Consolidated Financial Results of UFJ Trust Bank For the Fiscal Year ended March 31, 2002

Transcription

1 Consolidated Financial Results of UFJ Trust Bank For the Fiscal Year ended March 31, 2002 UFJ Trust Bank Limited, a subsidiary of UFJ Holdings, Inc., today reported the Bank's consolidated financial results for the fiscal year ended March 31, Total Income for the fiscal year was 296 billion yen, compared with 351 billion yen for the previous fiscal year. Net Loss for the fiscal year was 138 billion yen, compared with 1.9 billion for the previous fiscal year. UFJ Trust Bank was renamed from Toyo Trust Banking & Limited as of Jan. 15, 2002 FINANCIAL HIGHLIGHTS Fiscal Year ended March 31, Millions of yen (Unaudited) RESULTS Total Income 296, ,632 Income (Loss) before Income Taxes, & Minority Inter (190,813) 929 Net Income (Loss) (138,173) (1,904) BALANCE SHEET Total Assets 7,524,093 8,103,865 Stockholders' Equity 361, ,008 PER SHARE Net Income (Loss) (149.22) (4.99) Stockholders' Equity UFJ Trust Bank Limited May 24, 2002 Notes: (1) Net Income per Share = Net Income - Dividends for Preferred Stock Weighted Average Number of Shares of Common Stock * (2) Stockholders' Equity Stockholders' Equity - Number of Shares of Preferred StockX Issue Price = per Share Number of Shares of Common Stock Outstanding at the end of the fiscal year * *Excluding treasury stocks and stocks held by subsidiaries (3) Equity in earnings of affiliates as of March 31, 2002 is (1,613) million yen. (4) For Net Income per Share and Stockholders' Equity per Share, the third decimal is omitted. (5) Amounts less than one million yen are omitted

2 (NOTES) Scope of Consolidation and Application of the Equity Method (1) Consolidated Companies (Consolidated Subsidiaries) Toyo Trust Total Finance Co., Ltd. UFJ Trust Company of New York, and others (Companies excluded) Toyo Trust Asset Management Co., Ltd. Toyo Trust Operation Services Co., Ltd. Toyo Trust Capital Co., Ltd. 11 Companies 3 Companies UFJ Trust Bank Limited (2) Companies accounted for under the Equity Method (Companies accounted for under the equity method) The Master Trust Bank of Japan, Ltd. United Leasing Company Limited, and others 5 Companies (Companies excluded) 1 Company Japan Pension Planning Co., Ltd

3 CONSOLIDATED BALANCE SHEETS As of March 31, Millions of yen 2002 (Unaudited) 2001 Variance Assets: Cash and Due from Banks 582, ,530 59,415 Call Loans 65,829 26,599 39,230 Monetary Receivables Bought 84,626 33,730 50,895 Trading Assets 27, ,604 (82,813) Securities 2,558,610 2,757,988 (199,377) Loans and Bills Discounted 3,461,240 3,748,440 (287,200) Foreign Exchanges 3,352 3,544 (191) Other Assets 215, ,228 (93,679) Premises and Equipment 115, ,840 (63,699) Deferred Tax Assets 247, ,976 87,084 Customers' Liabilities for Acceptances and Guarantees 290, ,717 (52,188) Reserve for Possible Loan Losses (128,524) (91,154) (37,369) Reserve for Possible Losses on Securities (59) (183) 123 Total Assets 7,524,093 8,103,865 (579,771) Liabilities, Minority Interests and Stockholders' Equity Liabilities: Deposits 3,154,949 2,934, ,382 Negotiable Certificates of Deposit 916, , ,120 Call Money 724, , ,393 Payables under Repurchase Agreements Trading Liabilities 16,686 17,752 (1,065) Borrowed Money 137, ,722 (51,360) Foreign Exchanges 0 0 (0) Bonds and Notes 107, ,588 (55,548) Convertible Bonds - 19,140 (19,140) Borrowed Money from Trust Account 1,692,839 2,736,497 (1,043,657) Other Liabilities 64, ,680 (98,463) Reserve for Emplyee Bonus 1,582-1,582 Reserve for Retirement Benefits (623) Reserve for Contingent Liabilities Related to Loans Sold 1,772 3,944 (2,172) Reserve for Possible Losses on Support of Specific Borrowers 45,100-45,100 Deferred Tax Liabilities for Revaluation Reserve for Land 7,711 7, Acceptances and Guarantees 290, ,717 (52,188) Total Liabilities 7,161,972 7,534,866 (372,893) Minority Interests (706) Stockholders' Equity: First Class, First Series Preferred Stock 40,000 40,000 - First Class, Second Series Preferred Stock 100, ,000 - Common Stock 140, ,536 - Capital Surplus 252, ,676 - Revaluation Reserve for Land, Net of Taxes 12,061 11, Retained Earnings (116,400) 24,011 (140,412) Net Losses on Securities, Net of Taxes (67,454) - (67,454) Foreign Currency Translation Adjustments 417 (575) 992 Treasury Stock - (5) 5 Total Stockholders' Equity 361, ,008 (206,171) Total Liabilities, Minority Interests and Stockholders' Equity 7,524,093 8,103,865 (579,771) - 3 -

4 Notes: (1) Transactions for trading purposes are those seeking to capture gains arising from short-term market changes or from differences between markets for interest rates, currency exchange rates or securities. Such transactions are reported as "Trading Assets" and "Trading Liabilities" in the consolidated balance sheet as of March 31, 2002, on a trade date basis. Trading account securities and monetary receivables, etc. held for trading purposes are stated at market value at the end of the fiscal year. Trading-related financial derivatives such as swaps, futures and options are valued on the assumption that they were settled at the end of the fiscal year. (2) Held-to-maturity Debt Securities are carried at amortized cost, as determined by the moving average method (straight line method). "Investments in Non-consolidated Subsidiaries and Affiliates which are not accounted for under the equity method" are carried at the moving average cost. "Available-for-sale Securities" with market value are carried at market value (cost of securities sold is determined by the moving average method), and "Available-for-sale Securities" with no market value are carried at cost or amortized cost, as determined by the moving average method. Net unrealized profits or losses on available-for-sale securities are directly reflected in the stockholders' equity after considering the tax effect. (3) Derivatives transactions, excluding those for trading purposes, are carried at fair value. (4) As regards the depreciation of premises and equipment, buildings are depreciated using the straight line method and equipments are depreciated using the declining-balance method. The depreciation method hitherto for buildings has been changed from the declining-balance method to the straight line method as from the fiscal year ended March 31, As a result of this change, loss before income taxes decreased by 607 million yen, when compared with the method used hitherto. (5) "Reserve for Possible Loan Losses" is provided based on the results of the self-assessment, as follows in accordance with internal criteria regarding write-offs and providing reserves for possible credit losses : (a)the reserve for claims on debtors who are legally or substantially bankrupt is provided based on the remaining amount of the claims after the charge-off described below and the deductions of the amount expected to be collected through the disposal of collateral or the execution of guarantees. (b)the reserve for claims on debtors who are not currently legally bankrupt but are likely to become bankrupt is provided based on the amount necessary, given the overall solvency assessment of the debtors after deducting the amount expected to be collected through the the disposal of collateral or the execution of guarantees. (c)the reserve for claims on debtors other than the above is provided primarily based on the default rate, calculated by the actual defaults during a certain period in the past. (d)the specific reserve for loans to certain refinancing countries is provided based on the expected loss amount considering the political and economic situations of such countries. With respect to the claims with collateral or guarantees on debtors who are legally or substantially bankrupt, the remaining amount of the claims after deduction of the amount which is deemed collectible through the disposal of collateral or the execution of guarantees was charged-off against the respective claims for the fiscal year ended March 31, The amount of the charge-off as of March 31, 2002 was 169,760 million yen. The consolidated subsidiaries provide the Reserve for Possible Loan Losses as the amount deemed necessary to cover such losses, principally based on past experience and management's assessment of the loan portfolio. (6) "Reserve for Possible Losses on Securities" is provided for possible losses on securities and other investments based on the amount necessary, considering the financial conditions of the issuing companies and collateral and guarantees on the securities

5 (7) "Reserve for Employee Bonuses" is provided for payment of bonuses to employees. Within the estimated amount payable to employees, the necessary amount corresponding to the fiscal year ended March 31, 2002, is recorded. This had hitherto been recorded under Other Liabilities. (8) "Reserve for Retirement Benefit" is provided for future pension and lump-sum severance indemnity payment to employees. The reserve is recorded based on the projected benefit obligation and the pension plan asset amount at the end of the fiscal year ended March 31, The unrecognized net obligation at transition (13,367 million yen) is amortized over mainly 5 years, and the amortized amount is recorded for the fiscal year ended March 31, (9) "Reserve for Contingent Liabilities related to Loans Sold" is provided based on the estimated liabilities of possible losses for the loans sold, considering the fair value of collateral of loans sold to the Cooperative Credit Purchasing Company, Limited. (10) "Reserve for Possible Losses on Support of Specific Borrowers" is provided based on the amount expected to be necessary to provide financial support to specific borrowers which are undergoing restructureing or are supported by UFJ Trust Bank. (11) UFJ Trust Bank adopts a macro hedging methodology using derivatives to manage the overall interest rate risk arising from various financial assets and liabilities held, such as loans and deposits. This macro hedging methodology is a risk management method stipulated as a "Risk Adjusted Approach" in "Tentative Accounting and Auditing Treatment relating to Adoption of 'Accounting for Financial Instruments' for Banks" (Japanese Institute of Certified Public Accountants. Industry Audit Committee Report No.15). Accordingly hedging items are accounted for using the deferral method of hedge accounting. Hedge effectiveness is assessed by monitoring (i) whether the total market risk on derivatives instruments, used for hedging purposes, is within established risk limits as set out in the risk management policies and (ii) whether the interest rate risk from hedged items has been mitigated. Hedging against risks of forex fluctuations on foreign currency securities (other than bonds) is accounted for using the deferral and fair value method of hedge accounting. The deferral method for hedge accounting is also applied to certain assets or liabilities other than the above. (12) As of March 31, 2002 Loans to Bankrupt Companies and Other Delinquent Loans were 12,683 million yen and 243,315 million yen, respectively. (13) As of March 31, 2002 Loans Past Due 3 Months or More, other than Loans to Bankrupt Companies and Other Delinquent Loans, were 376 million yen. (14) As of March 31, 2002 Restructured Loans were 329,776 million yen. (15) The net realized and unrealized profits and losses arising on hedging instruments are included in Other Liabilities as deferred hedge profits. The gross amounts of deferred hedge profits and losses are 36,142 million yen and 35,780 million yen, respectively. (16) Principal amount of indemnified trusts is 690,871 million yen in Jointly Operated Designated Money Trusts and 2,119,084 million yen in Loan Trusts

6 (17) Market value, net unrealized profits/ losses and other information regarding securities are as follows. In addition to "Securities", trading account securities, and commercial paper under "Trading Assets" are included. Trading Securities Book value as of March 31, ,511 million yen Valuation gain (loss) during the fiscal year ended March 31, million yen Available-for-sale Securities with Market Value As of March 31, 2002 Gain/Losses (Millions of Yen) Aggregate Cost Carrying Value Net Gross Gain Gross Loss Japanese Equities 705, ,810 (82,190) 30, ,785 Japanese Bonds 1,495,265 1,496, ,681 1,948 Japanese NationalGovernment Bond 1,462,805 1,463, ,161 1,272 Japanese Local Government Bonds 7,076 7, Japanese Corporate Bonds and Financial Debentures 26,383 25,975 (408) Others 123, ,151 (21,384) ,526 Total 2,324,801 2,221,958 (102,842) 33, ,260 Net Loss on Available-for-sale Securities, Net of Taxes, as of March 31, 2002, is 67,454 million yen: Net Loss on Available-for-sale Securities shown in the above table of 102,842 million yen, plus Deferred Tax Assets of 35,528 million yen, less minority interests equivalent of 140 million yen. (18) Avaliable-for-sale Securities sold during the fiscal year ended March 31, 2002 Proceeds from Sales 2,223,018 million yen Realized Profit 59,372 million yen Realized Loss 40,991 million yen (19) Available-for-sale Securities whose Market Value is not readily determinable As of March 31, 2002 (Millions of Yen) Book value Available-for-sale Securities Beneficiary certificates of Loan Trusts 260,673 Unlisted Japanese Equites other than Over-the-counter 40,331 Unlisted Japanese Bonds 32,

7 (20) Rredemption Schedule of Held-to-maturity Debt Securities and Available-for-sale securities with Maturity (Millions of Yen / Year) 1 or less over 1 to 5 over 5 to 10 over 10 Japanese Bonds 43, , , ,704 Japanese National Government Bonds 20, , , ,139 Japanese Local Government Bonds - 1,997 4, Japanese Corporate Bonds and Financial Debentures 23,312 28,513 6,278 - Others 261,318 9,775 67, Total 304, , , ,746 (21) Pursuant to overdraft agreements and commitments to provide loans, the Bank and its consolidated subsidiaries may provide loans with customers up to certain limits. Among such limits, 928,737 million yen remains unused of which 902,081 million yen is based on contracts to be terminated within a year or revocable by consolidated banking subsidiaries' options. (22) Employee Retirement Benefits As of March 31, 2002 (Millions of Yen) Projected Benefit Obligation (102,337) Fair Value of Plan Assets 68,428 Security held in Trust 25,891 Funded Status (8,016) Unrecognized Transitional Obligation 8,020 Unrecognized Net Actuarial Loss 26,440 Net Amount Recognized on the Blance Sheet 26,443 Prepaid Pension Cost 26,743 Reserve for Retirement Benefits (229) (23) With the implementation of the Metropolitan ordinance regarding the imposition of enterprise taxes through external standards taxation on banks in Tokyo" (Tokyo Meteropolitan Ordinance No.145, April 1, 2000) ( the metropolitan ordinance ), enterprise taxes which were hitherto levied on income are now levied on Gross Operating Profit. On October 18, 2000 the Bank filed a lawsuit with the Tokyo District Court against the Tokyo metropolitan government and the Governor of Tokyo seeking to void the metropolitan ordinance. The Bank won the case eventually entirely on March 26, 2002 with a decision of the Tokyo District Court in the Bank s favor,on the grounds that the metropolitan ordinance was illegal. The District Court ordered the metropolitan government to return to the Bank advance tax payments of 1,792 million yen and also awarded to the Bank damages of 100 million yen. On March 29, 2002 the metropolitan government lodged an appeal with the Tokyo High Court against the decision. It is the opinion of the Bank that the metropolitan ordinance is both unconstitutional and illegal. The Bank has asserted this opinion in the courts and the matter is still in litigation. The fact that during this term the Bank has 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 the Bank has 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 the Bank either of the constitutionality or of the legality of the metropolitan ordinance. With the implementation of the municipal ordinance, enterprise taxes relating to banks in Tokyo were recorded in Other Expenses in the amounts of 1,770 million yen in the previous term, and 1,962 million yen this term. Since the enterprise taxes in question are not included in the calculations for accounting for taxe effects, there was a decrease in Deferred Tax Assets of 12,859 million yen, as compared with the amount that it would have been had the enterprise taxes been levied on income. There was also a decrease in Deferred Tax Liability for Revaluation Reserve for Land of 415 million yen, an increase in Revaluation Reserve for Land, Net of Tax of the same amount and a decrease in Net Loss on Available-for-sale Securities, Net of Taxes of 1,919 million yen

8 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 operating profit. On April 4, 2002, the Bank 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 the Bank that the municipal ordinance is both unconstitutional and illegal. The Bank has asserted this opinion in the Osaka District Court and the matter is still in litigation. The fact that during this term the Bank has applied the treatment accounting for enterprise taxes through external standards taxation on banks in Osaka in accordance with the municipal ordinance, is because the Bank has 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 the Bank 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 Other Expenses in the amounts of 637 million yen. Since the enterprise taxes in question are not included in the calculations for accounting for tax effects there was a decrease in Deferred Tax Assets of 4,286 million yen as compared with the amount that it would have been had the enterprise taxes been levied on income instead of gross profits. There was also a decrease in Deferred Tax Liabilities for Revaluation of Reserve for Land of 138 million yen, an increase in Revaluation Reserve for Land, Net of Taxes of the same amount and a decrease in Net Losses on Available-for-sale Securities, Net of Taxes of 639 million yen. (24) Amounts less than one million yen are omitted

9 CONSOLIDATED STATEMENTS OF INCOME Millions of yen UFJ Trust Bank Limited Fiscal Year ended March 31, Variance (Unaudited) Income: Trust fees 69,218 56,111 13,107 Interest Income 86, ,459 (17,105) Interest on Loans and Discounts 54,732 68,586 (13,853) Interest on and Dividends from Securities 28,779 25,043 3,736 Fees and Commissions 47,264 47,522 (257) Trading Revenue 1, Other Operating Income 34,666 12,435 22,231 Other Income 57, ,217 (73,264) Total Income 296, ,632 (55,114) Expenses: Interest Expenses 42,982 64,357 (21,374) Interest on Deposits 16,602 23,669 (7,067) Fees and Commissions 4,055 2,954 1,100 Trading Expenses (474) Other Operating Expenses 25,455 1,814 23,641 General and Administrative Expenses 91,126 93,473 (2,346) Other Expenses 323, , ,081 Total Expenses 487, , ,627 Income (Loss) before Income Taxes, & Minority Interests (190,813) 929 (191,742) Provision for Income Taxes 783 1,043 (259) Adjustment to Income Taxes Paid in Past Year (1,944) - (1,944) Deferred Income Taxes (51,279) 2,588 (53,867) Minority Interests in Net Income (199) (797) 598 Net Income (Loss) (138,173) (1,904) (136,269) - 9 -

10 Notes: (1) Profits and losses on transactions for trading purposes are shown as "Trading Revenue" or "Trading Expenses" on the Statements of Income on a trade date basis. In the case of securities and monetary receivables, etc. held for trading purposes, Trading Revenue/Expenses includes the interest received/paid during the fiscal year ended March 31, 2002 and the increase/decrease of the valuation profits/losses at the end of the fiscal year ended March 31, 2002 from those at the end of the fiscal year ended March 31, In the case of trading-related financial derivatives, Trading Revenue/Expenses includes the interest received/paid during the fiscal year ended March 31, 2002 and the increase/ decrease of the amounts of profits/losses based on the assumption that transactions were settled at the end of the fiscal year ended March 31, 2002 from the fiscal year ended March 31, (2) Other Expenses for the fiscal year ended March 31, 2002 includes write-off of loans of 49,477 million yen, revaluation loss of stocks and other equity securities of 113,918 million yen, loss for the indemnified amount for principal indemnified trust accounts of 7,200 million yen and enterprise taxes relating to banks in Tokyo of 2,600 million yen. Also, expenses for amortization of unrecognized net pension obligation of 2,673 million yen and unrealized losses on premises to be sold of 2,959 million yen. (3) Other Income for the fiscal year ended March 31, 2002 includes gains on the establishment of a retirement benefit trust. (4) Amounts less than one million yen are omitted

11 CONSOLIDATED STATEMENTS OF RETAINED EARNINGS Fiscal year ended Mar.31, Variance Millions of yen (Unaudited) Balance at Beginning of the Fiscal Year 24,011 33,902 (9,890) Additions: (697) 930 (1,627) Increase Resulted from Newly Consolidated Subsidiaries Increase Resulted from Other Reasons (697) - (697) Increase Resulted from Exclusion of Subsidiaries Previously under Scope of Consolidation (930) Deductions: 1,541 8,916 (7,375) Cash Dividends 1,362 7,353 (5,991) Decrease Resulted from Other Reasons Decrease Resulted from Exclusion of Subsidiaries Previously under Scope of Consolidation 179 1,069 (890) Decrease Resulted from Reversal of Revaluation Reserve for Land (493) Net Income (Loss) for the Fiscal Year (138,173) (1,904) (136,269) Balance at End of the Fiscal Year (116,400) 24,011 (140,412) Note : Amounts less than one million yen are omitted

12 CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Year Ended March 31, Variance Millions of yen (Unaudited) Cash Flows from Operating Activities Income Before Income Taxes, & Minority Interests (190,813) 929 (191,742) Depreciation 4,774 22,314 (17,539) Amortization of Goodwill (181) 875 (1,057) Equity in Earnings of Affiliates 1, Net Increase (Decrease) in Reserve for Possible Loan Losses 37,369 (67,968) 105,338 Net Increase (Decrease) in Reserve for Possible Losses on Securities (75) 70 (146) Net Increase (Decrease) in Reserve for Contingent Liabilities Related to Loans Sold (2,172) (1,784) (388) Net Increase (Decrease) in Reserve for Supporting Specific Borrowers 45,100 (33,823) 78,923 Net Increase (Decrease) in Reserve for Retirement Allowances - (3,599) 3,599 Net Increase (Decrease) in Reserve for Bonus (295) - (295) Net Increase (Decrease) in Reserve for Retirement Benefits (618) 927 (1,546) Interest Income (86,354) (103,459) 17,105 Interest Expenses 42,982 64,357 (21,374) Net (Gain) Loss on Securities 95,507 (10,246) 105,754 Net (Gain) Loss on Money Held in Trust - (3,445) 3,445 Net (Gain) Loss on Exchanges 7,696 6, Net (Gain) Loss on Sales of Premises and Equipment 1, Net (Gain) Loss on Establishment of Pension Trust (2,078) - (2,078) Net (Increase) Decrease in Trading Assets 82,813 85,302 (2,488) Net Increase (Decrease) in Trading Liabilities (1,065) (6,587) 5,522 Net (Increase) Decrease in Loans and Bills Discounted 287, ,857 (100,557) Net Increase (Decrease) in Deposits 218,014 (225,219) 443,234 Net Increase (Decrease) in Negotiable Certificates of Deposit 177, ,410 (131,290) Net Increase (Decrease) in Borrowed Money Excluding Subordinated Debt (49,360) (21,144) (28,215) Net (Increase) Decrease in Due from Banks (excluding Bank of Japan) 425,777 (253,454) 679,231 Net (Increase) Decrease in Call Loans and Monetary Receivables Bought (89,826) 70,693 (160,519) Net Increase (Decrease) in Call Money and Other Fundings Related to Operating Activities 506, , ,402 Net (Increase) Decrease in Foreign Exchanges (Assets) 191 4,252 (4,061) Net Increase (Decrease) in Foreign Exchanges (Liabilities) (0) (17) 17 Net increase (Decrease) in Borrowed Money from Trust Account (1,044,138) (34,215) (1,009,923) Interest Received 94, ,909 (11,566) Interest Paid (42,468) (67,243) 24,775 Others, Net 56,657 (394,061) 450,718 Sub-total 575,798 (64,280) 640,078 Income Taxes Paid (Refunded) 1, Net Cash Provided by (Used in) Operating Activities 577,074 (63,583) 640,

13 CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) Millions of yen UFJ Trust Bank Limited Fiscal Year Ended March 31, Variance (Unaudited) Cash Flows from Investing Activities Purchases of Securities (3,459,652) (3,154,889) (304,762) Proceeds from Sales of Securities 2,267,792 2,030, ,608 Proceeds from Maturities of Securities 1,184, , ,085 Increase in Money Held in Trust Decrease in Money Held in Trust - 47,108 (47,108) Expenditures for Premises and Equipment (5,160) (29,015) 23,855 Proceeds from Sales of Premises and Equipment 1,751 3,208 (1,457) Proceeds from Sales of Consolidated Subsidiaries (30) Net Cash Provided by (Used in) Investing Activities (10,383) (638,574) 628,191 Cash Flows from Financing Activities Expenditures for Repayment of Subordinated Debt (2,000) (11,000) 9,000 Proceeds from Issuance of Subordinated Bonds 10,000 28,900 (18,900) Redemption and Repurchase of Subordinated Bonds (98,143) (48,272) (49,871) Dividends Paid (1,362) (7,353) 5,991 Expenditures for Purchase of Treasury Stock - (60) 60 Proceeds from Sales of Treasury Stock - 55 (55) Net Cash Provided by (Used in) Financing Activities (91,505) (37,729) (53,776) Effect of Exchange Rate Changes on Cash and Cash Equivalents (187) Net Increase (Decrease) in Cash and Cash Equivalents 475,185 (739,699) 1,214,885 Cash and Cash Equivalents at Beginning of Fiscal Year 59, ,255 (743,525) Decrease in Cash and Cash Equivalents Caused by Exclusion from Scope of Consolidation - (3,826) 3,826 Cash and Cash Equivalents at the end of Fiscal Year 534,915 59, ,

14 BALANCE SHEETS (TRUST ACCOUNT) Fiscal Year ended March 31, Millions of yen 2002 (Unaudited) 2001 Variance Assets: Loans and Bills Discounted 1,300,544 1,767,754 (467,210) Securities 14,544,647 12,796,772 1,747,874 Securities of Investment Trusts 7,703,581 7,401, ,984 Overseas Investments of Investment Trusts 1,423, , ,207 Beneficiary Rights in Trust 87, ,525 (43,823) Securities in Trust 293, ,693 90,473 Securities Lent 481, , ,600 Money Claims 3,552,805 2,958, ,366 Premises and Equipment 809, , ,514 Leasing Rights on Land 15,885 15,885 - Other Claims 109, ,685 (723,827) Bills Purchased - 1,010,000 (1,010,000) Call Loans 2,298,260 3,778,728 (1,480,468) Lending Money to Banking Account 1,692,839 2,736,497 (1,043,657) Cash and Due from Banks 599, ,316 (61,473) Total Assets 34,913,641 36,165,079 (1,251,438) Liabilities: Money Trusts 9,432,411 8,428,003 1,004,407 Pension Trusts 4,463,767 4,494,590 (30,822) Property Formation Trusts 4,790 4, Loan Trusts 1,978,766 3,302,042 (1,323,275) Investment Trusts 12,819,599 15,744,706 (2,925,106) Money in Trusts Other than Money Trusts 1,129,100 1,315,758 (186,657) Securities in Trust 1,150, , ,727 Money Claims in Trust 1,833, , ,367 Equipment in Trust 136, ,674 27,781 Real Estate in Trust 103, ,223 (7,702) Leasing Rights on Land in Trust Composite Trusts 1,847, , ,105 Other Trusts 12,623 10,203 2,420 Total Liabilities 34,913,641 36,165,079 (1,251,438) Note: Amounts less than one million yen are omitted

15 SEGMENT INFORMATION UFJ Trust Bank Limited 1.Segment Information by Type of Business Concurrent with the business integration, as from the fiscal year ended March 31, 2001, the significance of the business of consolidated companies is small. Therefore, segment information by type of business is not shown here. 2.Segment Information by Location Concurrent with the closure of overseas branches and offices, as from the fiscal year ended March 31, 2001, segment information is omitted. 3. Ordinary Income from Overseas Operations Ordinary income from International Operations of the fiscal year ended March 31, 2002 and 2001 is less than 10% of total ordinary income,. therefore, ordinary Income from international operations for the fiscal year ended March 31, 2002 and 2001 is not shown here

16 MARKET VALUE INFORMATION ON SECURITIES AND MONEY HELD IN TRUST The following includes Securities, "negotiable due from banks," contained in Cash and Due from Banks, and "commodity funds," contained in Monetary Receivables Bought. Amounts less than one million yen are omitted. A. End of March 31, Available-for-sale Securities with Market Value As of March 31, 2002 Book Market Profit/Loss Type Value Value Net Profit Loss Stocks 705, ,810 (82,190) 30, ,785 Bonds 1,496,265 1,496, ,681 1,948 Japanese Government Bonds 1,462,805 1,463, ,161 1,272 Local Government Bonds 7,076 7, Corporate Bonds and Notes 26,383 25,975 (408) Others 123, ,151 (21,384) ,526 Total 2,324,801 2,221,958 (102,842) 33, ,260 Market Value: Stocks: Average market value over one month period prior to the closing of the accounting period. Others: Market value at the end of the accounting period. 2.Securities without Market Value & Amount Reflected in Balance Sheets As of March 31, 2002 Type Book Value Available-for-sale Securities Beneficiary Certificates of Loan Trusts 260,673 Unlisted Stocks (excluding over-the-counter stocks) 40,331 Unlisted Foreign Securities 32, Gains (Losses) on Available-for-sale Securities As of March 31, 2002 Type Book Value Net Gains (Losses) (102,842) Available-for-sale Securities (102,842) Less: Deferred Tax Assets 35,528 Net Gains (Losses), Net of Taxes (before minority interests) (67,313) Less: Minority Interests 140 Parent Company's Share of Net Gains (Losses) Securities Held by Affiliates Accounted for under Equity Method - Net Gains on Available-for-sale Securities, Net of Taxes (67,454)

17 MARKET VALUE INFORMATION ON SECURITIES AND MONEY HELD IN TRUST UFJ Trust Bank Limited B. End of March 31, Available-for-sale Securities with Market Value As of March 31, 2001 Book Market Profit/Loss Type Value Value Net Rrofit Loss Stocks Bonds 977,421 1,464, ,889 1,472,142 (81,532) 8,126 82,260 8, , Japanese Government Bonds 1,328,032 1,332,508 4,475 4, Local Government Bonds 1,536 1, Corporate Bonds and Notes 134, ,890 3,443 3, Others 523, ,217 (9,516) ,385 Total 2,965,171 2,882,248 (82,922) 91, ,357 Market Value: Market value at the end of the accounting period. Mark to the market method is not applied. 2.Securities without Market Value & Amount Reflected in Balance Sheets As of March 31, 2001 Type Book Value Available-for-sale Securities Beneficiary Certificates of Loan Trusts 89,342 Unlisted Stocks (excluding over-the-counter stocks) 42,326 Unlisted Foreign Securities 26,065 Unlisted Bonds 18, Gains (Losses) on Available-for-sale Securities (Trial Base) As of March 31, 2001 Type Book Value Net Gains (Losses) (82,922) Available-for-sale Securities (82,922) Less: Deferred Tax Liabilities 32,311 Net Gains (Losses), Net of Taxes (50,610) (before minority interests) Less: Minority Interests (437) Parent Company's Share of Net Gains (Losses) Securities Held by Affiliates Accounted for under Equity Method - Net Gains on Available-for-sale Securities, Net of Taxes (50,172)

18 MARKET VALUE INFORMATION ON DERIVATIVES TRANSACTIONS 1. Interest Rate Related Transactions As of March 31, 2002 As of March 31, 2001 Type Contractual Value Market Value rofits/losses ontractual Value Market ValueProfits/Losses Over 1 year Over 1 year Exchange-traded Over-the-Counter Interest Rate Swaps Receipts Fixed, Payments Floating 606, ,067 15,974 15, , ,860 18,124 18,124 Receipts Floating, Payments Fixed 595, ,503 (16,277) (16,277) 647, ,580 (17,189) (17,189) Basis Swaps 161,224 98,224 (60) (60) 183, ,580 (45) (45) Others Sold 127, ,532 1,892 (132) 144, ,913 2,165 (207) Bought 110,244 93,744 1,376 4, ,536 92,036 1,532 4, Total (879) (390) 4, Notes: (1) The above Profits/Losses are stated on the Consolidated Statements of Income. Derivatives transactions to which hedge accounting is applied are excluded. 2. Currency Related Transactions Type Contractual Value As of March 31, 2002 As of March 31, 2001 Market Value rofits/losses ontractual Value Market ValueProfits/Losses Over 1 year Over 1 year Over-the-Counter Total Notes: (1) The above Profits/Losses are stated on the Consolidated Statements of Income. Derivatives transactions, to which hedge accounting is applied, and transactions stated in the Note (2) below are excluded. (2) Certain Currency Swaps have been excluded from table 2. above, since such Currency Swaps have been accounted for by using the accrual method of accounting based on "Tentative Auditing Treatment relating to Adoption of 'Revised Accounting for Foreign Currency Transaction' for Banks." (The Japanese Institute of Certified Public Accountants April 10, 1999) The Contractual Value etc. of such Currency Swaps accounted for on an accrual method is as follows: As of March 31, 2002 As of March 31, 2001 Type Contractual Value Market Value ofits/losses Contractual Value Market Value rofits/losses Currency Swaps 27,173 1,604 1,604 39,057 1,735 1,

19 (3) Foreign exchange forward contracts, currency options and some other transactions are excluded from the above table, since they are revalued at the end of the fiscal year and their profits and losses are effected to the Consolidated Statements of Income of the Bank or they are attached to foreign currency based receivables/payables, which are reflected to Consolidated Balance Sheets or eliminated in consolidation process. Set forth below are contractual values of foreign exchange related transactions reflected in the Statements of Income by revaluation at the dates i ndicated. As of March 31, 2002 As of March 31, 2001 Type Book Value Book Value Exchange-traded - - Bought - - Over-the-Counter Foreign Exchange Forward Contracts Sold 71, ,921 Bought 69, , Equity Related Transactions As of March 31, 2002 As of March 31, 2001 Type Contractual Value Market Valuerofits/Losses Contractual Value Market Value Profits/Losses Over 1 year Over 1 year Exchange-traded Bond Futures Sold 18, Bought Over-the-Counter Total Notes: The above Profits/Losses are stated on the Consolidated Statements of Income. Derivatives Transactions to which hedge accounting is applied are excluded. 4. Bond Related Transactions As of March 31, 2002 As of March 31, 2001 Type Contractual Value Market Valuerofits/Losses Contractual Value Market Value Profits/Losses Over 1 year Over 1 year Exchange-traded Bond Futures Sold 41,953 - (261) (261) Bought Over-the-Counter Total (261) (261) 3 3 Notes: The above Profits/Losses are stated on the Consolidated Statements of Income. Derivatives Transactions to which hedge accounting is applied are excluded. 5. Commodity Related Transactions There are no commodity related derivatives transactions. 6. Credit Derivatives Related Transactions There are no credit derivatives related transactions