Consolidated Financial Results

Transcription

1 November 22, 2001 Consolidated Financial Results For the Six Months Ended September 30, 2001 today reported the Bank's consolidated financial results for the six months ended September 30, Total Income for the six months was 1,052 billion yen, compared with 948 billion yen for the corresponding six months in the previous fiscal year. Net Income for the six months was (42) billion yen, compared with 27 billion for the corresponding six months in the previous fiscal year. FINANCIAL HIGHLIGHTS Six months ended September 30, Millions of yen (Unaudited) (Unaudited) RESULTS Total Income 1,052, ,708 Income before Income Taxes 5, ,186 Net Income (42,327) 27,669 BALANCE SHEET Total Assets 52,305,732 50,337,716 Stockholders' Equity 1,825,982 2,067,933 PER SHARE Net Income (15.25) 8.68 Stockholders' Equity 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 Stock Issue Price per Share Number of Shares of Common Stock * *Excluding treasury stocks and stocks held by subsidiaries (3) Equity in earnings of affiliates as of September 30,2001 is (4,503) 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. Note:Consolidated Earnings Forecast (for Fiscal Year from April 1, 2001 to March 31, 2002) Please refer to UFJ Holdings' Consolidated Financial Statements for Six Months Ended September 30,

2 The following amounts are scheduled to be paid as the limit, to the respective holders of each type of share or the registered pledgees of each type of share recorded on the register of shareholders on December 31, 2001, in accordance with the Articles of Incorporation of the Bank. The definitive amount payable as the dividend for the six months shall be determined at the meeting of the Board of Directors from January Total payable amount limit Common Stock First Series Preferred Stock First Series Class A Preferred Stock Yen 144,059 million Yen (per share) Yen (per share) Yen 7.95 (per share) - 2 -

3 (NOTES) Scope of Consolidation and Application of the Equity Method (1) Consolidated Companies (Consolidated Subsidiaries) 78 Companies UFJ Capital Markets Securities Co.,Ltd. UFJ Partners Asset Managemnet Co.,Ltd. The Senshu Bank, Ltd. United California Bank Sanwa International Finance Limited Sanwa International plc UFJ Bank Canada UFJ Australia Limited (Companies newly consolidated) 4 Companies NBL Co.,Ltd. (Companies excluded) 7 Companies Sanwa Financial Services Limited UFJ Asset Managemnet Co.,Ltd. (2) Companies accounted for under the Equity Method (Companies accounted for under the equity method) 22 Companies Tsubasa Securities Co., Ltd. Dah Sing Financial Holdings Limited (Companies to become affiliates accounted for under equity method) 2 Companies UFJ Asset Managemnet Co.,Ltd. (Companies newly accounted for under equity method) 2 Companies UFIT Co.,Ltd. Dah Sing Financial Holdings Limited - 3 -

4 CONSOLIDATED BALANCE SHEETS As of September 30, As of March 31, Millions of yen (Unaudited) (Unaudited) Assets: Cash and Due from Banks 4,256,327 3,448,011 4,232,343 Call Loans 204, , ,191 Receivables under resale agreements 52, Monetary Receivables Bought 24,220 14,848 22,640 Trading Assets 1,926,538 1,217,264 1,549,615 Money Held in Trust 25,240 46,251 50,623 Securities 9,201,953 10,287,725 11,869,500 Loans and Bills Discounted 30,426,302 30,680,351 31,857,366 Foreign Exchange Assets 342, , ,594 Other Assets 3,576,385 2,381,175 2,480,195 Premises and Equipment 562, , ,067 Deferred Tax Assets 647, , ,213 Goodwill 24,611-27,687 Customers' Liabilities for Acceptances and Guarantees 1,850,375 1,475,213 1,973,243 Reserve for Possible Loan Losses (816,869) (767,167) (903,801) Reserve for Losses on Investment to Securities (39) (926) (2,038) Total Assets 52,305,732 50,337,716 55,016,443 Liabilities, Minority Interests and Stockholders' Equity Liabilities: Deposits 31,844,133 30,170,965 32,359,457 Negotiable Certificates of Deposit 5,069,054 6,224,546 7,247,834 Call Money 3,015,212 4,245,479 3,691,232 Payables under repurchase agreements 190, Commercial Paper 920, , ,711 Trading Liabilities 1,089, , ,148 Borrowed Money 871, , ,747 Foreign Exchanges 68,355 68, ,559 Bonds and Notes 2,248,285 1,623,313 1,778,036 Other Liabilities 2,848,792 2,414,788 3,413,747 Reserve for Bonus 10, Reserve for Retirement Benefits 13,199 30,487 34,384 Reserve for Contingent Liabilities Related to Loans Sold 55,498 95,471 73,643 Reserve for Supporting Specific Borrowers - 3,372 - Other Reserves Deferred Tax Liabilities 1,009 5,716 2,963 Deferred Tax Liabilities Related to Revaluation Reserve for Land 82,669 91,745 84,112 Acceptances and Guarantees 1,850,375 1,475,213 1,973,243 Total Liabilities 50,179,904 48,043,541 52,859,845 Minority Interests 299, , ,285 Stockholders' Equity: First Series Preferred Stock 75,000 75,000 75,000 First Series Class A Preferred Stock 300, , ,000 Common Stock 468, , ,582 Capital Surplus 734, , ,574 Revaluation Reserve for Land, Net of Taxes 134, , ,293 Retained Earnings 277, , ,099 Foreign Currency Translation Adjustments (85,138) (140,584) (115,630) Unrealized losses on securities (79,573) Treasury Stock - (8) (20) Parent Bank Stock Held by Subsidiaries - (14,977) (4,586) Total Stockholders' Equity 1,825,982 2,067,933 1,915,312 Total Liabilities, Minority Interests and Stockholders' Equity 52,305,732 50,337,716 55,016,

5 Notes: (1) Sanwa Bank applies the following standard to assess the Trading Assets and the Trading Liabilities. 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 sheets for the six months ended September 30, 2001, 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 six months. Trading-related financial derivatives such as swaps, futures and options, etc. are valued on the assumption that they were settled at the end of the six months. (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. (3) As regards the valuation of securities held in independently operated Money Held in Trust mainly for securities investment, securities are stated at market value. (4) Derivatives transactions, excluding those for trading purposes, are valued at fair value method. (5) 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 six months ended September 30, As a result of this change, the interim income before income taxes increased by 1,555 million yen, when compared with the method used hitherto. (6) Reserve for Possible Loan Losses is provided as follows in accordance with internal criteria regarding write-offs and reserves : (a) The reserve for claims on debtors who are legally or substantially bankrupt (Non-performing or Quasi Non-performing) 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 (Non-performing or Quasi Non-performing), 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 six months ended September 30, The amount of the charge-off was 1,005,034 million yen for the six months. 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 (7) Reserve for Possible Losses on Securities is provided for possible losses on securities and other investments based on the amount necessary, considering the financial condition of the issuing companies. (8) Reserve for Bonuses is provided for payment of bonuses to employees. Within the estimated amount payable to employees, the amount corresponding to the six months ended September 30, 2001, is recorded. This had hitherto been recorded under Other Liabilities. (9) Reserve for Retirement Benefit is provided for future pension payments to employees. The reserve is recorded based on the projected benefit obligation and pension plan asset amount at the end of the six months ended September 30, T he unrecognized net obligation (65,629 million yen) is amortized pro rata over 5 years, and 6 /12 multiplied by the pro rata amount is recorded for the six months ended September 30, (10) Reserve for Contingent Liabilities Related to Loans Sold of Sanwa Bank is provided based on the estimated liabilities of future losses for the loans sold, considering the fair value of collateral of loans sold to the Cooperative Credit Purchasing Company, Limited. (11) The Bank and its domestic consolidated subsidiaries adopt 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 checking (i) whether the total risk in relation to derivatives instruments, used as hedging instruments, is within established risk limits as set out in the risk management policy and (ii) whether the interest rate risk arising on hedged items has been reduced. Hedging against risks of forex fluctuations on foreign currency securities (other than bonds) is accounted for using the deferral method of hedge accounting. The deferral method for hedge accounting is also applied to certain assets or liabilities other than the abobe. Other hedging of the Bank's domestic consolidated subsidiaries adopt the deferral method for hedge accounting. (12) As at September 30, 2001 Loans to Bankrupt Companies and Other Delinquent Loans were 82,773 million yen and 1,039,473 million yen, respectively. (13) As at September 30, 2001 Loans Past Due 3 Months or More, other than Loans to Bankrupt Companies and Other Delinquent Loans, were 106,657 million yen. (14) As at September 30, 2001 Restructured Loans were 228,474 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 247,183 million yen and 192,849 million yen, respectively

7 (16) Market value, net unrealized profits/ losses and other information regarding securities are as follows. In addition to "Securities", trading account securities, negotiable due from banks and commercial paper under "Trading Assets", negotiable due from banks under "Cash and Due from Banks" and commodity funds under "Monetary Receivables Bought" are included. Trading Securities Book value as of September 30, 2001 Net profits/ losses reflected in the Statements of Income for the six months ended September 30, ,513,494 million yen (6,424) million yen Held-to-maturity debt securities with market value As of September 30, 2001 Profits/Losses (Millions of Yen) Book value Market value Net Profits Losses Bonds Japanese Government Bonds Municipal Bonds Corporate Bonds and Notes 2,005 2, Others 21,513 21, Total 23,518 23, Available-for-sale securities with market value As of September 30, 2001 Profits/Losses (Millions of Yen) Book value Market value Net Profits Losses Japanese Equities 2,405,915 2,261,403 (144,511) 216, ,084 Japanese Bonds 4,684,441 4,694,927 10,485 23,291 12,806 Japanese NationalGovernment Bonds 3,755,029 3,747,337 (7,691) 2,378 10,070 Japanese Local Government Bonds 732, ,752 13,104 15,412 2,308 Japanese Corporate Bonds and 196, ,837 5,072 5, Financial Debentures Others 1,624,141 1,632,734 8,592 35,982 27,389 Total 8,714,498 8,589,065 (125,433) 275, ,280 Net Unrealized Profits/ Losses on Available-for-sale Securities, Net of Taxes, as of September 30, 2001, is (79,573) million yen: net unrealized profits/ losses on available-for-sale securities shown in the above table of (125,433) million yen, less deferred tax liabilities of 45,914 million yen, less minority interests equivalent of 589 million yen, plus parent bank's interest of 583 million in net unrealized profit/ loss of available-for-sale securities held by affiliates accounted for under the equity method. (17) The Bank sold avaliable-for-sale securities during the six months ended September 30, 2001 as follows: Book value Profits on sale Losses on sale 12,108,784 million yen 181,461 million yen (49,108) million yen (18) Held-to-maturity debt securities and available-for-sale securities whose market value is not readily determinable (Millions of Yen) Held-to-maturity debt securities As of September 30, 2001 Book value Unlisted foreign bonds 2,326 Available-for-sale securities Unlisted bonds 332,904 Unlisted stocks (excluding over-the-counter stocks) 140,928 Negotiable due from banks 50,742 Unlisted foreign securities 29,

8 (19) The following is the redemption 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 2,402, ,507 2,041,534 53,335 Japanese National Government Bonds 2,319, ,121 1,306,643 15,700 Japanese Local Bovernment Bonds 34, , ,531 18,206 Japanese Corporate Bonds and Financial Deventures 48, , ,358 19,429 Others 356, , , ,807 Total 2,758,874 1,447,424 2,171, ,143 (20) The following is the Money Held in Trust Money Held in Trust for trading purpose Book value as of September 30, 2001 Net profits/losses reflected in the Statements of Income for the six months ended September 30, ,240 million yen (237) million yen (21) Pursuant to overdraft agreements and commitments to provide loans, the Bank may provide loans with customers up to certain limits. Among such limits, 13,406,753 million yen remains unused of which 11,914,716 million yen is based on contracts to be terminated within a year or revocable for the Bank at any time without any conditions. (22) Concurrent with the adoption of accounting standard for financial instruments, the following are adopted as from the six months ended September 30, (1) The net unrealized profits or losses from the marked-to-market valuation of available-for-sale securities and money held in trust, after taking deferred tax effects into account, are recorded as Net Unrealized Profits/ Losses on Available-for-sale Securities, Net of Taxes. As a result, 'Securities' decreased 124,904 million yen, and 79,573 million yen in 'Net Unrealized Profits/ Losses on Available-for-sale Securities, Net of Taxes' was recorded. (2) For dividends of stocks with market prices, these had hitherto been recorded as income for the fiscal year in which there was a resolution on the dividends at the shareholders' meeting or Board of Directors' meeting of the issuing company. But as from the six months ended September 30, 2001, concurrent with the marked-to-market valuation of available-for-sale securities, the non accrued dividend amount based on the forecast dividend per share announced for each stock is estimated and recorded. Due to this change, accrued income and advances under 'Other Assets' increased 7,118 million yen and 1,779 million yen respectively, and income before income taxes increased 8,898 million, when compared with the method hitherto. (23) Amounts less than one million yen are omitted

9 CONSOLIDATED STATEMENTS OF INCOME Six months ended September 30, Year ended March 31, 2001 Millions of yen (Unaudited) (Unaudited) Income: Interest Income 568, ,567 1,172,695 Interest on Loans and Discounts 365, , ,862 Interest on and Dividends from Securities 109,167 72, ,161 Fees and Commissions 91,585 86, ,987 Trading Revenue 40,275 20,836 48,844 Other Operating Income 217,789 50, ,998 Other Income 133, , ,991 Total Income 1,052, ,708 1,898,518 Expenses: Interest Expenses 233, , ,939 Interest on Deposits 148, , ,304 Fees and Commissions 22,252 26,212 48,594 Trading Expenses ,780 Other Operating Expenses 107,636 51, ,632 General and Administrative Expenses 236, , ,152 Other Expenses 446, , ,906 Total Expenses 1,046, ,522 2,079,007 Income (Loss) before Income Taxes 5, ,186 (180,488) Less:Provision for Income Taxes 17,665 54,662 28,279 Less:Deferred Income Taxes 26,719 26,447 (61,570) Less:Minority Interests in Net Income 3,183 3, Net Income (Loss) (42,327) 27,669 (147,652) - 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 six months ended September 30, 2001 and the increase/decrease of the valuation profits/losses at the end of the six months ended September 30, 2001 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 six months ended September 30, 2001 and the increase/ decrease of the amounts of profits/losses based on the assumption that transactions were settled at the end of the six months ended September 30, 2001 from the fiscal year ended March 31, (2) Other Expenses for the six months ended September 30, 2001 includes transfer to Reserve for Possible Loan Losses of 96,678 million yen, Write-off of Loans of 112,745 million yen, Losses on Sales of Stocks and Other Equity Securities of 37,698 million yen, and Revaluation Losses of Stocks and Other Equity Securities of 127,388 million yen. Also, expenses for amortization of unrecognized net pension obligation of 5,770 million yen, pursuant to a change in accounting policy, is included. (3) Other Income for the six months ended September 30, 2001 includes 45,834 million yen for gains on the establishment of a retirement benefit trust. (4) Amounts less than one million yen are omitted

11 CONSOLIDATED STATEMENTS OF RETAINED EARNINGS Six months ended Sep. 30, Year ended Mar. 31, 2001 Millions of yen (Unaudited) (Unaudited) Balance at Beginning of Six Months/Fiscal Year 320, , ,961 Additions: 2,355 3,630 16,123 Increase Resulted from Newly Consolidated Subsidiaries Increase Resulted from Reversal of Revaluation 2,355 3,630 Reserve for Land 16,091 Deductions: 2,527 12,668 25,332 Dividend Declared 2,527 12,668 25,332 Net Income for Six Month/Fiscal Year (42,327) 27,669 (147,652) Balance at End of Six Months/Fiscal Year 277, , ,099 Note : Amounts less than one million yen are omitted

12 CONSOLIDATED STATEMENTS OF CASH FLOWS Six Months Ended September 30, Year ended March 31, 2001 Millions of yen (Unaudited) (Unaudited) (Unaudited) Cash Flows from Operating Activities Income Before Income Taxes 5, ,186 (180,488) Depreciation 8,461 9,399 20,216 Amortization of Goodwill 1,863 (5,861) (7,396) Equity in Earnings of Affiliates 5,847 18,966 17,788 Net Increase (Decrease) in Reserve for Possible Loan Losses (90,563) 15, ,328 Net Increase (Decrease) in Reserve for Losses on Investment to Securities (1,998) 321 1,429 Net Increase (Decrease) in Reserve for Contingent Liabilities Related to Loans Sold (18,145) (2,398) (30,857) Net Increase (Decrease) in Reserve for Supporting Specific Borrowers - - (3,372) Net Increase (Decrease) in Reserve for Bonus Net Increase (Decrease) in Reserve for Employee Retirement Benefit 72,126 1,562 2,399 Interest Income (568,582) (568,567) (1,172,695) Interest Expenses 233, , ,939 Net (Gain) Loss on Securities (3,673) (170,591) (227,105) Net (Gain) Loss on Money Held in Trust ,140 Net (Gain) Loss on Foreign Exchange Transactions 11, Net (Gain) Loss on Sales of Premises and Equipment 5,318 4,079 16,217 Net (Gain) Loss on Establishment of Pension Trust (45,834) - - Net (Increase) Decrease in Trading Assets 66,450 (200,275) (532,205) Net Increase (Decrease) in Trading Liabilities 6,838 99, ,873 Net (Increase) Decrease in Loans and Bills Discounted 1,661, , ,257 Net Increase (Decrease) in Deposits (698,274) 1,262,903 2,113,334 Net Increase (Decrease) in Negotiable Certificates of Deposit (2,178,779) 630,649 1,633,437 Net Increase (Decrease) in Borrowed Money Excluding Subordinated Debt (312,296) 26,337 50,831 Net (Increase) Decrease in Due from Banks Excluding Due from Bank of Japan 71, Net (Increase) Decrease in Call Loans and Monetary Receivables Bought 36, , ,003 Net (Increase) Decrease in Collateral Deposits on Securities Borrowed (924,911) (225,755) (146,866) Net Increase (Decrease) in Call Money and Other Fundings Related to Operating Activities (529,666) 1,461, ,960 Net Increase (Decrease) in Commercial Paper 455,886 (119,619) 173,963 Net Increase (Decrease) in Collateral Deposits on Securities Lent (490,441) (58,507) 638,447 Net (Increase) Decrease in Foreign Exchange Assets 32,814 (26,992) (129,969) Net Increase (Decrease) in Foreign Exchange Liabilities (42,204) 25,578 67,957 Net Increase (Decrease) in Corporate Bonds Resulted from Issuance, Redemption and Repurchase 217, , ,852 Interest Received 665, ,216 1,144,436 Interest Paid (249,907) (311,546) (626,672) Others, Net 1,445 49, ,848 Sub-total (2,593,039) 3,809,215 5,647,031 Income Taxes Paid (14,462) (69,319) (76,701) Net Cash Provided by (Used in) Operating Activities (2,607,501) 3,739,895 5,570,

13 CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) Six Months Ended September 30, Year ended March 31, 2001 Millions of yen (Unaudited) (Unaudited) (Unaudited) Cash Flows from Investing Activities Purchases of Securities (12,395,443) (9,297,694) (21,046,542) Proceeds from Sales of Securities 12,117,058 5,065,987 13,154,680 Proceeds from Maturities of Securities 2,763,253 1,782,437 4,386,473 Increase in Money Held in Trust (774) (38) (1,564) Decrease in Money Held in Trust 25, Expenditures for Premises and Equipment (19,395) (9,963) (28,668) Proceeds from Sales of Premises and Equipment 1,968 7,332 28,512 Expenditures for Purchases of Consolidated Subsidiaries 0 (41) 136,823 Proceeds from Sales of Consolidated Subsidiaries Others, Net (857) (4,764) (7,338) Net Cash Provided by (Used in) Investing Activities 2,491,520 (2,456,740) (3,376,906) Cash Flows from Financing Activities Proceeds from Issuance of Subordinated Debt 13,000 6,000 36,000 Expenditures for Repayment of Subordinated Debt (85,500) (5,000) (56,500) Proceeds from Issuance of Subordinated Bonds 329,552 9,100 60,497 Redemption and Repurchase of Subordinated Bonds (70,440) (92,300) (230,360) Proceeds from Issuance of Capital Stocks to Minority Interests 1, Dividends Paid (2,527) (12,668) (25,332) Dividends Paid to Minority Interests (4,802) (2,938) (5,905) Expenditures for Purchase of Treasury Stocks - (190) (498) Proceeds from Sales of Treasury Stocks Net Cash Provided by (Used in) Financing Activities 181,127 (97,609) (221,421) Effect of Exchange Rate Changes on Cash and Cash Equivalents 4,772 8,946 6,821 Net Increase (Decrease) in Cash and Cash Equivalents 69,918 1,194,491 1,978,823 Cash and Cash Equivalents at Beginning of Fiscal Year 4,232,343 2,255,358 2,255,358 Decrease in Cash and Cash Equivalents due to Change (3,303,153) - - in definition of Cash and Cash Equivalents Decrease in Cash and Cash Equivalents Caused by Exclusion from Scope of Consolidated (0) (1,839) (1,839) Increase in Cash and Cash Equivalents due to Merger of Subsidiaries Cash and Cash Equivalents at End of Fiscal Year 999,778 3,448,011 4,232,343 Notes: (1) Amounts less than one million yen are omitted. (2) For the purpose of the consolidated statements of cash flows, "Cash and Cash Equivalents" is "Cash and Due from Banks" in the consolidated balance sheets

14 SEGMENT INFORMATION 1.Segment Information by Type of Business Six Months ended Elimination and September 30, 2001 Banking Leases Others Total Corporate Assets Consolidated I Ordinary Income 859,633 99,561 55,331 1,014,527 (18,770) 995,756 (1)Ordinary Income from Outside Customers 854,693 94,025 47, , ,756 (2)Internal Ordinary Income between Segments 4,940 5,536 8,294 18,770 (18,770) - II Ordinary Expense 899, ,634 52,847 1,053,447 (17,945) 1,035,501 Ordinary Profit (I-II) (40,331) (1,072) 2,483 (38,920) (824) (39,745) 2.Segment Information by Location Six Months ended Elimination and September 30, 2001 Japan The Americas Europe Asia/Oceania Total Corporate Assets Consolidated I Ordinary Income 820, ,771 57,561 79,567 1,093,281 (97,524) 995,756 (1)Ordinary Income from Outside Customers 760, ,995 52,659 73, , ,756 (2)Internal Ordinary Income between Segments 59,736 26,776 4,901 6,110 97,524 (97,524) - II Ordinary Expense 881, ,194 58,491 61,269 1,111,140 (75,638) 1,035,501 Ordinary Profit (I-II) (60,802) 25,576 (929) 18,297 (17,858) (21,886) (39,745) Six Months ended Elimination and September 30, 2000 Japan The Americas Europe Asia/Oceania Total Corporate Assets Consolidated I Ordinary Income 799, ,226 51,628 84,002 1,094,512 (154,556) 939,956 (1)Ordinary Income from Outside Customers 721, ,504 39,226 77, , ,956 (2)Internal Ordinary Income between Segments 78,166 57,722 12,401 6, ,556 (154,556) - II Ordinary Expense 709, ,910 53,989 58, ,033 (139,412) 826,621 Ordinary Profit (I-II) 90,436 15,316 (2,361) 25, ,478 (15,143) 113,

15 Fiscal Year Ended Elimination and March 31, 2001 Japan The Americas Europe Asia/Oceania Total Corporate Assets Consolidated I Ordinary Income 1,596, , , ,944 2,260,492 (381,395) 1,879,096 (1)Ordinary Income from Outside Customers 1,397, , , ,874 1,879,096-1,879,096 (2)Internal Ordinary Income between Segments 198, ,963 36,919 26, ,395 (381,395) - II Ordinary Expense 1,771, , , ,886 2,412,610 (361,819) 2,050,790 Ordinary Profit (I-II) (175,133) 4,865 (5,907) 24,058 (152,117) (19,576) (171,693) (1) In place of Net Sales and Operating Profit for non-financial companies, the tables on the above show Ordinary Income and Ordinary Profit of the Bank and its consolidated subsidiaries, respectively. Ordinary Income and Ordinary Profit are divided into Japan and other areas according to the degrees of geographic adjacency, similarity of economic activities, and relationships of business operations. (2) The Americas includes, but not limited to, United States and Canada. Europe includes, but not limited to, United Kingdom and Belgium. Asia/ Oceania includes, but not limited to, Hong Kong, Singapore, People's Republic of China and Australia. (3) The Bank began to apply accounting standard for depreciation of buildings from the six months ended Sept. 30, As a result, compared with the figures under the previous accounting rules, Ordinary Expense decreased by 1,524 million yen and Ordinary Profit increased by the same amount in Japan; Ordinary Expense decreased by 12 million yen and Ordinary Profit increased by the same amount in the Americas; Ordinary Expense decreased by 4 million yen and Ordinary Profit increased by the same amount in Europe; and Ordinary Expense decreased by 13 million yen and Ordinary Profit increased by the same amount in Asia/Oceania. (4) Regarding dividends on stocks with market prices, these had hitherto been accounted for under earnings in the fiscal year that there was a shareholders' meeting and Board of Directors' meeting of the issuing company. But as from the six months ended Sept. 30, 2001, these are accounted for as non accrued dividends based on the forecast dividend per share announced by the company, concurrent with the implementation of marked-to-market valuation of available-for-sale securities. Ordinary Income increased by 8,898 million yen and Ordinary Profit increased by the same amount in Japan

16 3. Ordinary Income from Overseas Operations Ordinary Income Consolidated Ratio of Ordinary Income from Overseas Ordinary from Overseas Operations Operations Income over Consolidated Ordinary Income Six Months Ended Sept. 30, , , % Six Months Ended Sept. 30, , , % Year Ended Mar. 31, ,408 1,879, % Notes: (1) Ordinary Income form Overseas Operation is shown, in stead of Overseas Sales Amount for non-financial companies. (2) Ordinary Income from Overseas Operations primarily includes income from transactions of the Bank's overseas branches, and income from transactions of the overseas consolidated subsidiaries (excluding Internal Ordinary Income between consolidated entities). Segment Information by Location on Ordinary Income from Overseas Operations is not shown here since Ordinary Income from Overseas Operations is not classified by the domicile of obligators

17 MARKET VALUE INFORMATION ON SECURITIES AND MONEY HELD IN TRUST (End of September 30,2001) A. Securities The following includes Securities, "negotiable due from banks," contained in Cash and Due from Banks, and "commodity funds," contained in Monetary Receivables Bought. 1.Held-to-Maturity Bonds with Market Value As of September 30, 2001 Book Market Unrealized Profit/Loss Type Value Value Net Profit Loss Japanese Bonds Japanese National Government Bonds Japanese Local Bovernment Bonds Japanese Corporate Bonds and Financial Deventures 2,005 2, Others 21,513 21, Total 23,518 23, Market Value: Stocks: Average market value over one month period prior to the closing of the interim accounting period. Others: Market value at the end of the interim accounting period. 2.Available-for-Sale Securities with Market Value As of September 30, 2001 Book Market Unrealized Profit/Loss Type Value Value Net Profit Loss Japanese Equities 2,405,915 2,261,403 (144,511) 216, ,084 Japanese Bonds 4,684,441 4,694,927 10,485 23,291 12,806 Japanese NationalGovernment Bonds 3,755,029 3,747,337 (7,691) 2,378 10,070 Japanese Local Government Bonds 732, ,752 13,104 15,412 2,308 Japanese Corporate Bonds and Financial Debentures 196, ,837 5,072 5, Others 1,624,141 1,632,734 8,592 35,982 27,389 Total 8,714,498 8,589,065 (125,433) 275, ,280 3.Securities without Market Value As of September 30, 2001 Type Book Value Held-to-Maturity Bonds Unlisted Foreign Securities 2,326 Available-for-Sale Securities Unlisted Bonds 332,904 Unlisted Stocks (excluding over-the-counter stocks) 140,928 Negotiable Due from Banks 50,742 Unlisted Foreign Securities 29,175 Others

18 B. Money Held in Trust 1. Held-to-Maturity Money Held in Trust There is no Held-to-Maturity Money Held in Trust. 2. Available-for-Sale Money Held in Trust (other than Held-to-Maturity Money Held in Trust and Investment Money Held in Trust) There is no Available-for-Sale Money Held in Trust (other than Held-to-Maturity Money Held in Trust and Investment Money Held in Trust). C. Unrealized Gains (Losses) on Available-for-Sale Securities As of September 30, 2001 Type Book Value Net Unrealized Gains (Losses) (125,433) Available-for-Sale Securities (125,433) Available-for-Sale Money Held in Trust - Less: Deferred Tax Liabilities 45,914 Net Unrealized Gains (Losses), Net of Taxes (79,518) (before adjustment for minority interest) Less: Minority Interest 589 Parent Company's Share of Net Unrealized Gains (Losses) Securities Held by Affiliates Accounted for under Equity Method 533 Net Unrealized Gains, Net of Taxes (79,573)

19 MARKET VALUE INFORMATION ON SECURITIES AND MONEY HELD IN TRUST (End of September 30,2000) A. Securities The following includes Securities, "negotiable due from banks," contained in Cash and Due from Banks, and "commodity funds," contained in Monetary Receivables Bought. 1.Held-to-Maturity Bonds with Market Value As of September 30, 2000 Book Market Unrealized Profit/Loss Type Value Value Net Profit Loss Japanese Bonds Japanese National Government Bonds Japanese Local Bovernment Bonds Japanese Corporate Bonds and Financial Deventures 2,011 2, Others 28,089 27,978 (110) 57 (168) Total 30,101 30,016 (84) 83 (168) Market Value: Market value at the end of the accounting period. Mark to the market method is not applied. 2.Available-for-Sale Securities with Market Value As of September 30, 2000 Book Market Unrealized Profit/Loss Type Value Value Net Profit Loss Japanese Equities 3,023,197 3,541, , ,528 (313,276) Japanese Bonds 5,341,423 5,314,210 (27,213) 8,423 (35,636) Japanese NationalGovernment Bonds 4,653,578 4,624,838 (28,739) 774 (29,514) Japanese Local Government Bonds 578, ,702 (205) 5,348 (5,554) Japanese Corporate Bonds and Financial Debentures 108, ,669 1,732 2,300 (567) Others 1,306,484 1,317,155 10,670 34,623 (23,953) Total 9,671,105 10,172, , ,575 (372,866) 3.Securities without Market Value As of September 30, 2000 Type Book Value Held-to-Maturity Bonds Unlisted Foreign Securities 4,264 Available-for-Sale Securities Unlisted Bonds 278,924 Unlisted Stocks (excluding over-the-counter stocks) 187,177 Negotiable Due from Banks 43,437 Unlisted Foreign Securities 23,105 Others 24,

20 B. Money Held in Trust 1. Held-to-Maturity Money Held in Trust There is no Held-to-Maturity Money Held in Trust. 2. Available-for-Sale Money Held in Trust (other than Held-to-Maturity Money Held in Trust and Investment Money Held in Trust) There is no Available-for-Sale Money Held in Trust (other than Held-to-Maturity Money Held in Trust and Investment Money Held in Trust). C. Unrealized Gains (Losses) on Available-for-Sale Securities As of September 30, 2000 Type Book Value Net Unrealized Gains (Losses) 501,709 Available-for-Sale Securities 501,709 Available-for-Sale Money Held in Trust - Less: Deferred Tax Liabilities 192,312 Net Unrealized Gains (Losses), Net of Taxes 309,397 (before adjustment for minority interest) Less: Minority Interest 11,948 Parent Company's Share of Net Unrealized Gains (Losses) Securities Held by Affiliates Accounted for under Equity Method (3,134) Net Unrealized Gains, Net of Taxes 294,

21 MARKET VALUE INFORMATION ON SECURITIES AND MONEY HELD IN TRUST (End of March,2001) A. Securities The following includes Securities, "negotiable due from banks," contained in Cash and Due from Banks, and "commodity funds," contained in Monetary Receivables Bought. 1.Held-to-Maturity Bonds with Market Value As of March 31, 2001 Book Market Unrealized Profit/Loss Type Value Value Net Profit Loss Japanese Bonds Japanese National Government Bonds Japanese Local Bovernment Bonds Japanese Corporate Bonds and Financial Deventures 2,008 2, Others 20,949 21, Total 22,958 23, Market Value: Market value at the end of the accounting period. Mark to the market method is not applied. 2.Available-for-Sale Securities with Market Value As of March 31, 2001 Book Market Unrealized Profit/Loss Type Value Value Net Profit Loss Japanese Equities 2,900,591 3,162, , , ,171 Japanese Bonds 6,190,626 6,288,010 97, ,468 4,084 Japanese NationalGovernment Bonds 5,255,851 5,323,720 67,869 71,122 3,252 Japanese Local Government Bonds 693, ,571 22,047 22, Japanese Corporate Bonds and Financial Debentures 241, ,718 7,466 7, Others 2,150,127 2,181,242 31,114 51,053 19,938 Total 11,241,345 11,631, , , ,194 3.Securities without Market Value As of March 31, 2001 Type Book Value Held-to-Maturity Bonds Unlisted Foreign Securities 3,605 Available-for-Sale Securities Unlisted Bonds 277,364 Unlisted Stocks (excluding over-the-counter stocks) 225,730 Negotiable Due from Banks 38,106 Unlisted Foreign Securities 30,939 Others

22 B. Money Held in Trust 1. Held-to-Maturity Money Held in Trust There is no Held-to-Maturity Money Held in Trust. 2. Available-for-Sale Money Held in Trust (other than Held-to-Maturity Money Held in Trust and Investment Money Held in Trust) There is no Available-for-Sale Money Held in Trust (other than Held-to-Maturity Money Held in Trust and Investment Money Held in Trust). C. Unrealized Gains (Losses) on Available-for-Sale Securities As of March 31, 2001 Type Book Value Net Unrealized Gains (Losses) 390,297 Available-for-Sale Securities 390,297 Available-for-Sale Money Held in Trust - Less: Deferred Tax Liabilities 148,273 Net Unrealized Gains (Losses), Net of Taxes 242,024 (before adjustment for minority interest) Less: Minority Interest 5,438 Parent Company's Share of Net Unrealized Gains (Losses) Securities Held by Affiliates Accounted for under Equity Method 866 Net Unrealized Gains, Net of Taxes 237,

23 MARKET VALUE INFORMATION ON DERIVATIVES TRANSACTIONS (Six Months Ended September 30, 2001) 1. Interest Related Transactions As of September 30, 2001 Standardized Interest Rate Futures 147,270,666 (5,352) (5,352) Interest Rate Options 5,303, Forward Rate Agreement 3,303,400 (1,008) (1,008) Interest Rate Swaps 109,757,460 73,658 73,658 Others 10,655,362 20,869 29,004 Total 88,743 96,974 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) Others include Cap and Floor transactions. 2. Currency Related Transactions As of September 30, 2001 Currency Swaps 3,848,114 (8,430) (8,430) Total (8,430) (8,430) 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 September 30, 2001 Currency Swaps 575,676 (1,934) (1,934) (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 six months and their profits and losses are affected 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 elimintated 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

24 As of September 30, 2001 Type Book Value Foreign Exchange Forward Contrancts 12,848,294 Currency Options 1,541, Equity Related Transactions As of September 30, 2001 Standardized Stock Index Futures 34,641 (32) (32) Stock Index Options 0 (182) 74 Equity Forward Agreements Securities Over-the-counter Options 1, Securities Over-the-counter Index Swaps 26,358 (1,929) (1,929) Total (2,107) (1,853) 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 September 30, 2001 Standardized Bond Futures 738,179 (127) (127) Bond Futures Options 157, Bond Options 173, Total 60 (101) 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 As of September 30, 2001 Commodity Swaps (Fuel) 12, Total Notes: The above Profits/Losses are stated on the Consolidated Statements of Income. Derivatives Transactions to which hedge accounting is applied are excluded

25 6. Credit Derivatives Related Transactions As of September 30, 2001 Over-the-counter Credit Default Swaps 435,789 (43) (43) Credit Default Options 9,000 (0) (0) Total (43) (43) Notes: The above Profits/Losses are stated on the Consolidated Statements of Income. Derivatives Transactions to which hedge accounting is applied are excluded. 7. Other Derivative Transactions As of September 30, 2001 Weather Options 1,269 (0) 54 Total (0) 54 Notes: The above Profits/Losses are stated on the Consolidated Statements of Income. Derivatives Transactions to which hedge accounting is applied are excluded

26 MARKET VALUE INFORMATION ON DERIVATIVES TRANSACTIONS 1. Interest Related Transactions As of September 30, 2000 Standardized Interest Rate Futures 15,295,370 (3,711) (3,711) Interest Rate Options 3,757,718 1, Forward Rate Agreement 3,553,828 (395) (395) Interest Rate Swaps 109,917, , ,562 Others 6,454,679 37,540 29,906 Total 169, ,572 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) Others include Cap and Floor transactions. 2. Currency Related Transactions As of September 30, 2000 Currency Swaps 3,147,689 10,443 10,443 Total 10,443 10,443 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, 2000) The Contractual Value etc. of such Currency Swaps accounted for on an accrual method is as follows: As of September 30, 2000 Currency Swaps 340,865 (2,248) (2,248) (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 six months and their profits and losses are affected 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 elimintated 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

27 As of September 30, 2000 Type Book Value Standardized Currency Futures 10,967 Foreign Exchange Forward Contrancts 9,137,032 Currency Options 802, Equity Related Transactions As of September 30, 2000 Standardized Stock Index Options 27, Securities Over-the-counter Options 3, 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 September 30, 2000 Standardized Bond Futures 538, Bond Futures Options 56, Bond Options 20, Total 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 is no commodity related derivatives transactions. 6. Credit Derivatives Related Transactions As of September 30, 2000 Over-the-counter Credit Default Swaps 438,643 (127) (127) Credit Default Options 18, (22) Total (53) (149) Notes: The above Profits/Losses are stated on the Consolidated Statements of Income. Derivatives Transactions to which hedge accounting is applied are excluded

28 MARKET VALUE INFORMATION ON DERIVATIVES TRANSACTIONS (Fiscal Year Ended March 31, 2001) 1. Interest Related Transactions As of March 31, 2001 Contractual Value Market Value Profits/Losses Type Total Over 1 year Standardized Interest Rate Futures Sold 4,953, ,309 (39,691) (39,691) Bought 4,232, ,843 33,269 33,269 Interest Rate Options Sold 1,788, , (185) Bought 1,656, , Forward Rate Agreement Sold 2,944, ,569 2,605 2,605 Bought 2,039, ,739 (2,376) (2,376) Interest Rate Swaps Receipts Fixed, Payments Fixed 1,000 1, Receipts Fixed, Payments Floating 60,520,545 42,879,537 1,307,975 1,307,975 Receipts Floating, Payments Fixed 47,301,622 34,437,884 (1,318,639) (1,318,639) Basis Swaps 2,936,789 2,438,193 2,152 2,152 Others Sold 6,744,561 5,405,946 18,337 7,642 Bought 3,990,024 2,974,323 40,971 24,284 Total 46,045 17,389 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) In the above Market Value Information on Derivatives, market values of standardized transactions are calculated by using the closing prices at the Tokyo International Financial Futures Exchange and others. Market values of the over-the-counter transactions are based on the discounted present value or the option pricing calculation model. (3) Others include Cap, Floor and Swaption transactions

29 2. Currency Related Transactions As of March 31, 2001 Type Contractual Value Over 1 year Market Value Profits/Losses Currency Swaps 3,868,592 3,127,491 (11,568) (11,568) Total (11,568) (11,568) 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 (3) below are excluded. (2) Market values are based on the discounted present value. (3) 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, 2000) The Contractual Value etc. of such Currency Swaps accounted for on an accrual method is as follows: As of March 31, 2001 Currency Swaps 1,095,533 (28,761) (28,761) 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, 2001 Type Book Value Standardized Currency Futures Sold 5,618 Bought 16,781 Foreign Exchange Forward Contracts Sold 6,365,633 Bought 6,220,084 Currency Options Sold 734,577 Bought 829,