (188,897) (181,461) 1,066,676 1,059,240
----------------------------------------------------------------------------------------------------------------------
Reserve for financial support to
specific borrowers 250 (275) (187) 526 437
----------------------------------------------------------------------------------------------------------------------
Collateral, guarantees, etc. 1,923,429 (413,910) (258,946) 2,337,340 2,182,375
----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Secured coverage ratio (2)/(1) 76.22% 2.83% 0.29% 73.38% 75.93%
------------------------------------------------------------------------------------------------------------------------
Secured Coverage of each category of Disclosed Claims under the FRL
[Banking and Trust accounts: Total of the 2 Banks] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Reserve for Collectable
financial amount by
support to collateralized Coverage ratio Coverage ratio
Disclosed Allowance for specific and guaranteed [(B)+(C)]/ [(B)+(C)+(D)]/
Category amount(A) loan losses(B) borrowers (C) loans (D) [(A)-(D)] (A)
--------------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and 402,112 30,277 - 371,813 99.92% 99.99%
substantially bankrupt debtors [419,080] [66,821] - [352,254] [99.99%] [99.99%]
--------------------------------------------------------------------------------------------------------------------------------
Claims under high risk 1,386,657 529,788 250 604,902 67.80% 81.84%
[1,933,561] [723,307] [437] [860,703] [67.45%] [81.94%]
--------------------------------------------------------------------------------------------------------------------------------
Claims under close observation 1,886,287 317,713 - 946,714 33.81% 67.03%
[1,916,838] [269,112] - [969,417] [28.40%] [64.61%]
--------------------------------------------------------------------------------------------------------------------------------
Sub total (1) 3,675,056 877,778 250 1,923,429 50.12% 76.22%
[4,269,481] [1,059,240] [437] [2,182,375] [50.77%] [75.93%]
--------------------------------------------------------------------------------------------------------------------------------
Normal claims 46,231,912
[48,131,933]
--------------------------------------------------------------------------------------------------------------------------------
Total (2) 49,906,969
[52,401,415]
--------------------------------------------------------------------------------------------------------------------------------
Sub total (1)/Total (2) 7.36%
[8.14%]
--------------------------------------------------------------------------------------------------------------------------------
Note: The upper figures are as of September 30, 2002. The lower figures
with bracket are as of March 31, 2002.
7
Mitsubishi Tokyo Financial Group, Inc.
6. Progress in the Disposal of Problem Assets [Banking and Trust accounts:
Total of the 2 Banks](excluding claims under close observation)
(1) Assets categorized as problem assets as of September 30, 2000 based on the FRL (in billions of yen)
-------------------------------------------------------------------------------------------------------------------------------
As of As of As of As of As of
September 30, March 31, September 30, March 31, September 30, (b)-(a)
2000 2001 2001 2002(a) 2002(b)
-------------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 513.6 280.6 274.1 213.9 253.7 39.7
-------------------------------------------------------------------------------------------------------------------------------
Claims under high risk 1,580.2 1,400.4 1,141.7 840.7 381.8 (458.8)
-------------------------------------------------------------------------------------------------------------------------------
Total 2,093.8 1,681.0 1,415.8 1,054.6 635.6 (419.0)
-------------------------------------------------------------------------------------------------------------------------------
(A) (B)
Note: The figures as of September 30, 2002 include assets of 134.3 billion
yen which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
--------------------------------------------------------------
First half of fiscal 2002
--------------------------------------------------------------
Disposition by borrower's liquidation 2.8
--------------------------------------------------------------
Re-constructive disposition 15.9
--------------------------------------------------------------
Improvements of financial status due to
re-constructive disposition 67.4
--------------------------------------------------------------
Loan sales to secondary market 106.4
--------------------------------------------------------------
Write-off 66.3
--------------------------------------------------------------
Other 159.9
--------------------------------------------------------------
Collection of claims 66.6
---------------------------------------------------------
Improvements of financial status 93.3
--------------------------------------------------------------
Total 419.0(B)
--------------------------------------------------------------
Note: "Improvements of financial status due to re-constructive disposition"
were included in "Other" in the disclosure for the year ended March
31, 2001.
(2) Assets newly categorized as problem assets during second half of fiscal 2000 based on the FRL (in billions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of As of As of As of
March 31, September 30, March 31, September 30, (b) - (a)
2001 2001 2002(a) 2002(b)
--------------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 117.9 103.8 99.2 46.9 (52.2)
--------------------------------------------------------------------------------------------------------------------------------
Claims under high risk 769.0 693.0 538.9 346.0 (192.8)
--------------------------------------------------------------------------------------------------------------------------------
Total 887.0 796.8 638.1 393.0 (245.0)
--------------------------------------------------------------------------------------------------------------------------------
(C) (D)
Note: The figures as of September 30, 2002 include assets of 22.0 billion
yen which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
--------------------------------------------------------------
First half of fiscal 2002
--------------------------------------------------------------
Disposition by borrower's liquidation 3.8
--------------------------------------------------------------
Re-constructive disposition 12.7
--------------------------------------------------------------
Improvements of financial status due to
re-constructive position 40.6
--------------------------------------------------------------
Loan sales to secondary market 84.1
--------------------------------------------------------------
Write-off 19.0
--------------------------------------------------------------
Other 84.5
---------------------------------------------------------
Collection of claims 48.5
---------------------------------------------------------
Improvements of financial status 36.0
--------------------------------------------------------------
Total 245.0(D)
--------------------------------------------------------------
Note: "Improvements of financial status due to re-constructive disposition"
were included in "Other" in the disclosure for the year ended March 31,
2001.
(3) Assets newly categorized as problem assets during first half of fiscal 2001 based on the FRL (in billions of yen)
----------------------------------------------------------------------------------------------------------------
As of As of As of
September 30, March 31, September 30, (b)-(a)
2001 2002(a) 2002(b)
----------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 30.2 42.1 27.9 (14.1)
---------------------------------------------------------------------------------------------------------------
Claims under high risk 336.7 169.8 101.2 (68.6)
---------------------------------------------------------------------------------------------------------------
Total 366.9 212.0 129.2 (82.8)
----------------------------------------------------------------------------------------------------------------
(E) (F)
Note: The figures as of September 30, 2002 include assets of 18.9 billion yen
which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
-------------------------------------------------------------------
First half of fiscal 2002
-------------------------------------------------------------------
Disposition by borrower's liquidation 1.3
-------------------------------------------------------------------
Re-constructive disposition 4.7
-------------------------------------------------------------------
Improvements of financial status due to
re-constru-tive disposition -
-------------------------------------------------------------------
Loan sales to secondary market 26.4
-------------------------------------------------------------------
Write-off 8.6
-------------------------------------------------------------------
Other 41.6
--------------------------------------------------------------
Collection of claims 37.2
--------------------------------------------------------------
Improvements of financial status 4.3
-------------------------------------------------------------------
Total 82.8 (F)
-------------------------------------------------------------------
8
Mitsubishi Tokyo Financial Group, Inc.
(4) Assets newly categorized as problem assets during second half of fiscal 2001
based on the FRL
(in billions of yen)
--------------------------------------------------------------------------------------------------------------
As of As of
March 31, September 30, (b) - (a)
2002(a) 2002(b)
--------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially bankrupt debtors 63.6 44.4 (19.2)
--------------------------------------------------------------------------------------------------------------
Claims under high risk 384.0 190.9 (193.1)
--------------------------------------------------------------------------------------------------------------
Total 447.7 235.3 (212.4)
--------------------------------------------------------------------------------------------------------------
(G) (H)
Note: The figures as of September 30, 2002 include assets of 33.5 billion yen
which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
------------------------------------------------------------------------
First half of fiscal 2002
------------------------------------------------------------------------
Disposition by borrower's liquidation 7.5
------------------------------------------------------------------------
Re-constructive disposition 19.6
------------------------------------------------------------------------
Improvements of financial status due to
reconstructive disposition -
------------------------------------------------------------------------
Loan sales to secondary market 6.9
------------------------------------------------------------------------
Write-off 28.6
------------------------------------------------------------------------
Other 149.6
-------------------------------------------------------------------
Collection of claims 80.5
-------------------------------------------------------------------
Improvements of financial status 69.1
------------------------------------------------------------------------
Total 212.4 (H)
------------------------------------------------------------------------
(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
------------------------------------------------------------------------------
Claims to bankrupt and substantially bankrupt debtors 28.9
------------------------------------------------------------------------------
Claims under high risk 366.5
------------------------------------------------------------------------------
Total 395.5 (I)
------------------------------------------------------------------------------
Note: The figures as of September 30, 2002 include assets of 18.6 billion yen
which facilitates the final disposal of problem assets.
(Reference)
The transition of problem assets based on the FRL (in billions of yen)
-----------------------------------------------------------------------------------------------------------------------
As of As of As of As of As of
September 30, March 31, September 30, March 31, September 30, (b) - (a)
2000(a) 2001 2001 2002 2002(b)
-----------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 513.6 398.6 408.1 419.0 402.1 (115.5)
-----------------------------------------------------------------------------------------------------------------------
Claims under high risk 1,580.2 2,169.4 2,171.4 1,933.5 1,386.6 (193.5)
-----------------------------------------------------------------------------------------------------------------------
Total 2,093.8 2,568.0 2,579.6 2,352.6 1,788.7 (305.1)(J=A+C+E+G+I)
-----------------------------------------------------------------------------------------------------------------------
9
Mitsubishi Tokyo Financial Group, Inc.
7. Classification of Loans by Type of Industry
(1) Loan by type of industry [Total of the 2 Banks] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------------
Domestic offices (excluding loans booked
at offshore markets) 37,161,574 534,709 (920,459) 36,626,865 38,082,034
------------------------------------------------------------------------------------------------------------------------------------
Manufacturing 5,678,302 (158,149) (157,097) 5,836,451 5,835,399
------------------------------------------------------------------------------------------------------------------------------------
Agriculture 16,558 (3,972) (2,032) 20,530 18,590
------------------------------------------------------------------------------------------------------------------------------------
Forestry 5,384 (159) (371) 5,543 5,755
------------------------------------------------------------------------------------------------------------------------------------
Fishery 19,495 5,375 4,071 14,120 15,424
------------------------------------------------------------------------------------------------------------------------------------
Mining 41,143 (3,314) (7,253) 44,457 48,396
------------------------------------------------------------------------------------------------------------------------------------
Construction 1,343,753 (190,296) (126,493) 1,534,049 1,470,696
------------------------------------------------------------------------------------------------------------------------------------
Utilities 372,961 (42,957) (15,010) 415,918 387,971
------------------------------------------------------------------------------------------------------------------------------------
Transportation and Communication 1,978,408 82,979 141,041 1,895,429 1,837,367
------------------------------------------------------------------------------------------------------------------------------------
Wholesale, Retail and Restaurant 5,485,401 (438,278) (133,460) 5,923,679 5,618,861
------------------------------------------------------------------------------------------------------------------------------------
Banks and other financial institutions 4,213,795 455,599 28,176 3,758,196 4,185,619
------------------------------------------------------------------------------------------------------------------------------------
Real estate 4,653,287 (411,459) (296,170) 5,064,746 4,949,457
------------------------------------------------------------------------------------------------------------------------------------
Services 4,326,698 (391,258) (220,053) 4,717,956 4,546,751
------------------------------------------------------------------------------------------------------------------------------------
Municipal government 292,338 (107,763) 36,980 400,101 255,358
------------------------------------------------------------------------------------------------------------------------------------
Other industries 8,734,045 1,738,369 (172,335) 6,995,676 8,906,381
------------------------------------------------------------------------------------------------------------------------------------
Overseas offices and loans booked at
offshore markets 5,794,347 (227,093) (785,471) 6,021,441 6,579,819
------------------------------------------------------------------------------------------------------------------------------------
Total 42,955,922 307,616 (1,705,931) 42,648,306 44,661,854
------------------------------------------------------------------------------------------------------------------------------------
(2) Domestic consumer loans [Total of the 2 Banks] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------------
Total domestic consumer loans 7,253,420 520,653 273,823 6,732,767 6,979,596
--------------------------------------------------------------------------------------------------------------------------------
Housing loans 6,697,632 588,499 321,627 6,109,133 6,376,005
--------------------------------------------------------------------------------------------------------------------------------
Others 555,787 (67,846) (47,803) 623,633 603,591
------------------------------------------------------------------------------------------------------------------------------------
(3) Domestic loans to small and medium-sized companies [Total of the 2 Banks] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------------
Domestic loans to small and medium-sized companies 20,885,689 (843,700) (755,977) 21,729,389 21,641,666
------------------------------------------------------------------------------------------------------------------------------------
Percentage to total domestic loans 56.20% (3.12)% (0.62)% 59.32% 56.82%
------------------------------------------------------------------------------------------------------------------------------------
10
Mitsubishi Tokyo Financial Group, Inc.
(4) Loan by type of industry [Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Domestic offices (excluding loans
booked at offshore markets) 1,178,974 (123,569) (204,463) 1,302,544 1,383,437
-------------------------------------------------------------------------------------------------------------------------------
Manufacturing 79,476 (16,516) (24,019) 95,992 103,495
-------------------------------------------------------------------------------------------------------------------------------
Agriculture - - - - -
-------------------------------------------------------------------------------------------------------------------------------
Forestry 33 (8) (4) 41 37
-------------------------------------------------------------------------------------------------------------------------------
Fishery 957 (790) (385) 1,747 1,342
-------------------------------------------------------------------------------------------------------------------------------
Mining 223 (637) (98) 860 321
-------------------------------------------------------------------------------------------------------------------------------
Construction 11,837 (10,070) (6,097) 21,907 17,934
-------------------------------------------------------------------------------------------------------------------------------
Utilities 152,233 (30,779) (25,296) 183,012 177,529
-------------------------------------------------------------------------------------------------------------------------------
Transportation and Communication 160,084 (4,257) (12,309) 164,341 172,393
-------------------------------------------------------------------------------------------------------------------------------
Wholesale, Retail and Restaurant 15,269 (14,148) (9,880) 29,417 25,149
-------------------------------------------------------------------------------------------------------------------------------
Banks and other financial institutions 148,887 72,733 86,912 76,154 61,975
-------------------------------------------------------------------------------------------------------------------------------
Real estate 89,161 (44,203) (22,618) 133,364 111,779
-------------------------------------------------------------------------------------------------------------------------------
Services 67,995 (4,852) (17,080) 72,847 85,075
-------------------------------------------------------------------------------------------------------------------------------
Municipal government 40,453 (1,923) (891) 42,376 41,344
-------------------------------------------------------------------------------------------------------------------------------
Other industries 412,359 (68,115) (172,697) 480,474 585,056
--------------------------------------------------------------------------------------------------------------------------------
Overseas offices and loans booked
at offshore markets - - - - -
--------------------------------------------------------------------------------------------------------------------------------
Total 1,178,974 (123,569) (204,463) 1,302,544 1,383,437
--------------------------------------------------------------------------------------------------------------------------------
(5) Domestic consumer loans [Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Total domestic consumer loans 291,362 (49,775) (25,250) 341,137 316,612
-----------------------------------------------------------------------------------------------------------------------------
Housing loans 287,524 (48,504) (24,697) 336,028 312,222
-----------------------------------------------------------------------------------------------------------------------------
Others 3,837 (1,270) (552) 5,108 4,390
--------------------------------------------------------------------------------------------------------------------------------
(6) Domestic loans to small and medium-sized companies [Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Domestic loans to small and medium-sized companies 670,002 (34,352) (113,603) 704,354 783,605
--------------------------------------------------------------------------------------------------------------------------------
Percentage to total domestic loans 56.82% 2.75% 0.18% 54.07% 56.64%
--------------------------------------------------------------------------------------------------------------------------------
11
Mitsubishi Tokyo Financial Group, Inc.
8. Foreign Loans
(1) Loan to specific foreign borrowers [Total of the 2 Banks] (in millions of yen except number of countries)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Loan to specific foreign borrowers 75,987 (8,373) (56,057) 84,361 132,045
--------------------------------------------------------------------------------------------------------------------------------
Number of countries 10 1 (1) 9 11
--------------------------------------------------------------------------------------------------------------------------------
(2) Loan to Asian countries [Total of the 2 Banks] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Thailand 246,826 (23,332) (31,766) 270,158 278,592
Indonesia 145,541 (48,346) (38,289) 193,888 183,830
Malaysia 111,603 26,764 (8,865) 84,838 120,469
Philippines 65,997 (5,305) (10,179) 71,302 76,176
South Korea 107,368 11,864 14,843 95,503 92,524
Singapore 273,014 (17,317) (41,976) 290,332 314,991
Hong Kong 392,566 (38,714) (74,452) 431,280 467,018
China 221,739 (8,294) (24,589) 230,034 246,329
Taiwan 36,157 (6,475) (388) 42,633 36,545
Others 54,679 (17,144) (18,548) 71,823 73,227
--------------------------------------------------------------------------------------------------------------------------------
Total 1,655,494 (126,302) (234,211) 1,781,796 1,889,705
--------------------------------------------------------------------------------------------------------------------------------
(3) Loan to Latin American countries [Total of the 2 Banks] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Argentina 66,123 (23,052) (18,441) 89,175 84,564
Brazil 84,577 (1,606) (894) 86,183 85,472
Mexico 108,970 29,433 162 79,537 108,808
Caribbean countries 426,368 (27,110) (38,467) 453,479 464,836
Others 116,750 (21,407) (35,107) 138,158 151,858
--------------------------------------------------------------------------------------------------------------------------------
Total 802,790 (43,743) (92,750) 846,533 895,540
--------------------------------------------------------------------------------------------------------------------------------
12
Mitsubishi Tokyo Financial Group, Inc.
9. Loans and deposits [Total of the 2 Banks]
(in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Deposits (ending balance) 56,882,076 4,128,044 264,392 52,754,031 56,617,684
--------------------------------------------------------------------------------------------------------------------------------
Deposits (average balance) 56,618,194 3,529,234 2,451,312 53,088,960 54,166,881
--------------------------------------------------------------------------------------------------------------------------------
Loans (ending balance) 42,955,922 307,615 (1,705,932) 42,648,306 44,661,854
--------------------------------------------------------------------------------------------------------------------------------
Loans (average balance) 43,386,616 513,112 (45,421) 42,873,503 43,432,037
--------------------------------------------------------------------------------------------------------------------------------
10. Domestic deposits [Total of the 2 Banks]
(in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Domestic deposits 50,028,304 5,824,944 1,193,136 44,203,359 48,835,167
---------------------------------------------------------------------------------------------------------------------------
Individuals 30,888,443 4,219,256 1,378,554 26,669,186 29,509,889
---------------------------------------------------------------------------------------------------------------------------
Corporations and others 19,139,860 1,605,687 (185,418) 17,534,172 19,325,278
--------------------------------------------------------------------------------------------------------------------------------
Note: Excluding negotiable certificates of deposit, deposits of overseas
offices, and JOM accounts.
11. Number of Employees [Total of the 2 Banks]
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Number of Employees 22,303 (739) 42 23,042 22,261
--------------------------------------------------------------------------------------------------------------------------------
12. Number of Offices [Total of the 2 Banks]
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Domestic: 342 (28) (9) 370 351
---------------------------------------------------------------------------------------------------------------------------
Head office and Branches 314 (15) (7) 329 321
Sub-branches & Agencies 28 (13) (2) 41 30
--------------------------------------------------------------------------------------------------------------------------------
Overseas: 83 (1) - 84 83
---------------------------------------------------------------------------------------------------------------------------
Branches 49 - - 49 49
Sub-branches 14 - - 14 14
Representative offices 20 (1) - 21 20
--------------------------------------------------------------------------------------------------------------------------------
Total 425 (29) (9) 454 434
--------------------------------------------------------------------------------------------------------------------------------
13
Mitsubishi Tokyo Financial Group, Inc.
13. Employees' Retirement Benefits
(1) Benefit obligation
(in millions of yen)
----------------------------------------------------------------------------------------------------------------------
As of
September 30, 2002
----------------------------------------------------------------------------------------------------------------------
Retirement benefits obligation at beginning of the period (A-B+C+D+G+J) 1,067,410
Discount rate:
Domestic subsidiaries 2.2%~3.0%, Overseas subsidiaries 7.25%~7.5%
--------------------------------------------------------------------------------------------------------------------
Fair value of plan assets at beginning of the period (A) 771,758
--------------------------------------------------------------------------------------------------------------------
Prepaid pension cost at beginning of the period (B) 41,960
--------------------------------------------------------------------------------------------------------------------
Reserve for employees' retirement benefits at beginning of the period (C) 26,494
--------------------------------------------------------------------------------------------------------------------
Unrecognized net obligation by the change of accounting policy at beginning
of the period (D) 54,425
-----------------------------------------------------------------------------------------------------------------
Amortization for the current period (Amortized period mainly 5 years) (E) 9,070
-----------------------------------------------------------------------------------------------------------------
Unrecognized net obligation at end of the interim period (F) 45,354
--------------------------------------------------------------------------------------------------------------------
Unrecognized prior service cost at beginning of the period (G) (12,830)
-----------------------------------------------------------------------------------------------------------------
Amortization for the current period (Amortized period mainly 10 years) (H) (725)
-----------------------------------------------------------------------------------------------------------------
Unrecognized net obligation at end of the interim period (I) (12,104)
--------------------------------------------------------------------------------------------------------------------
Unrecognized net actuarial (gain) loss at beginning of the period (J) 269,522
-----------------------------------------------------------------------------------------------------------------
Amortization for the current period (Amortized period mainly 10 years) (K) 13,245
-----------------------------------------------------------------------------------------------------------------
Unrecognized net actuarial (gain) loss at end of the interim period (L) 256,276
----------------------------------------------------------------------------------------------------------------------
Net amount unrecognized at beginning of period (M)(D+G+J) 311,117
----------------------------------------------------------------------------------------------------------------------
Net amount amortized during the period (N)(E+H+K) 21,590
----------------------------------------------------------------------------------------------------------------------
Net amount unrecognized at end of period (O)(M-N) 289,526
----------------------------------------------------------------------------------------------------------------------
Note: Discount rates of The Bank of Tokyo-Mitsubishi, Ltd. and The Mitsubishi
Trust and Banking Corporation are 2.5% and 2.4%, respectively.
(2) Net periodic pension cost
(in millions of yen)
----------------------------------------------------------------------------------------------------------------------
For the six months ended
September 30, 2002
----------------------------------------------------------------------------------------------------------------------
Net periodic cost of the employees' retirement benefits 40,550
--------------------------------------------------------------------------------------------------------------------
Service cost 14,760
--------------------------------------------------------------------------------------------------------------------
Interest cost 15,038
--------------------------------------------------------------------------------------------------------------------
Expected return on plan assets (16,440)
--------------------------------------------------------------------------------------------------------------------
Amortization of net obligation at transition 9,070
--------------------------------------------------------------------------------------------------------------------
Amortization of prior service cost (725)
--------------------------------------------------------------------------------------------------------------------
Amortization of net actuarial loss 13,245
--------------------------------------------------------------------------------------------------------------------
Other 5,601
----------------------------------------------------------------------------------------------------------------------
14
Mitsubishi Tokyo Financial Group, Inc.
14. Earning Projections for the Fiscal Year Ending March 31, 2003
[Consolidated] (in billions of yen)
-------------------------------------------------------------------------------
For the year ending For the six months ended
March 31, 2003 September 30, 2002
-------------------------------------------------------------------------------
Ordinary income 2,900.0 1,425.4
-------------------------------------------------------------------------------
Ordinary loss (165.0) (193.3)
-------------------------------------------------------------------------------
Net loss (185.0) (188.0)
-------------------------------------------------------------------------------
[Non-consolidated] (in billions of yen)
-------------------------------------------------------------------------------
For the year ending For the six months ended
March 31, 2003 September 30, 2002
-------------------------------------------------------------------------------
Operating income 26.0 24.1
-------------------------------------------------------------------------------
Ordinary profit 22.0 22.3
-------------------------------------------------------------------------------
Net income 22.0 22.0
-------------------------------------------------------------------------------
15
MTFG
Selected Interim Financial Information
under Japanese GAAP
For the Fiscal Year Ending March 31, 2003
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, 2003
1. Consolidated Balance Sheets ........ 16
2. Consolidated Statements of Operations ........ 17
3. Consolidated Statements of Retained Earnings ........ 18
4. Notional principal or contract amount, market value and valuation gains (losses) on derivatives ........ 19
[Consolidated]
5. Financial Results [Consolidated], [Non-Consolidated] ........ 22
6. Average interest rate spread [Non-Consolidated] ........ 24
7. Valuation Differences on Securities [Consolidated] ........ 24
8. Risk-Adjusted Capital Ratio Based on the Standards of the BIS [Consolidated] ........ 25
2 Loan Portfolio and Other
1. Risk-Monitored Loans [Consolidated], [Non-Consolidated] ........ 26
2. Allowance for Loan Losses [Consolidated], [Non-Consolidated] ........ 28
3. Coverage Ratio against Risk-Monitored Loans [Consolidated], [Non-Consolidated] ........ 28
4. Disclosed Claims under the Financial Reconstruction Law("FRL") [Non-Consolidated] ........ 29
5. Status of Secured Coverage on Disclosed Claims under the FRL [Non-Consolidated] ........ 29
6. Progress in the Disposal of Problem Assets [Non-Consolidated] ........ 30
7. Classification of Loans by Type of Industry [Non-Consolidated] ........ 32
8. Loans and deposits [Non-Consolidated] ........ 33
9. Domestic deposits [Non-Consolidated] ........ 33
10. Number of Employees [Non-Consolidated] ........ 33
11. Number of Offices [Non-Consolidated] ........ 33
12. Earning Projections for the Fiscal Year Ending March 31, 2003 [Consolidated], [Non-Consolidated] ........ 34
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, 2003
(Japanese GAAP)
1. Consolidated Balance Sheets
-------------------------------------------------------------------------------------------------------------------------------
As of September 30, Increase/ As of March 31, Increase/
2002(A) 2001(B) (Decrease) 2002(C) (Decrease)
(in millions of yen) (A) - (B) (A) - (C)
-------------------------------------------------------------------------------------------------------------------------------
Assets:
Cash and due from banks 5,682,723 6,890,561 (1,207,838) 6,046,692 (363,969)
Call loans and bills bought 771,207 1,046,019 (274,811) 1,532,567 (761,360)
Receivables under resale agreements 1,028,771 2,362,136 (1,333,364) 1,048,130 (19,359)
Receivables under securities borrowing transactions 1,438,229 - 1,438,229 - 1,438,229
Commercial paper and other debt purchased 520,074 373,780 146,293 451,737 68,336
Trading assets 5,062,812 6,580,759 (1,517,946) 4,929,662 133,149
Money held in trust 323,554 293,226 30,327 304,060 19,493
Investment securities 16,301,106 14,144,331 2,156,774 16,766,117 (465,011)
Allowance for losses on investment securities (4,125) (61) (4,064) (1,500) (2,625)
Loans and bills discounted 38,142,802 37,470,702 672,100 39,994,893 (1,852,090)
Foreign exchanges 600,159 736,994 (136,834) 546,574 53,584
Other assets 2,173,366 3,689,591 (1,516,224) 3,407,899 (1,234,532)
Premises and equipment 823,145 805,772 17,372 792,720 30,424
Deferred debenture discounts and other costs 30 535 (504) 158 (128)
Deferred tax assets 858,781 857,809 972 763,281 95,499
Customers' liabilities for acceptances and guarantees 4,952,501 5,236,573 (284,072) 5,394,983 (442,482)
Allowance for loan losses (1,122,543) (1,278,525) 155,981 (1,259,662) 137,118
-------------------------------------------------------------------------------------------------------------------------------
Total assets 77,552,596 79,210,208 (1,657,611) 80,718,319 (3,165,722)
===============================================================================================================================
Liabilities:
Deposits 49,471,557 45,426,959 4,044,598 49,329,946 141,611
Negotiable certificates of deposit 1,779,897 1,727,342 52,555 1,955,432 (175,534)
Debentures 1,198,394 3,000,699 (1,802,304) 2,275,570 (1,077,175)
Call money and bills sold 2,319,399 2,810,150 (490,751) 3,610,489 (1,291,090)
Payables under repurchase agreements 3,091,593 2,951,584 140,009 3,050,219 41,373
Payables under securities lending transactions 1,805,370 - 1,805,370 - 1,805,370
Commercial paper 368,040 631,718 (263,678) 339,367 28,672
Trading liabilities 1,818,463 3,930,513 (2,112,050) 574,197 1,244,266
Borrowed money 1,453,198 1,464,475 (11,276) 1,617,957 (164,758)
Foreign exchanges 628,159 567,249 60,909 490,543 137,615
Bonds and notes 3,075,318 2,856,975 218,343 3,053,783 21,535
Convertible bonds - 445,361 (445,361) 445,361 (445,361)
Bonds with warrants 540,775 - 540,775 - 540,775
Other liabilities 2,188,628 5,217,750 (3,029,121) 5,531,978 (3,343,350)
Reserve for employees' bonuses 12,802 11,965 837 10,186 2,616
Reserve for employees' retirement benefits 24,840 11,984 12,855 13,017 11,823
Reserve for losses on real estate-collateralized
loans sold 1,687 11,565 (9,878) 7,233 (5,546)
Reserves under special laws 540 379 161 436 104
Deferred tax liabilities 53,937 40,062 13,874 46,936 7,000
Deferred tax liabilities on land revaluation excess 126,371 129,473 (3,101) 128,249 (1,878)
Acceptances and guarantees 4,952,501 5,236,573 (284,072) 5,394,983 (442,482)
-------------------------------------------------------------------------------------------------------------------------------
Total liabilities 74,911,480 76,472,785 (1,561,304) 77,875,894 (2,964,413)
-------------------------------------------------------------------------------------------------------------------------------
Minority interest 337,590 189,432 148,158 201,655 135,935
-------------------------------------------------------------------------------------------------------------------------------
Shareholder's equity:
Capital stock 785,969 785,969 - 785,969 -
Capital surplus 595,925 595,925 - 595,925 -
Retained earnings 837,738 1,059,642 (221,903) 1,026,305 (188,566)
Land revaluation excess 206,289 211,425 (5,136) 209,355 (3,066)
Unrealized gains (losses) on securities available
for sale (47,328) (42,767) (4,561) 46,260 (93,589)
Foreign currency translation adjustments (75,067) (62,203) (12,863) (23,046) (52,021)
-------------------------------------------------------------------------------------------------------------------------------
Total shareholder's equity 2,303,525 2,547,991 (244,466) 2,640,770 (337,244)
-------------------------------------------------------------------------------------------------------------------------------
Total liabilities, minority interest
and shareholder's equity 77,552,596 79,210,208 (1,657,611) 80,718,319 (3,165,722)
===============================================================================================================================
16
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
2. Consolidated Statements of Operations
--------------------------------------------------------------------------------------------------------------------
For the six months ended Increase/ For the year ended
September 30, (Decrease) March 31, 2002
(in millions of yen) 2002(A) 2001(B) (A) - (B)
--------------------------------------------------------------------------------------------------------------------
Ordinary income:
Interest income: 712,144 968,890 (256,745) 1,828,671
Interest on loans and discounts 451,593 570,637 (119,043) 1,094,249
Interest and dividends on securities 105,417 141,905 (36,488) 262,104
Other interest income 155,133 256,347 (101,213) 472,318
Trust fees 9,401 10,846 (1,444) 22,064
Fees and commissions 177,676 171,291 6,384 351,306
Trading profits 53,480 34,301 19,178 57,319
Other business income 111,218 95,461 15,757 173,977
Other ordinary income 79,451 68,387 11,064 174,483
--------------------------------------------------------------------------------------------------------------------
Total ordinary income 1,143,372 1,349,178 (205,805) 2,607,823
--------------------------------------------------------------------------------------------------------------------
Ordinary expenses:
Interest expense: 290,445 506,014 (215,569) 908,214
Interest on deposits 93,290 219,943 (126,653) 376,580
Interest on debentures and 5,707 11,868 (6,160) 20,573
amortization of debenture discounts
Other interest expense 191,447 274,203 (82,755) 511,060
Fees and commissions 30,117 26,459 3,658 56,934
Trading losses 11,185 13,879 (2,693) 5,510
Other business expenses 37,575 34,559 3,015 68,469
General and administrative expenses 416,701 403,794 12,907 812,163
Other ordinary expenses 509,797 587,217 (77,419) 942,423
--------------------------------------------------------------------------------------------------------------------
Total ordinary expenses 1,295,823 1,571,925 (276,101) 2,793,717
--------------------------------------------------------------------------------------------------------------------
Ordinary loss (152,450) (222,746) 70,296 (185,893)
--------------------------------------------------------------------------------------------------------------------
Special gains 21,969 127,732 (105,763) 153,987
Special losses 13,374 8,437 4,937 22,076
--------------------------------------------------------------------------------------------------------------------
Loss before income taxes and others (143,855) (103,450) (40,405) (53,981)
--------------------------------------------------------------------------------------------------------------------
Income taxes-current 34,097 49,764 (15,666) 30,771
Income taxes-deferred (25,646) (187,594) 161,948 (147,344)
Minority interest 5,034 8,565 (3,531) 18,681
--------------------------------------------------------------------------------------------------------------------
Net income (loss) (157,341) 25,813 (183,155) 43,909
====================================================================================================================
17
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
3. Consolidated Statement of Retained Earnings
Consolidated Statement of Capital Surplus and Retained Earnings
For the six months ended
(in millions of yen) September 30,2002
--------------------------------------------------------------------------------------------------
Balance of capital surplus at beginning of period 595,925
--------------------------------------------------------------------------------------------------
Balance of capital surplus at end of period 595,925
--------------------------------------------------------------------------------------------------
Balance of retained earnings at beginning of period 1,026,305
Increase: 5,805
Reduction in land revaluation excess 3,066
Change in ownership percentage to a consolidated subsidiary 2,738
due to stock reperchase by the subsidiary
Decrease: (194,371)
Net loss (157,341)
Cash dividends (17,384)
Bonuses to directors of consolidated subsidiaries (3)
Change in ownership percentage to consolidated subsidiaries and (15,896)
company accounted for by the equity method due to their merger
Increase in consolidated subsidiaries and companies accounted (3,746)
for by the equity method
--------------------------------------------------------------------------------------------------
Balance of retained earnings at end of period 837,738
==================================================================================================
Consolidated Statement of Retained Earnings
-----------------------------------------------------------------------------------------------------------
For the six months ended For the year ended
(in millions of yen) September 30,2001 March 31,2002
-----------------------------------------------------------------------------------------------------------
Balance of retained earnings at beginning of period 1,055,929 1,055,929
Increase: 1,135 3,134
Reduction in land revaluation excess 1,135 3,134
Decrease: (23,236) (76,668)
Cash dividends (23,226) (76,658)
Bonuses to directors of consolidated subsidiaries (10) (10)
Net gain 25,813 43,909
-----------------------------------------------------------------------------------------------------------
Balance of retained earnings at end of period 1,059,642 1,026,305
===========================================================================================================
18
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
4. Notional principal or contract amount, market value and valuation gains
(losses) on derivatives
a. Interest rate-related transactions
(in millions of yen)
-----------------------------------------------------------------------------------------
As of September 30, 2002
-----------------------------------------------------------------
Notional principal Market value Valuation gains (losses)
or contract amount
-----------------------------------------------------------------------------------------
Exchange-traded
Futures 8,297,242 (7,059) (7,059)
Options 5,088,593 6,389 1,841
Over-the-counter
FRAs 792,187 (501) (501)
Swaps 208,370,329 117,362 117,362
Others 12,241,315 5,496 2,635
Total 121,688 114,279
Note: Valuation gains (losses) are recognized in the consolidated statement
of operations. Derivatives which qualify for hedge-accounting are not
included in the above table.
b. Foreign exchange-related transactions
(in millions of yen)
-----------------------------------------------------------------------------------------------
As of September 30, 2002
-----------------------------------------------------------------------
Notional principal amount Market value Valuation gains (losses)
-----------------------------------------------------------------------------------------------
Over-the-counter
---------------------------------------------------------------------------------------------
Swaps 8,658,822 (20,322) (20,322)
---------------------------------------------------------------------------------------------
Forward contracts 81,824 152 152
---------------------------------------------------------------------------------------------
Others 1,353 1 1
-----------------------------------------------------------------------------------------------
Total (20,169) (20,169)
-----------------------------------------------------------------------------------------------
Notes: 1. Valuation gains are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting and/or
which are applicable to notes 2, are not included in the above
table.
2. Currency swaps which are accounted for by an accrual basis are
not included in the above table. Notional principal amount,
market value and valuation gains of currency swaps which are
accounted for by an accrual basis are as follows:
(in millions of yen)
--------------------------------------------------------------------------------------------
As of September 30, 2002
--------------------------------------------------------------------------------------------
Notional principal amount Market value Valuation gains (losses)
--------------------------------------------------------------------------------------------
Swaps 3,313,161 (17,286) (17,286)
--------------------------------------------------------------------------------------------
Other foreign exchange-related transactions such as forward exchange
contracts and currency options, which valuation gains (losses) had
been recognized in the consolidated statement of operations, are not
included in the above table.
Notional principal or contract amounts of those foreign exchange-
related transactions are as follows:
-----------------------------------------------------------------------
As of September 30, 2002
---------------------------------------
Notional principal or contract amount
-----------------------------------------------------------------------
Exchange-traded
--------------------------------------------------------------------
Futures 3,647
-----------------------------------------------------------------------
Over-the-counter
--------------------------------------------------------------------
Forward contracts 59,621,855
--------------------------------------------------------------------
Options 10,363,687
-----------------------------------------------------------------------
19
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
c. Equity-related transactions (in millions of yen)
------------------------------------------------------------------------------------------------------------------
As of September 30, 2002
------------------------------------------------------------------------------------------------------------------
Notional principal Market value Valuation gains (losses)
or contract amount
------------------------------------------------------------------------------------------------------------------
Exchange-traded
------------------------------------------------------------------------------------------------------------------
Futures 71,586 276 276
------------------------------------------------------------------------------------------------------------------
Options 46,672 (102) 73
------------------------------------------------------------------------------------------------------------------
Over-the-counter
------------------------------------------------------------------------------------------------------------------
Options 167,058 2,718 2,787
------------------------------------------------------------------------------------------------------------------
Swaps 15,381 151 151
------------------------------------------------------------------------------------------------------------------
Total 3,044 3,290
------------------------------------------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations.
d. Bond-related transactions (in millions of yen)
------------------------------------------------------------------------------------------------------------------
As of September 30, 2002
------------------------------------------------------------------------------------------------------------------
Notional principal Market value Valuation gains (losses)
or contract amount
------------------------------------------------------------------------------------------------------------------
Exchange-traded
------------------------------------------------------------------------------------------------------------------
Futures 2,227,023 273 273
------------------------------------------------------------------------------------------------------------------
Options 320,023 (509) (78)
------------------------------------------------------------------------------------------------------------------
Over-the-counter
------------------------------------------------------------------------------------------------------------------
Options 724,700 (1,009) (1,117)
------------------------------------------------------------------------------------------------------------------
Total (1,246) (921)
------------------------------------------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the above table.
e. Commodity-related transactions (in millions of yen)
------------------------------------------------------------------------------------------------------------------
As of September 30, 2002
------------------------------------------------------------------------------------------------------------------
Notional principal Market value Valuation gains (losses)
or contract amount
------------------------------------------------------------------------------------------------------------------
Exchange-traded
------------------------------------------------------------------------------------------------------------------
Futures 4,104 211 211
------------------------------------------------------------------------------------------------------------------
Options 1,294 (60) (19)
------------------------------------------------------------------------------------------------------------------
Over-the-counter
------------------------------------------------------------------------------------------------------------------
Options 275,753 (6,298) (6,298)
------------------------------------------------------------------------------------------------------------------
Swaps 77,311 1,998 853
------------------------------------------------------------------------------------------------------------------
Total (4,148) (5,253)
------------------------------------------------------------------------------------------------------------------
Notes: 1. Valuation gains (losses) are recognized in the consolidated statement
of operations.
2. Commodities are primarily related to petroleum.
f. Credit derivatives (in millions of yen)
------------------------------------------------------------------------------------------------------------------
As of September 30, 2002
------------------------------------------------------------------------------------------------------------------
Notional principal Market value Valuation gains (losses)
or contract amount
------------------------------------------------------------------------------------------------------------------
Over-the-counter
------------------------------------------------------------------------------------------------------------------
Credit default options 995,687 48,947 48,947
------------------------------------------------------------------------------------------------------------------
Others 97,952 (17,164) (17,164)
------------------------------------------------------------------------------------------------------------------
Total 31,782 31,782
------------------------------------------------------------------------------------------------------------------
Note: Valuation gains are recognized in the consolidated statement of
operations.
g. Others (in millions of yen)
------------------------------------------------------------------------------------------------------------------
As of September 30, 2002
------------------------------------------------------------------------------------------------------------------
Notional principal Market value Valuation gains (losses)
or contract amount
------------------------------------------------------------------------------------------------------------------
Over-the-counter
------------------------------------------------------------------------------------------------------------------
Weather derivatives 393 (24) (8)
------------------------------------------------------------------------------------------------------------------
Note: Valuation gains are recognized in the consolidated statement of
operations.
20
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
(Japanese GAAP)
(Reference)
Derivatives which qualify for hedge-accounting [Consolidated]
(in billions of yen)
----------------------------------------------------------------------------------------------------------------------------
As of September 30, 2002
-------------------------------------------------------------------------------------
Notional principal Market value Deferred hedge Deferred hedge Deferred hedge
or contract amount profit loss profit and loss
-------------------------------------------------------------------------------------
Interest Rate futures 12,548.4 14.0 79.1 63.0 16.1
----------------------------------------------------------------------------------------------------------------------------
Interest Rate Swaps 36,248.7 165.2 276.9 195.1 81.7
----------------------------------------------------------------------------------------------------------------------------
Others(Interest rate-related) 30,046.3 (2.7) 0.6 0.5 0.1
----------------------------------------------------------------------------------------------------------------------------
Others(Exclude Interest rate-related) 666.2 0.8 20.5 22.9 (2.3)
----------------------------------------------------------------------------------------------------------------------------
Total 177.3 377.3 281.6 95.6
----------------------------------------------------------------------------------------------------------------------------
Notes: 1. Derivatives which qualify for hedge-accounting are included
in the above table.
2. The transactions in the above table are accounted for market
value,and mainly applied deferral hedge accounting.
Residual schedule of notional principal classified as interest rate swap
is as follows:
(in billions of yen)
----------------------------------------------------------------------------------------------------------------------------
Due within 1 year Due after 1 year Due after 5 years Total
through 5 years
----------------------------------------------------------------------------------------------------------------------------
Receivable fixed rate/payable floating rate 12,993.3 8,944.2 1,602.0 23,539.6
----------------------------------------------------------------------------------------------------------------------------
Receivable floating rate/payable fixed rate 5,880.8 5,242.4 1,418.2 12,541.5
----------------------------------------------------------------------------------------------------------------------------
Receivable floating rate/payable floating rate 24.3 99.7 43.3 167.5
----------------------------------------------------------------------------------------------------------------------------
Total 18,898.6 14,286.4 3,063.6 36,248.7
----------------------------------------------------------------------------------------------------------------------------
21
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
5. Financial Results (The Bank of Tokyo-Mitsubishi, Ltd. and Consolidated
Subsidiaries)
(in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
Six months ended Increase/ Six months ended
September 30, (Decrease) September 30,
2002 (A) (A) - (B) 2001 (B)
------------------------------------------------------------------------------------------------------------------------------------
Gross profits 695,473 (5,923) 701,396
-------------------------------------------------------------------------------------------------------------------------------
Net interest income 422,574 (41,818) 464,393
-------------------------------------------------------------------------------------------------------------------------------
Trust fees 9,401 (1,444) 10,846
-------------------------------------------------------------------------------------------------------------------------------
Net fees and commissions 147,558 2,726 144,832
-------------------------------------------------------------------------------------------------------------------------------
Net trading profits 42,295 21,872 20,422
-------------------------------------------------------------------------------------------------------------------------------
Net other business income 73,643 12,741 60,901
----------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on debt securities 30,332 (938) 31,270
------------------------------------------------------------------------------------------------------------------------------------
General and administrative expenses 395,184 6,501 388,682
------------------------------------------------------------------------------------------------------------------------------------
Net business profits before 300,288 (12,424) 312,713
provision for formula allowance for loan losses
------------------------------------------------------------------------------------------------------------------------------------
Provision for formula allowance for loan losses (1) 58,147 32,093 26,053
------------------------------------------------------------------------------------------------------------------------------------
Net business profits* 242,141 (44,518) 286,659
------------------------------------------------------------------------------------------------------------------------------------
Net non-recurring gains (losses) (394,591) 114,814 (509,406)
-------------------------------------------------------------------------------------------------------------------------------
Credit related costs (2) (129,404) 109,615 (239,020)
----------------------------------------------------------------------------------------------------------------------------
Losses on loan charge-offs (92,036) 1,858 (93,895)
----------------------------------------------------------------------------------------------------------------------------
Provision for specific allowance for loan losses 9,354 146,526 (137,171)
----------------------------------------------------------------------------------------------------------------------------
Losses on real estate-collateralized loans sold to the CCPC** (298) 2,244 (2,543)
----------------------------------------------------------------------------------------------------------------------------
Provision for allowance for loans to specific foreign borrowers 12,157 9,197 2,959
----------------------------------------------------------------------------------------------------------------------------
Other credit related costs (58,582) (50,211) (8,370)
-------------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on equity securities (175,451) 90,072 (265,524)
----------------------------------------------------------------------------------------------------------------------------
Gains on sales of equity securities 40,405 27,447 12,958
----------------------------------------------------------------------------------------------------------------------------
Losses on sales of equity securities (59,575) (44,898) (14,676)
----------------------------------------------------------------------------------------------------------------------------
Losses on write down of equity securities (156,282) 107,524 (263,806)
-------------------------------------------------------------------------------------------------------------------------------
Equity in earnings (loss) of affiliates (7,751) (4,464) (3,286)
-------------------------------------------------------------------------------------------------------------------------------
Other (81,983) (80,409) (1,574)
------------------------------------------------------------------------------------------------------------------------------------
Ordinary loss (152,450) 70,296 (222,746)
------------------------------------------------------------------------------------------------------------------------------------
Net special gains 8,594 (110,701) 119,295
------------------------------------------------------------------------------------------------------------------------------------
Loss before income taxes and others (143,855) (40,405) (103,450)
------------------------------------------------------------------------------------------------------------------------------------
Income taxes-current 34,097 (15,666) 49,764
------------------------------------------------------------------------------------------------------------------------------------
Income taxes-deferred (25,646) 161,948 (187,594)
------------------------------------------------------------------------------------------------------------------------------------
Minority interest 5,034 (3,531) 8,565
------------------------------------------------------------------------------------------------------------------------------------
Net income (loss) (157,341) (183,155) 25,813
------------------------------------------------------------------------------------------------------------------------------------
* 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 - Intercompany transactions.
** CCPC stands for the Cooperative Credit Purchasing Company, Limited.
(Reference)
------------------------------------------------------------------------------------------------------------------------------------
Total credit costs (1) + (2) 187,552 (77,521) 265,074
------------------------------------------------------------------------------------------------------------------------------------
Number of consolidated subsidiaries 158 11 147
------------------------------------------------------------------------------------------------------------------------------------
Number of affiliated companies accounted for by the equity method 25 (1) 26
22
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
Financial Results (The Bank of Tokyo-Mitsubishi, Ltd.)
(in millions of yen)
-----------------------------------------------------------------------------------------------------------------------------------
Six months ended Increase/ Six months ended
September 30, (Decrease) September 30,
2002 (A) (A) - (B) 2001 (B)
-----------------------------------------------------------------------------------------------------------------------------------
Gross profits 483,715 3,769 479,945
------------------------------------------------------------------------------------------------------------------------------
Domestic gross profits 257,881 (36,529) 294,411
---------------------------------------------------------------------------------------------------------------------------
Net interest income 205,405 (40,968) 246,374
---------------------------------------------------------------------------------------------------------------------------
Net fees and commissions 31,346 1,069 30,276
---------------------------------------------------------------------------------------------------------------------------
Net trading profits 11,144 5,572 5,572
---------------------------------------------------------------------------------------------------------------------------
Net other business income 9,984 (2,203) 12,187
-------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on debt securities 13,215 (5,196) 18,411
------------------------------------------------------------------------------------------------------------------------------
Non-domestic gross profits 225,833 40,299 185,534
---------------------------------------------------------------------------------------------------------------------------
Net interest income 114,340 18,519 95,821
---------------------------------------------------------------------------------------------------------------------------
Net fees and commissions 30,664 883 29,781
---------------------------------------------------------------------------------------------------------------------------
Net trading profits 19,002 3,793 15,208
---------------------------------------------------------------------------------------------------------------------------
Net other business income 61,825 17,102 44,722
-------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on debt securities 17,468 5,652 11,815
-----------------------------------------------------------------------------------------------------------------------------------
General and administrative expenses 237,221 (7,758) 244,979
------------------------------------------------------------------------------------------------------------------------------
Personnel expenses 93,476 (3,247) 96,724
------------------------------------------------------------------------------------------------------------------------------
Non-personnel expenses 132,364 (2,988) 135,352
------------------------------------------------------------------------------------------------------------------------------
Taxes 11,381 (1,521) 12,902
-----------------------------------------------------------------------------------------------------------------------------------
Net business profits before 246,493 11,527 234,966
provision for formula allowance for loan losses
-----------------------------------------------------------------------------------------------------------------------------------
Provision for formula allowance for loan losses (1) 59,531 40,588 18,942
-----------------------------------------------------------------------------------------------------------------------------------
Net business profits 186,962 (29,061) 216,023
-----------------------------------------------------------------------------------------------------------------------------------
Net non-recurring gains (losses) (340,340) 194,252 (534,593)
------------------------------------------------------------------------------------------------------------------------------
Credit related costs (96,715) 106,071 (202,786)
---------------------------------------------------------------------------------------------------------------------------
Losses on loan charge-offs (88,921) (26,702) (62,218)
---------------------------------------------------------------------------------------------------------------------------
Provision for specific allowance for loan losses 40,222 155,967 (115,744)
---------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on sale of domestic bad loans and similar claims (42,483) (35,344) (7,138)
---------------------------------------------------------------------------------------------------------------------------
Provision for allowance for loans to specific foreign borrowers 12,157 9,197 2,959
---------------------------------------------------------------------------------------------------------------------------
Losses on financial assistance to subsidiaries (10,452) 7,403 (17,856)
---------------------------------------------------------------------------------------------------------------------------
Other credit related costs (7,239) (4,450) (2,789)
------------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on equity securities (156,613) 173,120 (329,733)
---------------------------------------------------------------------------------------------------------------------------
Gains on sales of equity securities 61,426 43,694 17,732
---------------------------------------------------------------------------------------------------------------------------
Losses on sales of equity securities (59,528) (45,297) (14,231)
---------------------------------------------------------------------------------------------------------------------------
Losses on write down of equity securities (158,511) 174,723 (333,235)
------------------------------------------------------------------------------------------------------------------------------
Others (87,010) (84,938) (2,072)
-----------------------------------------------------------------------------------------------------------------------------------
Ordinary loss (153,377) 165,191 (318,569)
-----------------------------------------------------------------------------------------------------------------------------------
Net special gains (losses) 7,654 (3,800) 11,454
------------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on sale of premises and equipment (8,132) (5,013) (3,118)
-----------------------------------------------------------------------------------------------------------------------------------
Profit on recoveries of charged-offs claims 16,111 2,131 13,980
-----------------------------------------------------------------------------------------------------------------------------------
Loss before income taxes (145,723) 161,391 (307,114)
-----------------------------------------------------------------------------------------------------------------------------------
Income taxes-current 17,851 (16,795) 34,647
-----------------------------------------------------------------------------------------------------------------------------------
Income taxes-deferred (83,759) 67,803 (151,563)
-----------------------------------------------------------------------------------------------------------------------------------
Net loss (79,815) 110,383 (190,198)
-----------------------------------------------------------------------------------------------------------------------------------
23
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
6. Average interest rate spread
[Non-Consolidated] (percentage per annum)
--------------------------------------------------------------------------------------------------------------
For the six months ended Increase/
September 30, (Decrease)
-------------------------
2002(A) 2001(B) (A) - (B)
--------------------------------------------------------------------------------------------------------------
Total average interest rate on interest-earning assets (A) 1.89 2.53 (0.63)
----------------------------------------------------------------------------------------------------------
Average interest rate on Loans and bills discounted 1.88 2.35 (0.47)
----------------------------------------------------------------------------------------------------------
Average interest rate on Investment securities 1.03 1.68 (0.65)
--------------------------------------------------------------------------------------------------------------
Total average interest rate on interest-bearing liabilities (B) 1.56 2.19 (0.62)
--------------------------------------------------------------------------------------------------------------
Average interest rate on Deposits, NCD and Debentures 0.36 0.91 (0.54)
----------------------------------------------------------------------------------------------------------
Average interest rate on external liabilities 1.32 1.65 (0.33)
----------------------------------------------------------------------------------------------------------
Total average interest rate spread (A)-(B) 0.33 0.33 (0.00)
--------------------------------------------------------------------------------------------------------------
Average interest rate spread in domestic business segment: (percentage per annum)
--------------------------------------------------------------------------------------------------------------
Total average interest rate on interest-earning assets (A) 1.13 1.44 (0.31)
----------------------------------------------------------------------------------------------------------
Average interest rate on Loans and bills discounted 1.56 1.76 (0.19)
----------------------------------------------------------------------------------------------------------
Average interest rate on Investment securities 0.47 0.98 (0.50)
----------------------------------------------------------------------------------------------------------
Total average interest rate on interest-bearing liabilities (B) 0.91 1.09 (0.18)
----------------------------------------------------------------------------------------------------------
Average interest rate on Deposits, NCD and Debentures 0.07 0.17 (0.10)
----------------------------------------------------------------------------------------------------------
Average interest rate on external liabilities 0.96 1.14 (0.18)
----------------------------------------------------------------------------------------------------------
Total average interest rate spread (A)-(B) 0.22 0.34 (0.12)
--------------------------------------------------------------------------------------------------------------
7. Valuation Differences on Securities
(1) Valuation method of securities
--------------------------------------------------------------------------------
Trading securities Market value (valuation differences
are recorded as profits or loses)
--------------------------------------------------------------------------------
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 loses)
--------------------------------------------------------------------------------
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, 2002 As of September 30, 2001 As of March 31, 2002
---------------------------------------------------------------------------------------------------------
Valuation differences Valuation differences Valuation differences
---------------- ----------------- -----------------
Gains Losses Gains Losses Gains Losses
------------------
(A) (A)-(B) (A)-(C) (B) (C)
------------------------------------------------------------------------------------------------------------------------------------
Debt securities being
held to maturity 1,279 (3,522) (145) 1,358 79 4,802 5,087 285 1,424 1,547 122
-----------------------------------------------------------------------------------------------------------------------------------
Securities available
for sale (78,976) (17,691) (163,165) 388,217 467,194 (61,285) 508,310 569,596 84,188 529,303 445,114
-----------------------------------------------------------------------------------------------------------------------------------
Domestic equity
securities (123,474) 10,256 (188,862) 278,540 402,014 (133,730) 409,240 542,971 65,388 433,492 368,104
---------------------------------------------------------------------------------------------------------------------------------
Domestic bonds 47,977 11,359 8,993 48,951 973 36,618 37,548 929 38,984 42,084 3,100
---------------------------------------------------------------------------------------------------------------------------------
Other (3,480) (39,306) 16,703 60,725 64,206 35,826 61,521 25,694 (20,184) 53,725 73,910
---------------------------------------------------------------------------------------------------------------------------------
Total (77,697) (21,214) (163,311) 389,576 467,273 (56,483) 513,398 569,881 85,613 530,850 445,237
---------------------------------------------------------------------------------------------------------------------------------
Domestic equity
securities (123,474) 10,256 (188,862) 278,540 402,014 (133,730) 409,240 542,971 65,388 433,492 368,104
---------------------------------------------------------------------------------------------------------------------------------
Domestic bonds 47,977 11,359 8,993 48,951 973 36,618 37,548 929 38,984 42,084 3,100
---------------------------------------------------------------------------------------------------------------------------------
Other (2,201) (42,829) 16,558 62,084 64,285 40,628 66,609 25,980 (18,759) 55,273 74,032
------------------------------------------------------------------------------------------------------------------------------------
24
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
8. Risk-Adjusted Capital Ratio Based on the Standards of the BIS
(in billions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
(Preliminary basis)
------------------------------------------------------------------------------------------------------------------------------------
(1) Risk-adjusted capital ratio 10.43% 0.29% 0.13% 10.13% 10.29%
(2) Tier I capital 2,425.8 (46.0) (130.7) 2,471.9 2,556.6
(3) Tier II capital includable as
qualifying capital 2,396.0 (75.8) (160.5) 2,471.9 2,556.6
i) The amount of unrealized gains on
investment securities, includable as
qualifying capital - - (36.6) - 36.6
ii) The amount of land revaluation excess
includable as qualifying capital 149.6 (3.7) (2.2) 153.4 151.8
iii)Subordinated debt 1,690.2 (193.3) (160.1) 1,883.5 1,850.3
(4) Tier III capital includable as
qualifying capital 29.8 29.8 29.8 - -
(5) Deductions from total
qualifying capital 25.6 (86.5) (77.4) 112.2 103.0
(6) Total qualifying capital (2)+(3)+(4)-(5) 4,826.0 (5.6) (184.1) 4,831.6 5,010.2
(7) Risk-adjusted assets 46,269.2 (1,413.0) (2,388.5) 47,682.3 48,657.8
------------------------------------------------------------------------------------------------------------------------------------
25
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
2 Loan Portfolio and Other
1. Risk-Monitored Loans
(Nonaccrual loans, accruing loans contractually past due 3 months or
more and restructured loans)
[Non-Consolidated]
(in millions of yen)
---------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 62,563 (11,006) (27,019) 73,569 89,583
--------------------------------------------------------------------------------------------------------------------------
Past due loans 1,064,857 (462,387) (362,326) 1,527,245 1,427,183
--------------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 11,311 (3,734) (4,750) 15,046 16,062
--------------------------------------------------------------------------------------------------------------------------
Restructured loans 1,460,693 (216,002) (59,533) 1,676,695 1,520,227
--------------------------------------------------------------------------------------------------------------------------
Total 2,599,425 (693,131) (453,630) 3,292,557 3,053,056
--------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
Loans and bills discounted 34,163,445 903,850 (1,457,371) 33,259,594 35,620,817
---------------------------------------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
--------------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 0.18% (0.03)% (0.06)% 0.22% 0.25%
--------------------------------------------------------------------------------------------------------------------------
Past due loans 3.11% (1.47)% (0.88)% 4.59% 4.00%
--------------------------------------------------------------------------------------------------------------------------
Accruing loans contractually 0.03% (0.01)% (0.01)% 0.04% 0.04%
past due 3 months or more
--------------------------------------------------------------------------------------------------------------------------
Restructured loans 4.27% (0.76)% 0.00% 5.04% 4.26%
--------------------------------------------------------------------------------------------------------------------------
Total 7.60% (2.29)% (0.96)% 9.89% 8.57%
--------------------------------------------------------------------------------------------------------------------------
[Consolidated]
(in millions of yen)
---------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 82,311 (7,268) (31,266) 89,580 113,577
--------------------------------------------------------------------------------------------------------------------------
Past due loans 1,128,978 (484,320) (362,713) 1,613,298 1,491,691
--------------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 13,603 (4,038) (4,182) 17,642 17,785
--------------------------------------------------------------------------------------------------------------------------
Restructured loans 1,425,310 (261,579) (110,104) 1,686,889 1,535,415
--------------------------------------------------------------------------------------------------------------------------
Total 2,650,203 (757,207) (508,266) 3,407,410 3,158,470
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
Loans and bills discounted 38,142,802 672,100 (1,852,090) 37,470,702 39,994,893
---------------------------------------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
--------------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 0.21% (0.02)% (0.06)% 0.23% 0.28%
--------------------------------------------------------------------------------------------------------------------------
Past due loans 2.95% (1.34)% (0.76)% 4.30% 3.72%
--------------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.03% (0.01)% (0.00)% 0.04% 0.04%
--------------------------------------------------------------------------------------------------------------------------
Restructured loans 3.73% (0.76)% (0.10)% 4.50% 3.83%
--------------------------------------------------------------------------------------------------------------------------
Total 6.94% (2.14)% (0.94)% 9.09% 7.89%
---------------------------------------------------------------------------------------------------------------------------
26
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
Classification of risk-monitored Loans
Classification by geographic area
[Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Domestic* 2,342,067 (804,434) (500,014) 3,146,502 2,842,081
--------------------------------------------------------------------------------------------------------------------------------
Overseas* 308,136 47,227 (8,252) 260,908 316,388
--------------------------------------------------------------------------------------------------------------------------------
Asia 71,137 (34,126) (44,591) 105,264 115,729
----------------------------------------------------------------------------------------------------------------------
Indonesia 25,133 (6,144) (10,446) 31,277 35,579
Thailand 26,375 1,397 (11,400) 24,977 37,776
Hong Kong 2,581 (16,976) (8,804) 19,558 11,386
Other 17,047 (12,403) (13,940) 29,450 30,987
----------------------------------------------------------------------------------------------------------------------------
United States of America 126,775 12,718 (12,241) 114,056 139,017
Other 110,222 68,635 48,581 41,586 61,641
--------------------------------------------------------------------------------------------------------------------------------
Total 2,650,203 (757,207) (508,266) 3,407,410 3,158,470
--------------------------------------------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
Classification by type of industry of borrowers
[Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Domestic* 2,342,067 (804,434) (500,014) 3,146,502 2,842,081
----------------------------------------------------------------------------------------------------------------------------
Manufacturing 315,546 (61,624) (46,016) 377,170 361,563
Construction 195,518 (42,076) (41,928) 237,595 237,446
Wholesale, Retail and Restaurant 554,239 (107,671) (60,508) 661,910 614,747
Banks and other financial institutions 58,516 (32,126) (10,709) 90,643 69,226
Real estate 632,198 (390,477) (244,747) 1,022,676 876,946
Services 276,241 (113,092) (56,718) 389,333 332,959
Other industries 73,305 (29,074) (19,041) 102,379 92,347
Consumer 236,501 (28,291) (20,343) 264,792 256,844
--------------------------------------------------------------------------------------------------------------------------------
Overseas* 308,136 47,227 (8,252) 260,908 316,388
----------------------------------------------------------------------------------------------------------------------------
Banks and other financial institutions 9,055 (1,839) (11,143) 10,894 20,198
Commercial and industrial 292,960 49,521 7,016 243,439 285,944
Other 6,120 (453) (4,125) 6,574 10,245
--------------------------------------------------------------------------------------------------------------------------------
Total 2,650,203 (757,207) (508,266) 3,407,410 3,158,470
--------------------------------------------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
27
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
2. Allowance for Loan Losses
[Non-Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses 903,592 (152,091) (132,240) 1,055,684 1,035,833
------------------------------------------------------------------------------------------------------------------------------
Formura allowance for loan losses 516,399 61,587 59,531 454,812 456,867
------------------------------------------------------------------------------------------------------------------------------
Specific allowance for loan losses 373,429 (218,434) (179,614) 591,864 553,043
------------------------------------------------------------------------------------------------------------------------------
Allowance for loans to specific foreign borrowers 13,763 4,756 (12,157) 9,007 25,921
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Reserve for financial assistance to specific borrowers 10,336 (1,310) 10,336 11,646 -
--------------------------------------------------------------------------------------------------------------------------------
Reserve for losses on real estate-collateralized loans sold 1,687 (9,878) (5,546) 11,565 7,233
--------------------------------------------------------------------------------------------------------------------------------
[Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses 1,122,543 (155,981) (137,118) 1,278,525 1,259,662
------------------------------------------------------------------------------------------------------------------------------
Formura allowance for loan losses 680,307 54,658 51,734 625,648 628,572
------------------------------------------------------------------------------------------------------------------------------
Specific allowance for loan losses 428,472 (215,396) (176,695) 643,869 605,168
------------------------------------------------------------------------------------------------------------------------------
Allowance for loans to specific foreign borrowers 13,763 4,756 (12,157) 9,007 25,921
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Reserve for losses on real estate-collateralized loans sold 1,687 (9,878) (5,546) 11,565 7,233
--------------------------------------------------------------------------------------------------------------------------------
3. Coverage Ratio against Risk-Monitored Loans
[Non-Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses(A) 903,592 (152,091) (132,240) 1,055,684 1,035,833
--------------------------------------------------------------------------------------------------------------------------------
Reserve for financial assistance to specific borrowers(B) 10,336 (1,310) 10,336 11,646 -
--------------------------------------------------------------------------------------------------------------------------------
Risk-monitored loans(C) 2,599,425 (693,131) (453,630) 3,292,557 3,053,056
--------------------------------------------------------------------------------------------------------------------------------
Coverage ratio(A+B)/(C) 35.15% 2.74% 1.23% 32.41% 33.92%
--------------------------------------------------------------------------------------------------------------------------------
[Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses(A) 1,122,543 (155,981) (137,118) 1,278,525 1,259,662
--------------------------------------------------------------------------------------------------------------------------------
Risk-monitored loans(B) 2,650,203 (757,207) (508,266) 3,407,410 3,158,470
--------------------------------------------------------------------------------------------------------------------------------
Coverage ratio(A)/(B) 42.35% 4.83% 2.47% 37.52% 39.88%
--------------------------------------------------------------------------------------------------------------------------------
28
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
4. Disclosed Claims under the Financial Reconstruction Law ("FRL")
[Non-Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially bankrupt debtors 341,590 65,475 19,245 276,115 322,345
---------------------------------------------------------------------------------------------------------------------------------
Claims under high risk 985,329 (605,594) (456,731) 1,590,923 1,442,061
---------------------------------------------------------------------------------------------------------------------------------
Claims under close observation 1,472,004 (219,737) (64,284) 1,691,742 1,536,289
---------------------------------------------------------------------------------------------------------------------------------
Total (1) 2,798,925 (759,856) (501,770) 3,558,781 3,300,695
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
Normal claims 36,883,565 1,033,472 (1,516,805) 35,850,092 38,400,371
---------------------------------------------------------------------------------------------------------------------------------
5. Status of Secured Coverage on Disclosed Claims under the FRL
[Non-Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Secured coverage amount (2) 2,125,585 (435,256) (328,448) 2,560,841 2,454,033
------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses 620,824 (163,234) (143,769) 784,059 764,594
------------------------------------------------------------------------------------------------------------------------------
Collateral, guarantees, etc. 1,504,760 (272,022) (184,678) 1,776,782 1,689,439
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Secured coverage ratio (2)/(1) 75.94% 3.98% 1.59% 71.95% 74.34%
--------------------------------------------------------------------------------------------------------------------------------
Secured Coverage of each category of Disclosed Claims under the FRL
[Non-Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
Reserve for Collectable
financial amount by
support to collateralized Coverage ratio Coverage ratio
Disclosed Allowance for specific and guaranteed [(B)+(C)]/ [(B)+(C)]+(D)]/
Category amount(A) loan losses (B) borrowers (C) loans (D) [(A)-(D)] (A)
--------------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt debtors 341,590 27,685 - 313,905 100.00% 100.00%
[322,345] [62,345] - [259,999] [100.00%] [100.00%]
--------------------------------------------------------------------------------------------------------------------------------
Claims under high risk 985,329 336,366 - 438,923 61.55% 78.68%
[1,442,061] [486,938] - [643,242] [60.95%] [78.37%]
--------------------------------------------------------------------------------------------------------------------------------
Claims under close observation 1,472,004 256,773 - 751,932 35.65% 68.52%
[1,536,289] [215,309] - [786,196] [28.70%] [65.18%]
--------------------------------------------------------------------------------------------------------------------------------
Sub total (1) 2,798,925 620,824 - 1,504,760 47.97% 75.94%
[3,300,695] [764,594] - [1,689,439] [47.45%] [74.34%]
--------------------------------------------------------------------------------------------------------------------------------
Normal claims 36,883,565
[38,400,371]
--------------------------------------------------------------------------------------------------------------------------------
Total (2) 39,682,490
[41,701,067]
--------------------------------------------------------------------------------------------------------------------------------
Sub total (1) / Total (2) 7.05%
[7.91%]
--------------------------------------------------------------------------------------------------------------------------------
Note: The upper figures are as of September 30, 2002. The lower figures with
bracket are as of March 31, 2002.
29
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubisti, Ltd.)
6. Progress in the Disposal of Problem Assets [Non-Consolidated]
(excluding claims under close observation)
(1) Assets categorized as problem assets as of September 30, 2000 based on the FRL (in billions of yen)
------------------------------------------------------------------------------------------------------------------------------
As of As of As of As of As of
September 30, March 31, September 30, March 31, September 30, (b)-(a)
2000 2001 2001 2002(a) 2002(b)
------------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 274.3 144.3 150.6 144.9 210.9 65.9
------------------------------------------------------------------------------------------------------------------------------
Claims under high risk 1,053.5 944.9 758.4 538.4 193.6 (344.8)
------------------------------------------------------------------------------------------------------------------------------
Total 1,327.8 1,089.2 909.0 683.4 404.6 (278.8)
------------------------------------------------------------------------------------------------------------------------------
(A) (B)
Note: The figures as of September 30, 2002 include assets of 38.8 billion yen
which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
------------------------------------------------------------------
First half of fiscal 2002
------------------------------------------------------------------
Disposition by borrower's liquidation 2.8
------------------------------------------------------------------
Re-constructive disposition 15.9
------------------------------------------------------------------
Improvements of financial status due to
re-constructive disposition 60.8
------------------------------------------------------------------
Loan sales to secondary market 95.2
------------------------------------------------------------------
Write-off 38.3
------------------------------------------------------------------
Other 65.5
---------------------------------------------------------------
Collection of claims 51.8
---------------------------------------------------------------
Improvements of financial status 13.7
------------------------------------------------------------------
Total 278.8 (B)
------------------------------------------------------------------
Note: "Improvements of financial status due to re-constructive disposition"
were included in "Other" in the disclosure for the year ended March 31,
2001.
(2) Assets newly categorized as problem assets during second half of fiscal 2000 based on the FRL (in billions of yen)
------------------------------------------------------------------------------------------------------------------------
As of As of As of As of -----------
March 31, September 30, March 31, September 30, (b)-(a)
2001 2001 2002(a) 2002(b)
------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 106.8 98.3 94.3 44.0 (50.2)
------------------------------------------------------------------------------------------------------------------------
Claims under high risk 635.3 575.4 447.4 269.3 (178.1)
------------------------------------------------------------------------------------------------------------------------
Total 742.1 673.7 541.8 313.3 (228.4)
------------------------------------------------------------------------------------------------------------------------
(C) (D)
Note: The figures as of September 30, 2002 include assets of 19.0 billion yen
which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
------------------------------------------------------------------
First half of fiscal 2002
------------------------------------------------------------------
Disposition by borrower's liquidation 3.8
------------------------------------------------------------------
Re-constructive disposition 12.7
------------------------------------------------------------------
Improvements of financial status due to
re-constructive disposition 40.6
------------------------------------------------------------------
Loan sales to secondary market 83.5
------------------------------------------------------------------
Write-off 15.4
------------------------------------------------------------------
Other 72.1
------------------------------------------------------------------
Collection of claims 41.2
---------------------------------------------------------------
Improvements of financial status 30.8
---------------------------------------------------------------
Total 228.4 (D)
------------------------------------------------------------------
Note: "Improvements of financial status due to re-constructive disposition"
were included in "Other" in the disclosure for the year ended March 31,
2001.
(3) Assets newly categorized as problem assets during first half of fiscal 2001 based on the FRL (in billions of yen)
-----------------------------------------------------------------------------------------------------------------------
As of As of As of --------------
September 30, March 31, September 30, (b)-(a)
2001 2002(a) 2002(b)
-----------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 27.1 25.6 26.4 0.7
-----------------------------------------------------------------------------------------------------------------------
Claims under high risk 257.0 140.1 79.9 (60.1)
-----------------------------------------------------------------------------------------------------------------------
Total 284.2 165.8 106.3 (59.4)
-----------------------------------------------------------------------------------------------------------------------
(E) (F)
Note: The figures as of September 30, 2002 include assets of 17.2 billion yen
which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
------------------------------------------------------------------
First half of fiscal 2002
------------------------------------------------------------------
Disposition by borrower's liquidation 1.3
------------------------------------------------------------------
Re-constructive disposition 4.7
------------------------------------------------------------------
Improvements of financial status due to
re-constructive disposition -
------------------------------------------------------------------
Loan sales to secondary market 25.3
------------------------------------------------------------------
Write-off 7.6
------------------------------------------------------------------
Other 20.2
------------------------------------------------------------------
Collection of claims 16.6
---------------------------------------------------------------
Improvements of financial status 3.6
---------------------------------------------------------------
Total 59.4 (F)
------------------------------------------------------------------
30
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubisti, Ltd.)
(4) Assets newly categorized as problem assets during second half of fiscal 2001
based on the FRL
(in billions of yen)
------------------------------------------------------------------------------
As of As of ---------
March 31, September 30, (b)-(a)
2002(a) 2002(b)
------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 57.3 35.4 (21.8)
------------------------------------------------------------------------------
Claims under high risk 315.9 162.4 (153.4)
------------------------------------------------------------------------------
Total 373.2 197.9 (175.3)
------------------------------------------------------------------------------
(G) (H)
Note: The figures as of September 30, 2002 include assets of 24.5 billion yen
which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
------------------------------------------------------------------------
First half of fiscal 2002
------------------------------------------------------------------------
Disposition by borrower's liquidation 7.5
------------------------------------------------------------------------
Re-constructive disposition 19.6
------------------------------------------------------------------------
Improvements of financial status due to
re-constructive disposition -
------------------------------------------------------------------------
Loan sales to secondary market 5.9
------------------------------------------------------------------------
Write-off 10.8
------------------------------------------------------------------------
Other 131.2
------------------------------------------------------------------------
Collection of claims 70.6
------------------------------------------------------------------------
Improvements of financial status 60.6
------------------------------------------------------------------------
Total 175.3 (H)
------------------------------------------------------------------------
(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
Claims to bankrupt and substantially
bankrupt debtors 24.6
------------------------------------------------------------------------
Claims under high risk 279.9
------------------------------------------------------------------------
Total 304.5 (I)
------------------------------------------------------------------------
Note: The figures as of September 30, 2002 include assets of 16.8 billion yen
which facilitates the final disposal of problem assets.
(Reference)
The transition of problem assets based on the FRL (in billions of yen)
--------------------------------------------------------------------------------------------------------------------
As of As of As of As of As of ---------
September 30, March 31, September 30, March 31, September 30, (b)-(a)
2000(a) 2001 2001 2002 2002(b)
--------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 274.3 251.2 276.1 322.3 341.5 67.2
--------------------------------------------------------------------------------------------------------------------
Claims under high risk 1,053.5 1,580.2 1,590.9 1,442.0 985.3 (68.1)
--------------------------------------------------------------------------------------------------------------------
Total 1,327.8 1,831.4 1,867.0 1,764.4 1,326.9 (0.9)(J=A+C+E+G+I)
--------------------------------------------------------------------------------------------------------------------
31
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
7. Classification of Loans by Type of Industry
(1) Loan by type of industry [Non-Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------
Domestic offices (excluding loans
booked at offshore markets) 28,976,779 838,286 (874,415) 28,138,493 29,851,195
-------------------------------------------------------------------------------------------------------------------
Manufacturing 4,485,888 (140,375) (107,794) 4,626,263 4,593,682
Agriculture 15,184 (3,673) (1,942) 18,857 17,126
Forestry 5,284 (159) (371) 5,443 5,655
Fishery 3,057 (404) - 3,461 3,057
Mining 34,420 (1,839) (6,701) 36,259 41,121
Construction 1,049,605 (156,580) (115,853) 1,206,185 1,165,458
Utilities 245,570 (20,590) (17,981) 266,160 263,551
Transportation and Communication 1,209,703 (52,796) (8,398) 1,262,499 1,218,101
Wholesale, Retail and Restaurant 4,684,476 (327,319) (95,923) 5,011,795 4,780,399
Banks and other financial institutions 2,107,240 155,483 (198,441) 1,951,757 2,305,681
Real estate 3,470,443 (249,198) (173,816) 3,719,641 3,644,259
Services 3,473,580 (220,054) (154,887) 3,693,634 3,628,467
Municipal government 31,667 (1,784) 1,536 33,451 30,131
Other industries 8,160,662 1,857,574 6,155 6,303,088 8,154,507
---------------------------------------------------------------------------------------------------------------------
Overseas offices and loans booked
at offshore markets 5,186,665 65,564 (582,956) 5,121,101 5,769,622
---------------------------------------------------------------------------------------------------------------------
Total 34,163,445 903,850 (1,457,371) 33,259,594 35,620,817
---------------------------------------------------------------------------------------------------------------------
(2) Domestic consumer loans [Non-Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------
Total domestic consumer loans 7,014,285 527,257 274,408 6,487,028 6,739,877
-------------------------------------------------------------------------------------------------------------------
Housing loans 6,477,174 587,917 307,461 5,889,257 6,169,713
-------------------------------------------------------------------------------------------------------------------
Others 537,111 (60,660) (33,053) 597,771 570,164
---------------------------------------------------------------------------------------------------------------------
(3) Domestic loans to small and medium-sized companies [Non-Consolidated] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------------
Domestic loans to small and medium-sized companies 17,272,676 (816,527) (732,067) 18,089,203 18,004,743
--------------------------------------------------------------------------------------------------------------------------------
Percentage to total domestic loans 59.60% (4.67)% (0.70)% 64.28% 60.31%
--------------------------------------------------------------------------------------------------------------------------------
32
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
8. Loans and deposits [Non-Consolidated]
(in millions of yen)
---------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------
Deposits (ending balance) 45,715,654 3,657,726 373,600 42,057,927 45,342,053
---------------------------------------------------------------------------------------------------------
Deposits (average balance) 45,524,028 3,342,466 2,192,205 42,181,561 43,331,822
---------------------------------------------------------------------------------------------------------
Loans (ending balance) 34,163,445 903,850 (1,457,371) 33,259,594 35,620,817
---------------------------------------------------------------------------------------------------------
Loans (average balance) 34,565,134 906,003 207,684 33,659,131 34,357,449
---------------------------------------------------------------------------------------------------------
9. Domestic deposits [Non-Consolidated]
(in millions of yen)
---------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------
Domestic deposits 40,346,185 5,252,630 1,081,964 35,093,555 39,264,221
----------------------------------------------------------------------------------------------------
Individuals 24,383,970 3,531,733 1,119,552 20,852,237 23,264,417
----------------------------------------------------------------------------------------------------
Corporations and others 15,962,215 1,720,897 (37,588) 14,241,318 15,999,804
---------------------------------------------------------------------------------------------------------
Note: Excluding negotiable of certificates deposit, deposits of overseas
offices, and JOM accounts.
10. Number of Employees [Non-Consolidated]
---------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------
Number of Employees 15,852 (535) 132 16,387 15,720
---------------------------------------------------------------------------------------------------------
11. Number of Offices [Non-Consolidated]
---------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------
Domestic: 287 (15) (9) 302 296
----------------------------------------------------------------------------------------------------
Head office and Branches 263 (11) (7) 274 270
Sub Branches & Agencies 24 (4) (2) 28 26
---------------------------------------------------------------------------------------------------------
Overseas: 75 (1) - 76 75
----------------------------------------------------------------------------------------------------
Branches 44 - - 44 44
Sub - branches 14 - - 14 14
Representative offices 17 (1) - 18 17
---------------------------------------------------------------------------------------------------------
Total 362 (16) (9) 378 371
---------------------------------------------------------------------------------------------------------
33
Mitsubishi Tokyo Financial Group, Inc.
(The Bank of Tokyo-Mitsubishi, Ltd.)
12. Earning Projections for the Fiscal Year Ending March 31, 2003
[Consolidated] (in billions of yen)
---------------------------------------------------------------------------
For the year ending For the six months ended
March 31, 2003 September 30, 2002
----------------------------------------------------------------------------
Ordinary income 2,300.0 1,143.3
---------------------------------------------------------------------------
Ordinary loss (110.0) (152.4)
---------------------------------------------------------------------------
Net loss (140.0) (157.3)
---------------------------------------------------------------------------
[Non-Consolidated] (in billions of yen)
---------------------------------------------------------------------------
For the year ending For the six months ended
March 31, 2003 September 30, 2002
---------------------------------------------------------------------------
Ordinary income 1,700.0 857.7
---------------------------------------------------------------------------
Ordinary loss (150.0) (153.3)
---------------------------------------------------------------------------
Net loss (70.0) (79.8)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net business profits before
provision for formula allowance
for loan losses 500.0 246.4
---------------------------------------------------------------------------
34
MTFG
Selected Interim Financial Information
under Japanese GAAP
For the Fiscal Year Ending March 31, 2003
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, 2003
1. Consolidated Balance Sheets .......... 35
2. Consolidated Statements of Operations .......... 36
3. Consolidated Statements of Capital Surplus and Retained Earnings .......... 37
4. Notional principal or contract amount, market value and valuation gains (losses) on derivatives .......... 38
[Consolidated]
5. Comparison of Statement of Trust Assets and Liabilities [Trust],[Non-Consolidated] .......... 41
6. Financial Results [Consolidated],[Non-Consolidated] .......... 44
7. Average interest rate spread [Non-Consolidated] .......... 46
8. Valuation Differences on Securities [Consolidated], [Trust] .......... 46
9. Risk-Adjusted Capital Ratio Based on the Standards of the BIS [Consolidated] .......... 47
2 Loan Portfolio and Other
1. Risk-Monitored Loans [Consolidated],[Non-Consolidated], [Trust] .......... 48
[Consolidated and Trust],[Non-Consolidated and Trust]
2. Allowance for Loan Losses [Consolidated],[Non-Consolidated], [Trust] .......... 51
3. Coverage Ratio against Risk-Monitored Loans [Consolidated],[Non-Consolidated] .......... 51
4. Disclosed Claims under the Financial Reconstruction Law ("FRL") [Non-Consolidated],[Trust] .......... 52
[Non-Consolidated and Trust]
5. Status of Secured Coverage on Disclosed Claims under the FRL [Non-Consolidated],[Trust] .......... 53
[Non-Consolidated and Trust]
6. Progress in the Disposal of Problem Assets [Non-Consolidated and Trust] .......... 55
7. Classification of Loans by Type of Industry [Non-Consolidated],[Trust] .......... 57
[Non-Consolidated and Trust]
8. Loans and deposits [Non-Consolidated] .......... 60
9. Domestic deposits [Non-Consolidated] .......... 60
10. Number of Employees [Non-Consolidated] .......... 60
11. Number of Offices [Non-Consolidated] .......... 60
12. Earning Projections for the Fiscal Year ending March 31, 2003 [Consolidated],[Non-Consolidated] .......... 61
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, 2003
(Japanese GAAP)
1. Consolidated Balance Sheets
----------------------------------------------------------------------------------------------------------------------------
As of September 30, Increase/ As of March 31, Increase/
2002(A) 2001(B) (Decrease) 2002(C) (Decrease)
(in millions of yen) (A) - (B) (A) - (C)
----------------------------------------------------------------------------------------------------------------------------
Assets:
Cash and due from banks 1,170,607 949,326 221,280 1,023,093 147,513
Call loans and bills bought 6,130 56,817 (50,687) 300,000 (293,870)
Receivables under securities borrowing transactions 1,921,949 - 1,921,949 - 1,921,949
Commercial paper and other debt purchased 10,525 2,978 7,546 9,175 1,350
Trading assets 425,935 405,075 20,859 427,000 (1,065)
Money held in trust 14,434 24,606 (10,171) - 14,434
Investment securities 7,233,595 5,931,878 1,301,717 6,757,663 475,932
Loans and bills discounted 8,822,563 8,938,306 (115,742) 9,081,942 (259,378)
Foreign exchanges 15,677 13,353 2,323 14,256 1,420
Pledged money for securities borrowing transactions - - - 1,580,670 (1,580,670)
Other assets 1,268,260 1,672,645 (404,385) 1,175,019 93,241
Premises and equipment 189,159 245,598 (56,438) 186,968 2,190
Deferred tax assets 246,427 234,025 12,401 249,468 (3,041)
Deferred tax assets on land revaluation losses 4,984 - 4,984 4,985 (1)
Customers' liabilities for acceptances and guarantees 444,140 538,404 (94,264) 490,893 (46,752)
Allowance for loan losses (375,733) (340,573) (35,159) (399,978) 24,244
----------------------------------------------------------------------------------------------------------------------------
Total assets 21,398,657 18,672,444 2,726,213 20,901,159 497,498
============================================================================================================================
Liabilities:
Deposits 11,160,893 10,292,778 868,114 11,250,776 (89,883)
Negotiable certificates of deposit 1,308,427 1,198,933 109,494 1,283,592 24,835
Call money and bills sold 1,217,863 273,629 944,234 895,608 322,255
Payables under repurchase agreements 43,999 39,999 4,000 468,757 (424,757)
Payables under securities lending transactions 2,393,839 - 2,393,839 - 2,393,839
Commercial paper 540,000 - 540,000 460,000 80,000
Trading liabilities 154,499 157,436 (2,937) 109,665 44,833
Borrowed money 235,716 222,705 13,011 240,958 (5,242)
Foreign exchanges 20,215 23,497 (3,281) 23,359 (3,144)
Bonds and notes 345,400 402,100 (56,700) 354,600 (9,200)
Due to trust account 1,635,468 2,759,313 (1,123,844) 2,282,224 (646,756)
Pledged money for securities lending transactions - - - 1,251,772 (1,251,772)
Other liabilities 1,146,995 1,924,559 (777,564) 1,020,331 126,663
Reserve for employees' bonuses 4,008 3,950 58 4,042 (33)
Reserve for employees' retirement benefits 15,088 7,496 7,591 13,157 1,930
Reserve for losses on real estate-collateralized
loans sold 352 3,552 (3,200) 342 10
Deferred tax liabilities 281 168 113 68 213
Deferred tax liabilities on land revaluation excess 190 - 190 190 -
Acceptances and guarantees 444,140 538,404 (94,264) 490,893 (46,752)
----------------------------------------------------------------------------------------------------------------------------
Total liabilities 20,667,380 17,848,526 2,818,854 20,150,342 517,038
----------------------------------------------------------------------------------------------------------------------------
Minority interest 2,841 3,662 (821) 4,129 (1,288)
----------------------------------------------------------------------------------------------------------------------------
Shareholder's equity:
Capital stock 305,143 292,793 12,350 305,143 -
Capital surplus 255,617 246,378 9,239 255,617 -
Retained earnings 173,276 298,975 (125,698) 210,676 (37,400)
Land revaluation excess (7,699) - (7,699) (7,700) 1
Unrealized gains (losses) on securities available
for sale 8,262 (11,710) 19,973 (13,396) 21,658
Foreign currency translation adjustments (6,165) (6,182) 16 (3,653) (2,511)
----------------------------------------------------------------------------------------------------------------------------
Total shareholder's equity 728,435 820,254 (91,818) 746,687 (18,251)
----------------------------------------------------------------------------------------------------------------------------
Total liabilities, minority interest
and shareholder's equity 21,398,657 18,672,444 2,726,213 20,901,159 497,498
============================================================================================================================
35
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
2. Consolidated Statements of Operations
----------------------------------------------------------------------------------------------------------------
For the six months ended Increase/ For the year ended
September 30, (Decrease) March 31, 2002
(in millions of yen) 2002(A) 2001(B) (A) - (B)
----------------------------------------------------------------------------------------------------------------
Ordinary income:
Trust fees 38,575 41,110 (2,535) 96,233
Interest income: 184,728 203,774 (19,046) 425,647
Interest on loans and discounts 67,469 82,506 (15,036) 160,143
Interest and dividends on securities 76,099 75,322 777 168,445
Fees and commissions 25,686 21,416 4,269 48,661
Trading profits 1,439 2,288 (849) 2,303
Other business income 21,917 24,606 (2,688) 32,264
Other ordinary income 20,923 48,499 (27,576) 58,960
----------------------------------------------------------------------------------------------------------------
Total ordinary income 293,270 341,696 (48,425) 664,072
----------------------------------------------------------------------------------------------------------------
Ordinary expenses:
Interest expense: 85,456 125,719 (40,263) 242,485
Interest on deposits 29,638 64,422 (34,783) 110,092
Fees and commissions 3,477 3,269 207 6,020
Trading losses - 136 (136) -
Other business expenses 31,543 18,943 12,599 49,794
General and administrative expenses 87,934 81,179 6,755 173,610
Other ordinary expenses 127,531 129,536 (2,004) 248,644
----------------------------------------------------------------------------------------------------------------
Total ordinary expenses 335,943 358,784 (22,841) 720,556
----------------------------------------------------------------------------------------------------------------
Ordinary loss (42,672) (17,088) (25,584) (56,484)
----------------------------------------------------------------------------------------------------------------
Special gains 9,070 6,372 2,697 21,450
Special losses 3,326 2,238 1,088 59,459
----------------------------------------------------------------------------------------------------------------
Loss before income taxes and others (36,928) (12,954) (23,974) (94,492)
----------------------------------------------------------------------------------------------------------------
Income taxes-current 1,104 1,219 (115) 3,688
Income taxes-refund 3,284 - 3,284 -
Income taxes-deferred (1,920) (6,221) 4,301 (11,072)
Minority interest (297) 281 (578) 548
----------------------------------------------------------------------------------------------------------------
Net loss (32,530) (8,233) (24,297) (87,657)
================================================================================================================
36
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubisi Trust and Banking Corporation)
(Japanese GAAP)
3. Consolidated Statements of Capital Surplus and Retained Earnings
Consolidated Statement of Capital Surplus and Retained Earnings
-------------------------------------------------------------------------------------------
For the six months ended
(in millions of yen) September 30, 2002
-------------------------------------------------------------------------------------------
Balance of capital surplus at beginning of period 255,617
-------------------------------------------------------------------------------------------
Balance of capital surplus at end of period 255,617
-------------------------------------------------------------------------------------------
Balance of retained earnings at beginning of period 210,676
Decrease: (37,400)
Cash dividends (4,683)
Reduction in land revaluation excess (1)
Decrease in companies accounted for by the equity method (184)
Net loss (32,530)
Balance of retained earnings at end of period 173,276
-------------------------------------------------------------------------------------------
Consolidated Statement of Retained Earnings
---------------------------------------------------------------------------------------------------------------------
For the six months ended For the year ended
(in millions of yen) September 30, 2001 March 31, 2002
---------------------------------------------------------------------------------------------------------------------
Balance of retained earnings at beginning of period 312,190 312,190
Increase: 385 5,657
Increase due to merger - 5,271
Increase in companies accounted for by the equity method 385 385
Decrease: (5,368) (19,513)
Cash dividends (5,368) (19,513)
Net loss (8,233) (87,657)
---------------------------------------------------------------------------------------------------------------------
Balance of retained earnings at end of period 298,975 210,676
---------------------------------------------------------------------------------------------------------------------
37
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubisi Trust and Banking Corporation)
(Japanese GAAP)
4. Notional principal or contract amount, market value and valuation gains
(losses) on derivatives
a. Interest rate-related transactions
(in millions of yen)
-----------------------------------------------------------------------------------------------------------
As of September 30, 2002
---------------------------------------------------------------------------
Notional principal Market value Valuation gains
or contract amount (losses)
-----------------------------------------------------------------------------------------------------------
Exchange-traded
-----------------------------------------------------------------------------------------------------------
Futures 10,463 16 16
-------------------------------------------------------------------------------------------------------
Options - - -
-----------------------------------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------------------------------------
FRAs - - -
-------------------------------------------------------------------------------------------------------
Swaps 7,107,661 1,032 1,032
-------------------------------------------------------------------------------------------------------
Options - - -
-------------------------------------------------------------------------------------------------------
Caps/Floors 350,091 (31) (48)
-------------------------------------------------------------------------------------------------------
Others 342,367 20 111
-----------------------------------------------------------------------------------------------------------
Total 1,037 1,111
-----------------------------------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting are not
included in the above table.
b. Foreign exchange-related transactions
(in millions of yen)
-----------------------------------------------------------------------------------------------------------
As of September 30, 2002
---------------------------------------------------------------------------
Notional principal amount Market value Valuation gains
-----------------------------------------------------------------------------------------------------------
Over-the-counter
-----------------------------------------------------------------------------------------------------------
Swaps 125,449 54 54
-------------------------------------------------------------------------------------------------------
Forward contracts - - -
-------------------------------------------------------------------------------------------------------
Options - - -
-------------------------------------------------------------------------------------------------------
Others - - -
-----------------------------------------------------------------------------------------------------------
Notes: 1. Valuation gains are recognized in the consolidated statement of
operations. Derivatives which qualify for hedge-accounting and/or
which are applicable to notes 2. are not included in the above table.
2. Currency swaps which are accounted for by an accrual basis are not
included in the above table. Notional principal amount, market value
and valuation gains of currency swaps which are accounted for by an
accrual basis are as follows:
(in millions of yen)
-------------------------------------------------------------------------------------------------------
As of September 30, 2002
---------------------------------------------------------------------------
Notional principal amount Market value Valuation gains
-------------------------------------------------------------------------------------------------------
Swaps 2,910,291 (23) (23)
-------------------------------------------------------------------------------------------------------
Other foreign exchange-related transactions such as forward exchange contracts
and currency options, which valuation gains (losses) had been recognized in the
consolidated statement of operations, are not included in the above table.
Notional principal or contract amounts of those foreign exchange-related
transactions are as follows:
---------------------------------------------------------------------
As of September 30, 2002
----------------------------------------------
Notional principal or contract amount
---------------------------------------------------------------------
Exchange-traded
------------------------------------------------------------------
Futures -
------------------------------------------------------------------
Options -
---------------------------------------------------------------------
Over-the-counter
------------------------------------------------------------------
Forward contracts 5,396,507
------------------------------------------------------------------
Options 195,700
------------------------------------------------------------------
Others -
---------------------------------------------------------------------
38
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
c. Equity-related transactions : N/A
d. Bond-related transactions
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2002
--------------------------------------------------------------------------------
Notional principal Market value Valuation gains
or contract amount (losses)
--------------------------------------------------------------------------------
Exchange-traded
----------------------------------------------------------------------------
Futures 12,074 (0) (0)
----------------------------------------------------------------------------
Options - - -
--------------------------------------------------------------------------------
Over-the-counter
----------------------------------------------------------------------------
Options - - -
----------------------------------------------------------------------------
Others - - -
--------------------------------------------------------------------------------
Total (0) (0)
--------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated
statement of operations. Derivatives which qualify for hedge-
accounting are not included in the above table.
e. Commodity-related transactions : N/A
f. Credit derivatives
(in millions of yen)
--------------------------------------------------------------------------------
As of September 30, 2002
--------------------------------------------------------------------------------
Notional principal Market value Valuation gains
or contract amount (losses)
--------------------------------------------------------------------------------
Over-the-counter
---------------------------------------------------------------------------
Credit default options 3,008 (30) (30)
---------------------------------------------------------------------------
Others - - -
-------------------------------------------------------------------------------
Total (30) (30)
-------------------------------------------------------------------------------
Note: Valuation gains (losses) are recognized in the consolidated
statement of operations. Derivatives which qualify for hedge-
accounting are not included in the above table.
39
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Japanese GAAP)
(Reference)
Derivatives which qualify for hedge-accounting [Consolidated]
(in billions of yen)
-----------------------------------------------------------------------------------------------------------------
As of September 30, 2002
-----------------------------------------------------------------------------------------------------------------
Notional principal Market value Deferred hedge Deferred hedge Deferred hedge
or contract amount profit loss profit and loss
-----------------------------------------------------------------------------------------------------------------
Interest Rate futures 196.8 0.1 0.5 0.4 0.1
-----------------------------------------------------------------------------------------------------------------
Interest Rate Swaps 23,833.2 70.4 368.5 341.2 27.3
-----------------------------------------------------------------------------------------------------------------
Others(Interest
rate-related) 281.9 (0.1) 0.7 0.3 0.4
-----------------------------------------------------------------------------------------------------------------
Others(Exclude Interest
rate-related) 619.6 (1.6) 0.7 3.2 (2.5)
-----------------------------------------------------------------------------------------------------------------
Total 68.7 370.6 345.3 25.3
-----------------------------------------------------------------------------------------------------------------
Notes: 1. Derivatives which qualify for hedge-accounting are included
in the above table.
2. The transactions in the above table are accounted for market
value, and mainly applied deferral hedge accounting.
Residual schedule of notional principal classified as interest rate
swap is as follows:
(in billions of yen)
-----------------------------------------------------------------------------------------------------------------------
Due after 1 year
Due within 1 year through 5 years Due after 5 years Total
-----------------------------------------------------------------------------------------------------------------------
Receivable fixed rate/payable floating rate 4,811.9 9,400.3 94.8 14,307.0
-----------------------------------------------------------------------------------------------------------------------
Receivable floating rate/payable fixed rate 2,481.9 5,603.7 143.6 8,229.4
-----------------------------------------------------------------------------------------------------------------------
Receivable floating rate/payable floating rate 225.0 1,069.5 2.2 1,296.7
-----------------------------------------------------------------------------------------------------------------------
Total 7,518.8 16,073.5 240.7 23,833.2
-----------------------------------------------------------------------------------------------------------------------
40
Mitsubishi Toyko Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
5. Comparison of Statement of Trust Assets and Liabilities
(1)Comparison of Statement of Trust Assets and Liabilities
The Mitsubishi Trust and Banking Corporation
----------------------------------------------------------------------------------------------------------------------------------
Increase/ As of Increase/
As of September 30, (Decrease) March 31, (Decrease)
(in millions of Yen) 2002(A) 2001(B) (A) - (B) 2002(C) (A) - (C)
---------------------------------------------------------------------------------------------------------------------------------
Assets:
Loans and Bills Discounted 1,178,974 1,290,215 (111,240) 1,383,437 (204,463)
Securities 6,564,841 22,020,173 (15,455,331) 29,585,083 (23,020,241)
Securities Held for Investment Trusts - 5,933,637 (5,933,637) 3,349,256 (3,349,256)
Foreign Investments Held for Investment Trusts - 660,596 (660,596) 1,048,300 (1,048,300)
Beneficiary Rights 8,349,373 92,918 8,256,454 189,162 8,160,211
Securities Held in Custody Accounts 3,265,155 470,528 2,794,627 3,431,739 (166,584)
Money Claims 2,336,357 1,897,949 438,407 2,612,238 (275,881)
Premises and Equipment 1,233,730 660,113 573,617 967,340 266,389
Lease Rights 21,911 21,913 (2) 21,911 -
Other Claims 1,291,966 459,170 832,795 1,014,480 277,485
Bills Bought - - - 13,524 (13,524)
Call Loans 266,061 1,665,344 (1,399,282) 2,279,456 (2,013,395)
Due from Banking Account 1,635,468 2,759,313 (1,123,844) 2,282,224 (646,756)
Cash and Due from Banks 1,665,996 786,949 879,047 2,043,534 (377,538)
---------------------------------------------------------------------------------------------------------------------------------
Total Assets 27,809,837 38,718,822 (10,908,984) 50,221,692 (22,411,854)
=================================================================================================================================
Liabilities:
Money Trusts 7,937,889 15,235,505 (7,297,616) 17,678,364 (9,740,475)
Pension Trusts 92,413 6,257,142 (6,164,728) 7,604,453 (7,512,039)
Property Formation Benefit Trusts 12,125 13,130 (1,004) 12,675 (549)
Loan Trusts 1,397,152 2,252,841 (855,689) 1,997,536 (600,383)
Investment Trusts 8,192,101 8,839,452 (647,351) 5,803,288 2,388,813
Money Entrusted Other than Money Trusts 240,944 2,603,810 (2,362,865) 2,792,466 (2,551,521)
Securities Trusts 6,189,907 633,913 5,555,994 5,900,215 289,692
Money Claim Trusts 2,434,612 776,326 1,658,285 1,900,922 533,690
Equipment Trusts 277 525 (247) 345 (67)
Land and Fixtures Trusts 178,141 169,059 9,081 183,409 (5,268)
Other Trusts 1,134,270 1,937,113 (802,842) 6,348,014 (5,213,743)
---------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 27,809,837 38,718,822 (10,908,984) 50,221,692 (22,411,854)
=================================================================================================================================
Note:
Joint trust assets under the management of other companies
as of September 30, 2002 :33,949,606 millions of yen
as of September 30, 2001 : 11,216,131 millions of yen
as of March 31, 2002 : 10,133,641 millions of yen
(Reference)
Of the joint trust assets the management of other companies mentioned avobe
Note,the balance at the end of the interim business period of fiscal 2002
includes the trust asetts of 23,153,837 millions of yen which were entrusted
to The Mitsubishi Trust and Banking Corporation and Master Trust assets of
the Service-Shared Co-Trusteeship (here in after referred to as Trust Assets
under Service-Shared Co-Trusteeship) The comparison of statement of trust
assets and liabilities which is obtained by adding up Trust Assets under
Service-Shared Co-Trusteeship is givin on the next page.
41
Mitsubishi Toyko Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(Reference)
Comparison of Statement of Trust Assets and Liabilities
The Comparison of Statement of Trust Assets and Liabilities which is
obtained by adding up Trust Assets under Service-Shared Co-Trusteeship
-----------------------------------------------------------------------------------------------------------------------------
Increase/ As of Increase/
As of September 30, (Decrease) March 31, (Decrease)
(in millions of Yen) 2002(A) 2001(B) (A) - (B) 2002(C) (A) - (C)
-----------------------------------------------------------------------------------------------------------------------------
Assets:
Loans and Bills Discounted 1,178,974 1,290,215 (111,240) 1,383,437 (204,463)
Securities 27,469,641 22,020,173 5,449,468 29,585,083 (2,115,442)
Securities Held for Investment Trusts - 5,933,637 (5,933,637) 3,349,256 (3,349,256)
Foreign Investments Held for Investment Trusts - 660,596 (660,596) 1,048,300 (1,048,300)
Beneficiary Rights 8,363,011 92,918 8,270,092 189,162 8,173,849
Securities Held in Custody Accounts 3,265,826 470,528 2,795,298 3,431,739 (165,912)
Money Claims 2,337,332 1,897,949 439,383 2,612,238 (274,905)
Premises and Equipment 1,233,730 660,113 573,617 967,340 266,389
Lease Rights 21,911 21,913 (2) 21,911 -
Other Claims 1,580,633 459,170 1,121,463 1,014,480 566,153
Bills Bought 4,511 - 4,511 13,524 (9,012)
Call Loans 1,566,679 1,665,344 (98,664) 2,279,456 (712,777)
Due from Banking Account 1,856,944 2,759,313 (902,368) 2,282,224 (425,280)
Cash and Due from Banks 1,981,810 786,949 1,194,861 2,043,534 (61,724)
-----------------------------------------------------------------------------------------------------------------------------
Total Assets 50,861,008 38,718,822 12,142,186 50,221,692 639,316
=============================================================================================================================
Liabilities:
Money Trusts 19,040,432 15,235,505 3,804,926 17,678,364 1,362,067
Pension Trusts 7,489,650 6,257,142 1,232,508 7,604,453 (114,802)
Property Formation Benefit Trusts 12,125 13,130 (1,004) 12,675 (549)
Loan Trusts 1,397,152 2,252,841 (855,689) 1,997,536 (600,383)
Investment Trusts 8,192,101 8,839,452 (647,351) 5,803,288 2,388,813
Money Entrusted Other than Money Trusts 2,994,234 2,603,810 390,423 2,792,466 201,767
Securities Trusts 6,190,579 633,913 5,556,665 5,900,215 290,363
Money Claim Trusts 2,434,612 776,326 1,658,285 1,900,922 533,690
Equipment Trusts 277 525 (247) 345 (67)
Land and Fixtures Trusts 178,141 169,059 9,081 183,409 (5,268)
Other Trusts 2,931,701 1,937,113 994,587 6,348,014 (3,416,312)
-----------------------------------------------------------------------------------------------------------------------------
Total Liabilities 50,861,008 38,718,822 12,142,186 50,221,692 639,316
=============================================================================================================================
Note:
Service-Shared Co-Trusteeship started at March, 2002,at the end of the interim
business period of fiscal 2001 and at the end of the business period of fiscal
2001 mentioned The Mitsubishi Trust and Banking Corporation.
42
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(2)Supplemental Data (As of September 30, 2002)
The component items of trusts with contracts for compensating the
principal, including trusts for which the beneficiary interests are
re-entrusted for investing in trust assets, are presented below.
Money Trusts (Jointly Operated Designated Money in Trust) (in millions of Yen)
----------------------------------------------------------------------------------------------------------------------------
Assets: Liabilities:
Loans and Bills Discounted 376,753 Principal 905,619
Securities 203,183 Reserve for Possible Loan Losses 1,089
Other 327,229 Other 458
----------------------------------------------------------------------------------------------------------------------------
Total 907,166 Total 907,166
----------------------------------------------------------------------------------------------------------------------------
Loan Trusts
----------------------------------------------------------------------------------------------------------------------------
Assets: Liabilities:
Loans and Bills Discounted 592,114 Principal 1,866,390
Securities 233,107 Special Reserve Funds 11,151
Other 1,068,340 Other 16,020
----------------------------------------------------------------------------------------------------------------------------
Total 1,893,562 Total 1,893,562
----------------------------------------------------------------------------------------------------------------------------
(3)Financial Highlights [Non-Consolidated]
------------------------------------------------------------------------------------------------------------------------------
As of September 30, Increase/ As of March 31, Increase/
2002(A) 2001(B) (Decrease) 2002(C) (Decrease)
(in millions of Yen) (A) - (B) (A) - (C)
------------------------------------------------------------------------------------------------------------------------------
Total Funds 40,414,211 35,257,082 5,157,128 39,851,231 562,979
Deposits 11,166,422 10,302,021 864,400 11,275,630 (109,208)
Negotiable Certificates of Deposit 1,308,427 1,196,441 111,986 1,282,570 25,857
Money Trusts 19,040,432 15,235,505 3,804,926 17,678,364 1,362,067
Pension Trusts 7,489,650 6,257,142 1,232,508 7,604,453 (114,802)
Property Formation Benefit Trusts 12,125 13,130 (1,004) 12,675 (549)
Loan Trusts 1,397,152 2,252,841 (855,689) 1,997,536 (600,383)
Loans and Bills Discounted 9,971,451 10,192,581 (221,129) 10,424,475 (453,023)
Banking Account 8,792,477 8,902,366 (109,889) 9,041,037 (248,560)
Trust Account 1,178,974 1,290,215 (111,240) 1,383,437 (204,463)
Investment Securities 34,718,192 27,948,288 6,769,904 36,346,517 (1,628,324)
------------------------------------------------------------------------------------------------------------------------------
Note:
The balance at the end of the interim business period of fiscal
2002, 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.
43
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
6. Financial Results (The Mitsubishi Trust and Banking Corporation and
Consolidated Subsidiaries)
(in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
Six months ended Increase/ Six months ended
September 30, (Decrease) September 30,
2002 (A) (A) - (B) 2001 (B)
------------------------------------------------------------------------------------------------------------------------------------
Gross profits 151,891 6,636 145,254
(Gross ordinary profit before trust accounts charge-offs) (156,626) (1,030) (155,596)
-------------------------------------------------------------------------------------------------------------------------------
Trust fees 38,575 (2,535) 41,110
-----------------------------------------------------------------------------------------------------------------------------
Credit costs for trust accounts (1) (4,735) 5,606 (10,341)
-------------------------------------------------------------------------------------------------------------------------------
Net interest income 99,293 21,110 78,182
-------------------------------------------------------------------------------------------------------------------------------
Net fees and commissions 22,208 4,061 18,147
-------------------------------------------------------------------------------------------------------------------------------
Net trading profits 1,439 (712) 2,152
-------------------------------------------------------------------------------------------------------------------------------
Net other business income (9,625) (15,287) 5,662
-----------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on debt securities (12,320) (14,807) 2,487
------------------------------------------------------------------------------------------------------------------------------------
General and administrative expenses 82,893 4,675 78,217
------------------------------------------------------------------------------------------------------------------------------------
Net business profits before credit costs for trust accounts
and provision for formula allowance for loan losses* 73,733 (3,645) 77,378
------------------------------------------------------------------------------------------------------------------------------------
Provision for formula allowance for loan losses (2) 15,945 20,767 (4,821)
------------------------------------------------------------------------------------------------------------------------------------
Net business profits** 53,052 (18,805) 71,858
------------------------------------------------------------------------------------------------------------------------------------
Net non-recurring gains (losses) (95,724) (6,778) (88,946)
-------------------------------------------------------------------------------------------------------------------------------
Credit related costs (3) (17,407) 26,845 (44,252)
-----------------------------------------------------------------------------------------------------------------------------
Losses on loan charge-offs (6,721) 6,922 (13,643)
-----------------------------------------------------------------------------------------------------------------------------
Provision for specific allowance for loan losses (5,470) 25,767 (31,238)
-----------------------------------------------------------------------------------------------------------------------------
Provision for allowance for loans to specific foreign borrowers 595 (778) 1,373
-----------------------------------------------------------------------------------------------------------------------------
Other credit related costs (5,810) (5,066) (744)
-------------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on equity securities (70,402) (33,242) (37,159)
-----------------------------------------------------------------------------------------------------------------------------
Gains on sales of equity securities 15,767 (32,041) 47,808
-----------------------------------------------------------------------------------------------------------------------------
Losses on sales of equity securities (41,373) (23,953) (17,420)
-----------------------------------------------------------------------------------------------------------------------------
Losses on write down of equity securities (44,796) 22,751 (67,548)
-------------------------------------------------------------------------------------------------------------------------------
Equity in earnings (loss) of affiliates (2,338) (2,023) (314)
-------------------------------------------------------------------------------------------------------------------------------
Other (5,576) 1,642 (7,219)
------------------------------------------------------------------------------------------------------------------------------------
Ordinary loss (42,672) (25,584) (17,088)
------------------------------------------------------------------------------------------------------------------------------------
Net special gains 5,743 1,609 4,134
------------------------------------------------------------------------------------------------------------------------------------
Loss before income taxes and others (36,928) (23,974) (12,954)
------------------------------------------------------------------------------------------------------------------------------------
Income taxes-current 1,104 (115) 1,219
------------------------------------------------------------------------------------------------------------------------------------
Income taxes-refund 3,284 3,284 -
------------------------------------------------------------------------------------------------------------------------------------
Income taxes-deferred (1,920) 4,301 (6,221)
------------------------------------------------------------------------------------------------------------------------------------
Minority interest (297) (578) 281
------------------------------------------------------------------------------------------------------------------------------------
Net loss (32,530) (24,297) (8,233)
------------------------------------------------------------------------------------------------------------------------------------
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 - Intercompany transactions.
(Reference)
---------------------------------------------------------------------------------------------------------------------------------
Total credit costs (1)+(2)+(3) 38,088 (11,684) 49,772
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
Number of consolidated subsidiaries 30 3 27
---------------------------------------------------------------------------------------------------------------------------------
Number of affiliated companies accounted for by the equity method 13 (2) 15
---------------------------------------------------------------------------------------------------------------------------------
44
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
Financial Results (The Mitsubishi Trust and Banking Corporation)
(in millions of yen)
-----------------------------------------------------------------------------------------------------------------------------------
Six months ended Increase/ Six months ended
September 30, (Decrease) September 30,
2002 (A) (A) - (B) 2001 (B)
-----------------------------------------------------------------------------------------------------------------------------------
Gross profits 147,070 7,233 139,837
(Gross ordinary profit before trust accounts charge-offs)* (151,805) (1,626) (150,178)
-----------------------------------------------------------------------------------------------------------------------------------
Trust fees 38,575 (2,535) 41,110
-----------------------------------------------------------------------------------------------------------------------------------
Trust fees before trust accounts charge-offs* 43,310 (8,141) 51,452
-----------------------------------------------------------------------------------------------------------------------------------
Loan trusts and money trusts fees(Jointly operated designated 25,502 (7,550) 33,052
money trusts before trust accounts charge-offs)*
-----------------------------------------------------------------------------------------------------------------------------------
Other trust fees 17,808 (590) 18,399
-----------------------------------------------------------------------------------------------------------------------------------
Credit costs for trust accounts** (1) (4,735) 5,606 (10,341)
-----------------------------------------------------------------------------------------------------------------------------------
Losses on loan charge-offs (2,501) 4,921 (7,423)
-----------------------------------------------------------------------------------------------------------------------------------
Losses on sale of loans to the CCPC*** (2,010) 589 (2,600)
-----------------------------------------------------------------------------------------------------------------------------------
Other losses incurred from sales of loans (223) 94 (318)
-----------------------------------------------------------------------------------------------------------------------------------
Net interest income 97,265 20,925 76,340
-----------------------------------------------------------------------------------------------------------------------------------
Net fees and commissions 18,979 4,111 14,867
-----------------------------------------------------------------------------------------------------------------------------------
Net trading profits 771 (571) 1,342
-----------------------------------------------------------------------------------------------------------------------------------
Net other business income (8,521) (14,698) 6,176
-----------------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on debt securities (12,330) (14,817) 2,487
-----------------------------------------------------------------------------------------------------------------------------------
General and administrative expenses 78,783 3,625 75,158
-----------------------------------------------------------------------------------------------------------------------------------
Personnel expenses 36,128 4,785 31,342
-----------------------------------------------------------------------------------------------------------------------------------
Non-personnel expenses 40,764 (97) 40,862
-----------------------------------------------------------------------------------------------------------------------------------
Taxes 1,890 (1,062) 2,953
-----------------------------------------------------------------------------------------------------------------------------------
Net business profits before credit costs for trust accounts 73,022 (1,998) 75,020
and provision for formula allowance for loan losses*
-----------------------------------------------------------------------------------------------------------------------------------
Provision for formula allowance for loan losses (2) 16,519 21,363 (4,843)
-----------------------------------------------------------------------------------------------------------------------------------
Net business profits 51,767 (17,755) 69,522
-----------------------------------------------------------------------------------------------------------------------------------
Net non-recurring gains (losses) (92,871) (5,822) (87,049)
-----------------------------------------------------------------------------------------------------------------------------------
Credit related costs (3) (14,907) 26,966 (41,874)
-----------------------------------------------------------------------------------------------------------------------------------
Losses on loan charge-offs (6,396) 7,157 (13,554)
-----------------------------------------------------------------------------------------------------------------------------------
Provision for specific allowance for loan losses (3,285) 25,663 (28,949)
-----------------------------------------------------------------------------------------------------------------------------------
Provision for allowance for loans to specific foreign borrowers 595 (778) 1,373
-----------------------------------------------------------------------------------------------------------------------------------
Other credit related costs (5,820) (5,076) (744)
-----------------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on equity securities (70,420) (33,289) (37,130)
-----------------------------------------------------------------------------------------------------------------------------------
Gains on sales of equity securities 15,715 (32,122) 47,837
-----------------------------------------------------------------------------------------------------------------------------------
Losses on sales of equity securities (41,288) (23,868) (17,420)
-----------------------------------------------------------------------------------------------------------------------------------
Losses on write down of equity securities (44,846) 22,701 (67,548)
-----------------------------------------------------------------------------------------------------------------------------------
Others (7,543) 500 (8,043)
-----------------------------------------------------------------------------------------------------------------------------------
Ordinary loss (41,104) (23,578) (17,526)
-----------------------------------------------------------------------------------------------------------------------------------
Net special gains 9,205 5,063 4,142
-----------------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on sale of premises and equipment (728) (4,927) 4,198
-----------------------------------------------------------------------------------------------------------------------------------
Profit on recoveries of charged-offs claims 5,252 3,724 1,528
-----------------------------------------------------------------------------------------------------------------------------------
Expenses for Retirement Benefits (2,570) (986) (1,584)
-----------------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on sale of software 7,065 7,065 -
-----------------------------------------------------------------------------------------------------------------------------------
Loss before income taxes and others (31,898) (18,514) (13,384)
-----------------------------------------------------------------------------------------------------------------------------------
Income taxes-current 138 (283) 421
-----------------------------------------------------------------------------------------------------------------------------------
Income taxes Refund 3,210 3,210 -
-----------------------------------------------------------------------------------------------------------------------------------
Income taxes-deferred (1,267) 4,813 (6,080)
-----------------------------------------------------------------------------------------------------------------------------------
Net loss (27,558) (19,833) (7,724)
-----------------------------------------------------------------------------------------------------------------------------------
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
*** CCPC stands for the Cooperative Credit Purchasing Company, Limited.
(Reference)
-----------------------------------------------------------------------------------------------------------------------------------
Total credit costs (1)+(2)+(3) 36,162 (11,209) 47,372
-----------------------------------------------------------------------------------------------------------------------------------
45
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
7. Average interest rate spread
[Non-Consolidated] (percentage per annum)
---------------------------------------------------------------------------------------------------------------------------
For the six months ended Increase/
September 30, (Decrease)
----------------------------
2002(A) 2001(B) (A) - (B)
---------------------------------------------------------------------------------------------------------------------------
Total average interest rate on interest-earning assets (A) 2.00 2.61 (0.60)
---------------------------------------------------------------------------------------------------------------------------
Average interest rate on Loans and bills discounted 1.50 1.86 (0.35)
-----------------------------------------------------------------------------------------------------------------------
Average interest rate on Investment securities 2.24 2.48 (0.23)
---------------------------------------------------------------------------------------------------------------------------
Total average interest rate on interest-bearing liabilities (B) 0.89 1.67 (0.77)
---------------------------------------------------------------------------------------------------------------------------
Average interest rate on Deposits 0.50 1.18 (0.68)
---------------------------------------------------------------------------------------------------------------------------
Total average interest rate spread (A)-(B) 1.10 0.94 0.16
---------------------------------------------------------------------------------------------------------------------------
Average interest rate spread in domestic business segment: (percentage per annum)
---------------------------------------------------------------------------------------------------------------------------
Total average interest rate on interest-earning assets (A) 1.05 1.18 (0.13)
---------------------------------------------------------------------------------------------------------------------------
Average interest rate on Loans and bills discounted 1.23 1.25 (0.01)
-----------------------------------------------------------------------------------------------------------------------
Average interest rate on Investment securities 0.94 1.20 (0.25)
---------------------------------------------------------------------------------------------------------------------------
Total average interest rate on interest-bearing liabilities (B) 0.28 0.47 (0.19)
---------------------------------------------------------------------------------------------------------------------------
Average interest rate on Deposits 0.21 0.38 (0.16)
---------------------------------------------------------------------------------------------------------------------------
Total average interest rate spread (A)-(B) 0.77 0.71 0.06
---------------------------------------------------------------------------------------------------------------------------
8. Valuation Differences on Securities
(1) Valuation method of securities
--------------------------------------------------------------------------------
Trading securities Market value (valuation differences are
recorded as profits or loses)
--------------------------------------------------------------------------------
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 loses)
--------------------------------------------------------------------------------
(2) Valuation differences
[Consolidated]
in millions of yen)
-----------------------------------------------------------------------------------------------------------------------------------
As of September 30, 2002 As of September 30, 2001 As of March 31, 2002
---------------------------------------------------------------------------------------------------------
Valuation differences Valuation differences Valuation differences
--------------------------------------------------------------------------
Gains Losses Gains Losses Gains Losses
-------------------
(A) (A) - (B) (A) - (C) (B) (C)
-----------------------------------------------------------------------------------------------------------------------------------
Debt securities being
held to maturity 13,837 (964) 1,734 13,837 - 14,802 14,850 48 12,102 12,251 148
---------------------------------------------------------------------------------------------------------------------------------
Securities available
for sale 14,002 33,792 26,956 268,201 254,198 (19,790) 229,162 248,952 (12,953) 215,075 228,028
---------------------------------------------------------------------------------------------------------------------------------
Domestic equity
securities (146,068) (44,312) (84,527) 68,617 214,685 (101,755) 99,472 201,228 (61,540) 118,943 180,484
-------------------------------------------------------------------------------------------------------------------------------
Domestic bonds 48,210 3,796 7,492 48,469 259 44,413 45,291 878 40,717 41,607 889
-------------------------------------------------------------------------------------------------------------------------------
Other 111,861 74,308 103,991 151,114 39,253 37,552 84,398 46,845 7,869 54,524 46,655
---------------------------------------------------------------------------------------------------------------------------------
Total 27,840 32,828 28,691 282,038 254,198 (4,987) 244,013 249,000 (850) 227,326 228,177
---------------------------------------------------------------------------------------------------------------------------------
Domestic equity
securities (146,068) (44,312) (84,527) 68,617 214,685 (101,755) 99,472 201,228 (61,540) 118,943 180,484
-------------------------------------------------------------------------------------------------------------------------------
Domestic bonds 58,723 3,765 9,132 58,982 259 54,957 55,883 925 49,590 50,563 972
-------------------------------------------------------------------------------------------------------------------------------
Other 115,185 73,375 104,085 154,438 39,253 41,810 88,656 46,846 11,099 57,820 46,720
-----------------------------------------------------------------------------------------------------------------------------------
46
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
interim-period end Market Value Valuation Gains
--------------------------------------------------------------------------------
September 30, 2002 203,183 209,713 6,529
--------------------------------------------------------------------------------
Note: A fair value is given where a fair value can be calculated for a
market-value equivalent.
B. Valuation Gains of Derivative Transaction: 1,081 millions of yen
Loan Trusts
A. Market Value of Securities (in millions of yen)
---------------------------------------------------------------------------------
Trust Assets at
interim-period end Market Value Valuation Gains
---------------------------------------------------------------------------------
September 30, 2002 233,107 259,738 26,631
---------------------------------------------------------------------------------
Note: A fair value is given where a fair value can be calculated for a
market-value equivalent.
B. Valuation Gains of Derivative Transaction: 10,952 millions of yen
9. Risk-Adjusted Capital Ratio Based on the Standards of the BIS
(in billions of yen)
---------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
(Preliminary basis)
---------------------------------------------------------------------------------------------------------------------------------
(1) Risk-adjusted capital ratio 11.44% (0.10)% 0.61% 11.55% 10.83%
(2) Tier I capital 730.4 (79.3) (23.4) 809.7 753.8
(3) Tier II capital includable as
qualifying capital 561.2 (26.2) (18.5) 587.4 579.7
i) The amount of unrealized gains on
investment securities, includable as
qualifying capital 6.3 6.3 6.3 - -
ii) The amount of land revaluation excess
includable as qualifying capital (5.6) (5.6) 0.0 - (5.6)
iii) Subordinated debt 420.0 (66.0) (23.6) 486.1 443.6
(4) Deductions from total qualifying
capital 4.5 (20.5) (19.8) 25.0 24.3
(5) Total qualifying capital (2)+(3)-(4) 1,287.1 (85.0) (22.1) 1,372.1 1,309.2
(6) Risk-adjusted assets 11,242.0 (637.4) (843.2) 11,879.4 12,085.2
---------------------------------------------------------------------------------------------------------------------------------
47
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
2 Loan Portfolio and Other
Note: Figures as of September 30, 2001 include Nippon Trust Bank Limited.
1. Risk-Monitored Loans
(Nonaccrual loans, accruing loans contractually past due 3 months or more
and restructured loans)
[Non-Consolidated]
(in millions of yen)
-----------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 23,775 (23,500) (5,588) 47,276 29,364
---------------------------------------------------------------------------------------------------------------------
Past due loans 416,212 (188,729) (89,748) 604,942 505,961
---------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 362 (441) (4,891) 804 5,254
---------------------------------------------------------------------------------------------------------------------
Restructured loans 375,271 40,878 33,184 334,392 342,086
---------------------------------------------------------------------------------------------------------------------
Total 815,622 (171,792) (67,044) 987,415 882,666
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Loans and bills discounted 8,792,477 (596,234) (248,560) 9,388,712 9,041,037
-----------------------------------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
---------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 0.27% (0.23)% (0.05)% 0.50% 0.32%
---------------------------------------------------------------------------------------------------------------------
Past due loans 4.73% (1.70)% (0.86)% 6.44% 5.59%
---------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.00% (0.00)% (0.05)% 0.00% 0.05%
---------------------------------------------------------------------------------------------------------------------
Restructured loans 4.26% 0.70% 0.48% 3.56% 3.78%
---------------------------------------------------------------------------------------------------------------------
Total 9.27% (1.24)% (0.48)% 10.51% 9.76%
---------------------------------------------------------------------------------------------------------------------
[Consolidated]
(in millions of yen)
-----------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 28,649 (23,587) (5,728) 52,236 34,377
---------------------------------------------------------------------------------------------------------------------
Past due loans 420,624 (184,033) (85,194) 604,658 505,818
---------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 362 (456) (4,891) 818 5,254
---------------------------------------------------------------------------------------------------------------------
Restructured loans 375,280 40,557 32,583 334,722 342,696
---------------------------------------------------------------------------------------------------------------------
Total 824,916 (167,519) (63,231) 992,436 888,147
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Loans and bills discounted 8,822,563 (600,601) (259,378) 9,423,165 9,081,942
-----------------------------------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
--------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 0.32% (0.22)% (0.05)% 0.55% 0.37%
--------------------------------------------------------------------------------------------------------------------
Past due loans 4.76% (1.64)% (0.80)% 6.41% 5.56%
--------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.00% (0.00)% (0.05)% 0.00% 0.05%
--------------------------------------------------------------------------------------------------------------------
Restructured loans 4.25% 0.70% 0.48% 3.55% 3.77%
--------------------------------------------------------------------------------------------------------------------
Total 9.35% (1.18)% (0.42)% 10.53% 9.77%
--------------------------------------------------------------------------------------------------------------------
48
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 Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 10,129 2,540 1,709 7,589 8,419
---------------------------------------------------------------------------------------------------------------------
Past due loans 6,445 (11,824) (5,570) 18,270 12,016
---------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 1,041 (32) (58) 1,074 1,100
---------------------------------------------------------------------------------------------------------------------
Restructured loans 41,033 (3,850) (3,204) 44,884 44,237
---------------------------------------------------------------------------------------------------------------------
Total 58,650 (13,168) (7,122) 71,818 65,773
---------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Loans and bills discounted 968,867 (119,811) (154,801) 1,088,679 1,123,669
-----------------------------------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
---------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 1.04% 0.34% 0.29% 0.69% 0.74%
---------------------------------------------------------------------------------------------------------------------
Past due loans 0.66% (1.01)% (0.40)% 1.67% 1.06%
---------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.10% 0.00% 0.00% 0.09% 0.09%
---------------------------------------------------------------------------------------------------------------------
Restructured loans 4.23% 0.11% 0.29% 4.12% 3.93%
---------------------------------------------------------------------------------------------------------------------
Total 6.05% (0.54)% 0.20% 6.59% 5.85%
---------------------------------------------------------------------------------------------------------------------
[Banking: Non-Consolidated and Trust Accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 33,905 (20,960) (3,878) 54,865 37,783
---------------------------------------------------------------------------------------------------------------------
Past due loans 422,658 (200,553) (95,318) 623,212 517,977
---------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 1,404 (474) (4,949) 1,878 6,354
---------------------------------------------------------------------------------------------------------------------
Restructured loans 416,304 37,027 29,980 379,276 386,324
---------------------------------------------------------------------------------------------------------------------
Total 874,273 (184,960) (74,166) 1,059,233 948,439
---------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Loans and bills discounted 9,761,345 (716,046) (403,361) 10,477,391 10,164,706
-----------------------------------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
-----------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 0.34% (0.17)% (0.02)% 0.52% 0.37%
---------------------------------------------------------------------------------------------------------------------
Past due loans 4.32% (1.61)% (0.76)% 5.94% 5.09%
---------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.01% (0.00)% (0.04)% 0.01% 0.06%
---------------------------------------------------------------------------------------------------------------------
Restructured loans 4.26% 0.64% 0.46% 3.61% 3.80%
---------------------------------------------------------------------------------------------------------------------
Total 8.95% (1.15)% (0.37)% 10.10% 9.33%
---------------------------------------------------------------------------------------------------------------------
[Banking: Consolidated and Trust Accounts] (in millions of yen)
----------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 38,778 (21,047) (4,018) 59,825 42,796
---------------------------------------------------------------------------------------------------------------------
Past due loans 427,070 (195,857) (90,764) 622,928 517,834
---------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 1,404 (488) (4,949) 1,893 6,354
---------------------------------------------------------------------------------------------------------------------
Restructured loans 416,313 36,706 29,379 379,607 386,934
---------------------------------------------------------------------------------------------------------------------
Total 883,566 (180,687) (70,353) 1,064,254 953,920
---------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Loans and bills discounted 9,791,431 (720,412) (414,180) 10,511,844 10,205,611
-----------------------------------------------------------------------------------------------------------------------
Percentage of total loans and bills discounted
---------------------------------------------------------------------------------------------------------------------
Loans to customers in bankruptcy 0.39% (0.17)% (0.02)% 0.56% 0.41%
---------------------------------------------------------------------------------------------------------------------
Past due loans 4.36% (1.56)% (0.71)% 5.92% 5.07%
---------------------------------------------------------------------------------------------------------------------
Accruing loans contractually
past due 3 months or more 0.01% (0.00)% (0.04)% 0.01% 0.06%
---------------------------------------------------------------------------------------------------------------------
Restructured loans 4.25% 0.64% 0.46% 3.61% 3.79%
---------------------------------------------------------------------------------------------------------------------
Total 9.02% (1.10)% (0.32)% 10.12% 9.34%
---------------------------------------------------------------------------------------------------------------------
49
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
Classification of risk-monitored Loans
Classification by geographic area
[Banking:Consolidated and Trust Accounts] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------------------
Domestic* 830,015 (189,188) (97,665) 1,019,203 927,681
---------------------------------------------------------------------------------------------------------------------------------
Overseas* 53,551 8,500 27,311 45,051 26,239
----------------------------------------------------------------------------------------------------------------------------
Asia 12,423 (7,740) 1,600 20,164 10,823
-----------------------------------------------------------------------------------------------------------------------
Indonesia 6,433 (8,081) 482 14,515 5,951
Thailand 3,241 92 552 3,148 2,688
Hong Kong - (398) (103) 398 103
Other 2,748 647 668 2,101 2,080
----------------------------------------------------------------------------------------------------------------------------
United States of America 25,236 4,011 12,799 21,225 12,437
Other 15,890 12,229 12,912 3,661 2,978
---------------------------------------------------------------------------------------------------------------------------------
Total 883,566 (180,687) (70,353) 1,064,254 953,920
---------------------------------------------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
Classification by type of industry of borrowers
[Banking:Consolidated and Trust Accounts] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
---------------------------------------------------------------------------------------------------------------------------------
Domestic* 830,015 (189,188) (97,665) 1,019,203 927,681
----------------------------------------------------------------------------------------------------------------------------
Manufacturing 108,854 32,628 17,025 76,225 91,828
Construction 153,295 7,813 (6,576) 145,482 159,872
Wholesale, Retail and Restaurant 73,391 9,046 23,053 64,344 50,337
Banks and other financial institutions 24,295 (28,980) (296) 53,276 24,592
Real estate 288,991 (175,112) (109,055) 464,104 398,047
Services 105,436 (50,052) (19,438) 155,488 124,874
Other industries 52,175 13,646 1,247 38,528 50,927
Consumer 23,575 1,822 (3,625) 21,752 27,200
---------------------------------------------------------------------------------------------------------------------------------
Overseas* 53,551 8,500 27,311 45,051 26,239
----------------------------------------------------------------------------------------------------------------------------
Banks and other financial institutions - (446) (5,461) 446 5,461
Commercial and industrial 8,423 (28,630) (12,061) 37,053 20,485
Other 45,127 37,576 44,834 7,550 292
---------------------------------------------------------------------------------------------------------------------------------
Total 883,566 (180,687) (70,353) 1,064,254 953,920
---------------------------------------------------------------------------------------------------------------------------------
Note:* "Domestic" and "Overseas" are classified by domicile of borrowers.
50
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
2. Allowance for Loan Losses
[Non-Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses 370,118 (4,127) (26,940) 374,245 397,058
--------------------------------------------------------------------------------------------------------------------------
Formura allowance for loan losses 161,497 32,952 16,519 128,545 144,978
--------------------------------------------------------------------------------------------------------------------------
Specific allowance for loan losses 207,534 (35,378) (42,864) 242,913 250,399
--------------------------------------------------------------------------------------------------------------------------
Allowance for loans to specific foreign borrowers 1,085 (1,700) (595) 2,786 1,680
--------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Reserve for financial assistance to specific borrowers 250 (275) (187) 526 437
------------------------------------------------------------------------------------------------------------------------------
Reserve for losses on real estate-
collateralized loans sold 352 (18,311) 10 18,663 342
------------------------------------------------------------------------------------------------------------------------------
[Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses 375,733 (1,585) (24,244) 377,318 399,978
--------------------------------------------------------------------------------------------------------------------------
Formura allowance for loan losses 161,865 33,030 15,887 128,835 145,978
--------------------------------------------------------------------------------------------------------------------------
Specific allowance for loan losses 212,782 (32,914) (39,536) 245,697 252,319
--------------------------------------------------------------------------------------------------------------------------
Allowance for loans to specific foreign borrowers 1,085 (1,700) (595) 2,786 1,680
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Reserve for losses on real estate-
collateralized loans sold 352 (18,311) 10 18,663 342
------------------------------------------------------------------------------------------------------------------------------
[Trust accounts] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------
Special internal reserves 11,151 (4,740) (1,953) 15,891 13,104
------------------------------------------------------------------------------------------------------------------------------
Allowance for bad debts 1,089 230 195 858 893
------------------------------------------------------------------------------------------------------------------------------
3. Coverage Ratio against Risk-Monitored Loans
[Non-Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses(A) 370,118 (4,127) (26,940) 374,245 397,058
------------------------------------------------------------------------------------------------------------------------------
Reserve for financial assistance to specific
borrowers(B) 250 (275) (187) 526 437
------------------------------------------------------------------------------------------------------------------------------
Risk-monitored loans(C) 815,622 (171,792) (67,044) 987,415 882,666
------------------------------------------------------------------------------------------------------------------------------
Coverage ratio(A+B)/(C) 45.40% 7.45% 0.37% 37.95% 45.03%
------------------------------------------------------------------------------------------------------------------------------
[Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses(A) 375,733 (1,585) (24,244) 377,318 399,978
------------------------------------------------------------------------------------------------------------------------------
Risk-monitored loans(B) 824,916 (167,519) (63,231) 992,436 888,147
------------------------------------------------------------------------------------------------------------------------------
Coverage ratio(A)/(B) 45.54% 7.52% 0.51% 38.01% 45.03%
------------------------------------------------------------------------------------------------------------------------------
51
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
4. Disclosed Claims under the Financial Reconstruction Law ("FRL")
[Banking:Non-Consolidated] (in millions of yen)
-----------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
-----------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially bankrupt debtors 43,117 (64,546) (33,162) 107,664 76,279
-----------------------------------------------------------------------------------------------------------------------------
Claims under high risk 393,477 (172,002) (85,858) 565,479 479,335
-----------------------------------------------------------------------------------------------------------------------------
Claims under close observation 380,887 45,628 33,490 335,258 347,396
-----------------------------------------------------------------------------------------------------------------------------
Total (1) 817,481 (190,920) (85,530) 1,008,401 903,012
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Normal claims 8,438,129 (576,630) (235,536) 9,014,759 8,673,665
-----------------------------------------------------------------------------------------------------------------------------
[Trust accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
-----------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially bankrupt debtors 17,404 (6,987) (3,051) 24,391 20,455
-----------------------------------------------------------------------------------------------------------------------------
Claims under high risk 7,850 (7,225) (4,314) 15,076 12,164
-----------------------------------------------------------------------------------------------------------------------------
Claims under close observation 33,395 1,044 242 32,350 33,152
-----------------------------------------------------------------------------------------------------------------------------
Total (1) 58,650 (13,168) (7,122) 71,818 65,773
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Normal claims 910,217 (106,643) (147,679) 1,016,860 1,057,896
-----------------------------------------------------------------------------------------------------------------------------
[Banking:Non-Consolidated and Trust accounts] (in millions of yen)
-----------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
-----------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially bankrupt debtors 60,521 (71,534) (36,213) 132,056 96,735
-----------------------------------------------------------------------------------------------------------------------------
Claims under high risk 401,327 (179,227) (90,172) 580,555 491,500
-----------------------------------------------------------------------------------------------------------------------------
Claims under close observation 414,282 46,673 33,733 367,608 380,549
-----------------------------------------------------------------------------------------------------------------------------
Total (1) 876,131 (204,088) (92,653) 1,080,220 968,785
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Normal claims 9,348,346 (683,273) (383,215) 10,031,620 9,731,562
-----------------------------------------------------------------------------------------------------------------------------
52
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
5. Status of Secured Coverage on Disclosed Claims under the FRL
[Banking:Non-Consolidated] (in millions of yen)
-------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
-------------------------------------------------------------------------------------------------------------------------------
Secured coverage amount (2) 637,202 (146,286) (98,604) 783,488 735,806
---------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses 256,953 (25,663) (37,692) 282,617 294,646
---------------------------------------------------------------------------------------------------------------------------
Reserve for financial support to specific borrowers 250 (275) (187) 526 437
---------------------------------------------------------------------------------------------------------------------------
Collateral, guarantees, etc. 379,997 (120,347) (60,724) 500,344 440,722
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
Secured coverage ratio (2)/(1) 77.94% 0.25% (3.53)% 77.69% 81.48%
-------------------------------------------------------------------------------------------------------------------------------
[Trust accounts] (in millions of yen)
-------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
-------------------------------------------------------------------------------------------------------------------------------
Secured coverage amount (2) 38,671 (21,540) (13,542) 60,212 52,214
---------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses - - - - -
---------------------------------------------------------------------------------------------------------------------------
Reserve for financial support to specific borrowers - - - - -
---------------------------------------------------------------------------------------------------------------------------
Collateral, guarantees, etc. 38,671 (21,540) (13,542) 60,212 52,214
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
Secured coverage ratio (2)/(1) 65.93% (17.90)% (13.44)% 83.84% 79.38%
-------------------------------------------------------------------------------------------------------------------------------
[Banking:Non-Consolidated and Trust accounts] (in millions of yen)
-------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
-------------------------------------------------------------------------------------------------------------------------------
Secured coverage amount (2) 675,873 (167,827) (112,146) 843,701 788,020
---------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses 256,953 (25,663) (37,692) 282,617 294,646
---------------------------------------------------------------------------------------------------------------------------
Reserve for financial support to specific borrowers 250 (275) (187) 526 437
---------------------------------------------------------------------------------------------------------------------------
Collateral, guarantees, etc. 418,669 (141,888) (74,267) 560,557 492,936
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
Secured coverage ratio (2)/(1) 77.14% (0.96)% (4.19)% 78.10% 81.34%
-------------------------------------------------------------------------------------------------------------------------------
53
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
Secured Coverage of each category of Disclosed Claims under the FRL
[Banking:Non-Consolidated] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------------
Reserve for Collectable
Allowance financial amount by Coverage ratio Coverage ratio
Category Disclosed for loan support to collateralized [(B)+(C)]/ [(B)+(C)+(D)]/
amount(A) losses(B) specific and guaranteed [(A)-(D)] (A)
borrowers(C) loans(D)
---------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and 43,117 2,591 - 40,525 100.00% 100.00%
substantially bankrupt debtors [76,279] [4,475] - [71,803] [100.00%] [100.00%]
---------------------------------------------------------------------------------------------------------------------------
Claims under high risk 393,477 193,422 250 160,081 82.98% 89.90%
[479,335] [236,368] [437] [207,142] [86.99%] [92.61%]
---------------------------------------------------------------------------------------------------------------------------
Claims under close observation 380,887 60,940 - 179,390 30.24% 63.09%
[347,396] [53,802] - [161,776] [28.98%] [62.05%]
---------------------------------------------------------------------------------------------------------------------------
Sub total (1) 817,481 256,953 250 379,997 58.79% 77.94%
[903,012] [294,646] [437] [440,722] [63.83%] [81.48%]
---------------------------------------------------------------------------------------------------------------------------
Normal claims 8,438,129
[8,673,665]
---------------------------------------------------------------------------------------------------------------------------
Total (2) 9,255,610
[9,576,677]
---------------------------------------------------------------------------------------------------------------------------
Sub total (1) / Total (2) 8.83%
[9.42%]
-------------------------------------------------------------------------------------------------------------------------------
Note: The upper figures are as of September 30, 2002. The lower figures
with bracket are as of March 31, 2002.
Coverage ratios for Claims under high risk and for Claims under
close observation are listed under a reserve for possible loan
losses, following concurrent application of the discount cash flow
method.
[Trust accounts] (in millions of yen)
---------------------------------------------------------------------------------------------------------------------------
Reserve for Collectable
Allowance financial amount by Coverage ratio Coverage ratio
Category Disclosed for loan support to collateralized [(B)+(C)]/ [(B)+(C)+(D)]/
amount(A) losses(B) specific and guaranteed [(A)-(D)] (A)
borrowers(C) loans(D)
---------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and 17,404 - - 17,382 99.87%
substantially bankrupt debtors [20,455] - - [20,451] [99.97%]
---------------------------------------------------------------------------------------------------------------------------
Claims under high risk 7,850 - - 5,897 75.12%
[12,164] - - [10,318] [84.81%]
---------------------------------------------------------------------------------------------------------------------------
Claims under close observation 33,395 - - 15,391 46.08%
[33,152] - - [21,445] [64.68%]
---------------------------------------------------------------------------------------------------------------------------
Sub total (1) 58,650 - - 38,671 65.93%
[65,773] - - [52,214] [79.38%]
---------------------------------------------------------------------------------------------------------------------------
Normal claims 910,217
[1,057,896]
---------------------------------------------------------------------------------------------------------------------------
Total (2) 968,867
[1,123,669]
---------------------------------------------------------------------------------------------------------------------------
Sub total (1) / Total (2) 6.05%
[5.85%]
---------------------------------------------------------------------------------------------------------------------------
Note: The upper figures are as of September 30, 2002. The lower figures
with bracket are as of March 31, 2002.
Reserves 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 substantial bankruptcy" and "Claims under
high risk" in accordance with standards applied to reserves for
possible loan losses in the banking account.
The Bank allocated a total of 12.2 billion yen to the special
internal reserve and allowance for bad debt in the trust account, as
of September 30, 2002.
[Banking: Non-Consolidated and Trust accounts] (in millions of yen)
-------------------------------------------------------------------------------------------------------------------------------
Reserve for Collectable
Allowance financial amount by Coverage ratio Coverage ratio
Category Disclosed for loan support to collateralized [(B)+(C)]/ [(B)+(C)+(D)]/
amount(A) losses(B) specific and guaranteed [(A)-(D)] (A)
borrowers(C) loans(D)
-------------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and 60,521 2,591 - 57,908 99.96%
substantially bankrupt debtors [96,735] [4,475] - [92,255] [99.99%]
-------------------------------------------------------------------------------------------------------------------------------
Claims under high risk 401,327 193,422 250 165,979 89.61%
[491,500] [236,368] [437] [217,460] [92.42%]
-------------------------------------------------------------------------------------------------------------------------------
Claims under close observation 414,282 60,940 - 194,782 61.72%
[380,549] [53,802] - [183,221] [62.28%]
-------------------------------------------------------------------------------------------------------------------------------
Sub total (1) 876,131 256,953 250 418,669 77.14%
[968,785] [294,646] [437] [492,936] [81.34%]
-------------------------------------------------------------------------------------------------------------------------------
Normal claims 9,348,346
[9,731,562]
-------------------------------------------------------------------------------------------------------------------------------
Total (2) 10,224,478
[10,700,347]
-------------------------------------------------------------------------------------------------------------------------------
Sub total (1) / Total (2) 8.56%
[9.05%]
-------------------------------------------------------------------------------------------------------------------------------
Note: The upper figures are as of September 30, 2002. The lower figures
with bracket are as of March 31, 2002.
54
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
6. Progress in the Disposal of Problem Assets [Banking:Non-Consolidated and
Trust accounts](excluding claims under close observation)
(1) Assets categorized as problem assets as of September 30, 2000 based on the FRL (in billions of yen)
-------------------------------------------------------------------------------------------------------------------------
As of As of As of As of As of ----------
September 30, March 31, September 30, March 31, September 30, (b) - (a)
2000 2001 2001 2002(a) 2002(b)
-------------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt debtors 239.2 136.2 123.5 68.9 42.7 (26.2)
-------------------------------------------------------------------------------------------------------------------------
Claims under high risk 526.7 455.5 383.3 302.2 188.2 (114.0)
-------------------------------------------------------------------------------------------------------------------------
Total 766.0 591.8 506.8 371.2 230.9 (140.2)
-------------------------------------------------------------------------------------------------------------------------
(A) (B)
Note: The figures as of September 30, 2002 include assets of 95.5 billion
yen which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
---------------------------------------------------------------
First half of fiscal 2002
-------------------------------------------------------------------
Disposition by borrower's liquidation -
-------------------------------------------------------------------
Re-constructive disposition -
-------------------------------------------------------------------
Improvements of financial status due to
re-constructive disposition 6.5
-------------------------------------------------------------------
Loan sales to secondary market 11.2
-------------------------------------------------------------------
Write-off 28.0
-------------------------------------------------------------------
Other 94.3
-------------------------------------------------------------------
Collection of claims 14.7
---------------------------------------------------------------
Improvements of financial status 79.6
-------------------------------------------------------------------
Total 140.2 (B)
-------------------------------------------------------------------
Note: "Improvements of financial status due to re-constructive disposition"
were included in "Other" in the disclosure for the year ended March
31, 2001.
(2) Assets newly categorized as problem assets during second half of fiscal 2000 based on the FRL (in billions of yen)
--------------------------------------------------------------------------------------------------------------
As of As of As of As of ------------
March 31, September 30, March 31, September 30, (b) - (a)
2001 2001 2002(a) 2002(b)
--------------------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt debtors 11.0 5.5 4.8 2.8 (1.9)
--------------------------------------------------------------------------------------------------------------
Claims under high risk 133.7 117.5 91.4 76.7 (14.6)
--------------------------------------------------------------------------------------------------------------
Total 144.8 123.0 96.3 79.6 (16.6)
--------------------------------------------------------------------------------------------------------------
(C) (D)
Note: The figures as of September 30, 2002 include assets of 3.0 billion yen
which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
--------------------------------------------------------------------
First half of fiscal 2002
--------------------------------------------------------------------
Disposition by borrower's liquidation 0.0
--------------------------------------------------------------------
Re-constructive disposition -
--------------------------------------------------------------------
Improvements of financial status due to
re-constructive disposition -
--------------------------------------------------------------------
Loan sales to secondary market 0.5
--------------------------------------------------------------------
Write-off 3.6
--------------------------------------------------------------------
Other 12.4
----------------------------------------------------------------
Collection of claims 7.2
----------------------------------------------------------------
Improvements of financial status 5.1
--------------------------------------------------------------------
Total 16.6 (D)
--------------------------------------------------------------------
Note: "Improvements of financial status due to re-constructive disposition"
were included in "Other" in the disclosure for the year ended March
31, 2001.
(3) Assets newly categorized as problem assets during first half of fiscal 2001 based on the FRL (in billions of yen)
--------------------------------------------------------------------------------------------------------------
As of As of As of ----------------
September 30, March 31, September 30, (b) - (a)
2001 2002(a) 2002(b)
--------------------------------------------------------------------------------------------------------------
Claims to bankrupt and
substantially bankrupt debtors 3.0 16.4 1.5 (14.9)
--------------------------------------------------------------------------------------------------------------
Claims under high risk 79.6 29.7 21.2 (8.4)
--------------------------------------------------------------------------------------------------------------
Total 82.7 46.2 22.8 (23.3)
--------------------------------------------------------------------------------------------------------------
(E) (F)
Note: The figures as of September 30, 2002 include assets of 1.7 billion yen
which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
----------------------------------------------------------------
First half of fiscal 2002
--------------------------------------------------------------------
Disposition by borrower's liquidation -
--------------------------------------------------------------------
Re-constructive disposition -
--------------------------------------------------------------------
Improvements of financial status due to
re-constructive disposition -
--------------------------------------------------------------------
Loan sales to secondary market 1.0
--------------------------------------------------------------------
Write-off 0.9
--------------------------------------------------------------------
Other 21.3
----------------------------------------------------------------
Collection of claims 20.6
----------------------------------------------------------------
Improvements of financial status 0.7
--------------------------------------------------------------------
Total 23.3 (F)
--------------------------------------------------------------------
55
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(4) Assets newly categorized as problem assets during second half of fiscal 2001
based on the FRL
(in billions of yen)
--------------------------------------------------------------------------------
As of As of
March 31, September 30, (b) - (a)
2002(a) 2002(b)
--------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 6.3 8.9 2.5
--------------------------------------------------------------------------------
Claims under high risk 68.0 28.4 (39.6)
--------------------------------------------------------------------------------
Total 74.4 37.3 (37.0)
--------------------------------------------------------------------------------
(G) (H)
Note: The figures as of September 30, 2002 include assets of 9.0 billion yen
which facilitates the final disposal of problem assets.
Progress in the disposal of problem assets (in billions of yen)
----------------------------------------------------------------------
First half of fiscal 2002
----------------------------------------------------------------------
Disposition by borrower's liquidation -
----------------------------------------------------------------------
Re-constructive disposition -
----------------------------------------------------------------------
Improvements of financial status due to -
re-constructive disposition
----------------------------------------------------------------------
Loan sales to secondary market 0.9
----------------------------------------------------------------------
Write-off 17.7
----------------------------------------------------------------------
Other 18.3
----------------------------------------------------------------------
Collection of claims 9.9
----------------------------------------------------------------------
Improvements of financial status 8.4
----------------------------------------------------------------------
Total 37.0 (H)
----------------------------------------------------------------------
(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
--------------------------------------------------------------------
Claims to bankrupt and substantially 4.3
bankrupt debtors
--------------------------------------------------------------------
Claims under high risk 86.6
--------------------------------------------------------------------
Total 90.9 (I)
--------------------------------------------------------------------
Note: The figures as of September 30, 2002 include assets of 1.8 billion yen
which facilitates the final disposal of problem assets.
(Reference)
The transition of problem assets based on the FRL (in billions of yen)
-----------------------------------------------------------------------------------------------------------------------
As of As of As of As of As of
September 30, March 31, September 30, March 31, September 30, (b) - (a)
2000(a) 2001 2001 2002 2002(b)
-----------------------------------------------------------------------------------------------------------------------
Claims to bankrupt and substantially
bankrupt debtors 239.2 147.3 132.0 96.7 60.5 (178.7)
-----------------------------------------------------------------------------------------------------------------------
Claims under high risk 526.7 589.2 580.5 491.5 401.3 (125.4)
-----------------------------------------------------------------------------------------------------------------------
Total 766.0 736.6 712.6 588.2 461.8 (304.1)(J=A+C+E+G+I)
-----------------------------------------------------------------------------------------------------------------------
56
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
7. Classification of Loans by Type of Industry
(1) Loan by type of industry [Banking: Non-Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------------
Domestic offices (excluding loans booked
at offshore markets 8,184,795 (303,576) (46,044) 8,488,372 8,230,839
------------------------------------------------------------------------------------------------------------------------------------
Manufacturing 1,192,414 (17,774) (49,303) 1,210,188 1,241,717
Agriculture 1,374 (299) (90) 1,673 1,464
Forestry 100 - - 100 100
Fishery 16,438 5,779 4,071 10,659 12,367
Mining 6,723 (1,475) (552) 8,198 7,275
Construction 294,148 (33,716) (11,090) 327,864 305,238
Utilities 127,391 (22,367) 2,971 149,758 124,420
Transportation and Communication 768,705 135,775 149,439 632,930 619,266
Wholesale, Retail and Restaurant 800,925 (110,959) (37,537) 911,884 838,462
Banks and other financial institutions 2,106,555 300,116 226,617 1,806,439 1,879,938
Real estate 1,182,844 (162,261) (122,354) 1,345,105 1,305,198
Services 853,118 (171,204) (65,166) 1,024,322 918,284
Municipal government 260,671 (105,979) 35,444 366,650 225,227
Other industries 573,383 (119,201) (178,491) 692,584 751,874
------------------------------------------------------------------------------------------------------------------------------------
Overseas offices and loans booked at
offshore markets 607,681 (292,658) (202,515) 900,340 810,197
------------------------------------------------------------------------------------------------------------------------------------
Total 8,792,477 (596,234) (248,560) 9,388,712 9,041,037
------------------------------------------------------------------------------------------------------------------------------------
(2) Domestic consumer loans [Banking: Non-Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------------
Total domestic consumer loans 239,135 (6,603) (584) 245,739 239,719
------------------------------------------------------------------------------------------------------------------------------------
Housing loans 220,458 582 14,166 219,876 206,292
------------------------------------------------------------------------------------------------------------------------------------
Others 18,676 (7,186) (14,750) 25,862 33,427
------------------------------------------------------------------------------------------------------------------------------------
(3) Domestic loans to small and medium-sized companies [Banking: Non-Consolidated] (in millions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------------------------
Domestic loans to small and medium-sized companies 3,613,013 (27,173) (23,910) 3,640,186 3,636,923
------------------------------------------------------------------------------------------------------------------------------------
Percentage to total domestic loans 44.14% 1.25% (0.04)% 42.88% 44.18%
------------------------------------------------------------------------------------------------------------------------------------
57
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(4) Loan by type of industry [Trust accounts] (in millions of yen)
----------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
----------------------------------------------------------------------------------------------------------------
Domestic offices (excluding loans
booked at offshore markets) 1,178,974 (123,569) (204,463) 1,302,544 1,383,437
---------------------------------------------------------------------------------------------------------------
Manufacturing 79,476 (16,516) (24,019) 95,992 103,495
Agriculture - - - - -
Forestry 33 (8) (4) 41 37
Fishery 957 (790) (385) 1,747 1,342
Mining 223 (637) (98) 860 321
Construction 11,837 (10,070) (6,097) 21,907 17,934
Utilities 152,233 (30,779) (25,296) 183,012 177,529
Transportation and Communication 160,084 (4,257) (12,309) 164,341 172,393
Wholesale, Retail and Restaurant 15,269 (14,148) (9,880) 29,417 25,149
Banks and other financial institutions 148,887 72,733 86,912 76,154 61,975
Real estate 89,161 (44,203) (22,618) 133,364 111,779
Services 67,995 (4,852) (17,080) 72,847 85,075
Municipal government 40,453 (1,923) (891) 42,376 41,344
Other industries 412,359 (68,115) (172,697) 480,474 585,056
----------------------------------------------------------------------------------------------------------------
Overseas offices and loans booked
at offshore markets - - - - -
----------------------------------------------------------------------------------------------------------------
Total 1,178,974 (123,569) (204,463) 1,302,544 1,383,437
----------------------------------------------------------------------------------------------------------------
(5) Domestic consumer loans [Trust accounts] (in millions of yen)
----------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
----------------------------------------------------------------------------------------------------------------
Total domestic consumer loans 291,362 (49,775) (25,250) 341,137 316,612
-------------------------------------------------------------------------------------------------------------
Housing loans 287,524 (48,504) (24,697) 336,028 312,222
-------------------------------------------------------------------------------------------------------------
Others 3,837 (1,270) (552) 5,108 4,390
----------------------------------------------------------------------------------------------------------------
(6) Domestic loans to small and medium-sized companies [Trust accounts] (in millions of yen)
----------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Domestic loans to small and medium-sized
companies 670,002 (34,352) (113,603) 704,354 783,605
----------------------------------------------------------------------------------------------------------------
Percentage to total domestic loans 56.82% 2.75% 0.18% 54.07% 56.64%
----------------------------------------------------------------------------------------------------------------
58
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
(7) Loan by type of industry [Banking: Non-Consolidated and Trust accounts] (in millions of yen)
------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------
Domestic offices (excluding loans
booked at offshore markets) 9,363,769 (427,146) (250,507) 9,790,916 9,614,277
-----------------------------------------------------------------------------------------------------------------
Manufacturing 1,271,890 (34,291) (73,323) 1,306,181 1,345,213
Agriculture 1,374 (299) (90) 1,673 1,464
Forestry 133 (8) (4) 141 137
Fishery 17,395 4,989 3,686 12,406 13,709
Mining 6,947 (2,111) (650) 9,058 7,597
Construction 305,985 (43,786) (17,188) 349,771 323,173
Utilities 279,625 (53,146) (22,325) 332,771 301,950
Transportation and Communication 928,790 131,518 137,130 797,272 791,660
Wholesale, Retail and Restaurant 816,195 (125,109) (47,418) 941,304 863,613
Banks and other financial institutions 2,255,443 372,849 313,529 1,882,594 1,941,914
Real estate 1,272,005 (206,465) (144,972) 1,478,470 1,416,977
Services 921,114 (176,055) (82,246) 1,097,169 1,003,360
Municipal government 301,125 (107,901) 34,553 409,026 266,572
Other industries 985,743 (187,315) (351,188) 1,173,058 1,336,931
------------------------------------------------------------------------------------------------------------------
Overseas offices and loans booked
at offshore markets 607,681 (292,658) (202,515) 900,340 810,197
------------------------------------------------------------------------------------------------------------------
Total 9,971,451 (719,804) (453,023) 10,691,256 10,424,475
------------------------------------------------------------------------------------------------------------------
(8) Domestic consumer loans [Banking: Non-Consolidated and Trust accounts] (in millions of yen)
------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------------
Total domestic consumer loans 530,497 (56,378) (25,834) 586,876 556,332
-----------------------------------------------------------------------------------------------------------------
Housing loans 507,983 (47,921) (10,531) 555,905 518,514
---------------------------------------------------------------------------------------------------------------
Others 22,514 (8,457) (15,303) 30,971 37,817
------------------------------------------------------------------------------------------------------------------
(9) Domestic loans to small and medium-sized companies [Banking: Non-Consolidated and Trust accounts] (in millions of yen)
--------------------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
--------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------
Domestic loans to small and medium-sized
companies 4,283,015 (61,525) (137,514) 4,344,540 4,420,529
--------------------------------------------------------------------------------------------------------------------------
Percentage to total domestic loans 45.74% 1.36% (0.23)% 44.37% 45.97%
--------------------------------------------------------------------------------------------------------------------------
59
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
8. Loans and deposits [Non-Consolidated]
(in millions of yen)
------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------
Deposits (ending balance) 11,166,422 470,318 (109,208) 10,696,103 11,275,630
------------------------------------------------------------------------------------------------------------
Deposits (average balance) 11,094,165 186,767 259,106 10,907,398 10,835,059
------------------------------------------------------------------------------------------------------------
Loans (ending balance) 8,792,477 (596,234) (248,560) 9,388,712 9,041,037
------------------------------------------------------------------------------------------------------------
Loans (average balance) 8,821,481 (392,890) (253,106) 9,214,372 9,074,587
------------------------------------------------------------------------------------------------------------
9. Domestic deposits [Non-Consolidated]
(in millions of yen)
------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------
Domestic deposits 9,682,118 572,314 111,172 9,109,804 9,570,945
------------------------------------------------------------------------------------------------------------
Individuals 6,504,473 687,523 259,001 5,816,949 6,245,471
----------------------------------------------------------------------------------------------------------
Corporations and others 3,177,644 (115,209) (147,829) 3,292,854 3,325,474
------------------------------------------------------------------------------------------------------------
Note: Excluding negotiable of certificates deposit, deposits of overseas
offices, and JOM accounts.
10. Number of Employees [Non-Consolidated]
(in millions of yen)
------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------
Number of Employees 6,451 (270) (90) 6,721 6,541
------------------------------------------------------------------------------------------------------------
Note: Amounts at September 30, 2001 are aggregate numbers of Mitsubishi
Trust, Nippon Trust and Tokyo Trust.
11. Number of Offices [Non-Consolidated]
(in millions of yen)
------------------------------------------------------------------------------------------------------------
As of Increase/ Increase/ As of As of
September 30, (Decrease) (Decrease) September 30, March 31,
2002 (A) (A) - (B) (A) - (C) 2001 (B) 2002 (C)
------------------------------------------------------------------------------------------------------------
Domestic: 55 (14) - 69 55
----------------------------------------------------------------------------------------------------------
Head office and Branches 51 (5) - 56 51
Sub Branches & Agencies 4 (9) - 13 4
------------------------------------------------------------------------------------------------------------
Overseas: 8 - - 8 8
----------------------------------------------------------------------------------------------------------
Branches 5 - - 5 5
Sub - branches - - - - -
Representative offices 3 - - 3 3
------------------------------------------------------------------------------------------------------------
Total 63 (14) - 77 63
------------------------------------------------------------------------------------------------------------
Note: Amounts at September 30, 2001 are aggregate numbers of Mitsubishi Trust,
Nippon Trust and Tokyo Trust.
60
Mitsubishi Tokyo Financial Group, Inc.
(The Mitsubishi Trust and Banking Corporation)
12. Earning Projections for the Fiscal Year Ending March 31, 2003
[Consolidated] (in billions of yen)
----------------------------------------------------------------------------------
For the year ending For the six months ended
March 31, 2003 September 30, 2002
----------------------------------------------------------------------------------
Ordinary income 600.0 293.2
----------------------------------------------------------------------------------
Ordinary loss (55.0) (42.6)
----------------------------------------------------------------------------------
Net loss (50.0) (32.5)
----------------------------------------------------------------------------------
[Non-Consolidated] (in billions of yen)
----------------------------------------------------------------------------------
For the year ending For the six months ended
March 31, 2003 September 30, 2002
----------------------------------------------------------------------------------
Ordinary income 570.0 277.7
----------------------------------------------------------------------------------
Net business profits before
credit costs for trust accounts
and provision for formula
allowance for loan losses 145.0 73.0
----------------------------------------------------------------------------------
Ordinary loss (55.0) (41.1)
----------------------------------------------------------------------------------
Net loss (45.0) (27.5)
----------------------------------------------------------------------------------
61
Mitsubishi Tokyo Financial Group, Inc.
Interim Financial Highlights under Japanese GAAP
for the Fiscal Year Ending March 31, 2003
1. Consolidated Financial Results for the Six Months Ended September 30,
2002
(in billions of yen except percentages)
------------------------------------------------------------------------------------------------------------------------
Six months ended Six months ended
September 30, 2001 (A) September 30, 2002 (B) (B) - (A)
------------------------------------------------------------------------------------------------------------------------
1 Gross profits 856.6 846.0 (10.6)
----------------------------------------------------------------------------------------------------------------------
2 Net interest income 545.9 522.2 (23.7)
----------------------------------------------------------------------------------------------------------------------
3 Trust fees 56.4 47.9 (8.4)
-------------------------------------------------------------------------------------------------------------------
4 Credit costs for trust accounts (10.3) (4.7) 5.6
----------------------------------------------------------------------------------------------------------------------
5 Net fees and commissions 165.4 168.2 2.8
----------------------------------------------------------------------------------------------------------------------
6 Net trading profits 22.5 43.7 21.2
----------------------------------------------------------------------------------------------------------------------
7 Net other business income 66.3 63.9 (2.4)
------------------------------------------------------------------------------------------------------------------------
8 General and administrative expenses 480.7 482.4 1.7
------------------------------------------------------------------------------------------------------------------------
9 Net business profits before credit costs for trust
accounts and provision for formula allowance for loan losses 386.3 368.3 (18.0)
========================================================================================================================
10 Provision for formula allowance for loan losses 18.6 74.0 55.4
========================================================================================================================
11 Net business profits 357.3 289.4 (67.8)
------------------------------------------------------------------------------------------------------------------------
12 Net non-recurring gains (losses) (647.4) (482.7) 164.6
----------------------------------------------------------------------------------------------------------------------
13 Credit related costs (284.9) (146.8) 138.1
-------------------------------------------------------------------------------------------------------------------
14 Losses on loan charge-offs (107.5) (98.7) 8.7
===================================================================================================================
15 Provision for specific allowance for loan losses (169.9) 3.8 173.8
===================================================================================================================
16 Losses on sales of loans to the Resolution and
Collection Corporation (0.5) (44.1) (43.6)
===================================================================================================================
17 Other credit related costs (6.9) (7.7) (0.8)
----------------------------------------------------------------------------------------------------------------------
18 Net gains (losses) on equity securities (321.3) (242.9) 78.4
-------------------------------------------------------------------------------------------------------------------
19 Gains on sales of equity securities 61.2 56.9 (4.2)
===================================================================================================================
20 Losses on sales of equity securities (32.8) (98.1) (65.2)
===================================================================================================================
21 Losses on write down of equity securities 349.7) (201.7) 148.0
======================================================================================================================
22 Other (41.1) (93.0) (51.9)
-------------------------------------------------------------------------------------------------------------------
23 Foreign exchange loss on convertible bond - (43.6) (43.6)
------------------------------------------------------------------------------------------------------------------------
24 Ordinary loss (290.0) (193.3) 96.7
------------------------------------------------------------------------------------------------------------------------
25 Net special gains 14.1 12.8 (1.2)
------------------------------------------------------------------------------------------------------------------------
26 Loss before income taxes and others (275.9) (180.4) 95.5
------------------------------------------------------------------------------------------------------------------------
27 Income taxes-current 51.5 31.9 (19.6)
========================================================================================================================
28 Income taxes-deferred (239.4) (27.0) 212.3
======================================================================================================================
29 Gains on stock-for-stock exchange of Nippon Trust Bank,
Limited (105.6) - 105.6
------------------------------------------------------------------------------------------------------------------------
30 Minority interest 8.7 2.7 (5.9)
------------------------------------------------------------------------------------------------------------------------
31 Net loss (96.8) (188.0) (91.2)
------------------------------------------------------------------------------------------------------------------------
32 Total credit costs (4+10+13) 313.9 225.6 (88.2)
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
As of March 31, As of September 30, (B) - (A)
2002 (A) 2002 (B)
------------------------------------------------------------------------------------------------------------------------
33 BIS risk-adjusted capital ratio 10.31% 10.49% 0.18%
------------------------------------------------------------------------------------------------------------------------
[Reference] Standard for write down of marketable equity securities
==========================================================================================================================
Decline in market value compared
Issuer classification to cost Less than 30% 30% - 50% 50% or more
--------------------------------------------------------------------------------------------------------------------------
Normal No write down write down write down
--------------------------------------------------------------------------------------------------------------------------
Close watch No write down write down write down
--------------------------------------------------------------------------------------------------------------------------
Legally bankrupt, virtually bankrupt or likely to become bankrupt write down write down write down
--------------------------------------------------------------------------------------------------------------------------
-1-
Mitsubishi Tokyo Financial Group, Inc.
2. Highlights of Consolidated Balance Sheets
(in billions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of March 31, As of September 30,
2002 (A) 2002 (B) (B) - (A)
------------------------------------------------------------------------------------------------------------------------------------
1 Loans and bills discounted 49,062.7 46,961.8 (2,100.9)
--------------------------------------------------------------------------------------------------------------------------------
2 Total of the two Banks * 44,661.8 42,955.9 (1,705.9)
------------------------------------------------------------------------------------------------------------------------------
3 Overseas branches 6,579.6 5,794.3 (785.3)
------------------------------------------------------------------------------------------------------------------------------
4 Domestic loans to small and medium-sized companies 21,641.6 20,885.6 (755.9)
-----------------------------------------------------------------------------------------------------------------------------
5 Domestic housing loans 6,376.0 6,697.6 321.6
--------------------------------------------------------------------------------------------------------------------------------
6 UnionBanCal Corporation 3,290.6 3,064.0 (226.6)
--------------------------------------------------------------------------------------------------------------------------------
7 Bank of Tokyo-Mitsubishi Trust Company 435.0 270.7 (164.3)
--------------------------------------------------------------------------------------------------------------------------------
8 Book value of loans sold during the six months then ended (30.8) (224.0) (193.2)
------------------------------------------------------------------------------------------------------------------------------
9 Sold to the Resolution and Collection Corporation ("RCC") (1.2) (135.2) (133.9)
------------------------------------------------------------------------------------------------------------------------------
10 [Sold to the RCC before charge-offs] [(8.6)] [(326.7)] [(318.1)]
------------------------------------------------------------------------------------------------------------------------------
11 Other loans sold (29.5) (88.8) (59.2)
-----------------------------------------------------------------------------------------------------------------------------
12 Charge-offs during the six months then ended (129.1) (122.7) 6.3
------------------------------------------------------------------------------------------------------------------------------
13 Investment securities 23,109.7 23,118.9 9.2
--------------------------------------------------------------------------------------------------------------------------------
14 Domestic equity securities 5,138.6 4,061.4 (1,077.1)
------------------------------------------------------------------------------------------------------------------------------
15 Japanese Government Bonds (total of the two Banks *) 9,347.6 9,522.6 175.0
------------------------------------------------------------------------------------------------------------------------------
16 Foreign bonds (total of the two Banks *) 4,543.6 5,700.0 1,156.3
------------------------------------------------------------------------------------------------------------------------------
17 Book value of investment securities sold during the six months then ended (238.5) (563.4) (324.9)
------------------------------------------------------------------------------------------------------------------------------
18 Transferred to an exchange-traded fund -- (366.1) (366.1)
------------------------------------------------------------------------------------------------------------------------------
19 Sold in the market (238.5) (197.3) 41.2
------------------------------------------------------------------------------------------------------------------------------
20 Write down during the six months then ended (349.7) (201.7) 148.0
------------------------------------------------------------------------------------------------------------------------------
21 Deferred tax assets 1,032.1 1,120.6 88.5
--------------------------------------------------------------------------------------------------------------------------------
22 Allowance for loan losses 796.4 722.9 (73.4)
------------------------------------------------------------------------------------------------------------------------------
23 Write down of Investment securities 111.3 70.5 (40.7)
------------------------------------------------------------------------------------------------------------------------------
24 Net operating loss carryforwards 76.6 265.6 188.9
------------------------------------------------------------------------------------------------------------------------------
25 Other (primary accrued severance indemnities and pension liabilities) 47.7 61.5 13.8
--------------------------------------------------------------------------------------------------------------------------------
26 Total assets 99,496.8 97,119.6 (2,377.1)
--------------------------------------------------------------------------------------------------------------------------------
27 Deposits 59,907.3 60,110.1 202.7
-------------------------------------------------------------------------------------------------------------------------------
28 Total of the two Banks * 56,617.6 56,882.0 264.3
------------------------------------------------------------------------------------------------------------------------------
29 Overseas branches 7,079.4 6,220.9 (858.4)
------------------------------------------------------------------------------------------------------------------------------
30 Individuals 29,509.8 30,888.4 1,378.5
------------------------------------------------------------------------------------------------------------------------------
31 Corporations and others 19,325.2 19,139.8 (185.4)
------------------------------------------------------------------------------------------------------------------------------
32 Capital stock 1,146.5 1,146.5 --
-------------------------------------------------------------------------------------------------------------------------------
33 Capital surplus 834.6 835.0 0.4
-------------------------------------------------------------------------------------------------------------------------------
34 Retained earnings 1,189.7 944.2 (245.4)
-------------------------------------------------------------------------------------------------------------------------------
35 Land revaluation excess 201.6 198.5 (3.0)
-------------------------------------------------------------------------------------------------------------------------------
36 Unrealized gains (losses) on securities available for sale 84.0 (9.5) (93.5)
-------------------------------------------------------------------------------------------------------------------------------
37 Foreign currency translation adjustments (26.6) (81.2) (54.5)
-------------------------------------------------------------------------------------------------------------------------------
38 Less treasury stock (105.3) (98.7) 6.6
--------------------------------------------------------------------------------------------------------------------------------
39 Total shareholders' equity 3,324.4 2,934.9 (389.5)
---------------------------------------------------------------------------------------------------------------------------------
[Valuation gains (losses) on securities available for sale and interest
rate-related derivatives qualified for hedge-accounting]
(in billions of yen)
------------------------------------------------------------------------------------------------------------------------------------
As of March 31, As of September 30,
2002 (A) 2002 (B) (B) - (A)
------------------------------------------------------------------------------------------------------------------------------------
40 Domestic equity securities 71.4 (221.9) (293.3)
------------------------------------------------------------------------------------------------------------------------------
41 Domestic bonds 79.7 96.1 16.4
------------------------------------------------------------------------------------------------------------------------------
42 Japanese Government Bonds 58.4 73.2 14.7
------------------------------------------------------------------------------------------------------------------------------
43 Foreign equity securities 25.9 19.5 (6.4)
---------------------------------------------------------------------------------------------------------------------------------
44 Foreign bonds 0.8 171.9 171.1
---------------------------------------------------------------------------------------------------------------------------------
45 Other (39.1) (83.1) (43.9)
---------------------------------------------------------------------------------------------------------------------------------
46 Total securities available for sale 138.8 (17.4) (156.2)
---------------------------------------------------------------------------------------------------------------------------------
47 Interest rate-related derivatives qualified for hedge accounting 92.5 120.9 28.4
---------------------------------------------------------------------------------------------------------------------------------
* "Total of the two Banks" represents the aggregated non-consolidated figures of
The Bank of Tokyo-Mitsubishi, Ltd. and The Mitsubishi Trust and Banking
Corporation.
-2-
Mitsubishi Tokyo Financial Group, Inc.
3. Disclosed Claims under the Financial Reconstruction Law ("FRL")
[GRAPH]
(1) Status of Disclosed Claim under the FRL [prompt report] (in billions of yen)
-----------------------------------------------------------------------------------------------------------------------------
As of As of As of
September 30, March 31, September 30, Increase/(Decrease)
---------------------
2001 (A) 2002 (B) 2002 (C) (C)-(A) (C)-(B)
-----------------------------------------------------------------------------------------------------------------------------
1 Claims to bankrupt and substantially bankrupt debtors 408.1 419.0 402.1 (6.0) (16.9)
-----------------------------------------------------------------------------------------------------------------------------
2 Claims under high risk 2,171.4 1,933.5 1,386.6 (784.8) (546.9)
-----------------------------------------------------------------------------------------------------------------------------
3 Claims under close observation 2,059.3 1,916.8 1,886.2 (173.0) (30.5)
-----------------------------------------------------------------------------------------------------------------------------
4 Total Disclosed Claims (A) 4,639.0 4,269.4 3,675.0 (963.9) (594.4)
-----------------------------------------------------------------------------------------------------------------------------
5 Total Credit Exposure (B) 50,520.7 52,401.4 49,906.9 (613.7) (2,494.4)
-----------------------------------------------------------------------------------------------------------------------------
6 Disclosed Claims Ratio (A/B) 9.1% 8.1% 7.3% (1.8%) (0.7%)
-----------------------------------------------------------------------------------------------------------------------------
(2) Status of Non Performing Assets [prompt report]
(1) Six months results ending September 30, 2002 (in billions of yen)
-----------------------------------------------------------------------------------------------------------------------------
As of
As of September 30,
March 31, Inflow Outflow 2002 Net increase
--------------
2001 (A) (B) (C) (A)+(B)+(C) (B)-(C)
-----------------------------------------------------------------------------------------------------------------------------
7 Claims to bankrupt and substantially bankrupt debtors 419.0 28.9 (45.9) 402.1 (16.9)
-----------------------------------------------------------------------------------------------------------------------------
8 Claims under high risk 1,933.5 366.5 (913.4) 1,386.6 (546.9)
-----------------------------------------------------------------------------------------------------------------------------
9 Total 2,352.6 395.5 (959.3) 1,788.7 (563.8)
-----------------------------------------------------------------------------------------------------------------------------
(2) Six months results ending March 31, 2002 (in billions of yen)
-----------------------------------------------------------------------------------------------------------------------------
As of
As of March 31,
September 30, Inflow Outflow 2002 Net increase
--------------
2001 (A) (B) (C) (A)+(B)-(C) (B)-(C)
-----------------------------------------------------------------------------------------------------------------------------
10 Claims to bankrupt and substantially bankrupt debtors 408.1 63.6 (52.7) 419.0 10.9
-----------------------------------------------------------------------------------------------------------------------------
11 Claims under high risk 2,171.4 384.0 (621.9) 1,933.5 (237.9)
-----------------------------------------------------------------------------------------------------------------------------
12 Total 2,579.6 447.7 (674.7) 2,352.6 (227.0)
-----------------------------------------------------------------------------------------------------------------------------
-3-
Mitsubishi Tokyo Financial Group, Inc.
(3) Status of Secured Coverage on Disclosed Claims under the FRL [prompt report] (in billions of yen)
---------------------------------------------------------------------------------------------------------------------------------
Disclosed Collateral Unsecured Reserve Coverage Ratio Coverage Ratio
amount Guarantees, etc (A) (B) (B/A) (March 31, 2002)
---------------------------------------------------------------------------------------------------------------------------------
1 Claims to Bankrupt and substantially
bankrupt debtors 402.1 371.8 30.2 30.2 99.9% 99.9%
---------------------------------------------------------------------------------------------------------------------------------
2 Claims under high risk 1,386.6 604.9 781.7 530.0 67.8% 67.4%
---------------------------------------------------------------------------------------------------------------------------------
3 Claims under close observation 1,886.2 946.7 939.5 317.7 33.8% 28.4%
---------------------------------------------------------------------------------------------------------------------------------
4 Total 3,675.0 1,923.4 1,751.6 878.0 50.1% 50.7%
---------------------------------------------------------------------------------------------------------------------------------
5 (Change from March 31, 2002) (594.4) (258.9) (335.4) (181.6) (0.6%) -
---------------------------------------------------------------------------------------------------------------------------------
6 Normal claims 46,231.9 - - - -
----------------------------------------------------------------------------------------------------------
(4) Status of Secured Coverage on Self-Assessment of Assets [prompt report]
---------------------------------------------------------------------------------------------------------------------------------
As of September As of March As of September
30, 2001 (A) 31, 2002 (B) 30, 2002 (C) (C) - (A) (C) - (B)
---------------------------------------------------------------------------------------------------------------------------------
7 Normal 0.24% 0.18% 0.19% (0.05%) 0.01%
---------------------------------------------------------------------------------------------------------------------------------
8 Close Watch 7.43% 8.11% 8.75% 1.33% 0.64%
---------------------------------------------------------------------------------------------------------------------------------
9 Close Watch 3.81% 3.97% 3.57% (0.24%) (0.39%)
---------------------------------------------------------------------------------------------------------------------------------
10 Borrowers with Credit under Close Observation 12.46% 14.39% 17.44% 4.98% 3.06%
---------------------------------------------------------------------------------------------------------------------------------
11 Likely to become Bankrupt (excluding secured assets) 65.64% 67.54% 66.51% 0.86% (1.03%)
---------------------------------------------------------------------------------------------------------------------------------
Note: Above figures exclude certain mortgage and consumer loans.
4. Earning Projections for the Fiscal Year Ending March 31, 2003
[Non-consolidated] (in billions of yen)
-----------------------------------------------------------------------------
For the six months ended For the year ending
September 30, 2002 (actual) March 31, 2003
-----------------------------------------------------------------------------
12 Operating income 24.1 26.0
-----------------------------------------------------------------------------
13 Ordinary profit 22.3 22.0
-----------------------------------------------------------------------------
14 Net income 22.0 22.0
-----------------------------------------------------------------------------
[Cash dividends] (in yen per share)
---------------------------------------------------------------------------------------------------------------------------------
Interim dividends per share Term-end dividends per share Annual dividends per share
(planned)
---------------------------------------------------------------------------------------------------------------------------------
15 Common stock - 4,000 4,000
---------------------------------------------------------------------------------------------------------------------------------
16 Preferred stock-class 1 41,250 41,250 82,500
---------------------------------------------------------------------------------------------------------------------------------
17 Preferred stock-class2 8,100 8,100 16,200
---------------------------------------------------------------------------------------------------------------------------------
[Consolidated] (in billions of yen)
----------------------------------------------------------------------------------------------
For the six months ended For the year ending
September 30, 2002 (actual) March 31, 2003
----------------------------------------------------------------------------------------------
18 Ordinary income 1,425.4 2,900.0
----------------------------------------------------------------------------------------------
19 Ordinary profit (193.3) (165.0)
----------------------------------------------------------------------------------------------
20 Net income (188.0) (185.0)
----------------------------------------------------------------------------------------------
The foregoing forward looking statements may be materially affected by
regulatory developments or changes in governmental policies, laws,
regulations, voluntary code of practice and interpretations, including
those anticipated to be announced soon in Japan, changes in the level of
Japanese stock prices, the occurrence of material new corporate bankruptcies,
further developments in the Japanese or world economic environment, and other
factors outside MTFG's control. These forward looking statements are not
guaranties of future performance, and actual results may differ materially.
Please see our latest annual report for additional information regarding the
risks in our business.
-4-