UFJ Holdings, Inc. Financial Results for Fiscal Year ended March 31, 24 <Data Book> May 25, 24
<Data Book> - Table of Contents - Financial Results Income ------------ 2 Interest Revenue and Expenses (UFJ Bank) ------------ 4 Loans and Deposits (UFJ Bank) ------------ 5 Interest Revenue and Expenses (UFJ Trust) ------------ 6 Statement of Source and Application of Funds ------------ 7 Assets and Liabilities ------------ 8 Non-interest Revenue and Expenses (UFJ Bank) ------------ 9 Trust Related Income (UFJ Trust) ------------ 1 G&A Expenses - Other Income and Expenses ------------ 11 Consolidated Financial Results ------------ 12 Actions toward Improvement of Financial Positions Credit Related Expenses ------------ 14 Loans under Financial Reconstruction Law ------------ 15 Loan Portfolio ------------ 16 Portfolio by Internal Rating ------------ 17 Coverage Ratio ------------ 18 DCF Method ------------ 19 Final Disposal ------------ 2 Large-scale Financial Supports to Troubled Borrowers since FY1 ------------ 22 Current Condition of Large Borrowers ------------ 23 UFJ Strategic Partner ------------ 3 Stock Portfolio ------------ 31 UFJ Equity Investments / UFJ Trust Equity ------------ 32
- Table of Contents - <Data Book> (continued) Equity Capital BIS Capital Ratio ------------ 34 Capital Amounts & Risk-weighted Assets ------------ 35 Deferred Tax Assets ------------ 36 Basis for Calculation of Deferred Tax Assets ------------ 37 Actions toward Improvement of Profitability Earnings by Business Line ------------ 4 UFJ Bank / Retail Banking ------------ 42 Interest Income from Loans ------------ 43 Housing Loans ------------ 44 Non-interest Income ------------ 45 Improving Profitability of Mass Sector ------------ 46 UFJ Bank / Corporate Banking ------------ 47 Interest Income from Loans ------------ 48 Interest Income from Loans by Segments ------------ 49 Measures to increase lending ------------ 5 Non-interest Income ------------ 51 UFJ Bank / Global Banking & Trading ------------ 53 Overseas Commercial Banking ------------ 54 UFJ Bank / Market Related ------------ 56 UFJ Trust Bank ------------ 57 Trust Related Business ------------ 58
- Table of Contents - <Data Book> (continued) Actions toward Improvement of Profitability (continued) General & Administrative Expenses ------------ 6 Consolidated Financial Results ------------ 61 Securities & Investment Banking ------------ 62 Asset Management ------------ 63 Leasing ------------ 64 Leasing and Factoring Business ------------ 65 Credit Card / Consumer Loan Business ------------ 66 <Reference> Nippon Shinpan ------------ 67 Reference ------------ 68
Financial Results UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 1
Income (combined for subsidiary banks, UFJSP, UFJEI and UFJTE) (Yen mil.) FY2 Change Gross Operating Profit 1,362,38 1,371,57 (9,19) G.O.P. from Domestic Banking Business 1,78,798 1,13,99 (52,192) Interest Income 77,22 729,829 (22,69) Trust Fees (before write-off) 66,575 77,413 (1,838) Fees & Commissions 197,134 147,594 49,539 Trading Revenue 5,272 9,442 (4,17) Other Operating Income 12,596 166,71 (64,114) G.O.P. from International Banking Business 283,581 24,579 43,2 Interest Income 72,995 61,595 11,4 Trust Fees (before write-off) 46 5 (4) Fees & Commissions 23,285 19,672 3,612 Trading Revenue 141,414 88,528 52,886 Other Operating Income 45,84 7,732 (24,892) Expenses 567,736 592,596 (24,859) Personnel expenses (minus) 21,225 223,131 (12,95) Non personnel expenses (minus) 329,8 339,969 (1,888) tax (minus) 28,43 29,495 (1,65) Business Profit Before Net Transfer to General Reserve) 794,643 778,974 15,669 Excluding Gains & Losses on Bonds 673,39 582,25 91,284 Net Transfer to General Reserve (minus) 342,356 252,25 9,33 Business Profit (before write-off in trust account) 452,287 526,948 (74,661) Gains & Losses on Bonds 121,334 196,949 (75,614) Other Income & Expenses ('rinji son-eki') (879,497) (1,226,683) 347,186 Gains/losses on stocks & other equity securities 327,537 (617,72) 945,24 Credit costs (1,31,972) (564,63) (467,368) Loans Written-off (39,978) (25,35) (14,627) Net Transfer to Specific Reserve (522,444) (138,161) (384,282) Losses on Sales of Loans to CCPC (9) (6,476) 6,385 Transfer to Reserve for Contingent Liabilities Related to Loan Sold - (2,327) 2,327 Losses on Loans Securitized / Sold (83,531) (46,1) (37,53) Gains on Loans Securitized / Sold 21,626 15,233 6,393 Losses on Supporting Specific Borrowers (52,973) (137,581) 84,67 Transfert to Reserve for Posible Losses on Support of Specific Borrowers (5,57) - (5,57) Transfert to Specific Reserve for Loans to Refinancing Countries 1,477 1,62 415 Credit Costs (Trust Account) (16,93) (18,785) 1,855 Trust Account Loss Indemnified - (5,541) 5,541 Special Business Tax imposed on Banks (6,34) (11,951) 5,917 Employee Retirement Benefits (44,379) (25,917) (18,461) Net Transfer to Reserve for Investment Losses (51,913) 739 (52,652) Ordinary Profit (427,29) (699,735) 272,525 (Yen mil.) FY2 Change Ordinary Profit (427,29) (699,735) 272,525 Extraordinary Gains/Losses 9,518 61,414 29,14 Gains/losses on Sales of Premises and Equipment (19,37) (24,231) 4,924 Gains on Sales of Premises and Equipment 227 69 (462) Losses on Sales of Premises and Equipment (19,534) (24,922) 5,387 Collection of Written-off Claims 53,773 78,467 (24,693) Transfer from Reserve for Possible Loan Losses 25,68-25,68 Transfer from Reserve for Possible losses on Support of Specific Borrowers - 1,36 (1,36) Transfer from Reserve for Contingent Liabilities Related to Loans Sold 237-237 Gains on Establishment of Retirement Benefit Trusts 4,887 17,428 23,458 Gains on Tax Refund from the Tokyo Metropolitan Government 25,695-25,695 Amortization of Net Retirement Benefits Obligation at Transition (26,315) (29,93) 3,615 Income before Income Taxes (336,691) (638,321) 31,629 Income Taxes (current)(minus) 3,562 1,244 2,318 Income Taxes (deferred)(minus) 35,338 (13,889) 49,228 Net Income (375,593) (625,676) 25,83 Credit-related Expenses (1,311,567) (752,183) (559,384) Gains/Losses on Bonds (Yen mil.) FY2 Change Gains/Losses on Bonds 121,334 196,949 (75,614) Gains on Sales 219,79 246,74 (26,994) Gains on Redemptions 158 64 93 Losses on Sales (95,68) (27,546) (68,61) Losses on Redemptions (2,36) (2,943) 18,96 Written-off (258) (699) 441 Gains/losses on stocks & other equity securities (Yen mil.) FY2 Change Gains/losses on stocks & other equity securities 327,537 (617,72) 945,24 Gains on Sales 397,795 62,665 335,129 Losses on Sales (57,774) (488,837) 431,63 Revaluation Losses (12,483) (191,531) 179,47 <Reference> Book Value of stocks & other equity securities sold 897,15 1,443,948 (546,932) UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 2
Income (UFJ Holdings) Consolidated (Yen mil.) FY2 Change Gross Operating Profit 1,625,265 1,613,493 11,771 Net Interest Income 825,12 868,451 (43,438) Trust Fees (before Write-off) 66,338 77,244 (1,95) Fees and Commissions 387,797 292,59 95,288 Trading Revenue 188,19 14,174 47,844 Other Operating Income 158,97 235,114 (77,16) General and Administrative Expenses (minus) 773,36 775,121 (2,84) Net Transfer to General Reserve (minus) 28,39 242,447 37,592 Other Income and Expenses (969,843) (1,265,318) 295,474 Gains & Losses on Stocks and Other Equity Securities 239,183 (61,774) 849,958 Credit Costs (1,134,32) (633,43) (51,258) Loans Written-off (426,34) (274,81) (152,223) Net Transfer to Specific Reserve (559,625) (16,412) (399,213) Losses on Sales of Loans to CCPC (495) (6,663) 6,168 Transfer to Reserve for Contingent Liabilities Related to Loans Sold - (3,278) 3,278 Non-consolidated (Yen mil.) FY2 Change Operating Revenue 2,416 18,286 2,13 Operating Expenses 2,791 5,86 (3,68) Operating Profit 17,625 12,426 5,199 Ordinary Profit 16,587 11,94 4,646 Income before Income Taxes 8,123 11,948 (3,824) Net Income 1,646 11,54 (894) Losses on Loans Securitized / Sold (112,764) (67,347) (45,416) Gains on Loans Securitized / Sold 21,626 15,233 6,393 Losses on Supporting Specific Borrowers (52,973) (137,581) 84,67 Transfer to Reserve for Possible Losses on Support of Specific Borrowers (5,57) - (5,57) Transfert to Specific Reserve for Loans to Refinancing Countries 1,292 1,88 23 Credit Costs (Trust Account) (16,93) (18,785) 1,855 Trust Account Loss Indemnified - (5,541) 5,541 Gains & Losses in Investment under Equity Method 7,887 321 7,566 Ordinary Pfofit (397,654) (669,392) 271,738 Extraordinary Gains and Losses 65,98 5,445 15,462 Reversal from Reserve for Possible Losses on Support of Specific Borrowers - 1,36 (1,36) Reversal from Reserve for Contingent Liabilities Related to Loans Sold 237-237 Collection of Written-off Claims 54,993 79,388 (24,395) Income before Income Taxes & Minority Interests (331,745) (618,946) 287,21 Provision for Income Tax 14,127 7,675 6,451 Deferred Income Tax 36,929 (37,93) 74,832 Minority Interests in Net Income 2,3 2,24 (2) Net Income (Loss) (42,86) (68,923) 26,117 Credit-related Expenses (1,376,4) (81,123) (565,917) <Reference> FY2 Change Consolidated Business Profit * 631.4 619.5 11.9 Consolidated Business Profit (After Write-offs in Trust Account) 614.5 6.7 13.7 *Managerial figures, based on internal managerial accounting, calculated by adding non-consolidated business profit of banking subsidiaries to profits/losses of UFJ Holdings, its subsidiaries and affiliates** taking into account the parent company 's ownerships ratios on each company and adjusting for internal transactions. **Pfofits/losses of UFJ Holdings, its subsidiaries and affiliates consist of Net Interest Income, Fees and Commissions, Trading Profit and Other Operating Income (Net) minus General and Administrative Expenses and Net Transfer to General Reserve. <Reference> FY2 Change Number of Consolidated Subsidiaries 111 115 (4) Number of Companies Accounted for Under Equity Method 27 24 3 UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 3
Interest Revenue and Expenses (UFJ Bank, UFJSP and UFJEI) (non-consolidated) Loan outstanding and yield declined, interest on securities increased (Domestic & International Business Line) Interest Income Revenue on Interest-earning Assets 5 4 3 2 1 Others Expenses on Interest-bearing Liabilities Others (Yen tril.) Loans and Bills Discounted Securities Deposits Interest Rate Swaps Deposits Received Bonds and Borrowings Interest Rate Swaps.76.5 36.5 46.5.91.84.54.51 46.2 46.5 35.5 34.4 741.3 926.7 662. 196.6 16.6 33.9 17.3 185.4 58.7 12..86.57 46.5 33.9 Sept. 2 Mar. 3 Sept. 3 Mar. 4-24.5 FY2 748.4 997.9 747.9 169.5 3.9 19.1 3.3 249.5 96.7 98.8 53.9 Profit Margin on Domestic Banking Business (%) 1..8.6.4.2. - Change (7.1) (71.1) (85.8) 27.1 (14.3) 14.7 (12.9) (64.) (37.9) 3.2 - (29.3) 1 st half of 362.4 453.2 336.9 Loan avg. bal. Deposit avg. bal. (Including NCD) Profit margin of funds Profit Margin between L&D Interest income -Yen 7.1 bil. Interest on loans: -Yen 85.8 bil. (Domestic -Yen 48.3 bil. / International -Yen 37.4 bil.) Domestic: (Loans avg.bal. -Yen 1.6 tril. / Yield -5bp) Weak loan demands / disposal of problem loans Loan securitization avg.bal.+yen.3 tril. Overseas: (Loans avg.bal. -Yen 1. tril., / Yield -32bp) Decrease loans to non-japanese clients Deposit (including NCD) : -Yen 37.9 bil. (Domestic - Yen 6.3 bil. / International - Yen 31.5 bil.) Domestic (Deposits avg.bal.+yen.19 tril. / Yield -1bp) Individual demand deposit increased Negotiable Certificates of Deposits decreased International (Deposit avg.bal.- Yen.7 tril. / Yield -6bp) Lower interest rate in overseas Dividend / Interest on Securities : +Yen 27.1 bil. JGB: + Yen 15.5 bil. (avg. bal. + Yen 3.4 tril./ Yield +3bp) Corp. Bond: +Yen 1.9 bil. (avg.bal.+yen.6 tril. / Yield -54bp) Stock: + Yen 5. bil. Dividend from subsidiaries Foreign Bond: + Yen 7.3 bil. (avg.bal.-yen.1 tril. / Yield +43bp) UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 4 88.8 9.9 6.3 11.1 9.7 29. 49.5-12.1
Loans and Deposits (UFJ Bank, UFJSP and UFJEI) (non-consolidated) Loan outstanding and yield decreased due to weak loan demands - Loan outstanding slightly increased from Sept. 3 (Yen tril.) Loans (End. Balance) 5 2.% 1.83% 1.74% 1.75% 1.74% 4 3. 2.5 2.1 2. 1.5% 3 1.% 2 36.5 37.4 35.1 35.9 1.5%.% Sept.2 Mar.3 Sept.3 Mar.4 Overseas & Offshore Domestic Domestic Loan Yield (Non-consolidated) (Classification according to BOJs Research on Industrial classification loans) Loans (Company size) Public, Government, etc. Individual 26% 4% 49% Large Corp. 21% SME (Domestic) Others 14% Finance & Insurance 13% Services 14% (Mar.31, 24) (Classification according to BOJs Research on Industrial classification loans) Loans (Industry) 17% Real Estate 24% Excluding Individual, Public, and Government Wholesale & Retail 18% Manufacturing (Yen tril.) 5 4 3 2 1 Deposits (End. Balance) 2.8 3.5 4.1 2.5 15 16.8 16.5 17.3 63% 62% 62% 58% 35% 31% 31% 29% 24.3 24.2 24.3 24.5 Sept.2 Mar.3 Sept.3 Mar.4 1% 8% 6% 4% 2% % Others Corporations Individuals % of Time Deposit % of Liquid Deposit Loans (Ending balance) Yen 37.9 tril. (- Yen 2. tril. from 3/3, + Yen.6 tril. from 3/9) Ratio of loans to SMEs & Individuals: 7.1% Deposits (Ending balance) Yen 46. tril. (+ Yen 2.1 tril. from 3/3, + Yen 1.6 tril. from 3/9) - Deposits from Individuals, corporate and Financial Institution increased UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 5
Interest Revenue and Expenses (UFJ Trust and UFJTE) (non-consolidated) (Domestic & International Business Line) Interest Income Revenue on Interest-earning Assets Others <Reference> Loans and Bills Discounted Securities Interest Rate Swaps Others Expenses on Interest-bearing Liabilities Deposits Received Bonds and Borrowings Interest Rate Swaps Loan Trusts etc. * 38.8 56.4 4.2 15.8.4 17.5 7.3 3..5 6.6 34.6 (Yen tril.) (%) 1 1. 8 6 4 2 - FY2 42.6 65.5 47.2 17.1-1.1 22.9 11.3 3.6 1. 6.8 39.7 Profit Margin on Domestic 3 Accounts**.81.85.8 9. 8.8 7.9 7.4 7.9 7.5.86 7.8 7.9 Sept.2 Mar.3 Sept.3 Mar.4.8.6.4.2. Change (3.7) (9.) (7.) (1.2) - (.7) (5.3) (4.) (.6) (.4) (.1) (5.) 1 st half of 16.6 25.4 Int.-earning Assets Avg. Bal. Int.-bearing Assets Avg. Bal. Profit Margin on Funds 2.2 4.9 -.2 8.7 3.9 1.4.3 2.9 2.3 **3 Accounts: Banking, Loan Trust, and Jointly Operated Designated Money Trust Interest Income (- Yen 3.7 bil.) Domestic : - Yen 3.8 bil. International : + Yen 9 mil. Loan: -Yen 7. bil. (avg.bal. - Yen 185. bil. / Yield - 14bp) Weak loan demands / disposal of problem loans Deposit: -Yen 4. bil. (avg.bal. + Yen 15.4 bil. / Yield - 12bp) Increase in demand deposits NCD (avg.bal. - Yen 184.4 bil. / Yield -1bp) Dividend / Interest on Securities: - Yen 1.2 bil. JGB: - Yen 3.6 bil. (Ave. Bal. - Yen 69.8 bil./ Yield -24bp) Stock: - Yen 2.2 bil. Sales of Cross Shareholdings Others: + Yen 4.2 bil. (Ave. Bal. - Yen 4.2 bil./ Yield +385bp) * Loan trust and Jointly Operated Designated Money Trust outstanding decreased by Yen 188. bil. (Average Balance) UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 6
Statement of Source and Application of Funds (non-consolidated) (Yen mil.) UFJ Bank UFJ Trust Bank Domestic Sector Average Income Yield (%) Average Income Yield (%) Assets 52,898,855 79,578 1.341 5,512,294 53,759.972 Loans and Bills Discounted 34,214,125 595,911 1.741 2,91,322 39,259 1.345 Securities 16,973,529 11,789.599 1,945,123 14,192.727 Call Loans 53,767 17.31 554,816 1.1 Collateral Deposits on Securities Borrowed 1,513,559 317.2 819. Bills Purchased 11,953 1.1 28,4.1 Due from Banks 3,33 1.52 8,775. Liabilities 55,721, 46,637.83 5,66,452 16,591.295 Deposits 41,378,32 11,44.27 3,238,941 6,81.29 Negotiable Certificates of Deposit 5,191,973 1,671.32 582,554 23.39 Call Money 2,979,639 241.8 - - - Payables under Repurchase Agreements 348,713 33.9 45. Collateral Deposits on Securities Loaned 548,6 121.22 14,914 1.9 Bills Sold 2,612,194 366.14 328,59 56.17 Commercial Paper 233,93 82.35 - - - Borrowed Money 583,971 12,58 2.142 53,3 1,922 3.616 International Sector Assets 7,232,69 29,689 2.899 65,563 1,928 2.933 Loans and Bills Discounted 2,582,86 63,82 2.442 33,4 941 2.81 Securities 2,522,144 9,479 3.587 21,252 872 4.95 Call Loans 242,865 3,345 1.377 - - - Due from Banks 1,22,148 16,644 1.384 1,27 19 1.63 Liabilities 7,358,639 137,667 1.87 62,875 955 1.514 Deposits 4,993,858 45,257.96 13,767 271 1.964 Negotiable Certificates of Deposit 2,666 425 2.61 - - - Call Money 77,25 877 1.136 28,383 39 1.372 Payables under Repurchase Agreements 28,784 2,24.969 - - - Collateral Deposits on Securities Loaned 41,171 6,495 1.583 - - - Bills Sold 9,316 342 3.678 - - - Borrowed Money 1,27,755 54,83 4.537 4,885 215 4.45 UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 7
Assets & Liabilities (combined for subsidiary banks, UFJSP, UFJEI and UFJTE) Mar. 31, 24 Mar. 31, 23 Combined for 2 Banks, UFJSP, UFJEI & UFJTE UFJ Bank, UFJSP & UFJEI UFJ Trust & UFJTE Combined for 2 Banks, UFJSP & UFJEI UFJ Bank, UFJSP & UFJEI UFJ Trust Change Assets 8,483.6 71,843.3 8,64.2 78,74.6 69,927.2 8,147.3 2,49. Banking account 78,94.5 71,843.3 6,251.2 75,92.7 69,927.2 5,993.5 2,173.7 Trust account (1) 2,389. - 2,389. 2,153.8-2,153.8 235.2 Loans (2) 41,985.6 37,963.4 4,22.2 43,985. 39,98.7 4,4.3 (1,999.4) Loans to small & mid. sized companies, etc. (3) 27,47.9 25,151. 1,896.8 28,951. 26,833.6 2,117.3 (1,93.) Housing loans 7,488.4 7,367. 121.3 6,5.6 6,359.2 141.4 987.7 Securiities (4) 22,86.9 2,739.9 2,121. 18,99.9 17,248.4 1,742.4 3,87. JGB 13,334.6 12,1.8 1,332.7 1,34.1 9,133.5 1,17.5 3,3.4 Stocks 3,927.4 3,339.9 587.4 3,819.8 3,38.6 439.2 17.5 Liabilities 77,834.2 69,671.1 8,163. 75,384.1 67,48.3 7,93.7 2,45.1 Banking account 75,445.1 69,671.1 5,773.9 73,23.2 67,48.3 5,749.9 2,214.8 Trust account (5) 2,389. - 2,389. 2,153.8-2,153.8 235.2 Deposits, Trust principal (2) 54,196.1 48,813.9 5,382.2 52,364.5 47,39.3 5,325.1 1,831.6 Domestic corporate deposits 18,211.7 17,338.4 873.2 17,68.2 16,832.9 847.2 531.5 Domestic retail deposits 26,754.3 24,597.3 2,156.9 26,582.4 24,254.7 2,327.6 171.9 Trust principal 2,27.1-2,27.1 2,6.1-2,6.1 264. (1)Principal indemnified trust account;(2)banking account+principal indemnified jointly operated designated money trust account and loan trust account; (3)banking account + all trust account; (4)banking account only;(5)principal indemnified jointly operated designated money trust account and loan trust accout UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 8
Non-Interest Revenue and Expenses (UFJ Bank, UFJSP and UFJEI) (non-consolidated) Investment banking business and client derivatives boosted noninterest revenue ( Yen 17.3 bil. increase from FY2) (Domestic & International Business Line) Fees & Commissions 171.9 Fees on Money Transfer 76. Money Transfer Fees Received 94.8 Money Transfer Fees Paid 18.8 Other Fees & Commissions 95.9 FY2 124.5 73.4 92.3 18.8 51. Change 47.4 2.5 2.5. 44.8 (Yen bil) 1 st Half of 79.9 37.7 47. (9.2) 42.1 Investment banking fees increased: + Yen 39.6 bil. - Bonds related: + Yen 21.9 bil. - Syndicated loans: + Yen 6.5 bil. - Securitization: +5.3 bil. Sales of retail investment products increased - Sales fees on investment trusts, insurance products: +Yen 7. bil. Others Received 174. 121.8 52.2 8.1 Others Paid 78.1 7.7 7.3 (38.) Sales of derivatives for customers : + Yen 26.6 bil. Trading Gains Gains on Trading Securities and Derivatives Gains on Trading Sec. & Derivatives for Hedging Gains on Derivatives other than Trading Sec. 143.6 3.8.9 137.5 97.3 8.1 (.4) 88.3 46.2 (4.3) 1.4 49.2 79.6.7.8 77.4 Shifts from Fees on Foreign Exchange Acct to Gains on Derivatives other than trading sec. Acct, resulting from foreign exchange fluctuation Fees on Foreign Exchanges: + Yen 5.1bil. Other Trading Gains 1.2 1.2..5 Other Operating Income 141.3 217.7 (76.3) 114.7 Fees on Foreign Exchange Profits and Losses on Bonds Income from Derivatives Expense on Bonds Others 9. 113.2 14. (1.1) 6. 33. 178.3 7.4 (1.3).1 (23.9) (65.1) 6.5.1 5.8 (5.7) 18. 9.8 (.5) 3.2 Bond Related Gains Increased Gains & Losses on Sales : + Yen 115. bil. Gains & Losses on Redemptions : - Yen 1.7 bil. <Reference> Unrealized Profit for JGBs as of Mar. 4 : - Yen 34.8 bil. UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 9
Trust Related Income (UFJ Trust, non-consolidated) Promote trust services to group-wide customer base effectively (Financial Results) FY2 Trust Fees 66.6 77.4 Trust Related 31.9 37.7 Loan Trusts etc. 34.6 39.7 Fees and Commissions 48.4 42.7 Trading Revenue 3..5 Other Operating Income 7.1 19.6 (Trust Related Income Breakdown by Business) Others (Fees and Commissions etc.) Change (1.8) (5.8) (5.) 5.7 2.4 (12.5) FY2 Change Trust Fees 31.9 37.7 (5.8) 49.4 42.2 Trust Related Income 81.3 8. Corporate Agency 29.3 28.6 Real Estate 12.1 8.2 Asset Securitization 5.4 3.8 Pensions / Securities Related 24.1 31.9 Private Client Service 1.4 7.4 7.1 1.3.7 3.9 1.7 (7.9) 2.9 1 st half of 33.5 13.2 2.3 23.7.9 4.5 1 st half of 13.2 22.2 35.4 14.4 5. 2.1 9.2 4.8 Corporate Agency No. 1 on # of Corporate Agency trusted 2,41(4/3) - Takeover from others: 43 companies () - Contracts with public companies: 855 (4/3) Real Estate Profit increased drastically.large transactions increased. # of securitization tripled from the year before Asset Securitization The balance of Asset securitization steadily increased. New products also contributed to the profit Pensions/Securities Related Return of substitutional portion of Public Pension Fund decreased balance of pension asset Passive oriented funds increased Private Client Service Good sales in Stock Inv. Trusts and Insurance Growing needs on testamentary trust and settlement business for inheritance UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 1
G&A Expenses - Other Income & Expenses Healthy reduction in expenses Gains and losses on stocks significantly improved General and Administrative Expenses Personnel Expenses Non-personnel Expenses Tax Expenses Other Income & Expenses ('rinji shu-shi') Gains/Losses on Stocks & Other Equity Securities Gains on Sales Losses on Sales Revaluation Losses Credit Costs(Includes Trust Accounts) Net Transfer to Reserve for Investment Losses Employee Retirement Benefits Equity Derivative gain/losses Special Business Tax Imposed on Banks (Tokyo, Osaka) Others Extraordinary Gains/Losses Collection of Written-off Claims Transfer from Reserve for Loan Losses (only UFJ Trust) Gains/Losses on Sales of Premises and Equipment Gains/Losses on Establishment of Retirement Benefit Trust Amortization of Unrecognized Pension Obligation Tax Refund from the Tokyo Metropolitan Government Others (combined for subsidiary banks, UFJSP and UFJEI) 567.7 21.2 329. 28.4 (879.4) 327.5 397.7 (57.7) (12.4) (1,48.9) (51.9) (44.3) (37.) (6.) (18.8) 9.5 53.7 25.6 (19.3) 4.8 (26.3) 25.6 (9.6) FY2 592.5 223.1 339.9 29.4 (1,226.6) (617.7) 62.6 (488.8) (191.5) (588.9).7 (25.9) 1.3 (11.9) 6.8 61.4 78.4 - (24.2) 17.4 (29.9) - 19.7 Change (24.8) (12.9) (1.8) (1.) 347.1 945.2 335.1 431. 179. (459.9) (52.6) (18.4) (47.4) 5.9 (25.7) 29.1 (24.6) 25.6 23.4 3.6 25.6 (29.4) (388.9) (.5) Expenses Decreased Yen 24.8 bil. due to reduction of employees and number of branches Gains/losses on stock Gains/losses on stock: + Yen 327.5 bil. <Reference> Stocks sold in : Yen 897. bil. Unrealized gain as of Mar.31, 4 : + Yen 346.9 bil. Other Income & Expenses Reserve for possible losses on investment: -Yen 51.9 bil. (mainly investment on financial subsidiary) Expenses on equity derivative for hedging purposes: - Yen 37. bil. Amortization of actuarial calculation difference: -Yen 44.3 bil. Extraordinary Gains / Losses Collection of Written-off Claims Yen 53.7 bil. - Enforcing collections Gains/Losses on Establishment of Retirement Benefit Trust: Yen 4.8 bil. Others : Losses on the Arbitration in Land Trust Project: Yen 9. bil. FY2: Transfer from reserve for possible losses on support of specific borrowers: Yen 1.3 bil. UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 11 4.9 1 st half of 285.2 17.5 163.3 14.3 (452.2) 1.8 45.2 (33.5) (9.9) (16.8) (26.) (6.2) (15.6) 62.7 16.1 4.1 (11.) 4.8 (13.1) 25.6.2
Consolidated Financial Results Strengthen group profitability through comprehensive financial strategy - Consolidated gross operating profits exceeded non-consolidated by Yen 262.8 bil. Gross Operating Profit Net Interest Income Trust Fees (before write-off) Fees and Commissions Trading Revenue Other Operating Income General & Admn. Expenses Net Transfer to General Reserve Gains/Losses on Stocks Credit Costs Minority Interests Ordinary Profit Extraordinary Gains and Losses Minority Interests in Net Income Net Income UFJ Holding Consolidated 1,625.2 825. 66.3 387.7 188. 158. (773.) (28.) 239.1 (1,151.2) 7.8 (397.6) 65.9 2. (42.8) Subsidiary Banks Combined* 1,362.3 78.2 66.6 22.4 146.6 148.4 (567.7) (342.3) 327.5 (1,48.9) - (427.2) 9.5 - (375.5) Difference 262.8 44.7 (.2) 167.3 41.3 9.6 (25.3) 62.3 (88.3) (12.3) 7.8 29.5 (24.6) 2. (27.2) <Net Interest Income> Senshu Bank 28.9 UFJ Card 23.4 <Fees and Commissions> UFJ Credit 53.2 UFJ Tsubasa Sec. 47.8 UFJ Card 36.5 UFJ Institute 11.6 Senshu Bank 6.1 UFJ Business Finance 4. <Trading Revenue>* UFJ Tsubasa Sec. 33.7 UFJ International 5.3 <Minority Interest> UFJ Central Leasing** 2.6 Dah Sing Financial HD 2.1 Chukyo Bank 1.1 <Credit-related Expenses> UFJ Credit 44.9 Senshu Bank 8.1 Major Factors (Consolidated figure of each subsidiary) Credit-related Expenses (1,376.) (1,311.5) (64.4) * Before adjustment for consolidation ** UFJ Central Leasing became affiliates company under the equity method in first half of FY23 Consolidated Business Profits 921.5 794.6 126.9 * UFJ Bank+UFJ Trust+UFJSP+UFJEI+UFJTE UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 12
Actions toward Improvement of Financial Positions UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 13
Credit Related Expenses (combined for subsidiary banks and UFJSP) Yen 1,311.5 bil. of credit related expenses in - 811.5 bil more than plan mainly due to additional reserves for Large borrowers Breakdown of credit related expenses Net transfer to general reserve 342.3 Loans written-off 39.9 Net transfer to specific reserve 522.4 Losses on sales of loans to CCPC. Net transfer to reserve for contingent liabilities related to loans sold Net losses on loans sold 61.9 Losses on supporting specific borrowers 52.9 Transfer to reserve for possible losses on support of specific borrowers Transfer to reserve for possible losses to refinancing countries 5. - (1.4) Credit costs on banking account 1,31.9 Credit costs on trust account 16.9 Collection on written-off claims (53.7) Transfer from loan loss reserve (Extraordinary gains on UFJ Trust) Net transfer from reserve for contingent liabilities related to loans sold Credit Costs (25.6) (.2) Yen 1,311.5 bil UFJ Trust booked the transfer from loan loss reserve as extraordinary gain because there was net reversal in reserves. Business deterioration of borrowers 1,15.4 Large borrowers * 839.7 Others 31.7 Additional Reserves Decrease in collateral value/ Losses on loans securitized/sold Reserve transferred back due to newly obtained collateral or collection Collection of written-off claims Total Result 238.6-124. 19. (147.7) (53.8) Estimation as of Nov.3 45. (14.) 1,311.5 5. * Newly added reserve for DCF-applied borrowers etc. UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 14
Loans under Financial Reconstruction Law (combined for subsidiary banks and UFJSP) (Figures (Combined are for total subsidiary of banking banks account and UFJSP, and non-consolidated) trust account) (Yen mil.) Mar. 31, 24 Sept. 3, 23 Change Mar. 31, 23 Change (a) (b) (a) - (b) (c) (a) - (c) Bankrupt and Quasi-bankrupt 34,438 373,299 (68,861) 419,532 (115,94) Doubtful 1,483,656 1,218,9 265,565 1,28,19 275,637 Sub-standard 2,161,273 2,116,548 44,725 2,535,984 (374,711) Total Problem Loans 3,949,368 3,77,939 241,429 4,163,536 (214,168) Claims which are not classified as Sub-standard claims on Sub-standard borrowers Claims to other special mention borrowers 57,34 792,6 (221,72) 1,119,878 (549,538) 2,85,91 3,842,53 (991,143) 4,227,266 (1,376,355) Normal 42,463,357 41,838,192 625,164 43,834,321 (1,37,964) Grand Total 46,412,725 45,546,132 866,593 47,997,858 (1,585,132) Amount of Partial Write-off 1,328,567 1,534,868 (26,3) 1,244,483 84,84 UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 15
Loan Portfolio (combined for subsidiary banks and UFJSP) Share of loans for Other special mention borrowers or below decreased from 24.7% to 15.9% in two years 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Bankrupt & Quasi-bankrupt 1.2%.9%.7% 5.6% Doubtful 7.6% 2.5% 5.9% 3.2% 8.1% Sub-standard 8.8% 6.1% 8.8% Other special mention 76.3% Normal 8.2% 84.1% Mar.2 Mar.3 Mar.4 UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 16
Portfolio by Internal Rating (combined for subsidiary banks and UFJSP) Mar. 31, 24 Sept. 3, 23 Mar. 31, 23 SME* SME* SME* Internal Rating 1-3 12,915.1 5,391.6 11,185.1 5,65.1 1,759.8 5,154.7 Internal Rating 4, 5 8,57.4 4,318.8 8,2.2 4,27.8 8,453.8 3,987.3 Internal Rating 6 3,338.9 1,94.3 2,952.1 2,113.8 3,492.6 1,928.9 Internal Rating 7 2,617.3 1,343. 3,396.5 1,845.3 3,747.4 1,868. Individuals, No Rating, etc. 12,113.1 625. 11,668. 56.8 12,33.3 825.1 Other Special Mention 2,85.9 1,619.5 3,842. 1,77.2 4,227.2 2,78.1 Sub-standard 2,731.6 78.1 2,98.6 1,221.6 3,655.8 1,378.8 Doubtful 1,483.6 679.8 1,218. 698.3 1,28. 719.5 Bankrupt/Quasi-bankrupt 34.4 22.2 373.3 234. 419.5 157.2 Total 46,412.7 16,828.6 45,546.1 17,717.3 47,997.8 18,96.9 * SME = Small and Medium-sized Enterprise SME in Retail Industry = Employee: Less than 5, Capital stock: Less than Yen 5 mil. SME in Wholesale Industry = Employee: Less than 1, Capital stock: Less than Yen 1 mil. SME in Services Industry = Employee: Less than 1, Capital stock: Less than Yen 5 mil. SME in Other Industries = Employee: Less than 3, Capital stock: Less than Yen 3 mil. UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 17
Coverage Ratio (combined for subsidiary banks and UFJSP) Mar. 31, 24 Sept. 3, 23 Mar. 31, 23 2 Banks +UFJSP UFJ Bank +UFJSP UFJ Trust 2 Banks +UFJSP UFJ Bank +UFJSP UFJ Trust 2 Banks +UFJSP UFJ Bank +UFJSP UFJ Trust Bankrupt and Quasi-bankrupt Reserve ratio for Uncovered Claims Doubtful Coverage with Collateral & Guarantees Coverage with Reserves Reserve ratio for Uncovered Claims 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 89.58% 88.73% 94.34% 73.88% 73.6% 81.8% 85.85% 85.95% 83.52% 44.8% 39.54% 69.27% 43.7% 42.59% 56.63% 46.14% 45.77% 55.28% 45.5% 49.18% 25.6% 3.81% 31.1% 25.17% 39.71% 4.18% 28.24% 81.38% 81.36% 81.57% 54.11% 54.1% 57.92% 73.73% 74.9% 63.15% DCF-applied Borrowers ** - 92.25% - - 38.39% - - 98.1% - Other Borrowers - 79.62% - - 64.19% - - 67.9% - Sub-standard *** Coverage with Collateral & Guarantees Coverage with Reserves Reserve ratio for Uncovered Claims 62.82% 65.7% 35.44% 52.93% 5.78% 66.1% 52.62% 5.31% 69.23% 27.75% 28.34% 2.58% 32.23% 3.59% 42.23% 32.43% 3.36% 47.31% 35.7% 36.72% 14.85% 2.7% 2.18% 23.86% 2.19% 19.95% 21.92% 48.54% 51.25% 18.71% 3.55% 29.8% 41.31% 29.89% 28.65% 41.6% DCF-applied Borrowers ** 56.36% 59.9% 2.6% 36.38% 34.65% 46.46% 35.46% 34.2% 46.72% Special mention borrowers excluding Sub-standard borrowers 7.62% 8.3% 4.57% 5.5% 5.71% 3.83% 4.53% 4.67% 3.39% DCF-applied Borrowers ** 6.12% 7.2% 5.4% 1.55% 1.55% - - - - Normal borrowers.26%.26%.21%.18%.17%.36%.18%.18%.14% * Figures are total of banking account and trust account ** In Mar.4, DCF method was applied to 7 borrowers / Yen 174 bil. (9 Borrowers / Yen 317.6 bil. in Sept.3) for Doubtful claims, 25 borrowers / Yen 1,85.7 bil. (27 Borrowers / Yen 1,843.7 bil. in Sept.3) for Sub-standard claims, and 4 borrowers / Yen 181. bil. (2 Borrowers / Yen 42.6 bil. in Sept.3) for Special-mention borrowers. *** "Sub-standard" here includes ALL claims to sub-standard borrowers. Sub-standard borrowers may have loan outstanding not classified as problem loans. UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 18
DCF Method Principle Procedure Example Detailed analysis of a restructuring plan Conservative estimation of cash flows Uncertainty on future prospect being reflected in calculation (1) Estimate future cash flows for repayment and the residual balance after 5 years based on a restructuring plan and business prospects. Risk of reduced cash flows due to sluggish business is also reflected. (2) Deduct risks calculated upon historical loss ratio from future cash flows and the expected balance calculated in (1). (Loss ratio is accumulated every year and differs according to the borrower s classification.) (3) Discount future cash flows with initial contractual lending rate. (4) Reserve difference between present value calculated in (3) and the current balance. Current Balance 1,5 Annual Installment 1 Current Lending Rate 1% / year Initial Lending Rate 5% / year Year 1 Year 2 Year 3 Year 4 Year 5 Balance Installment (a) 1 1 1 1 1 1, Interest payment (b) 15 14 13 12 11 - Reflecting uncertainty (c) 95% 9% 85% 8% 75% 6% Risk-adjusted cash flow (d) ((a)+(b)) (c) 19.25 12.6 96.5 89.6 83.25 6. 2 3 4 5 5 Discount rate (Initial lending rate) (e) 1.5 (1.5) (1.5) (1.5) (1.5) (1.5) Present value (d)/(e) 14.5 93.6 82.97 73.71 65.23 47.12 * The historical loss ratio used in this example is just for explanation and differs from actual ratio. Total present value (Repayment + Balance) (f) Required reserve (Principal-(f)) Reserve ratio 889.14 61.86 4.72% UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 19
Final Disposal (1) (Combined for subsidiary banks and UFJSP) (Non-consolidated) Doubtful loans or below increased by Yen 16.5 bil. from Mar.3 due to downgrade of Large borrowers in spite of Yen 1.9 tril. outflow 1st half of Mar. 31, 23 Yen 1,627.5 bil. + Inflow - Outflow = Yen 831.4 bil. Yen 867.6 bil. Sept. 3, 23 Yen 1,591.3 bil. 2nd half of Liquidation 2.8 Write-offs 283.7 Reorganization 31.3 Collection/Repayment etc. 31. Sell-offs 134.8 Upgrading 86.7 Sept. 3, 23 Yen 1,591.3 bil. + Inflow - Outflow = Yen 1,233. bil. Yen 1,36.3 bil. Mar. 31, 24 Yen 1,788. bil. * Including loans newly downgraded in a half-year period and off-balanced within the same period. Liquidation 9.3 Write-offs 142.5 Reorganization 73.4 Collection/Repayment etc. 34.4 Sell-offs 136.8 Upgrading 333.5 UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 2
Final Disposal (2) (combined for subsidiary banks and UFJSP) 8% off the balance sheet of doubtful loans or below downgraded by 1 st half of Classified before 1st half of FY Required to be off-balanced by Mar. 3 1,968. Past Balance Mar. 4 (Second line: % off-balanced ) 99.8 98.3% * Classified in 2nd half of FY Mar. 4 556.5 Past 24.5 96.9% Classified in 1st half of FY1 Mar. 5 534.5 4.2 94.6% Classified in 2nd half of FY1 Mar. 5 2,174.3 152.3 94.5% Classified in 1st half of FY2 Mar. 6 253.4 63.1 8.4% Classified in 2nd half of FY2 Mar. 6 475.8 98.4 81.6% Classified in 1st half of Mar. 7 73.3 178. 78.5% Classified in 2nd half of Mar. 7 *Excluding loans under the process of measures to remove 1,131.5 loans from balance sheet UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 21
Large-scale Financial Supports to Troubled Borrowers since FY1 Misawa Homes (Mar. 22, Feb.24) Debt Forgiveness of Yen 35 bil. (Mar.2) Yen 35 bil. Loans to a wholly-owned subsidiary of CITIGroup Principal Investments Japan Limited to subscribe Preferred Stock issued by Misawa Homes (Mar.2) Subscription of Yen 1 bil. Preferred Stock (Feb.4) Daikyo (Sept. 22) Debt/Equity swap of Yen 5.1 bil. Debt Forgiveness of Yen 342.3 bil. Towa Real Estate Development (Mar. 23) Aplus (Mar./Aug. 22) Debt Forgiveness of Yen 1 bil. (Mar.) Subscription of Yen 3 bil. Preferred Stock (Aug.) Debt/Equity swap of Yen 26.2 bil. Debt Forgiveness of Yen 165.7 bil. Daiei (Aug. 22) 1 for 1 reverse stock split of Preferred Shares totaling Yen 6 bil. Debt/Equity swap of Yen115 bil. Debt Forgiveness of Yen 85 bil. Tomen (Mar. 23) Debt Forgiveness of Yen 11 bil. Subscription of Yen 3 bil. Preferred Stock UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 22
Current condition of Large Borrowers - Daiei Achieved planned profits on both consolidated and non-consolidated bases, debt reduction as scheduled Non-consolidated Feb.3 Results Feb.4 Results Difference from Plan Feb.5 Plans Total Revenue 1,557.5 1,43.2 +.2 1,375. Operating Profit 15.5 13.7 +.2 18. Ordinary Profit 14.5 16.6 +.6 2. Net Profit 1. 14.5 +8.5 4. Consolidated Feb.3 Results Feb.4 Results Difference from Plan Feb.5 Plans Ordinary Profit 12.8 31.5 +1.5 4. Net Profit 135.4 18.1 +.1 41. Interest-bearing Debt (Excluding OMC etc.) 1,25.3 1,75.1 (14.9) 915. UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 23
Current condition of Large Borrowers - Daikyo Achieved planned profits on both consolidated and non-consolidated bases, debt reduction as scheduled Non-consolidated Mar.3 Results Mar.4 Results Difference from Plan Mar.5 Plans Mar.7 Plans Revenue 318. 319.8 +8.8 313. 35. Operating Profit 16.7 15.5 (1.2) 21. 23. Ordinary Profit 8.3 1.3 +.2 13. 17. Interest-bearing Debt 465.5 437.8 (2.2) 42. 36. Consolidated Mar.3 Results Mar.4 Results Difference from Plan Mar.5 Plans Mar.7 Plans Revenue 336.6 34.5 +12.5 41. 335. Operating Profit 18.9 18. - - 26.5 Ordinary Profit 1. 12.7 +.3 18. 18. Interest-bearing Debt 489. 485.9-43. * 37. * * Figures of the 2nd Management Plan announced in May '2. Change of consolidated companies in is not reflected. UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 24
Current condition of Large Borrowers - Misawa Homes Though interest-bearing debt reduced as scheduled, profit less than planned as cost cut is not enough to cover sluggish sales Consolidated Mar.3 Results Mar.4 Results Difference from Plan Mar.5 Plans Mar.6 Plans Revenue 412.9 43.5 (11.5) 45. 46. Ordinary Profit 23.8 2.7 (4.3) 3. 35. Interest-bearing Debt 495.1 296.3 (3.7) 25. 2. (Latest Development) Announced the Mid-term Management Plan (October 3, 23) Signed the basic agreement on the sale of Kachidoki Area development project in Tokyo. (January 23, 24) - Sales completed in Mar. 4 Issued preferred stock of Yen 1 bil. in Feb. 4 UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 25
Current condition of Large Borrowers - Towa Real Estate Development Consolidated ordinary profit less than planned but increased 15% y-o-y Interest-bearing debt reduced as scheduled Non-consolidated Mar.3 Results Mar.4 Results Difference from Plan Mar.5 Plans Mar.8 Plans Revenue 147.4 158.4 +17.4 138. 141. Operating Profit 14.8 11.8 (1.2) - 13. Ordinary Profit 1.8 11.2 +.2 11. 11. Interest-bearing Debt 27.3 179.6 (1.4) - 11. Consolidated Mar.3 Results Mar.4 Results Difference from Plan Mar.5 Plans Mar.8 Plans Revenue 185.1 24.5 +8.5 19. 196. Operating Profit 18.1 16.4 (3.6) - 2. Ordinary Profit 12. 13.9 (1.1) 15. 15. Interest-bearing Debt 315.8 283. (4.) - 25. UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 26
Current condition of Large Borrowers - Aplus Achieved planned profits on a non-consolidated basis, Net consolidated profit doubled Non-consolidated Mar.3 Results Mar.4 Results Difference from Plan * Mar.5 Plans * Mar.7 Plans * Revenue 13.6 16.6 + 2.5 16.2 113.4 Ordinary Profit 2.1 3. + 1.6 2.1 14. Net Profit.4.7 +.1 1.1 7.9 Equity Capital 45.4 49.5-48.2 58.5 Equity Capital Ratio 2.4% 2.7% - 2.7% 3.3% Interest-bearing Debt 78. 645.4-79. 77. Consolidated Mar.3 Results Mar.4 Results Difference from Plan * Mar.5 Plans * Revenue 16.2 17. (.2) 19.8 Ordinary Profit 2.4 3.9 + 1.8 2.9 Net Profit.7 1.4 +.3 1.6 * Figures of the 4th Medium-term Management Plan announced in Mar. '2. UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 27
Current condition of Large Borrowers - Tomen Achieved its plan for with steady improvement of financial status. - Net interest-bearing debt reduced 2 year earlier than planned Consolidated Mar.3 Results Mar.4 Results Difference from Plan Mar.5 Plans Mar.6 Plans Operating Profit 25.7 28.2 +.7 32.8 33.3 Ordinary Profit 13.7 21.6 +1.6 23.5 25. Total Assets 971.7 769.1 - - 735. Net Interest-bearing Debt 565.9 46.3 (8.1) - 48.1 Equity Capital 13.9 29. - - 45. Net DER 4.8 14. - - 9.1 ROA -.4% - - 1.1% ROE - 17.5% - - 17.2% Equity Ratio 1.4% 3.8% - - 6.1% UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 28
Current condition of Large Borrowers - Nissho-Iwai Nichimen Holdings Achieved planned ordinary profit with steady reduction of interest-bearing debt - Net profit less than planned mainly due to accelerated reorganization of group companies Consolidated Mar.3 Results* Mar.4 Results Difference from Plan** Mar.5 Plans Mar.6 Plans Revenue 6,65. 5,861.7 +91.7 6,1. 6,26. Operating Profit 6. 59.9 (12.1) 11. 124. Ordinary Profit 27.5 48.4 +.4 85. 11. Extraordinay Gain/Loss (138.) (9.5) (3.5) (1.) (7.) Net Profit (122.4) (33.6) (4.6) 5. 7. Equity Capital 5.5 316.2 +86.2 28. 35. Interest-bearing Debt (Net) 2,89.5 1,557. (388.) 1,79. 1,75. Net DER 41.4 4.9 (3.6) 6.4 5. * Figures of Mar.3 are aggregated figures of Nichimen and Nissho-iwai ** Compared with the original 3-year Plan UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 29
UFJ Strategic Partner Problem loan balance decreased by half in a year Expects drastically reduced credit cost thanks to large provisions in Plan Business profit 1.8-1.5 Credit related expenses 79. 6. 1. Net profit (77.2) - (8.5) Reduction in problem loans 414.3 35. 165. Credit related expenses / Reduction in problem loans Result 19% 17% 6% Figures above includes loans under advisory contract with UFJ Bank. Plan FY4 Bankrupt and Quasi-bankrupt Coverage Ratio (Mar. 4 UFJSP Booking only) Coverage Ratio Coverage with Collateral & Guarantees Coverage with Reserves Reserve ratio for Uncovered Claims 1.% 99.2%.8% 1.% Doubtful 87.36% 3.76% 56.59% 81.74% Sub-standard * 51.92% 23.23% 28.69% 37.37% * 'Sub-standard' here includes ALL claims to sub-standard borrowers. Sub-standard borrowers may have loan outstanding not classified as problem loans. Mar. 3 Sep. 3 Mar. 4 Under advisory contract with UFJ BK Under advisory contract with UFJ BK Under advisory contract with UFJ BK Bankrupt and Quasi-bankrupt 142.2 7.1 12.6 59.4 73.6 47.6 Doubtful 477.6 347.9 35.6 239.7 167.5 139.2 Sub-standard 87.1 36.3 73. 35.2 51.6 28.9 Normal 92.4 84.9 76.6 69.9 9. 79.6 Total 799.5 539.3 576. 44.3 382.8 295.6 Amount of Partial Write-off 576.1 175.6 59.1 192.5 467.5 188.2 Figures above includes loans under the advisory contract with UFJ Bank. UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 3
Stock Portfolio (subsidiary banks, UFJEI, and UFJTE) 25% 2% 15% 1% Stock Portfolio by Industry (Mar. 31, 24) 11.7% 19.2% Breakdown on Shares sold in Stock repurchase 5.6% Block trade etc. 45.7% Bank of Japan Banks Shareholdings Purchase Corporation 8.3% 43.5% Market 5.% 5% %.%.1% Fishery, Agriculture & Forestry Mining Construction 3.9% 2.1% 1.5% Foods Textiles & Apparels Pulp & Paper.4% 4.2% 4.3% Chemicals Pharmaceutical Oil & Coal Products.3%.4% 1.1% 1.8%.2% Nonferrous Metals Rubber Products Glass & Ceramics Products Iron & Steel 1.1% 4.4% Metal Products Machinery Electric Appliances Transportation Equipments.5% 1.8% Precision Instruments Other Products Electric Power & Gas 4.3% 4.3%.2%.4%.5% Land Transportation Marine Transportation Air Transportation Warehousing & Harbor Transportation Services 2.4% 2.8% 3.8% Communication Wholesale Trade Retail Trade 1.3% Banks Securities Insurance Other Financing Business 3.8% 4.9% 2.4% Real Estate Services 1.6% UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 31
UFJ Equity Investments / UFJ Trust Equity UFJ Equity Investments UFJ Trust Equity Result * Plan FY4 Business Profit 13.6 (4.5) Profit on shares sold 53.1 Off-balance shest transactions (42.) Dividend 4.4 Administration expenses (Including Registration &license tax) (1.3) Others (.6) Other expenses (Interest paid, etc) (1.1). Income before tax 12.5 (4.5) Net profit 7.6 (4.5) * includes Mar. 31, 23 (The company was incorporated on the day.) Result * Plan FY4 Business Profit.1 (.3) Profit on shares sold.3 Off-balance shest transactions (.6) Dividend.7 Administration expenses (Including Registration &license tax) (UFJ Bank 1% Subsidiary) (.3) Mar. 3 Sept. 3 Mar. 4 Change from Mar.3 Book value 484.6 347. 329.4 (155.2) Market vakue 475.4 48.7 368.5 (16.9) Unrealized gain/loss (9.2) 61.7 39.1 48.3 For those unrealized gain/loss fixed through hedging transaction, the fixed gain/loss is reflected. Unrealized gain/loss is caluculated based on the average price in Mar. 4. Balance in Mar.4 includes the newly set Yen 68.6 bil of specified money trust from UFJ Bank and UFJEI Shares sold (Book value) (UFJ Trust Bank 1% Subsidiary) Hedge ratio 48% (Based on market value in Mar. 4) As of Incorporation Mar. 4 Yen 24.2 bil. Change Book value 56.6 138.5 81.9 Market vakue 55.2 143.2 88. Unrealized gain/loss (1.4) 4.6 6. For those unrealized gain/loss fixed through hedging transaction, the fixed gain/loss is reflected. Unrealized gain/loss is caluculated based on the average price in Mar. 4. After incorporation, shares with market value of Yen 86.5bil. was transferred from UFJ Trust. Others Other expenses (Interest paid, etc).. (.1) Income before tax. (.4) Net profit. (.4) * The company was incorporated on Nov.11, 23. Shares sold (Book value) Yen 11.1 bil. Hedge ratio 33% (Based on market value in Mar. 4) UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 32
Equity Capital UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 33
BIS Capital Ratio (International Standard) Mar. 31, 24 Sept. 3, 23 Mar. 31, 23 UFJ Holdings UFJ Bank UFJ Trust UFJ Holdings UFJ Bank UFJ Trust UFJ Holdings UFJ Bank UFJ Trust Total Capital 4,268.6 3,5.3 532.6 5,121. 4,521. 486.9 4,617.3 4,28.2 364.4 Tier 1 2,175.2 1,789. 361. 2,812.6 2,422.5 323.6 2,56.4 2,256.8 217.4 Capital stock 1,. 843.5 28.5 1,. 843.5 28.5 1,. 843.5 28.5 Capital surplus 1,233.7 86.1 57.6 1,233.7 86.1 57.6 1,233.7 845.5 138.3 Retained earnings (774.9) (537.) 32. (184.2) (22.7) 25.5 (367.6) (216.5) (83.9) Unrealized losses on AFS - - (8.3) - - (39.8) (64.7) - (116.8) Others 716.4 676.3 (.8) 763.1 795.5 (.3) 759.2 784.3 (.5) Tier 2 2,175.2 1,789. 175.9 2,387. 2,173.8 167.2 2,128.9 2,19.7 151.4 Excess of AFS revaluation after 55% discount 137.2 14.6-13. 122.9 - - 42. - Excess of land revaluation after 55% discount 85.4 76.6 8.7 9.3 81.4 8.8 92. 83.1 8.9 Subordinated loans (bonds) 1,671.8 1,586.2 116. 1,63.2 1,53.1 14. 1,457.7 1,371.1 86.6 General reserve for credit loan losses 577.3 523.1 51.1 563.4 59.1 54.4 579.1 523.3 55.9 Deductions 81.9 77.7 4.3 78.6 75.3 3.9 72.1 68.4 4.4 Risk-weighted Assets 46,185.9 41,849.9 4,138.2 45,74.6 4,733.6 4,353. 46,328.2 41,868.7 4,472.4 Capital Ratio (%) 9.24% 8.36% 12.87% 11.36% 11.9% 11.18% 9.96% 1.5% 8.14% Tier 1 Ratio (%) 4.7% 4.27% 8.72% 6.24% 5.94% 7.43% 5.52% 5.39% 4.86% While UFJ Trust (domestic standard:12.34%) adopts the domestic standard, the International standard is applied to the calculations of the figures given here. UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 34
Capital Amounts & Risk-weighted Assets Change of capital amounts Tier1 : Yen 2,175.2 bil. (- Yen 385.2 bil. from Mar. 3) Changes of Risk-weighted Assets by Business Line (Yen tril.) <Breakdown of changes> Posted Net Loss : -Yen 42.8 bil. Unrealized Losses on AFS disappeared : + Yen 64.7 bil. Tier2 : Yen 2,175.2 bil. (+ Yen 46.2 bil. from Mar. 3) <Breakdown of changes> Decreased Tier 1 depressed Tier 2 amount Subordinated loan /bond outstanding : + Yen 214. bil. - Issuance of subordinated bond Domestic market : Yen 8. bil. (Jun. 3) Overseas market : USD 1.25 bil. (Jul. 3), USD.6 bil. (Nov. 3) Risk-weighted assets Risk-weighted assets: Yen 46.1 tril. (- Yen.1 tril. from Mar. 3) <Breakdown of changes> Loans : - Yen 1.71 tril., Unlisted bonds (Privately placed Bonds, etc): +Yen.75 bil. Stocks with market value (AFS): - Yen.29 tril. Unlisted stocks: + Yen.44 tril. Retail SME Large-scale Corp. Problem Loans + Large borrowers Global Banking & Trading Others of UFJ Bank UFJ Trust Mar. 2 Mar. 3 Mar. 4 2 4 6 8 1 12 UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 35
Deferred Tax Assets Mar. 4 Sept. 3 Mar. 3 UFJHD (Consolidated) UFJ Bank (Non-consolidated) UFJ Trust (Non-consolidated) UFJHD (Consolidated) UFJ Bank (Non-consolidated) UFJ Trust (Non-consolidated) UFJHD (Consolidated) UFJ Bank (Non-consolidated) UFJ Trust (Non-consolidated) Subtotal 2,361.2 1,98.8 259.5 2,26.4 1,768.8 279.2 2,323.2 1,823.8 322.4 Reserve for credit losses 1,228.1 1,13.4 47.3 1,12.5 735.6 67.6 985.7 686.2 83.6 Loss carryforwards 82.5 576.6 159.6 843.8 644.1 134.5 912.3 728.2 119.7 Revaluation loss on securities 174. 125. 43.2 27.1 145.1 55.8 241.7 165.8 67.6 Reserve for Employee Retirement Benefits 3.3 23.5 1.4 28. 22.5.5 26.7 21.7. Net unrealized gain(loss) on available-for-sale securities, net of 4.3-4.2 16.8-16.9 51.4-47.3 taxes Stock of affiliated company acquired through corporate split - 149.1 - - 149.1 - - 146. - Others 13.9 92.9 3.6 98. 72.1 3.6 15.1 75.7 3.9 Valuation allowance (755.1) (623.6) (55.3) (562.3) (392.5) (56.3) (691.9) (461.1) (1.7) Total 1,66. 1,357.1 24.2 1,644.1 1,376.2 222.9 1,631.2 1,362.7 221.6 Deferred tax liabilities (21.2) (183.1) (8.5) (19.2) (16.3) (8.4) (18.9) (15.9) (7.1) Net unrealized gain(loss) on available-for-sale securities, net of (125.4) (18.8) - (18.6) (89.1) - (42.5) (47.6) - taxes Gain from contribution of securities to employee retirement benefit trust and others (84.7) (74.3) (8.5) (81.5) (71.2) (8.4) (66.4) (58.2) (7.1) Net deferred tax assets 1,395.7 1,173.9 195.6 1,453.8 1,215.8 214.5 1,522.2 1,256.7 214.5 UFJ Holdings Financial Results for Fiscal Year ended Mar. 24 Data Book 36