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Washington, D.C. 20549
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
(Exact name of registrant as specified in its charter)
(Translation of registrant’s name into English)
JAPAN | 6029 | Not applicable | ||
(Jurisdiction of Incorporation or Organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
Minato-ku, Tokyo105-8574
Japan
+81-3-5232-8828
Limited
New York Representative Office
655 Third Avenue, 26th Floor
New York, NY10017-5617
1-212-309-1900
(Name, address, including zip code, and telephone number, including area code, of agent for service)
Theodore A. Paradise, Esq. | Izumi Akai, Esq. | |
Michael T. Dunn, Esq. | Sullivan & Cromwell LLP | |
Davis Polk & Wardwell LLP | Otemachi First Square | |
Izumi Garden Tower, 33rdFloor | 5-1, Otemachi 1-chome | |
6-1, Roppongi 1-Chome | Chiyoda-ku, Tokyo 100-0004 | |
Minato-ku, Tokyo106-6033 | Japan | |
Japan | +81-3-3213-6140 | |
+81-3-5561-4421 |
Exchange ActRule 13e-4(i) (Cross-Border Issuer Tender Offer) | o | |
Exchange ActRule 14d-1(d) (Cross-Border Third-Party Tender Offer) | o |
Title of Each Class | Proposed Maximum | Proposed Maximum | Amount Of | |||||||||||||
of Securities to be Registered | Amount to be Registered(1) | Offering Price Per Share | Aggregate Offering Price(2) | Registration Fee | ||||||||||||
Common stock of Chuo Mitsui Trust Holdings, Inc. | 396,848,191 | Not Applicable | $ | 1,407,297,987.82 | $ | 100,340.35 | ||||||||||
(1) | Based upon an estimate of the maximum number of shares of common stock of Chuo Mitsui Trust Holdings, Inc., or CMTH, issuable to shareholders of The Sumitomo Trust and Banking Company, Limited, or STB, resident in the United States upon the effectiveness of the statutory share exchange (kabushiki kokan) between CMTH and STB described herein. Such estimate is calculated by multiplying the exchange ratio of 1.49 CMTH shares for each share of STB common stock by the respective number of shares estimated to be held by U.S. holders of STB as of the date hereof. CMTH shares are not being registered for the purpose of sales outside the United States. | |
(2) | Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(f)(1) and Rule 457(c) under the Securities Act, based upon the total market value of the shares of STB common stock estimated to be held by U.S. holders as of the date hereof and to be exchanged in the share exchange, as determined by taking the average of the high and low prices of such shares as reported on the First Section of the Tokyo Stock Exchange on November 1, 2010, and converting them into U.S. dollars based on the exchange rate reported by the Bank of Japan on such date of ¥80.65 = $1.00. |
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This preliminary prospectus is not complete. CMTH may complete or amend this preliminary prospectus without notice. CMTH may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell, nor it is seeking an offer to buy, the shares in any jurisdiction where the offer or sale is not permitted. |
Shares of Common Stock of The Sumitomo Trust and Banking Company, Limited
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Appendix A | – | English Translation of the Share Exchange Agreement, the Management Integration Agreement and the Memorandum on Share Exchange Agreement | ||||||
Appendix B | – | English Translation of Fairness Opinion Delivered by UBS Securities Japan Ltd | ||||||
Appendix C | – | English Translation of Fairness Opinion Delivered by Daiwa Securities Capital Markets Co. Ltd. | ||||||
Appendix D | – | English language press release of CMTH, dated July 30, 2010, announcing its unaudited Japanese GAAP results for the three months ended June 30, 2010 | ||||||
Appendix E | – | Unaudited Reverse Reconciliation of Selected Financial Information of CMTH as of and for the year ended March 31, 2010 | ||||||
Appendix F | – | English language press release of STB, dated July 29, 2010, announcing its unaudited Japanese GAAP results for the three months ended June 30, 2010 | ||||||
Appendix G | – | Unaudited Reverse Reconciliation of Selected Financial Information of STB as of and for the year ended March 31, 2010 | ||||||
Appendix H | – | English Translation of Selected Articles of the Companies Act | ||||||
EX-3.1 | ||||||||
EX-3.2 | ||||||||
EX-3.3 | ||||||||
EX-4.1 | ||||||||
EX-5.1 | ||||||||
EX-8.1 | ||||||||
EX-21.1 | ||||||||
EX-23.1 | ||||||||
EX-23.2 | ||||||||
EX-99.1 | ||||||||
EX-99.2 | ||||||||
EX-99.4 | ||||||||
EX-99.5 |
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Nobuo Murakami Investor Relations Group, General Planning Department Chuo Mitsui Trust Holdings, Inc. 33-1, Shiba 3-chome Minato-ku, Tokyo105-8574 Japan Telephone: +81-3-5232-8828 | Hiroaki Hirose IR Office, Financial Management Department The Sumitomo Trust and Banking Company, Limited GranTokyo South Tower, 9-2, Marunouchi 1-chome Chiyoda-ku, Tokyo 100-6611 Japan Telephone: +81-3-3286-8354 |
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Q. | What is a class shareholders’ meeting for holders of STB common stock and why is it necessary in addition to the extraordinary general meeting of shareholders? |
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• | has voting rights at the extraordinary general meeting and the class shareholders’ meeting, and notifies STB prior to the extraordinary general meeting of shareholders and the class shareholders’ meeting of his or her intention to oppose the share exchange and votes against the approval of the share exchange agreement at the extraordinary general meeting of shareholders and the class shareholders’ meeting; or | |
• | does not have voting rights at the extraordinary general meeting of shareholders and the class shareholders’ meeting, including any shareholder whose shares constitute less than one unit; and |
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Nobuo Murakami Investor Relations Group, General Planning Department Chuo Mitsui Trust Holdings, Inc. 33-1, Shiba 3-chome Minato-ku, Tokyo105-8574 Japan Telephone: +81-3-5232-8828 | Hiroaki Hirose IR Office, Financial Management Department The Sumitomo Trust and Banking Company, Limited GranTokyo South Tower, 9-2, Marunouchi 1-chome Chiyoda-ku, Tokyo 100-6611 Japan Telephone: +81-3-3286-8354 |
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• | the inability to obtain necessary shareholder approval or to satisfy other conditions to the effectiveness of the share exchange, including the failure to obtain all necessary regulatory approvals; | |
• | the failure of the combined group to integrate the CMTH and STB businesses, product and service offerings and branch networks successfully, to realize the anticipated cost savings and synergies of the planned management and business integration, or to execute any of its business strategies after the completion of the share exchange; | |
• | the effects of financial instability or changes in general economic or industry conditions in Japan or other jurisdictions where the combined group will operate; and | |
• | changes in domestic and international laws, regulatory and accounting standards and fiscal policies, particularly those adversely affecting financial institutions. |
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• | CMTH, a licensed bank holding company; | |
• | CMTH’s two trust bank subsidiaries: The Chuo Mitsui Trust and Banking Company, Limited, or Chuo Mitsui, and Chuo Mitsui Asset Trust and Banking Company, Limited, or Chuo Mitsui Asset; | |
• | CMTH’s two asset management subsidiaries: Chuo Mitsui Asset Management Company, Limited and Chuo Mitsui Capital Company Limited; and | |
• | CMTH’s other consolidated subsidiaries. |
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• | CMTH’s shareholders having approved the share exchange agreement by the requisite vote at the extraordinary general meeting of its shareholders and at the class shareholders’ meeting of its common stock holders; | |
• | STB’s shareholders of common stock having approved the share exchange agreement by the requisite vote at the extraordinary general meeting of its shareholders and at the class shareholders’ meeting of its common stock holders; | |
• | STB’s shareholders of Class II Preferred Shares having approved the share exchange agreement by the requisite vote at the class shareholders’ meeting of such preferred stock holders; and |
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• | all regulatory approvals and consents or other requirements necessary to effect the share exchange having been obtained or satisfied. |
• | there is a material change in the conditions of assets or business operations or rights and obligations of CMTH or STB; | |
• | a situation arises or is discovered that materially obstructs the implementation of the share exchange; or | |
• | some other reason makes it difficult to achieve the purpose of the share exchange agreement. |
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STB | ||||||||||||
Common Stock | ||||||||||||
CMTH | Implied | |||||||||||
Common Stock | equivalent | |||||||||||
Historical | Historical | value | ||||||||||
November 5, 2009 | ¥ | 320 | ¥ | 480 | ¥ | 322 | ||||||
August 24, 2010 | 312 | 468 | 314 | |||||||||
November 8, 2010 | 285 | 429 | 288 |
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• | effectively integrating their respective organizations, key management, employees and other personnel, business cultures, procedures and operations; | |
• | identifying and streamlining redundant operations and assets, and combining their product and service offerings effectively and quickly; | |
• | identifying areas and activities that present substantial potential synergies as a result of the management and business integration, and allocating resources effectively to those and other promising areas and activities; | |
• | formulating effective business plans for the combined entity and achieving those goals; | |
• | coordinating and consolidating the functions of the domestic and overseas subsidiaries and branch offices of SMTH; | |
• | retaining existing customers and strategic partners of each group; | |
• | smoothly transitioning relevant operations and facilities to a common information technology system; and | |
• | developing and implementing uniform accounting policies, internal controls and procedures, disclosure controls and procedures and other governance policies and standards. |
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• | market prices for the shares of STB may decline to the extent that those prices reflected a market assumption that the share exchange will be completed and that the related benefits and synergies will be realized, or as a result of market perception that the share exchange was not completed due to an adverse change in STB’s businesses; and | |
• | the businesses of STB may be harmed and market prices for STB shares may decline to the extent that employees, clients, suppliers and others believe that STB cannot compete in the marketplace as effectively without completing the share exchange or otherwise remain uncertain about STB’s future prospects in the absence of the share exchange. |
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• | SMTH may have extended loans or given other credit to troubled banks and financial institutions; | |
• | SMTH may own shares of troubled banks and financial institutions; | |
• | troubled banks and financial institutions may discontinue or decrease their credit support to troubled borrowers to whom SMTH is also a lender, resulting in significant failures of those borrowersand/or a deterioration in the quality of SMTH’s loan portfolio; | |
• | SMTH may be required to provide assistance or support to troubled banks or financial institutions; | |
• | financial institutions may become majority owned, controlled or subsidized by the Japanese government, which could change SMTH’s competitive environment; | |
• | deposit insurance premiums that SMTH is obligated to pay to the Deposit Insurance Corporation of Japan, or the DIC, could rise if deposit insurance funds held by the DIC prove to be inadequate; and | |
• | repeated or large-scale bankruptcies, or government support or control of financial institutions, could generally undermine depositor confidence or adversely affect the overall banking environment. |
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• | increases in credit costs of SMTH or its trust bank subsidiaries; | |
• | declines in the value of securities held by SMTH or its trust bank subsidiaries; | |
• | a reduction in the amount of deferred tax assets; | |
• | changes in accounting rules; | |
• | any inability to refinance subordinated debt obligations or non-cumulative preferred securities issued through finance subsidiaries with comparable debt obligations or securities; | |
• | potential downgrades of borrowers under the internal ratings-based approach to credit risk, potential increases in estimates of the probability of borrower default and potential increases in operational risk; | |
• | the risk that the FSA may revoke the approval it has granted to CMTH, its trust bank subsidiaries and STB, which is required in order to adopt specific risk-weighting methods or operational risk-calculation methods, and its approval of market risk calculation methods for STB, provided for in the FSA bank capital adequacy guidelines; |
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• | any repurchase by CMTH or SMTH from The Resolution and Collection Corporation, or the RCC, a wholly owned subsidiary of the DIC, of shares of CMTH’s or SMTH’s common stock then held by RCC, as a means of repaying the public funds CMTH has received from the Japanese government; and | |
• | other potential adverse developments discussed in these risk factors. |
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• | banking groups, including Japan’s other major banking groups; | |
• | regional banking institutions; | |
• | Japan Post Bank Co., Ltd. and other government-controlled and government-affiliated entities; | |
• | major investment banks; | |
• | non-bank finance companies; | |
• | asset management companies; and | |
• | other financial service providers. |
• | SMTH may be unable to sell or cross-sell its products and services as effectively as anticipated, and new products and services introduced by SMTH may not gain acceptance among customers; |
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• | SMTH may be unable to integrate the personnel of the two groups, its plans to redeploy personnel may be unsuccessful and it may have difficulty retaining employees as a result of the integration; | |
• | SMTH may have difficulty coordinating the operations of its subsidiaries and affiliates, including those overseas, owing to legal restrictions; | |
• | SMTH may lose customers and business as it integrates and, in some cases, rebrands some of its subsidiaries’ or affiliates’ operations; | |
• | SMTH may lose clients or some of their business if clients choose to reallocate their business among trust banks owing to the transaction; | |
• | SMTH’s efforts to streamline operations may require more time than expected and may cause negative reactions from customers; | |
• | SMTH may have difficulty integrating the separate risk management structures of the CMTH and STB groups; | |
• | SMTH’s business alliances may not produce the expected benefits, or alliance partners may decide to terminate their arrangements with SMTH; and | |
• | SMTH may have difficulty integrating information systems. |
• | current restructuring plans of borrowers are not successfully implemented; | |
• | borrowers, particularly large borrowers, become insolvent or are forced to restructure, including as a result of a decision by SMTH or any other lender to withdraw support from any such borrower; | |
• | the Japanese government’s economic stimulus measures are ended before the economy fully recovers; | |
• | Japanese regulators introduce more stringent rules on borrower classification or establishing reserves, including as a result of their inspections of SMTH’s banking subsidiaries; | |
• | economic conditions in Japan, either generally or in specific industries in which large borrowers operate, again deteriorate or the global economic environment deteriorates generally; |
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• | real estate prices or stock prices in Japan decline; or | |
• | the rate of corporate or individual bankruptcies in Japan rises. |
• | economic conditions deteriorate, either generally or in particular industries in which large borrowers operate; | |
• | the standards for establishing allowances change, causing SMTH to change some of the evaluations, assumptions and estimates used in determining the allowances; or | |
• | the value of collateral declines. |
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• | its balance of deposits significantly decreases; | |
• | its financial condition worsens or its results of operations decline; | |
• | its credit ratings are downgraded; | |
• | it suffers damage to its reputation; or | |
• | there is a general downturn in economic conditions or a decline in liquidity in the Japanese financial markets. |
• | result in SMTH’s having to accept less favorable terms in transactions or preventing it from entering into some transactions; | |
• | cause existing agreements or transactions to be cancelled; | |
• | lead clients to withdraw some or all of their funds from its accounts; or | |
• | require that SMTH provide additional collateral in connection with derivatives transactions. |
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• | SMTH may be required to submit a business improvement plan to the FSA and be subject to an order by the FSA to implement such a plan; and |
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• | if SMTH’s financial results are substantially below the targets set in a business revitalization plan, then the FSA may take administrative action, including ordering SMTH’s senior management to resign. |
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At and for the year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen, unless otherwise indicated) | ||||||||||
Income statement data | ||||||||||
Interest income | ¥ | 203,705 | ¥ | 232,826 | ||||||
Interest expenses | 72,814 | 104,597 | ||||||||
Operating income | 295,150 | 220,006 | ||||||||
Operating expenses | 169,091 | 315,050 | ||||||||
Operating profit (loss) before tax | 125,550 | (93,906 | ) | |||||||
Profit (loss) for the year | 104,104 | (144,549 | ) | |||||||
Other comprehensive income (loss) for the year, net of tax | 97,800 | (134,949 | ) | |||||||
Total comprehensive income (loss) | 201,904 | (279,498 | ) | |||||||
Statement of financial position data | ||||||||||
Total assets | 15,318,579 | 15,864,991 | ||||||||
Investment securities | 2,503,695 | 3,319,574 | ||||||||
Loans and advances | 9,710,846 | 9,831,088 | ||||||||
Assets pledged as collateral | 1,721,353 | 1,290,516 | ||||||||
Total liabilities | 14,475,331 | 15,408,444 | ||||||||
Deposits | 9,064,722 | 9,421,346 | ||||||||
Cash collateral on securities lent and repurchase agreements | 1,702,698 | 1,255,648 | ||||||||
Due to investors of trust accounts | 1,568,220 | 1,891,361 | ||||||||
Borrowings | 1,228,505 | 1,704,097 | ||||||||
Total equity attributable to owner of the parent | 657,279 | 269,844 | ||||||||
Non-controlling interests | 185,969 | 186,703 | ||||||||
Total equity | 843,248 | 456,547 | ||||||||
Share capital | 261,609 | 161,434 | ||||||||
Weighted average number of common shares issued (thousands) | 1,490,668 | 1,107,405 | ||||||||
Weighted average number of common shares for diluted earnings per share (thousands) | 1,638,547 | 1,107,405 |
At and for the year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Yen, unless otherwise indicated) | ||||||||||
Per share data | ||||||||||
Basic earnings per share(1) | ¥ | 63.98 | ¥ | (138.18 | ) | |||||
Diluted earnings per share(2) | 59.65 | (138.18 | ) | |||||||
Book value per share(3) | 396.41 | 233.18 | ||||||||
Dividend per common share(4) | 8.0 | 5.0 | ||||||||
Dividend per common share ($)(5) | 0.08 | 0.05 | ||||||||
Number of common shares outstanding excluding treasury shares (thousands) | 1,658,060 | 1,157,227 |
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(1) | Basic earnings per share is calculated by dividing the profit attributable to shareholders of CMTH by the weighted average number of common shares outstanding during the year, excluding common shares purchased as treasury shares. | |
(2) | Diluted earnings per share is calculated adjusting the weighted average number of common shares outstanding to assume conversion of all dilutive potential common shares. For the year ended March 31, 2010, Class II preferred shares, which can be converted to common shares, were included in the calculation of diluted earnings per share as they had a dilutive effect before the date of mandatory conversion. For the year ended March 31, 2009, these preferred shares were excluded from the calculation of diluted earnings per share as the impact is anti-dilutive. | |
(3) | Book value per share is calculated by dividing the total equity attributable to owners of CMTH by the number of common shares, excluding common shares purchased as treasury shares. | |
(4) | Dividend per common share is dividend paid on CMTH common shares for the periods indicated. | |
(5) | Calculated using the yen-dollar exchange rate at the date following the date of the shareholders’ meeting at which the relevant dividend payment was approved. |
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As of and for the year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen, unless otherwise indicated) | ||||||||||
Income statement data | ||||||||||
Interest income | ¥ | 293,994 | ¥ | 391,948 | ||||||
Interest expenses | 107,893 | 195,744 | ||||||||
Fee and commission income | 147,929 | 146,360 | ||||||||
Fee and commission expenses | 26,321 | 26,579 | ||||||||
Other income | 118,575 | 166,653 | ||||||||
Total income | 398,555 | 385,533 | ||||||||
Operating expenses | 253,273 | 346,039 | ||||||||
Profit before income tax expenses | 146,718 | 41,779 | ||||||||
Net profit | 82,114 | 15,280 | ||||||||
Other comprehensive income (losses), net of tax | 124,533 | (187,041 | ) | |||||||
Total comprehensive income (losses) | 206,647 | (171,761 | ) | |||||||
Statement of financial position data | ||||||||||
Total assets | 23,442,169 | 24,960,729 | ||||||||
Derivative financial instruments | 3,130,994 | 4,027,339 | ||||||||
Investment securities | 3,949,512 | 4,790,073 | ||||||||
Loans and advances | 13,780,823 | 13,494,699 | ||||||||
Total liabilities | 22,000,701 | 23,719,524 | ||||||||
Deposits | 14,585,719 | 14,170,297 | ||||||||
Derivative financial instruments | 2,827,439 | 3,751,432 | ||||||||
Debt securities issued | 1,186,808 | 1,465,823 | ||||||||
Borrowed funds | 1,383,207 | 1,540,360 | ||||||||
Total equity attributable to equity holders of STB | 1,138,625 | 847,258 | ||||||||
Minority interest | 302,843 | 393,947 | ||||||||
Total equity | 1,441,468 | 1,241,205 | ||||||||
Share capital | 342,037 | 287,537 | ||||||||
Weighted-average number of common shares outstanding (thousands) | 1,674,588 | 1,674,616 |
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As of and for the year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Yen, unless otherwise indicated) | ||||||||||
Per share data | ||||||||||
Basic earnings per share(1) | ¥ | 41.2 | ¥ | 4.1 | ||||||
Diluted earnings per share(2) | 41.2 | 4.1 | ||||||||
Book value per share(3) | 679.9 | 505.9 | ||||||||
Dividend per common share(4) | 10.0 | 10.0 | ||||||||
Dividend per common share ($)(5) | 0.11 | 0.10 | ||||||||
Number of common shares (thousands) | 1,674,572 | 1,674,603 |
(1) | Basic earnings per share is calculated by dividing the profit attributable to shareholders of STB by the weighted-average number of common shares outstanding during the year, excluding common shares held as treasury shares. | |
(2) | Diluted earnings per share is calculated by dividing the profit attributable to shareholders of STB by the weighted-average number of common shares outstanding, adjusted to assume conversion of all dilutive potential common shares. There were no dilutive equity instruments outstanding for the years ended March 31, 2010 and 2009. | |
(3) | Book value per share is calculated by dividing the total equity attributable to equity holders of STB by the number of common shares outstanding, excluding common shares held as treasury shares. | |
(4) | Dividend per common share is dividend paid on STB common shares for the periods indicated. | |
(5) | Calculated using the yen-dollar exchange rate at the next day following the date of the shareholders’ meeting at which the relevant dividend payment was approved. |
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CONDENSED FINANCIAL INFORMATION
• | accompanying notes to the unaudited pro forma combined condensed financial information; | |
• | historical audited consolidated financial statements of STB for the fiscal year ended March 31, 2010, included in this prospectus; and | |
• | historical audited consolidated financial statements of CMTH for the fiscal year ended March 31, 2010, included in this prospectus. |
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CONDENSED STATEMENT OF FINANCIAL POSITION
AS OF MARCH 31, 2010
Historical | Historical | Pro Forma | Pro Forma | ||||||||||||||||||
STB | CMTH | Adjustments | Combined | ||||||||||||||||||
(Millions of yen) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and deposits with banks | ¥ | 1,027,819 | ¥ | 268,450 | ¥ | 35,396 | (a) | ¥ | 1,331,665 | ||||||||||||
Call loans | 112,455 | 10,875 | 380,000 | (a) | 438,330 | ||||||||||||||||
(65,000) | (c) | ||||||||||||||||||||
Cash collateral on securities borrowed | — | 1,521 | — | 1,521 | |||||||||||||||||
Financial assets held for trading | 551,166 | 12,007 | — | 563,173 | |||||||||||||||||
Derivative financial instruments | 3,130,994 | 203,406 | — | 3,334,400 | |||||||||||||||||
Financial assets designated at fair value through profit or loss | — | 124,408 | — | 124,408 | |||||||||||||||||
Investment securities | 3,949,512 | 4,233,017 | * | 683,835 | (a) | 8,866,202 | |||||||||||||||
(162) | (b) | ||||||||||||||||||||
Loans and advances | 13,780,823 | 9,710,846 | 65,858 | (b) | 23,542,729 | ||||||||||||||||
(14,798) | (c) | ||||||||||||||||||||
Investment in associates and joint ventures | 48,399 | 21,990 | (38,594) | (a) | 31,795 | ||||||||||||||||
Property and equipment | 151,081 | 141,707 | 1,460 | (a) | 254,566 | ||||||||||||||||
(39,682) | (b) | ||||||||||||||||||||
Investment property | 66,028 | — | — | 66,028 | |||||||||||||||||
Intangible assets | 158,329 | 68,464 | 24,617 | (a) | 332,216 | ||||||||||||||||
5,407 | (b) | ||||||||||||||||||||
118,736 | (e) | ||||||||||||||||||||
(43,337) | (f) | ||||||||||||||||||||
Deferred tax assets | 80,548 | 186,178 | 279 | (a) | 254,284 | ||||||||||||||||
(14,672) | (d) | ||||||||||||||||||||
1,951 | (g) | ||||||||||||||||||||
Other assets | 385,015 | 343,679 | 15,810 | (a) | 710,827 | ||||||||||||||||
(24,520) | (b) | ||||||||||||||||||||
(9,157) | (c) | ||||||||||||||||||||
Total assets | ¥ | 23,442,169 | ¥ | 15,326,548 | * | ¥ | 1,083,427 | ¥ | 39,852,144 | ||||||||||||
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CONDENSED STATEMENT OF FINANCIAL POSITION
AS OF MARCH 31, 2010
Historical | Historical | Pro Forma | Pro Forma | |||||||||||||||||||
STB | CMTH | Adjustments | Combined | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||
Deposits | ¥ | 14,585,719 | ¥ | 9,064,722 | ¥ | 48,990 | (a) | ¥ | 23,738,867 | |||||||||||||
39,436 | (b) | |||||||||||||||||||||
Call money | 79,519 | 306,161 | (65,000 | ) | (c) | 320,680 | ||||||||||||||||
Cash collateral on securities lent and repurchase agreements | 601,787 | 1,702,698 | — | 2,304,485 | ||||||||||||||||||
Financial liabilities held for trading | 7,386 | — | — | 7,386 | ||||||||||||||||||
Derivative financial instruments | 2,827,439 | 199,932 | * | — | 3,027,371 | |||||||||||||||||
Financial liabilities designated at fair value through profit or loss | — | 2,080 | — | 2,080 | ||||||||||||||||||
Due to trust accounts | 83,337 | 21,356 | 978,618 | (a) | 1,083,311 | |||||||||||||||||
Principal guaranteed trust certificates | 655,047 | 1,216,105 | — | 1,871,152 | ||||||||||||||||||
Debt securities issued | 1,186,808 | 233,969 | 3,094 | (b) | 1,423,871 | |||||||||||||||||
Borrowed funds | 1,383,207 | 1,580,620 | 20,369 | (a) | 2,978,778 | |||||||||||||||||
9,380 | (b) | |||||||||||||||||||||
(14,798 | ) | (c) | ||||||||||||||||||||
Current tax payable | 8,169 | 4,625 | — | 12,794 | ||||||||||||||||||
Deferred tax liabilities | 17,669 | 10,899 | 109 | (a) | 43,730 | |||||||||||||||||
15,053 | (d) | |||||||||||||||||||||
Retirement benefit obligations | 9,204 | 5,793 | 302 | (a) | 15,954 | |||||||||||||||||
655 | (b) | |||||||||||||||||||||
Other liabilities | 555,410 | 134,340 | 35,116 | (a) | 720,509 | |||||||||||||||||
(9,157 | ) | (c) | ||||||||||||||||||||
4,800 | (g) | |||||||||||||||||||||
Total liabilities | 22,000,701 | 14,483,300 | * | 1,066,967 | 37,550,968 | |||||||||||||||||
Equity attributable to equity holders: | ||||||||||||||||||||||
Share capital | 342,037 | 261,609 | (261,609 | ) | (h)(i) | 261,609 | ||||||||||||||||
(80,428 | ) | (h)(i) | ||||||||||||||||||||
Capital surplus | 297,052 | 33,701 | (33,701 | ) | (h)(ii) | 867,756 | ||||||||||||||||
80,428 | (h)(ii) | |||||||||||||||||||||
(465 | ) | (h)(ii) | ||||||||||||||||||||
490,741 | (h)(ii) | |||||||||||||||||||||
Retained earnings | 429,096 | 244,790 | (2,849 | ) | (g) | 592,795 | ||||||||||||||||
(244,790 | ) | (h)(iii) | ||||||||||||||||||||
166,548 | (i) | |||||||||||||||||||||
Other reserves | 70,905 | 117,450 | (117,450 | ) | (h)(iv) | 70,905 | ||||||||||||||||
Treasury shares | (465 | ) | (271 | ) | 736 | (h)(v) | — | |||||||||||||||
Total equity attributable to equity holders of STB, CMTH, and Pro Forma Combined | 1,138,625 | 657,279 | (2,839 | ) | 1,793,065 | |||||||||||||||||
Non-controlling interests | 302,843 | 185,969 | 19,299 | (a) | 508,111 | |||||||||||||||||
Total equity | 1,441,468 | 843,248 | 16,460 | 2,301,176 | ||||||||||||||||||
Total liabilities and equity | ¥ | 23,442,169 | ¥ | 15,326,548 | * | ¥ | 1,083,427 | ¥ | 39,852,144 | |||||||||||||
* | Included in CMTH’s historical investment securities account is ¥7,969 million of embedded derivative liabilities as of March 31, 2010. Refer to CMTH’s financial statements Note 12. This liability is reclassified to derivative financial instruments to conform CMTH’s financial accounts to STB’s financial account line presentation. |
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CONDENSED INCOME STATEMENT
FOR THE YEAR ENDED MARCH 31, 2010
Historical | Historical | Pro Forma | Pro Forma | |||||||||||||||||||
STB | CMTH | Adjustments | Combined | |||||||||||||||||||
(Millions of yen, except per share data) | ||||||||||||||||||||||
Interest income | ¥ | 293,994 | ¥ | 203,705 | ¥ | 1,861 | (a) | ¥ | 491,624 | |||||||||||||
(7,936 | ) | (b) | ||||||||||||||||||||
Interest expenses | 107,893 | 72,814 | 1,233 | (a) | 160,454 | |||||||||||||||||
(21,486 | ) | (b) | ||||||||||||||||||||
Net interest income | 186,101 | 130,891 | 14,178 | 331,170 | ||||||||||||||||||
Provision for credit losses | 27,729 | 10,894 | — | 38,623 | ||||||||||||||||||
Net interest income after provision for credit losses | 158,372 | 119,997 | 14,178 | 292,547 | ||||||||||||||||||
Fee and commission income | 147,929 | 112,875 | 40,152 | (a) | 270,429 | |||||||||||||||||
(30,527 | ) | (c) | ||||||||||||||||||||
Fee and commission expenses | 26,321 | 21,061 | 1,333 | (a) | 31,150 | |||||||||||||||||
(17,565 | ) | (c) | ||||||||||||||||||||
Net fee and commission income | 121,608 | 91,814 | 25,857 | 239,279 | ||||||||||||||||||
Net gains on financial instruments held for trading | 83,508 | 13,868 | — | 97,376 | ||||||||||||||||||
Net losses on financial instruments designated at fair value through profit or loss | — | (803 | ) | — | (803 | ) | ||||||||||||||||
Net other operating income | 35,067 | 59,380 | 73 | (a) | 94,520 | |||||||||||||||||
Other income | 118,575 | 72,445 | 73 | 191,093 | ||||||||||||||||||
Total income | 398,555 | 284,256 | 40,108 | 722,919 | ||||||||||||||||||
Impairment losses on investment securities | 16,595 | 8,919 | — | 25,514 | ||||||||||||||||||
General and administration expenses | 201,476 | 129,819 | 26,741 | (a) | 354,799 | |||||||||||||||||
9,725 | (b) | |||||||||||||||||||||
(12,962 | ) | (c) | ||||||||||||||||||||
Other expenses | 35,202 | 19,459 | 12,302 | (a) | 66,112 | |||||||||||||||||
(851 | ) | (d) | ||||||||||||||||||||
Operating expenses | 253,273 | 158,197 | 34,955 | 446,425 | ||||||||||||||||||
Share of gains (losses) of associates and joint ventures | 1,436 | (509 | ) | (184 | ) | (a) | 743 | |||||||||||||||
Profit before income tax expenses | 146,718 | 125,550 | 4,969 | 277,237 | ||||||||||||||||||
Income tax expenses | 64,604 | 21,446 | 201 | (a) | 88,172 | |||||||||||||||||
346 | (d) | |||||||||||||||||||||
1,575 | (e) | |||||||||||||||||||||
Net profit | ¥ | 82,114 | ¥ | 104,104 | ¥ | 2,847 | ¥ | 189,065 | ||||||||||||||
Net profit attributable to: | ||||||||||||||||||||||
Equity holders of STB, CMTH, and Pro Forma Combined | ¥ | 69,334 | ¥ | 97,354 | ¥ | 2,755 | ¥ | 169,443 | ||||||||||||||
Non-controlling interests | 12,780 | 6,750 | 92 | (a) | 19,622 | |||||||||||||||||
Net profit | 82,114 | 104,104 | 2,847 | 189,065 | ||||||||||||||||||
Earnings per share (in yen): | ||||||||||||||||||||||
Basic | 41.2 | 64.0 | — | 41.9 | * | |||||||||||||||||
Diluted | 41.2 | 59.7 | — | 41.0 | * | |||||||||||||||||
Weighted-average shares used to calculate earnings per share (in thousands): | ||||||||||||||||||||||
Basic | 1,674,588 | 1,490,668 | — | 3,985,804 | ||||||||||||||||||
Diluted | 1,674,588 | 1,638,547 | — | 4,133,683 |
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* | Pro forma earnings per share is calculated using the adjusted pro forma net profit attributable to equity holders divided by the pro forma weighted average number of shares outstanding. Adjusted pro forma net profit attributable to equity holders is derived by making certain adjustments, which relate to the preference shares, to the pro forma net profit attributable to equity holders. Refer to STB’s financial statements Note 41 and CMTH’s financial statements Note 43 for preference share dividend information. |
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(Millions of yen) | ||||||||||
STB common shares outstanding as of March 31, 2010 (in thousands) | 1,674,572 | |||||||||
STB ownership ratio(1) | 60.1% | |||||||||
Deemed common shares issued to CMTH (in thousands)(2) | 1,112,792 | |||||||||
STB closing share price (in yen)(3) | ¥ | 441 | ||||||||
Estimated consideration to be transferred | ¥ | 490,741 | ||||||||
(1) | As of March 31, 2010, STB and CMTH have 1,674,572 thousand common shares and 1,658,060 thousand common shares outstanding, respectively. Under the share exchange agreement with an exchange ratio of 1.49 common shares for each common share of STB, legally, CMTH would issue 2,495,112 thousand CMTH common shares in exchange for all common shares outstanding of STB. As a result, equity holders of STB would obtain 60.1% voting interest of the combined entity. | |
(2) | Under the reverse acquisition where STB is the acquirer and CMTH is the acquiree for accounting purposes, the deemed shares issued to CMTH are based on the number of new shares STB would have to issue to give the equity holders of CMTH the same voting interest ownership ratio in the combined entity had STB been the entity issuing shares for this business combination. This is determined by dividing STB’s outstanding common shares of 1,674,572 thousand shares as of March 31, 2010 by 60.1%, representing STB equity holders’ deemed ownership ratio of the combined entity, multiplied by 39.9%, representing CMTH equity holders’ deemed ownership ratio of the combined entity. | |
(3) | Represents STB’s market share price as of October 29, 2010. Using the share price of STB for the past year, a range of possible outcomes was determined that appeared reasonable in light of the market volatility, based on the daily change in share price and its associated standard deviation. Based on such volatility, a 1% change to 10% change in the market price would impact the estimated consideration to be transferred by ¥4,907 million to ¥49,074 million, respectively. |
(Millions of yen) | |||||
Estimated consideration to be transferred | ¥ | 490,741 | |||
Less fair value of assets to be acquired: | |||||
Cash and deposits with banks | 268,450 | ||||
Call loans | 10,875 | ||||
Cash collateral on securities borrowed | 1,521 | ||||
Financial assets held for trading | 12,007 | ||||
Derivative financial instruments | 203,406 | ||||
Financial assets designated at fair value through profit or loss | 124,408 | ||||
Investment securities | 4,232,855 |
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(Millions of yen) | |||||
Loans and advances | 9,776,704 | ||||
Investment in associates and joint ventures | 21,990 | ||||
Property and equipment | 102,025 | ||||
Intangible assets | 149,270 | ||||
Deferred tax assets | 171,506 | ||||
Other assets | 319,159 | ||||
Plus fair value of liabilities to be assumed: | |||||
Deposits | 9,104,158 | ||||
Call money | 306,161 | ||||
Cash collateral on securities lent and repurchase agreements | 1,702,698 | ||||
Derivative financial instruments | 199,932 | ||||
Financial liabilities designated at fair value through profit or loss | 2,080 | ||||
Due to trust accounts | 21,356 | ||||
Principal guaranteed trust certificates | 1,216,105 | ||||
Debt securities issued | 237,063 | ||||
Borrowed funds | 1,590,000 | ||||
Current tax payable | 4,625 | ||||
Deferred tax liabilities | 25,952 | ||||
Retirement benefit obligations | 6,448 | ||||
Other liabilities | 134,340 | ||||
Non-controlling interests | 185,969 | ||||
Gain on bargain purchase | ¥ | 166,548 | |||
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Equivalent | |||||||||||||||||||||||||
Historical | Pro Forma | Pro Forma(5) | |||||||||||||||||||||||
STB | CMTH | SMTH | STB | CMTH | |||||||||||||||||||||
(Yen) | |||||||||||||||||||||||||
As of March 31, 2010 | |||||||||||||||||||||||||
Net book value per share | ¥ | 680.0 | ¥ | 396.4 | ¥ | 431.7(1 | ) | ¥ | 643.3 | ¥ | 431.7 | ||||||||||||||
For the fiscal year ended March 31, 2010 | |||||||||||||||||||||||||
Dividends declared per share | 10.0 | 8.0 | 7.2(2 | ) | 10.7 | 7.2 | |||||||||||||||||||
Earnings per share attributable to STB, CMTH, and Pro Forma Combined – basic | 41.2 | 64.0 | 41.9(3 | ) | 62.5 | 41.9 | |||||||||||||||||||
Earnings per share attributable to STB, CMTH, and Pro Forma Combined – diluted | 41.2 | 59.7 | 41.0(4 | ) | 61.1 | 41.0 |
(1) | Pro forma net book value per share is calculated using the pro forma net book value divided by the pro forma number of shares outstanding. The pro forma number of shares outstanding is derived after taking into consideration the additional number of shares expected to be issued based on the applicable share exchange ratio. | |
(2) | Pro forma dividends declared per share is calculated using the pro forma dividend declared divided by the pro forma weighted average number of shares outstanding. The pro forma weighted average number of shares is derived after taking into consideration the additional number of shares expected to be issued based on the applicable share exchange ratio assuming that these shares were issued at the beginning of the period. | |
(3) | Pro forma earnings per share is calculated using the adjusted pro forma net profit attributable to equity holders divided by the pro forma weighted average number of shares outstanding. Adjusted pro forma net profit attributable to equity holders is derived by making certain adjustments, which relate to preference shares, to pro forma net profit attributable to equity holders. | |
(4) | Pro forma diluted earnings per share is calculated on the assumption that convertible preference shares issued were converted into common shares as soon as they became eligible for conversion. | |
(5) | Equivalent pro forma per share amounts are calculated by multiplying the pro forma SMTH per share amounts by the applicable share exchange ratio, which is 1.49 common shares of CMTH for each common share of STB. |
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CMTH Common Stock | STB Common Stock | |||||||||||||||||||
Price per share | Price per share | |||||||||||||||||||
High | Low | High | Low | |||||||||||||||||
Fiscal Year Ended March 31, | ||||||||||||||||||||
2006 | ¥ | 1,867 | ¥ | 962 | ¥ | 1,390 | ¥ | 628 | ||||||||||||
2007 | 1,792 | 1,113 | 1,454 | 991 | ||||||||||||||||
2008 | 1,205 | 543 | 1,294 | 604 | ||||||||||||||||
2009: | ||||||||||||||||||||
First quarter | 799 | 578 | 960 | 687 | ||||||||||||||||
Second quarter | 702 | 478 | 814 | 579 | ||||||||||||||||
Third quarter | 600 | 262 | 727 | 318 | ||||||||||||||||
Fourth quarter | 446 | 236 | 539 | 270 | ||||||||||||||||
2010: | ||||||||||||||||||||
First quarter | 412 | 299 | 574 | 366 | ||||||||||||||||
Second quarter | 402 | 293 | 587 | 435 | ||||||||||||||||
Third quarter | 380 | 289 | 524 | 434 | ||||||||||||||||
Fourth quarter | 356 | 300 | 559 | 454 | ||||||||||||||||
Most Recent Six Months | ||||||||||||||||||||
May 2010 | 356 | 313 | 552 | 471 | ||||||||||||||||
June 2010 | 348 | 311 | 499 | 443 | ||||||||||||||||
July 2010 | 336 | 290 | 496 | 443 | ||||||||||||||||
August 2010 | 318 | 296 | 492 | 445 | ||||||||||||||||
September 2010 | 299 | 275 | 452 | 413 | ||||||||||||||||
October 2010 | 315 | 273 | 476 | 411 | ||||||||||||||||
November 2010 (through November 8) | 296 | 281 | 449 | 424 |
CMTH | STB | ||||||||||||||
Common Stock | Common Stock | ||||||||||||||
Implied | |||||||||||||||
Historical | Historical | equivalent value | |||||||||||||
November 5, 2009 | ¥ | 320 | ¥ | 480 | ¥ | 322 | |||||||||
August 24, 2010 | 312 | 468 | 314 | ||||||||||||
November 8, 2010 | 285 | 429 | 288 |
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CMTH Common Stock | STB Common Stock | |||||||||||||||
Japanese Yen | U.S. Dollar | Japanese Yen | U.S. Dollar | |||||||||||||
Year ended March 31, | ||||||||||||||||
2006 | ¥ | 4.0 | $ | 0.03 | ¥ | 12.0 | $ | 0.10 | ||||||||
2007 | 5.0 | 0.04 | 17.0 | 0.14 | ||||||||||||
2008 | 7.0 | 0.07 | 17.0 | 0.17 | ||||||||||||
2009 | 5.0 | 0.05 | 10.0 | 0.10 | ||||||||||||
2010 | 8.0 | 0.08 | 10.0 | 0.11 |
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High | Low | Average(1) | Period-end | |||||||||||||||||
Fiscal year ended March 31, | ||||||||||||||||||||
2006 | ¥ | 120.93 | ¥ | 104.41 | ¥ | 113.67 | ¥ | 117.48 | ||||||||||||
2007 | 121.81 | 110.07 | 116.55 | 117.56 | ||||||||||||||||
2008 | 124.09 | 96.88 | 113.61 | 99.85 | ||||||||||||||||
2009 | 110.48 | 87.80 | 100.85 | 99.15 | ||||||||||||||||
2010 | 100.71 | 86.12 | 92.49 | 93.40 | ||||||||||||||||
Most recent six months | ||||||||||||||||||||
May 2010 | 94.68 | 89.89 | 91.97 | 90.81 | ||||||||||||||||
June 2010 | 92.33 | 88.39 | 90.81 | 88.49 | ||||||||||||||||
July 2010 | 88.59 | 86.40 | 87.50 | 86.43 | ||||||||||||||||
August 2010 | 86.42 | 84.10 | 85.37 | 84.10 | ||||||||||||||||
September 2010 | 85.77 | 83.05 | 84.36 | 83.53 | ||||||||||||||||
October 2010 | 83.33 | 80.47 | 81.79 | 80.47 |
(1) | The average exchange rates for the fiscal-year periods shown is the average of the month-end rates during the period. |
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• | to consider and to vote upon the approval of the share exchange agreement; and | |
• | to consider and to vote upon the approval of the amendment to the articles of incorporation. |
• | Class II Preferred Shares; | |
• | treasury shares held by STB; | |
• | shares held by entities in which STB (together with its subsidiaries) holds 25% or more of the voting rights; and |
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• | shares issued after the applicable record date and shares that have come to constitute one or more unit after the record date. |
• | count toward the quorum for its shareholders’ meeting any shares represented by mail-in voting cards that are returned without indicating the approval or disapproval of any of the proposals; and | |
• | count the shares represented by mail-in voting cards returned in this manner as votes in favor of the share exchange agreement and other proposals referred to in the mail-in voting cards. |
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• | the recent global financial crisis had led to major structural changes in the global economy and clients faced increasingly complex issues in managing their assets; | |
• | Japan’s low birthrate and aging society, as well as the maturing of the economy, made it a pressing challenge to facilitate the flow of Japan’s substantial personal financial assets, pensions and other funds to promising fields and to realize sustainable economic growth; and | |
• | CMTH and STB groups, both of which have high levels of expertise and broad business scope, were entering a period where they should give full play to their strengths in order to address these social and economic challenges. |
• | the integrated company would be called Sumitomo Mitsui Trust Holdings; | |
• | the headquarters would be in Tokyo; and | |
• | the board of directors would have an equal number of directors from CMTH and from STB. |
• | the combined trust bank would be called Sumitomo Mitsui Trust Bank; |
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• | the headquarters would be in Tokyo; and | |
• | the board of directors would have an equal number of directors from CMTH and from STB. |
• | announcing the planned management integration in November 2009; | |
• | completing the management integration through a share exchange in April 2011; and | |
• | merging the trust bank subsidiaries in April 2012. |
• | the integration of independent trust bank groups would create more synergies, such as a reduction in overlapping system investments, than an integration with a commercial bank; | |
• | both groups have similar corporate cultures that emphasize a strong relationship of trust with assignors and beneficiaries, so the management integration could be achieved without harming these corporate cultures; and | |
• | CMTH and STB groups are the best available integration candidates for each other and from the perspective of their clients, since there is limited overlap of their branches. |
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• | operational plans after the management integration; | |
• | basic strategies in relation to consolidating their headquarters and branches, as well as integrating of IT systems, and the related costs, in order to estimate the potential synergy effects; | |
• | the functions of the integrated holding company; and | |
• | the organization of companies in which the integrated holding company would hold direct investments. |
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• | reviewed certain publicly available business and financial information relating to STB and CMTH; | |
• | reviewed certain internal financial information and other data relating to the businesses and financial prospects of STB that were not publicly available, including financial forecasts and estimates prepared by the management of STB that STB’s board of directors directed UBS to utilize for purposes of its analysis; | |
• | reviewed certain internal financial information and other data relating to the businesses and financial prospects of CMTH that were not publicly available, including financial forecasts and estimates prepared by the management of CMTH that STB’s board of directors directed UBS to utilize for purposes of its analysis; | |
• | reviewed certain estimates of synergies prepared by the managements of STB and CMTH that were not publicly available that STB’s board of directors directed UBS to utilize for purposes of its analysis; | |
• | conducted discussions with members of the senior managements of STB and CMTH concerning the businesses and financial prospects of STB and CMTH; |
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• | reviewed publicly available financial and stock market data with respect to selected publicly traded Japanese major banks which UBS believed to be generally relevant; | |
• | reviewed current and historical market prices of STB common stock and CMTH common stock; | |
• | reviewed the management integration agreement between STB and CMTH, draft dated as of August 23, 2010, and the share exchange agreement between STB and CMTH, draft dated as of August 23, 2010; and | |
• | conducted such other financial studies, analyses and investigations, and considered such other information, as UBS deemed necessary or appropriate. |
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Historical trading ratio | ||
One-week trading day average | 1.50 | |
One-month trading day average | 1.52 | |
Three-month trading day average | 1.49 | |
Six-month trading day average | 1.53 |
• | MUFG; | |
• | SMFG; and | |
• | Mizuho Financial Group. |
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STB based on an exchange | ||||||||||||||||||||||||||||||||||||
ratio of 1.49 shares of CMTH | ||||||||||||||||||||||||||||||||||||
Selected companies based on | common stock and on CMTH’s | |||||||||||||||||||||||||||||||||||
closing stock price | closing stock price | STB based on closing stock | CMTH based on closing stock | |||||||||||||||||||||||||||||||||
on August 17, 2010 | on August 17, 2010 | price on August 17, 2010 | price on August 17, 2010 | |||||||||||||||||||||||||||||||||
STB | STB | STB | CMTH | CMTH | ||||||||||||||||||||||||||||||||
Consensus | Management | Consensus | Management | Consensus | ||||||||||||||||||||||||||||||||
High | Median | Mean | Low | Estimates | Estimates | Estimates | Estimates | Estimates | ||||||||||||||||||||||||||||
Return on average equity, for the fiscal year ended March 31, 2010 | 10.9 | 7.6 | 7.8 | 4.9 | — | — | 5.3 | — | 9.8 | |||||||||||||||||||||||||||
Price-to-book ratio as of June 30, 2010 | 0.75 | 0.74 | 0.73 | 0.71 | 0.74 | — | 0.73 | — | 0.78 | |||||||||||||||||||||||||||
Price-to-earnings ratio: | ||||||||||||||||||||||||||||||||||||
Estimated net income for the fiscal year ending March 31, 2011 | 13.7 | 10.1 | 10.7 | 8.2 | 11.6 | 10.8 | 11.5 | 10.2 | 10.1 | |||||||||||||||||||||||||||
Estimated net income for the fiscal year ending March 31, 2012 | 11.5 | 9.7 | 9.8 | 8.3 | 11.6 | 10.2 | 11.5 | 9.1 | 9.9 |
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Total contribution | ||||||
STB | After-tax synergy | CMTH | ||||
Fiscal year ending March 31, 2010 (actual) | 51.9% | — | 48.1% | |||
Fiscal year ending March 31, 2011 (estimated) | 58.5% | — | 41.5% | |||
Fiscal year ending March 31, 2012 (estimated) | 57.0% | — | 43.0% | |||
Fiscal year ending March 31, 2013 (estimated) | 56.1% | 3.6% | 40.3% | |||
Fiscal year ending March 31, 2014 (estimated) | 53.9% | 7.6% | 38.6% | |||
Fiscal year ending March 31, 2015 (estimated) | 51.9% | 10.0% | 38.1% | |||
Fiscal year ending March 31, 2016 (estimated) | 50.5% | 13.2% | 36.3% |
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• | reviewed and analyzed the drafts of a share exchange agreement and the management integration agreement between STB and CMTH dated August 23, 2010; | |
• | reviewed and analyzed financial information and business descriptions contained in the annual securities reports (yuka-shoken hokokusho) and other disclosure materials of STB and CMTH; |
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• | reviewed and analyzed publicly available materials, including share-related information, related to STB and CMTH; | |
• | reviewed and analyzed the business plans of STB and CMTH prepared by STB and CMTH, respectively, for the period between April 1, 2010 and March 31, 2016 and any other related information provided to Daiwa by STB, including through interviews; | |
• | reviewed and analyzed the expected synergies relating to the transaction prepared by each of STB and CMTH; | |
• | interviewed the management of STB and CMTH regarding their respective finances and businesses, financial forecasts and the effects of the transaction, including the expected synergies; | |
• | reviewed and analyzed the historical market prices and trading activity of the shares of common stock of each of STB and CMTH; | |
• | reviewed the report, dated July 13, 2010, on legal due diligence performed by STB’s legal advisors on CMTH received from STB; | |
• | reviewed the report, dated July 12, 2010, on financial due diligence performed by STB’s accounting advisors on CMTH received from STB; | |
• | reviewed the report, dated July 12, 2010, on tax due diligence performed by STB’s tax advisors on CMTH received from STB; and | |
• | reviewed and analyzed other related information Daiwa deemed appropriate. |
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Exchange ratio | |||||||||||||||
STB | CMTH | per STB share | |||||||||||||
Reference Date | ¥ | 453 | ¥ | 307 | 1.48 | ||||||||||
1 Month | ¥ | 467 | ¥ | 307 | 1.52 | ||||||||||
3 Months | ¥ | 474 | ¥ | 319 | 1.49 | ||||||||||
6 Months | ¥ | 504 | ¥ | 331 | 1.53 |
• | Dividends: Daiwa assumed that only year-end dividends would be paid. | |
• | Target Tier I Capital Ratio: Daiwa assumed target ratios of Tier I capital ranging from 8.0% to 10.0%. For purposes of this analysis, Daiwa assumed that Tier I capital would continue to be calculated in accordance with each company’s current methods, which are based on the applicable provisions of the Banking Law and FSA guidance. | |
• | Perpetual Growth Rates: In calculating terminal value, Daiwa applied perpetual growth rates ranging from -0.50% to 0.50% to each company’s estimated free cash flows, which Daiwa calculated as the difference between the amount of Tier I capital expected by the company’s management and the minimum Tier I capital required by the company to maintain the target Tier I capital ratio. | |
• | Discount Rates: The dividend stream and terminal values were then discounted using discount rates ranging from 7.3% to 7.6%. Daiwa calculated these discount rates based on STB’s and CMTH’s costs of capital, as well as certain selected companies’ costs of capital, while taking into consideration STB’s and CMTH’s unique business risks. |
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Relative contribution | Exchange ratio per | ||||||||||||||
STB | CMTH | STB share | |||||||||||||
Adjusted book value(1) (March 31, 2010) | 61.2% | 38.8% | 1.56 | ||||||||||||
Adjusted Tier I capital(2) (March 31, 2010) | 60.9% | 39.1% | 1.54 | ||||||||||||
Adjusted pre-provision profit(3) (estimate) | |||||||||||||||
Year ending March 31, 2011 | 58.3% | 41.7% | 1.38 | ||||||||||||
Year ending March 31, 2012 | 59.4% | 40.6% | 1.45 | ||||||||||||
Year ending March 31, 2013 | 59.4% | 40.6% | 1.45 | ||||||||||||
Year ending March 31, 2014 | 58.6% | 41.4% | 1.40 | ||||||||||||
Year ending March 31, 2015 | 57.8% | 42.2% | 1.36 | ||||||||||||
Year ending March 31, 2016 | 57.4% | 42.6% | 1.34 | ||||||||||||
Adjusted net income(4) (estimate) | |||||||||||||||
Year ending March 31, 2011 | 58.5% | 41.5% | 1.39 | ||||||||||||
Year ending March 31, 2012 | 57.0% | 43.0% | 1.32 | ||||||||||||
Year ending March 31, 2013 | 58.2% | 41.8% | 1.38 | ||||||||||||
Year ending March 31, 2014 | 58.3% | 41.7% | 1.38 | ||||||||||||
Year ending March 31, 2015 | 57.7% | 42.3% | 1.35 | ||||||||||||
Year ending March 31, 2016 | 58.2% | 41.8% | 1.38 |
(1) | Net assets, less minority interests and outstanding preferred stock. | |
(2) | Tier I capital, less outstanding preferred stock. | |
(3) | “Pre-provision profit�� is defined as the (a) sum of non-consolidated pre-provision profits (i.e., net operating profits before providing for general allowances for credit losses and trust account credit costs) of bank subsidiaries and gross operating profit of other subsidiaries, less the (b) sum of operating expenses of other subsidiaries and income from intragroup transactions. Adjusted pre-provision profit was calculated by subtracting preferred stock dividends from pre-provision profit. | |
(4) | Net income, less preferred stock dividends. |
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• | change its trade name to Mitsui Sumitomo Trust Holdings Kabushiki Kaisha, which will be written in English as Sumitomo Mitsui Trust Holdings, Inc., or SMTH; | |
• | change the location of its head office to Chiyoda-ku, Tokyo; | |
• | add the contents of the First Series of CMTH Class VII Preferred Shares; and | |
• | make other changes as agreed by and between CMTH and STB. |
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• | at the close of September 30, 2010, up to 8 yen per share; and | |
• | at the close of March 31, 2011, up to the amount (yen per share) calculated by the formula 8+8–x, where x is the amount of dividends paid per share to the common shareholders or pledgees with respect to shares of CMTH common stock at the close of September 30, 2010. |
• | at the close of September 30, 2010, up to 10 yen per share; and | |
• | at the close of March 31, 2011, up to the amount (yen per share) calculated by the formula 10+10–x, where x is the amount of the dividends paid per share to the common shareholders or pledgees with respect to shares of STB common stock at the close of September 30, 2010. |
• | at the close of September 30, 2010, up to 21.15 yen per share; and | |
• | at the close of March 31, 2011, up to 21.15 yen per share. |
• | CMTH’s shareholders having approved the share exchange agreement by the requisite vote at the extraordinary general meeting of its shareholders and at the class shareholders’ meeting of common stock holders; | |
• | STB’s shareholders of common stock having approved the share exchange agreement by the requisite vote at the extraordinary general meeting of its shareholders and at the class shareholders’ meeting of common stock holders; | |
• | STB’s shareholders of Class II Preferred Shares having approved the share exchange agreement by the requisite vote at the class shareholders’ meeting of such preferred stock holders; and |
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• | all regulatory approvals and consents or other requirements necessary to effect the share exchange having been obtained or satisfied. |
• | there is a material change in the conditions of assets or business operations or rights and obligations of CMTH or STB; | |
• | a situation arises or is discovered that materially obstructs the implementation of the share exchange; or | |
• | some other reason makes it difficult to achieve the purpose of the share exchange agreement. |
• | a petition for commencement of bankruptcy proceedings, civil rehabilitation proceedings, corporate reorganization proceedings, special liquidation proceedings or other similar legal insolvency proceedings (including proceedings under foreign laws) is filed against the other party, or the other party files such petition; |
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• | the other party falls into a status of suspension of payments, becomes insolvent or has liabilities in excess of assets; or | |
• | the other party commits a material breach of the agreement or suffers material adverse change in its financial position, operating results or rights or obligations, and CMTH and STB cannot reach an agreement on measures to achieve the objectives of the management integration agreement after negotiation with each other and it is deemed that the implementation of the share exchange is materially obstructed. |
• | CMTH and STB agree to terminate the management integration agreement; | |
• | the management integration agreement is cancelled; or | |
• | the share exchange agreement is cancelled, or ceases to be effective, in accordance with its terms. |
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• | has voting rights at the extraordinary meeting of shareholders and the class shareholders’ meeting, and notifies the company prior to its extraordinary general meeting of shareholders and the class shareholders’ meeting of his or her intention to oppose the share exchange and votes against the approval of the share exchange agreement at the extraordinary meeting of shareholders and the class shareholders’ meeting; or | |
• | does not have voting rights at the extraordinary meeting of shareholders and the class shareholders’ meeting, including any shareholder whose shares constitute less than one unit; and |
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• | formulating group management strategy; | |
• | allocation of management resources; | |
• | monitoring administration of business activities; | |
• | supervising risk management; | |
• | supervising compliance management; and | |
• | managing internal auditing. |
• | Chuo Mitsui Asset Management; | |
• | STB Asset Management Co., Ltd., or STB Asset; | |
• | Chuo Mitsui Capital; | |
• | STB Research Institute Co., Ltd., or STB Research; and | |
• | JTSB. |
• | Provide comprehensive solutions, with superior products and services across business fields. SMTH will aim to leverage its high level of expertise and a wide range of capabilities cultivated from both the CMTH group and the STB group over the years, to provide comprehensive solutions with superior products and services across business fields that correspond to clients’ needs. |
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• | Concentrate resources on prioritized strategic areas and focus on pursuit of synergies. SMTH will aim to improve profitability and realize stable and sustainable growth by concentrating management resources on strategic areas where the SMTH group is competitive and expects stronger growth and business synergies across different business fields. | |
• | Financial soundness and capital efficiency. SMTH will aim to secure capital adequacy in terms of quality and quantity, and maintain a sound financial position. At the same time, SMTH will aim to enhance its capital efficiency through the reinforcement of its fee businesses based on its trust functions. |
• | Investment trust and insurance sales. SMTH will aim to increase revenue from the sales of diversified products, including not only investment trust and insurance, in which it is expected to have one of the leading positions in terms of the sales amount among Japanese banks, but also mutual fund wrap programs and foreign currency deposits. SMTH will aim to develop its productline-up and services by leveraging the product development capabilities of its group companies, and will reinforce its sales structure for providing high quality asset management consulting services by increasing the number of sales representatives, and introducing rigorous training. | |
• | Loans to individuals. SMTH will aim to expand its housing loan business, targeting individuals with strong housing acquisition needs, such as the baby boomer junior generation, and reinforcing its business structure for swifter services by increasing the number of sales representatives and by leveraging diversified channels including major developers, house builders and convenient online internet channels. SMTH will seek stable growth in housing loans as one of its core assets among its credit portfolio. | |
• | Will trust and inheritance management. In response to the increasing social needs as to wealth management and succession issues in the context of an aging society, SMTH will aim to further develop and improve its structure for proposing custom-made solutions by dedicated consultants with in-depth knowledge and experience. |
• | Corporate credit. SMTH will be capable of providing diversified financing methods of banking as well as trust services, and will aim to reinforce its sales structure for providing value-added products and services that combine the strengths of financial functions such as syndicated loans and securitization with those having trust and real estate business functions, based on appropriate responses to the financing requirements of its corporate clients. | |
• | Financial products sales. In response to the asset management needs of school corporations and financial institutions, SMTH will aim to develop and distribute diversified financial products, including |
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market-based financial products and private fund trusts by integrating the specialized functions of the group. |
• | International business. SMTH will seek to respond to the financing needs of Japanese companies expanding overseas and will aim to expand its trust business through partnerships. In particular, SMTH will aim to steadily capture growth opportunities in Asia and to further elevate its recognition in the region. |
• | Pension and securities business. In response to the sophisticated asset management needs of domestic and international institutional investors such as corporate pension funds, SMTH plans to develop its asset management capabilities in relation to domestic and international assets and reach a larger base of investors through partnerships with leading international asset managers and by utilizing their networks in Asia, and will aim to become a leading asset manager in the Asian market. SMTH will also aim to provide diversified products developed by its trust banks, which are scheduled to merge in April 2012, and other group companies, by leveraging its expertise in consulting capabilities of pension plans as well as asset management and administration, related to defined-benefit and defined-contribution pension plans. | |
• | With regard to the asset administration business such as investment trust and asset custody services, SMTH will aim to increase its assets under custody and profitability by further increasing business process efficiency and the value of its services, including lending services. | |
• | Investment trust management. SMTH plans to strategically reinforce its investment trust management companies. Through the reinforcement of these investment trust management companies, SMTH will aim to further increase its assets under management. | |
• | Stock transfer agency service. SMTH plans to provide stock transfer agency services by utilizing high-level IT infrastructure, speedy processing and its information collected from its stock transfer agency business platform. SMTH also aims to provide its corporate clients with tailored support to resolve their problems through value-added investor- and shareholder-relations information operations. |
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Business Segment | Planned measures to be implemented | |
Retail Banking — Investment Trust and Insurance Sales | Aim to increase sales of investment trusts and insurance through a substantial increase in the number of sales representatives, and reinforcement of asset management consulting capabilities by sharing products and know-how on sales. | |
Retail Banking — Loans to Individuals | Aim to increase loan origination by increasing the number of sales representatives and sharing the operational structure and know-how for business development of the CMTH and STB groups. Through these measures, revenue of the loan guarantee company is expected to accordingly increase. | |
Wholesale Banking — Corporate Credit and others | Aim to expand fee businesses, including syndicated loans and asset securitization, in conjunction with the improvement of SMTH’s position through increased relationships with corporate clients. | |
Wholesale Banking — Financial Products Sale | Aim to increase financial products sales, such as market-based financial products and private fund trusts, by leveraging the expanded client base, including school corporations and financial institutions. | |
Wholesale Banking — International Business | Aim to increase loan balances, in part by meeting the financing requirements of Japanese corporate clients through overseas offices by increasing sales representatives. |
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Business Segment | Planned measures to be implemented | |
Asset management and Administration — Pension and Securities Business | Aim to increase trust balances by cross-selling of active funds and alternative products that are highly rated by clients of the CMTH and STB groups to corporate pension funds and international institutional investors. Aim to increase trust balances in conjunction with realized synergies from the retail business of investment trusts and insurance sales. | |
Asset management and Administration — Investment Trust Management | Planned redeployment of employees with specialized knowledge in the asset management business to improve the investment trust managers’ product development capabilities and sales support functions for the sales company, which is expected to increase sales of investment trusts for retail clients and assets under management. | |
Real Estate | Aim to increase generation of brokerage fees, through the redeployment of personnel from overlapping functions of both the CMTH and STB groups, and through increased information matching capabilities in connection with the expansion of the corporate and retail client base. |
Segment | Measures | |
Consolidation of headquarters and branches | After the planned headquarters consolidation in the fiscal year ending March 31, 2013 and full integration of IT systems in the fiscal year ending March 31, 2015, SMTH plans to consolidate overlapping branches. The expected efficiency improvements in business administration are expected to help reduce outsourcing, business and advertising expenses. | |
IT systems-related costs | Settlement and clearance systems and IT systems related to each business field are planned to be consolidated or integrated in the fiscal year ending March 31, 2015, in order to help reduce operating and maintenance expenses and development costs. | |
Personnel costs | Aim to reduce headcount by approximately 1,000 by the fiscal year ending March 31, 2016 by controlling hiring needs, and thus help reduce personnel and retirement benefit costs. |
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• | CMTH; | |
• | Chuo Mitsui, a trust bank subsidiary; | |
• | Chuo Mitsui Asset, a trust bank subsidiary; | |
• | Chuo Mitsui Asset Management, an asset management subsidiary; | |
• | Chuo Mitsui Capital, an asset management subsidiary; and | |
• | other consolidated subsidiaries. |
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• | to utilize financial and trust banking functions to meet the needs of society and contribute to further development of the Japanese economy; | |
• | to be aware of the role that a corporate citizen must play and strive to fulfill its inherent social responsibilities; and | |
• | to enhance structures for risk management and compliance, including adherence to laws and other socially mandated requirements, and to ensure management soundness. |
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• | Formulation of Group Management Strategy. CMTH coordinates divisional strategies for Chuo Mitsui, Chuo Mitsui Asset, Chuo Mitsui Asset Management and Chuo Mitsui Capital and establishes strategies to maximize groupwide profits and shareholder value. | |
• | Monitoring of Business Activities. CMTH monitors the status of operations of each group company, including Chuo Mitsui, Chuo Mitsui Asset, Chuo Mitsui Asset Management and Chuo Mitsui Capital, to ensure consistency within group strategies. | |
• | Allocation of Management Resources. CMTH allocates management resources for the group, such as personnel, budgets and investments in equipment and information systems, and monitors the use of these resources and the application of funds at each group company. | |
• | Supervision of Risk Management and Internal Controls. CMTH formulates key policies on risk management and internal controls for the group as a whole, and undertakes related assessments, including review of risk management activities, at Chuo Mitsui, Chuo Mitsui Asset, Chuo Mitsui Asset Management and Chuo Mitsui Capital. | |
• | Tracking of Compliance Status. CMTH tracks efforts at Chuo Mitsui, Chuo Mitsui Asset, Chuo Mitsui Asset Management and Chuo Mitsui Capital to comply with corporate ethics policies, as well as employee and senior management standards of conduct, which are formulated and maintained by CMTH on a groupwide basis. | |
• | Monitoring of Internal Audits. In addition to formulating the direction for the execution of internal audits on a groupwide basis, CMTH examines the results of internal audits and, based on the results, provides feedback and guidance regarding any actions required. |
• | Corporate Lending. Chuo Mitsui has years of experience in corporate lending and counts many of Japan’s major companies among its clients. |
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• | Corporate Advisory Services. Chuo Mitsui offers advisory services and products relating to financial strategies, management and corporate governance structures, hostile takeover defense, business succession planning and initial public offerings. In its corporate restructuring and revitalization business, Chuo Mitsui provides financing and advisory services relating to management buyouts, or MBOs, leveraged buyouts and other merger and acquisition transactions. |
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• | loans for first-time homeowners as well as financing to cover the cost of building a new home, to purchase a home upon selling an older dwelling and to refinance an existing housing loan; | |
• | “Exerina” housing loans for working women offering reduced interest rates for the first year after a child is born, medical insurance upon hospitalization and other special features; | |
• | home-backed card loans, called “α-style,” which are secured financial instruments that enable clients to acquire funds for their personal use; | |
• | home equity loans and loans for the elderly to remodel their homes to make them barrier-free or better able to withstand earthquakes; and | |
• | loans with repayment provisions that grant borrowers added peace of mind in the event of unforeseen circumstances, such as illness, through loan packages that carry a rider against all three major diseases in Japan — cancer, stroke and heart attack — or one specifically for cancer. |
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• | Jointly Operated Designated Money Trusts. JOMTs are savings vehicles in the form of open-ended trusts. Chuo Mitsui guarantees the principal of certain of the JOMTs that it offers. JOMTs are offered in a number of contract maturities, from one year to five years or more. Beneficiaries of almost all JOMTs are paid a fixed-rate dividend. JOMT funds are jointly managed pursuant to general guidelines set forth in the trust agreement. | |
• | Independently Operated Designated Money Trusts. Assets entrusted to an independently operated designated money trust are segregated from other entrusted funds and are managed by Chuo Mitsui pursuant to guidelines established by the person that has entrusted the funds. |
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• | Designated Money Trusts. These are trusts for which the trustee has the authority to manage the entrusted funds at its own discretion within the range and type of assets designated by the institutional investor that has entrusted the funds. | |
• | Specified Money Trusts. These are trusts for which the institutional investor that has entrusted the funds retains full discretionary rights over the management of the entrusted assets. In some cases, funds entrusted to Chuo Mitsui Asset in a specified money trust are invested by an investment advisor pursuant to the specific instructions contained in an investment advisory agreement. Because specified money trusts are nondiscretionary, Chuo Mitsui Asset’s role is limited to the custody of trust assets, execution of trade orders, record-keeping and similar administrative functions. |
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• | rules of compliance, which set forth a basic policy on business ethics and provide guidelines governing the conduct of employees; | |
• | rules for compliance management, which set forth compliance criteria; | |
• | a compliance manual that serves as a detailed handbook; | |
• | a set of fundamental group policies relating to customer support activities; and | |
• | an annual compliance program to enhance groupwide compliance practices. |
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Voting interest | ||||||||||||
directly and | ||||||||||||
Paid-in | indirectly owned | |||||||||||
Name | Country | Main business | capital | by CMTH | ||||||||
(thousands) | ||||||||||||
Consolidated subsidiaries: | ||||||||||||
The Chuo Mitsui Trust and Banking Company, Limited | Japan | Trust and banking | ¥ | 399,697,000 | 100.0 | % | ||||||
Chuo Mitsui Asset Trust & Banking Company, Limited | Japan | Trust and banking | ¥ | 11,000,000 | 100.0 | % | ||||||
Chuo Mitsui Asset Management Company, Limited | Japan | Investment advisory and investment trust services | ¥ | 300,000 | 100.0 | % | ||||||
Chuo Mitsui Capital Company Limited | Japan | Venture capital | ¥ | 1,247,034 | 100.0 | % | ||||||
Chuo Mitsui Guarantee Co., Ltd. | Japan | Credit guarantee services | ¥ | 301,250 | 86.9 | % | ||||||
Chuo Mitsui Card Co., Ltd. | Japan | Credit card services | ¥ | 300,000 | 93.9 | % | ||||||
Chuo Mitsui Realty Co., Ltd. | Japan | Real estate brokerage | ¥ | 300,000 | 55.0 | % | ||||||
Chuo Mitsui Trust International, Ltd. | United Kingdom | Securities services | £20,000 | 100.0 | % | |||||||
Chuo Mitsui Information Technology Co., Ltd. | Japan | Computer-related services | ¥ | 200,000 | 100.0 | % | ||||||
CMTB Equity Investments Co., Ltd. | Japan | Investment, management and administration of stocks | ¥ | 100,000 | 100.0 | % | ||||||
Chuo Mitsui Finance Service Co., Ltd. | Japan | Finance | ¥ | 3,150,000 | 100.0 | % | ||||||
Tokyo Securities Transfer Agent Co., Ltd. | Japan | Stock transfer agency services | ¥ | 50,000 | 100.0 | % | ||||||
Chuo Mitsui Trust Realty Company, Limited | Japan | Investment, management | ¥ | 300,000 | 100.0 | % |
As of | |||||
March 31, 2010 | |||||
(Millions of yen) | |||||
Land | ¥ | 85,791 | |||
Buildings | 47,710 | ||||
Equipment and others | 8,005 | ||||
Construction in progress | 201 | ||||
Total | ¥ | 141,707 | |||
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• | Sumishin Card Company, Limited, or Sumishin Card Company; | |
• | Sumishin Guaranty Company Limited; and | |
• | STB Wealth Partners Co., Limited, or STB Wealth. |
• | Sumishin Panasonic; | |
• | Sumishin Real Estate Loan & Finance, Ltd.; and | |
• | Japan TA Solution, Ltd., or Japan TA. |
• | Sumishin Realty Company, Limited; | |
• | STB Research; and | |
• | STB Real Estate Investment Management Co., Ltd., or STB Real Estate. |
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• | JPOS; | |
• | JTSB; | |
• | STB Asset; | |
• | NAM; | |
• | Sumitomo Trust and Banking Co. (U.S.A.); and | |
• | Sumitomo Trust and Banking (Luxembourg) S.A. |
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Note: | Statutory auditors are appointed pursuant to the Companies Act to monitor the performance of directors, and are different from the public accounting firm acting as the independent external auditor. |
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(1) | Business processing risk managed by Operations Process Planning Department and Personnel Department. |
(2) | Information security risk managed by IT & Business Process Planning Department. |
(3) | Compliance risk managed by Legal and Compliance Department. |
(4) | Human resource risk managed by Personnel Department. |
(5) | Event risk managed by Corporate Administration Department. |
(6) | Reputational risk managed by Corporate Risk Management Department. |
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• | conducts a self-risk assessment; | |
• | identifies operational risks in each operation in the form of scenarios; | |
• | estimates the amount and frequency of losses that may arise in each scenario (a situation that could have an impact on the management of STB); and | |
• | evaluates the extent of the impact. |
(As of September 30, 2010, except as noted below) | ||||||
STB Group | ||||||
Ownership (Group | ||||||
Country of | Companies’ | |||||
Name | Incorporation | Ownership) | Main Business | |||
The Sumishin Shinko Company Limited | Japan | 100% | Building Management | |||
Sumishin Guaranty Company Limited | Japan | 100% | Loan Guaranty | |||
The Sumitomo Trust Finance (H.K.) Limited | Hong Kong | 100% | Finance | |||
First Credit Corporation(1) | Japan | 100% | Loan | |||
Sumitomo Trust and Banking (Luxembourg) S.A. | Luxembourg | 100% | Trust, Finance and Securities | |||
STB Wealth Partners Co., Limited | Japan | 100% | Consulting | |||
Sumishin Real Estate Loan & Finance, Ltd.(1) | Japan | 100% | Loan | |||
Sumishin Business Service Company, Limited | Japan | 100% | Back-office Support and Temporary Staffing | |||
STB Finance Cayman Limited | Cayman | 100% | Finance | |||
Sumitomo Trust and Banking Co. (U.S.A.) | U.S.A. | 100% | Finance and Trust | |||
STB Consulting (China) Co., Ltd. | China | 100% | Consulting | |||
STB Real Estate Investment Management Co., Ltd. | Japan | 100% | Investment Advisory and Investment Management | |||
STB Preferred Capital 2 (Cayman) Limited | Cayman | 100% | Finance | |||
STB Business Partners Co., Ltd. | Japan | 100% (15%) | Human Resources related Service | |||
STB Preferred Capital 3 (Cayman) Limited | Cayman | 100% | Finance | |||
STB Preferred Capital 4 (Cayman) Limited | Cayman | 100% | Finance | |||
STB Preferred Capital 5 (Cayman) Limited | Cayman | 100% | Finance |
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(As of September 30, 2010, except as noted below) | ||||||
STB Group | ||||||
Ownership (Group | ||||||
Country of | Companies’ | |||||
Name | Incorporation | Ownership) | Main Business | |||
Nikko Asset Management Co., Ltd. | Japan | 98.59% | Investment Management and Investment Advisory | |||
Japan TA Solution, Ltd. | Japan | 80% | Information Processing and Computing | |||
STB Omega Investment Limited | Cayman | 75% | Finance | |||
Sumishin Panasonic Financial Services Co., Ltd. | Japan | 84.90% | Lease, Installment Sales Broker, Credit Card | |||
Sumishin Card Company, Limited | Japan | 95% (45%) | Credit Card | |||
STB Investment Corporation | Japan | 100% (60%) | Venture Capital | |||
Sumishin Information Service Company Limited | Japan | 100% (65%) | Information Processing and Computing | |||
STB Asset Management Co., Ltd. | Japan | 100% (70%) | Investment Management and Investment Advisory | |||
STB Research Institute Co., Ltd. | Japan | 100% (70.16%) | Research, Consulting and Investment Advisory | |||
Sumishin Realty Company, Limited | Japan | 100% (95%) | Real Estate Broker | |||
SBI Sumishin Net Bank, Ltd.(2) | Japan | 50% | Banking | |||
Japan Pension Operation Service, Ltd.(2) | Japan | 50% | Calculation of Pension Benefit | |||
BUSINEXT CORPORATION(2) | Japan | 40% | Loan | |||
Sumishin Life Card Company, Limited(2) | Japan | 40% | Credit Card | |||
Top REIT Asset Management Co., Ltd.(2) | Japan | 38% | Investment Institution Asset Management | |||
HR One Corporation(2) | Japan | 35.90% | Human Resources related Service | |||
Japan Trustee Services Bank, Ltd.(2) | Japan | 33.33% | Trust and Banking | |||
Fresco Asset Funding Corporation | Cayman | 0% | Finance | |||
Crecer Asset Funding Corporation | Cayman | 0% | Finance | |||
Nanjin Trust & Investment Corporation | China | 19.99% | Collection of Claim, Liquidation |
(1) | On September 30, 2010, First Credit Corporation transferred its small andmedium-sized realestate-secured loan business and other businesses to Life Housing, and Life Housing changed its trade name to Sumishin Real Estate Loan & Finance. After the business transfer, the dissolution of First Credit Corporation was approved at its shareholder’s meeting. |
(2) | This company is accounted for by the equity method. |
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As of March 31, 2010 | ||||
(Billions of yen) | ||||
Land and Buildings | ¥ | 110 | ||
Equipment and others | 41 | |||
Total | ¥ | 151 | ||
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• | 185 ordinary banks, of which there are 5 city banks, 106 regional banks (of which there were 63 regional banks which were members of Regional Banks Association of Japan as of May 2010, 42 regional banks which were members of the Second Association of Regional Banks as of March 2010, and one other regional bank), 58 foreign banks with operations in Japan as of October 2010 and 16 other banks, including internet banks and specialty banks; and | |
• | 18 trust banks. |
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• | Establishment of a trust bank subsidiary. A subsidiary established by a financial institution is permitted to engage in trust banking activities. To establish a trust bank subsidiary, a financial institution must obtain authorization from the FSA Commissioner to establish a bank subsidiary under the Banking Act and to permit the newly established bank subsidiary to engage in trust banking activities under the Concurrent Operations Law. | |
• | Direct engagement in the trust banking business by the financial institution itself. Since 2002, banks and other financial institutions and the Norinchukin Bank (the central bank for agricultural, forestry and fishery cooperatives) have been permitted to engage directly in trust banking activities, subject to prior authorization by the Commissioner of the FSA under the Concurrent Operations Law. | |
• | Agency business. Financial institutions may engage in certain trust banking activities as a trust agency of trust banks. Prior to an amendment to the Trust Business Law that became effective in 2004, trust banks could not appoint a trust agency to undertake trust banking activities without first obtaining authorization from the Commissioner of the FSA. Following the amendment to the Trust Business Law, financial institutions that register with the Commissioner of the FSA may execute on behalf of trust banks as a trust agency. |
• | real estate brokerage; and | |
• | certain real estate trusts for the purpose of disposing of real estate. |
• | abolition of limitations on the kinds of assets that may be entrusted; and | |
• | relaxation of requirements applicable to entities authorized to engage in certain trust activities. |
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• | The amount (up to a maximum of 0.6% of credit risk-weighted assets) by which eligible reserves for credit losses exceed expected losses in the IRB Approach, and general reserves for credit losses, subject to a limit of 1.25% of modified risk-weighted assets determined by the partial use of the standardized approach, or SA (including a phased rollout of the IRB Approach); | |
• | 45% of the unrealized gains on investment securities classified as securities available for sale under Japanese GAAP; | |
• | 45% of land revaluation excess; | |
• | the balance of perpetual subordinated debt; and | |
• | the balance of subordinated term debt with an original maturity of over five years and preferred stock with a maturity up to 50% of Tier I capital. |
• | the risks pertaining to interest rate-related instruments and equities in the trading book; and | |
• | foreign exchange risk and commodities risk throughout the bank. |
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• | raising the quality, consistency and transparency of the capital base through methods such as raising the quality of the Tier I capital base and harmonizing other elements of the capital structure; | |
• | strengthening the risk coverage of the capital framework; | |
• | introducing a leverage ratio as a supplementary measure to the Basel II risk-based framework with a view to migrating to a minimum capital requirements treatment based on appropriate review and calibration; | |
• | introducing a series of measures to promote thebuild-up of capital buffers in good times that can be drawn upon in periods of stress; and | |
• | introducing a global minimum liquidity standard for internationally active banks that includes a30-day liquidity coverage ratio requirement underpinned by a longer-term structural liquidity ratio. |
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• | Revisions to the proposal on Tier I capital requirements. The amended proposal would allow financial institutions limited recognition of mortgage servicing rights, deferred tax assets and significant investments in the common shares of unconsolidated financial institutions when calculating the common equity component of Tier I capital. | |
• | The introduction of a minimum Tier I Leverage Ratio of 3%, subject to a “parallel run” period from 2013 to 2017, with the goal of issuing a final effective calibration of the leverage ratio in 2018. | |
• | A consultative paper outlining the creation of a countercyclical capital buffer that would impose an add-on buffer to Tier I capital requirements during times of excessive credit growth. The proposal would require financial institutions to meet the additional requirement within 12 months of the announcement of buffer add-on decisions, or be restricted from paying distributions on earnings. Regulators would impose the additional buffer during periods in which the ratio of private sector credit to GDP deviates significantly from the historical trend. |
• | The minimum common equity requirement will be increased from 2% to 4.5%. | |
• | Banks will be required to hold a capital conservation buffer of 2.5% to withstand future periods of stress bringing the total common equity requirements to 7%. | |
• | The minimum Tier 1 capital requirement will be increased from 4% to 6%. | |
• | A countercyclical buffer within a range of 0% to 2.5% of common equity or other fully loss absorbing capital will be implemented according to national circumstances. | |
• | The minimum total capital requirement will remain at 8%, but will be increased to 10.5% with the above capital conservation buffer. | |
• | The above mentioned new capital requirements will be phased in between January 1, 2013 and January 1, 2019. |
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• | the targeted ratio of banking profit to shareholders’ equity, or the targeted net income of the bank in the rationalization plan, and the actual result differ by 30% or more and the creditability of the bank in the market is deteriorating; or | |
• | the targeted ratio of banking profit to shareholders’ equity, or the targeted net income of the bank in the rationalization plan, and the actual result differ by 70% or more. |
• | whether the disposal will be profitable and advantageous (in the case of preferred stock, the disposal will be deemed profitable when the market price of the common stock is approximately 150% or more of the conversion price of the preferred stock for about 30 consecutive trading days); |
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• | whether the disposal will adversely affect the market due to the method or size of repayment or will otherwise impair the financial system; and | |
• | whether the disposal will impair the bank’s or bank holding company’s business soundness. |
• | under the Trust Law, assets accepted in trust by a trust bank must be segregated in the accounts of such trust bank from its other assets. Accordingly, trust banks maintain two sets of records, the “banking account,” which gives details of its banking business, and the “trust account” which gives details of its trust business; | |
• | a trust bank’s published audited financial statements reflect its banking account only; and | |
• | trust account assets are not available to depositors or other creditors of a trust bank, including long-term lenders. |
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• | normal borrowers; | |
• | caution borrowers; | |
• | possible bankruptcy borrowers; | |
• | virtual bankruptcy borrowers; and | |
• | legal bankruptcy borrowers. |
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• | A Financial Reorganization Administrator will be appointed by the FSA Commissioner and will take control of the management and assets of the failed financial institution. An administrator is expected to efficiently search for a financial institution that will succeed the business of such failed institution. | |
• | In the case where no successor financial institution can be immediately found, a “bridge bank” will be established by the DIC for the purpose of the temporary maintenance and continuation of the failed financial institution’s operations, and the bridge bank will seek to transfer the failed financial institution’s assets to another financial institution or dissolve the failed financial institution. |
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• | In order to facilitate or encourage a financial institution to succeed a failed business, the DIC may provide financial aid to enhance the successor financial institution’s capital after succession or to indemnify any loss incurred by such succession. |
• | The DIC may subscribe to the shares or other instruments issued by the relevant financial institution and require such institution to submit to the DIC a plan to regain sound management. | |
• | If such financial institution fails, financial aid exceeding the cost for pay-off may be available to such institution. | |
• | In the case where the failed institution is a bank and the problem above cannot be avoided by the measure mentioned in the second bullet above, the DIC may acquire all of the shares of such bank. |
• | the amount of equity securities owned by the bank and its consolidated subsidiaries; and | |
• | the product of the amount of equity securities owned by the bank’s nonconsolidated subsidiaries, multiplied by the bank’s minority interests in the nonconsolidated subsidiaries’ profits and losses calculated according to the equity method, divided by the total amount of those profits and losses. |
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• | for one year after the merger or transfer of the entire business of a financial institution the maximum amount to be covered by the deposit insurance will be ¥10 million multiplied by the number of parties to the merger or business transfer; and | |
• | a financial institution will be entitled to enjoy the benefit of certain simplified procedures for the forms of reorganization. |
• | the development of comprehensive and cross-sectoral regulations covering a wide range of financial instruments; | |
• | the enhancement of corporate disclosure, requiring listed companies to file quarterly reports, audited internal control reports assessing the effectiveness of internal control structures for financial reporting, and confirmation of the content of annual reports; |
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• | the expansion of the duties of financial institutions to provide customers with detailed disclosure regarding the financial products that they offer and other measures to protect investors; and | |
• | the easing of regulations through flexible application depending on the type of investor (professional or general public). |
• | the creation of a securities market in which only qualified investors can participate; | |
• | the revamp of firewall regulations between banks, securities companies and insurance companies; | |
• | the development of a system to manage conflicts of interest between banks, securities companies and insurance companies; and | |
• | the expansion of business services that banks and certain other entities can provide (for example, banks and certain other entities will be allowed to conduct investment advisory business and execute emissions trading). The amendments became effective on December 12, 2008 and on June 1, 2009. |
• | underwrite and deal in JGBs, Japanese local government bonds, Japanese government guaranteed bonds, commercial paper and certain bonds issued by special purpose companies; | |
• | sell beneficiary certificates of investment trusts and securities issued by an investment company; and | |
• | engage in listed orover-the-counter, or OTC, securities derivatives transactions, as well as in the securities intermediary business, each subject to registration with the FSA. |
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• | revisions which took effect in November 2008 to capital adequacy guidelines and the bank inspection manual whereby the FSA allows banks to more easily alter the terms of loans to SMEs without having to categorize those loans as “restructuring loans” on the banks’ books; | |
• | revisions to the capital adequacy guidelines that took effect in December 2008 under which banks with overseas branches or bank subsidiaries may opt not to deduct the approximately 60% of unrealized losses on yen-denominated JGBs and certain other securities with no credit risks that would normally reduce Tier I capital and to exclude the 45% of the unrealized gains on those securities normally included in Tier II capital and banks without overseas branches or bank subsidiaries shall not deduct the approximately 60% of unrealized losses on securities that would normally reduce Tier I capital (this measure is applied to CMTH now); and | |
• | revisions to the capital adequacy guidelines, which took effect in December 2008, that permit banks to reduce the risk weight of loans to SMEs in certain circumstances, and further measures introduced in March 2009 to facilitate loans to SMEs by reducing the risk weight of loans fully guaranteed by credit guarantee corporations, with government-backed guarantees, under the emergency guarantee system. |
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• | trust asset management, trust asset administration, and pension management businesses of Chuo Mitsui Asset; |
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• | sales of investment trusts and annuity and other insurance products to individual clients by Chuo Mitsui; | |
• | real estate brokerage and other real estate related businesses offered by Chuo Mitsui; | |
• | stock transfer agency services provided by Chuo Mitsui; | |
• | other services and products offered by Chuo Mitsui including testamentary services offered to individual clients as well as a variety of services provided to corporate clients such as corporate advisory services, securitization-related services, corporate bond administration services, and business matching services; and | |
• | services and products offered by other subsidiaries. |
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Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||
Financial assets held for trading other than derivatives | ¥ | 50 | ¥ | 11,957 | ¥ | – | ¥ | 12,007 | ||||||||||||
Derivative financial assets | 39 | 202,543 | 824 | 203,406 | ||||||||||||||||
Financial assets designated at fair value through profit or loss | 7,480 | 19,116 | 97,812 | 124,408 | ||||||||||||||||
Investment securities | ||||||||||||||||||||
Equity securities | 575,692 | 47,077 | 127,704 | 750,473 | ||||||||||||||||
Debt securities | 416,907 | 402,766 | 206,744 | 1,026,417 | ||||||||||||||||
Assets pledged as collateral | 1,465,909 | 250,136 | – | 1,716,045 | ||||||||||||||||
Other financial assets | – | – | 53,286 | 53,286 | ||||||||||||||||
Total financial assets | ¥ | 2,466,077 | ¥ | 933,595 | ¥ | 486,370 | ¥ | 3,886,042 | ||||||||||||
Derivative financial liabilities | – | 190,159 | 1,804 | 191,963 | ||||||||||||||||
Financial liabilities designated at fair value through profit or loss | 2,080 | – | – | 2,080 | ||||||||||||||||
Total financial liabilities | ¥ | 2,080 | ¥ | 190,159 | ¥ | 1,804 | ¥ | 194,043 | ||||||||||||
At March 31, 2009 | ||||||||||||||||||||
Financial assets held for trading other than derivatives | 117 | 26,126 | – | 26,243 | ||||||||||||||||
Derivative financial assets | 32 | 231,691 | 655 | 232,378 | ||||||||||||||||
Financial assets designated at fair value through profit or loss | 7,869 | 23,041 | 98,832 | 129,742 | ||||||||||||||||
Investment securities | ||||||||||||||||||||
Equity securities | 469,598 | 44,480 | 105,991 | 620,069 | ||||||||||||||||
Debt securities | 1,149,570 | 416,627 | 182,205 | 1,748,402 | ||||||||||||||||
Assets pledged as collateral | 892,301 | 398,215 | – | 1,290,516 | ||||||||||||||||
Other financial assets | – | – | 53,012 | 53,012 | ||||||||||||||||
Total financial assets | ¥ | 2,519,487 | ¥ | 1,140,180 | ¥ | 440,695 | ¥ | 4,100,362 | ||||||||||||
Derivative financial liabilities | 8 | 225,914 | 14,152 | 240,074 | ||||||||||||||||
Financial liabilities designated at fair value through profit or loss | 2,818 | – | – | 2,818 | ||||||||||||||||
Total financial liabilities | ¥ | 2,826 | ¥ | 225,914 | ¥ | 14,152 | ¥ | 242,892 | ||||||||||||
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Financial | ||||||||||||||||||||||||||||||||
assets | ||||||||||||||||||||||||||||||||
designated | ||||||||||||||||||||||||||||||||
at fair value | Investment | Investment | ||||||||||||||||||||||||||||||
Derivative | through | securities - | securities - | Other | Derivative | |||||||||||||||||||||||||||
financial | profit or | equity | debt | financial | financial | Total | ||||||||||||||||||||||||||
assets | loss | securities | securities | assets | Total assets | liabilities | liabilities | |||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||
Balance at March 31, 2009 | ¥ | 655 | ¥ | 98,832 | ¥ | 105,991 | ¥ | 182,205 | ¥ | 53,012 | ¥ | 440,695 | ¥ | 14,152 | ¥ | 14,152 | ||||||||||||||||
Total gains and losses | ||||||||||||||||||||||||||||||||
Profit or loss | 824 | (3,352) | (727) | (7) | – | (3,262) | (12,044) | (12,044) | ||||||||||||||||||||||||
Other comprehensive income | – | – | 23,963 | 12,572 | 274 | 36,809 | – | – | ||||||||||||||||||||||||
Purchases | – | 3,130 | 540 | 44,203 | – | 47,873 | – | – | ||||||||||||||||||||||||
Settlements | (655) | (798) | (2,063) | (32,229) | – | (35,745) | (304) | (304) | ||||||||||||||||||||||||
Balance at March 31, 2010 | ¥ | 824 | ¥ | 97,812 | ¥ | 127,704 | ¥ | 206,744 | ¥ | 53,286 | ¥ | 486,370 | ¥ | 1,804 | ¥ | 1,804 | ||||||||||||||||
Increase in fair | Decrease in fair | |||||||
value | value | |||||||
(Millions of yen) | ||||||||
Unlisted equity securities | ¥ | 17,515 | ¥ | 17,502 | ||||
Corporate bonds | 2,422 | 2,323 | ||||||
Other | 2,599 | 2,593 |
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Applicable for financial | ||||
Standard/interpretation | Content | years beginning on/after | ||
IFRS 3 (as revised in 2008) | Business combinations | July 1, 2009 | ||
IAS 27 (as revised in 2008) | Consolidated and separate financial statements | July 1, 2009 | ||
IFRS 9 | Financial instruments part 1: Classification and measurement- Financial assets | January 1, 2013 |
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For the fiscal year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Interest income | ¥ | 203,705 | ¥ | 232,826 | ||||||
Interest expenses | 72,814 | 104,597 | ||||||||
Net interest income | 130,891 | 128,229 | ||||||||
Fee and commission income | 112,875 | 126,486 | ||||||||
Fee and commission expenses | 21,061 | 15,351 | ||||||||
Net fee and commission income | 91,814 | 111,135 | ||||||||
Net gains (losses) on financial instruments classified as held for trading | 13,868 | (39,784 | ) | |||||||
Net losses on financial instruments designated at fair value through profit or loss | (803 | ) | (40,616 | ) | ||||||
Net investment income | 46,997 | 50,891 | ||||||||
Other operating income | 12,383 | 10,151 | ||||||||
Operating income | 295,150 | 220,006 | ||||||||
General and administration expenses | 129,819 | 131,961 | ||||||||
Impairment charges | 19,813 | 163,696 | ||||||||
Other operating expenses | 19,459 | 19,393 | ||||||||
Operating expenses | 169,091 | 315,050 | ||||||||
Share of profit (loss) in associates and joint ventures | (509 | ) | 1,138 | |||||||
Operating profit (loss) before tax | 125,550 | (93,906 | ) | |||||||
Income tax expenses | 21,446 | 50,643 | ||||||||
Profit (loss) for the year | ¥ | 104,104 | ¥ | (144,549 | ) | |||||
Profit (loss) attributable to: | ||||||||||
Owners of the parent | ¥ | 97,354 | ¥ | (149,002 | ) | |||||
Non-controlling interests | 6,750 | 4,453 |
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For the fiscal year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Interest income | ||||||||||
Loans and advances | ¥ | 155,579 | ¥ | 168,845 | ||||||
Cash and deposit with banks | 203 | 341 | ||||||||
Call loans | 183 | 1,003 | ||||||||
Investment securities - debt securities | 47,271 | 61,467 | ||||||||
Other | 469 | 1,170 | ||||||||
Total interest income | ¥ | 203,705 | ¥ | 232,826 | ||||||
Interest expenses | ||||||||||
Deposits | ¥ | 46,392 | ¥ | 51,462 | ||||||
Cash collateral on securities lent and repurchase agreements | 3,484 | 19,516 | ||||||||
Due to investors of trust accounts | 9,196 | 13,090 | ||||||||
Debt securities issued | 8,171 | 9,952 | ||||||||
Borrowings | 4,069 | 5,937 | ||||||||
Other | 1,502 | 4,640 | ||||||||
Total interest expenses | 72,814 | 104,597 | ||||||||
Net interest income | ¥ | 130,891 | ¥ | 128,229 | ||||||
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For the fiscal year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Fee and commission income | ||||||||||
Trust and asset management fees | ¥ | 51,758 | ¥ | 54,769 | ||||||
Investment trust sales fees | 12,178 | 10,524 | ||||||||
Insurance product sales fees | 7,054 | 11,187 | ||||||||
Real estate brokerage fees | 9,308 | 12,417 | ||||||||
Stock transfer agency fees | 22,696 | 27,785 | ||||||||
Other fees | 9,881 | 9,804 | ||||||||
Total fee and commission income | ¥ | 112,875 | ¥ | 126,486 | ||||||
Fee and commission expenses | 21,061 | 15,351 | ||||||||
Net fee and commission income | ¥ | 91,814 | ¥ | 111,135 | ||||||
• | trust and asset management fees, which are generated from trust asset management, trust asset administration, and pension management businesses of Chuo Mitsui Asset, other trust product businesses of Chuo Mitsui and Chuo Mitsui Asset, and asset management business of Chuo Mitsui Asset Management and Chuo Mitsui Capital; | |
• | investment trust sales fees which come from sales of investment trusts to individual clients by Chuo Mitsui; | |
• | insurance product sales fees which come from sales of annuity and other insurance products to individual clients by Chuo Mitsui; | |
• | real estate brokerage fees which come from real estate brokerage services offered by Chuo Mitsui and a certain subsidiary; | |
• | stock transfer agency fees which come from stock transfer agency services provided by Chuo Mitsui and a certain subsidiary; and | |
• | other fees including fees on testamentary services offered to individual clients by Chuo Mitsui, fees on a variety of services provided to corporate clients by Chuo Mitsui such as corporate advisory services, securitization-related services, corporate bond administration services, and business matching services as well as other fees gained by other subsidiaries. |
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For the fiscal year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Debt securities | ¥ | (918 | ) | ¥ | (1,037 | ) | ||||
Derivatives | ||||||||||
Interest rate contracts | 9,802 | 26 | ||||||||
Foreign currency contracts | (238 | ) | (1,166 | ) | ||||||
Stock contracts | (517 | ) | (18,458 | ) | ||||||
Bond contracts | (8,247 | ) | (4,788 | ) | ||||||
Credit contracts | 13,986 | (14,361 | ) | |||||||
Total | ¥ | 13,868 | ¥ | (39,784 | ) | |||||
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For the fiscal year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Debt securities | ¥ | (7,939 | ) | ¥ | 661 | |||||
Equity securities | 7,136 | (41,277 | ) | |||||||
Total | ¥ | (803 | ) | ¥ | (40,616 | ) | ||||
For the fiscal year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Financial assets classified asavailable-for-sale | ||||||||||
Net gains on sales and redemption of debt securities | ¥ | 20,208 | ¥ | 17,319 | ||||||
Net gains on sales of equity securities | 17,897 | 12,199 | ||||||||
Dividends | 7,819 | 19,067 | ||||||||
Subtotal | 45,924 | 48,585 | ||||||||
Gains on foreign exchange | 992 | 2,247 | ||||||||
Other | 81 | 59 | ||||||||
Total | ¥ | 46,997 | ¥ | 50,891 | ||||||
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For the fiscal year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Gain on disposal of property and equipment | ¥ | 277 | ¥ | 267 | ||||||
Gain on redemption of subordinated bonds | 1,860 | – | ||||||||
Gain on redemption of Class III preferred shares | – | 1,621 | ||||||||
Dividends on miscellaneous contributions | 2,262 | 1,940 | ||||||||
Other | 7,984 | 6,323 | ||||||||
Total | ¥ | 12,383 | ¥ | 10,151 | ||||||
For the fiscal year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Personnel expenses | ¥ | 70,787 | ¥ | 61,452 | ||||||
Operating and administrative expenses | 46,780 | 55,757 | ||||||||
Depreciation and amortization | 12,252 | 14,752 | ||||||||
Total | ¥ | 129,819 | ¥ | 131,961 | ||||||
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For the fiscal year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Investment securities – equity securities | ||||||||||
Financial assets classified asavailable-for-sale | ¥ | 8,912 | ¥ | 114,108 | ||||||
Investment securities – debt securities | ||||||||||
Financial assets classified asavailable-for-sale | 7 | 4 | ||||||||
Financial assets classified as loans and receivables | – | 2,824 | ||||||||
Loans and advances | ||||||||||
Financial assets classified as loans and receivables | 11,126 | 46,386 | ||||||||
Other assets | ||||||||||
Financial assets classified as loans and receivables | (232 | ) | 374 | |||||||
Total | ¥ | 19,813 | ¥ | 163,696 | ||||||
For the year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Loss on disposal of property and equipment | ¥ | 503 | ¥ | 1,974 | ||||||
Expenses for system development | 3,804 | 4,594 | ||||||||
Professional service fee | 6,728 | 5,702 | ||||||||
Expenses for integration | 525 | – | ||||||||
Other expenses | 7,899 | 7,123 | ||||||||
Total other operating expenses | ¥ | 19,459 | ¥ | 19,393 | ||||||
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For the fiscal year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Profit (loss) for the year | ¥ | 104,104 | ¥ | (144,549 | ) | |||||
Other comprehensive income (loss) | ||||||||||
Net (loss) / gains onavailable-for-sale financial assets | 165,480 | (221,869 | ) | |||||||
Net loss on cash flow hedges | (103 | ) | (52 | ) | ||||||
Exchange differences on translations of foreign operations | 491 | (1,979 | ) | |||||||
Share of other comprehensive loss of associates and joint ventures | (1 | ) | (2 | ) | ||||||
Income tax (expense)/ benefit relating to components of other comprehensive income | (68,067 | ) | 88,953 | |||||||
Other comprehensive income (loss) for the year, net of tax | 97,800 | (134,949 | ) | |||||||
Total comprehensive income (loss) for the year | ¥ | 201,904 | ¥ | (279,498 | ) | |||||
Total comprehensive income (loss) attributable to: | ||||||||||
Owners of the parent | 194,989 | (284,302 | ) | |||||||
Non-controlling interests | 6,915 | 4,804 | ||||||||
Total | ¥ | 201,904 | ¥ | (279,498 | ) | |||||
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For the fiscal year ended March 31, 2010 | ||||||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||||||
Management | ||||||||||||||||||||||||||||||
Chuo Mitsui | Chuo Mitsui Asset | Subsidiaries | Other | Eliminations | Total | |||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||
External customers | ¥ | 297,999 | ¥ | 41,193 | ¥ | 10,353 | ¥ | 15,971 | ¥ | — | ¥ | 365,516 | ||||||||||||||||||
Inter-segment | 8,262 | 2,895 | (44 | ) | 30,396 | (41,509 | ) | — | ||||||||||||||||||||||
Total | ¥ | 306,261 | ¥ | 44,088 | ¥ | 10,309 | ¥ | 46,367 | ¥ | (41,509 | ) | ¥ | 365,516 | |||||||||||||||||
Profit/(loss) before tax | ¥ | 74,647 | ¥ | 13,094 | ¥ | 407 | ¥ | 10,569 | ¥ | (13,918 | ) | ¥ | 84,799 | |||||||||||||||||
For the fiscal year ended March 31, 2009 | ||||||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||||||
Management | ||||||||||||||||||||||||||||||
Chuo Mitsui | Chuo Mitsui Asset | Subsidiaries | Other | Eliminations | Total | |||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||
External customers | ¥ | 335,745 | ¥ | 44,174 | ¥ | 12,552 | ¥ | 20,573 | ¥ | — | ¥ | 413,044 | ||||||||||||||||||
Inter-segment | 7,698 | 3,468 | 1 | 44,446 | (55,613 | ) | — | |||||||||||||||||||||||
Total | ¥ | 343,443 | ¥ | 47,642 | ¥ | 12,553 | ¥ | 65,019 | ¥ | (55,613 | ) | ¥ | 413,044 | |||||||||||||||||
Profit/(loss) before tax | ¥ | (123,482 | ) | ¥ | 17,467 | ¥ | 1,301 | ¥ | 4,723 | ¥ | (9,688 | ) | ¥ | (109,679 | ) | |||||||||||||||
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For the year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Revenue from domestic operations | ¥ | 308,153 | ¥ | 349,463 | ||||||
Revenue from foreign operations | 57,363 | 63,581 | ||||||||
Total | ¥ | 365,516 | ¥ | 413,044 | ||||||
At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Assets | ||||||||||
Cash and deposits with banks | ¥ | 268,450 | ¥ | 239,871 | ||||||
Call loans | 10,875 | 23,765 | ||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | 8,812 | ||||||||
Financial assets held for trading other than derivatives | 12,007 | 26,243 | ||||||||
Derivative financial assets | 203,406 | 232,378 | ||||||||
Financial assets designated at fair value through profit or loss | 124,408 | 129,742 | ||||||||
Investment securities | 2,503,695 | 3,319,574 | ||||||||
Loans and advances | 9,710,846 | 9,831,088 | ||||||||
Assets pledged as collateral | 1,721,353 | 1,290,516 | ||||||||
Investment in associates and joint ventures | 21,990 | 22,643 | ||||||||
Property and equipment | 141,707 | 143,815 | ||||||||
Intangible assets | 68,464 | 63,511 | ||||||||
Current income tax assets | 3,401 | 5,937 | ||||||||
Deferred income tax assets | 186,178 | 259,758 | ||||||||
Other assets | 340,278 | 267,338 | ||||||||
Total assets | ¥ | 15,318,579 | ¥ | 15,864,991 | ||||||
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At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Individual | ||||||||||
Gross individual total | ¥ | 3,953,540 | ¥ | 3,741,608 | ||||||
Less: Impairment allowance | 14,432 | 14,744 | ||||||||
Loans and advances to individual | 3,939,108 | 3,726,864 | ||||||||
Corporate | ||||||||||
Gross corporate total | 5,817,596 | 6,152,991 | ||||||||
Less: Impairment allowance | 45,858 | 48,767 | ||||||||
Loans and advances to corporate | 5,771,738 | 6,104,224 | ||||||||
Total loans and advances | ¥ | 9,710,846 | ¥ | 9,831,088 | ||||||
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For the fiscal year ended March 31, | ||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||
Individual | Individual | |||||||||||||||||||
allowances for | Collective allowance | allowances for | Collective allowance | |||||||||||||||||
impairment | for impairment | impairment | for impairment | |||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
Individual | ||||||||||||||||||||
Balance at beginning of year | ¥ | 518 | ¥ | 14,226 | ¥ | 759 | ¥ | 16,163 | ||||||||||||
Increase/(decrease) in provision for impairment losses | 1,098 | (61 | ) | 1,261 | (1,937 | ) | ||||||||||||||
Charge-offs | (2,027 | ) | — | (2,376 | ) | — | ||||||||||||||
Recoveries | 678 | — | 874 | — | ||||||||||||||||
Balance at end of year | 267 | 14,165 | 518 | 14,226 | ||||||||||||||||
Corporate | ||||||||||||||||||||
Balance at beginning of year | 25,323 | 23,444 | 12,595 | 17,404 | ||||||||||||||||
Increase/(decrease) in provision for impairment losses | 11,681 | (1,592 | ) | 41,022 | 6,040 | |||||||||||||||
Charge-offs | (15,697 | ) | — | (30,826 | ) | — | ||||||||||||||
Recoveries | 2,710 | — | 2,536 | — | ||||||||||||||||
Foreign currency translation and other adjustments | (11 | ) | — | (4 | ) | — | ||||||||||||||
Balance at end of year | 24,006 | 21,852 | 25,323 | 23,444 | ||||||||||||||||
Total impairment losses at end of year | ¥ | 24,273 | ¥ | 36,017 | ¥ | 25,841 | ¥ | 37,670 | ||||||||||||
At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Neither past due nor impaired | ¥ | 9,600,004 | ¥ | 9,682,755 | ||||||
Past due but not impaired | 49,750 | 56,203 | ||||||||
Individually impaired | 121,382 | 155,641 | ||||||||
Amount before deducting impairment allowance | 9,771,136 | 9,894,599 | ||||||||
Less: impairment allowance | ||||||||||
Normal | 18,299 | 17,130 | ||||||||
Caution | 9,934 | 10,552 | ||||||||
Close observation or lower | 32,057 | 35,829 | ||||||||
Net | ¥ | 9,710,846 | ¥ | 9,831,088 | ||||||
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At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Equity securities | ||||||||||
Available-for-sale | ¥ | 750,473 | ¥ | 620,069 | ||||||
Total equity securities | 750,473 | 620,069 | ||||||||
Debt securities (including debt securities pledged as collateral) | ||||||||||
Available-for-sale | 2,750,604 | 3,057,506 | ||||||||
Embedded derivatives | (8,142 | ) | (18,588 | ) | ||||||
Held-to-maturity | 399,323 | 596,829 | ||||||||
Loans and receivables | 332,790 | 354,274 | ||||||||
Total debt securities | 3,474,575 | 3,990,021 | ||||||||
Total | ¥ | 4,225,048 | ¥ | 4,610,090 | ||||||
At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Debt securities | ||||||||||
Japanese government bonds | ¥ | 50 | ¥ | 117 | ||||||
Commercial paper | 11,957 | 26,126 | ||||||||
Total | ¥ | 12,007 | ¥ | 26,243 | ||||||
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At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Equity securities | ||||||||||
Listed | ¥ | 7,501 | ¥ | 7,868 | ||||||
Unlisted | 85,108 | 57,432 | ||||||||
Total equity securities | 92,609 | 65,300 | ||||||||
Debt securities | ||||||||||
Corporate bonds | 31,799 | 64,442 | ||||||||
Total debt securities | 31,799 | 64,442 | ||||||||
Total | ¥ | 124,408 | ¥ | 129,742 | ||||||
At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Liabilities | ||||||||||
Deposits | ¥ | 9,064,722 | ¥ | 9,421,346 | ||||||
Call money | 306,161 | 253,478 | ||||||||
Cash collateral on securities lent and repurchase agreements | 1,702,698 | 1,255,648 | ||||||||
Derivative financial liabilities | 191,963 | 240,074 | ||||||||
Financial liabilities designated at fair value through profit or loss | 2,080 | 2,818 | ||||||||
Due to trust accounts | 21,356 | 25,592 | ||||||||
Due to investors of trust accounts | 1,568,220 | 1,891,361 | ||||||||
Debt securities issued | 233,969 | 373,395 | ||||||||
Borrowings | 1,228,505 | 1,704,097 | ||||||||
Current income tax liabilities | 4,625 | 3,032 | ||||||||
Deferred income tax liabilities | 10,899 | 2,975 | ||||||||
Retirement benefit obligations | 5,793 | 5,706 | ||||||||
Other liabilities | 134,340 | 228,922 | ||||||||
Total liabilities | ¥ | 14,475,331 | ¥ | 15,408,444 | ||||||
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At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Deposits from banks | ||||||||||
Current/settlement accounts | ¥ | 924 | ¥ | 1,685 | ||||||
Ordinary accounts | 6,400 | 7,492 | ||||||||
Time deposits | 22,382 | 69,228 | ||||||||
Negotiable certificates of deposit | 51,400 | 267,000 | ||||||||
Other | 17,212 | 160 | ||||||||
Total deposits from banks | ¥ | 98,318 | ¥ | 345,565 | ||||||
Deposits from customers | ||||||||||
Corporate customers | ||||||||||
Current/settlement accounts | ¥ | 112,287 | ¥ | 107,378 | ||||||
Ordinary accounts | 307,727 | 326,670 | ||||||||
Time deposits | 1,241,292 | 1,722,023 | ||||||||
Negotiable certificates of deposit | 275,790 | 275,280 | ||||||||
Deposits at notice | 21,510 | 20,155 | ||||||||
Other | 10,329 | 11,493 | ||||||||
Retail customers | ||||||||||
Current/settlement accounts | 302 | 363 | ||||||||
Ordinary accounts | 830,710 | 796,845 | ||||||||
Time deposits | 6,157,964 | 5,797,356 | ||||||||
Saving accounts | 2,993 | 3,357 | ||||||||
Deposits at notice | 5 | 5 | ||||||||
Other | 5,495 | 14,856 | ||||||||
Total deposits from customers | ¥ | 8,966,404 | ¥ | 9,075,781 | ||||||
Total deposits | ¥ | 9,064,722 | ¥ | 9,421,346 | ||||||
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At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Principal-guaranteed trust accounts | ¥ | 1,216,105 | ¥ | 1,448,727 | ||||||
Securitization trust accounts | 350,602 | 438,167 | ||||||||
Other | 1,513 | 4,467 | ||||||||
Total | ¥ | 1,568,220 | ¥ | 1,891,361 | ||||||
At March 31, | ||||||||||||
Maturity | 2010 | 2009 | ||||||||||
(Millions of yen) | ||||||||||||
Borrowings | 2010-2014 | ¥ | 1,135,922 | ¥ | 1,611,509 | |||||||
Subordinated borrowings | 2010-2018 | 77,583 | 77,588 | |||||||||
Subordinated perpetual borrowings | 15,000 | 15,000 | ||||||||||
Total | ¥ | 1,228,505 | ¥ | 1,704,097 | ||||||||
Average interest rate | ||||||||
At March 31, | ||||||||
2010 | 2009 | |||||||
(Percentages) | ||||||||
Borrowings | 0.12 | % | 0.25 | % | ||||
Subordinated borrowings | 2.43 | 2.55 |
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At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Equity attributable to owner of the parent | ||||||||||
Share capital | ¥ | 261,609 | ¥ | 161,434 | ||||||
Capital surplus | 33,701 | (66,344 | ) | |||||||
Retained earnings | 244,790 | 155,201 | ||||||||
Other reserves | 117,450 | 19,815 | ||||||||
Treasury shares | (271 | ) | (262 | ) | ||||||
Total equity attributable to owner of the parent | ¥ | 657,279 | ¥ | 269,844 | ||||||
Non-controlling interests | 185,969 | 186,703 | ||||||||
Total equity | ¥ | 843,248 | ¥ | 456,547 | ||||||
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For the year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Cash and cash equivalents at the beginning of year | ¥ | 272,448 | ¥ | 560,722 | ||||||
Net cash generated from (used in) operating activities | 56,437 | (690,415 | ) | |||||||
Net cash flows generated from (used in) investing activities | 464,519 | (590,577 | ) | |||||||
Net cash generated from (used in) financing activities | (512,860 | ) | 994,703 | |||||||
Effect of exchange rates on cash and cash equivalents | 302 | (1,985 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 8,398 | (288,274 | ) | |||||||
Cash and cash equivalents at the end of year | 280,846 | 272,448 | ||||||||
Cash and cash equivalents comprise of: | ||||||||||
Cash and deposit with banks | 268,450 | 239,871 | ||||||||
Call loans | 10,875 | 23,765 | ||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | 8,812 | ||||||||
Total | ¥ | 280,846 | ¥ | 272,448 | ||||||
For the fiscal year ended March 31, | ||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Dividend per share | Aggregate amounts | |||||||||||||||
(Yen) | (Millions of yen) | |||||||||||||||
Common stock | ¥ | 5.0 | ¥ | 7.0 | ¥ | 5,786 | ¥ | 6,911 | ||||||||
Class II preferred shares | 14.4 | 14.4 | 1,350 | 1,350 | ||||||||||||
Class III preferred shares | 20.0 | 20.0 | 629 | 2,666 |
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Dividend per | Aggregate | |||||||
share | amounts | |||||||
(Yen) | (Millions of yen) | |||||||
Common stock | ¥ 8.0 | ¥13,264 |
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At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen, except percentages) | ||||||||||
Tier I capital | ||||||||||
Capital stock | ¥ | 261,608 | ¥ | 261,608 | ||||||
Non-cumulative perpetual preferred stock | – | 100,175 | ||||||||
Capital surplus | – | – | ||||||||
Retained earnings | 377,592 | 338,524 | ||||||||
Treasury shares (−) | 270 | 262 | ||||||||
Projected amount of distribution (−) | 13,264 | 7,765 | ||||||||
Foreign currency translation adjustment | (1,738 | ) | (2,045 | ) | ||||||
Minority interest of consolidated subsidiaries | 187,805 | 187,763 | ||||||||
Non-dilutive preferred securities issued by overseas SPCs | 183,500 | 183,500 | ||||||||
Goodwill equivalent amount (−) | 35,304 | 37,755 | ||||||||
Amount equivalent to capital increase due to securitization transactions (−) | 20,401 | 26,681 | ||||||||
Amount equivalent to 50% of exceeding the expected loss amount exceeding the qualifying reserve (−) | 13,602 | 14,370 | ||||||||
Total Tier I capital before deduction of deferred tax assets (total amount of above respective items) | 742,425 | 699,016 | ||||||||
Amount of deferred tax assets deducted | – | 52,412 | ||||||||
Total Tier I capital (A) | 742,425 | 646,603 | ||||||||
Non-dilutive preferred securities with interest ratestep-up provisions (B) | ¥ | 85,000 | ¥ | 85,000 | ||||||
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At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen, except percentages) | ||||||||||
Tier II capital | ||||||||||
General reserve for possible loan losses | 0 | 0 | ||||||||
Amount of qualifying reserve exceeding the expected loss amount | – | – | ||||||||
Liability type fundraising means | 319,250 | 267,070 | ||||||||
Perpetual subordinated bonds | 116,750 | 119,570 | ||||||||
Fixed-term subordinated bonds and fixed-term preferred shares | 202,500 | 147,500 | ||||||||
Amount not includable Tier II capital | – | – | ||||||||
Total Tier II capital (C) | 319,251 | 267,070 | ||||||||
Items for deduction (D) | 23,041 | 21,841 | ||||||||
Capital amount (E) = (A) + (C) − (D) | 1,038,635 | 891,832 | ||||||||
Risk weighted assets, etc. | ||||||||||
Credit risk-weighted asset amount | 7,022,674 | 6,855,889 | ||||||||
On-balance sheet items | 6,371,285 | 6,087,070 | ||||||||
Off-balance sheet items | 651,389 | 768,818 | ||||||||
Amount arrived at by dividing operational risk equivalents by 8% | 503,395 | 541,112 | ||||||||
Total (F) | ¥ | 7,526,070 | ¥ | 7,397,001 | ||||||
Consolidated capital adequacy ratio (domestic standard) = (E)/(F) x 100 | 13.80 | % | 12.05 | % | ||||||
(A)/(F) x 100 | 9.86 | % | 8.74 | % | ||||||
(B)/(A) x 100 | 11.44 | % | 13.14 | % |
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At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Financial guarantees | ¥ | 18,281 | ¥ | 23,857 | ||||||
Loan commitments and other credit-related obligations – individual | 119,982 | 123,568 | ||||||||
Loan commitments and other credit-related obligations – corporate | 732,655 | 658,923 | ||||||||
Commitments to invest in partnerships | 21,149 | 26,883 | ||||||||
Total | ¥ | 892,067 | ¥ | 833,231 | ||||||
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Ending balances | |||||
(Millions of yen) | |||||
Cash collateral on securities lent and repurchase agreements | |||||
At the quarter ended: | |||||
March 31, 2008 | ¥ | 1,821,318 | |||
June 30, 2008 | 2,122,620 | ||||
September 30, 2008 | 1,892,085 | ||||
December 31, 2008 | 1,100,123 | ||||
March 31, 2009 | 1,255,648 | ||||
June 30, 2009 | 1,563,039 | ||||
September 30, 2009 | 1,609,981 | ||||
December 31, 2009 | 1,324,779 | ||||
March 31, 2010 | 1,702,698 |
• | the activities of the SPE are being conducted on behalf of CMTH according to its specific business needs so that CMTH obtains benefits from the SPE’s operation; | |
• | CMTH has the decision-making powers to obtain the majority of the benefits of the activities of the SPE or, by setting up an autopilot mechanism, CMTH has delegated these decision-making powers; | |
• | CMTH has rights to obtain the majority of the benefits of the SPE and, therefore, may be exposed to risks incident to the activities of the SPE; or | |
• | CMTH retains the majority of the residual or ownership risks related to the SPE or its assets in order to obtain benefits from its activities. |
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Payments due by period | |||||||||||||||||||||||||
Less than | More than | ||||||||||||||||||||||||
1 year | 1-3 years | 3-5 years | 5 years | Total | |||||||||||||||||||||
(Millions of yen) | |||||||||||||||||||||||||
Time deposit obligations | ¥ | 3,698,920 | ¥ | 2,509,092 | ¥ | 1,275,478 | ¥ | 70,630 | ¥ | 7,554,120 | |||||||||||||||
Due to investors of trust accounts | 1,296,562 | 123,128 | 91,650 | 79,067 | 1,590,407 | ||||||||||||||||||||
Long-term debt obligations | 7,685 | 69,580 | 94,507 | 143,674 | 315,446 | ||||||||||||||||||||
Long-term borrowing obligations | 6,174 | 23,874 | 70,846 | 5,880 | 106,774 |
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Internal rating | External rating Moody’s | External rating S&P | Borrower Classification | Description of the grade | ||||
A B+ B C+ C C- | Aaa to Aa3 A1 to A3 Baa1 Baa2 to Baa3 Ba1 Ba2 to Ba3 | AAA to AA- A+ to A- BBB+ BBB to BBB- BB+ BB to BB- | Normal | Normal | ||||
D1 D2 | B1 Below B2 | B+ Below B | Caution | Caution | ||||
D3 E F | N/A N/A N/A | N/A N/A N/A | Close observation Possible bankruptcy Virtual or legal bankruptcy | Close observation or lower | ||||
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At March 31, | ||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||
Credit risk | Impairment | Credit risk | Impairment | |||||||||||||||||
exposure | losses | exposure | losses | |||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
Normal | ¥ | 13,250,682 | ¥ | 18,314 | ¥ | 13,753,447 | ¥ | 17,146 | ||||||||||||
Caution | 442,649 | 9,939 | 521,944 | 10,560 | ||||||||||||||||
Close observation or lower | 93,152 | 69,156 | 124,523 | 81,774 | ||||||||||||||||
Not rated (1) | 127,810 | – | 146,204 | – | ||||||||||||||||
On-balance-sheet items total | 13,914,293 | 97,409 | 14,546,118 | 109,480 | ||||||||||||||||
Off-balance sheet items total | 870,918 | – | 806,348 | – | ||||||||||||||||
Total | ¥ | 14,785,211 | ¥ | 97,409 | ¥ | 15,352,466 | ¥ | 109,480 | ||||||||||||
(1) | Mainly securitized financial assets such as ABSs and mortgage-backed securities. |
At March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Cash and deposits with banks | ¥ | 268,450 | ¥ | 239,871 | ||||||
Call loans | 10,875 | 23,765 | ||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | 8,812 | ||||||||
Financial assets held for trading other than derivatives(1) | 12,007 | 26,243 | ||||||||
Derivative financial assets | 203,406 | 232,378 | ||||||||
Financial assets designated at fair value through profit or loss(2) | 31,799 | 64,442 | ||||||||
Investment securities – debt securities(3) | 1,753,222 | 2,699,505 | ||||||||
Loans and advances | 9,710,846 | 9,831,088 | ||||||||
Assets pledged as collateral(4) | 1,721,353 | 1,290,516 | ||||||||
Other assets | 200,814 | 129,498 | ||||||||
Total | ¥ | 13,914,293 | ¥ | 14,546,118 | ||||||
(1) | Financial assets held for trading presented above wholly consists of debt securities. |
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(2) | Financial assets designated at fair value through profit or loss presented above include only debt securities. | |
(3) | Investment securities – equity securities are not included in the table above because the portfolio account is not exposed to credit risk. | |
(4) | Assets pledged as collateral wholly consist of debt securities. |
At March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Financial guarantees | ¥ | 18,281 | ¥ | 23,857 | ||||
Loan commitments and other credit-related obligations – individual | 119,982 | 123,568 | ||||||
Loan commitments and other credit-related obligations – corporate | 732,655 | 658,923 | ||||||
Total | ¥ | 870,918 | ¥ | 806,348 | ||||
• | 99% and 99% of the balance of the loans and advances at March 31, 2010 and March 31, 2009, respectively, are categorized in the top two categories, normal or caution, of the internal rating system; |
• | 99% and 98% of the balance of the loans and advances at March 31, 2010, and March 31, 2009, respectively, are considered to be neither past due nor impaired; and |
• | More than 95% and 97% of the balance of the investment securities-debt securities at March 31, 2010 and March 31, 2009, respectively, have at least an A- credit rating based on S&P rating classification or their equivalent. |
Close observation or | ||||||||||||||||||||
Normal | Caution | lower | Not rated | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||
Cash and deposits with banks | ¥ | 268,450 | ¥ | – | ¥ | – | ¥ | – | ¥ | 268,450 | ||||||||||
Call loans | 10,875 | – | – | – | 10,875 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | – | – | – | 1,521 | |||||||||||||||
Financial assets held for trading other than derivatives | 12,007 | – | – | – | 12,007 | |||||||||||||||
Derivative financial assets | 202,821 | 547 | 38 | – | 203,406 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 2,080 | 29,719 | – | – | 31,799 | |||||||||||||||
Investment securities | 1,637,030 | 14,172 | 58 | 101,962 | 1,753,222 | |||||||||||||||
Loans and advances | 9,223,585 | 397,935 | 89,326 | – | 9,710,846 | |||||||||||||||
Assets pledged as collateral | 1,721,353 | – | – | – | 1,721,353 | |||||||||||||||
Other assets | 170,960 | 276 | 3,730 | 25,848 | 200,814 | |||||||||||||||
Total | ¥ | 13,250,682 | ¥ | 442,649 | ¥ | 93,152 | ¥ | 127,810 | ¥ | 13,914,293 | ||||||||||
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Close observation or | ||||||||||||||||||||
Normal | Caution | lower | Not rated | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2009 | ||||||||||||||||||||
Cash and deposits with banks | ¥ | 239,871 | ¥ | – | ¥ | – | ¥ | – | ¥ | 239,871 | ||||||||||
Call loans | 23,765 | – | – | – | 23,765 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 8,812 | – | – | – | 8,812 | |||||||||||||||
Financial assets held for trading other than derivatives | 26,243 | – | – | – | 26,243 | |||||||||||||||
Derivative financial assets | 230,811 | 1,558 | 9 | – | 232,378 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 63,084 | 70 | 105 | 1,183 | 64,442 | |||||||||||||||
Investment securities | 2,570,327 | 14,145 | 64 | 114,969 | 2,699,505 | |||||||||||||||
Loans and advances | 9,205,560 | 505,716 | 119,812 | – | 9,831,088 | |||||||||||||||
Assets pledged as collateral | 1,290,516 | – | – | – | 1,290,516 | |||||||||||||||
Other assets | 94,458 | 455 | 4,533 | 30,052 | 129,498 | |||||||||||||||
Total | ¥ | 13,753,447 | ¥ | 521,944 | ¥ | 124,523 | ¥ | 146,204 | ¥ | 14,546,118 | ||||||||||
At March 31, 2010 | ||||||||||||||||||||
Less- | ||||||||||||||||||||
Impairment | ||||||||||||||||||||
Japan | United States | Other | allowance | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
On-balance sheet items | ||||||||||||||||||||
Cash and deposits with banks | ¥ | 245,518 | ¥ | 195 | ¥ | 22,737 | ¥ | — | ¥ | 268,450 | ||||||||||
Call loans | 10,875 | — | — | — | 10,875 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | — | — | — | 1,521 | |||||||||||||||
Financial assets held for trading other than derivatives | 12,007 | — | — | — | 12,007 | |||||||||||||||
Derivative financial assets | 188,484 | 7,359 | 7,563 | — | 203,406 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 31,799 | — | — | — | 31,799 | |||||||||||||||
Investment securities | 1,325,404 | 120,159 | 307,659 | — | 1,753,222 | |||||||||||||||
Loans and advances | 9,581,036 | 39,090 | 151,010 | 60,290 | 9,710,846 | |||||||||||||||
Assets pledged as collateral | 968,200 | 696,087 | 57,066 | — | 1,721,353 | |||||||||||||||
Other assets | 199,526 | 1,623 | 1,212 | 1,547 | 200,814 | |||||||||||||||
Total | ¥ | 12,564,370 | ¥ | 864,513 | ¥ | 547,247 | ¥ | 61,837 | ¥ | 13,914,293 | ||||||||||
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At March 31, 2010 | ||||||||||||||||
United | ||||||||||||||||
Japan | States | Other | Total | |||||||||||||
(Millions of yen) | ||||||||||||||||
Off-balance sheet items | ||||||||||||||||
Financial guarantees | ¥ | 16,929 | ¥ | 1,323 | ¥ | 29 | ¥ | 18,281 | ||||||||
Loan commitments and other credit-related obligations — individual | 119,982 | — | — | 119,982 | ||||||||||||
Loan commitments and other credit-related obligations — corporate | 731,725 | 930 | — | 732,655 | ||||||||||||
Total | ¥ | 868,636 | ¥ | 2,253 | ¥ | 29 | ¥ | 870,918 | ||||||||
At March 31, 2009 | ||||||||||||||||||||
Less-Impairment | ||||||||||||||||||||
Japan | United States | Other | allowance | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
On-balance sheet items | ||||||||||||||||||||
Cash and deposits with banks | ¥ | 227,586 | ¥ | 20 | ¥ | 12,265 | ¥ | — | ¥ | 239,871 | ||||||||||
Call loans | 11,981 | — | 11,784 | — | 23,765 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 8,812 | — | — | — | 8,812 | |||||||||||||||
Financial assets held for trading other than derivatives | 26,243 | — | — | — | 26,243 | |||||||||||||||
Derivative financial assets | 212,856 | 9,388 | 10,134 | — | 232,378 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 64,442 | — | — | — | 64,442 | |||||||||||||||
Investment securities | 2,208,630 | 229,128 | 261,747 | — | 2,699,505 | |||||||||||||||
Loans and advances | 9,667,076 | 48,178 | 179,345 | 63,511 | 9,831,088 | |||||||||||||||
Assets pledged as collateral | 716,398 | 476,816 | 97,302 | — | 1,290,516 | |||||||||||||||
Other assets | 127,165 | 2,538 | 1,575 | 1,780 | 129,498 | |||||||||||||||
Total | ¥ | 13,271,189 | ¥ | 766,068 | ¥ | 574,152 | ¥ | 65,291 | ¥ | 14,546,118 | ||||||||||
At March 31, 2009 | ||||||||||||||||
United | ||||||||||||||||
Japan | States | Other | Total | |||||||||||||
(Millions of yen) | ||||||||||||||||
Off-balance sheet items | ||||||||||||||||
Financial guarantees | ¥ | 18,513 | ¥ | 4,151 | ¥ | 1,193 | ¥ | 23,857 | ||||||||
Loan commitments and other credit-related obligations – individual | 123,568 | — | — | 123,568 | ||||||||||||
Loan commitments and other credit-related obligations – corporate | 655,949 | 2,974 | — | 658,923 | ||||||||||||
Total | ¥ | 798,030 | ¥ | 7,125 | ¥ | 1,193 | ¥ | 806,348 | ||||||||
Note: | CMTH principally operates in Japan and credit exposures predominantly rest with the counterparties in Japan. However, these domestic counterparties are well diversified across a variety of industry sectors and the credit risk concentration has been mitigated. |
175
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At March 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | Individual | |||||||||||||||||||||||||||||||||||||||||||
Banks and | Less- | |||||||||||||||||||||||||||||||||||||||||||
Manufac- | Government | financial | Other | Housing | Total | impairment | ||||||||||||||||||||||||||||||||||||||
turing | and public | institutions | Real estate | industries | loans | Other loans | domestic | Overseas | allowance | Total | ||||||||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||||||||||
On-balance sheet items | ||||||||||||||||||||||||||||||||||||||||||||
Cash and deposits with banks | ¥ | — | ¥ | — | ¥ | 245,518 | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | 245,518 | ¥ | 22,932 | ¥ | — | ¥ | 268,450 | ||||||||||||||||||||||
Call loans | — | — | 10,875 | — | — | — | — | 10,875 | — | — | 10,875 | |||||||||||||||||||||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | — | — | 1,521 | — | — | — | — | 1,521 | — | — | 1,521 | |||||||||||||||||||||||||||||||||
Financial assets held for trading other than derivatives | 1,990 | 50 | 7,970 | — | 1,997 | — | — | 12,007 | — | — | 12,007 | |||||||||||||||||||||||||||||||||
Derivative financial assets | 4,778 | — | 174,037 | 3,103 | 6,566 | — | — | 188,484 | 14,922 | — | 203,406 | |||||||||||||||||||||||||||||||||
Financial assets designated at fair value through profit or loss | — | — | — | — | 31,799 | — | — | 31,799 | — | — | 31,799 | |||||||||||||||||||||||||||||||||
Investment securities | 9,921 | 1,167,037 | 14,888 | 12,074 | 121,484 | — | — | 1,325,404 | 427,818 | — | 1,753,222 | |||||||||||||||||||||||||||||||||
Loans and advances | 953,096 | 5,945 | 1,662,671 | 1,243,964 | 1,761,822 | 3,620,867 | 332,671 | 9,581,036 | 190,100 | 60,290 | 9,710,846 | |||||||||||||||||||||||||||||||||
Assets pledged as collateral | — | 930,095 | — | — | 38,105 | — | — | 968,200 | 753,153 | — | 1,721,353 | |||||||||||||||||||||||||||||||||
Other assets | 2,336 | 2,845 | 164,452 | 14,616 | 5,686 | 8,783 | 808 | 199,526 | 2,835 | 1,547 | 200,814 | |||||||||||||||||||||||||||||||||
Total | ¥ | 972,121 | ¥ | 2,105,972 | ¥ | 2,281,932 | ¥ | 1,273,757 | ¥ | 1,967,459 | ¥ | 3,629,650 | ¥ | 333,479 | ¥ | 12,564,370 | ¥ | 1,411,760 | ¥ | 61,837 | ¥ | 13,914,293 | ||||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
Corporate | Individual | |||||||||||||||||||||||||||||||||||||||
Banks and | ||||||||||||||||||||||||||||||||||||||||
Government | financial | Other | Housing | Total | ||||||||||||||||||||||||||||||||||||
Manufacturing | and public | institutions | Real estate | industries | loans | Other loans | domestic | Overseas | Total | |||||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||||||
Off-balance sheet items | ||||||||||||||||||||||||||||||||||||||||
Financial guarantees | ¥ | 8 | ¥ | — | ¥ | 31 | ¥ | — | ¥ | 16,752 | ¥ | 55 | ¥ | 83 | ¥ | 16,929 | ¥ | 1,352 | ¥ | 18,281 | ||||||||||||||||||||
Loan commitments and other credit related obligation — individual | — | — | — | — | — | 41,916 | 78,066 | 119,982 | — | 119,982 | ||||||||||||||||||||||||||||||
Loan commitments and other credit related obligations — corporate | 309,952 | — | 60,336 | 82,667 | 278,770 | — | — | 731,725 | 930 | 732,655 | ||||||||||||||||||||||||||||||
Total | ¥ | 309,960 | ¥ | — | ¥ | 60,367 | ¥ | 82,667 | ¥ | 295,522 | ¥ | 41,971 | ¥ | 78,149 | ¥ | 868,636 | ¥ | 2,282 | ¥ | 870,918 | ||||||||||||||||||||
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At March 31, 2009 | ||||||||||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | Individual | |||||||||||||||||||||||||||||||||||||||||||
Banks and | Less- | |||||||||||||||||||||||||||||||||||||||||||
Manufac- | Government | financial | Other | Housing | Total | impairment | ||||||||||||||||||||||||||||||||||||||
turing | and public | institutions | Real estate | industries | loans | Other loans | domestic | Overseas | allowance | Total | ||||||||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||||||||||
On-balance sheet items | ||||||||||||||||||||||||||||||||||||||||||||
Cash and deposits with banks | ¥ | — | ¥ | — | ¥ | 227,586 | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | 227,586 | ¥ | 12,285 | ¥ | — | ¥ | 239,871 | ||||||||||||||||||||||
Call loans | — | — | 11,981 | — | — | — | — | 11,981 | 11,784 | — | 23,765 | |||||||||||||||||||||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | — | — | 8,812 | — | — | — | — | 8,812 | — | — | 8,812 | |||||||||||||||||||||||||||||||||
Financial assets held for trading other than derivatives | 8,172 | 117 | 8,971 | — | 8,983 | — | — | 26,243 | — | — | 26,243 | |||||||||||||||||||||||||||||||||
Derivative financial assets | 5,360 | — | 193,940 | 4,202 | 9,354 | — | — | 212,856 | 19,522 | — | 232,378 | |||||||||||||||||||||||||||||||||
Financial assets designated at fair value through profit or loss | — | — | — | — | 64,442 | — | — | 64,442 | — | — | 64,442 | |||||||||||||||||||||||||||||||||
Investment securities | 9,762 | 2,032,914 | 11,588 | 10,250 | 144,116 | — | — | 2,208,630 | 490,875 | — | 2,699,505 | |||||||||||||||||||||||||||||||||
Loans and advances | 1,038,646 | 6,810 | 1,530,921 | 1,389,369 | 1,959,721 | 3,370,466 | 371,143 | 9,667,076 | 227,523 | 63,511 | 9,831,088 | |||||||||||||||||||||||||||||||||
Assets pledged as collateral | — | 716,398 | — | — | — | — | — | 716,398 | 574,118 | — | 1,290,516 | |||||||||||||||||||||||||||||||||
Other assets | 2,695 | 5,244 | 85,578 | 17,393 | 6,635 | 8,665 | 955 | 127,165 | 4,113 | 1,780 | 129,498 | |||||||||||||||||||||||||||||||||
Total | ¥ | 1,064,635 | ¥ | 2,761,483 | ¥ | 2,079,377 | ¥ | 1,421,214 | ¥ | 2,193,251 | ¥ | 3,379,131 | ¥ | 372,098 | ¥ | 13,271,189 | ¥ | 1,340,220 | ¥ | 65,291 | ¥ | 14,546,118 | ||||||||||||||||||||||
At March 31, 2009 | ||||||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
Corporate | Individual | |||||||||||||||||||||||||||||||||||||||
Banks and | ||||||||||||||||||||||||||||||||||||||||
Government | financial | Other | Housing | Total | ||||||||||||||||||||||||||||||||||||
Manufacturing | and public | institutions | Real estate | industries | loans | Other loans | domestic | Overseas | Total | |||||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||||||
Off-balance sheet items | ||||||||||||||||||||||||||||||||||||||||
Financial guarantees | ¥ | 65 | ¥ | — | ¥ | 94 | ¥ | — | ¥ | 18,184 | ¥ | 75 | ¥ | 95 | ¥ | 18,513 | ¥ | 5,344 | ¥ | 23,857 | ||||||||||||||||||||
Loan commitments and other credit related obligation —individual | — | — | — | — | — | 33,188 | 90,380 | 123,568 | — | 123,568 | ||||||||||||||||||||||||||||||
Loan commitments and other credit related obligations —corporate | 287,151 | — | 61,240 | 58,532 | 249,026 | — | — | 655,949 | 2,974 | 658,923 | ||||||||||||||||||||||||||||||
Total | ¥ | 287,216 | ¥ | — | ¥ | 61,334 | ¥ | 58,532 | ¥ | 267,210 | ¥ | 33,263 | ¥ | 90,475 | ¥ | 798,030 | ¥ | 8,318 | ¥ | 806,348 | ||||||||||||||||||||
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At March 31, 2010 | At March 31, 2009 | |||||||
(Millions of yen) | ||||||||
Neither past due nor impaired | ¥ | 9,600,004 | ¥ | 9,682,755 | ||||
Past due but not impaired | 49,750 | 56,203 | ||||||
Individually impaired | 121,382 | 155,641 | ||||||
Amount before deducting impairment allowance | 9,771,136 | 9,894,599 | ||||||
Less: impairment allowance | ||||||||
Normal | 18,299 | 17,130 | ||||||
Caution | 9,934 | 10,552 | ||||||
Close observation or lower | 32,057 | 35,829 | ||||||
Net | ¥ | 9,710,846 | ¥ | 9,831,088 | ||||
Loans and advances | ||||||||||||
Amount before | ||||||||||||
deducting | ||||||||||||
impairment | ||||||||||||
Individual | Corporate | allowance | ||||||||||
(Millions of yen) | ||||||||||||
At March 31, 2010 | ||||||||||||
Normal | ¥ | 3,814,368 | ¥ | 5,393,554 | ¥ | 9,207,922 | ||||||
Caution | 50,411 | 341,671 | 392,082 | |||||||||
Total | ¥ | 3,864,779 | ¥ | 5,735,225 | ¥ | 9,600,004 | ||||||
At March 31, 2009 | ||||||||||||
Normal | ¥ | 3,605,115 | ¥ | 5,572,138 | ¥ | 9,177,253 | ||||||
Caution | 48,102 | 457,400 | 505,502 | |||||||||
Total | ¥ | 3,653,217 | ¥ | 6,029,538 | ¥ | 9,682,755 | ||||||
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Loans and advances | ||||||||||||
Amount before | ||||||||||||
deducting impairment | ||||||||||||
Individual | Corporate | allowance | ||||||||||
(Millions of yen) | ||||||||||||
At March 31, 2010 | ||||||||||||
Past due up to 30 days | ¥ | 37,361 | ¥ | 92 | ¥ | 37,453 | ||||||
Past due30-60 days | 7,012 | 83 | 7,095 | |||||||||
Over 60 days | 3,606 | 1,596 | 5,202 | |||||||||
Total | ¥ | 47,979 | ¥ | 1,771 | ¥ | 49,750 | ||||||
Normal | 33,942 | 20 | 33,962 | |||||||||
Caution | 14,037 | 1,751 | 15,788 | |||||||||
Total | ¥ | 47,979 | ¥ | 1,771 | ¥ | 49,750 | ||||||
Loans and advances | ||||||||||||
Amount before | ||||||||||||
deducting impairment | ||||||||||||
Individual | Corporate | allowance | ||||||||||
(Millions of yen) | ||||||||||||
At March 31, 2009 | ||||||||||||
Past due up to 30 days | ¥ | 41,410 | ¥ | 75 | ¥ | 41,485 | ||||||
Past due30-60 days | 6,794 | 3,914 | 10,708 | |||||||||
Over 60 days | 2,182 | 1,828 | 4,010 | |||||||||
Total | ¥ | 50,386 | ¥ | 5,817 | ¥ | 56,203 | ||||||
Normal | 45,367 | 69 | 45,436 | |||||||||
Caution | 5,019 | 5,748 | 10,767 | |||||||||
Total | ¥ | 50,386 | ¥ | 5,817 | ¥ | 56,203 |
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Loans and advances | ||||||||||||
Amount before | ||||||||||||
deducting | ||||||||||||
impairment | ||||||||||||
Individual | Corporate | allowance | ||||||||||
(Millions of yen) | ||||||||||||
At March 31, 2010 | ||||||||||||
Carrying amount | ¥ | 40,782 | ¥ | 80,600 | ¥ | 121,382 | ||||||
Fair value of collateral | 29,117 | 27,466 | 56,583 |
Loans and advances | ||||||||||||
Amount before | ||||||||||||
deducting | ||||||||||||
impairment | ||||||||||||
Individual | Corporate | allowance | ||||||||||
(Millions of yen) | ||||||||||||
At March 31, 2009 | ||||||||||||
Carrying amount | ¥ | 38,004 | ¥ | 117,637 | ¥ | 155,641 | ||||||
Fair value of collateral | 29,998 | 55,495 | 85,493 |
At March 31, 2010 | At March 31, 2009 | |||||||
(Millions of yen, except percentage) | ||||||||
Loan balances to domestic retail borrowers which LTV is in excess of 100% | ¥ | 417 | ¥ | 44 | ||||
Total loan balances to domestic retail borrowers | 40,782 | 38,004 | ||||||
Ratio | 1.02 | % | 0.11 | % |
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Table of Contents
Financial assets | ||||||||||||||||||||
Financial assets | designated at | |||||||||||||||||||
held for trading | fair value | |||||||||||||||||||
other than | through profit | Investment | Assets pledged | |||||||||||||||||
derivatives | or loss | securities | as collateral | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||
AAA to AA- | ¥ | 50 | ¥ | – | ¥ | 1,430,412 | ¥ | 1,721,353 | ¥ | 3,151,815 | ||||||||||
A+ to A- | 1,985 | – | 239,261 | – | 241,246 | |||||||||||||||
BBB+ | – | – | 36,025 | – | 36,025 | |||||||||||||||
BBB to BBB- | 7,982 | 2,080 | 20,294 | – | 30,356 | |||||||||||||||
Lower than BBB- | 1,990 | 29,719 | 27,230 | – | 58,939 | |||||||||||||||
Not rated | – | – | – | – | – | |||||||||||||||
Total | ¥ | 12,007 | ¥ | 31,799 | ¥ | 1,753,222 | ¥ | 1,721,353 | ¥ | 3,518,381 | ||||||||||
At March 31, 2009 | ||||||||||||||||||||
AAA to AA- | ¥ | 117 | ¥ | – | ¥ | 2,400,006 | ¥ | 1,290,516 | ¥ | 3,690,639 | ||||||||||
A+ to A- | 17,942 | – | 241,186 | – | 259,128 | |||||||||||||||
BBB+ | – | – | 23,897 | – | 23,897 | |||||||||||||||
BBB to BBB- | 8,184 | 58,521 | 7,207 | – | 73,912 | |||||||||||||||
Lower than BBB- | – | 4,738 | 27,209 | – | 31,947 | |||||||||||||||
Not rated | – | 1,183 | – | – | 1,183 | |||||||||||||||
Total | ¥ | 26,243 | ¥ | 64,442 | ¥ | 2,699,505 | ¥ | 1,290,516 | ¥ | 4,080,706 | ||||||||||
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At March 31, | ||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||
Gross amount | Impairment losses | Carrying amount | Gross amount | Impairment losses | Carrying amount | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||
Investment securities – equity securities | ¥ | 944,101 | ¥ | 193,628 | ¥ | 750,473 | ¥ | 806,005 | ¥ | 185,936 | ¥ | 620,069 | ||||||||||||
Investment securities – debt securities | 1,755,137 | 1,915 | 1,753,222 | 2,701,413 | 1,908 | 2,699,505 | ||||||||||||||||||
Investment securities subtotal | 2,699,238 | 195,543 | 2,503,695 | 3,507,418 | 187,844 | 3,319,574 | ||||||||||||||||||
Loans and advances | 9,804,793 | 93,947 | 9,710,846 | 9,936,879 | 105,791 | 9,831,088 | ||||||||||||||||||
Other assets | 255,647 | 1,547 | 254,100 | 184,290 | 1,780 | 182,510 | ||||||||||||||||||
Total | ¥ | 12,759,678 | ¥ | 291,037 | ¥ | 12,468,641 | ¥ | 13,628,587 | ¥ | 295,415 | ¥ | 13,333,172 | ||||||||||||
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At year end | Average | High | Low | |||||||||||||||
(Billions of yen) | ||||||||||||||||||
For the fiscal year ended March 31, 2010 | ||||||||||||||||||
Trading book | Interest rate risk / Foreign exchange risk | ¥ | 0.0 | ¥ | 0.7 | ¥ | 2.2 | ¥ | 0.0 | |||||||||
Equity risk / Other risk | – | – | – | – | ||||||||||||||
Banking book | Interest rate risk / Foreign exchange risk | 45.1 | 43.4 | 56.7 | 34.4 | |||||||||||||
Equity risk / Other risk | 178.6 | 183.8 | 207.9 | 162.6 | ||||||||||||||
For the fiscal year ended March 31, 2009 | ||||||||||||||||||
Trading book | Interest rate risk / Foreign exchange risk | 0.1 | 0.4 | 1.8 | 0.0 | |||||||||||||
Equity risk / Other risk | – | – | – | – | ||||||||||||||
Banking book | Interest rate risk / Foreign exchange risk | 50.1 | 50.0 | 66.8 | 27.1 | |||||||||||||
Equity risk / Other risk | 157.7 | 244.9 | 332.9 | 157.7 |
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At March 31, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Other | Other | |||||||||||||||
comprehensive | comprehensive | |||||||||||||||
Profit and loss | income | Profit and loss | income | |||||||||||||
(Millions of yen) | ||||||||||||||||
Parameter increase 10% | ¥ | 10,227 | ¥ | 11,950 | ¥ | 3,031 | ¥ | 11,542 | ||||||||
Parameter decrease 10% | (10,729 | ) | (11,332 | ) | (3,681 | ) | (9,751 | ) |
Financial assets | ||||||||||||||||||||
designated at fair value | ||||||||||||||||||||
through | ||||||||||||||||||||
profit or loss | Investment securities | |||||||||||||||||||
Listed | Unlisted | Listed | Unlisted | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||
Manufacturing | ¥ | – | ¥ | – | ¥ | 312,411 | ¥ | 13,315 | ¥ | 325,726 | ||||||||||
Transportation | – | – | 65,913 | 13,781 | 79,694 | |||||||||||||||
Real estate | – | – | 55,064 | 7,913 | 62,977 | |||||||||||||||
Service | – | – | 13,643 | 7,108 | 20,751 | |||||||||||||||
Wholesale and retail | – | – | 63,521 | 3,396 | 66,917 | |||||||||||||||
Financial institution | – | – | 17,716 | 69,055 | 86,771 | |||||||||||||||
Other industries | 7,501 | 70,733 | 47,429 | 57,864 | 183,527 | |||||||||||||||
Overseas | – | 14,375 | – | 2,344 | 16,719 | |||||||||||||||
Total | ¥ | 7,501 | ¥ | 85,108 | ¥ | 575,697 | ¥ | 174,776 | ¥ | 843,082 | ||||||||||
At March 31, 2009 | ||||||||||||||||||||
Manufacturing | ¥ | 583 | ¥ | – | ¥ | 253,921 | ¥ | 7,453 | ¥ | 261,957 | ||||||||||
Transportation | 102 | – | 62,140 | 4,465 | 66,707 | |||||||||||||||
Real estate | 53 | – | 38,960 | 4,573 | 43,586 | |||||||||||||||
Service | 199 | – | 13,006 | 6,264 | 19,469 | |||||||||||||||
Wholesale and retail | 160 | – | 40,409 | 2,938 | 43,507 | |||||||||||||||
Financial institution | 443 | – | 15,826 | 51,868 | 68,137 | |||||||||||||||
Other industries | 6,328 | 41,195 | 45,057 | 70,309 | 162,889 | |||||||||||||||
Overseas | – | 16,237 | 279 | 2,601 | 19,117 | |||||||||||||||
Total | ¥ | 7,868 | ¥ | 57,432 | ¥ | 469,598 | ¥ | 150,471 | ¥ | 685,369 | ||||||||||
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Less: | ||||||||||||||||||||
Impairment | ||||||||||||||||||||
Japanese yen | U.S. dollars | Other | allowance | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and deposits with banks | ¥ | 265,556 | ¥ | 28 | ¥ | 2,866 | ¥ | – | ¥ | 268,450 | ||||||||||
Call loans | 4,116 | 6,759 | – | – | 10,875 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | – | – | – | 1,521 | |||||||||||||||
Financial assets held for trading other than derivatives | 12,007 | – | – | – | 12,007 | |||||||||||||||
Derivative financial assets | 65,180 | 100,475 | 37,751 | – | 203,406 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 112,408 | 12,000 | – | – | 124,408 | |||||||||||||||
Investment securities – equity securities | 749,281 | 1,029 | 163 | – | 750,473 | |||||||||||||||
Investment securities – debt securities | 1,652,945 | 82,916 | 17,361 | – | 1,753,222 | |||||||||||||||
Investment securities subtotal | 2,402,226 | 83,945 | 17,524 | – | 2,503,695 | |||||||||||||||
Loans and advances | 9,616,023 | 147,358 | 7,755 | 60,290 | 9,710,846 | |||||||||||||||
Assets pledged as collateral | 935,455 | 689,841 | 96,057 | – | 1,721,353 | |||||||||||||||
Other assets | 252,812 | 1,623 | 1,212 | 1,547 | 254,100 | |||||||||||||||
Total assets | ¥ | 13,667,304 | ¥ | 1,042,029 | ¥ | 163,165 | ¥ | 61,837 | ¥ | 14,810,661 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits | 9,055,643 | 7,592 | 1,487 | – | 9,064,722 | |||||||||||||||
Call money | 199,000 | 107,161 | – | – | 306,161 | |||||||||||||||
Cash collateral on securities lent and repurchase agreements | 916,800 | 689,841 | 96,057 | – | 1,702,698 | |||||||||||||||
Derivative financial liabilities | 56,381 | 99,159 | 36,423 | – | 191,963 | |||||||||||||||
Financial liabilities designated at fair value through profit or loss | 2,080 | – | – | – | 2,080 | |||||||||||||||
Due to trust accounts | 21,356 | – | – | – | 21,356 | |||||||||||||||
Due to investors of trust accounts | 1,568,220 | – | – | – | 1,568,220 | |||||||||||||||
Debt securities issued | 161,339 | 72,630 | – | – | 233,969 | |||||||||||||||
Borrowings | 1,228,505 | – | – | – | 1,228,505 | |||||||||||||||
Other liabilities | 103,008 | – | – | – | 103,008 | |||||||||||||||
Total liabilities | ¥ | 13,312,332 | ¥ | 976,383 | ¥ | 133,967 | ¥ | – | ¥ | 14,422,682 | ||||||||||
185
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Less: | ||||||||||||||||||||
Impairment | ||||||||||||||||||||
Japanese yen | U.S. dollars | Other | allowance | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
Off-balance sheet items | ||||||||||||||||||||
Financial guarantees | 16,930 | 1,323 | 28 | – | 18,281 | |||||||||||||||
Loan commitments and other credit related obligations – individual | 119,982 | – | – | – | 119,982 | |||||||||||||||
Loan commitments and other credit related obligations – corporate | 731,725 | 930 | – | – | 732,655 | |||||||||||||||
Commitments to invest in partnerships | 15,061 | 5,660 | 428 | – | 21,149 | |||||||||||||||
Total of off-balance sheet items | ¥ | 883,698 | ¥ | 7,913 | ¥ | 456 | ¥ | – | ¥ | 892,067 | ||||||||||
At March 31, 2009 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and deposits with banks | 237,003 | 24 | 2,844 | – | 239,871 | |||||||||||||||
Call loans | 11,867 | 11,898 | – | – | 23,765 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 8,812 | – | – | – | 8,812 | |||||||||||||||
Financial assets held for trading other than derivatives | 26,243 | – | – | – | 26,243 | |||||||||||||||
Derivative financial assets | 221,804 | 10,574 | – | – | 232,378 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 116,659 | 13,083 | – | – | 129,742 | |||||||||||||||
Investment securities – equity securities | 618,192 | 1,350 | 527 | – | 620,069 | |||||||||||||||
Investment securities – debt securities | 2,528,369 | 171,136 | – | – | 2,699,505 | |||||||||||||||
Investment securities subtotal | 3,146,561 | 172,486 | 527 | – | 3,319,574 | |||||||||||||||
Loans and advances | 9,739,500 | 151,860 | 3,239 | 63,511 | 9,831,088 | |||||||||||||||
Assets pledged as collateral | 737,781 | 456,222 | 96,513 | – | 1,290,516 | |||||||||||||||
Other assets | 180,177 | 2,538 | 1,575 | 1,780 | 182,510 | |||||||||||||||
Total assets | ¥ | 14,426,407 | ¥ | 818,685 | ¥ | 104,698 | ¥ | 65,291 | ¥ | 15,284,499 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits | 9,413,679 | 6,391 | 1,276 | – | 9,421,346 | |||||||||||||||
Call money | 225,000 | 28,478 | – | – | 253,478 | |||||||||||||||
Cash collateral on securities lent and repurchase agreements | 702,914 | 456,222 | 96,512 | – | 1,255,648 | |||||||||||||||
Derivative financial liabilities | 232,572 | 370 | 7,132 | – | 240,074 | |||||||||||||||
Financial liabilities designated at fair value through profit or loss | 2,818 | – | – | – | 2,818 | |||||||||||||||
Due to trust accounts | 25,592 | – | – | – | 25,592 | |||||||||||||||
Due to investors of trust accounts | 1,891,361 | – | – | – | 1,891,361 | |||||||||||||||
Debt securities issued | 287,214 | 86,181 | – | – | 373,395 | |||||||||||||||
Borrowings | 1,704,097 | – | – | – | 1,704,097 | |||||||||||||||
Other liabilities | 195,869 | – | – | – | 195,869 | |||||||||||||||
Total liabilities | ¥ | 14,681,116 | ¥ | 577,642 | ¥ | 104,920 | ¥ | – | ¥ | 15,363,678 | ||||||||||
186
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Less: | ||||||||||||||||||||
Impairment | ||||||||||||||||||||
Japanese yen | U.S. dollars | Other | allowance | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
Off-balance sheet items | ||||||||||||||||||||
Financial guarantees | 19,706 | 4,151 | – | – | 23,857 | |||||||||||||||
Loan commitments and other credit related obligations – individual | 123,568 | – | – | – | 123,568 | |||||||||||||||
Loan commitments and other credit related obligations – corporate | 655,949 | 2,974 | – | – | 658,923 | |||||||||||||||
Commitments to invest in partnerships | 21,869 | 4,499 | 515 | – | 26,883 | |||||||||||||||
Total of off-balance sheet items | ¥ | 821,092 | ¥ | 11,624 | ¥ | 515 | ¥ | – | ¥ | 833,231 | ||||||||||
187
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For the fiscal year ended March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Interest income on interest-earning assets | ¥ | 181,592 | ¥ | 211,683 | ||||||
Interest expense on interest-bearing liabilities | 68,901 | 96,845 | ||||||||
Net interest income | ¥ | 112,691 | ¥ | 114,838 | ||||||
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For the fiscal year ended March 31, | ||||||||||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||||||||||
Fiscal | Interest | Fiscal | Interest | |||||||||||||||||||||||||||||
year-end | Average | income/ | Average | year-end | Average | income/ | Average | |||||||||||||||||||||||||
balance | balance | expense | rate | balance | balance | expense | rate | |||||||||||||||||||||||||
(Millions of yen, except percentages) | ||||||||||||||||||||||||||||||||
Interest-earning assets | ¥ | 13,805,488 | ¥ | 13,366,245 | ¥ | 181,592 | 1.35% | ¥ | 13,800,768 | ¥ | 13,092,797 | ¥ | 211,683 | 1.61% | ||||||||||||||||||
Loans and bills discounted | 8,941,948 | 8,156,997 | 122,031 | 1.49% | 8,584,295 | 7,442,234 | 124,493 | 1.67% | ||||||||||||||||||||||||
Securities | 4,525,683 | 4,872,609 | 55,570 | 1.14% | 4,896,624 | 5,155,574 | 82,956 | 1.60% | ||||||||||||||||||||||||
Call loans and bills bought | 9,884 | 120,071 | 181 | 0.15% | 15,391 | 197,348 | 905 | 0.45% | ||||||||||||||||||||||||
Receivables under securities borrowing transactions | 1,521 | 60,110 | 77 | 0.12% | 8,812 | 118,999 | 421 | 0.35% | ||||||||||||||||||||||||
Due from banks | 226,867 | 50,291 | 189 | 0.37% | 191,467 | 59,910 | 738 | 1.23% | ||||||||||||||||||||||||
Other interest-earning assets | 99,585 | 106,167 | 3,544 | 3.33% | 104,179 | 118,732 | 2,170 | 1.82% | ||||||||||||||||||||||||
Interest-bearing liabilities | 13,548,482 | 13,195,489 | 68,901 | 0.52% | 13,707,418 | 12,888,643 | 96,845 | 0.75% | ||||||||||||||||||||||||
Deposits | 8,759,917 | 8,556,047 | 44,971 | 0.52% | 8,904,215 | 8,411,373 | 47,387 | 0.56% | ||||||||||||||||||||||||
Negotiable certificates of deposit | 327,190 | 358,157 | 1,422 | 0.39% | 542,280 | 511,649 | 4,080 | 0.79% | ||||||||||||||||||||||||
Call money and bills sold | 306,161 | 334,134 | 725 | 0.21% | 253,478 | 484,088 | 3,996 | 0.82% | ||||||||||||||||||||||||
Payables under repurchase agreements | — | 10,774 | 17 | 0.15% | — | 18,996 | 475 | 2.50% | ||||||||||||||||||||||||
Payables under securities lending transactions | 1,702,697 | 1,403,358 | 3,484 | 0.24% | 1,255,648 | 1,641,904 | 19,515 | 1.18% | ||||||||||||||||||||||||
Borrowed money | 1,217,246 | 1,248,063 | 3,838 | 0.30% | 1,692,565 | 670,922 | 5,691 | 0.84% | ||||||||||||||||||||||||
Other interest-bearing liabilities | 1,235,271 | 1,284,956 | 14,444 | 1.12% | 1,059,232 | 1,149,711 | 15,701 | 1.36% |
189
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2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||
31-Mar | 31-Dec | 30-Sep | 30-Jun | 31-Mar | 31-Dec | 30-Sep | 30-Jun | 1-Apr | |||||||||||||||||||||||||||||||||||||
(Millions of yen) | |||||||||||||||||||||||||||||||||||||||||||||
Principal balance of beneficial interests in principal–guaranteed trusts outstanding | ¥ | 1,381,853 | ¥ | 1,460,961 | ¥ | 1,525,307 | ¥ | 1,594,313 | ¥ | 1,653,481 | ¥ | 1,726,625 | ¥ | 1,786,208 | ¥ | 1,859,300 | ¥ | 1,923,645 |
190
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At March 31, | At April 1, | ||||||||||||||
2010 | 2009 | 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Total principal amount of securitized mortgages | ¥ | 506,831 | ¥ | 587,180 | ¥ | 703,693 | |||||||||
Total principal amount of senior beneficial interests | 350,602 | 438,167 | 558,892 |
II. | Investment Portfolio |
At March 31, | At April 1, | ||||||||||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||
Net | Net | Net | |||||||||||||||||||||||||||||||||||||||||||
unrealized | unrealized | unrealized | |||||||||||||||||||||||||||||||||||||||||||
Amortized | gains | Amortized | gains | Amortized | gains | ||||||||||||||||||||||||||||||||||||||||
cost | Fair value | (losses) | cost | Fair value | (losses) | cost | Fair value | (losses) | |||||||||||||||||||||||||||||||||||||
(Millions of yen) | |||||||||||||||||||||||||||||||||||||||||||||
Available- for-sale securities: | |||||||||||||||||||||||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||||||||||||||||||
Japanese government bonds | ¥ | 1,696,103 | ¥ | 1,687,849 | ¥ | (8,254 | ) | ¥ | 2,150,891 | ¥ | 2,130,591 | ¥ | (20,300 | ) | ¥ | 1,609,378 | ¥ | 1,574,276 | ¥ | (35,102 | ) | ||||||||||||||||||||||||
Corporate bonds | 55,264 | 53,882 | (1,382 | ) | 58,188 | 54,938 | (3,250 | ) | 46,925 | 47,409 | 484 | ||||||||||||||||||||||||||||||||||
Other debt securities | 10,214 | 10,170 | (44 | ) | 28,154 | 27,907 | (247 | ) | 20,692 | 20,578 | (114 | ) | |||||||||||||||||||||||||||||||||
Equity securities | 507,829 | 713,199 | 205,370 | 526,206 | 585,285 | 59,079 | 620,462 | 907,369 | 286,907 | ||||||||||||||||||||||||||||||||||||
Total domestic | 2,269,410 | 2,465,100 | 195,690 | 2,763,439 | 2,798,721 | 35,282 | 2,297,457 | 2,549,632 | 252,175 | ||||||||||||||||||||||||||||||||||||
Foreign: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury bonds and other U.S. government agencies bonds | 724,679 | 718,201 | (6,478 | ) | 588,382 | 590,203 | 1,821 | 761,786 | 762,369 | 583 | |||||||||||||||||||||||||||||||||||
Other governments and official institutions bonds | 94,642 | 95,172 | 530 | 96,688 | 97,303 | 615 | 30,912 | 30,429 | (483 | ) | |||||||||||||||||||||||||||||||||||
Other securities | 219,871 | 222,604 | 2,733 | 201,633 | 191,348 | (10,285 | ) | 85,615 | 83,715 | (1,900 | ) | ||||||||||||||||||||||||||||||||||
Total foreign | 1,039,192 | 1,035,977 | (3,215 | ) | 886,703 | 878,854 | (7,849 | ) | 878,313 | 876,513 | (1,800 | ) | |||||||||||||||||||||||||||||||||
Total | ¥ | 3,308,602 | ¥ | 3,501,077 | ¥ | 192,475 | ¥ | 3,650,142 | ¥ | 3,677,575 | ¥ | 27,433 | ¥ | 3,175,770 | ¥ | 3,426,145 | ¥ | 250,375 | |||||||||||||||||||||||||||
191
Table of Contents
At March 31, | At April 1, | ||||||||||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||
Net | Net | Net | |||||||||||||||||||||||||||||||||||||||||||
unrealized | unrealized | unrealized | |||||||||||||||||||||||||||||||||||||||||||
Amortized | gains | Amortized | gains | Amortized | gains | ||||||||||||||||||||||||||||||||||||||||
cost | Fair value | (losses) | cost | Fair value | (losses) | cost | Fair value | (losses) | |||||||||||||||||||||||||||||||||||||
(Millions of yen) | |||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity debt securities: | |||||||||||||||||||||||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||||||||||||||||||
Japanese government bonds | ¥ | 399,323 | ¥ | 401,558 | ¥ | 2,235 | ¥ | 596,829 | ¥ | 602,645 | ¥ | 5,816 | ¥ | 594,559 | ¥ | 601,066 | ¥ | 6,507 | |||||||||||||||||||||||||||
Total domestic | 399,323 | 401,558 | 2,235 | 596,829 | 602,645 | 5,816 | 594,559 | 601,066 | 6,507 | ||||||||||||||||||||||||||||||||||||
Total | ¥ | 399,323 | ¥ | 401,558 | ¥ | 2,235 | ¥ | 596,829 | ¥ | 602,645 | ¥ | 5,816 | ¥ | 594,559 | ¥ | 601,066 | ¥ | 6,507 | |||||||||||||||||||||||||||
Loans and receivables: | |||||||||||||||||||||||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | ¥ | 94,602 | ¥ | 94,956 | ¥ | 354 | ¥ | 113,827 | ¥ | 113,113 | ¥ | (714 | ) | ¥ | 155,084 | ¥ | 155,502 | ¥ | 418 | ||||||||||||||||||||||||||
Total domestic | 94,602 | 94,956 | 354 | 113,827 | 113,113 | (714 | ) | 155,084 | 155,502 | 418 | |||||||||||||||||||||||||||||||||||
Foreign: | |||||||||||||||||||||||||||||||||||||||||||||
Other governments and official institutions bonds | 3,000 | 3,057 | 57 | 3,000 | 3,007 | 7 | 3,000 | 3,043 | 43 | ||||||||||||||||||||||||||||||||||||
Other securities | 235,188 | 232,419 | (2,769 | ) | 237,447 | 213,827 | (23,620 | ) | 82,000 | 79,443 | (2,557 | ) | |||||||||||||||||||||||||||||||||
Total foreign | 238,188 | 235,476 | (2,712 | ) | 240,447 | 216,834 | (23,613 | ) | 85,000 | 82,486 | (2,514 | ) | |||||||||||||||||||||||||||||||||
Total | ¥ | 332,790 | ¥ | 330,432 | ¥ | (2,358 | ) | ¥ | 354,274 | ¥ | 329,947 | ¥ | (24,327 | ) | ¥ | 240,084 | ¥ | 237,988 | ¥ | (2,096 | ) | ||||||||||||||||||||||||
At March 31, | At April 1, | ||||||||||||||
2010 | 2009 | 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Available-for-sale | |||||||||||||||
Investment securities | |||||||||||||||
Debt securities | ¥ | 1,034,386 | ¥ | 1,766,829 | ¥ | 882,607 | |||||||||
Equity securities | 750,473 | 620,069 | 939,955 | ||||||||||||
Asset pledged as collateral | 1,716,218 | 1,290,677 | 1,603,583 | ||||||||||||
Total | ¥ | 3,501,077 | ¥ | 3,677,575 | ¥ | 3,426,145 | |||||||||
Held-to-maturity | |||||||||||||||
Investment securities | |||||||||||||||
Debt securities | ¥ | 394,015 | ¥ | 596,829 | ¥ | 336,957 | |||||||||
Asset pledged as collateral | 5,308 | - | 257,602 | ||||||||||||
Total | ¥ | 399,323 | ¥ | 596,829 | ¥ | 594,559 | |||||||||
Loans and receivables | |||||||||||||||
Investment securities | ¥ | 332,790 | ¥ | 354,274 | ¥ | 240,084 | |||||||||
Asset pledged as collateral | — | — | — | ||||||||||||
Total | ¥ | 332,790 | ¥ | 354,274 | ¥ | 240,084 | |||||||||
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Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||
After one year | After five years | |||||||||||||||||||||||||||||||||||||||||||||||||
One year or less | through five years | through ten years | After ten years | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||||||||||||||||||||||
(Millions of yen, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Japanese government bonds | ¥ | 285,197 | 0.33 | % | ¥ | 942,314 | 0.78 | % | ¥ | 337,887 | 1.00 | % | ¥ | 122,451 | 1.05 | % | ¥ | 1,687,849 | 0.77 | % | ||||||||||||||||||||||||||||||
Corporate bonds | 2,001 | 0.60 | 22,904 | 0.64 | 674 | 1.10 | 28,303 | 0.10 | 53,882 | 0.32 | ||||||||||||||||||||||||||||||||||||||||
Other debt securities | 2,399 | 0.52 | 3,817 | 0.52 | 154 | 1.31 | 3,800 | 1.87 | 10,170 | 1.03 | ||||||||||||||||||||||||||||||||||||||||
Total domestic | 289,597 | 0.34 | 969,035 | 0.77 | 338,715 | 1.00 | 154,554 | 0.89 | 1,751,901 | 0.76 | ||||||||||||||||||||||||||||||||||||||||
Foreign: | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury bonds and other U.S. government agencies bonds | 1,872 | 1.11 | 276,734 | 1.90 | 197,116 | 2.96 | 242,479 | 3.06 | 718,201 | 2.58 | ||||||||||||||||||||||||||||||||||||||||
Other governments and official institutions bonds | — | — | 63,343 | 2.37 | 31,829 | 2.80 | — | — | 95,172 | 2.51 | ||||||||||||||||||||||||||||||||||||||||
Other securities | 13,760 | 1.07 | 155,754 | 1.03 | 15,815 | 1.11 | — | — | 185,329 | 1.04 | ||||||||||||||||||||||||||||||||||||||||
Total foreign | 15,632 | 1.08 | 495,831 | 1.68 | 244,760 | 2.82 | 242,479 | 3.06 | 998,702 | 2.29 | ||||||||||||||||||||||||||||||||||||||||
Total | ¥ | 305,229 | 0.38 | % | ¥ | 1,464,866 | 1.09 | % | ¥ | 583,475 | 1.77 | % | ¥ | 397,033 | 2.21 | % | ¥ | 2,750,603 | 1.32 | % | ||||||||||||||||||||||||||||||
Held-to-maturity debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Japanese government bonds | ¥ | 399,187 | 1.06 | % | ¥ | 136 | 0.57 | % | ¥ | — | — | % | ¥ | — | — | ¥ | 399,323 | 1.06 | % | |||||||||||||||||||||||||||||||
Total | ¥ | 399,187 | 1.06 | % | ¥ | 136 | 0.57 | % | ¥ | — | — | % | ¥ | — | — | % | ¥ | 399,323 | 1.06 | % | ||||||||||||||||||||||||||||||
Loans and receivables: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | ¥ | 5,150 | 1.15 | % | ¥ | 5,850 | 1.52 | % | ¥ | — | — | % | ¥ | 83,602 | 1.67 | % | ¥ | 94,602 | 1.63 | % | ||||||||||||||||||||||||||||||
Total domestic | 5,150 | 1.15 | 5,850 | 1.52 | — | — | 83,602 | 1.67 | 94,602 | 1.63 | ||||||||||||||||||||||||||||||||||||||||
Foreign: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other governments and official institutions bonds | — | — | 3,000 | 1.94 | — | — | — | — | 3,000 | 1.94 | ||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 7,000 | 0.78 | 228,188 | 0.97 | — | — | — | — | 235,188 | 0.96 | ||||||||||||||||||||||||||||||||||||||||
Total foreign | 7,000 | 0.78 | 231,188 | 0.98 | — | — | — | — | 238,188 | 0.98 | ||||||||||||||||||||||||||||||||||||||||
Total | ¥ | 12,150 | 0.93 | % | ¥ | 237,038 | 1.00 | % | ¥ | — | — | % | ¥ | 83,602 | 1.67 | % | ¥ | 332,790 | 1.16 | % | ||||||||||||||||||||||||||||||
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At March 31, | At April 1, | ||||||||||||||
2010 | 2009 | 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Domestic: | |||||||||||||||
Manufacturing | ¥ | 953,096 | ¥ | 1,038,646 | ¥ | 869,412 | |||||||||
Transportation | 609,465 | 641,238 | 611,763 | ||||||||||||
Wholesale and retail | 488,861 | 529,210 | 498,233 | ||||||||||||
Banks and other financial institutions | 1,662,671 | 1,530,921 | 1,362,212 | ||||||||||||
Real estate | 1,243,964 | 1,389,369 | 1,515,662 | ||||||||||||
Services | 374,883 | 437,930 | 511,462 | ||||||||||||
Other industries | 294,558 | 358,153 | 336,348 | ||||||||||||
Individuals | 3,953,538 | 3,741,609 | 3,425,574 | ||||||||||||
Total domestic | 9,581,036 | 9,667,076 | 9,130,666 | ||||||||||||
Foreign: | |||||||||||||||
Governments and official institutions | 2,448 | 2,561 | 2,837 | ||||||||||||
Banks and other financial institutions | 37,600 | 69,976 | 53,318 | ||||||||||||
Other | 150,052 | 154,986 | 117,536 | ||||||||||||
Total foreign | 190,100 | 227,523 | 173,691 | ||||||||||||
Total loans and advances before allowance for loan losses | 9,771,136 | 9,894,599 | 9,304,357 | ||||||||||||
Allowance for loan losses | 60,290 | 63,511 | 46,921 | ||||||||||||
Total loans and advances | ¥ | 9,710,846 | ¥ | 9,831,088 | ¥ | 9,257,436 | |||||||||
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Maturity | ||||||||||||||||||||
After one year | ||||||||||||||||||||
through five | ||||||||||||||||||||
One year or less | years | After five years | Total | |||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
Domestic: | ||||||||||||||||||||
Manufacturing | ¥ | 423,882 | ¥ | 482,892 | ¥ | 46,322 | ¥ | 953,096 | ||||||||||||
Transportation | 240,592 | 300,719 | 68,154 | 609,465 | ||||||||||||||||
Wholesale and retail | 294,372 | 186,289 | 8,200 | 488,861 | ||||||||||||||||
Banks and other financial institutions | 1,312,961 | 207,414 | 142,296 | 1,662,671 | ||||||||||||||||
Real estate | 442,388 | 713,032 | 88,544 | 1,243,964 | ||||||||||||||||
Services | 217,535 | 141,811 | 15,537 | 374,883 | ||||||||||||||||
Other industries | 133,197 | 153,277 | 8,084 | 294,558 | ||||||||||||||||
Individuals | 137,679 | 630,468 | 3,185,391 | 3,953,538 | ||||||||||||||||
Total domestic | ¥ | 3,202,606 | ¥ | 2,815,902 | ¥ | 3,562,528 | ¥ | 9,581,036 | ||||||||||||
Foreign: | ||||||||||||||||||||
Governments and official institutions | ¥ | 310 | ¥ | 1,424 | ¥ | 714 | ¥ | 2,448 | ||||||||||||
Banks and other financial institutions | 4,957 | 21,738 | 10,905 | 37,600 | ||||||||||||||||
Other | 21,152 | 85,834 | 43,066 | 150,052 | ||||||||||||||||
Total foreign | 26,419 | 108,996 | 54,685 | 190,100 | ||||||||||||||||
Total loans and advances before allowance for loan losses | ¥ | 3,229,025 | ¥ | 2,924,898 | ¥ | 3,617,213 | 9,771,136 | |||||||||||||
(Millions of yen) | |||||
Floating rate loans | ¥ | 5,373,112 | |||
Fixed rate loans | 1,168,999 | ||||
Total | ¥ | 6,542,111 | |||
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At March 31, | At April 1, | ||||||||||||||
2010 | 2009 | 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Impaired loans: | |||||||||||||||
Domestic | ¥ | 116,382 | ¥ | 149,290 | ¥ | 185,223 | |||||||||
Foreign | 5,000 | 6,350 | 0 | ||||||||||||
Total impaired loans | 121,382 | 155,640 | 185,223 | ||||||||||||
Unimpaired loans contractually past due 90 days or more: | |||||||||||||||
Domestic | 330 | 280 | 13 | ||||||||||||
Foreign | – | – | – | ||||||||||||
Total unimpaired loans contractually past due 90 days or more | ¥ | 330 | ¥ | 280 | ¥ | 13 | |||||||||
Restructured loans other than those included above: | |||||||||||||||
Domestic | ¥ | 12,162 | ¥ | 6,012 | ¥ | – | |||||||||
Foreign | – | – | – | ||||||||||||
Total restructured loans other than those included above | 12,162 | 6,012 | – | ||||||||||||
Total | ¥ | 133,874 | ¥ | 161,932 | ¥ | 185,236 | |||||||||
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IV. | Summary of Loan Loss Experience |
March 31, | ||||||||||
2010 | 2009 | |||||||||
(Millions of yen) | ||||||||||
Allowance for loan losses at beginning of fiscal year | ¥ | 63,511 | ¥ | 46,921 | ||||||
Provision for loan losses | 11,126 | 46,386 | ||||||||
Charge-offs: | ||||||||||
Domestic: | ||||||||||
Manufacturing | (1,019 | ) | (3,687 | ) | ||||||
Transportation | (80 | ) | (414 | ) | ||||||
Wholesale and retail | (880 | ) | (3,468 | ) | ||||||
Banks and other financial institutions | – | (796 | ) | |||||||
Real estate | (10,860 | ) | (9,115 | ) | ||||||
Services | (1,194 | ) | (1,467 | ) | ||||||
Other industries | (1,664 | ) | (3,881 | ) | ||||||
Individuals: | (2,027 | ) | (2,376 | ) | ||||||
Total domestic | (17,724 | ) | (25,204 | ) | ||||||
Total foreign | – | (7,998 | ) | |||||||
Total charge-offs | (17,724 | ) | (33,202 | ) | ||||||
Recoveries: | ||||||||||
Domestic: | ||||||||||
Manufacturing | 389 | 610 | ||||||||
Transportation | 12 | 148 | ||||||||
Wholesale and retail | 96 | 304 | ||||||||
Banks and other financial institutions | – | 12 | ||||||||
Real estate | 1,730 | 940 | ||||||||
Services | 67 | 189 | ||||||||
Other industries | 413 | 297 | ||||||||
Individuals | 678 | 874 | ||||||||
Total domestic | 3,385 | 3,374 | ||||||||
Total foreign | 3 | 36 | ||||||||
Total recoveries | 3,388 | 3,410 | ||||||||
Net charge-offs | (14,336 | ) | (29,792 | ) | ||||||
Other* | (11 | ) | (4 | ) | ||||||
Balance at end of fiscal year | ¥ | 60,290 | ¥ | 63,511 | ||||||
* | Other primarily includes foreign exchange translation. |
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At March 31, | At April 1, | |||||||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||||||||
% of loans in | % of loans in | % of loans in | ||||||||||||||||||||||||||||
each category | each category | each category | ||||||||||||||||||||||||||||
Amount | to total loans | Amount | to total loans | Amount | to total loans | |||||||||||||||||||||||||
(Millions of yen, except percentages) | ||||||||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||||
Manufacturing | ¥ | 3,212 | 9.75 | % | ¥ | 5,260 | 10.50 | % | ¥ | 1,672 | 9.34 | % | ||||||||||||||||||
Transportation | 1,927 | 6.24 | 1,830 | 6.48 | 11,015 | 6.58 | ||||||||||||||||||||||||
Wholesale and retail | 3,694 | 5.00 | 4,640 | 5.35 | 3,611 | 5.35 | ||||||||||||||||||||||||
Banks and financial institutions | 11,362 | 17.02 | 7,907 | 15.47 | 5,854 | 14.64 | ||||||||||||||||||||||||
Real estate | 12,141 | 12.73 | 17,383 | 14.04 | 2,079 | 16.29 | ||||||||||||||||||||||||
Services | 3,973 | 3.84 | 4,862 | 4.43 | 5,078 | 5.50 | ||||||||||||||||||||||||
Other industries | 4,705 | 3.01 | 1,731 | 3.62 | 578 | 3.61 | ||||||||||||||||||||||||
Individuals | 14,432 | 40.46 | 14,744 | 37.81 | 16,922 | 36.82 | ||||||||||||||||||||||||
Total domestic | 55,446 | 98.05 | 58,357 | 97.70 | 46,809 | 98.13 | ||||||||||||||||||||||||
Total foreign | 4,844 | 1.95 | 5,154 | 2.30 | 112 | 1.87 | ||||||||||||||||||||||||
Total allowance for loan losses | ¥ | 60,290 | 100.00 | % | ¥ | 63,511 | 100.00 | % | ¥ | 46,921 | 100.00 | % | ||||||||||||||||||
V. | Deposits |
At March 31, 2010 | ||||||||||||
Certificates | ||||||||||||
Time deposits | of deposit | Total | ||||||||||
(Millions of yen) | ||||||||||||
Domestic offices: | ||||||||||||
Due in three months or less | ¥ | 527,034 | ¥ | 220,990 | ¥ | 748,024 | ||||||
Due after three months through six months | 504,451 | 81,900 | 586,351 | |||||||||
Due after six months through twelve months | 793,772 | 24,300 | 818,072 | |||||||||
Due after twelve months | 1,894,467 | — | 1,894,467 | |||||||||
Total | 3,719,724 | 327,190 | 4,046,914 | |||||||||
Foreign offices | — | — | — | |||||||||
Total | ¥ | 3,719,724 | ¥ | 327,190 | ¥ | 4,046,914 | ||||||
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VI. | Short-Term Borrowings |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen, except percentages) | ||||||||||||
Call money: | ||||||||||||
Balance at end of fiscal year | 306,161 | 253,478 | 291,582 | |||||||||
Weighted average interest rate on balance at end of fiscal year | 0.26 | % | 1.47 | % | 2.24 | % | ||||||
Cash collateral on securities lent and repurchase agreement: | ||||||||||||
Balance at end of fiscal year | 1,702,698 | 1,255,648 | 1,821,318 | |||||||||
Weighted average interest rate on balance at end of fiscal year | 0.24 | % | 1.28 | % | 1.34 | % | ||||||
Due to trust accounts: | ||||||||||||
Balance at end of fiscal year | 21,356 | 25,592 | 26,305 | |||||||||
Weighted average interest rate on balance at end of fiscal year | 0.32 | % | 0.38 | % | 0.67 | % | ||||||
Other short-term borrowings: | ||||||||||||
Balance at end of fiscal year | 1,129,139 | 1,599,250 | 375,285 | |||||||||
Weighted average interest rate on balance at end of fiscal year | 0.09 | % | 0.38 | % | 0.95 | % |
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Reflected in the consolidated | Reflected in other | |||||||||||||||
income statement | comprehensive income | |||||||||||||||
Favorable | Unfavorable | Favorable | Unfavorable | |||||||||||||
changes | changes | changes | changes | |||||||||||||
(Millions of yen) | ||||||||||||||||
March 31, 2010 | ||||||||||||||||
Derivatives | ¥ | 559 | ¥ | 937 | ¥ | – | ¥ | – | ||||||||
Debt securities | – | – | 2,623 | 2,599 | ||||||||||||
Equity securities | – | – | 14,034 | 10,759 |
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• | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. This category includes active listed equity securities on major exchanges (for example, Tokyo Stock Exchange), highly liquid government bonds (G5 securities), and actively exchange-traded derivatives such as futures; | |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, in valuation models). This category includes certain government bonds, municipal bonds, corporate bonds and the majority of OTC derivatives held by STB. The sources of input parameters like LIBOR yield curve or volatilities are based on available observable market data; and | |
• | Level 3 – Valuation techniques using significant inputs for the asset or liability that are not based on observable market data (unobservable inputs). This category includes private equity investments, certain credit default swaps, collateralized debt obligations, or CDOs, collateralized loan obligations, or CLOs, mortgage backed securities, or MBSs, and certain OTC derivative contracts (requiring unobservable inputs, such as long-dated volatilities). |
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As of March 31, 2010 | ||||||||
Total at Fair Value | Level 3 Total | |||||||
(Millions of yen) | ||||||||
Assets: | ||||||||
Financial assets held for trading | ¥ | 551,166 | ¥ | 457 | ||||
Derivative financial instruments | 3,130,994 | 8,688 | ||||||
Available-for-sale financial assets | 2,984,361 | 197,250 | ||||||
Total assets measured at fair value | ¥ | 6,666,521 | ¥ | 206,395 | ||||
As a percentage of total assets measured at fair value | 3.10% | |||||||
Liabilities: | ||||||||
Financial liabilities held for trading | 7,386 | – | ||||||
Derivative financial instruments | 2,827,439 | 16,011 | ||||||
Total liabilities measured at fair value | ¥ | 2,834,825 | ¥ | 16,011 | ||||
As a percentage of total liabilities measured at fair value | 0.56% |
As of March 31, 2009 | ||||||||
Total at Fair Value | Level 3 Total | |||||||
(Millions of yen) | ||||||||
Assets: | ||||||||
Financial assets held for trading | ¥ | 710,082 | ¥ | – | ||||
Derivative financial instruments | 4,027,339 | 15,411 | ||||||
Available-for-sale financial assets | 3,647,366 | 285,177 | ||||||
Total assets measured at fair value | ¥ | 8,384,787 | ¥ | 300,588 | ||||
As a percentage of total assets measured at fair value | 3.58% | |||||||
Liabilities: | ||||||||
Financial liabilities held for trading | 2,792 | – | ||||||
Derivative financial instruments | 3,751,432 | 32,112 | ||||||
Total liabilities measured at fair value | ¥ | 3,754,224 | ¥ | 32,112 | ||||
As a percentage of total liabilities measured at fair value | 0.86% |
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Available-for- | Net derivative | |||||||||||||||
sale financial | financial | |||||||||||||||
Trading assets | assets | instruments | Total | |||||||||||||
(Millions of yen) | ||||||||||||||||
As of April 1, 2009 | – | ¥ | 285,177 | ¥ | (16,701 | ) | ¥ | 268,476 | ||||||||
Gains and losses: | ||||||||||||||||
Profit or loss | 23 | (43,813 | ) | 2,050 | (41,740 | ) | ||||||||||
Other comprehensive income | – | 73,312 | – | 73,312 | ||||||||||||
Purchases | 434 | 86,955 | 208 | 87,597 | ||||||||||||
Sales | – | (179,739 | ) | (1,293 | ) | (181,032 | ) | |||||||||
Settlements | – | (19,167 | ) | 8,413 | (10,754 | ) | ||||||||||
Transfers into Level 3 | – | 6,521 | – | 6,521 | ||||||||||||
Transfers out of Level 3 | – | (11,996 | ) | – | (11,996 | ) | ||||||||||
As of March 31, 2010 | ¥ | 457 | ¥ | 197,250 | ¥ | (7,323 | ) | ¥ | 190,384 | |||||||
• | Purchases of ¥83,938 million in equity products, which primarily consisted of investment funds. | |
• | Sales and settlements of ¥65,378 million due to the disposal of denominated ABSs and sales of ¥126,628 million due to the disposal of domestic and foreign investment funds. | |
• | Transfers into Level 3 were largely due to the de-consolidation of SPEs that were consolidated in the prior year. The SPEs were de-consolidated due to a reduction in the equity interests held by STB and the interests in these de-consolidated SPEs are recorded as investment securities as of March 31, 2010. | |
• | Transfers out of Level 3 principally consisted of investment-grade ABSs transferred due to an increase in liquidity of these securities and the improved observability of market transactions. Additionally, transfers out of Level 3 also included an investment security that was not subject to consolidation in the prior year, but is consolidated in the current year. |
• | net gain of ¥1,446 million primarily relating to credit derivatives, which was partially offset by losses relating to equity derivatives; and | |
• | settlement of ¥8,272 million of credit derivatives. |
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As of March 31, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Net unrealized | Net unrealized | |||||||||||||||
Fair value | gains (losses) | Fair value | gains (losses) | |||||||||||||
(Millions of yen) | ||||||||||||||||
Residential mortgage backed securities, or RMBSs, other than Subprime | ¥ | 14,466 | ¥ | (2,150 | ) | ¥ | 19,087 | ¥ | (15,829 | ) | ||||||
Subprime related RMBS | – | – | 4,124 | (5,374 | ) | |||||||||||
Commercial mortgage backed securities, or CMBSs | 11,695 | (2,501 | ) | 17,749 | (9,732 | ) | ||||||||||
Certificates for amortizing revolving debts, or CARDS | 2,746 | (44 | ) | 4,197 | (3,220 | ) | ||||||||||
CLOs | – | – | 29 | (265 | ) | |||||||||||
Other ABSs | 176 | (2 | ) | 19,434 | (8,923 | ) | ||||||||||
Mezzanine CDOs | – | – | 3,412 | (15,700 | ) | |||||||||||
Synthetic CDOs | – | – | 9,313 | 4 | ||||||||||||
ABS-CDOs | 170 | (91 | ) | 2,602 | (3,815 | ) | ||||||||||
CLO equities | 3,938 | 2,445 | 351 | – | ||||||||||||
Structured investment vehicles, or SIV, Capital notes | 31 | – | 457 | (104 | ) | |||||||||||
Total | ¥ | 33,222 | ¥ | (2,343 | ) | ¥ | 80,755 | ¥ | (62,958 | ) | ||||||
Fiscal year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Interest income | ¥ | 293,994 | ¥ | 391,948 | ||||
Interest expenses | 107,893 | 195,744 | ||||||
Net interest income | 186,101 | 196,204 | ||||||
Provision for credit losses | 27,729 | 97,105 | ||||||
Net interest income after provision for credit losses | 158,372 | 99,099 | ||||||
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Fiscal year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Fee and commission income | 147,929 | 146,360 | ||||||
Fee and commission expenses | 26,321 | 26,579 | ||||||
Net fee and commission income | 121,608 | 119,781 | ||||||
Net gains (losses) on financial instruments held for trading | 83,508 | (56,293 | ) | |||||
Net other operating income | 35,067 | 222,946 | ||||||
Other income | 118,575 | 166,653 | ||||||
Total income | 398,555 | 385,533 | ||||||
Impairment losses on investment securities | 16,595 | 113,423 | ||||||
General and administration expenses | 201,476 | 193,172 | ||||||
Other expenses | 35,202 | 39,444 | ||||||
Operating expenses | 253,273 | 346,039 | ||||||
Share of gains of associates and joint ventures | 1,436 | 2,285 | ||||||
Profit before income tax expenses | 146,718 | 41,779 | ||||||
Income tax expenses | 64,604 | 26,499 | ||||||
Net profit | ¥ | 82,114 | ¥ | 15,280 | ||||
Net profit attributable to: | ||||||||
Equity holders of the Sumitomo Trust | 69,334 | 6,891 | ||||||
Minority interest | 12,780 | 8,389 | ||||||
Net profit | ¥ | 82,114 | ¥ | 15,280 | ||||
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Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Cash and deposits with banks | ¥ | 1,522 | ¥ | 10,840 | ||||
Call loans | 239 | 2,710 | ||||||
Cash collateral on securities borrowed | 348 | 291 | ||||||
Investment securities | 53,976 | 99,362 | ||||||
Loans and advances | 234,409 | 273,219 | ||||||
Others | 3,500 | 5,526 | ||||||
Total | ¥ | 293,994 | ¥ | 391,948 | ||||
Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Deposits | ¥ | 76,410 | ¥ | 118,003 | ||||
Call money | 696 | 3,588 | ||||||
Cash collateral on securities lent and repurchase agreement | 2,580 | 29,383 | ||||||
Debt securities issued | 15,860 | 27,316 | ||||||
Borrowed funds | 8,576 | 11,939 | ||||||
Others | 3,771 | 5,515 | ||||||
Total | ¥ | 107,893 | ¥ | 195,744 | ||||
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Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Fee and commission income | ||||||||
Trust fees | ¥ | 47,445 | ¥ | 53,758 | ||||
Fees from asset management services | 24,388 | 9,473 | ||||||
Fees from securities custody services | 10,898 | 13,103 | ||||||
Subtotal | 82,731 | 76,334 | ||||||
Fees from stock transfer and real estate related services | 34,191 | 38,407 | ||||||
Fees from security related business | 11,270 | 10,921 | ||||||
Fees from banking business | 9,533 | 9,021 | ||||||
Others | 10,204 | 11,677 | ||||||
Total fee and commission income | ¥ | 147,929 | ¥ | 146,360 | ||||
Fee and commission expenses | 26,321 | 26,579 | ||||||
Net fee and commission income | ¥ | 121,608 | ¥ | 119,781 | ||||
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Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Debt securities | ¥ | 2,055 | ¥ | 3,397 | ||||
Equity securities | 5,751 | (1,102 | ) | |||||
Derivatives | 75,702 | (58,588 | ) | |||||
Total | ¥ | 83,508 | ¥ | (56,293 | ) | |||
Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Financial assets classified asavailable-for-sale | ||||||||
Net (losses) gains on disposal of debt securities | ¥ | (28,760 | ) | ¥ | 107,300 | |||
Net gains on disposal of equity securities | 22,667 | 11,746 | ||||||
Dividends | 18,957 | 47,916 | ||||||
Subtotal | ¥ | 12,864 | ¥ | 166,962 | ||||
Financial assets classified as loans and receivables | ||||||||
Net gains (losses) on disposal of debt securities | 108 | (6 | ) | |||||
Others | – | 606 | ||||||
Subtotal | ¥ | 108 | ¥ | 600 | ||||
Operating lease income | 22,349 | 20,920 | ||||||
Gains on sale of securities contributed to employee retirement benefit trust | – | 21,538 | ||||||
Gains on retirement of perpetual subordinated bonds | 9,083 | – | ||||||
Foreign exchange (losses) gains | (23,472 | ) | 1,227 | |||||
Others | 14,135 | 11,699 | ||||||
Subtotal | ¥ | 22,095 | ¥ | 55,384 | ||||
Total | ¥ | 35,067 | ¥ | 222,946 | ||||
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Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Investment securities classified as available for sale | ||||||||
Debt securities | ¥ | 1,384 | ¥ | 8,778 | ||||
Equity securities | 15,144 | 103,311 | ||||||
Subtotal | ¥ | 16,528 | ¥ | 112,089 | ||||
Investment securities classified as loans and receivables | ||||||||
Debt securities | 67 | 1,334 | ||||||
Subtotal | ¥ | 67 | ¥ | 1,334 | ||||
Total | ¥ | 16,595 | ¥ | 113,423 | ||||
Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Wages and salaries | ¥ | 76,728 | ¥ | 74,787 | ||||
Retirement benefits | 395 | 274 | ||||||
Social security and other personnel costs | 12,773 | 13,889 | ||||||
Pension costs | ||||||||
Defined contribution plan | 216 | 124 | ||||||
Defined benefit plan | 2,249 | (1,138 | ) | |||||
Total personnel cost | ¥ | 92,361 | ¥ | 87,936 | ||||
IT and software cost | 13,798 | 15,631 | ||||||
Occupancy, furniture and equipment | 23,808 | 23,079 | ||||||
Communication | 5,603 | 6,320 | ||||||
Research expenses | 5,770 | 1,071 | ||||||
Marketing and public relations | 4,029 | 5,248 | ||||||
Taxes other than income tax expenses | 6,260 | 6,328 | ||||||
Outsourcing expenses | 4,254 | 4,143 | ||||||
Office supplies | 6,456 | 6,710 | ||||||
Others | 19,428 | 19,366 | ||||||
Total operating and administration expenses | ¥ | 89,406 | ¥ | 87,896 | ||||
Depreciation of property and equipment | 6,196 | 5,837 | ||||||
Amortization of other intangible assets | 13,513 | 11,503 | ||||||
Total depreciation and amortization | ¥ | 19,709 | ¥ | 17,340 | ||||
Total | ¥ | 201,476 | ¥ | 193,172 | ||||
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Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Impairment of property and equipment, investment property and intangible assets | ¥ | 14,845 | ¥ | 17,306 | ||||
Depreciation of operating lease assets | 5,905 | 7,408 | ||||||
Professional service fees | 3,125 | 5,910 | ||||||
Others | 11,327 | 8,820 | ||||||
Total | ¥ | 35,202 | ¥ | 39,444 | ||||
Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Current tax expenses: | ||||||||
Tax expenses on income for the reporting period | ¥ | 16,166 | ¥ | 46,185 | ||||
Deferred tax: | ||||||||
Origination and reversal of temporary differences | 48,438 | (19,686 | ) | |||||
Income tax expenses | ¥ | 64,604 | ¥ | 26,499 | ||||
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Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Profit before income tax expenses | ¥ | 146,718 | ¥ | 41,779 | ||||
Tax calculated at the Japan domestic tax rate of 40.6 % for the years ended March 31, 2010 and 2009 | 59,567 | 16,962 | ||||||
Effect of: | ||||||||
Deferred tax assets not recognized | 12,527 | 10,257 | ||||||
Non-taxable dividend income | (2,559 | ) | (1,598 | ) | ||||
Others | (4,931 | ) | 878 | |||||
Income tax expenses | ¥ | 64,604 | ¥ | 26,499 | ||||
Retail | Wholesale | |||||||||||||||||||||||
Financial | Financial | Global | Fiduciary | |||||||||||||||||||||
Services | Services | Markets | Services | Real Estate | Total | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||
Year ended March 31, 2010 | ||||||||||||||||||||||||
Net revenue | ¥ | 80,987 | ¥ | 156,898 | ¥ | 77,902 | ¥ | 69,593 | ¥ | 18,952 | ¥ | 404,332 | ||||||||||||
Operating expenses | 62,844 | 54,783 | 10,854 | 45,343 | 14,902 | 188,726 | ||||||||||||||||||
Reportable segment operating profit | ¥ | 18,143 | ¥ | 102,115 | ¥ | 67,048 | ¥ | 24,250 | ¥ | 4,050 | ¥ | 215,606 | ||||||||||||
Year ended March 31, 2009 | ||||||||||||||||||||||||
Net revenue | ¥ | 84,302 | ¥ | 155,829 | ¥ | 142,311 | ¥ | 62,775 | ¥ | 21,868 | ¥ | 467,085 | ||||||||||||
Operating expenses | 61,728 | 60,580 | 11,611 | 31,430 | 16,222 | 181,571 | ||||||||||||||||||
Reportable segment operating profit | ¥ | 22,574 | ¥ | 95,249 | ¥ | 130,700 | ¥ | 31,345 | ¥ | 5,646 | ¥ | 285,514 | ||||||||||||
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Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Reportable segment | ¥ | 215,606 | ¥ | 285,514 | ||||
Credit cost | (6,149 | ) | (170,099 | ) | ||||
Capital cost | (19,143 | ) | (23,800 | ) | ||||
Head office cost | (12,640 | ) | (13,838 | ) | ||||
Past service cost and amortization of net actuarial losses | (16,569 | ) | (9,901 | ) | ||||
Equity related losses | (19,181 | ) | (38,516 | ) | ||||
Gain on contribution of securities to retirement benefit trust | – | 21,538 | ||||||
Dividend received from strategic investment | 20,975 | 11,300 | ||||||
Impairment of goodwill | (34,438 | ) | – | |||||
Other | 4,697 | (8,632 | ) | |||||
Profit before income tax expenses (Japanese GAAP) | 133,158 | 53,566 | ||||||
Adjustments from Japanese GAAP to IFRS | 13,560 | (11,787 | ) | |||||
Profit before income tax expenses | ¥ | 146,718 | ¥ | 41,779 | ||||
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Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Income from operations in Japan | ¥ | 370,406 | ¥ | 466,911 | ||||
Income from operations outside Japan | 55,878 | 15,727 | ||||||
Consolidated total income, excluding provision for credit losses | ¥ | 426,284 | ¥ | 482,638 | ||||
As of March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Japan | ¥ | 373,726 | ¥ | 309,997 | ||||
Foreign countries | 1,712 | 1,605 | ||||||
Total | ¥ | 375,438 | ¥ | 311,602 | ||||
As of March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Cash and deposits with banks | ¥ | 1,027,819 | ¥ | 668,184 | ||||
Call loans | 112,455 | 29,819 | ||||||
Cash collateral on securities borrowed | – | 295,942 | ||||||
Financial assets held for trading | 551,166 | 710,082 | ||||||
Derivative financial instruments | 3,130,994 | 4,027,339 | ||||||
Investment securities | 3,949,512 | 4,790,073 | ||||||
Loans and advances | 13,780,823 | 13,494,699 | ||||||
Investment in associates and joint ventures | 48,399 | 33,847 | ||||||
Property and equipment | 151,081 | 153,013 | ||||||
Investment property | 66,028 | 72,045 | ||||||
Intangible assets | 158,329 | 86,544 | ||||||
Deferred tax assets | 80,548 | 212,645 | ||||||
Other assets | 385,015 | 386,497 | ||||||
Total assets | ¥ | 23,442,169 | ¥ | 24,960,729 | ||||
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As of March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Equity securities | ||||||||
Available-for-sale | ¥ | 672,155 | ¥ | 603,763 | ||||
Debt securities | ||||||||
Available-for-sale | 2,312,206 | 3,043,603 | ||||||
Loans and receivables | 705,593 | 786,433 | ||||||
Held-to-maturity | 259,558 | 356,274 | ||||||
Subtotal | ¥ | 3,277,357 | ¥ | 4,186,310 | ||||
Total | ¥ | 3,949,512 | ¥ | 4,790,073 | ||||
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As of March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Equity securities | ||||||||
Listed | ¥ | 514,918 | ¥ | 417,934 | ||||
Unlisted | 157,237 | 185,829 | ||||||
Equity securities total | ¥ | 672,155 | ¥ | 603,763 | ||||
Debt securities | ||||||||
Government bonds | 1,905,851 | 2,590,788 | ||||||
Municipal bonds | 11,822 | 11,758 | ||||||
Corporate bonds | 394,533 | 441,057 | ||||||
Debt securities total | ¥ | 2,312,206 | ¥ | 3,043,603 | ||||
Total | ¥ | 2,984,361 | ¥ | 3,647,366 | ||||
As of March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Debt securities | ||||||||
Corporate bonds | ¥ | 705,593 | ¥ | 786,433 | ||||
Total | ¥ | 705,593 | ¥ | 786,433 | ||||
As of March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Debt securities | ||||||||
Government bonds | ¥ | 236,269 | ¥ | 331,932 | ||||
Municipal bonds | – | 50 | ||||||
Corporate bonds | 23,289 | 24,292 | ||||||
Total | ¥ | 259,558 | ¥ | 356,274 | ||||
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As of March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Deposits | ¥ | 14,585,719 | ¥ | 14,170,297 | ||||
Call money | 79,519 | 133,182 | ||||||
Cash collateral on securities lent and repurchase agreements | 601,787 | 1,236,776 | ||||||
Financial liabilities held for trading | 7,386 | 2,792 | ||||||
Derivative financial instruments | 2,827,439 | 3,751,432 | ||||||
Due to trust accounts | 83,337 | 77,578 | ||||||
Principal guaranteed trust certificates | 655,047 | 762,484 | ||||||
Debt securities issued | 1,186,808 | 1,465,823 | ||||||
Borrowed funds | 1,383,207 | 1,540,360 | ||||||
Current tax payable | 8,169 | 9,294 | ||||||
Deferred tax liabilities | 17,669 | 4,434 | ||||||
Retirement benefit obligations | 9,204 | 8,632 | ||||||
Other liabilities | 555,410 | 556,440 | ||||||
Total liabilities | ¥ | 22,000,701 | ¥ | 23,719,524 | ||||
Equity attributable to equity holders of the Sumitomo Trust | ||||||||
Share capital | 342,037 | 287,537 | ||||||
Capital surplus | 297,052 | 242,556 | ||||||
Retained earnings | 429,096 | 370,988 | ||||||
Other reserves | 70,905 | (53,369 | ) | |||||
Treasury shares | (465 | ) | (454 | ) | ||||
Total equity attributable to equity holders of the Sumitomo Trust | ¥ | 1,138,625 | ¥ | 847,258 | ||||
Minority interest | 302,843 | 393,947 | ||||||
Total equity | ¥ | 1,441,468 | ¥ | 1,241,205 | ||||
Total liabilities and equity | ¥ | 23,442,169 | ¥ | 24,960,729 | ||||
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Ending balances | Average balances | |||||||
(Millions of yen) | ||||||||
Cash collateral on securities lent and repurchase agreements | ||||||||
For the quarter ended: | ||||||||
March 31, 2008 | ¥ | 922,546 | ¥ | 1,362,984 | ||||
June 30, 2008 | 1,213,135 | 939,521 | ||||||
September 30, 2008 | 1,581,039 | 1,441,536 | ||||||
December 31, 2008 | 1,646,646 | 1,936,121 | ||||||
March 31, 2009 | 1,236,776 | 1,476,326 | ||||||
June 30, 2009 | 1,192,129 | 1,058,489 | ||||||
September 30, 2009 | 972,447 | 945,666 | ||||||
December 31, 2009 | 969,634 | 898,746 | ||||||
March 31, 2010 | 601,787 | 634,245 |
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As of March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Loans and advances | ¥ | 13,780,823 | ¥ | 13,494,699 | ||||
Deposits | (14,585,719 | ) | (14,170,297 | ) | ||||
Deposits in excess of loans and advances | ¥ | (804,896 | ) | ¥ | (675,598 | ) | ||
Long-term | Short-term | Fundamental Strength | ||||
S&P | A+ | A-1 | B | |||
Moody’s | Aa3 | P-1 | C | |||
Fitch | A | F-1 | B/C |
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Fiscal year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Consolidated SPE’s total assets | ||||||||
ABCP/ABL conduits | ¥ | 485,111 | ¥ | 560,323 | ||||
Real estate investment vehicles | 66,354 | 70,948 | ||||||
Investment funds | 170,529 | 127,137 | ||||||
Securitizations | 353,164 | 376,317 | ||||||
Principal-guaranteed trust | 280,163 | 222,526 | ||||||
Others | 39,153 | 33,674 | ||||||
Total | ¥ | 1,394,474 | ¥ | 1,390,925 | ||||
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Payments due by period as of March 31, 2010 | ||||||||||||||||||||
Less than | 1-3 | More than 5 | ||||||||||||||||||
Total | 1 year | years | 3-5 years | years | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
Time deposit obligations | ¥ | 10,080,439 | ¥ | 5,347,359 | ¥ | 3,117,927 | ¥ | 1,610,620 | ¥ | 4,533 | ||||||||||
Certificate deposit obligations | 2,350,884 | 2,338,884 | 12,000 | – | – | |||||||||||||||
Long-term debt obligations | 2,407,383 | 573,394 | 458,862 | 304,880 | 1,070,247 | |||||||||||||||
Operating lease obligations | 16,599 | 7,082 | 8,127 | 1,374 | 16 | |||||||||||||||
Purchase obligations | 18,347 | 4,103 | 14,244 | – | – |
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• | the measurement of credit risk amounts; | |
• | the monitoring of credit portfolios; | |
• | the validation of the appropriateness of self-assessment, write-offs and reserves; and | |
• | the verification of the appropriateness of the internal ratings system. |
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• | Sound: Obligors for which business conditions are favorable and are deemed not to have any particular problems in terms of their financial position. | |
• | Requiring careful monitoring: Obligors that require observation going forward because of either concerns over their ability to meet the lending terms due to their financial position or performance or weak or unstable business conditions. | |
• | 3-months delinquent / restructured: Among obligors requiring careful monitoring, those who subsequently had their lending terms relaxed in order to facilitate rehabilitation of the obligors and performance on the loans, or those in default of payment obligations such as failure to make principal or interest payments for over 3 months. | |
• | At risk of bankruptcy: Obligors that are not yet bankrupt but are in financial difficulties and are deemed likely to become bankrupt in the future because of failure to make progress in implementing their management improvement plans or other measures (including obligors that are receiving ongoing support from financial institutions). | |
• | Virtually bankrupt: Obligors that have not yet become legally or formally bankrupt but are effectively insolvent because they are in serious financial difficulties and are deemed to be not capable of restructuring. | |
• | Legally Bankrupt: Obligors that have become legally or formally bankrupt. |
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Internal | Long-term Rating1 | |||||||||||
rating | Classification of obligors | Moody’s | S&P | R&I | JCR | |||||||
1 | Aaa | AAA | AAA | AAA | ||||||||
2 | Aa1 Aa2 Aa3 | AA+ AA AA- | AAA | AAA | ||||||||
3 | A1 A2 A3 | A+ A A- | AA+ AA AA- | AAA AA+ AA | ||||||||
4 | Sound | Baa1 Baa2 Baa3 | BBB+ BBB BBB- | A+ A A- | AA- A+ A | |||||||
5+ | Ba1 | BB+ | BBB+ | A- | ||||||||
5 | Ba2 | BB | BBB | BBB+ | ||||||||
5– | Ba3 | BB- | BBB- | BBB | ||||||||
6+ | B1 | B+ | BB+ | BBB- | ||||||||
6 | B2 | B | BB | BB+ | ||||||||
6- | ||||||||||||
7 | Requiring careful monitoring | |||||||||||
8 | B3 or below | B- or below | BB- or below | BB or below | ||||||||
8- | 3-months delinquent/restructured | |||||||||||
9 | At risk of bankruptcy | |||||||||||
10 | Legally bankrupt/virtually bankrupt | |||||||||||
1. | Moody’s, S&P, R&I (Rating and Investment Information, Inc.), and JCR (Japan Credit Rating Agency, Ltd.) are external credit rating agencies. |
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Loans and advances | |||||||||||||||
As of March 31, 2010 | As of March 31, 2009 | As of April 1, 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Assets at amortized cost | |||||||||||||||
Gross amount | ¥ | 13,883,591 | ¥ | 13,609,320 | ¥ | 13,425,575 | |||||||||
Allowance for loan losses | (102,768 | ) | (114,621 | ) | (60,707 | ) | |||||||||
Carrying amount | 13,780,823 | 13,494,699 | 13,364,868 | ||||||||||||
Individually impaired: | |||||||||||||||
Grade 8-: 3 months delinquent / restructured | 139,272 | 34,858 | 43,090 | ||||||||||||
Grade 9: At risk of bankruptcy | 82,821 | 129,655 | 55,058 | ||||||||||||
Grade 10: Legally bankrupt and virtually bankrupt | 50,884 | 67,451 | 21,090 | ||||||||||||
Gross amount | 272,977 | 231,964 | 119,238 | ||||||||||||
Allowance for loan losses | (71,174 | ) | (75,105 | ) | (24,586 | ) | |||||||||
Carrying amount | 201,803 | 156,859 | 94,652 | ||||||||||||
Collectively impaired: | |||||||||||||||
Past due but not individually impaired: | |||||||||||||||
Grade 1-6: Sound | 12,705 | 12,777 | 15,612 | ||||||||||||
Grade 7-8: Requiring careful monitoring | 22,533 | 37,353 | 37,634 | ||||||||||||
Gross amount | 35,238 | 50,130 | 53,246 | ||||||||||||
Past due comprises: | |||||||||||||||
Within 30 days | 23,254 | 36,203 | 36,619 | ||||||||||||
30-90 days | 10,533 | 11,188 | 14,234 | ||||||||||||
More than 90 days | 1,451 | 2,739 | 2,393 | ||||||||||||
Gross amount | 35,238 | 50,130 | 53,246 | ||||||||||||
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Loans and advances | |||||||||||||||
As of March 31, 2010 | As of March 31, 2009 | As of April 1, 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Neither past due nor individually impaired: | |||||||||||||||
Grade 1-6: Sound | 12,899,201 | 12,397,150 | 12,442,297 | ||||||||||||
Grade 7-8: Requiring careful monitoring | 676,175 | 930,076 | 810,794 | ||||||||||||
Gross amount | 13,575,376 | 13,327,226 | 13,253,091 | ||||||||||||
�� | |||||||||||||||
Includes restructured loan terms which would have been impaired or past due otherwise | 78,724 | 96,830 | 101,276 | ||||||||||||
Gross amount | 13,610,614 | 13,377,356 | 13,306,337 | ||||||||||||
Allowance for loan losses | (31,594 | ) | (39,516 | ) | (36,121 | ) | |||||||||
Carrying amount | 13,579,020 | 13,337,840 | 13,270,216 | ||||||||||||
Total carrying amount | ¥ | 13,780,823 | ¥ | 13,494,699 | ¥ | 13,364,868 | |||||||||
Debt securities | |||||||||||||||
As of March 31, 2010 | As of March 31, 2009 | As of April 1, 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Assets at amortized cost | |||||||||||||||
Gross amount | ¥ | 965,151 | ¥ | 1,142,707 | ¥ | 1,217,594 | |||||||||
Allowance for impairment | – | – | – | ||||||||||||
Carrying amount | 965,151 | 1,142,707 | 1,217,594 | ||||||||||||
Individually impaired: | |||||||||||||||
Grade 8-: 3 months delinquent / restructured | – | – | – | ||||||||||||
Grade 9: At risk of bankruptcy | 105 | 6,716 | – | ||||||||||||
Grade 10: Legally bankrupt and virtually bankrupt | – | – | – | ||||||||||||
Gross amount | 105 | 6,716 | – | ||||||||||||
Allowance for impairment | – | – | – | ||||||||||||
Carrying amount | 105 | 6,716 | – | ||||||||||||
Collectively impaired: | |||||||||||||||
Past due but not individually impaired: | |||||||||||||||
Grade 1-6: Sound | – | – | – | ||||||||||||
Grade 7-8: Requiring careful monitoring | – | – | – | ||||||||||||
Gross amount | – | – | – | ||||||||||||
Past due comprises: | |||||||||||||||
Within 30 days | – | – | – | ||||||||||||
30-90 days | – | – | – | ||||||||||||
More than 90 days | – | – | – | ||||||||||||
Gross amount | – | – | – | ||||||||||||
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Debt securities | |||||||||||||||
As of March 31, 2010 | As of March 31, 2009 | As of April 1, 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Neither past due nor individually impaired: | |||||||||||||||
Grade 1-6: Sound | 960,875 | 1,135,065 | 1,217,594 | ||||||||||||
Grade 7-8: Requiring careful monitoring | 4,171 | 926 | – | ||||||||||||
Gross amount | 965,046 | 1,135,991 | 1,217,594 | ||||||||||||
Includes restructured loan terms which would have been impaired or past due otherwise | – | – | – | ||||||||||||
Gross amount | 965,046 | 1,135,991 | 1,217,594 | ||||||||||||
Allowance for impairment | – | – | – | ||||||||||||
Carrying amount | 965,046 | 1,135,991 | 1,217,594 | ||||||||||||
Total carrying amount | ¥ | 965,151 | ¥ | 1,142,707 | ¥ | 1,217,594 | |||||||||
Available-for-sale securities | |||||||||||||||
Individually impaired: | |||||||||||||||
Grade 8-: 3 months delinquent / restructured | 659 | – | – | ||||||||||||
Grade 9: At risk of bankruptcy | 32 | 540 | – | ||||||||||||
Grade 10: Legally bankrupt and virtually bankrupt | – | – | – | ||||||||||||
Carrying amount – fair value | 691 | 540 | – | ||||||||||||
Neither past due nor individually impaired: | |||||||||||||||
Grade 1-6: Sound | 2,311,503 | 3,037,810 | 2,585,736 | ||||||||||||
Grade 7-8: Requiring careful monitoring | 12 | 5,253 | 1,579 | ||||||||||||
Carrying amount – fair value | 2,311,515 | 3,043,063 | 2,587,315 | ||||||||||||
Total carrying amount | ¥ | 2,312,206 | ¥ | 3,043,603 | ¥ | 2,587,315 | |||||||||
Assets at fair value through profit or loss | |||||||||||||||
Neither past due nor individually impaired: | |||||||||||||||
Grade 1-6: Sound | 460,693 | 670,643 | 483,902 | ||||||||||||
Grade 7-8: Requiring careful monitoring | – | – | – | ||||||||||||
Grade 8-: 3 months delinquent / restructured | – | – | – | ||||||||||||
Grade 9: At risk of bankruptcy | – | – | – | ||||||||||||
Grade 10: Legally bankrupt and virtually bankrupt | – | – | – | ||||||||||||
Carrying amount – fair value | 460,693 | 670,643 | 483,902 | ||||||||||||
Total carrying amount | ¥ | 460,693 | ¥ | 670,643 | ¥ | 483,902 | |||||||||
Non-marketable equity securities | |||||||||||||||
As of March 31, 2010 | As of March 31, 2009 | As of April 1, 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Individually impaired: | |||||||||||||||
Grade 8-: 3 months delinquent / restructured | ¥ | 1,152 | ¥ | 18 | ¥ | 26 | |||||||||
Grade 9: At risk of bankruptcy | 512 | 18 | 29 | ||||||||||||
Grade 10: Legally bankrupt and virtually bankrupt | 0 | 0 | 83 | ||||||||||||
Carrying amount | 1,664 | 36 | 138 | ||||||||||||
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Non-marketable equity securities | |||||||||||||||
As of March 31, 2010 | As of March 31, 2009 | As of April 1, 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Neither past due nor individually impaired: | |||||||||||||||
Grade 1-6: Sound | 154,764 | 184,267 | 271,976 | ||||||||||||
Grade 7-8: Requiring careful monitoring | 809 | 1,526 | 2,466 | ||||||||||||
Carrying amount – fair value | 155,573 | 185,793 | 274,442 | ||||||||||||
Total carrying amount | ¥ | 157,237 | ¥ | 185,829 | ¥ | 274,580 | |||||||||
Assets at fair value through profit or loss | |||||||||||||||
Neither past due nor individually impaired: | |||||||||||||||
Grade 1-6: Sound | 457 | – | 9,628 | ||||||||||||
Grade 7-8: Requiring careful monitoring | – | – | – | ||||||||||||
Grade 8-: 3 months delinquent / restructured | – | – | – | ||||||||||||
Grade 9: At risk of bankruptcy | – | – | – | ||||||||||||
Grade 10: Legally bankrupt and virtually bankrupt | – | – | – | ||||||||||||
Carrying amount – fair value | 457 | – | 9,628 | ||||||||||||
Total carrying amount | ¥ | 457 | ¥ | – | ¥ | 9,628 | |||||||||
• | 98.0% of the loans and advances portfolio is categorized in the top two categories, sound or requiring careful monitoring, of the internal rating system (2009: 98.3% and 2008: 99.1%); | |
• | 97.8% of the loans and advances portfolio are considered to be neither past due nor impaired (2009: 97.9% and 2008: 98.7%); | |
• | 99.8% of the debt securities is categorized in the top categories, sound of the internal rating system (2009: 99.7% and 2008: 99.9%); and | |
• | 98.4% of the non-marketable securities is categorized in the top categories, sound of the internal rating system (2009: 99.2% and 2008: 99.1%). |
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Loans and advances | ||||||||||
Gross | Net | |||||||||
(Millions of yen) | ||||||||||
March 31, 2010 | ||||||||||
Grade 8-: 3 months delinquent/restructured | ¥ | 139,272 | ¥ | 128,031 | ||||||
Grade 9: At risk of bankruptcy | 82,821 | 41,157 | ||||||||
Grade 10: Legally bankrupt and virtually bankrupt | 50,884 | 32,615 | ||||||||
Total | ¥ | 272,977 | ¥ | 201,803 | ||||||
March 31, 2009 | ||||||||||
Grade 8-: 3 months delinquent /restructured | 34,858 | 33,767 | ||||||||
Grade 9: At risk of bankruptcy | 129,655 | 72,102 | ||||||||
Grade 10: Legally bankrupt and virtually bankrupt | 67,451 | 50,990 | ||||||||
Total | ¥ | 231,964 | ¥ | 156,859 | ||||||
April 1, 2008 | ||||||||||
Grade 8-: 3 months delinquent /restructured | 43,090 | 37,745 | ||||||||
Grade 9: At risk of bankruptcy | 55,058 | 41,843 | ||||||||
Grade 10: Legally bankrupt and virtually bankrupt | 21,090 | 15,064 | ||||||||
Total | ¥ | 119,238 | ¥ | 94,652 | ||||||
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Loans and advances | |||||||||||||||
As of March 31, 2010 | As of March 31, 2009 | As of April 1, 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Against individually impaired: | |||||||||||||||
Securities | ¥ | 6,060 | ¥ | 2,068 | ¥ | 137 | |||||||||
Property | 103,019 | 129,985 | 71,333 | ||||||||||||
Guarantee | 7,291 | 6,852 | 7,077 | ||||||||||||
Others | 787 | 220 | 230 | ||||||||||||
Total | ¥ | 117,157 | ¥ | 139,125 | ¥ | 78,777 | |||||||||
Against past due but not individually impaired: | |||||||||||||||
Securities | – | – | – | ||||||||||||
Property | 8,165 | 11,812 | 9,391 | ||||||||||||
Guarantee | 646 | 1,035 | 1,077 | ||||||||||||
Others | – | – | – | ||||||||||||
Total | ¥ | 8,811 | ¥ | 12,847 | ¥ | 10,468 | |||||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
On-balance sheet items | |||||||||||||||
Deposits with banks | ¥ | 962,115 | ¥ | 609,569 | ¥ | 873,472 | |||||||||
Call loans | 112,455 | 29,819 | 156,067 | ||||||||||||
Cash collateral on securities borrowed | – | 295,942 | 152,240 | ||||||||||||
Derivative financial instruments | 3,130,994 | 4,027,339 | 2,274,952 | ||||||||||||
Off-balance sheet items | |||||||||||||||
Loan commitments | 1,515,988 | 1,533,213 | 1,725,848 | ||||||||||||
Financial guarantees and other credit related contingent liabilities | 339,837 | 422,947 | 488,866 |
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• | Commercial bills before maturity that fully meet statutory requirements with settlement certainty; | |
• | Yen-denominated time deposits and deposits at notice with STB; | |
• | Beneficiary rights of principal of designated money in money trusts or beneficiary rights of principal and income of such trusts with STB; | |
• | Beneficiary certificates of loan trust with STB (both registered and bearer form); | |
• | Public and corporate bonds, listed stocks and securities investment trusts (bearer form); |
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• | Land or land and buildings located in Japan for manageability, easy to dispose of and with certain collateral quality; | |
• | Ships with certain collateral quality; | |
• | Foundations having good-quality, well-managed properties with settlement certainty in terms earning capacity; and | |
• | Claims payable by specific persons that meet certain requirements. |
• | Qualifying Financial Asset Collateral |
• | Netting of loans against deposits (limited to jurisdictions where netting is authorized and also based on judicial precedents, etc., with balancing-out agreements in place) | |
• | Legally valid bilateral netting agreements and credit enhancement by CSA, regarding derivatives transactions and repurchase agreement transactions | |
• | Listed securities (when accepting listed securities as qualifying financial assets collateral, STB takes into consideration the relationship between the obligor and the issuer of the securities) |
• | Qualifying Assets Collateral |
• | Qualifying real estate asset collateral (land only or land and accompanying buildings) | |
• | Other qualifying asset collateral (ships) |
• | Guarantee and Credit Derivatives |
• | STB accepts guarantees mainly from public-sector organizations and business enterprises (guarantors) and purchases credit derivatives mainly from financial institutions (protection |
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providers). Qualifying guarantors and protection providers are entities with sufficient creditworthiness as represented by a credit rating higher than a prescribed level, so that credit risk mitigation effects are ensured. |
Loans and advances | |||||||||||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | |||||||||||||
(Millions of yen) | |||||||||||||||
Gross amount | ¥ | 13,883,591 | ¥ | 13,609,320 | ¥ | 13,425,575 | |||||||||
Concentration by location: | |||||||||||||||
Japan | 13,472,794 | 13,048,988 | 12,572,546 | ||||||||||||
US | 188,919 | 321,382 | 585,473 | ||||||||||||
Other outside Japan | 221,878 | 238,950 | 267,556 | ||||||||||||
Gross amount | ¥ | 13,883,591 | ¥ | 13,609,320 | ¥ | 13,425,575 | |||||||||
Concentration by sector | |||||||||||||||
Domestic | |||||||||||||||
Manufacturing | 2,273,764 | 2,270,635 | 1,754,452 | ||||||||||||
Wholesale and retail | 1,174,563 | 1,223,230 | 1,208,238 | ||||||||||||
Finance and insurance | 1,545,931 | 1,446,838 | 1,671,914 | ||||||||||||
Real estate | 2,143,903 | 1,991,718 | 1,855,450 | ||||||||||||
Various services | 950,985 | 1,220,422 | 1,229,055 | ||||||||||||
Individuals | 2,466,693 | 2,442,919 | 2,294,464 | ||||||||||||
Others | 2,345,198 | 2,035,720 | 2,153,233 | ||||||||||||
Subtotal | 12,901,037 | 12,631,482 | 12,166,806 | ||||||||||||
Foreign | 982,554 | 977,838 | 1,258,769 | ||||||||||||
Gross amount | ¥ | 13,883,591 | ¥ | 13,609,320 | ¥ | 13,425,575 | |||||||||
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2010 | 2009 | |||||||||
(Billions of yen) | ||||||||||
As of March 31 | ¥ | 159 | ¥ | 155 | ||||||
Maximum for the period | 824 | 333 | ||||||||
Minimum for the period | (24 | ) | (12 | ) | ||||||
Upper limit | (550 | ) | (550 | ) |
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As of March 31, 2010 | ||||||||||||||||||||||||||||||
On | 0-3 | 3-12 | 1-3 | 3-5 | Over | |||||||||||||||||||||||||
Demand | months | months | years | years | 5 years | |||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||
Non-derivative liabilities | ||||||||||||||||||||||||||||||
Deposits | ¥ | 2,396,389 | ¥ | 4,315,939 | ¥ | 3,152,269 | ¥ | 3,150,712 | ¥ | 1,618,924 | ¥ | 4,556 | ||||||||||||||||||
Call money | – | 79,519 | – | – | – | – | ||||||||||||||||||||||||
Cash collateral on securities lent and repurchase agreements | – | 601,787 | – | – | – | – | ||||||||||||||||||||||||
Financial liabilities held for trading | 7,386 | – | – | – | – | – | ||||||||||||||||||||||||
Due to trust accounts | – | 83,337 | – | – | – | – | ||||||||||||||||||||||||
Principal guaranteed trust certificates | 164,861 | 114,040 | 165,330 | 142,188 | 69,308 | 195 | ||||||||||||||||||||||||
Debt securities issued | – | 543,187 | 27,905 | 37,150 | 115,530 | 560,857 | ||||||||||||||||||||||||
Borrowed funds | – | 476,645 | 98,941 | 325,922 | 157,472 | 389,538 | ||||||||||||||||||||||||
Other liabilities | 246,767 | 267,576 | – | – | – | – | ||||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||||
Derivatives settled gross: | ||||||||||||||||||||||||||||||
Outflow | 58,415 | 1,841,315 | 869,213 | 604,930 | 302,802 | 69,658 | ||||||||||||||||||||||||
Inflow | 55,496 | 1,795,956 | 835,807 | 579,281 | 292,525 | 66,230 | ||||||||||||||||||||||||
Derivatives settled net: | 1,368,425 | 76,733 | 396,337 | 621,327 | 187,925 | 64,143 | ||||||||||||||||||||||||
Unrecognized loan commitments | 1,515,988 | – | – | – | – | – | ||||||||||||||||||||||||
Financial guarantees and other credit-related contingent liabilities | 339,837 |
As of March 31, 2009 | ||||||||||||||||||||||||||||||
On | 0-3 | 3-12 | 1-3 | 3-5 | Over | |||||||||||||||||||||||||
Demand | months | months | years | years | 5 years | |||||||||||||||||||||||||
Non-derivative liabilities | ||||||||||||||||||||||||||||||
Deposits | ¥ | 2,148,076 | ¥ | 4,317,338 | ¥ | 2,905,379 | ¥ | 3,395,517 | ¥ | 1,480,352 | ¥ | 4,811 | ||||||||||||||||||
Call money | – | 133,182 | – | – | – | – | ||||||||||||||||||||||||
Cash collateral on securities lent and repurchase agreements | – | 1,236,776 | – | – | – | – | ||||||||||||||||||||||||
Financial liabilities held for trading | 2,792 | – | – | – | – | – | ||||||||||||||||||||||||
Due to trust accounts | – | 77,578 | – | – | – | – | ||||||||||||||||||||||||
Principal guaranteed trust certificates | 168,456 | 112,427 | 191,435 | 224,455 | 66,624 | 217 | ||||||||||||||||||||||||
Debt securities issued | – | 703,310 | 40,738 | 45,156 | 129,675 | 700,365 | ||||||||||||||||||||||||
Borrowed funds | 0 | 773,955 | 107,340 | 220,492 | 178,871 | 312,275 | ||||||||||||||||||||||||
Other liabilities | 276,794 | 251,096 | – | – | – | – | ||||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||||
Derivatives settled gross: | ||||||||||||||||||||||||||||||
Outflow | 97,025 | 2,355,920 | 1,867,023 | 882,050 | 413,164 | 294,647 | ||||||||||||||||||||||||
Inflow | 93,746 | 2,320,809 | 1,774,735 | 826,980 | 387,798 | 283,389 | ||||||||||||||||||||||||
Derivatives settled net: | 1,693,648 | 59,467 | 377,762 | 680,823 | 378,123 | 399,640 | ||||||||||||||||||||||||
Unrecognized loan commitments | 1,533,213 | – | – | – | – | – | ||||||||||||||||||||||||
Financial guarantees and other credit-related contingent liabilities | 422,947 | – | – | – | – | – |
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• | The stipulated holding period assumes that it is possible to hedge or dispose of positions within that period. This may not be the case for highly illiquid assets or in situations in which there is severe general market illiquidity. | |
• | A 99 % confidence interval does not reflect losses that may occur beyond this level. There is a one percent probability that losses could exceed the VaR. | |
• | VaR is calculated on anend-of-day basis and does not reflect exposures that may arise on positions during a trading day. | |
• | The use of historical data as a basis for determining the possible range of future outcomes may not always cover all possible scenarios, especially those of an exceptional nature. | |
• | The VaR measure is dependent upon STB’s position and the volatility of market prices. The VaR of an unchanged position reduces if market price volatility declines and vice versa. |
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• | Confidence interval: One-tailed 99% | |
• | Holding period: 1 business day | |
• | Observation period: 260 business days |
Year ended March 31 | ||||||||||||||||||||
As of March 31 | Average | Maximum | Minimum | |||||||||||||||||
(Billions of yen) | ||||||||||||||||||||
2010 | ||||||||||||||||||||
Actual VaR positions | ¥ | 0.7 | ¥ | 0.8 | ¥ | 1.5 | ¥ | 0.4 | ||||||||||||
VaR limits | 2.9 | |||||||||||||||||||
2009 | ||||||||||||||||||||
Actual VaR positions | 1.1 | 1.7 | 8.1 | 0.1 | ||||||||||||||||
VaR limits | 10.3 |
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Year ended March 31 | ||||||||||||||||||||
As of March 31 | Average | Maximum | Minimum | |||||||||||||||||
(Billions of yen) | ||||||||||||||||||||
2010 | ||||||||||||||||||||
Foreign currency and interest rate risk | ¥ | 19.2 | ¥ | 38.9 | ¥ | 71.6 | ¥ | 20.2 | ||||||||||||
Stock price and other risk | 139.5 | 165.4 | 202.9 | 119.3 | ||||||||||||||||
Actual overall VaR positions | ¥ | 158.7 | ¥ | 204.3 | ¥ | 274.5 | ¥ | 139.5 | ||||||||||||
Overall authorized VaR limit | 399.0 | |||||||||||||||||||
2009 | ||||||||||||||||||||
Foreign currency and interest rate risk | 92.7 | 101.0 | 136.8 | 61.6 | ||||||||||||||||
Stock price and other risk | 163.3 | 165.2 | 218.3 | 155.6 | ||||||||||||||||
Actual overall VaR positions | ¥ | 256.0 | ¥ | 266.2 | ¥ | 355.1 | ¥ | 217.2 | ||||||||||||
Overall authorized VaR limit | 466.5 |
• | Business processing risk managed by Operations Process Planning Department and Personnel Department. The risk of incurring losses arising from executives or employees neglecting to engage in proper business activities, or other incidents such as accident or fraud is managed by Operations Process Planning Department, except for internal fraud which is managed by the Personnel Department. | |
• | Information security risk managed by IT & Business Process Planning Department. The risk of incurring losses, owing to factors such as improper management of information of clients and the company, system failure or improper management of system development projects. | |
• | Compliance risk managed by Legal and Compliance Department. The risk of incurring losses for reasons such as penalties, claims or lawsuits arising from failure to comply with laws and regulations in Japan and abroad. |
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• | Human resource risk managed by Personnel Department. The risk of incurring losses due to issues such as unequal or unfair management of personnel (including issues related to compensation, benefits and release from employment), and harassment. | |
• | Event risk managed by Corporate Administrative Department. The risk of incurring losses arising from extraordinary situations such as natural disasters, war and criminal offenses. | |
• | Reputational risk managed by Corporate Risk Management Department. The risk of incurring losses due to a possible major impact on business as a result of deterioration in reputation for STB, owing to reasons such as mass media reports, rumors or speculation. |
• | conducts a self-risk assessment; | |
• | identifies operational risks in each operation in the form of scenarios; | |
• | estimates the amount and frequency of losses that may arise in each scenario (a situation that could have an impact on the management of STB); and | |
• | evaluates the extent of the impact. |
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• | draw up a capital plan based on the external environment (economic environment, market environment, etc.) and the internal environment (risk profile, operational conditions, etc.); | |
• | carry out the capital adequacy measures decided in the capital plan; | |
• | monitor the capital situation and evaluate the sufficiency level of capital adequacy as appropriate; and | |
• | improve capital and risk control based on the above evaluations. |
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• | Tier I capital, which includes common stock, capital surplus, retained earnings, treasury stock, translation reserve, minority interests after deduction for certain items, and non-cumulative preferred securities; and |
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• | Tier II capital, which includes perpetual subordinated bonds, subordinated term debt, and fixed term preferred stock. |
Fiscal Year Ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen, unless otherwise stated) | ||||||||
(The amounts and percentages in the table | ||||||||
are rounded down) | ||||||||
Tier I | ||||||||
Capital stock | ¥ | 342,037 | ¥ | 287,537 | ||||
Noncumulative perpetual preferred stock | 54,500 | – | ||||||
Deposit for subscriptions to shares | – | – | ||||||
Capital surplus | 297,052 | 242,555 | ||||||
Retained earnings | 505,443 | 463,345 | ||||||
Treasury stock | (465 | ) | (453 | ) | ||||
Deposit for subscriptions to treasury stock | – | – | ||||||
Expected distributed amount | (10,678 | ) | (2,511 | ) | ||||
Net unrealized loss onavailable-for-sale securities | (335 | ) | (109,615 | ) | ||||
Foreign currency translation adjustments | (9,922 | ) | (10,111 | ) | ||||
Share warrants | – | – | ||||||
Minority interests | 301,361 | 306,969 | ||||||
Noncumulative preferred securities issued by overseas special purpose companies | 280,000 | 280,000 | ||||||
Business rights equivalents | – | – | ||||||
Goodwill equivalents | (133,092 | ) | (106,980 | ) | ||||
Equivalent to intangible fixed assets recorded through business combination | – | – | ||||||
Equivalent to the increase in the capital associated with securitization transactions | (2,915 | ) | (1,062 | ) | ||||
Equivalent to 50% of the excess of expected loss over qualifying allowance | (22,141 | ) | (7,865 | ) | ||||
Total Tier I before deduction of deferred tax assets (aggregate sum of items above) | ¥ | 1,266,342 | ¥ | 1,061,806 | ||||
Deducted amounts of deferred tax assets | – | – | ||||||
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Fiscal Year Ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen, unless otherwise stated) | ||||||||
(The amounts and percentages in the table | ||||||||
are rounded down) | ||||||||
Total (A) | ¥ | 1,266,342 | ¥ | 1,061,806 | ||||
Noncumulative preferred securities attached withstep-up interest rate clause (a) | 156,000 | 156,000 | ||||||
Tier II | ||||||||
45% of net unrealized gain onavailable-for-sale securities | – | – | ||||||
45% of revaluation reserve for land | 505 | 614 | ||||||
General allowance for loan losses | 9,294 | 9,383 | ||||||
Excess of qualifying allowance over expected loss | – | – | ||||||
Debt capital | 596,823 | 673,625 | ||||||
Perpetual subordinated debt | 186,915 | 292,740 | ||||||
Subordinated term debt and fixed-term preferred stock | 409,907 | 380,885 | ||||||
Total | ¥ | 606,622 | ¥ | 683,624 | ||||
Included in capital (B) | 606,622 | 683,624 | ||||||
Tier III | ||||||||
Subordinated short-term debt | – | – | ||||||
Included in capital (C) | – | – | ||||||
Items for Deduction | ||||||||
Items for deduction (D) | 95,604 | 62,542 | ||||||
Total Qualifying Capital | ||||||||
((A) + (B) + (C) – (D) )(E) | ¥ | 1,777,360 | ¥ | 1,682,888 | ||||
Risk-Weighted Assets | ||||||||
Amount of credit risk-weighted assets (F) | 11,963,692 | 12,943,870 | ||||||
Amount of market risk equivalents (G) | 96,869 | 284,753 | ||||||
Amount of operational risk equivalents (H) | 770,806 | 682,848 | ||||||
Amount obtained by multiplying by 12.5 the excess of the amount obtained by multiplying the old required capital by the rate prescribed by the notification over the new required capital (I) | – | – | ||||||
Total ((F) + (G) + (H) + (I)) (J) | ¥ | 12,831,367 | ¥ | 13,911,473 | ||||
BIS Capital Adequacy Ratio = E/J x 100 (%) | 13.85 | 12.09 | ||||||
Tier I Capital Ratio = A/J x 100 (%) | 9.86 | 7.63 | ||||||
Ratio of Noncumulative Preferred Securities withStep-up Interest Rate Clauses to Tier I Capital = a/A x 100 (%) | 12.31 | 14.69 | ||||||
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Year Ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Interest income on interest-earning assets | ¥ | 282,915 | ¥ | 371,801 | ||||
Interest expenses on interest-bearing liabilities | 99,906 | 197,526 | ||||||
Net interest income | ¥ | 183,009 | ¥ | 174,275 | ||||
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Year ended March 31, | ||||||||||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||||||||||
(Millions of yen, except percentages) | ||||||||||||||||||||||||||||||||
Fiscal | Interest | Fiscal | Interest | |||||||||||||||||||||||||||||
year-end | Average | income/ | Average | year-end | Average | income/ | Average | |||||||||||||||||||||||||
balance | balance | expenses | rate | balance | balance | expenses | rate | |||||||||||||||||||||||||
Interest-earning asset | ¥ | 16,788,963 | ¥ | 16,682,913 | ¥ | 282,915 | 1.70 | % | ¥ | 17,050,918 | ¥ | 17,171,920 | ¥ | 371,801 | 2.17 | % | ||||||||||||||||
Loans and bills discounted | 11,686,629 | 11,113,675 | 177,986 | 1.60 | % | 11,229,604 | 10,915,019 | 207,679 | 1.90 | % | ||||||||||||||||||||||
Securities | 4,084,091 | 4,338,348 | 79,972 | 1.84 | % | 4,794,815 | 4,963,823 | 140,904 | 2.84 | % | ||||||||||||||||||||||
Call loans and bills bought | 86,485 | 105,162 | 230 | 0.22 | % | 9,597 | 177,793 | 2,479 | 1.39 | % | ||||||||||||||||||||||
Receivables under securities borrowing transactions | – | 259,658 | 347 | 0.13 | % | 295,942 | 106,509 | 289 | 0.27 | % | ||||||||||||||||||||||
Due from banks | 362,385 | 302,353 | 1,480 | 0.49 | % | 163,405 | 396,281 | 10,001 | 2.52 | % | ||||||||||||||||||||||
Other interest-earning assets | 569,373 | 563,717 | 22,900 | 4.06 | % | 557,555 | 612,495 | 10,449 | 1.71 | % | ||||||||||||||||||||||
Interest-bearing liabilities | 18,086,576 | 17,958,110 | 99,906 | 0.56 | % | 18,555,345 | 18,537,529 | 197,526 | 1.07 | % | ||||||||||||||||||||||
Deposits | 12,251,117 | 12,007,707 | 66,426 | 0.55 | % | 11,909,027 | 11,723,597 | 92,882 | 0.79 | % | ||||||||||||||||||||||
Negotiable certificates of deposit | 2,350,884 | 2,265,351 | 6,431 | 0.28 | % | 2,303,517 | 2,407,242 | 18,672 | 0.78 | % | ||||||||||||||||||||||
Call money and bills sold | 79,519 | 116,183 | 696 | 0.60 | % | 133,182 | 198,269 | 3,548 | 1.79 | % | ||||||||||||||||||||||
Payables under repurchase agreements | 601,787 | 925,536 | 2,559 | 0.28 | % | 1,236,776 | 1,344,406 | 28,391 | 2.11 | % | ||||||||||||||||||||||
Payables under securities lending transactions | – | 4,625 | 3 | 0.06 | % | – | 124,118 | 550 | 0.44 | % | ||||||||||||||||||||||
Borrowed money | 1,172,338 | 957,645 | 7,727 | 0.81 | % | 1,460,149 | 1,016,947 | 11,394 | 1.12 | % | ||||||||||||||||||||||
Debt securities issued | 970,482 | 920,679 | 12,413 | 1.35 | % | 890,184 | 948,882 | 12,849 | 1.35 | % | ||||||||||||||||||||||
Other interest-bearing liabilities | 660,449 | 760,384 | 3,651 | 0.48 | % | 622,510 | 774,068 | 29,240 | 3.78 | % |
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March 31, 2010 | March 31, 2009 | March 31, 2008 | ||||||||||||||||||||||
Total assets | Total liabilities | Total assets | Total liabilities | Total assets | Total liabilities | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||
Newly consolidated entities under IFRS | ¥ | 1,138,459 | ¥ | 1,111,143 | ¥ | 1,282,282 | ¥ | 1,509,332 | ¥ | 1,688,350 | ¥ | 1,888,805 |
As of March 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Total assets | Total liabilities | Total assets | Total liabilities | Total assets | Total liabilities | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||
ABCP/ABL conduits | ¥ | 301,220 | ¥ | 155,576 | ¥ | 482,718 | ¥ | 387,048 | ¥ | 630,222 | ¥ | 393,602 |
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As of March 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Total assets | Total liabilities | Total assets | Total liabilities | Total assets | Total liabilities | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||
Investment funds | ¥ | 169,542 | ¥ | 21,066 | ¥ | 125,541 | ¥ | 20,967 | ¥ | 77,966 | ¥ | 15,129 |
As of March 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Total assets | Total liabilities | Total assets | Total liabilities | Total assets | Total liabilities | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||
Investment funds – private equity funds | ¥ | 986 | ¥ | 660 | ¥ | 1,595 | ¥ | 848 | ¥ | 1,620 | ¥ | 483 |
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As of March 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Total principal amount of securitized mortgages | ¥ | 151,153 | ¥ | 109,632 | ¥ | 52,777 | ||||||
Total principal amount of senior beneficial interests | 133,863 | 94,310 | 48,400 |
As of March 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Total assets | Total liabilities | Total assets | Total liabilities | Total assets | Total liabilities | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||
Principal–guaranteed trusts | ¥ | 280,163 | ¥ | 656,324 | ¥ | 222,526 | ¥ | 764,194 | ¥ | 270,338 | ¥ | 963,278 |
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As of March 31, | ||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||
Net | Net | Net | ||||||||||||||||||||||||||||||||||
unrealized | unrealized | unrealized | ||||||||||||||||||||||||||||||||||
Amortized | gains | Amortized | gains | Amortized | gains | |||||||||||||||||||||||||||||||
cost | Fair value | (losses) | cost | Fair value | (losses) | cost | Fair value | (losses) | ||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||
Japanese government bonds | ¥ | 1,254,782 | ¥ | 1,260,556 | ¥ | 5,774 | ¥ | 1,456,682 | ¥ | 1,463,408 | ¥ | 6,726 | ¥ | 683,253 | ¥ | 686,873 | ¥ | 3,620 | ||||||||||||||||||
Corporate bonds and other debt securities | 92,285 | 93,220 | 935 | 88,227 | 88,562 | 335 | 137,545 | 141,034 | 3,489 | |||||||||||||||||||||||||||
Equity securities | 436,765 | 633,610 | 196,845 | 448,036 | 537,738 | 89,702 | 530,017 | 821,910 | 291,893 | |||||||||||||||||||||||||||
Total domestic | 1,783,832 | 1,987,386 | 203,554 | 1,992,945 | 2,089,708 | 96,763 | 1,350,815 | 1,649,817 | 299,002 | |||||||||||||||||||||||||||
Foreign | ||||||||||||||||||||||||||||||||||||
U.S. Treasury bonds and other U.S. government agencies bonds | 558,475 | 553,536 | (4,939 | ) | 588,212 | 591,338 | 3,126 | 203,893 | 212,650 | 8,757 | ||||||||||||||||||||||||||
Other governments and official institutions bonds | 91,470 | 91,759 | 289 | 531,705 | 536,042 | 4,337 | 557,138 | 550,444 | (6,694 | ) | ||||||||||||||||||||||||||
Corporate bonds and other debt securities | 316,642 | 313,135 | (3,507 | ) | 464,647 | 364,253 | (100,394 | ) | 1,082,147 | 996,314 | (85,833 | ) | ||||||||||||||||||||||||
Equity securities | 31,908 | 38,545 | 6,637 | 63,619 | 66,025 | 2,406 | 122,849 | 121,664 | (1,185 | ) | ||||||||||||||||||||||||||
Total foreign | 998,495 | 996,975 | (1,520 | ) | 1,648,183 | 1,557,658 | (90,525 | ) | 1,966,027 | 1,881,072 | (84,955 | ) | ||||||||||||||||||||||||
Total | ¥ | 2,782,327 | ¥ | 2,984,361 | ¥ | 202,034 | ¥ | 3,641,128 | ¥ | 3,647,366 | ¥ | 6,238 | ¥ | 3,316,842 | ¥ | 3,530,889 | ¥ | 214,047 | ||||||||||||||||||
Loans and receivables securities: | ||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||
Corporate bonds and other debt securities | ¥ | 339,318 | ¥ | 336,938 | ¥ | (2,380 | ) | ¥ | 404,260 | ¥ | 400,424 | ¥ | (3,836 | ) | ¥ | 539,597 | ¥ | 537,430 | ¥ | (2,167 | ) | |||||||||||||||
Total domestic | 339,318 | 336,938 | (2,380 | ) | 404,260 | 400,424 | (3,836 | ) | 539,597 | 537,430 | (2,167 | ) | ||||||||||||||||||||||||
Foreign: | ||||||||||||||||||||||||||||||||||||
Corporate bonds and other debt securities | 366,275 | 409,960 | 43,685 | 382,173 | 350,133 | (32,040 | ) | 101,350 | 99,486 | (1,864 | ) | |||||||||||||||||||||||||
Total foreign | 366,275 | 409,960 | 43,685 | 382,173 | 350,133 | (32,040 | ) | 101,350 | 99,486 | (1,864 | ) | |||||||||||||||||||||||||
Total | ¥ | 705,593 | ¥ | 746,898 | ¥ | 41,305 | ¥ | 786,433 | ¥ | 750,557 | ¥ | (35,876 | ) | ¥ | 640,947 | ¥ | 636,916 | ¥ | (4,031 | ) | ||||||||||||||||
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As of March 31, | ||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||
Net | Net | Net | ||||||||||||||||||||||||||||||||||
unrealized | unrealized | unrealized | ||||||||||||||||||||||||||||||||||
Amortized | gains | Amortized | gains | Amortized | gains | |||||||||||||||||||||||||||||||
cost | Fair value | (losses) | cost | Fair value | (losses) | cost | Fair value | (losses) | ||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||
Japanese government bonds | 236,047 | 244,095 | 8,048 | 331,713 | 338,882 | 7,169 | 439,374 | 447,281 | 7,907 | |||||||||||||||||||||||||||
Corporate bonds and other debt securities | 23,287 | 23,393 | 106 | 24,338 | 24,481 | 143 | 136,991 | 137,030 | 39 | |||||||||||||||||||||||||||
Total domestic | 259,334 | 267,488 | 8,154 | 356,051 | 363,363 | 7,312 | 576,365 | 584,311 | 7,946 | |||||||||||||||||||||||||||
Foreign | ||||||||||||||||||||||||||||||||||||
U.S. Treasury bonds and other U.S. government agencies bonds | 222 | 248 | 26 | 219 | 268 | 49 | 276 | 308 | 32 | |||||||||||||||||||||||||||
Other governments and official institutions bonds | – | – | – | 0 | 0 | 0 | 0 | 3 | 3 | |||||||||||||||||||||||||||
Corporate bonds and other debt securities | 2 | 2 | 0 | 4 | 3 | (1 | ) | 6 | 5 | (1 | ) | |||||||||||||||||||||||||
Total foreign | 224 | 250 | 26 | 223 | 271 | 48 | 282 | 316 | 34 | |||||||||||||||||||||||||||
Total | ¥ | 259,558 | ¥ | 267,738 | ¥ | 8,180 | ¥ | 356,274 | ¥ | 363,634 | ¥ | 7,360 | ¥ | 576,647 | ¥ | 584,627 | ¥ | 7,980 | ||||||||||||||||||
After one year | After five years | |||||||||||||||||||||||||||||||||||||||
One year or less | through five years | through ten years | After ten years | Total | ||||||||||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||||||||||||
(Millions of yen, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
Japanese government bonds | ¥ | 404,950 | 0.03% | ¥ | 220,952 | 0.69% | ¥ | 469,220 | 1.05% | ¥ | 165,434 | 1.48% | ¥ | 1,260,556 | 0.71% | |||||||||||||||||||||||||
Corporate bonds and other debt securities | 28,879 | 0.72% | 44,154 | 0.62% | 18,754 | 0.83% | 1,433 | 1.33% | 93,220 | 0.70% | ||||||||||||||||||||||||||||||
Total domestic | ¥ | 433,829 | 0.07% | ¥ | 265,106 | 0.68% | ¥ | 487,974 | 1.04% | ¥ | 166,867 | 1.48% | ¥ | 1,353,776 | 0.71% | |||||||||||||||||||||||||
Foreign | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury bonds and other U.S. government agencies bonds | 9,755 | 0.97% | 535,554 | 1.88% | 8,227 | 3.28% | – | – | 553,536 | 1.89% |
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After one year | After five years | |||||||||||||||||||||||||||||||||||||||
One year or less | through five years | through ten years | After ten years | Total | ||||||||||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||||||||||||
(Millions of yen, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Other governments and official institutions bonds | 59,537 | 2.16% | 22,003 | 2.62% | 10,219 | 6.01% | – | – | 91,759 | 2.70% | ||||||||||||||||||||||||||||||
Corporate bonds and other debt securities | 48,477 | 2.49% | 171,093 | 3.99% | 77,776 | 3.84% | 15,789 | 1.02% | 313,135 | 3.56% | ||||||||||||||||||||||||||||||
Total foreign | ¥ | 117,769 | 2.20% | ¥ | 728,650 | 2.39% | ¥ | 96,222 | 4.02% | ¥ | 15,789 | 1.02% | ¥ | 958,430 | 2.51% | |||||||||||||||||||||||||
Total | ¥ | 551,598 | 0.53% | ¥ | 993,756 | 1.94% | ¥ | 584,196 | 1.55% | ¥ | 182,656 | 1.43% | ¥ | 2,312,206 | 1.46% | |||||||||||||||||||||||||
Loans and receivables securities: | ||||||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other debt securities | 72,790 | 0.85% | 70,785 | 0.94% | 11,944 | 1.85% | 183,799 | 0.53% | 339,318 | 0.73% | ||||||||||||||||||||||||||||||
Total domestic | ¥ | 72,790 | 0.85% | ¥ | 70,785 | 0.94% | ¥ | 11,944 | 1.85% | ¥ | 183,799 | 0.53% | ¥ | 339,318 | 0.73% | |||||||||||||||||||||||||
Foreign | ||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other debt securities | – | – | 46,471 | 0.74% | 95,088 | 1.25% | 224,716 | 0.73% | 366,275 | 0.87% | ||||||||||||||||||||||||||||||
Total foreign | – | – | ¥ | 46,471 | 0.74% | ¥ | 95,088 | 1.25% | ¥ | 224,716 | 0.73% | ¥ | 366,275 | 0.87% | ||||||||||||||||||||||||||
Total | ¥ | 72,790 | 0.85% | ¥ | 117,256 | 0.86% | ¥ | 107,032 | 1.32% | ¥ | 408,515 | 0.64% | ¥ | 705,593 | 0.80% | |||||||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||
Japanese government bonds | 51,321 | 1.76% | 80,269 | 1.26% | 104,457 | 1.66% | – | – | 236,047 | 1.54% | ||||||||||||||||||||||||||||||
Corporate bonds and other debt securities | 23,287 | 0.86% | – | – | – | – | – | – | 23,287 | 0.86% | ||||||||||||||||||||||||||||||
Total domestic | ¥ | 74,608 | 1.48% | ¥ | 80,269 | 1.26% | ¥ | 104,457 | 1.66% | – | – | ¥ | 259,334 | 1.48% | ||||||||||||||||||||||||||
Foreign | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury bonds and other U.S. government agencies bonds | – | – | – | – | 222 | 9.25% | – | – | 222 | 9.25% | ||||||||||||||||||||||||||||||
Corporate bonds and other debt securities | – | – | 2 | 10.95% | – | – | – | – | 2 | 10.95% | ||||||||||||||||||||||||||||||
Total foreign | – | – | ¥ | 2 | 10.95% | ¥ | 222 | 9.25% | – | – | ¥ | 224 | 9.27% | |||||||||||||||||||||||||||
Total | ¥ | 74,608 | 1.48% | ¥ | 80,271 | 1.26% | ¥ | 104,679 | 1.67% | – | – | ¥ | 259,558 | 1.49% | ||||||||||||||||||||||||||
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March 31, 2010 | March 31, 2009 | March 31, 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Total domestic: | ¥ | 12,916,981 | ¥ | 12,643,848 | ¥ | 12,180,203 | ||||||
Manufacturing | 2,276,382 | 2,272,397 | 1,755,725 | |||||||||
Wholesale and retail | 1,175,914 | 1,224,221 | 1,209,205 | |||||||||
Finance and insurance | 1,548,094 | 1,448,254 | 1,673,557 | |||||||||
Real estate | 2,146,953 | 1,994,695 | 1,859,465 | |||||||||
Various services | 952,274 | 1,221,546 | 1,230,317 | |||||||||
Individuals | 2,469,661 | 2,445,298 | 2,297,114 | |||||||||
Others | 2,347,703 | 2,037,437 | 2,154,820 | |||||||||
Total foreign | 983,820 | 978,603 | 1,259,544 | |||||||||
Total | 13,900,801 | 13,622,451 | 13,439,747 | |||||||||
Unearned income and deferred loans and advances fees – net | (17,210 | ) | (13,131 | ) | (14,172 | ) | ||||||
Total loans before allowance for loan losses | ¥ | 13,883,591 | ¥ | 13,609,320 | ¥ | 13,425,575 | ||||||
After one year | ||||||||||||||||
One year or less | through five years | After five years | Total | |||||||||||||
(Millions of yen) | ||||||||||||||||
Total domestic: | ¥ | 3,313,178 | ¥ | 5,800,293 | ¥ | 3,803,510 | ¥ | 12,916,981 | ||||||||
Manufacturing | 774,098 | 1,237,059 | 265,225 | 2,276,382 | ||||||||||||
Wholesale and retail | 316,614 | 737,548 | 121,752 | 1,175,914 | ||||||||||||
Finance and insurance | 732,211 | 735,080 | 80,803 | 1,548,094 | ||||||||||||
Real estate | 452,820 | 1,415,885 | 278,248 | 2,146,953 | ||||||||||||
Various services | 348,185 | 541,699 | 62,390 | 952,274 | ||||||||||||
Individuals | 100,734 | 124,164 | 2,244,763 | 2,469,661 | ||||||||||||
Others | 588,516 | 1,008,858 | 750,329 | 2,347,703 | ||||||||||||
Total Foreign | 381,341 | 534,300 | 68,179 | 983,820 | ||||||||||||
Total | 3,694,519 | 6,334,593 | 3,871,689 | 13,900,801 | ||||||||||||
Unearned income and deferred loan fees – net | (4,574 | ) | (7,843 | ) | (4,793 | ) | (17,210 | ) | ||||||||
Total loans and advances before allowance for loan losses | ¥ | 3,689,945 | ¥ | 6,326,750 | ¥ | 3,866,896 | ¥ | 13,883,591 | ||||||||
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(Millions of yen) | ||||
Floating rate loans and advances | ¥ | 7,275,503 | ||
Fixed rate loans advances | 2,918,143 | |||
Total | ¥ | 10,193,646 | ||
As of March 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Impaired loans: | ||||||||||||
Domestic | ¥ | 260,606 | ¥ | 220,878 | ¥ | 119,231 | ||||||
Foreign | 12,371 | 11,086 | 7 | |||||||||
Total impaired loans | 272,977 | 231,964 | 119,238 | |||||||||
Unimpaired loans contractually past due 90 days or more: | ||||||||||||
Domestic | 1,451 | 2,739 | 2,393 | |||||||||
Foreign | – | – | – | |||||||||
Total unimpaired loans contractually past due 90 days or more | 1,451 | 2,739 | 2,393 | |||||||||
Restructured loans other than those included above: | ||||||||||||
Domestic | 78,289 | 96,353 | 100,782 | |||||||||
Foreign | 435 | 477 | 494 | |||||||||
Total restructured loans other than those included above | 78,724 | 96,830 | 101,276 | |||||||||
Total | ¥ | 353,152 | ¥ | 331,533 | ¥ | 222,907 | ||||||
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Year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Allowance for loan losses at beginning of fiscal year | ¥ | 114,621 | ¥ | 60,707 | ||||
Charge-offs: | ||||||||
Total domestic: | 40,063 | 43,528 | ||||||
Manufacturing | 1,524 | 3,140 | ||||||
Wholesale and retail | 91 | 892 | ||||||
Finance and insurance | 344 | 3,288 | ||||||
Real estate | 19,996 | 22,558 | ||||||
Various services | 633 | 1,244 | ||||||
Individuals | 2,002 | 2,751 | ||||||
Others | 15,473 | 9,655 | ||||||
Total foreign | – | 16 | ||||||
Total charge-offs | ¥ | 40,063 | ¥ | 43,544 | ||||
Recoveries: | ||||||||
Total domestic: | (1,359 | ) | (973 | ) | ||||
Manufacturing | (71 | ) | (68 | ) | ||||
Wholesale and retail | (251 | ) | (24 | ) | ||||
Finance and insurance | – | – | ||||||
Real estate | (356 | ) | (300 | ) | ||||
Various services | (11 | ) | (104 | ) | ||||
Individuals | (128 | ) | (167 | ) | ||||
Others | (542 | ) | (310 | ) | ||||
Total foreign | – | – | ||||||
Total recoveries | ¥ | (1,359 | ) | ¥ | (973 | ) | ||
Net charge-offs | 38,704 | 42,571 | ||||||
Provision for loan losses | ¥ | 27,905 | ¥ | 96,982 | ||||
Changes in STB consolidation scope | (692 | ) | (373 | ) | ||||
Exchange rate/Other | (362 | ) | (124 | ) | ||||
Allowance for loan losses at end of fiscal year | ¥ | 102,768 | ¥ | 114,621 | ||||
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Year ended March 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
% of loans in | % of loans in | % of loans in | ||||||||||||||||||||||
each category | each category | each category | ||||||||||||||||||||||
Amount | to total loans | Amount | to total loans | Amount | to total loans | |||||||||||||||||||
(Millions of yen, except percentages) | ||||||||||||||||||||||||
Total domestic: | ¥ | 93,560 | 91% | ¥ | 104,948 | 92% | ¥ | 53,963 | 89% | |||||||||||||||
Manufacturing | 9,941 | 10% | 8,591 | 8% | 5,388 | 9% | ||||||||||||||||||
Wholesale and retail | 3,197 | 3% | 3,243 | 3% | 3,190 | 5% | ||||||||||||||||||
Finance and insurance | 13,950 | 14% | 11,498 | 10% | 13,045 | 22% | ||||||||||||||||||
Real estate | 26,804 | 26% | 25,407 | 22% | 7,300 | 12% | ||||||||||||||||||
Various services | 3,474 | 3% | 4,703 | 4% | 3,746 | 6% | ||||||||||||||||||
Individuals | 12,376 | 12% | 13,852 | 12% | 12,527 | 21% | ||||||||||||||||||
Others | 23,818 | 23% | 37,654 | 33% | 8,767 | 14% | ||||||||||||||||||
Total foreign | 9,208 | 9% | 9,673 | 8% | 6,744 | 11% | ||||||||||||||||||
Total allowance for loan losses | ¥ | 102,768 | 100% | ¥ | 114,621 | 100% | ¥ | 60,707 | 100% | |||||||||||||||
Certificates of | ||||||||||||
Time deposits | deposit | Total | ||||||||||
(Millions of yen) | ||||||||||||
Domestic offices: | ||||||||||||
Due in three months or less | ¥ | 2,334,513 | ¥ | 2,099,595 | ¥ | 4,434,108 | ||||||
Due after three months through six months | 1,300,311 | 129,388 | 1,429,699 | |||||||||
Due after six months through twelve months | 1,503,637 | 109,901 | 1,613,538 | |||||||||
Due after twelve months | 4,258,867 | 12,000 | 4,270,867 | |||||||||
Total | ¥ | 9,397,328 | ¥ | 2,350,884 | ¥ | 11,748,212 | ||||||
Foreign offices | 75,154 | – | 75,154 | |||||||||
Total | ¥ | 9,472,482 | ¥ | 2,350,884 | ¥ | 11,823,366 | ||||||
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VI. | Short-Term Borrowings |
As of March 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen, except percentages) | ||||||||||||
Call money: | ||||||||||||
Balance at end of fiscal year | ¥ | 79,519 | ¥ | 133,182 | ¥ | 140,153 | ||||||
Weighted average interest rate on balance at end of fiscal year | 0.42 | % | 0.57 | % | 2.04 | % | ||||||
Cash collateral on securities lent and repurchase agreement: | ||||||||||||
Balance at end of fiscal year | 601,787 | 1,236,776 | 922,546 | |||||||||
Weighted average interest rate on balance at end of fiscal year | 0.23 | % | 0.55 | % | 2.92 | % | ||||||
Due to trust accounts: | ||||||||||||
Balance at end of fiscal year | 83,337 | 77,578 | 120,170 | |||||||||
Weighted average interest rate on balance at end of fiscal year | 0.06 | % | 0.24 | % | 0.29 | % | ||||||
Other short-term borrowings: | ||||||||||||
Balance at end of fiscal year | 398,800 | 733,007 | 141,900 | |||||||||
Weighted average interest rate on balance at end of fiscal year | 0.04 | % | 0.09 | % | 0.11 | % |
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Number of | ||||||||||
CMTH Shares | ||||||||||
Owned as of | ||||||||||
Name | Proposed Position at SMTH | Date of Birth | September 30, 2010 | Percentage Ownership | ||||||
Kazuo Tanabe | President | September 29, 1945 | 61,515 | * | ||||||
Jun Okuno | Director | July 30, 1950 | 32,930 | * | ||||||
Kunitaro Kitamura | Director | May 9, 1952 | 15,535 | * | ||||||
Nobuo Iwasaki | Director | July 12, 1955 | 23,000 | * | ||||||
Shinji Ochiai | Director | January 1, 1956 | 14,000 | * | ||||||
Tetsuo Amano | Auditor | July 11, 1954 | 10,000 | * | ||||||
Hiroyuki Nakanishi | External Auditor | January 8, 1938 | 0 | * | ||||||
Yasuhiko Takano | External Auditor | August 11, 1951 | 0 | * |
* | Shares held represent less than 1% of the total number of outstanding shares of CMTH. |
Number of | ||||||||||
STB Shares | ||||||||||
Owned as of | ||||||||||
Name | Proposed Position at SMTH | Date of Birth | September 30, 2010 | Percentage Ownership | ||||||
Hitoshi Tsunekage | Chairman | August 6, 1954 | 42,000 | * | ||||||
Kiyoshi Mukohara | Director | February 11, 1952 | 50,157 | * | ||||||
Akio Otsuka | Director | March 16, 1953 | 33,000 | * | ||||||
Junichi Sayato | Director | September 27, 1955 | 22,000 | * | ||||||
Tetsuo Ohkubo | Director | April 6, 1956 | 31,000 | * | ||||||
Teruhiko Sugita | Auditor | July 14, 1951 | 46,000 | * | ||||||
Hitoshi Maeda | External Auditor | November 18, 1931 | 0 | * | ||||||
Toshio Hoshino | External Auditor | December 22, 1944 | 0 | * |
* | Shares held represent less than 1% of the total number of outstanding shares of STB. |
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Number of CMTH | Percentage of Outstanding | |||||||
Shares Owned as of | CMTH Shares Owned as of | |||||||
Name | September 30, 2010 | September 30, 2010 | ||||||
(thousands) | (%) | |||||||
The Resolution and Collection Corporation | 500,875 | 30.20 | ||||||
Japan Trustee Services Bank, Ltd. (Trust Account) | 101,131 | 6.10 | ||||||
The Master Trust Bank of Japan, Ltd. (Trust Account) | 90,485 | 5.46 |
Number of STB | Percentage of Outstanding | |||||||
Shares Owned as of | STB Shares Owned as of | |||||||
Name | September 30, 2010 | September 30, 2010 | ||||||
(thousands) | (%) | |||||||
The Master Trust Bank of Japan, Ltd. (Trust Account) | 105,771 | 6.31 | ||||||
Japan Trustee Services Bank, Ltd. (Trust Account) | 101,172 | 6.04 |
Number of SMTH Shares | Percentage of Outstanding | |||||||
To Be Owned Following | SMTH Shares To Be Owned | |||||||
Name | the Share Exchange | Following the Share Exchange | ||||||
(thousands) | (%) | |||||||
The Resolution and Collection Corporation | 500,875 | 12.06 | ||||||
Japan Trustee Services Bank, Ltd. (Trust Account) | 251,877 | 6.06 | ||||||
The Master Trust Bank of Japan, Ltd. (Trust Account) | 248,084 | 5.97 | ||||||
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• | the book value of its treasury stock; | |
• | the amount of consideration for any of treasury stock disposed of by CMTH after the end of the last fiscal year; and | |
• | certain other amounts set forth in an ordinance of the Ministry of Justice, including, if the total of the one-half of goodwill and the deferred assets exceeds the total of stated capital, capital reserve and earned surplus reserve, each such amount being that appearing on CMTH’s non-consolidated balance sheet as of the end of the last fiscal year, all or certain part of such exceeding amount as calculated in accordance with the ordinances of the Ministry of Justice. |
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• | any amendment to the articles of incorporation (except for such amendments as may be authorized by the board of directors under the Companies Act); | |
• | reduction of stated capital which meets certain requirements with certain exceptions; | |
• | dissolution, merger or consolidation requiring shareholders’ approval; | |
• | establishment of a parent and a wholly owned subsidiary relationship by way of a share transfer (kabushiki-iten) or share exchange (kabushiki-kokan) requiring shareholders’ approval; | |
• | transfer of the whole or a substantial part of CMTH’s business; | |
• | takeover of the whole business of another company requiring shareholders’ approval; | |
• | corporate split requiring shareholders’ approval; | |
• | consolidation of shares of common stock; | |
• | purchase of shares of common stock by CMTH from a specific shareholder other than a subsidiary; | |
• | issuance or transfer of new shares or existing shares held by CMTH as treasury stock to third parties at a “specially favorable” price; | |
• | issuance of stock acquisition rights (including those incorporated in bonds with stock acquisition rights) to third parties under “specially favorable” conditions; | |
• | the exemption of liability of a director or corporate auditor with certain exceptions; and | |
• | distribution of surplus in kind if shareholders are not granted the right to require CMTH to make such distribution in cash instead of in kind. |
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(i) | by way of purchase on any Japanese stock exchange or by way of tender offer (in either case pursuant to an ordinary resolution of a general meeting of shareholders or a resolution of the board of directors); | |
(ii) | by soliciting all shareholders of a specific class to offer to sell shares of such class held by them (in this case pursuant to the authorization by an ordinary resolution of a general meeting of shareholders and effected by a resolution of the board of directors); | |
(iii) | from a specific shareholder other than any of its subsidiaries (pursuant to a special resolution of a general meeting of shareholders); or | |
(iv) | from any of its subsidiaries (pursuant to a resolution of the board of directors). |
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• | Class V nonconvertible preferred stock bears an annual noncumulative preferred dividend to be calculated by multiplying a ratio to be determined by a resolution of the board of directors, by the time such preferred stock is first issued, by the amount to be paid in for the issuance of the shares. The above ratio shall be a floating rate, a fixed rate or a combination of floating rate and fixed rate. The upper limit for such ratio shall be 10% per annum in the case of a fixed rate, and a benchmark for interest generally used in respect of issuance of securities (e.g., LIBOR, TIBOR, swap rate) plus 5% per annum in the case of a floating rate. The amount to be paid in for the issuance of shares of Class V nonconvertible preferred stock shall not exceed ¥1,600. If interim dividends are paid, CMTH will pay to the holders of Class V nonconvertible preferred stock one-half of the amount of the preferred annual dividend. | |
• | Class VI nonconvertible preferred stock bears an annual noncumulative preferred dividend to be calculated by multiplying a ratio to be determined by a resolution of the board of directors, by the time such preferred stock is first issued, by the amount to be paid in for the issuance of the shares. The above ratio shall be a floating rate, a fixed rate or a combination of floating rate and fixed rate. The upper limit for such ratio shall be 10% per annum in the case of fixed rate, and a benchmark for interest generally used in respect of issuance of securities (e.g., LIBOR, TIBOR, swap rate) plus 5% per annum in the case of a floating rate. The amount to be paid in for the issuance of shares of Class VI nonconvertible preferred stock shall not exceed ¥1,600. If interim dividends are paid, CMTH will pay to the holders of Class VI nonconvertible preferred stock one-half of the amount of the preferred annual dividend. | |
• | The First Series of Class VII Preferred Shares is planned to bear an annual noncumulative preferred dividend of ¥42.30 per share. It is planned that if interim dividends are paid, CMTH will pay to the holders of First Series of Class VII Preferred Shares ¥21.15 per share as interim preferred dividends. | |
• | The Second through Fourth series of Class VII preferred stock is planned to bear an annual noncumulative preferred dividend in an amount to be determined by a resolution of the board of directors prior to the issuance, up to ¥150 per share. It is planned that if interim dividends are paid, SMTH will pay to the holders of the Second through Fourth series of Class VII preferred stock an amount to be determined by a resolution of the board of directors, which may be up to one-half of the amount of the preferred annual dividend. |
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• | Each series of Class VIII preferred stock is planned to bear an annual noncumulative preferred dividend in an amount to be determined by a resolution of the board of directors prior to the issuance, up to ¥100 per share. It is planned that if interim dividends are paid, SMTH will pay to the holders of each series of Class VIII preferred stock an amount to be determined by a resolution of the board of directors, which may be up to one-half of the amount of the preferred annual dividend. | |
• | Each series of Class IX preferred stock is planned to bear an annual noncumulative preferred dividend in an amount to be determined by a resolution of the board of directors prior to the issuance, up to ¥100 per share. It is planned that if interim dividends are paid, SMTH will pay to the holders of each series of Class IX preferred stock an amount to be determined by a resolution of the board of directors, which may be up to one-half of the amount of the preferred annual dividend. |
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• | from the commencement of CMTH’s annual general meeting of shareholders if an agenda for approval to declare a preferred dividend is not submitted to such meeting, or | |
• | from the close of CMTH’s annual general meeting of shareholders if a proposed resolution to declare a preferred dividend is not approved at such meeting, |
(i) | an amendment to the articles of incorporation to add new classes of shares to be issued, alter the terms of the shares or increase the number of authorized number of shares or authorized number of any class of shares, with certain exceptions; |
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(ii) | consolidation or split of shares; | |
(iii) | a pro rata allocation of shares or stock acquisition rights to shareholders without any consideration; | |
(iv) | granting rights to receive allotments of shares or stock acquisition rights; | |
(v) | amalgamations or mergers; | |
(vi) | certain corporate splits; | |
(vii) | share exchanges; and | |
(viii) | share transfers. |
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• | before or at the time of the pre-release, the person to whom the pre-release is made must represent to the depositary in writing that it or its customer, as the case may be, owns the shares to be deposited; | |
• | the pre-release must be fully collateralized with cash or collateral that the depositary considers appropriate; and | |
• | the depositary must be able to close out the pre-release on not more than five business days’ notice. |
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• | such information as is contained in such notice of meeting; | |
• | a statement that as of the close of business on a specified record date you will be entitled, subject to any applicable provision of Japanese law and SMTH’s Articles of Incorporation and Share Handling Regulations, to instruct BNYM as to the exercise of the voting rights, if any, pertaining to the amount of shares or other deposited securities represented by your ADSs; and | |
• | a statement as to the manner in which such instructions may be given, including an express indication that such instructions may be given or deemed given as described in the last sentence of this paragraph if no instruction is received, to BNYM to give a discretionary proxy to a person designated by SMTH. |
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ADR holders must pay: | For: | |
$5.00 (or less) per 100 ADSs (or portion thereof) | Each issuance of an ADS, including as a result of a distribution of shares or rights or other property | |
Each cancellation of an ADS, including if the agreement terminates | ||
$0.02 (or less) per ADS | Any cash distribution | |
A fee equivalent to the fee that would be payable if securities distributed to the ADR holder had been shares and the shares had been deposited for issuance of ADSs | Distribution of securities distributed to holders of deposited securities which are distributed by BNYM to ADS registered holders | |
Registration or transfer fees | Transfer and registration of shares on the share register of the foreign registrar from your name to the name of BNYM or its agent when you deposit or withdraw shares | |
Expenses of BNYM | Conversion of foreign currency to U.S. dollars and cable, telex and facsimile transmissions made pursuant to the Deposit Agreement | |
Taxes and other governmental charges | As necessary | |
Any other charges payable by BNYM or its agents in connection with the servicing of the SMTH shares or other securities deposited pursuant to the Deposit Agreement | As necessary (such charges will be assessed against the holders of ADSs as of the date or date set by BNYM in accordance with the Deposit Agreement and payable at it sole discretion by billing such ADS holders for such charges or by deducting such charges from one or more cash dividends or other (not distributions) |
• | reclassifies, splits up, cancels consolidates or otherwise reclassifies any of its shares or the deposited securities; | |
• | recapitalizes, reorganizes, merges, consolidates or sells its assets or takes any similar action affecting SMTH; or | |
• | distributes securities on the shares that are not distributed to you, then, |
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(1) | the cash, shares or other securities received by BNYM will become deposited securities and each ADS will automatically represent its equal share of the new deposited securities unless additional ADSs are issued; and | |
(2) | BNYM may, and will if SMTH requests, issue new ADSs or ask you to surrender your outstanding ADSs in exchange for new ADSs, identifying the new deposited securities. |
• | are only obligated to take the actions specifically set forth in the deposit agreement without negligence or bad faith; | |
• | are not liable if either is prevented or delayed by law, any provision of our Articles of Incorporation or circumstances beyond their control from performing their obligations under the Deposit Agreement; | |
• | are not liable if either exercises or fails to exercise discretion permitted under the Deposit Agreement; |
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• | have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the deposit agreement on your behalf or on behalf of any other party; and | |
• | may rely upon any advice of or information from legal counsel, accountants, any person depositing shares, any ADS holder or any other person believed in good faith to be competent to give them that advice or information. |
• | payment of a sum sufficient to reimburse it for stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any shares or other deposited securities; | |
• | production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and | |
• | compliance with regulations it may establish, from time to time, consistent with the Deposit Agreement, including presentation of transfer documents. |
• | when temporary delays arise because: (1) BNYM has closed its transfer books, SMTH has closed its transfer books or JASDEC has closed its transfer books; (2) the transfer of shares is blocked to permit voting at a shareholders’ meeting; or (3) SMTH is paying a dividend on the shares; | |
• | when you or other ADS holders seeking to withdraw shares owe money to pay fees, taxes and similar charges; or | |
• | when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to ADSs or to the withdrawal of shares or other deposited securities. |
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• | individuals who are resident in Japan; or | |
• | corporations whose principal offices are located inside Japan. |
• | individuals who are not resident in Japan; or | |
• | corporations whose principal offices are located outside Japan. Generally, branches and other offices of nonresident corporations within Japan are regarded as residents of Japan, and branches and other offices of Japanese corporations located outside Japan are regarded as nonresidents of Japan. |
• | individuals who are not resident in Japan; | |
• | corporations organized under the laws of foreign countries or whose principal offices are located outside Japan; or | |
• | corporations (i) not less than 50% of the voting rights of which are held, directly or indirectly, by individualsand/or corporations falling within the definition of “foreign investors” above or (ii) a majority of the directors or other officers (or directors or other officers having the power of representation) of which are individuals who are not resident in Japan. |
• | the aggregate purchase price of the relevant shares is ¥100 million or less; | |
• | the transfer is made through any securities firm, bank or other entity prescribed by the Exchange Regulations acting as an agent or intermediary; or | |
• | the acquisition constitutes an Inward Direct Investment described below. |
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• | certain financial institutions; | |
• | dealers or traders in securities who use amark-to-market method of tax accounting; | |
• | persons holding shares or ADSs as part of a hedge, straddle, integrated transaction, or similar transaction; | |
• | persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar; | |
• | entities classified as partnerships for U.S. federal income tax purposes; | |
• | tax-exempt entities, including “individual retirement accounts” or “Roth IRAs”; | |
• | persons that own, or have owned, directly, indirectly or constructively, 10% or more of the total voting power of STB or SMTH; | |
• | persons who acquired shares or ADSs pursuant to the exercise of any employee stock option or otherwise as compensation; or |
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• | persons holding shares or ADSs in connection with a trade or business conducted outside the United States. |
• | an individual who is a citizen or resident of the United States; | |
• | a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state therein or the District of Columbia; or | |
• | an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source. |
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Page | ||||
Audited Consolidated Financial Statements of CMTH | ||||
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F-6 | ||||
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Audited Consolidated Financial Statements of STB | ||||
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT MARCH 31, 2010, AT MARCH 31, 2009 AND AT APRIL 1, 2008
Note | At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | |||||||||||||
(Millions of yen) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and deposits with banks | 7 | 268,450 | 239,871 | 220,375 | ||||||||||||
Call loans | 8 | 10,875 | 23,765 | 236,344 | ||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 8 | 1,521 | 8,812 | 104,003 | ||||||||||||
Financial assets held for trading other than derivatives | 9 | 12,007 | 26,243 | 30,006 | ||||||||||||
Derivative financial assets | 10 | 203,406 | 232,378 | 181,114 | ||||||||||||
Financial assets designated at fair value through profit or loss | 11 | 124,408 | 129,742 | 223,460 | ||||||||||||
Investment securities | 12 | 2,503,695 | 3,319,574 | 2,393,370 | ||||||||||||
Loans and advances | 13 | 9,710,846 | 9,831,088 | 9,257,436 | ||||||||||||
Assets pledged as collateral | 14 | 1,721,353 | 1,290,516 | 1,862,017 | ||||||||||||
Investment in associates and joint ventures | 15 | 21,990 | 22,643 | 19,857 | ||||||||||||
Property and equipment | 16 | 141,707 | 143,815 | 148,439 | ||||||||||||
Intangible assets | 17 | 68,464 | 63,511 | 75,462 | ||||||||||||
Current income tax assets | 26 | 3,401 | 5,937 | 42,139 | ||||||||||||
Deferred income tax assets | 26 | 186,178 | 259,758 | 218,958 | ||||||||||||
Other assets | 18, 27 | 340,278 | 267,338 | 239,838 | ||||||||||||
Total assets | 15,318,579 | 15,864,991 | 15,252,818 | |||||||||||||
Liabilities | ||||||||||||||||
Deposits | 19 | 9,064,722 | 9,421,346 | 8,803,077 | ||||||||||||
Call money | 20 | 306,161 | 253,478 | 291,582 | ||||||||||||
Cash collateral on securities lent and repurchase agreements | 20 | 1,702,698 | 1,255,648 | 1,821,318 | ||||||||||||
Derivative financial liabilities | 10 | 191,963 | 240,074 | 182,139 | ||||||||||||
Financial liabilities designated at fair value through profit or loss | 21 | 2,080 | 2,818 | 3,530 | ||||||||||||
Due to trust accounts | 22 | 21,356 | 25,592 | 26,305 | ||||||||||||
Due to investors of trust accounts | 23 | 1,568,220 | 1,891,361 | 2,252,157 | ||||||||||||
Debt securities issued | 24 | 233,969 | 373,395 | 532,116 | ||||||||||||
Borrowings | 25 | 1,228,505 | 1,704,097 | 485,471 | ||||||||||||
Current income tax liabilities | 26 | 4,625 | 3,032 | 8,549 | ||||||||||||
Deferred income tax liabilities | 26 | 10,899 | 2,975 | 9,631 | ||||||||||||
Retirement benefit obligations | 27 | 5,793 | 5,706 | 5,462 | ||||||||||||
Other liabilities | 28 | 134,340 | 228,922 | 150,740 | ||||||||||||
Total liabilities | 14,475,331 | 15,408,444 | 14,572,077 | |||||||||||||
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Note | At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | |||||||||||||
(Millions of yen) | ||||||||||||||||
Equity attributable to owners of the parent | ||||||||||||||||
Share capital | 29 | 261,609 | 161,434 | 79,984 | ||||||||||||
Capital surplus | 29 | 33,701 | (66,344 | ) | (15,884 | ) | ||||||||||
Retained earnings | 30 | 244,790 | 155,201 | 315,130 | ||||||||||||
Other reserves | 30 | 117,450 | 19,815 | 155,115 | ||||||||||||
Treasury shares | 29 | (271 | ) | (262 | ) | (262 | ) | |||||||||
Total equity attributable to owners of the parent | 657,279 | 269,844 | 534,083 | |||||||||||||
Non-controlling interests | 31 | 185,969 | 186,703 | 146,658 | ||||||||||||
Total equity | 843,248 | 456,547 | 680,741 | |||||||||||||
Total liabilities and equity | 15,318,579 | 15,864,991 | 15,252,818 | |||||||||||||
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CONSOLIDATED INCOME STATEMENT
FOR THE YEARS ENDED MARCH 31, 2010 AND 2009
Note | 2010 | 2009 | ||||||||||
(Millions of yen, except | ||||||||||||
per share amounts) | ||||||||||||
Interest income | 34 | 203,705 | 232,826 | |||||||||
Interest expenses | 34 | 72,814 | 104,597 | |||||||||
Net interest income | 34 | 130,891 | 128,229 | |||||||||
Fee and commission income | 35 | 112,875 | 126,486 | |||||||||
Fee and commission expenses | 35 | 21,061 | 15,351 | |||||||||
Net fee and commission income | 35 | 91,814 | 111,135 | |||||||||
Net gains/(losses) on financial instruments classified as held for trading | 36 | 13,868 | (39,784 | ) | ||||||||
Net losses on financial instruments designated at fair value through profit or loss | 37 | (803 | ) | (40,616 | ) | |||||||
Net investment income | 38 | 46,997 | 50,891 | |||||||||
Other operating income | 40 | 12,383 | 10,151 | |||||||||
Operating income | 295,150 | 220,006 | ||||||||||
General and administration expenses | 41 | 129,819 | 131,961 | |||||||||
Impairment charges | 39 | 19,813 | 163,696 | |||||||||
Other operating expenses | 42 | 19,459 | 19,393 | |||||||||
Operating expenses | 169,091 | 315,050 | ||||||||||
Share of (loss) profit in associates and joint ventures | 15 | (509 | ) | 1,138 | ||||||||
Operating profit (loss) before tax | 125,550 | (93,906 | ) | |||||||||
Income tax expenses | 26 | 21,446 | 50,643 | |||||||||
Profit (loss) for the year | 104,104 | (144,549 | ) | |||||||||
Profit (loss) attributable to: | ||||||||||||
Owners of the parent | 97,354 | (149,002 | ) | |||||||||
Non-controlling interests | 31 | 6,750 | 4,453 | |||||||||
Earnings per share (expressed in yen per share) | ||||||||||||
Basic | 43 | 63.98 | (138.18 | ) | ||||||||
Diluted | 43 | 59.65 | (138.18 | ) |
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Note | 2010 | 2009 | ||||||||||
(Millions of yen) | ||||||||||||
Profit (loss) for the year | 104,104 | (144,549 | ) | |||||||||
Other comprehensive income (loss) | ||||||||||||
Net gains / (losses) onavailable-for-sale financial assets | 30, 31 | 165,480 | (221,869 | ) | ||||||||
Net gains / (losses) on cash flow hedges | 30 | (103 | ) | (52 | ) | |||||||
Exchange differences on translations of foreign operations | 30 | 491 | (1,979 | ) | ||||||||
Share of other comprehensive loss of associates and joint ventures | 30 | (1 | ) | (2 | ) | |||||||
Income tax benefit / (expense) relating to components of other comprehensive income | 30 | (68,067 | ) | 88,953 | ||||||||
Other comprehensive income (loss) for the year, net of tax | 97,800 | (134,949 | ) | |||||||||
Total comprehensive income (loss) for the year | 201,904 | (279,498 | ) | |||||||||
Total comprehensive income (loss) attributable to: | ||||||||||||
Owners of the parent | 194,989 | (284,302 | ) | |||||||||
Non-controlling interests | 31 | 6,915 | 4,804 | |||||||||
Total | 201,904 | (279,498 | ) | |||||||||
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS ENDED MARCH 31, 2010 AND 2009
Attributable to owners of the parent | ||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||
before non- | Non- | |||||||||||||||||||||||||||||||||||
Share | Capital | Retained | Other | Treasury | controlling | controlling | Total | |||||||||||||||||||||||||||||
Note | capital | surplus | earnings | reserves | shares | interests | interests | equity | ||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||
Balance at April 1, 2008 | 79,984 | (15,884 | ) | 315,130 | 155,115 | (262 | ) | 534,083 | 146,658 | 680,741 | ||||||||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||||||||||||||
Profit or loss for the year | 30 | – | – | (149,002 | ) | – | – | (149,002 | ) | 4,453 | (144,549 | ) | ||||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||||||||||||
Available-for-sale financial assets | 30 | – | – | – | (222,220 | ) | – | (222,220 | ) | 351 | (221,869 | ) | ||||||||||||||||||||||||
Cash flow hedges | 30 | – | – | – | (52 | ) | – | (52 | ) | – | (52 | ) | ||||||||||||||||||||||||
Exchange differences on translations of foreign operations | 30 | – | – | – | (1,979 | ) | – | (1,979 | ) | – | (1,979 | ) | ||||||||||||||||||||||||
Share of other comprehensive income/loss of associates and joint ventures | 30 | – | – | – | (2 | ) | – | (2 | ) | – | (2 | ) | ||||||||||||||||||||||||
Income tax relating to components of other comprehensive income | 26, 30 | – | – | – | 88,953 | – | 88,953 | – | 88,953 | |||||||||||||||||||||||||||
Total other comprehensive income | – | – | – | (135,300 | ) | – | (135,300 | ) | 351 | (134,949 | ) | |||||||||||||||||||||||||
Total comprehensive income | – | – | (149,002 | ) | (135,300 | ) | – | (284,302 | ) | 4,804 | (279,498 | ) | ||||||||||||||||||||||||
Dividends | 30 | – | – | (10,927 | ) | – | – | (10,927 | ) | (5,801 | ) | (16,728 | ) | |||||||||||||||||||||||
Issue of preferred securities | 29 | – | – | – | – | – | – | 41,000 | 41,000 | |||||||||||||||||||||||||||
Redemption of preferred shares | 29 | – | (44,021 | ) | – | – | – | (44,021 | ) | – | (44,021 | ) | ||||||||||||||||||||||||
Conversion of preferred shares into ordinary shares | 29 | 81,450 | (6,157 | ) | – | – | – | 75,293 | – | 75,293 | ||||||||||||||||||||||||||
Other | – | (282 | ) | – | – | – | (282 | ) | 42 | (240 | ) | |||||||||||||||||||||||||
Balance at March 31, 2009 | 161,434 | (66,344 | ) | 155,201 | 19,815 | (262 | ) | 269,844 | 186,703 | 456,547 | ||||||||||||||||||||||||||
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Attributable to owners of the parent | ||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||
before non- | Non- | |||||||||||||||||||||||||||||||||||
Share | Capital | Retained | Other | Treasury | controlling | controlling | Total | |||||||||||||||||||||||||||||
Note | capital | surplus | earnings | reserves | shares | interests | interests | equity | ||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||
Balance at April 1, 2009 | 161,434 | (66,344 | ) | 155,201 | 19,815 | (262 | ) | 269,844 | 186,703 | 456,547 | ||||||||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||||||||||||||
Profit for the year | 30 | – | – | 97,354 | – | – | 97,354 | 6,750 | 104,104 | |||||||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||||||||||||
Available-for-sale financial assets | 30 | – | – | – | 165,315 | – | 165,315 | 165 | 165,480 | |||||||||||||||||||||||||||
Cash flow hedges | 30 | – | – | – | (103 | ) | – | (103 | ) | – | (103 | ) | ||||||||||||||||||||||||
Exchange differences on translations of foreign operations | 30 | – | – | – | 491 | – | 491 | – | 491 | |||||||||||||||||||||||||||
Share of other comprehensive income/(loss) of associates and joint ventures | 30 | – | – | – | (1 | ) | – | (1 | ) | – | (1 | ) | ||||||||||||||||||||||||
Income tax relating to components of other comprehensive income | 26, 30 | – | – | – | (68,067 | ) | – | (68,067 | ) | – | (68,067 | ) | ||||||||||||||||||||||||
Total other comprehensive income | – | – | – | 97,635 | – | 97,635 | 165 | 97,800 | ||||||||||||||||||||||||||||
Total comprehensive income | – | – | 97,354 | 97,635 | – | 194,989 | 6,915 | 201,904 | ||||||||||||||||||||||||||||
Dividends | 30 | – | – | (7,765 | ) | – | – | (7,765 | ) | (7,649 | ) | (15,414 | ) | |||||||||||||||||||||||
Conversion of preferred shares into ordinary shares | 29 | 100,175 | 100,175 | – | – | – | 200,350 | – | 200,350 | |||||||||||||||||||||||||||
Other | – | (130 | ) | – | – | (9 | ) | (139 | ) | 0 | (139 | ) | ||||||||||||||||||||||||
Balance at March 31, 2010 | 261,609 | 33,701 | 244,790 | 117,450 | (271 | ) | 657,279 | 185,969 | 843,248 | |||||||||||||||||||||||||||
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2010 AND 2009
Note | 2010 | 2009 | ||||||||||
(Millions of yen) | ||||||||||||
Cash flows from operating activities | ||||||||||||
Operating profit (loss) before tax | 125,550 | (93,906 | ) | |||||||||
Adjustment for non-cash items: | ||||||||||||
Net increase/(decrease) in impairment allowance of loans and advances | (3,221 | ) | 16,589 | |||||||||
Depreciation and amortization of property and equipment and intangible assets | 41 | 12,252 | 14,752 | |||||||||
Net losses on disposal of property and equipment | 40, 42 | 226 | 1,707 | |||||||||
Net losses/(gains) on financial instruments classified as held for trading | (33,863 | ) | 2,821 | |||||||||
Net losses on financial instruments designated at fair value through profit or loss | 803 | 40,616 | ||||||||||
Impairment of investment securities | 39 | 8,919 | 116,936 | |||||||||
Net gains on investment securities other than impairment charges | (46,202 | ) | (48,754 | ) | ||||||||
Share of loss/(profit) in associates and joint ventures | 509 | (1,138 | ) | |||||||||
Foreign exchange losses/(gains) | 34,951 | (20,030 | ) | |||||||||
Other non-cash items | (3,523 | ) | 6,278 | |||||||||
Subtotal | 96,401 | 35,871 | ||||||||||
Change in operating assets and liabilities | ||||||||||||
Net decrease/(increase) in loans and advances before impairment allowance | 123,463 | (590,241 | ) | |||||||||
Net decrease in financial assets held for trading other than derivatives | 14,236 | 3,763 | ||||||||||
Net decrease/(increase) in derivative financial assets | 18,514 | (39,201 | ) | |||||||||
Net decrease/(increase) in other assets | 44,953 | 30,741 | ||||||||||
Net increase/(decrease) in deposits | (356,624 | ) | 618,269 | |||||||||
Net increase/(decrease) in call money | 52,683 | (38,104 | ) | |||||||||
Net increase/(decrease) in cash collateral on securities lent and repurchase agreements | 447,050 | (565,670 | ) | |||||||||
Net increase/(decrease) in derivative financial liabilities | (48,111 | ) | 57,935 | |||||||||
Net decrease in due to trust accounts | 22 | (4,236 | ) | (713 | ) | |||||||
Net decrease in due to investors of trust accounts—other than securitization trust accounts | 23 | (235,576 | ) | (240,071 | ) | |||||||
Net increase/(decrease) in other liabilities | (92,305 | ) | 14,561 | |||||||||
Income tax paid | (4,011 | ) | 22,445 | |||||||||
Net cash generated from (used in) operating activities | 56,437 | (690,415 | ) |
F-9
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Note | 2010 | 2009 | ||||||||||
(Millions of yen) | ||||||||||||
Cash flows from investing activities | ||||||||||||
Acquisition of subsidiaries, net of cash acquired | 17 | 219 | (782 | ) | ||||||||
Purchase of investment securities | (4,584,997 | ) | (2,455,969 | ) | ||||||||
Proceeds from sales and redemptions of investment securities | 5,067,746 | 1,817,726 | ||||||||||
Purchase of equity financial instruments designated at fair value through profit or loss — long-term investment | (5,032 | ) | (4,495 | ) | ||||||||
Proceeds from equity financial instruments designated at fair value through profit or loss — long-term investment | 1,564 | 2,989 | ||||||||||
Net decrease/(increase) in financial instruments designated at fair value through profit or loss — short-term investments | (2,490 | ) | 50,819 | |||||||||
Purchase of property and equipment | 16 | (3,865 | ) | (3,743 | ) | |||||||
Proceeds from disposal of property and equipment | 363 | 571 | ||||||||||
Purchase of intangible assets | 17 | (10,053 | ) | (13,532 | ) | |||||||
Proceeds from disposal of intangible assets | 1,064 | 15,839 | ||||||||||
Net cash flows generated from (used in) investing activities | 464,519 | (590,577 | ) | |||||||||
Cash flows from financing activities | ||||||||||||
Dividends paid | (15,414 | ) | (16,728 | ) | ||||||||
Proceeds from borrowings | 81,442 | 1,263,196 | ||||||||||
Repayment of borrowings | (557,034 | ) | (44,570 | ) | ||||||||
Repayment of due to investors of trust accounts-securitization trust accounts | 23 | (87,565 | ) | (120,725 | ) | |||||||
Issue of subordinated bonds | 103,000 | – | ||||||||||
Redemption of subordinated bonds | (37,275 | ) | – | |||||||||
Redemption of Class III preferred shares | – | (127,441 | ) | |||||||||
Purchase of treasury shares | (18 | ) | (55 | ) | ||||||||
Disposal of treasury shares | 4 | 26 | ||||||||||
Issues of preferred securities | – | 41,000 | ||||||||||
Net cash generated from (used in) financing activities | (512,860 | ) | 994,703 | |||||||||
Effect of exchange rates on cash and cash equivalents | 302 | (1,985 | ) | |||||||||
Net increase in cash and cash equivalents | 8,398 | (288,274 | ) | |||||||||
Cash and cash equivalents at the beginning of year | 272,448 | 560,722 | ||||||||||
Cash and cash equivalents at the end of year | 280,846 | 272,448 | ||||||||||
Cash and cash equivalents comprise of | ||||||||||||
Cash and deposit with banks | 268,450 | 239,871 | ||||||||||
Call loans | 10,875 | 23,765 | ||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | 8,812 | ||||||||||
Total | 280,846 | 272,448 | ||||||||||
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F-11
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1. | General information |
• | The Chuo Mitsui Trust and Banking Company, Limited (“Chuo Mitsui”) engages in various trust banking services to both individual and corporate customers. The services to individuals include sales of investment trusts and annuity insurance, provision of trust and deposit products, extension of loans including housing loans and extension of testamentary trust and inheritance-processing services, among others. The services to corporate customers include financial services, provision of real estate related solutions including brokerage service, and stock transfer agency services, among others. | |
• | Chuo Mitsui Asset Trust and Banking Company, Limited (“Chuo Mitsui Asset”) engages in various institutional investor services which include the trust asset management business and trust asset administration business for various institutional investors and pension management services, among others. | |
• | Chuo Mitsui Asset Management Company, Limited (“Chuo Mitsui Asset Management”) primarily engages in investment trust management. Specifically, the company manages publicly placed investment trusts for ordinary individual investors and privately placed investment trusts for variable annuity insurance clients and also designs and manages investment trust funds for a wide range of investors, including defined contribution pension plans and institutional investors. | |
• | Chuo Mitsui Capital Company Limited (“Chuo Mitsui Capital”) engages in management of private equity investment that includes leveraged buy-out, management buy-out and other targeted equity investments through investment partnerships. |
2. | Summary of significant accounting policies |
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• | Financial instruments at fair value through profit or loss | |
• | Available-for-sale financial investments |
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Applicable for financial | ||||
Standard/interpretation | Content | years beginning on/after | ||
IFRS 3 (as revised in 2008) | Business combinations | July 1, 2009 | ||
IAS 27 (as revised in 2008) | Consolidated and separate financial statements | July 1, 2009 | ||
IFRS 9 | Financial instruments part 1: Classification and measurement — Financial assets | January 1, 2013 |
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Standard/ | Applicable for financial | |||
interpretation | Content | years beginning on/after | ||
Amendments to IAS 39 | Financial instruments: Recognition and measurement – eligible hedged items | July 1, 2009 | ||
IFRIC 17 | Distribution of non-cash assets to owners | July 1, 2009 | ||
IFRIC 18 | Transfers of assets from customers | July 1, 2009 |
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• | in substance, the activities of the SPE are being conducted on CMTH’s behalf according to its specific business needs so that CMTH obtains the benefits from the SPE’s operations; | |
• | in substance, CMTH has the decision-making power to obtain the majority of the benefits of the activities of the SPE, or CMTH has delegated this decision-making power by setting up an “autopilot” mechanism; or | |
• | in substance, CMTH has the right to obtain the majority of the benefits of the activities of the SPE and, therefore, may be exposed to risks incident to the activities of the SPE; or | |
• | in substance, CMTH retains the majority of the residual or ownership risks related to the SPE or its assets in order to obtain the benefits from its activities. |
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• | Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position; |
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• | Income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and | |
• | All resulting exchange differences are recognized in other comprehensive income. |
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• | the application of the fair value option reduces or eliminates an accounting mismatch that would otherwise arise or | |
• | the financial assets are part of a portfolio of financial instruments which is risk managed and reported to senior management on a fair value basis or | |
• | the financial assets consist of debt host and embedded derivatives that must be separated, but CMTH is unable to measure the embedded derivatives separately either at acquisition or at the end of a subsequent financial reporting period. |
• | those that CMTH intends to sell immediately or in the near term, which shall be classified as held for trading, and those that CMTH upon initial recognition designates at fair value through profit or loss; | |
• | those that CMTH upon initial recognition designates asavailable-for-sale; or | |
• | those for which the holder may not recover substantially all of its initial investment, other than because of credit deterioration, which shall be classified asavailable-for-sale. |
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• | those that CMTH upon initial recognition designates as at fair value through profit or loss; | |
• | those that CMTH designates asavailable-for-sale; and | |
• | those that meet the definition of loans and receivables. |
• | the application of the fair value option reduces or eliminates an accounting mismatch that would otherwise arise or |
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• | the financial liabilities are part of a portfolio of financial instruments which are managed and reported to senior management on a fair value basis or | |
• | the financial liabilities consist of debt host and embedded derivatives that are required to be separated, but CMTH is unable to measure the embedded derivatives separately either at acquisition or at the end of a subsequent financial reporting period. |
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• | Buildings:10-50 years | |
• | Equipment: 3-8 years |
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F-26
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F-27
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(i) | significant financial difficulty of the issuer or obligor; | |
(ii) | a breach of contract, such as a default or delinquency in interest or principal payments; | |
(iii) | the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the lender would not otherwise consider; |
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(iv) | it becomes probable that the borrower will enter bankruptcy or other financial reorganization; | |
(v) | the disappearance of an active market for that financial asset because of financial difficulties; or |
(vi) | observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the portfolio, including; |
(a) | adverse changes in the payment status of borrowers in the portfolio; and |
(b) | national or local economic conditions that correlate with defaults on the assets in the portfolio. |
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• | CMTH elected not to apply IFRS 3, “Business combinations”, retrospectively to business combinations prior to the date of transition. | |
• | At transition, CMTH recognized all cumulative actuarial gains and losses on defined benefit pension plans in the opening equity. |
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• | At transition, CMTH elected to reset the cumulative foreign currency translation differences arising from the translation of foreign operations to zero. | |
• | CMTH applied the derecognition provisions of IAS 39, “Financial instruments: Recognition and Measurement”, prospectively for transactions occurring on or after January 1, 2004. |
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Effect of | ||||||||||||||
Japanese | transition to | |||||||||||||
Note | GAAP | IFRS | IFRS | |||||||||||
(Millions of yen) | ||||||||||||||
Assets | ||||||||||||||
(a) | Cash and deposits with banks | 213,364 | 7,011 | 220,375 | ||||||||||
(a)(h) | Call loans | 204,862 | 31,482 | 236,344 | ||||||||||
(h) | Cash collateral on securities borrowed and reverse repurchase agreements | 104,003 | – | 104,003 | ||||||||||
Financial assets held for trading other than derivatives | 30,006 | 0 | 30,006 | |||||||||||
(a) (c)(l) | Derivative financial assets | 57,336 | 123,778 | 181,114 | ||||||||||
(a)(c) | Financial assets designated at fair value through profit or loss | – | 223,460 | 223,460 | ||||||||||
(a)(c)(j)(k)(m) | Investment securities | 4,727,727 | (2,334,357 | ) | 2,393,370 | |||||||||
(a)(b)(k) | Loans and advances | 7,797,135 | 1,460,301 | 9,257,436 | ||||||||||
(j) | Assets pledged as collateral | – | 1,862,017 | 1,862,017 | ||||||||||
(a) | Investment in associates and joint ventures | 19,447 | 410 | 19,857 | ||||||||||
(a)(d) | Property and equipment | 132,795 | 15,644 | 148,439 | ||||||||||
(a) | Intangible assets | 73,499 | 1,963 | 75,462 | ||||||||||
Current income tax assets | 42,139 | – | 42,139 | |||||||||||
(a)(g) | Deferred income tax assets | 144,996 | 73,962 | 218,958 | ||||||||||
(a)(e)(i)(m) | Other assets | 925,528 | (685,690 | ) | 239,838 | |||||||||
Total assets | 14,472,837 | 779,981 | 15,252,818 | |||||||||||
Liabilities | ||||||||||||||
(a) | Deposits | 8,830,598 | (27,521 | ) | 8,803,077 | |||||||||
(a) | Call money | 291,582 | – | 291,582 | ||||||||||
Cash collateral on securities lent and repurchase agreements | 1,821,318 | – | 1,821,318 | |||||||||||
(a)(c)(l) | Derivative financial liabilities | 54,101 | 128,038 | 182,139 | ||||||||||
(a)(c) | Financial liabilities designated at fair value through profit or loss | – | 3,530 | 3,530 | ||||||||||
(a) | Due to trust accounts | 1,051,839 | (1,025,534 | ) | 26,305 | |||||||||
(a) | Due to investors of trust accounts | – | 2,252,157 | 2,252,157 | ||||||||||
(c)(f) | Debt securities issued | 176,262 | 355,854 | 532,116 | ||||||||||
(a)(b) | Borrowings | 474,370 | 11,101 | 485,471 | ||||||||||
(a) | Current income tax liabilities | 9,236 | (687 | ) | 8,549 | |||||||||
(a) | Deferred income tax liabilities | 7,580 | 2,051 | 9,631 | ||||||||||
Provisions | 13,150 | (13,150 | ) | – | ||||||||||
(a)(e) | Retirement benefit obligations | 3,564 | 1,898 | 5,462 | ||||||||||
(a) (i)(m) | Other liabilities | 720,022 | (569,282 | ) | 150,740 | |||||||||
Total liabilities | 13,453,622 | 1,118,455 | 14,572,077 | |||||||||||
Equity attributable to owners of the parent | ||||||||||||||
Share capital | 261,609 | (181,625 | ) | 79,984 | ||||||||||
Capital surplus | 127,347 | (143,231 | ) | (15,884 | ) | |||||||||
Retained earnings | 441,646 | (126,516 | ) | 315,130 | ||||||||||
Other reserves | 42,558 | 112,557 | 155,115 | |||||||||||
Treasury shares | (262 | ) | – | (262 | ) | |||||||||
Total equity attributable to owners of the parent | 872,898 | (338,815 | ) | 534,083 | ||||||||||
Non-controlling interest | 146,317 | 341 | 146,658 | |||||||||||
Total equity | 1,019,215 | (338,474 | ) | 680,741 | ||||||||||
Total liabilities and equity | 14,472,837 | 779,981 | 15,252,818 | |||||||||||
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Japanese | Effect of transition | |||||||||||||
Note | GAAP | to IFRS | IFRS | |||||||||||
(Millions of yen) | ||||||||||||||
Assets | ||||||||||||||
(a) | Cash and deposits with banks | 233,749 | 6,122 | 239,871 | ||||||||||
(a)(h) | Call loans | 15,391 | 8,374 | 23,765 | ||||||||||
(h) | Cash collateral on securities borrowed and reverse repurchase agreements | 8,812 | – | 8,812 | ||||||||||
Financial assets held for trading other than derivatives | 26,230 | 13 | 26,243 | |||||||||||
(a)(c)(l) | Derivative financial assets | 58,932 | 173,446 | 232,378 | ||||||||||
(a)(c) | Financial assets designated at fair value through profit or loss | – | 129,742 | 129,742 | ||||||||||
(a)(c)(j)(k)(m) | Investment securities | 4,956,317 | (1,636,743 | ) | 3,319,574 | |||||||||
(a)(b)(k) | Loans and advances | 8,547,718 | 1,283,370 | 9,831,088 | ||||||||||
(j) | Assets pledged as collateral | – | 1,290,516 | 1,290,516 | ||||||||||
(a) | Investment in associates and joint ventures | 21,250 | 1,393 | 22,643 | ||||||||||
(a)(d) | Property and equipment | 128,095 | 15,720 | 143,815 | ||||||||||
(a) | Intangible assets | 59,223 | 4,288 | 63,511 | ||||||||||
Current income tax assets | 5,937 | – | 5,937 | |||||||||||
(a)(g) | Deferred income tax assets | 192,569 | 67,189 | 259,758 | ||||||||||
(a) (e)(i)(m) | Other assets | 832,223 | (564,885 | ) | 267,338 | |||||||||
Total assets | 15,086,446 | 778,545 | 15,864,991 | |||||||||||
Liabilities | ||||||||||||||
(a) | Deposits | 9,446,535 | (25,189 | ) | 9,421,346 | |||||||||
(a) | Call money | 253,478 | – | 253,478 | ||||||||||
Cash collateral on securities lent and repurchase agreements | 1,255,648 | – | 1,255,648 | |||||||||||
(a)(c)(l) | Derivative financial liabilities | 66,050 | 174,024 | 240,074 | ||||||||||
(a)(c) | Financial liabilities designated at fair value through profit or loss | – | 2,818 | 2,818 | ||||||||||
(a) | Due to trust accounts | 879,918 | (854,326 | ) | 25,592 | |||||||||
(a) | Due to investors of trust accounts | – | 1,891,361 | 1,891,361 | ||||||||||
(c)(f) | Debt securities issued | 174,570 | 198,825 | 373,395 | ||||||||||
(a)(b) | Borrowings | 1,692,566 | 11,531 | 1,704,097 | ||||||||||
(a) | Current income tax liabilities | 3,171 | (139 | ) | 3,032 | |||||||||
(a) | Deferred income tax liabilities | 353 | 2,622 | 2,975 | ||||||||||
Provisions | 12,229 | (12,229 | ) | – | ||||||||||
(a)(e) | Retirement benefit obligations | 4,024 | 1,682 | 5,706 | ||||||||||
(a)(i)(m) | Other liabilities | 609,449 | (380,527 | ) | 228,922 | |||||||||
Total liabilities | 14,397,991 | 1,010,453 | 15,408,444 | |||||||||||
Equity attributable to owners of the parent | ||||||||||||||
Share capital | 261,609 | (100,175 | ) | 161,434 | ||||||||||
Capital surplus | – | (66,344 | ) | (66,344 | ) | |||||||||
Retained earnings | 338,564 | (183,363 | ) | 155,201 | ||||||||||
Other reserves | (98,498 | ) | 118,313 | 19,815 | ||||||||||
Treasury shares | (262 | ) | – | (262 | ) | |||||||||
Total equity attributable to owners of the parent | 501,413 | (231,569 | ) | 269,844 | ||||||||||
Non-controlling interest | 187,042 | (339 | ) | 186,703 | ||||||||||
Total equity | 688,455 | (231,908 | ) | 456,547 | ||||||||||
Total liabilities and equity | 15,086,446 | 778,545 | 15,864,991 | |||||||||||
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Note | At April 1, 2008 | At March 31, 2009 | ||||||||||||
(Millions of yen) | ||||||||||||||
CMTH’s total equity under Japanese GAAP | 1,019,215 | 688,455 | ||||||||||||
(a) | Scope of consolidation and derecognition of transferred financial assets | (37,799 | ) | (26,476 | ) | |||||||||
(b) | Financial instruments — Loans and advances | |||||||||||||
(i | ) | Allowance for impaired loans and advances | 25,936 | (156 | ) | |||||||||
(ii | ) | Fee income and commissions | (5,654 | ) | (4,465 | ) | ||||||||
(iii | ) | Derecognition of financial assets — loan participation | (69 | ) | (46 | ) | ||||||||
(c) | Financial instruments other than loans and advances | |||||||||||||
(i | ) | Fair value of quoted equity securities | (4,635 | ) | 14,095 | |||||||||
(ii | ) | Derecognition of financial assets | – | – | ||||||||||
(iii | ) | Unquoted equity securities | 68,623 | 12,373 | ||||||||||
(iv | ) | Amortized cost for debt instruments | (31 | ) | 1 | |||||||||
(v | ) | Impairment of investment securities-equity securities | – | – | ||||||||||
(vi | ) | Hedge accounting | (4,414 | ) | 120 | |||||||||
(vii | ) | Embedded derivatives | 2,325 | (9,158 | ) | |||||||||
(viii | ) | Derecognition of financial liabilities | (26,065 | ) | (24,891 | ) | ||||||||
(d) | Property and equipment | 8,813 | 8,728 | |||||||||||
(e) | Retirement benefit obligations | (84,575 | ) | (68,995 | ) | |||||||||
(f) | Reclassification from equity to liabilities | (355,903 | ) | (199,321 | ) | |||||||||
Other | 3,063 | 1,716 | ||||||||||||
Tax effect of the above, from (a) to (f) and Other | 20,220 | 39,965 | ||||||||||||
(g) | Recoverability of deferred income tax assets | 51,691 | 24,602 | |||||||||||
CMTH’s total equity under IFRS | 680,741 | 456,547 | ||||||||||||
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Effect of | ||||||||||||||
Japanese | transition to | |||||||||||||
Note | GAAP | IFRS | IFRS | |||||||||||
(Millions of yen) | ||||||||||||||
(a)(b) | Interest income | 187,159 | 45,667 | 232,826 | ||||||||||
(a)(f) | Interest expenses | 94,397 | 10,200 | 104,597 | ||||||||||
Net interest income | 92,762 | 35,467 | 128,229 | |||||||||||
(a)(b) | Fee and commission income | 150,477 | (23,991 | ) | 126,486 | |||||||||
(a) | Fee and commission expenses | 15,059 | 292 | 15,351 | ||||||||||
Net fee and commission income | 135,418 | (24,283 | ) | 111,135 | ||||||||||
(a)(c) | Net losses on financial instruments classified as held for trading | (19,752 | ) | (20,032 | ) | (39,784 | ) | |||||||
(a)(c) | Net losses on financial instruments designated at fair value through profit or loss | – | (40,616 | ) | (40,616 | ) | ||||||||
(a)(c) | Net investment income | (57,974 | ) | 108,865 | 50,891 | |||||||||
(a)(f) | Other operating income | 16,271 | (6,120 | ) | 10,151 | |||||||||
Operating income | 166,725 | 53,281 | 220,006 | |||||||||||
(a)(e) | General and administrative expenses | 149,451 | (17,490 | ) | 131,961 | |||||||||
(a)(b)(c) | Impairment charges | 102,726 | 60,970 | 163,696 | ||||||||||
(a) | Other operating expenses | 24,032 | (4,639 | ) | 19,393 | |||||||||
Operating expenses | 276,209 | 38,841 | 315,050 | |||||||||||
(a) | Share of (loss)/profit of associates and joint ventures | (195 | ) | 1,333 | 1,138 | |||||||||
Operating loss before tax | (109,679 | ) | 15,773 | (93,906 | ) | |||||||||
(a)(g) | Income tax expenses/(benefit) | (23,730 | ) | 74,373 | 50,643 | |||||||||
(n) | Loss attributable to non-controlling interests | 6,084 | (6,084 | ) | – | |||||||||
Loss for the year | (92,033 | ) | (52,516 | ) | (144,549 | ) | ||||||||
Other comprehensive income | ||||||||||||||
(a) | Net loss onavailable-for-sale financial assets | (164,926 | ) | (56,943 | ) | (221,869 | ) | |||||||
(a) | Net (loss)/gains on cash flow hedges | 2,507 | (2,559 | ) | (52 | ) | ||||||||
Exchange differences on translations of foreign operations | (1,979 | ) | – | (1,979 | ) | |||||||||
(a) | Share of other comprehensive loss of associates and joint ventures | – | (2 | ) | (2 | ) | ||||||||
Income tax relating to components of other comprehensive income | 23,343 | 65,610 | 88,953 | |||||||||||
Other comprehensive loss for the year, net of tax | (141,055 | ) | 6,106 | (134,949 | ) | |||||||||
Total comprehensive loss for the year | (233,088 | ) | (46,410 | ) | (279,498 | ) | ||||||||
F-37
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Note | 2009 | |||||||||
(Millions of yen) | ||||||||||
CMTH’s comprehensive income under Japanese GAAP | (233,088 | ) | ||||||||
(n) | Less loss attributable to non-controlling interests | 6,084 | ||||||||
(a) | Scope of consolidation and derecognition of transferred financial assets | 7,486 | ||||||||
(b) | Financial instruments — Loans and advances | |||||||||
(i | ) | Allowance for impaired loans and advances | (15,417 | ) | ||||||
(ii | ) | Fee income and commissions | 702 | |||||||
(iii | ) | Derecognition of financial assets — loan participation | 14 | |||||||
(c) | Financial instruments other than loans and advances | |||||||||
(i | ) | Fair value of quoted equity securities | 11,060 | |||||||
(ii | ) | Derecognition of financial assets | – | |||||||
(iii | ) | Unquoted equity securities | (33,240 | ) | ||||||
(iv | ) | Amortized cost for debt instruments | 19 | |||||||
(v | ) | Impairment of investment securities — equity securities | – | |||||||
(vi | ) | Hedge accounting | 2,679 | |||||||
(vii | ) | Embedded derivatives | (6,712 | ) | ||||||
(viii | ) | Derecognition of financial liabilities | 694 | |||||||
(d) | Property and equipment | (52 | ) | |||||||
(e) | Retirement benefit obligations | 9,211 | ||||||||
(f) | Reclassification from equity to liabilities | (2,075 | ) | |||||||
(g) | Recoverability of deferred income tax assets | (27,089 | ) | |||||||
Other | 226 | |||||||||
CMTH’s comprehensive income under IFRS | (279,498 | ) | ||||||||
3.2. | Primary differences in accounting principles between Japanese GAAP and IFRS |
F-38
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F-39
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At April 1, 2008 | At March 31, 2009 | |||||||
(Millions of yen) | ||||||||
Assets | ||||||||
Cash and deposits with banks | 7,011 | 6,122 | ||||||
Call loans | 31,746 | 8,398 | ||||||
Derivative financial assets | – | 27 | ||||||
Financial assets designated at fair value through profit or loss | 218,206 | 127,675 | ||||||
Investment securities | (267,815 | ) | (161,053 | ) | ||||
Loans and advances | 1,178,938 | 1,012,448 | ||||||
Investment in associates and joint ventures | 79 | 1,393 | ||||||
Property and equipment | 0 | 274 | ||||||
Intangible assets | 64 | 985 | ||||||
Deferred income tax assets | 14,604 | 10,710 | ||||||
Other assets | 24,295 | 16,712 | ||||||
Total assets | 1,207,128 | 1,023,691 | ||||||
Liabilities | ||||||||
Deposits | (25,310 | ) | (23,031 | ) | ||||
Derivative financial liabilities | 981 | 7 | ||||||
Financial liabilities designated at fair value through profit or loss | 3,530 | 2,818 | ||||||
Due to trust accounts | (1,025,535 | ) | (854,326 | ) | ||||
Due to investors of trust accounts | 2,252,157 | 1,891,361 | ||||||
Borrowings | – | 616 | ||||||
Current income tax liabilities | 0 | 1 | ||||||
Deferred income tax liabilities | 327 | 228 | ||||||
Retirement benefit obligations | 9 | 14 | ||||||
Other liabilities | 24,491 | 21,997 | ||||||
Total liabilities | 1,230,650 | 1,039,685 | ||||||
Total equity | (23,522 | ) | (15,994 | ) | ||||
Total liabilities and equity | 1,207,128 | 1,023,691 | ||||||
F-40
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March 31, 2009 | ||||
(Millions of yen) | ||||
Interest income | 37,545 | |||
Interest expenses | 6,607 | |||
Net interest income | 30,938 | |||
Fee and commission income | (16,509 | ) | ||
Fee and commission expenses | 1,132 | |||
Net fee and commission income | (17,641 | ) | ||
Net losses on financial instruments classified as held for trading | (11,675 | ) | ||
Net losses on financial instruments carried at fair value | (37,981 | ) | ||
Net investment income | 81,228 | |||
Other operating income | (4,047 | ) | ||
Operating income | 40,822 | |||
General and administrative expenses | 345 | |||
Other expenses | (3,635 | ) | ||
Operating expenses | (3,290 | ) | ||
Share of profit in associates and joint ventures | 1,333 | |||
Operating profit (loss) before tax | 45,445 | |||
Income tax expenses | 17,990 | |||
Profit (loss) for the year | 27,455 | |||
Other comprehensive income (loss) | ||||
Net loss onavailable-for-sale financial assets | (19,821 | ) | ||
Net loss on cash flow hedges | (146 | ) | ||
Share of other comprehensive loss of associates | (2 | ) | ||
Other comprehensive income (loss) for the year, net of tax | (19,969 | ) | ||
Total comprehensive income (loss) for the year | 7,486 | |||
F-41
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F-42
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F-43
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F-44
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• | a decrease of ¥4,095 million and ¥4,316 million in derivative financial assets at April 1, 2008 and March 31, 2009, respectively | |
• | a decrease of ¥3,498 million and ¥3,517 million in debt securities issued at April 1, 2008 and March 31, 2009, respectively | |
• | an increase of ¥2,752 million and a decrease of ¥7,872 million in investment securities (debt securities) at April 1, 2008 and March 31, 2009, respectively | |
• | an increase of ¥13,914 million in net losses on financial instruments classified as held for trading for the fiscal year ended March 31, 2009 |
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F-46
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F-47
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At April 1, 2008 | At March 31, 2009 | For the fiscal year ended March 31, 2009 | ||||||||||||||||||
Cash and cash | Cash and cash | Operating | Investing | Financing | ||||||||||||||||
equivalents | equivalents | activities | activities | activities | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
Japanese GAAP | 151,850 | 217,271 | 796,376 | (585,774 | ) | (143,198 | ) | |||||||||||||
Change in scope of consolidation | 7,011 | 6,122 | (888 | ) | (4,803 | ) | – | |||||||||||||
IFRS adjustments | ||||||||||||||||||||
Call loans | 236,344 | 23,765 | (212,579 | ) | – | – | ||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 104,003 | 8,812 | (95,191 | ) | – | – | ||||||||||||||
Deposit with banks | 61,514 | 16,478 | (1,178,133 | ) | – | 1,137,901 | ||||||||||||||
IFRS | 560,722 | 272,448 | (690,415 | ) | (590,577 | ) | 994,703 | |||||||||||||
F-48
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4. | Financial-risk management |
F-49
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F-50
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4.2.1. | Credit risk measurement |
F-51
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Internal rating | External rating Moody’s | External rating S&P | Borrower Classification | Description of the grade | ||||
A | Aaa to Aa3 | AAA to AA- | ||||||
B+ | A1 to A3 | A+ to A- | ||||||
B | Baa1 | BBB+ | ||||||
C+ | Baa2 to Baa3 | BBB to BBB- | Normal | Normal | ||||
C | Ba1 | BB+ | ||||||
C- | Ba2 to Ba3 | BB to BB- | ||||||
D1 | B1 | B+ | Caution | Caution | ||||
D2 | Below B2 | Below B | ||||||
D3 | N/A | N/A | Close Observation | |||||
E | N/A | N/A | Possible Bankruptcy | Close observation or | ||||
F | N/A | N/A | Virtual or Legal Bankruptcy | lower | ||||
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F-53
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F-54
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At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | ||||||||||||||||||||||
Credit risk | Impairment | Credit risk | Impairment | Credit risk | Impairment | |||||||||||||||||||
exposure | losses | exposure | losses | exposure | losses | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||
Normal | 13,250,682 | 18,314 | 13,753,447 | 17,146 | 12,739,005 | 14,319 | ||||||||||||||||||
Caution | 442,649 | 9,939 | 521,944 | 10,560 | 444,806 | 10,673 | ||||||||||||||||||
Close observation or lower | 93,152 | 69,156 | 124,523 | 81,774 | 169,756 | 120,691 | ||||||||||||||||||
Not rated(1) | 127,810 | – | 146,204 | – | 168,258 | – | ||||||||||||||||||
On-balance sheet items total | 13,914,293 | 97,409 | 14,546,118 | 109,480 | 13,521,825 | 145,683 | ||||||||||||||||||
Off-balance sheet items total | 870,918 | – | 806,348 | – | 785,545 | – | ||||||||||||||||||
Total | 14,785,211 | 97,409 | 15,352,466 | 109,480 | 14,307,370 | 145,683 | ||||||||||||||||||
(1) | Mainly securitized financial assets such as asset-backed securities and mortgage-backed securities. |
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At March 31 | At April 1 | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Cash and deposits with banks | 268,450 | 239,871 | 220,375 | |||||||||
Call loans | 10,875 | 23,765 | 236,344 | |||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | 8,812 | 104,003 | |||||||||
Financial assets held for trading other than derivatives(1) | 12,007 | 26,243 | 30,006 | |||||||||
Derivative financial assets | 203,406 | 232,378 | 181,114 | |||||||||
Financial assets designated at fair value through profit or loss(2) | 31,799 | 64,442 | 64,881 | |||||||||
Investment securities – debt securities(3) | 1,753,222 | 2,699,505 | 1,453,284 | |||||||||
Loans and advances | 9,710,846 | 9,831,088 | 9,257,436 | |||||||||
Assets pledged as collateral(4) | 1,721,353 | 1,290,516 | 1,862,017 | |||||||||
Other assets | 200,814 | 129,498 | 112,365 | |||||||||
Total | 13,914,293 | 14,546,118 | 13,521,825 | |||||||||
(1) | Financial assets held for trading presented above consists of debt securities. | |
(2) | Financial assets designated at fair value through profit or loss presented above include only debt securities. | |
(3) | Investment securities – equity securities are not included in the table above because the portfolio account is not exposed to credit risk. | |
(4) | Assets pledged as collateral wholly consists of debt securities. |
At March 31 | At April 1 | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Financial guarantees | 18,281 | 23,857 | 23,758 | |||||||||
Loan commitments and other credit related obligations — individual | 119,982 | 123,568 | 126,233 | |||||||||
Loan commitments and other credit related obligations — corporate | 732,655 | 658,923 | 635,554 | |||||||||
Total | 870,918 | 806,348 | 785,545 | |||||||||
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• | 99%, 99%, and 98% of the balance of the loans and advances at March 31, 2010, March 31, 2009, and April 1, 2008, respectively, are categorized in the top two categories, normal or caution, of the internal rating system; | |
• | 99%, 98%, and 98% of the balance of the loans and advances at March 31, 2010, March 31, 2009, and April 1, 2008, respectively, are considered to be neither past due nor impaired; | |
• | More than 95%, 97%, and 95% of the balance of the investment securities-debt securities at March 31, 2010, March 31, 2009, and April 1, 2008, respectively, have at least an A-credit rating based on S&P rating classification or their equivalent. |
Close | ||||||||||||||||||||
observation or | ||||||||||||||||||||
Normal | Caution | lower | Not rated | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||
Cash and deposits with banks | 268,450 | — | — | — | 268,450 | |||||||||||||||
Call loans | 10,875 | — | — | — | 10,875 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | — | — | — | 1,521 | |||||||||||||||
Financial assets held for trading other than derivatives | 12,007 | — | — | — | 12,007 | |||||||||||||||
Derivative financial assets | 202,821 | 547 | 38 | — | 203,406 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 2,080 | 29,719 | — | — | 31,799 | |||||||||||||||
Investment securities | 1,637,030 | 14,172 | 58 | 101,962 | 1,753,222 | |||||||||||||||
Loans and advances | 9,223,585 | 397,935 | 89,326 | — | 9,710,846 | |||||||||||||||
Assets pledged as collateral | 1,721,353 | — | — | — | 1,721,353 | |||||||||||||||
Other assets | 170,960 | 276 | 3,730 | 25,848 | 200,814 | |||||||||||||||
Total | 13,250,682 | 442,649 | 93,152 | 127,810 | 13,914,293 | |||||||||||||||
At March 31, 2009 | ||||||||||||||||||||
Cash and deposits with banks | 239,871 | — | — | — | 239,871 | |||||||||||||||
Call loans | 23,765 | — | — | — | 23,765 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 8,812 | — | — | — | 8,812 | |||||||||||||||
Financial assets held for trading other than derivatives | 26,243 | — | — | — | 26,243 | |||||||||||||||
Derivative financial assets | 230,811 | 1,558 | 9 | — | 232,378 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 63,084 | 70 | 105 | 1,183 | 64,442 | |||||||||||||||
Investment securities | 2,570,327 | 14,145 | 64 | 114,969 | 2,699,505 | |||||||||||||||
Loans and advances | 9,205,560 | 505,716 | 119,812 | — | 9,831,088 | |||||||||||||||
Assets pledged as collateral | 1,290,516 | — | — | — | 1,290,516 | |||||||||||||||
Other assets | 94,458 | 455 | 4,533 | 30,052 | 129,498 | |||||||||||||||
Total | 13,753,447 | 521,944 | 124,523 | 146,204 | �� | 14,546,118 | ||||||||||||||
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Close | ||||||||||||||||||||
observation or | ||||||||||||||||||||
Normal | Caution | lower | Not rated | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At April 1, 2008 | ||||||||||||||||||||
Cash and deposits with banks | 220,375 | – | – | – | 220,375 | |||||||||||||||
Call loans | 236,344 | – | – | – | 236,344 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 104,003 | – | – | – | 104,003 | |||||||||||||||
Financial assets held for trading other than derivatives | 30,006 | – | – | – | 30,006 | |||||||||||||||
Derivative financial assets | 179,827 | 1,011 | 276 | – | 181,114 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 62,318 | 987 | – | 1,576 | 64,881 | |||||||||||||||
Investment securities | 1,317,738 | 2,000 | 68 | 133,478 | 1,453,284 | |||||||||||||||
Loans and advances | 8,653,759 | 440,400 | 163,277 | – | 9,257,436 | |||||||||||||||
Assets pledged as collateral | 1,862,017 | – | – | – | 1,862,017 | |||||||||||||||
Other assets | 72,618 | 408 | 6,135 | 33,204 | 112,365 | |||||||||||||||
Total | 12,739,005 | 444,806 | 169,756 | 168,258 | 13,521,825 | |||||||||||||||
Less- | ||||||||||||||||||||
impairment | ||||||||||||||||||||
Japan | United States | Other | allowance | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2010 On-balance items | ||||||||||||||||||||
Cash and deposits with banks | 245,518 | 195 | 22,737 | – | 268,450 | |||||||||||||||
Call loans | 10,875 | – | – | – | 10,875 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | – | – | – | 1,521 | |||||||||||||||
Financial assets held for trading other than derivatives | 12,007 | – | – | – | 12,007 | |||||||||||||||
Derivative financial assets | 188,484 | 7,359 | 7,563 | – | 203,406 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 31,799 | – | – | – | 31,799 | |||||||||||||||
Investment securities | 1,325,404 | 120,159 | 307,659 | – | 1,753,222 | |||||||||||||||
Loans and advances | 9,581,036 | 39,090 | 151,010 | 60,290 | 9,710,846 | |||||||||||||||
Assets pledged as collateral | 968,200 | 696,087 | 57,066 | – | 1,721,353 | |||||||||||||||
Other assets | 199,526 | 1,623 | 1,212 | 1,547 | 200,814 | |||||||||||||||
Total | 12,564,370 | 864,513 | 547,247 | 61,837 | 13,914,293 | |||||||||||||||
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Japan | United States | Other | Total | |||||||||||||
Off-balance items | ||||||||||||||||
Financial guarantees | 16,929 | 1,323 | 29 | 18,281 | ||||||||||||
Loan commitments and other credit related obligations — individual | 119,982 | – | – | 119,982 | ||||||||||||
Loan commitments and other credit related obligations — corporate | 731,725 | 930 | – | 732,655 | ||||||||||||
Total | 868,636 | 2,253 | 29 | 870,918 | ||||||||||||
Less- | ||||||||||||||||||||
impairment | ||||||||||||||||||||
Japan | United States | Other | allowance | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2009 On-balance items | ||||||||||||||||||||
Cash and deposits with banks | 227,586 | 20 | 12,265 | – | 239,871 | |||||||||||||||
Call loans | 11,981 | – | 11,784 | – | 23,765 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 8,812 | – | – | – | 8,812 | |||||||||||||||
Financial assets held for trading other than derivatives | 26,243 | – | – | – | 26,243 | |||||||||||||||
Derivative financial assets | 212,856 | 9,388 | 10,134 | – | 232,378 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 64,442 | – | – | – | 64,442 | |||||||||||||||
Investment securities | 2,208,630 | 229,128 | 261,747 | – | 2,699,505 | |||||||||||||||
Loans and advances | 9,667,076 | 48,178 | 179,345 | 63,511 | 9,831,088 | |||||||||||||||
Assets pledged as collateral | 716,398 | 476,816 | 97,302 | – | 1,290,516 | |||||||||||||||
Other assets | 127,165 | 2,538 | 1,575 | 1,780 | 129,498 | |||||||||||||||
Total | 13,271,189 | 766,068 | 574,152 | 65,291 | 14,546,118 | |||||||||||||||
Off-balance items | Japan | United States | Other | Total | ||||||||||||
Financial guarantees | 18,513 | 4,151 | 1,193 | 23,857 | ||||||||||||
Loan commitments and other credit related obligations — individual | 123,568 | – | – | 123,568 | ||||||||||||
Loan commitments and other credit related obligations — corporate | 655,949 | 2,974 | – | 658,923 | ||||||||||||
Total | 798,030 | 7,125 | 1,193 | 806,348 | ||||||||||||
F-59
Table of Contents
Less- | ||||||||||||||||||||
impairment | ||||||||||||||||||||
Japan | United States | Other | allowance | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At April 1, 2008 On-balance items | ||||||||||||||||||||
Cash and deposits with banks | 177,786 | 571 | 42,018 | – | 220,375 | |||||||||||||||
Call loans | 63,344 | – | 173,000 | – | 236,344 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 104,003 | – | – | – | 104,003 | |||||||||||||||
Financial assets held for trading other than derivatives | 30,006 | – | – | – | 30,006 | |||||||||||||||
Derivative financial assets | 155,926 | 8,216 | 16,972 | – | 181,114 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 64,881 | – | – | – | 64,881 | |||||||||||||||
Investment securities | 1,301,015 | 93,559 | 58,710 | – | 1,453,284 | |||||||||||||||
Loans and advances | 9,130,666 | 36,297 | 137,394 | 46,921 | 9,257,436 | |||||||||||||||
Assets pledged as collateral | 1,105,354 | 726,233 | 30,430 | – | 1,862,017 | |||||||||||||||
Other assets | 106,722 | 6,986 | 69 | 1,412 | 112,365 | |||||||||||||||
Total | 12,239,703 | 871,862 | 458,593 | 48,333 | 13,521,825 | |||||||||||||||
Japan | United States | Other | Total | |||||||||||||
Off-balance items | ||||||||||||||||
Financial guarantees | 16,314 | 6,204 | 1,240 | 23,758 | ||||||||||||
Loan commitments and other credit related obligations — individual | 126,233 | – | – | 126,233 | ||||||||||||
Loan commitments and other credit related obligations — corporate | 630,070 | 5,320 | 164 | 635,554 | ||||||||||||
Total | 772,617 | 11,524 | 1,404 | 785,545 | ||||||||||||
Note: | CMTH principally operates in Japan and its credit exposures predominantly rest with the counterparties in Japan. However, these domestic counterparties are well diversified across a variety of industry sectors and the credit risk concentration has been mitigated. |
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(b) | Industry sectors |
Domestic | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | Individual | |||||||||||||||||||||||||||||||||||||||||||
Govern- | Banks and | Less- | ||||||||||||||||||||||||||||||||||||||||||
Manufac- | ment and | financial | Other | Housing | Total | Impairment | ||||||||||||||||||||||||||||||||||||||
turing | public | institutions | Real estate | industries | loans | Other loans | domestic | Overseas | allowance | Total | ||||||||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||||||||||
At March 31, 2010 On-balance items | ||||||||||||||||||||||||||||||||||||||||||||
Cash and deposits with banks | – | – | 245,518 | – | – | – | – | 245,518 | 22,932 | – | 268,450 | |||||||||||||||||||||||||||||||||
Call loans | – | – | 10,875 | – | – | – | – | 10,875 | – | – | 10,875 | |||||||||||||||||||||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | – | – | 1,521 | – | – | – | – | 1,521 | – | – | 1,521 | |||||||||||||||||||||||||||||||||
Financial assets held for trading other than derivatives | 1,990 | 50 | 7,970 | – | 1,997 | – | – | 12,007 | – | – | 12,007 | |||||||||||||||||||||||||||||||||
Derivative financial assets | 4,778 | – | 174,037 | 3,103 | 6,566 | – | – | 188,484 | 14,922 | – | 203,406 | |||||||||||||||||||||||||||||||||
Financial assets designated at fair value through profit or loss | – | – | – | – | 31,799 | – | – | 31,799 | – | – | 31,799 | |||||||||||||||||||||||||||||||||
Investment securities | 9,921 | 1,167,037 | 14,888 | 12,074 | 121,484 | – | – | 1,325,404 | 427,818 | – | 1,753,222 | |||||||||||||||||||||||||||||||||
Loans and advances | 953,096 | 5,945 | 1,662,671 | 1,243,964 | 1,761,822 | 3,620,867 | 332,671 | 9,581,036 | 190,100 | 60,290 | 9,710,846 | |||||||||||||||||||||||||||||||||
Assets pledged as collateral | – | 930,095 | – | – | 38,105 | – | – | 968,200 | 753,153 | – | 1,721,353 | |||||||||||||||||||||||||||||||||
Other assets | 2,336 | 2,845 | 164,452 | 14,616 | 5,686 | 8,783 | 808 | 199,526 | 2,835 | 1,547 | 200,814 | |||||||||||||||||||||||||||||||||
Total | 972,121 | 2,105,972 | 2,281,932 | 1,273,757 | 1,967,459 | 3,629,650 | 333,479 | 12,564,370 | 1,411,760 | 61,837 | 13,914,293 | |||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | Individual | |||||||||||||||||||||||||||||||||||||||||||
Govern- | Banks and | |||||||||||||||||||||||||||||||||||||||||||
Manufac- | ment and | financial | Other | Housing | Total | |||||||||||||||||||||||||||||||||||||||
turing | public | institutions | Real estate | industries | loans | Other loans | domestic | Overseas | Total | |||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||||
Off-balance items | ||||||||||||||||||||||||||||||||||||||||||||
Financial guarantees | 8 | – | 31 | – | 16,752 | 55 | 83 | 16,929 | 1,352 | 18,281 | ||||||||||||||||||||||||||||||||||
Loan commitments and other credit related obligations — individual | – | – | – | – | – | 41,916 | 78,066 | 119,982 | – | 119,982 | ||||||||||||||||||||||||||||||||||
Loan commitments and other credit related obligations — corporate | 309,952 | – | 60,336 | 82,667 | 278,770 | – | – | 731,725 | 930 | 732,655 | ||||||||||||||||||||||||||||||||||
Total | 309,960 | – | 60,367 | 82,667 | 295,522 | 41,971 | 78,149 | 868,636 | 2,282 | 870,918 | ||||||||||||||||||||||||||||||||||
F-61
Table of Contents
Domestic | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | Individual | |||||||||||||||||||||||||||||||||||||||||||
Govern- | ||||||||||||||||||||||||||||||||||||||||||||
Manufac- | ment and | Banks and financial | Less-Impairment | |||||||||||||||||||||||||||||||||||||||||
turing | public | institutions | Real estate | Other industries | Housing loans | Other loans | Total domestic | Overseas | allowance | Total | ||||||||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||||||||||
At March 31, 2009 On-balance items | ||||||||||||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||||
Cash and deposits with banks | – | – | 227,586 | – | – | – | – | 227,586 | 12,285 | – | 239,871 | |||||||||||||||||||||||||||||||||
Call loans | – | – | 11,981 | – | – | – | – | 11,981 | 11,784 | – | 23,765 | |||||||||||||||||||||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | – | – | 8,812 | – | – | – | – | 8,812 | – | – | 8,812 | |||||||||||||||||||||||||||||||||
Financial assets held for trading other than derivatives | 8,172 | 117 | 8,971 | – | 8,983 | – | – | 26,243 | – | – | 26,243 | |||||||||||||||||||||||||||||||||
Derivative financial assets | 5,360 | – | 193,940 | 4,202 | 9,354 | – | – | 212,856 | 19,522 | – | 232,378 | |||||||||||||||||||||||||||||||||
Financial assets designated at fair value through profit or loss | – | – | – | – | 64,442 | – | – | 64,442 | – | – | 64,442 | |||||||||||||||||||||||||||||||||
Investment securities | 9,762 | 2,032,914 | 11,588 | 10,250 | 144,116 | – | – | 2,208,630 | 490,875 | – | 2,699,505 | |||||||||||||||||||||||||||||||||
Loans and advances | 1,038,646 | 6,810 | 1,530,921 | 1,389,369 | 1,959,721 | 3,370,466 | 371,143 | 9,667,076 | 227,523 | 63,511 | 9,831,088 | |||||||||||||||||||||||||||||||||
Assets pledged as collateral | – | 716,398 | – | – | – | – | – | 716,398 | 574,118 | – | 1,290,516 | |||||||||||||||||||||||||||||||||
Other assets | 2,695 | 5,244 | 85,578 | 17,393 | 6,635 | 8,665 | 955 | 127,165 | 4,113 | 1,780 | 129,498 | |||||||||||||||||||||||||||||||||
Total | 1,064,635 | 2,761,483 | 2,079,377 | 1,421,214 | 2,193,251 | 3,379,131 | 372,098 | 13,271,189 | 1,340,220 | 65,291 | 14,546,118 | |||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | Individual | |||||||||||||||||||||||||||||||||||||||||||
Govern- | Banks and | |||||||||||||||||||||||||||||||||||||||||||
Manufac- | ment and | financial | Other | Housing | Total | |||||||||||||||||||||||||||||||||||||||
turing | public | institutions | Real estate | industries | loans | Other loans | domestic | Overseas | Total | |||||||||||||||||||||||||||||||||||
Off-balance items | ||||||||||||||||||||||||||||||||||||||||||||
Financial guarantees | 65 | – | 94 | – | 18,184 | 75 | 95 | 18,513 | 5,344 | 23,857 | ||||||||||||||||||||||||||||||||||
Loan commitments and other credit related obligations — individual | – | – | – | – | – | 33,188 | 90,380 | 123,568 | – | 123,568 | ||||||||||||||||||||||||||||||||||
Loan commitments and other credit related obligations-corporate | 287,151 | – | 61,240 | 58,532 | 249,026 | – | – | 655,949 | 2,974 | 658,923 | ||||||||||||||||||||||||||||||||||
Total | 287,216 | – | 61,334 | 58,532 | 267,210 | 33,263 | 90,475 | 798,030 | 8,318 | 806,348 | ||||||||||||||||||||||||||||||||||
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Domestic | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | Individual | |||||||||||||||||||||||||||||||||||||||||||
Govern- | Banks and | Less- | ||||||||||||||||||||||||||||||||||||||||||
Manufac- | ment and | financial | Other | Housing | Total | Impairment | ||||||||||||||||||||||||||||||||||||||
turing | public | institutions | Real estate | industries | loans | Other loans | domestic | Overseas | allowance | Total | ||||||||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||||||||||
At April 1, 2008 On-balance items | ||||||||||||||||||||||||||||||||||||||||||||
Cash and deposits with banks | – | – | 177,786 | – | – | – | – | 177,786 | 42,589 | – | 220,375 | |||||||||||||||||||||||||||||||||
Call loans | – | – | 63,344 | – | – | – | – | 63,344 | 173,000 | – | 236,344 | |||||||||||||||||||||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | – | – | 104,003 | – | – | – | – | 104,003 | – | – | 104,003 | |||||||||||||||||||||||||||||||||
Financial assets held for trading other than derivatives | 14,976 | 49 | 2,995 | 1,000 | 10,986 | – | – | 30,006 | – | – | 30,006 | |||||||||||||||||||||||||||||||||
Derivative financial assets | 5,592 | – | 136,445 | 4,926 | 8,963 | – | – | 155,926 | 25,188 | – | 181,114 | |||||||||||||||||||||||||||||||||
Financial assets designated at fair value through profit or loss | – | – | – | – | 64,881 | – | – | 64,881 | – | – | 64,881 | |||||||||||||||||||||||||||||||||
Investment securities | – | 1,083,463 | 6,865 | – | 210,687 | – | – | 1,301,015 | 152,269 | – | 1,453,284 | |||||||||||||||||||||||||||||||||
Loans and advances | 869,412 | 10,193 | 1,362,212 | 1,515,662 | 1,947,613 | 3,011,443 | 414,131 | 9,130,666 | 173,691 | 46,921 | 9,257,436 | |||||||||||||||||||||||||||||||||
Assets pledged as collateral | – | 1,105,354 | – | – | – | – | – | 1,105,354 | 756,663 | – | 1,862,017 | |||||||||||||||||||||||||||||||||
Other assets | 2,462 | 3,097 | 64,858 | 19,414 | 7,189 | 8,528 | 1,174 | 106,722 | 7,055 | 1,412 | 112,365 | |||||||||||||||||||||||||||||||||
Total | 892,442 | 2,202,156 | 1,918,508 | 1,541,002 | 2,250,319 | 3,019,971 | 415,305 | 12,239,703 | 1,330,455 | 48,333 | 13,521,825 | |||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||||||
Govern- | Individual | |||||||||||||||||||||||||||||||||||||||||||
Manufac- | ment and | Banks and financial | ||||||||||||||||||||||||||||||||||||||||||
turing | public | institutions | Real estate | Other industries | Housing loans | Other loans | Total domestic | Overseas | Total | |||||||||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||||||||||
Off-balance items | ||||||||||||||||||||||||||||||||||||||||||||
Financial guarantees | 365 | – | 156 | – | 15,601 | 86 | 106 | 16,314 | 7,444 | 23,758 | ||||||||||||||||||||||||||||||||||
Loan commitments and other credit related obligations — individual | – | – | – | – | – | 22,997 | 103,236 | 126,233 | – | 126,233 | ||||||||||||||||||||||||||||||||||
Loan commitments and other credit related obligations — corporate | 285,965 | – | 78,741 | 57,487 | 207,877 | – | – | 630,070 | 5,484 | 635,554 | ||||||||||||||||||||||||||||||||||
Total | 286,330 | – | 78,897 | 57,487 | 223,478 | 23,083 | 103,342 | 772,617 | 12,928 | 785,545 | ||||||||||||||||||||||||||||||||||
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At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Neither past due nor impaired | 9,600,004 | 9,682,755 | 9,074,321 | |||||||||
Past due but not impaired | 49,750 | 56,203 | 44,813 | |||||||||
Individually impaired | 121,382 | 155,641 | 185,223 | |||||||||
Amount before deducting impairment allowance | 9,771,136 | 9,894,599 | 9,304,357 | |||||||||
Less: allowance for impairment | ||||||||||||
Normal | 18,299 | 17,130 | 14,311 | |||||||||
Caution | 9,934 | 10,552 | 10,664 | |||||||||
Close observation or lower | 32,057 | 35,829 | 21,946 | |||||||||
Net | 9,710,846 | 9,831,088 | 9,257,436 | |||||||||
(a) | Loans and advances neither past due nor impaired |
Loans and advances | ||||||||||||
Amount before | ||||||||||||
deducting | ||||||||||||
impairment | ||||||||||||
Individual | Corporate | allowance | ||||||||||
(Millions of yen) | ||||||||||||
At March 31, 2010 | ||||||||||||
Normal | 3,814,368 | 5,393,554 | 9,207,922 | |||||||||
Caution | 50,411 | 341,671 | 392,082 | |||||||||
Total | 3,864,779 | 5,735,225 | 9,600,004 | |||||||||
At March 31, 2009 | ||||||||||||
Normal | 3,605,115 | 5,572,138 | 9,177,253 | |||||||||
Caution | 48,102 | 457,400 | 505,502 | |||||||||
Total | 3,653,217 | 6,029,538 | 9,682,755 | |||||||||
At April 1, 2008 | ||||||||||||
Normal | 3,296,348 | 5,337,857 | 8,634,205 | |||||||||
Caution | 49,838 | 390,278 | 440,116 | |||||||||
Total | 3,346,186 | 5,728,135 | 9,074,321 | |||||||||
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Loans and advances | ||||||||||||
Amount before | ||||||||||||
deducting impairment | ||||||||||||
Individual | Corporate | allowance | ||||||||||
(Millions of yen) | ||||||||||||
At March 31, 2010 | ||||||||||||
Past due up to 30 days | 37,361 | 92 | 37,453 | |||||||||
Past due 30 – 60 days | 7,012 | 83 | 7,095 | |||||||||
Over 60 days | 3,606 | 1,596 | 5,202 | |||||||||
Total | 47,979 | 1,771 | 49,750 | |||||||||
Normal | 33,942 | 20 | 33,962 | |||||||||
Caution | 14,037 | 1,751 | 15,788 | |||||||||
Total | 47,979 | 1,771 | 49,750 | |||||||||
At March 31, 2009 | ||||||||||||
Past due up to 30 days | 41,410 | 75 | 41,485 | |||||||||
Past due 30 – 60 days | 6,794 | 3,914 | 10,708 | |||||||||
Over 60 days | 2,182 | 1,828 | 4,010 | |||||||||
Total | 50,386 | 5,817 | 56,203 | |||||||||
Normal | 45,367 | 69 | 45,436 | |||||||||
Caution | 5,019 | 5,748 | 10,767 | |||||||||
Total | 50,386 | 5,817 | 56,203 | |||||||||
At April 1, 2008 | ||||||||||||
Past due up to 30 days | 36,434 | 66 | 36,500 | |||||||||
Past due 30 – 60 days | 4,714 | 541 | 5,255 | |||||||||
Over 60 days | 2,888 | 170 | 3,058 | |||||||||
Total | 44,036 | 777 | 44,813 | |||||||||
Normal | 33,797 | 67 | 33,864 | |||||||||
Caution | 10,239 | 710 | 10,949 | |||||||||
Total | 44,036 | 777 | 44,813 | |||||||||
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Loans and advances | ||||||||||||
Amount before | ||||||||||||
deducting | ||||||||||||
impairment | ||||||||||||
Individual | Corporate | allowance | ||||||||||
(Millions of yen) | ||||||||||||
At March 31, 2010 | ||||||||||||
Carrying amount | 40,782 | 80,600 | 121,382 | |||||||||
Fair value of collateral | 29,117 | 27,466 | 56,583 | |||||||||
At March 31, 2009 | ||||||||||||
Carrying amount | 38,004 | 117,637 | 155,641 | |||||||||
Fair value of collateral | 29,998 | 55,495 | 85,493 | |||||||||
At April 1, 2008 | ||||||||||||
Carrying amount | 35,351 | 149,872 | 185,223 | |||||||||
Fair value of collateral | 28,458 | 65,899 | 94,357 |
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Financial assets | ||||||||||||||||||||
Financial assets | designated at | |||||||||||||||||||
held for trading | fair value | |||||||||||||||||||
other than | through profit | Investment | Assets pledged | |||||||||||||||||
derivatives | or loss | securities | as collateral | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||
AAA to AA- | 50 | – | 1,430,412 | 1,721,353 | 3,151,815 | |||||||||||||||
A+ to A- | 1,985 | – | 239,261 | – | 241,246 | |||||||||||||||
BBB+ | – | – | 36,025 | – | 36,025 | |||||||||||||||
BBB to BBB- | 7,982 | 2,080 | 20,294 | – | 30,356 | |||||||||||||||
Lower than BBB- | 1,990 | 29,719 | 27,230 | – | 58,939 | |||||||||||||||
Not rated | – | – | – | – | – | |||||||||||||||
Total | 12,007 | 31,799 | 1,753,222 | 1,721,353 | 3,518,381 | |||||||||||||||
At March 31, 2009 | ||||||||||||||||||||
AAA to AA- | 117 | – | 2,400,006 | 1,290,516 | 3,690,639 | |||||||||||||||
A+ to A- | 17,942 | – | 241,186 | – | 259,128 | |||||||||||||||
BBB+ | – | – | 23,897 | – | 23,897 | |||||||||||||||
BBB to BBB- | 8,184 | 58,521 | 7,207 | – | 73,912 | |||||||||||||||
Lower than BBB- | – | 4,738 | 27,209 | – | 31,947 | |||||||||||||||
Not rated | – | 1,183 | – | – | 1,183 | |||||||||||||||
Total | 26,243 | 64,442 | 2,699,505 | 1,290,516 | 4,080,706 | |||||||||||||||
At April 1, 2008 | ||||||||||||||||||||
AAA to AA- | 50 | – | 1,296,890 | 1,862,017 | 3,158,957 | |||||||||||||||
A+ to A- | 19,976 | – | 86,876 | – | 106,852 | |||||||||||||||
BBB+ | 5,989 | – | 37,900 | – | 43,889 | |||||||||||||||
BBB to BBB- | 3,991 | 58,381 | 26,550 | – | 88,922 | |||||||||||||||
Lower than BBB- | – | 4,924 | 5,068 | – | 9,992 | |||||||||||||||
Not rated | – | 1,576 | – | – | 1,576 | |||||||||||||||
Total | 30,006 | 64,881 | 1,453,284 | 1,862,017 | 3,410,188 | |||||||||||||||
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At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | ||||||||||||||||||||||||||||||||||
Gross | Impairment | Carrying | Gross | Impairment | Carrying | Gross | Impairment | Carrying | ||||||||||||||||||||||||||||
amount | losses | amount | amount | losses | amount | amount | losses | amount | ||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||
Investment securities — equity securities | 944,101 | 193,628 | 750,473 | 806,005 | 185,936 | 620,069 | 1,028,290 | 88,204 | 940,086 | |||||||||||||||||||||||||||
Investment securities — debt securities | 1,755,137 | 1,915 | 1,753,222 | 2,701,413 | 1,908 | 2,699,505 | 1,455,189 | 1,905 | 1,453,284 | |||||||||||||||||||||||||||
Investment securities sub total | 2,699,238 | 195,543 | 2,503,695 | 3,507,418 | 187,844 | 3,319,574 | 2,483,479 | 90,109 | 2,393,370 | |||||||||||||||||||||||||||
Loans and advances | 9,804,793 | 93,947 | 9,710,846 | 9,936,879 | 105,791 | 9,831,088 | 9,399,802 | 142,366 | 9,257,436 | |||||||||||||||||||||||||||
Other assets | 255,647 | 1,547 | 254,100 | 184,290 | 1,780 | 182,510 | 166,067 | 1,412 | 164,655 | |||||||||||||||||||||||||||
Total | 12,759,678 | 291,037 | 12,468,641 | 13,628,587 | 295,415 | 13,333,172 | 12,049,348 | 233,887 | 11,815,461 | |||||||||||||||||||||||||||
4.3.1. | Market risk measurement techniques |
(a) | Value at Risk |
F-68
Table of Contents
(b) | Stress test |
F-69
Table of Contents
4.3.2. | VaR summary |
At year end | Average | High | Low | |||||||||||||||
(Billions of yen) | ||||||||||||||||||
For the year ended March 31, 2010 | ||||||||||||||||||
Trading book | Interest rate risk / Foreign exchange risk | 0.0 | 0.7 | 2.2 | 0.0 | |||||||||||||
Equity risk / Other risk | – | – | – | – | ||||||||||||||
Banking book | Interest rate risk / Foreign exchange risk | 45.1 | 43.4 | 56.7 | 34.4 | |||||||||||||
Equity risk / Other risk | 178.6 | 183.8 | 207.9 | 162.6 | ||||||||||||||
For the year ended March 31, 2009 | ||||||||||||||||||
Trading book | Interest rate risk / Foreign exchange risk | 0.1 | 0.4 | 1.8 | 0.0 | |||||||||||||
Equity risk / Other risk | – | – | – | – | ||||||||||||||
Banking book | Interest rate risk / Foreign exchange risk | 50.1 | 50.0 | 66.8 | 27.1 | |||||||||||||
Equity risk / Other risk | 157.7 | 244.9 | 332.9 | 157.7 |
At March 31, 2010 | At March 31, 2009 | |||||||||||||||
Other | Other | |||||||||||||||
comprehensive | comprehensive | |||||||||||||||
Profit and loss | income | Profit and loss | income | |||||||||||||
(Millions of yen) | ||||||||||||||||
Parameter increase 10% | 10,227 | 11,950 | 3,031 | 11,542 | ||||||||||||
Parameter decrease 10% | (10,729 | ) | (11,332 | ) | (3,681 | ) | (9,751 | ) |
4.3.3. | Concentration of risks of financial assets with market risk exposure |
(a) | Equity price risk |
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Financial assets | ||||||||||||||||||||
designated at fair value | ||||||||||||||||||||
through | ||||||||||||||||||||
profit or loss | Investment securities | |||||||||||||||||||
Listed | Unlisted | Listed | Unlisted | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||
Manufacturing | – | – | 312,411 | 13,315 | 325,726 | |||||||||||||||
Transportation | – | – | 65,913 | 13,781 | 79,694 | |||||||||||||||
Real estate | – | – | 55,064 | 7,913 | 62,977 | |||||||||||||||
Service | – | – | 13,643 | 7,108 | 20,751 | |||||||||||||||
Wholesale and retail | – | – | 63,521 | 3,396 | 66,917 | |||||||||||||||
Financial institution | – | – | 17,716 | 69,055 | 86,771 | |||||||||||||||
Other industries | 7,501 | 70,733 | 47,429 | 57,864 | 183,527 | |||||||||||||||
Overseas | – | 14,375 | – | 2,344 | 16,719 | |||||||||||||||
Total | 7,501 | 85,108 | 575,697 | 174,776 | 843,082 | |||||||||||||||
At March 31, 2009 | ||||||||||||||||||||
Manufacturing | 583 | – | 253,921 | 7,453 | 261,957 | |||||||||||||||
Transportation | 102 | – | 62,140 | 4,465 | 66,707 | |||||||||||||||
Real estate | 53 | – | 38,960 | 4,573 | 43,586 | |||||||||||||||
Service | 199 | – | 13,006 | 6,264 | 19,469 | |||||||||||||||
Wholesale and retail | 160 | – | 40,409 | 2,938 | 43,507 | |||||||||||||||
Financial institution | 443 | – | 15,826 | 51,868 | 68,137 | |||||||||||||||
Other industries | 6,328 | 41,195 | 45,057 | 70,309 | 162,889 | |||||||||||||||
Overseas | – | 16,237 | 279 | 2,601 | 19,117 | |||||||||||||||
Total | 7,868 | 57,432 | 469,598 | 150,471 | 685,369 | |||||||||||||||
(b) | Foreign exchange risk |
Less- | ||||||||||||||||||||
Impairment | ||||||||||||||||||||
Japanese yen | US dollars | Other | allowance | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and deposits with banks | 265,556 | 28 | 2,866 | – | 268,450 | |||||||||||||||
Call loans | 4,116 | 6,759 | – | – | 10,875 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | – | – | – | 1,521 |
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Table of Contents
Less- | ||||||||||||||||||||
Impairment | ||||||||||||||||||||
Japanese yen | US dollars | Other | allowance | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
Financial assets held for trading other than derivatives | 12,007 | – | – | – | 12,007 | |||||||||||||||
Derivative financial assets | 65,180 | 100,475 | 37,751 | – | 203,406 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 112,408 | 12,000 | – | – | 124,408 | |||||||||||||||
Investment securities – equity securities | 749,281 | 1,029 | 163 | – | 750,473 | |||||||||||||||
Investment securities – debt securities | 1,652,945 | 82,916 | 17,361 | – | 1,753,222 | |||||||||||||||
Investment securities sub total | 2,402,226 | 83,945 | 17,524 | – | 2,503,695 | |||||||||||||||
Loans and advances | 9,616,023 | 147,358 | 7,755 | 60,290 | 9,710,846 | |||||||||||||||
Assets pledged as collateral | 935,455 | 689,841 | 96,057 | – | 1,721,353 | |||||||||||||||
Other assets | 252,812 | 1,623 | 1,212 | 1,547 | 254,100 | |||||||||||||||
Total assets | 13,667,304 | 1,042,029 | 163,165 | 61,837 | 14,810,661 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits | 9,055,643 | 7,592 | 1,487 | – | 9,064,722 | |||||||||||||||
Call money | 199,000 | 107,161 | – | – | 306,161 | |||||||||||||||
Cash collateral on securities lent and repurchase agreements | 916,800 | 689,841 | 96,057 | – | 1,702,698 | |||||||||||||||
Derivative financial liabilities | 56,381 | 99,159 | 36,423 | – | 191,963 | |||||||||||||||
Financial liabilities designated at fair value through profit or loss | 2,080 | – | – | – | 2,080 | |||||||||||||||
Due to trust accounts | 21,356 | – | – | – | 21,356 | |||||||||||||||
Due to investors of trust accounts | 1,568,220 | – | – | – | 1,568,220 | |||||||||||||||
Debt securities issued | 161,339 | 72,630 | – | – | 233,969 | |||||||||||||||
Borrowings | 1,228,505 | – | – | – | 1,228,505 | |||||||||||||||
Other liabilities | 103,008 | – | – | – | 103,008 | |||||||||||||||
Total liabilities | 13,312,332 | 976,383 | 133,967 | – | 14,422,682 | |||||||||||||||
Off-balance items | ||||||||||||||||||||
Financial guarantees | 16,930 | 1,323 | 28 | – | 18,281 | |||||||||||||||
Loan commitments and other credit related obligations – individual | 119,982 | – | – | – | 119,982 | |||||||||||||||
Loan commitments and other credit related obligations – corporate | 731,725 | 930 | – | – | 732,655 | |||||||||||||||
Commitments to invest in partnerships | 15,061 | 5,660 | 428 | – | 21,149 | |||||||||||||||
Total of off-balance items | 883,698 | 7,913 | 456 | – | 892,067 | |||||||||||||||
At March 31, 2009 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and deposits with banks | 237,003 | 24 | 2,844 | – | 239,871 | |||||||||||||||
Call loans | 11,867 | 11,898 | – | – | 23,765 | |||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 8,812 | – | – | – | 8,812 |
F-72
Table of Contents
Less- | ||||||||||||||||||||
Impairment | ||||||||||||||||||||
Japanese yen | US dollars | Other | allowance | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
Financial assets held for trading other than derivatives | 26,243 | – | – | – | 26,243 | |||||||||||||||
Derivative financial assets | 221,804 | 10,574 | – | – | 232,378 | |||||||||||||||
Financial assets designated at fair value through profit or loss | 116,659 | 13,083 | – | – | 129,742 | |||||||||||||||
Investment securities – equity securities | 618,192 | 1,350 | 527 | – | 620,069 | |||||||||||||||
Investment securities – debt securities | 2,528,369 | 171,136 | – | – | 2,699,505 | |||||||||||||||
Investment securities subtotal | 3,146,561 | 172,486 | 527 | – | 3,319,574 | |||||||||||||||
Loans and advances | 9,739,500 | 151,860 | 3,239 | 63,511 | 9,831,088 | |||||||||||||||
Assets pledged as collateral | 737,781 | 456,222 | 96,513 | – | 1,290,516 | |||||||||||||||
Other assets | 180,177 | 2,538 | 1,575 | 1,780 | 182,510 | |||||||||||||||
Total assets | 14,426,407 | 818,685 | 104,698 | 65,291 | 15,284,499 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits | 9,413,679 | 6,391 | 1,276 | – | 9,421,346 | |||||||||||||||
Call money | 225,000 | 28,478 | – | – | 253,478 | |||||||||||||||
Cash collateral on securities lent and repurchase agreements | 702,914 | 456,222 | 96,512 | – | 1,255,648 | |||||||||||||||
Derivative financial liabilities | 232,572 | 370 | 7,132 | – | 240,074 | |||||||||||||||
Financial liabilities designated at fair value through profit or loss | 2,818 | – | – | – | 2,818 | |||||||||||||||
Due to trust accounts | 25,592 | – | – | – | 25,592 | |||||||||||||||
Due to investors of trust accounts | 1,891,361 | – | – | – | 1,891,361 | |||||||||||||||
Debt securities issued | 287,214 | 86,181 | – | – | 373,395 | |||||||||||||||
Borrowings | 1,704,097 | – | – | – | 1,704,097 | |||||||||||||||
Other liabilities | 195,869 | – | – | – | 195,869 | |||||||||||||||
Total liabilities | 14,681,116 | 577,642 | 104,920 | – | 15,363,678 | |||||||||||||||
Off–balance items | ||||||||||||||||||||
Financial guarantees | 19,706 | 4,151 | – | – | 23,857 | |||||||||||||||
Loan commitments and other credit related obligations–individual | 123,568 | – | – | – | 123,568 | |||||||||||||||
Loan commitments and other credit related obligations–corporate | 655,949 | 2,974 | – | – | 658,923 | |||||||||||||||
Commitments to invest in partnerships | 21,869 | 4,499 | 515 | – | 26,883 | |||||||||||||||
Total of off-balance items | 821,092 | 11,624 | 515 | – | 833,231 | |||||||||||||||
4.4. | Liquidity risk |
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4.4.1. | Liquidity analysis for financial liabilities and assets held for managing liquidity risk |
Contractual cash flows (Undiscounted) | ||||||||||||||||||||||||||||||||
Carrying | Up to 1 | Over 5 | ||||||||||||||||||||||||||||||
amount | On demand | month | 1–3 months | 3–12 months | 1–5 years | years | Total | |||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and deposit with banks | 268,450 | 268,450 | – | – | – | – | – | 268,450 | ||||||||||||||||||||||||
Call loans | 10,875 | – | 10,875 | – | – | – | – | 10,875 | ||||||||||||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 1,521 | – | 1,521 | – | – | – | – | 1,521 | ||||||||||||||||||||||||
Financial assets held for trading other than derivatives | 12,007 | – | 9,971 | 1,983 | 1 | 3 | 52 | 12,010 | ||||||||||||||||||||||||
Derivative financial assets | 203,406 | – | 30,067 | 24,454 | 55,959 | 163,198 | 52,706 | 326,384 | ||||||||||||||||||||||||
Net settlement | – | 4,238 | 18,320 | 54,047 | 162,977 | 52,686 | 292,268 | |||||||||||||||||||||||||
Gross settlement (inflow) | – | 807,222 | 264,173 | 57,404 | 3,153 | 356 | 1,132,308 | |||||||||||||||||||||||||
Gross settlement (outflow) | – | (781,393 | ) | (258,039 | ) | (55,492 | ) | (2,932 | ) | (336 | ) | (1,098,192 | ) | |||||||||||||||||||
Financial assets designated at fair value through profit or loss | 124,408 | 34,162 | 25 | – | 75 | 2,222 | 88,204 | 124,688 | ||||||||||||||||||||||||
Investment securities – equity securities | 750,473 | – | – | – | – | – | 750,473 | 750,473 |
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Contractual cash flows (Undiscounted) | ||||||||||||||||||||||||||||||||
Carrying | Up to 1 | Over 5 | ||||||||||||||||||||||||||||||
amount | On demand | month | 1–3 months | 3–12 months | 1–5 years | years | Total | |||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||
Investment securities – debt securities | 1,753,222 | – | 2,792 | 32,042 | 549,542 | 599,448 | 655,231 | 1,839,055 | ||||||||||||||||||||||||
Investment securities subtotal | 2,503,695 | – | 2,792 | 32,042 | 549,542 | 599,448 | 1,405,704 | 2,589,528 | ||||||||||||||||||||||||
Loans and advances(1) | 9,710,846 | 128,622 | 1,272,214 | 622,637 | 1,293,093 | 3,161,118 | 3,992,522 | 10,470,206 | ||||||||||||||||||||||||
Assets pledged as collateral | 1,721,353 | – | 18,303 | 48,115 | 105,237 | 1,242,048 | 614,341 | 2,028,044 | ||||||||||||||||||||||||
Other assets | 254,100 | 4,771 | 127,715 | – | 28,134 | 93,480 | – | 254,100 | ||||||||||||||||||||||||
Total assets used to manage liquidity risk | 14,810,661 | 436,005 | 1,473,483 | 729,231 | 2,032,041 | 5,261,517 | 6,153,529 | 16,085,806 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Deposits | 9,064,722 | 1,680,898 | 330,588 | 659,676 | 2,629,675 | 3,784,570 | 70,630 | 9,156,037 | ||||||||||||||||||||||||
Call money | 306,161 | – | 297,231 | 8,930 | – | – | – | 306,161 | ||||||||||||||||||||||||
Cash collateral on securities lent and repurchase agreements | 1,702,698 | – | 1,702,698 | – | – | – | – | 1,702,698 | ||||||||||||||||||||||||
Derivative financial liabilities | 191,963 | – | 30,297 | 24,261 | 51,280 | 146,365 | 48,576 | 300,779 | ||||||||||||||||||||||||
Net settlement | – | 3,769 | 18,353 | 49,427 | 145,086 | 48,575 | 265,210 | |||||||||||||||||||||||||
Gross settlement (inflow) | – | (871,342 | ) | (262,929 | ) | (46,526 | ) | (45,478 | ) | (37 | ) | (1,226,312 | ) | |||||||||||||||||||
Gross settlement (outflow) | – | 897,870 | 268,837 | 48,379 | 46,757 | 38 | 1,261,881 | |||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss | 2,080 | 2,080 | – | – | – | – | – | 2,080 | ||||||||||||||||||||||||
Due to trust accounts | 21,356 | 21,356 | – | – | – | – | – | 21,356 | ||||||||||||||||||||||||
Due to investors of trust accounts | 1,568,220 | 1,217,618 | 6,223 | 16,468 | 56,253 | 214,778 | 79,067 | 1,590,407 | ||||||||||||||||||||||||
Debt securities issued | 233,969 | – | 640 | 1,281 | 5,764 | 164,087 | 143,674 | 315,446 | ||||||||||||||||||||||||
Borrowings | 1,228,505 | – | 94,463 | 188,663 | 848,260 | 94,720 | 5,880 | 1,231,986 | ||||||||||||||||||||||||
Other liabilities | 103,008 | 3,605 | 91,632 | 4,759 | 1,140 | 1,960 | – | 103,096 | ||||||||||||||||||||||||
Total liabilities | 14,422,682 | 2,925,557 | 2,553,772 | 904,038 | 3,592,372 | 4,406,480 | 347,827 | 14,730,046 | ||||||||||||||||||||||||
At March 31, 2009 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and deposit with banks | 239,871 | 238,135 | – | – | 1,736 | – | – | 239,871 | ||||||||||||||||||||||||
Call loans | 23,765 | – | 23,765 | – | – | – | – | 23,765 | ||||||||||||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | 8,812 | – | 8,812 | – | – | – | – | 8,812 | ||||||||||||||||||||||||
Financial assets held for trading other than derivatives | 26,243 | – | 26,200 | 3 | 2 | 82 | 30 | 26,317 | ||||||||||||||||||||||||
Derivative financial assets | 232,378 | – | 26,739 | 21,716 | 47,040 | 120,838 | 60,198 | 276,531 | ||||||||||||||||||||||||
Net settlement | – | 2,797 | 16,947 | 44,293 | 119,674 | 60,058 | 243,769 | |||||||||||||||||||||||||
Gross settlement (inflow) | – | 1,006,496 | 362,771 | 52,553 | 10,031 | 1,161 | 1,433,012 | |||||||||||||||||||||||||
Gross settlement (outflow) | – | (982,554 | ) | (358,002 | ) | (49,806 | ) | (8,867 | ) | (1,021 | ) | (1,400,250 | ) | |||||||||||||||||||
Financial assets designated at fair value through profit or loss | 129,742 | 35,025 | 33 | 199 | 1,840 | 43,786 | 55,299 | 136,182 |
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Contractual cash flows (Undiscounted) | ||||||||||||||||||||||||||||||||
Carrying | Up to 1 | Over 5 | ||||||||||||||||||||||||||||||
amount | On demand | month | 1–3 months | 3–12 months | 1–5 years | years | Total | |||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||
Investment securities — equity securities | 620,069 | – | – | – | – | – | 620,069 | 620,069 | ||||||||||||||||||||||||
Investment securities — debt securities | 2,699,505 | – | 16,360 | 241,270 | 171,172 | 2,629,997 | 1,439 | 3,060,238 | ||||||||||||||||||||||||
Investment securities subtotal | 3,319,574 | – | 16,360 | 241,270 | 171,172 | 2,629,997 | 621,508 | 3,680,307 | ||||||||||||||||||||||||
Loans and advances(1) | 9,831,088 | 151,758 | 1,250,650 | 648,866 | 1,231,290 | 3,445,003 | 3,941,743 | 10,669,310 | ||||||||||||||||||||||||
Assets pledged as collateral | 1,290,516 | – | 340 | 1,101 | 94,584 | 802,336 | 721,202 | 1,619,563 | ||||||||||||||||||||||||
Other assets | 182,510 | 5,594 | 50,350 | – | 40,180 | 86,386 | – | 182,510 | ||||||||||||||||||||||||
Total assets used to manage liquidity risk | 15,284,499 | 430,512 | 1,403,249 | 913,155 | 1,587,844 | 7,128,428 | 5,399,980 | 16,863,168 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Deposits | 9,421,346 | 1,877,292 | 729,818 | 892,949 | 2,404,125 | 3,601,181 | 4,360 | 9,509,725 | ||||||||||||||||||||||||
Call money | 253,478 | – | 243,478 | 10,000 | – | – | – | 253,478 | ||||||||||||||||||||||||
Cash collateral on securities lent and repurchase agreements | 1,255,648 | – | 1,255,648 | – | – | – | – | 1,255,648 | ||||||||||||||||||||||||
Derivative financial liabilities | 240,074 | – | 35,342 | 21,999 | 43,206 | 113,934 | 55,538 | 270,019 | ||||||||||||||||||||||||
Net settlement | – | 3,405 | 17,032 | 40,562 | 112,151 | 55,538 | 228,688 | |||||||||||||||||||||||||
Gross settlement (inflow) | – | (1,064,569 | ) | (363,013 | ) | (56,497 | ) | (54,095 | ) | – | (1,538,174 | ) | ||||||||||||||||||||
Gross settlement (outflow) | – | 1,096,506 | 367,980 | 59,141 | 55,878 | – | 1,579,505 | |||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss | 2,818 | 2,818 | – | – | – | – | – | 2,818 | ||||||||||||||||||||||||
Due to trust accounts | 25,592 | 25,592 | – | – | – | – | – | 25,592 | ||||||||||||||||||||||||
Due to investors of trust accounts | 1,891,361 | 1,453,194 | 8,437 | 21,822 | 64,339 | 258,559 | 114,230 | 1,920,581 | ||||||||||||||||||||||||
Debt securities issued | 373,395 | – | 518 | 1,036 | 291,414 | 24,874 | 231,983 | 549,825 | ||||||||||||||||||||||||
Borrowings | 1,704,097 | – | 133,823 | 267,306 | 1,201,481 | 13,898 | 94,253 | 1,710,761 | ||||||||||||||||||||||||
Other liabilities | 195,869 | 3,870 | 184,039 | 4,555 | 1,129 | 2,404 | – | 195,997 | ||||||||||||||||||||||||
Total liabilities | 15,363,678 | 3,362,766 | 2,591,103 | 1,219,667 | 4,005,694 | 4,014,850 | 500,364 | 15,694,444 | ||||||||||||||||||||||||
(1) | On demand loans and advances above represent outstanding loans and advances that are past due and overdraft. |
4.4.2. | Off-balance items |
(a) | Financial guarantees |
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(b) | Loan commitments |
(c) | Commitments to invest in partnership |
Up to 1 | 3–12 | 1–5 | Over 5 | |||||||||||||||||||||||||
On demand | month | 1–3 months | months | years | years | Total | ||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||||||||||
Off–balance items | ||||||||||||||||||||||||||||
Financial guarantees | 18,281 | – | – | – | – | – | 18,281 | |||||||||||||||||||||
Loan commitments and other credit related obligations — individual | 119,982 | – | – | – | – | – | 119,982 | |||||||||||||||||||||
Loan commitments and other credit related obligations — corporate | 732,655 | – | – | – | – | – | 732,655 | |||||||||||||||||||||
Commitments to invest in partnerships | 21,149 | – | – | – | – | – | 21,149 | |||||||||||||||||||||
Total | 892,067 | – | – | – | – | – | 892,067 | |||||||||||||||||||||
At March 31, 2009 | ||||||||||||||||||||||||||||
Off–balance items | ||||||||||||||||||||||||||||
Financial guarantees | 23,857 | – | – | – | – | – | 23,857 | |||||||||||||||||||||
Loan commitments and other credit related obligations — individual | 123,568 | – | – | – | – | – | 123,568 | |||||||||||||||||||||
Loan commitments and other credit related obligations — corporate | 658,923 | – | – | – | – | – | 658,923 | |||||||||||||||||||||
Commitments to invest in partnerships | 26,883 | – | – | – | – | – | 26,883 | |||||||||||||||||||||
Total | 833,231 | – | – | – | – | – | 833,231 | |||||||||||||||||||||
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4.5. | Capital management |
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At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | |||||||
(Millions of yen, except percentages) | |||||||||
Tier I capital | |||||||||
Capital stock | 261,608 | 261,608 | 261,608 | ||||||
Non-cumulative perpetual preferred stock | – | 100,175 | 181,625 | ||||||
Capital surplus | – | – | 127,347 | ||||||
Retained earnings | 377,592 | 338,524 | 441,585 | ||||||
Treasury shares (–) | 270 | 262 | 261 | ||||||
Projected amount of distribution (–) | 13,264 | 7,765 | 10,926 | ||||||
Foreign currency translation adjustment | (1,738) | (2,045) | (66) | ||||||
Minority interest of consolidated subsidiaries | 187,805 | 187,763 | 146,480 | ||||||
Non-dilutive preferred securities issued by overseas SPCs | 183,500 | 183,500 | 142,500 | ||||||
Goodwill equivalent amount (–) | 35,304 | 37,755 | 39,572 | ||||||
Amount equivalent to capital increase due to securitization transactions (–) | 20,401 | 26,681 | 34,763 | ||||||
Amount equivalent to 50% of exceeding the expected loss amount exceeding the qualifying reserve (–) | 13,602 | 14,370 | 13,374 | ||||||
Total Tier I capital before deduction of deferred tax assets (total amount of above respective items) | 742,425 | 699,016 | 878,057 | ||||||
Amount of deferred tax assets deducted | – | 52,412 | – | ||||||
Total Tier I capital (A) | 742,425 | 646,603 | 878,057 | ||||||
Non-dilutive preferred securities with interest ratestep-up provisions*2 (B) | 85,000 | 85,000 | 75,000 | ||||||
Tier II capital | |||||||||
General reserve for possible loan losses *3 | 0 | 0 | 0 | ||||||
Amount of qualifying reserve exceeding the expected loss amount *4 | – | – | – | ||||||
Liability type fundraising means | 319,250 | 267,070 | 263,761 | ||||||
Perpetual subordinated bonds *5 | 116,750 | 119,570 | 121,261 | ||||||
Fixed-term subordinated bonds and fixed-term preferred shares *6 | 202,500 | 147,500 | 142,500 | ||||||
Amount not includable Tier II capital | – | – | – | ||||||
Total Tier II capital (C) | 319,251 | 267,070 | 263,762 | ||||||
Items for deduction *7 (D) | 23,041 | 21,841 | 19,470 | ||||||
Capital Amount (E) = (A) + (C) − (D) | 1,038,635 | 891,832 | 1,122,349 | ||||||
Risk weighted assets, etc. | |||||||||
Credit risk-weighted asset amount | 7,022,674 | 6,855,889 | 7,528,769 | ||||||
On-balance sheet items | 6,371,285 | 6,087,070 | 6,408,511 | ||||||
Off-balance sheet items | 651,389 | 768,818 | 1,120,257 | ||||||
Amount arrived at by dividing operational risk equivalents by 8% | 503,395 | 541,112 | 580,232 | ||||||
Total (F) | 7,526,070 | 7,397,001 | 8,109,001 | ||||||
Consolidated Capital Adequacy Ratio |
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At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | |||||||
(Millions of yen, except percentages) | |||||||||
(Domestic Standard) = (E)/(F) x 100 | 13.80% | 12.05% | 13.84% | ||||||
(A)/(F) x 100 | 9.86% | 8.74% | 10.82% | ||||||
(B)/(A) x 100 | 11.44% | 13.14% | 8.54% |
*1. | Composition of capital and the capital adequacy ratio, etc., are calculated in accordance with Financial Services Agency Ordinance No. 20 of 2006 (the “Consolidated Capital Adequacy Ratio Ordinance”) and No. 79 of 2008. The table above is prepared based on information prepared in accordance with Japanese GAAP. To be consistent with Japanese GAAP, the numbers are rounded down or truncated. Japanese yen figures less than one million yen are rounded down to the nearest million yen. | |
*2. | Represents items those as provided in Article 17, Paragraph 2 of Consolidated Capital Adequacy Ratio Ordinance, in other words, stock, etc., that have the probability of redemption including those adding astep-up interest rate and other special provisions (including non-dilutive preferred securities issued by overseas SPCs). | |
*3. | Represents amount of portion to which standardized approach is adopted. | |
*4. | For trust accounts with principal guarantee, amount of which qualifying reserve exceeding the expected loss amount is not included. | |
*5. | Meaning liability fundraising as indicated in Article 18, Paragraph 1, Item 3 of the Consolidated Capital Adequacy Ratio Ordinance, and which have all the characteristics as indicated below: | |
(1) Unsecured, subordinated to other liabilities, and already paid, | ||
(2) Not to be redeemed, except for in certain cases, | ||
(3) Should supplement loss while business is ongoing, | ||
(4) That for which interest payment obligation postponement is allowed. | ||
*6. | These are those indicated in Article 18, Paragraph 1, Items 4 and 5 of the Consolidated Capital Adequacy Ratio Ordinance. However, for fixed-term subordinated bonds, there is a limitation on those with redemption periods exceeding 5 years. | |
*7. | Amount equivalent to intentional holding of fundraising means of other financial institutions as indicated in Article 20, Paragraph 1, Item 1 of the Consolidated Capital Adequacy Ratio Ordinance, amount equivalent to investment in those set in Item 2 of the relevant paragraph, the amount that is to be deducted pursuant to the provisions of Items 3 to 6 thereof and those indicated in Item 2 above. |
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5. | Critical accounting estimates and judgments |
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F-82
Table of Contents
6. | Segment reporting |
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F-84
Table of Contents
For the year ended March 31, 2010 | ||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||
Chuo Mitsui | management | |||||||||||||||||||||||
Chuo Mitsui | Asset | subsidiaries | Other | Eliminations* | Total | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||
External customers | 297,999 | 41,193 | 10,353 | 15,971 | – | 365,516 | ||||||||||||||||||
Inter-segment | 8,262 | 2,895 | (44 | ) | 30,396 | (41,509 | ) | – | ||||||||||||||||
Total | 306,261 | 44,088 | 10,309 | 46,367 | (41,509 | ) | 365,516 | |||||||||||||||||
Profit/(loss) before tax | 74,647 | 13,094 | 407 | 10,569 | (13,918 | ) | 84,799 | |||||||||||||||||
Total assets | 14,481,460 | 140,314 | 5,320 | 1,009,839 | (658,967 | ) | 14,977,966 | |||||||||||||||||
Total liabilities | 13,749,430 | 97,567 | 1,482 | 61,218 | 221,713 | 14,131,410 | ||||||||||||||||||
Other material items | ||||||||||||||||||||||||
Depreciation | 9,003 | 1,273 | 81 | 1,097 | (318 | ) | 11,136 | |||||||||||||||||
Interest and dividends income | 180,445 | 199 | 6 | 12,504 | (11,562 | ) | 181,592 | |||||||||||||||||
Interest expenses | 68,882 | 151 | – | 192 | (324 | ) | 68,901 | |||||||||||||||||
Extraordinary profit, not included in ordinary profit under Japanese GAAP | 3,444 | – | – | 821 | (1,686 | ) | 2,579 | |||||||||||||||||
Extraordinary loss, not included in ordinary profit under Japanese GAAP | 731 | 52 | 11 | 878 | (476 | ) | 1,196 |
For the year ended March 31, 2009 | ||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||
Chuo Mitsui | management | |||||||||||||||||||||||
Chuo Mitsui | Asset | subsidiaries | Other | Eliminations* | Total | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||
External customers | 335,745 | 44,174 | 12,552 | 20,573 | – | 413,044 | ||||||||||||||||||
Inter-segment | 7,698 | 3,468 | 1 | 44,446 | (55,613 | ) | – | |||||||||||||||||
Total | 343,443 | 47,642 | 12,553 | 65,019 | (55,613 | ) | 413,044 | |||||||||||||||||
Profit/(loss) before tax | (123,482 | ) | 17,467 | 1,301 | 4,723 | (9,688 | ) | (109,679 | ) | |||||||||||||||
Total assets | 14,502,540 | 145,976 | 5,102 | 1,005,388 | (572,560 | ) | 15,086,446 | |||||||||||||||||
Total liabilities | 13,930,717 | 101,109 | 1,391 | 59,227 | 305,546 | 14,397,990 | ||||||||||||||||||
Other material items: | ||||||||||||||||||||||||
Depreciation | 10,606 | 1,448 | 91 | 1,573 | (351 | ) | 13,367 | |||||||||||||||||
Interest and dividends income | 209,849 | 483 | 11 | 18,286 | (16,945 | ) | 211,684 | |||||||||||||||||
Interest expenses | 96,582 | 517 | 8 | 589 | (850 | ) | 96,846 | |||||||||||||||||
Extraordinary profit, not included in ordinary profit under Japanese GAAP | 8,961 | – | – | 685 | (466 | ) | 9,180 | |||||||||||||||||
Extraordinary loss, not included in ordinary profit under Japanese GAAP | 1,157 | 5 | – | 786 | – | 1,948 |
* | “Eliminations” includes inter-company transactions among segments. Segment liabilities include contingent liabilities of ¥335,960 million in 2010 and ¥418,265 million in 2009 for acceptances and financial guarantees provided. Segment assets include contingent assets for customer’s liabilities for acceptances and financial guarantee held in the same amounts for indemnification of such financial guarantees. |
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(i) | Profit or loss before tax |
For the year ended March 31 | ||||||||
Notes(1) | 2010 | 2009 | ||||||
(Millions of yen) | ||||||||
Profit/(loss) before tax for reportable segments | 98,717 | (99,991) | ||||||
Elimination: | ||||||||
Inter-segment trades | (13,918) | (9,688) | ||||||
Adjustments | ||||||||
Scope of consolidation | (a) | 8,444 | 45,445 | |||||
Allowance for impaired loans and advances | (b) | (3,913) | (26,092) | |||||
Fee income and commissions | (b) | 1,388 | 1,189 | |||||
Derecognition of financial asset | (c) | – | 1,223 | |||||
Impairment of investment securities | (c) | (6,221) | (8,659) | |||||
Embedded derivatives | (c) | 17,379 | (13,914) | |||||
Derecognition of financial liabilities | (c) | 2,357 | 1,174 | |||||
Property and equipment | (d) | (50) | (85) | |||||
Retirement benefit obligations | 18,982 | 15,579 | ||||||
Reclassification of equity to liability | (1,029) | (2,075) | ||||||
Other, net | 3,414 | 1,988 | ||||||
Total consolidated operating profit(loss) before tax | 125,550 | (93,906) | ||||||
(1) | See corresponding notes in “3.2 Primary difference in accounting principles between Japanese GAAP and IFRS”. |
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(ii) | Total assets |
At March 31, | ||||||||||
Notes(1) | 2010 | 2009 | ||||||||
(Millions of yen) | ||||||||||
Total assets for reportable segments | 15,636,933 | 15,659,006 | ||||||||
Elimination: | ||||||||||
Inter-segment trades | (658,967 | ) | (572,560 | ) | ||||||
Adjustments: | ||||||||||
Scope of consolidation | (a) | 588,444 | 1,023,691 | |||||||
Allowance for impaired loans and advances | (b) | (5,310 | ) | (612 | ) | |||||
Fee income and commissions | (b) | (32,599 | ) | (30,454 | ) | |||||
Fair value of quoted equity investments | (c) | 22,828 | 14,095 | |||||||
Unquoted equity securities classified asavailable-for-sale | (c) | 40,827 | 15,767 | |||||||
Embedded derivatives | (c) | (21,402 | ) | (12,188 | ) | |||||
Derecognition of financial liabilities | (c) | (29,745 | ) | (33,111 | ) | |||||
Property and equipment | (d) | 8,678 | 8,728 | |||||||
Retirement benefit obligations | (e) | (48,604 | ) | (67,328 | ) | |||||
Recoverability of deferred income tax assets | (g) | 17,332 | 24,602 | |||||||
Guarantee contracts | (i) | (384,117 | ) | (475,536 | ) | |||||
Presentation of derivative financial assets and liabilities under ISDA master netting agreements | (l) | 148,399 | 176,224 | |||||||
Recognition of regular way purchase or sale of securities | (m) | – | 88,099 | |||||||
Other, net | 35,882 | 46,568 | ||||||||
Total consolidated assets | 15,318,579 | 15,864,991 | ||||||||
(1) | See corresponding notes in “3.2 Primary difference in accounting principles between Japanese GAAP and IFRS”. |
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(iii) | Total liabilities |
At March 31, | ||||||||||
Notes(1) | 2010 | 2009 | ||||||||
(Millions of yen) | ||||||||||
Total liabilities for reportable segments | 13,909,697 | 14,092,444 | ||||||||
Elimination: | ||||||||||
Inter-segment trades | 221,713 | 305,546 | ||||||||
Adjustments: | ||||||||||
Scope of consolidation | (a) | 604,335 | 1,039,685 | |||||||
Allowance for impaired loans and advances | (b) | 4,015 | – | |||||||
Fee income and commissions | (b) | (29,521 | ) | (27,093 | ) | |||||
Embedded derivatives | (c) | (12,333 | ) | (3,517 | ) | |||||
Derecognition of financial liabilities | (c) | (7,212 | ) | (8,220 | ) | |||||
Retirement benefit obligations | (e) | 1,409 | 1,667 | |||||||
Reclassification of equity to liability | (f) | – | 199,321 | |||||||
Guarantee contracts | (i) | (384,117 | ) | (475,536 | ) | |||||
Presentation of derivative financial assets and liabilities under ISDA master netting agreements | (l) | 148,399 | 176,224 | |||||||
Recognition of regular way purchase or sale of securities | (m) | – | 88,099 | |||||||
Other, net | 18,946 | 19,824 | ||||||||
Total consolidated liabilities | 14,475,331 | 15,408,444 | ||||||||
(1) | See corresponding notes in “3.2 Primary difference in accounting principles between Japanese GAAP and IFRS”. |
For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Corporate finance(1) | 72,024 | 85,599 | ||||||
Retail banking(2) | 63,048 | 63,017 | ||||||
Market(3) | 55,964 | 65,550 | ||||||
Pension and securities trust(4) | 50,333 | 54,787 | ||||||
Other(5) | 124,147 | 144,091 | ||||||
Total | 365,516 | 413,044 | ||||||
(1) | Corporate finance consists of lending and advisory services related to financial and management strategies and corporate governance structures provided to corporate clients. | |
(2) | Retail banking mainly provides housing loans to individuals. | |
(3) | Market conducts financial operations, such as securities investments. | |
(4) | Pension and securities trust consists of asset management and administration services for securities and pension trusts services. |
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(5) | Other mainly consists of stock transfer agency services and investment products which offer a variety of deposit products and money trusts. |
For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Revenue from domestic operations | 308,153 | 349,463 | ||||||
Revenue from foreign operations | 57,363 | 63,581 | ||||||
Total | 365,516 | 413,044 | ||||||
At March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Non-current assets allocated in Japan | 184,911 | 187,304 | ||||||
Non-current assets allocated in foreign countries | 30 | 14 | ||||||
�� | ||||||||
Total | 184,941 | 187,318 | ||||||
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7. | Cash and deposits with banks |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Cash on hand | 34,830 | 42,815 | 34,050 | |||||||||
Deposit with other banks | 34,555 | 27,939 | 75,257 | |||||||||
Balances with the Bank of Japan | 199,065 | 169,117 | 111,068 | |||||||||
Total | 268,450 | 239,871 | 220,375 | |||||||||
8. | Call loans, cash collateral on securities borrowed and reverse repurchase agreements |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Call loans | 10,875 | 23,765 | 236,344 | |||||||||
Total | 10,875 | 23,765 | 236,344 | |||||||||
Current | 10,875 | 23,765 | 236,344 |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Cash collateral on securities borrowed | 1,521 | 8,812 | 104,003 | |||||||||
Total | 1,521 | 8,812 | 104,003 | |||||||||
Current | 1,521 | 8,812 | 104,003 |
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9. | Financial assets held for trading other than derivatives |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Debt securities | ||||||||||||
- Japanese government bonds | 50 | 117 | 49 | |||||||||
- Commercial paper | 11,957 | 26,126 | 29,957 | |||||||||
Total | 12,007 | 26,243 | 30,006 | |||||||||
10. | Derivative financial assets and liabilities |
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At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | ||||||||||||||||||||||||||||||||||
Notional | Notional | Notional | ||||||||||||||||||||||||||||||||||
contract | Fair value | Fair value | Contract | Fair value | Fair value | contract | Fair value | Fair value | ||||||||||||||||||||||||||||
amount | asset | liability | amount | asset | liability | amount | asset | liability | ||||||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||
Listed interest futures | – | – | – | 2,422 | 5 | 1 | 1,196 | 22 | – | |||||||||||||||||||||||||||
OTC interest rate swaps | 10,513,648 | 168,359 | 154,654 | 11,747,605 | 198,888 | 186,069 | 12,359,824 | 127,330 | 123,958 | |||||||||||||||||||||||||||
OTC interest rate swaptions | 57,150 | – | 1,284 | 50,200 | – | 520 | 95,399 | – | 499 | |||||||||||||||||||||||||||
Others | 149,871 | 30 | 21 | 146,285 | 40 | 51 | 102,501 | 16 | 17 | |||||||||||||||||||||||||||
Foreign currency contracts | ||||||||||||||||||||||||||||||||||||
OTC currency swaps | 48,375 | 233 | 1,376 | 54,010 | 376 | 1,144 | 16,709 | 1,207 | 315 | |||||||||||||||||||||||||||
OTC foreign exchange forwards | 2,103,197 | 33,838 | 32,783 | 2,584,399 | 31,950 | 37,696 | 3,079,001 | 49,701 | 49,034 | |||||||||||||||||||||||||||
OTC currency options | – | – | – | 10,802 | 384 | 384 | 52,413 | 1,385 | 1,033 | |||||||||||||||||||||||||||
Stock contracts | ||||||||||||||||||||||||||||||||||||
Listed stock index futures | 636 | 38 | – | 651 | 27 | 7 | 31,047 | 10 | 981 | |||||||||||||||||||||||||||
Listed stock index options | 2,462 | 0 | 0 | – | – | – | 29,000 | 15 | – | |||||||||||||||||||||||||||
Bond contracts | ||||||||||||||||||||||||||||||||||||
Listed bond futures | – | – | – | – | – | – | 2,282 | 3 | – | |||||||||||||||||||||||||||
Others | 1,259,824 | 908 | 61 | 1,429,280 | 708 | 353 | 1,390,000 | 1,425 | 846 | |||||||||||||||||||||||||||
Credit contracts | ||||||||||||||||||||||||||||||||||||
OTC credit default swaps | 63,000 | – | 1,784 | 63,000 | – | 13,849 | 45,000 | – | 5,456 | |||||||||||||||||||||||||||
Total | 14,198,163 | 203,406 | 191,963 | 16,088,654 | 232,378 | 240,074 | 17,204,372 | 181,114 | 182,139 | |||||||||||||||||||||||||||
Current | 6,093,821 | 51,068 | 49,731 | 7,780,313 | 55,949 | 62,552 | 7,514,508 | 63,927 | 63,044 | |||||||||||||||||||||||||||
Non–current | 8,104,342 | 152,338 | 142,232 | 8,308,341 | 176,429 | 177,522 | 9,689,864 | 117,187 | 119,095 |
11. | Financial assets designated at fair value through profit or loss |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Equity securities | ||||||||||||
- Listed | 7,501 | 7,868 | 94,198 | |||||||||
- Unlisted | 85,108 | 57,432 | 64,381 | |||||||||
Total equity securities | 92,609 | 65,300 | 158,579 | |||||||||
Debt securities | ||||||||||||
- Corporate bonds | 31,799 | 64,442 | 64,881 | |||||||||
Total debt securities | 31,799 | 64,442 | 64,881 | |||||||||
Total | 124,408 | 129,742 | 223,460 | |||||||||
Non-current portion of debt securities | 31,799 | 64,442 | 64,881 |
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12. | Investment securities |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Equity securities | ||||||||||||
Available-for-sale | 750,473 | 620,069 | 939,955 | |||||||||
Embedded derivatives | — | — | 131 | |||||||||
Total equity securities | 750,473 | 620,069 | 940,086 | |||||||||
Debt securities | ||||||||||||
Available-for-sale | 1,034,386 | 1,766,829 | 882,607 | |||||||||
Embedded derivatives | (7,969 | ) | (18,427 | ) | (6,364 | ) | ||||||
Held-to-maturity | 394,015 | 596,829 | 336,957 | |||||||||
Loans and receivables | 332,790 | 354,274 | 240,084 | |||||||||
Total debt securities | 1,753,222 | 2,699,505 | 1,453,284 | |||||||||
Total | 2,503,695 | 3,319,574 | 2,393,370 | |||||||||
Current portion of debt securities | 498,914 | 293,448 | 137,509 | |||||||||
Non-current portion of debt securities | 1,254,308 | 2,406,057 | 1,315,775 |
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At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Equity securities | ||||||||||||
- Listed | 575,697 | 469,598 | 723,184 | |||||||||
- Unlisted | 174,776 | 150,471 | 216,771 | |||||||||
Total equity securities | 750,473 | 620,069 | 939,955 | |||||||||
Debt securities | ||||||||||||
- Japanese government bonds | 762,890 | 1,414,033 | 727,356 | |||||||||
- Other governments and official institutions bonds | 32,285 | 141,295 | 56,714 | |||||||||
- Corporate bonds | 239,211 | 211,501 | 98,537 | |||||||||
Total debt securities | 1,034,386 | 1,766,829 | 882,607 | |||||||||
Total | 1,784,859 | 2,386,898 | 1,822,562 | |||||||||
For the year ended March 31 | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
At beginning of year | 2,386,898 | 1,822,562 | ||||||
Assets pledged as collateral – beginning of year | 1,290,516 | 1,604,415 | ||||||
Exchange differences | (21,316 | ) | (98,529 | ) | ||||
Additions | 4,585,712 | 2,416,460 | ||||||
Disposals (sales and redemptions) | (4,905,726 | ) | (1,732,977 | ) | ||||
Amortization | (29,134 | ) | (26,922 | ) | ||||
Unrealized gains and losses | 202,873 | (193,483 | ) | |||||
Impairment losses | (8,919 | ) | (114,112 | ) | ||||
Assets pledged as collateral – end of year | (1,716,045 | ) | (1,290,516 | ) | ||||
At end of year | 1,784,859 | 2,386,898 | ||||||
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Debt securities | ||||||||||||
- Japanese government bonds | 394,015 | 596,829 | 336,957 | |||||||||
Total | 394,015 | 596,829 | 336,957 | |||||||||
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For the fiscal year ended March 31 | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
At beginning of year | 596,829 | 336,957 | ||||||
Assets pledged as collateral – beginning of year | – | 257,602 | ||||||
Additions | 136 | – | ||||||
Redemptions | (199,047 | ) | – | |||||
Amortization | 1,405 | 2,270 | ||||||
Assets pledged as collateral – end of year | (5,308 | ) | – | |||||
At end of year | 394,015 | 596,829 | ||||||
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Loans and receivables | ||||||||||||
- Other governments and official institutions bonds | 3,000 | 3,000 | 3,000 | |||||||||
- Corporate bonds | 329,790 | 351,274 | 237,084 | |||||||||
Total | 332,790 | 354,274 | 240,084 | |||||||||
For the fiscal year ended March 31 | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
At beginning of year | 354,274 | 240,084 | ||||||
Exchange differences | (83 | ) | – | |||||
Additions | 9,171 | 166,403 | ||||||
Redemptions | (30,571 | ) | (49,388 | ) | ||||
Amortization | (1 | ) | (1 | ) | ||||
Impairment losses | – | (2,824 | ) | |||||
At end of year | 332,790 | 354,274 | ||||||
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13. | Loans and advances |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Individual | ||||||||||||
- Loans on notes | 771 | 871 | 955 | |||||||||
- Loans on deeds | 3,904,502 | 3,689,424 | 3,378,261 | |||||||||
- Overdrafts | 48,267 | 51,313 | 46,358 | |||||||||
Gross individual total | 3,953,540 | 3,741,608 | 3,425,574 | |||||||||
Less: impairment allowance | 14,432 | 14,744 | 16,922 | |||||||||
Loans and advances to individual | 3,939,108 | 3,726,864 | 3,408,652 | |||||||||
Corporate | ||||||||||||
- Bills discounts | 4,325 | 7,105 | 7,478 | |||||||||
- Loans on notes | 1,319,063 | 1,162,924 | 924,391 | |||||||||
- Loans on deeds | 3,550,411 | 3,795,569 | 3,867,480 | |||||||||
- Overdrafts | 668,758 | 879,503 | 777,175 | |||||||||
- Private placement bonds | 249,554 | 287,391 | 267,321 | |||||||||
- Receivables purchased | 25,485 | 20,499 | 34,938 | |||||||||
Gross corporate total | 5,817,596 | 6,152,991 | 5,878,783 | |||||||||
- Less: impairment allowance | 45,858 | 48,767 | 29,999 | |||||||||
Loans and advances to corporate | 5,771,738 | 6,104,224 | 5,848,784 | |||||||||
Total loans and advances | 9,710,846 | 9,831,088 | 9,257,436 | |||||||||
Current | 2,878,086 | 2,629,892 | 2,417,564 | |||||||||
Non-current | 6,832,760 | 7,201,196 | 6,839,872 |
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2010 | 2009 | |||||||||||||||
Individual | Collective | Individual | Collective | |||||||||||||
allowances for | allowance for | allowances for | allowance for | |||||||||||||
impairment | impairment | impairment | impairment | |||||||||||||
(Millions of yen) | ||||||||||||||||
Individual | ||||||||||||||||
Balance at beginning of year | 518 | 14,226 | 759 | 16,163 | ||||||||||||
Increase/(decrease) in provision for impairment losses | 1,098 | (61 | ) | 1,261 | (1,937 | ) | ||||||||||
Charge-offs | (2,027 | ) | – | (2,376 | ) | – | ||||||||||
Recoveries | 678 | – | 874 | – | ||||||||||||
Balance at end of year | 267 | 14,165 | 518 | 14,226 | ||||||||||||
Corporate | ||||||||||||||||
Balance at beginning of year | 25,323 | 23,444 | 12,595 | 17,404 | ||||||||||||
Increase / (decrease) in provision for impairment losses | 11,681 | (1,592 | ) | 41,022 | 6,040 | |||||||||||
Charge-offs | (15,697 | ) | – | (30,826 | ) | – | ||||||||||
Recoveries | 2,710 | – | 2,536 | – | ||||||||||||
Foreign currency translation and other adjustments | (11 | ) | – | (4 | ) | – | ||||||||||
Balance at end of year | 24,006 | 21,852 | 25,323 | 23,444 | ||||||||||||
Total impairment losses at end of year | 24,273 | 36,017 | 25,841 | 37,670 | ||||||||||||
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14. | Assets pledged as collateral |
At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Investment securities – debt securities | ||||||||||||
Available-for-sale | 1,716,218 | 1,290,677 | 1,603,583 | |||||||||
Embedded derivatives | (173 | ) | (161 | ) | 832 | |||||||
Held-to-maturity | 5,308 | – | 257,602 | |||||||||
Total | 1,721,353 | 1,290,516 | 1,862,017 | |||||||||
15. | Investment in associates and joint ventures |
For the year ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
(Yen in millions) | ||||||||
Balance at beginning of year | 22,643 | 19,857 | ||||||
Addition | – | 2,000 | ||||||
Share of profit or loss | (509 | ) | 1,138 | |||||
Dividends received | (134 | ) | (195 | ) | ||||
Other | (10 | ) | (157 | ) | ||||
Balance at end of year | 21,990 | 22,643 | ||||||
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Financial information of associates | ||||||||||||||||
Assets | Liabilities | Revenues | Profits | |||||||||||||
(Yen in millions) | ||||||||||||||||
2010 | 1,161,045 | 1,092,524 | 45,749 | 859 | ||||||||||||
2009 | 1,231,261 | 1,163,282 | 51,938 | 992 | ||||||||||||
2008 | 1,446,080 | 1,404,577 | – | – |
Financial information of joint ventures | ||||||||||||||||||||||||
Long-term | Current | Long-term | ||||||||||||||||||||||
Current assets | assets | liabilities | liabilities | Revenues | Expenses | |||||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||
2010 | 1,473 | 7,578 | 1,726 | 6,336 | 5,788 | 6,473 | ||||||||||||||||||
2009 | 1,927 | 8,563 | 2,068 | 6,732 | 2,152 | 2,574 | ||||||||||||||||||
2008 | 237 | 12 | 120 | 2 | – | – |
Country of | ||||||||||||
registration or | Voting | Ownership | ||||||||||
Company | incorporation | Industry | interest in % | interest in % | ||||||||
Japan Trustee Services Bank, Ltd. | Japan | Trust and banking | 33.33 | % | 33.33 | % |
Country of | ||||||||||||
registration or | Voting | Ownership | ||||||||||
Company | incorporation | Industry | interest in % | interest in % | ||||||||
Japan Stockholders Data Service Co., Ltd. | Japan | Stock transfer agency services | 50.00 | % | 50.00 | % |
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16. | Property and equipment |
Equipment and | Construction in | |||||||||||||||||||
Buildings | Land | others | progress | Total | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
At April 1, 2008 | ||||||||||||||||||||
Cost | 100,373 | 86,201 | 43,552 | 24 | 230,150 | |||||||||||||||
Accumulated depreciation and impairment | (48,091 | ) | (361 | ) | (33,259 | ) | – | (81,711 | ) | |||||||||||
Net book value | 52,282 | 85,840 | 10,293 | 24 | 148,439 | |||||||||||||||
For the year ended March 31, 2009 | ||||||||||||||||||||
Opening book value | 52,282 | 85,840 | 10,293 | 24 | 148,439 | |||||||||||||||
Additions | 802 | 21 | 2,376 | 544 | 3,743 | |||||||||||||||
Disposals | (278 | ) | (70 | ) | (1,930 | ) | – | (2,278 | ) | |||||||||||
Transfer | 506 | – | – | (506 | ) | – | ||||||||||||||
Impairment | (63 | ) | – | – | – | (63 | ) | |||||||||||||
Depreciation charge | (3,134 | ) | – | (2,892 | ) | – | (6,026 | ) | ||||||||||||
Closing net book value | 50,115 | 85,791 | 7,847 | 62 | 143,815 | |||||||||||||||
At March 31, 2009 | ||||||||||||||||||||
Cost | 101,060 | 86,152 | 43,012 | 62 | 230,286 | |||||||||||||||
Accumulated depreciation and impairment | (50,945 | ) | (361 | ) | (35,165 | ) | – | (86,471 | ) | |||||||||||
Net book value | 50,115 | 85,791 | 7,847 | 62 | 143,815 | |||||||||||||||
For the year ended March 31, 2010 | ||||||||||||||||||||
Opening book value | 50,115 | 85,791 | 7,847 | 62 | 143,815 | |||||||||||||||
Additions | 678 | – | 2,918 | 269 | 3,865 | |||||||||||||||
Disposals | (167 | ) | – | (422 | ) | – | (589 | ) | ||||||||||||
Transfer | 130 | – | – | (130 | ) | – | ||||||||||||||
Impairment | (5 | ) | – | (5 | ) | – | (10 | ) | ||||||||||||
Depreciation charge | (3,041 | ) | – | (2,333 | ) | – | (5,374 | ) | ||||||||||||
Closing net book value | 47,710 | 85,791 | 8,005 | 201 | 141,707 | |||||||||||||||
At March 31, 2010 | ||||||||||||||||||||
Cost | 101,370 | 86,152 | 41,104 | 201 | 228,827 | |||||||||||||||
Accumulated depreciation and impairment | (53,660 | ) | (361 | ) | (33,099 | ) | – | (87,120 | ) | |||||||||||
Net book value | 47,710 | 85,791 | 8,005 | 201 | 141,707 | |||||||||||||||
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17. | Intangible assets |
Computer | ||||||||||||||||||||
Computer | software under | Other intangible | ||||||||||||||||||
(Millions of yen) | Goodwill | software | development | assets | Total | |||||||||||||||
At April 1, 2008 | ||||||||||||||||||||
Acquisition cost | 39,634 | 44,404 | 7,041 | 2,950 | 94,029 | |||||||||||||||
Accumulated amortization and impairment | – | (18,290 | ) | – | (277 | ) | (18,567 | ) | ||||||||||||
Net book value | 39,634 | 26,114 | 7,041 | 2,673 | 75,462 | |||||||||||||||
For the fiscal year ended March 31, 2009 | ||||||||||||||||||||
Opening book value | 39,634 | 26,114 | 7,041 | 2,673 | 75,462 | |||||||||||||||
Additions | 585 | 7,813 | 5,374 | 345 | 14,117 | |||||||||||||||
Disposals | – | (9,462 | ) | (7,760 | ) | (120 | ) | (17,342 | ) | |||||||||||
Transfer | – | 2,321 | (2,321 | ) | – | – | ||||||||||||||
Amortization charges | – | (8,713 | ) | – | (13 | ) | (8,726 | ) | ||||||||||||
Closing net book value | 40,219 | 18,073 | 2,334 | 2,885 | 63,511 | |||||||||||||||
At March 31, 2009 | ||||||||||||||||||||
Acquisition cost | 40,219 | 35,343 | 2,334 | 3,179 | 81,075 | |||||||||||||||
Accumulated amortization and impairment | – | (17,270 | ) | – | (294 | ) | (17,564 | ) | ||||||||||||
Net book value | 40,219 | 18,073 | 2,334 | 2,885 | 63,511 | |||||||||||||||
For the fiscal year ended March 31, 2010 | ||||||||||||||||||||
Opening book value | 40,219 | 18,073 | 2,334 | 2,885 | 63,511 | |||||||||||||||
Additions | 3,118 | 5,386 | 4,662 | 5 | 13,171 | |||||||||||||||
Disposals | – | (875 | ) | (358 | ) | (76 | ) | (1,309 | ) | |||||||||||
Transfer | – | 1,757 | (1,757 | ) | – | – | ||||||||||||||
Amortization charges | – | (6,869 | ) | – | (9 | ) | (6,878 | ) | ||||||||||||
Impairment | – | (24 | ) | – | (7 | ) | (31 | ) | ||||||||||||
Closing net book value | 43,337 | 17,448 | 4,881 | 2,798 | 68,464 | |||||||||||||||
At March 31, 2010 | ||||||||||||||||||||
Acquisition cost | 43,337 | 37,244 | 4,881 | 3,100 | 88,562 | |||||||||||||||
Accumulated amortization and impairment | – | (19,796 | ) | – | (302 | ) | (20,098 | ) | ||||||||||||
Net book value | 43,337 | 17,448 | 4,881 | 2,798 | 68,464 | |||||||||||||||
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At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Pension and Securities Trust Service | 31,076 | 31,076 | 31,076 | |||||||||
Stock Transfer Agency Service | 8,497 | 8,497 | 8,497 | |||||||||
Other | 3,764 | 646 | 61 | |||||||||
Total | 43,337 | 40,219 | 39,634 | |||||||||
Accumulated impairment loss | – | – | – | |||||||||
Gross amount of goodwill | 43,337 | 40,219 | 39,634 | |||||||||
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18. | Other assets |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Prepaid expenses | 1,005 | 964 | 1,401 | |||||||||
Accrued income | 29,368 | 34,811 | 36,781 | |||||||||
Prepaid pension expenses (see Note 27) | 51,776 | 49,106 | 38,126 | |||||||||
Receivables for securities transactions | 127,715 | 50,350 | 30,536 | |||||||||
Financial stabilization fund contributions (see Note 13) | 80,275 | 78,860 | 77,087 | |||||||||
Contribution to Bank’s Shareholdings Purchase Corporation | 5,365 | 5,365 | 5,365 | |||||||||
Security deposit and margin deposit | 8,150 | 9,045 | 8,827 | |||||||||
Other | 38,171 | 40,617 | 43,127 | |||||||||
Less allowance for impairment of other assets | (1,547 | ) | (1,780 | ) | (1,412 | ) | ||||||
Total | 340,278 | 267,338 | 239,838 | |||||||||
Current | 189,679 | 122,494 | 108,478 | |||||||||
Non-current | 150,599 | 144,844 | 131,360 |
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19. | Deposits |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Deposits from banks | ||||||||||||
Current/settlement accounts | 924 | 1,685 | 1,568 | |||||||||
Ordinary accounts | 6,400 | 7,492 | 3,768 | |||||||||
Time deposits | 22,382 | 69,228 | 10,628 | |||||||||
Negotiable certificates of deposit | 51,400 | 267,000 | 175,000 | |||||||||
Other | 17,212 | 160 | 40,523 | |||||||||
Total deposits from banks | 98,318 | 345,565 | 231,487 | |||||||||
Deposits from customers | ||||||||||||
Corporate customers | ||||||||||||
Current/settlement accounts | 112,287 | 107,378 | 86,413 | |||||||||
Ordinary accounts | 307,727 | 326,670 | 331,894 | |||||||||
Time deposits | 1,241,292 | 1,722,023 | 1,533,857 | |||||||||
Negotiable certificates of deposit | 275,790 | 275,280 | 488,340 | |||||||||
Deposits at notice | 21,510 | 20,155 | 7,964 | |||||||||
Other | 10,329 | 11,493 | 12 | |||||||||
Retail customers | ||||||||||||
Current/settlement accounts | 302 | 363 | 394 | |||||||||
Ordinary accounts | 830,710 | 796,845 | 837,171 | |||||||||
Time deposits | 6,157,964 | 5,797,356 | 5,281,511 | |||||||||
Saving accounts | 2,993 | 3,357 | 3,947 | |||||||||
Deposits at notice | 5 | 5 | 25 | |||||||||
Other | 5,495 | 14,856 | 62 | |||||||||
Total deposits from customers | 8,966,404 | 9,075,781 | 8,571,590 | |||||||||
Total deposits | 9,064,722 | 9,421,346 | 8,803,077 | |||||||||
Current | 5,194,713 | 5,792,803 | 5,532,754 | |||||||||
Non-current | 3,870,009 | 3,628,543 | 3,270,323 |
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20. | Call money, cash collateral on securities lent and repurchase agreements |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Call money | 306,161 | 253,478 | 291,582 | |||||||||
Total | 306,161 | 253,478 | 291,582 | |||||||||
Current | 306,161 | 253,478 | 291,582 |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Cash collateral on securities lent | 1,702,698 | 1,255,648 | 1,797,121 | |||||||||
Repurchase agreements | – | – | 24,197 | |||||||||
Total | 1,702,698 | 1,255,648 | 1,821,318 | |||||||||
Current | 1,702,698 | 1,255,648 | 1,821,318 |
21. | Financial liabilities designated at fair value through profit or loss |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Equity securities | ||||||||||||
Listed | 2,080 | 2,818 | 3,530 | |||||||||
Total | 2,080 | 2,818 | 3,530 | |||||||||
Current | 2,080 | 2,818 | 3,530 |
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22. | Due to trust accounts |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Money trust accounts | 11,582 | 15,398 | 16,501 | |||||||||
Real estate in trust accounts | 1,617 | 1,685 | 1,491 | |||||||||
Composite trust accounts | 8,157 | 8,509 | 8,313 | |||||||||
Total | 21,356 | 25,592 | 26,305 | |||||||||
Current | 21,356 | 25,592 | 26,305 |
23. | Due to investors of trust accounts |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Principal-guaranteed trust accounts | 1,216,105 | 1,448,727 | 1,688,258 | |||||||||
Securitization trust accounts | 350,602 | 438,167 | 558,892 | |||||||||
Other | 1,513 | 4,467 | 5,007 | |||||||||
Total | 1,568,220 | 1,891,361 | 2,252,157 | |||||||||
Current | 1,290,688 | 1,540,759 | 1,813,990 | |||||||||
Non-current | 277,532 | 350,602 | 438,167 |
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24. | Debt securities issued |
At March 31, | At April 1, | |||||||||||||||||||
Notes | Interest rate | 2010 | 2009 | 2008 | ||||||||||||||||
(Millions of yen) | ||||||||||||||||||||
Subordinated perpetual bonds, payable in Japanese yen | 1 | 2.24% | 13,477 | 12,570 | 12,588 | |||||||||||||||
Subordinated bonds, payable in Japanese yen (due 2015) | 2.03% | 40,329 | 40,330 | 40,317 | ||||||||||||||||
Subordinated bonds with early redemption clause, payable in Japanese yen (due 2015) | 2 | 1.27% | – | 30,000 | 30,000 | |||||||||||||||
Subordinated perpetual bonds with early redemption clause, payable in Japanese yen | 3 | 2.06% | 4,995 | 4,994 | 4,992 | |||||||||||||||
Subordinated perpetual bonds with early redemption clause, payable in Japanese yen | 4 | 4.46% | 10,000 | – | – | |||||||||||||||
Subordinated bonds with early redemption clause, payable in Japanese yen (due 2017) | 5 | 2.95% | 49,739 | – | – | |||||||||||||||
Subordinated bonds with early redemption clause, payable in Japanese yen (due 2022) | 6 | 1.51% | 24,799 | – | – | |||||||||||||||
Subordinated bonds with early redemption clause, payable in Japanese yen (due 2022) | 7 | 1.25% | 18,000 | – | – | |||||||||||||||
Class II preferred shares | 8 | – | – | 149,229 | 146,966 | |||||||||||||||
Class III preferred shares | 8 | – | – | 50,091 | 208,937 | |||||||||||||||
US Dollar subordinated perpetual bonds, payable in Japanese yen | 9 | 5.50% | �� | 72,630 | 86,181 | 88,316 | ||||||||||||||
Total | 233,969 | 373,395 | 532,116 | |||||||||||||||||
Current | – | 199,320 | 158,846 | |||||||||||||||||
Non-current | 233,969 | 174,075 | 373,270 |
1. | Bonds with an early redemption clause at the issuer’s option and astep-up feature where the interest rates are increased to the variable rate indexed to 10 years CMS after twenty years from date of issue. | |
2. | Bonds with an early redemption clause at the issuer’s option and astep-up feature where the interest rates are increased to the variable rate indexed to 6 months LIBOR after five years from date of issue. |
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3. | Bonds with an early redemption clause at the issuer’s option and astep-up feature where the interest rates are increased to the variable rate indexed to 6 months LIBOR after seven years from date of issue. | |
4. | Bonds with an early redemption clause at the issuer’s option and astep-up feature where the interest rates are increased to the variable rate indexed to 6 months LIBOR after ten years from date of issue. | |
5. | Bonds with an early redemption clause at the issuer’s option after approximately three years from date of issue. | |
6. | Bonds with an early redemption clause at the issuer’s option and astep-up feature where the interest rates are increased to the variable rate indexed to 6 months LIBOR after approximately five years from date of issue. | |
7. | Bonds with an early redemption clause at the issuer’s option and astep-up feature where the interest rates are increased to the variable rate indexed to 6 months LIBOR after approximately five years from date of issue. | |
8. | Details of these preferred shares are disclosed in the Note 29. | |
9. | Bonds with astep-up feature where the interest rates are increased to the variable rate indexed to 3 months U.S. Dollar LIBOR after approximately ten years from date of issue. |
25. | Borrowings |
At March 31, | At April 1, | |||||||||||||
Maturity | 2010 | 2009 | 2008 | |||||||||||
(Millions of yen) | ||||||||||||||
Borrowings | 2010-2014 | 1,135,922 | 1,611,509 | 352,904 | ||||||||||
Subordinated borrowings | 2010-2018 | 77,583 | 77,588 | 117,567 | ||||||||||
Subordinated perpetual borrowings | 15,000 | 15,000 | 15,000 | |||||||||||
Total | 1,228,505 | 1,704,097 | 485,471 | |||||||||||
Current | 1,129,139 | 1,599,250 | 375,285 | |||||||||||
Non-current, including subordinated perpetual borrowings | 99,366 | 104,847 | 110,186 |
Average interest rate | ||||||||||||
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Percentages) | ||||||||||||
Borrowings | 0.12 | 0.25 | 0.60 | |||||||||
Subordinated borrowings | 2.43 | 2.55 | 3.20 |
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26. | Income tax |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Tax refund receivable | 3,401 | 5,394 | 42,139 | |||||||||
Adjustment for current tax of prior periods | – | 543 | – | |||||||||
Total | 3,401 | 5,937 | 42,139 | |||||||||
Current | 3,401 | 5,937 | 42,139 |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Income tax payable | 4,625 | 3,032 | 8,549 | |||||||||
Total | 4,625 | 3,032 | 8,549 | |||||||||
Current | 4,625 | 3,032 | 8,549 |
For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
At beginning of year | 256,783 | 209,327 | ||||||
Consolidated income statement charge | (13,437 | ) | (41,497 | ) | ||||
Other comprehensive income charge | (68,067 | ) | 88,953 | |||||
At end of year | 175,279 | 256,783 | ||||||
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At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Deferred income tax assets/(liabilities): | ||||||||||||
Loans and advances | 30,955 | 29,066 | 28,745 | |||||||||
Available-for-sale financial assets | (26,311 | ) | 45,123 | (17,218 | ) | |||||||
Securitization | 31,299 | 31,304 | 31,304 | |||||||||
Accrued bonuses | 1,264 | 1,212 | 1,259 | |||||||||
Pensions and other retirement benefits | 42,712 | 40,457 | 40,691 | |||||||||
Deferred assets | 2,261 | 2,211 | 2,050 | |||||||||
Property and equipment | (5,257 | ) | (5,264 | ) | (2,768 | ) | ||||||
Tax loss carryforwards | 94,705 | 103,082 | 119,784 | |||||||||
Other-net | 3,651 | 9,592 | 5,480 | |||||||||
Net deferred income tax assets | 175,279 | 256,783 | 209,327 | |||||||||
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Deductible temporary differences | 6,402 | 9,886 | 13,774 | |||||||||
Unused tax loss carryforwards | 161,569 | 238,514 | 6,332 | |||||||||
Investments in subsidiaries and associates | 16,725 | 30,417 | 5,173 | |||||||||
Total | 184,696 | 278,817 | 25,279 | |||||||||
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At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
2009 | – | – | – | |||||||||
2010 | – | 4,500 | – | |||||||||
2011 | 138,012 | 209,943 | 5,743 | |||||||||
2012 | – | 165 | 165 | |||||||||
2013 | – | – | – | |||||||||
2014 | – | 100 | – | |||||||||
2015 | 289 | 865 | 424 | |||||||||
2016 | 21,888 | 22,941 | – | |||||||||
2017 | 1,380 | – | – | |||||||||
Total | 161,569 | 238,514 | 6,332 | |||||||||
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Deferred tax to be recovered after more than 12 months | 136,621 | 230,803 | 172,634 | |||||||||
Deferred tax to be recovered within 12 months | 38,658 | 25,980 | 36,693 | |||||||||
Total net deferred income tax assets | 175,279 | 256,783 | 209,327 | |||||||||
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For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Current income taxes: | ||||||||
Current income taxes on profit or loss for the year | 48,593 | 17,446 | ||||||
Adjustments recognized in the current year in relation to the current tax of prior years | (387 | ) | (543 | ) | ||||
Benefits arising from previously unrecognized tax losses carried forward of prior years | (40,197 | ) | (7,757 | ) | ||||
Total current income taxes | 8,009 | 9,146 | ||||||
Deferred income taxes: | ||||||||
Origination and reversal of temporary differences | 5,685 | 26,984 | ||||||
Benefits arising from previously unrecognized tax losses carried forward of prior years | 39,724 | (77,642 | ) | |||||
Write-downs (reversals of previous write-downs) of deferred tax assets | (31,972 | ) | 92,155 | |||||
Total deferred income taxes | 13,437 | 41,497 | ||||||
Income tax expenses | 21,446 | 50,643 | ||||||
For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Loans and advances | 1,889 | 321 | ||||||
Available-for-sale financial assets | (3,138 | ) | (26,449 | ) | ||||
Securitization | (5 | ) | 0 | |||||
Accrued bonuses | 53 | (48 | ) | |||||
Pensions and other retirement benefits | 2,255 | (235 | ) | |||||
Deferred assets | 50 | 160 | ||||||
Property and equipment | 7 | (2,496 | ) | |||||
Tax loss carryforwards | (8,377 | ) | (16,702 | ) | ||||
Other-net | (6,171 | ) | 3,952 | |||||
Total deferred income tax charged to consolidated income statement | (13,437 | ) | (41,497 | ) | ||||
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For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
Statutory tax rate in Japan | 40.90 | % | 40.91 | % | ||||
Effect of deferred tax assets not recognized | (25.65 | %) | (97.96 | %) | ||||
Tax-exempt dividend income | (0.25 | %) | 2.95 | % | ||||
Other-net | 2.08 | % | 0.17 | % | ||||
Effective income tax rate | 17.08 | % | (53.93 | %) | ||||
For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Available-for-sale financial assets | 68,110 | (88,930 | ) | |||||
Other | (43 | ) | (23 | ) | ||||
Total income tax charged (credited) to other comprehensive income | 68,067 | (88,953 | ) | |||||
27. | Retirement benefit obligations |
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At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Present value of funded obligations | 186,502 | 185,615 | 188,986 | |||||||||
Present value of unfunded obligations | 3,378 | 3,142 | 2,652 | |||||||||
Present value of total obligations | 189,880 | 188,757 | 191,638 | |||||||||
Fair value of plan assets | 209,055 | 181,526 | 224,302 | |||||||||
(19,175 | ) | 7,231 | (32,664 | ) | ||||||||
Unrecognized actuarial losses | (26,808 | ) | (50,631 | ) | – | |||||||
Net asset in the consolidated statement of financial position | (45,983 | ) | (43,400 | ) | (32,664 | ) | ||||||
Liability recognized in the consolidated statement of financial position | 5,793 | 5,706 | 5,462 | |||||||||
Asset recognized in the consolidated statement of financial position | 51,776 | 49,106 | 38,126 |
For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Balance at beginning of year | 188,757 | 191,638 | ||||||
Current service cost | 3,499 | 3,797 | ||||||
Interest cost | 3,825 | 3,636 | ||||||
Actuarial losses/(gains) | 1,873 | (2,620 | ) | |||||
Benefits paid | (8,074 | ) | (7,694 | ) | ||||
Balance at end of year | 189,880 | 188,757 | ||||||
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For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Balance at beginning of year | 181,526 | 224,302 | ||||||
Expected return on plan assets | 6,735 | 10,283 | ||||||
Actuarial gains/(losses) | 22,277 | (53,251 | ) | |||||
Employer contributions | 6,188 | 7,466 | ||||||
Benefits paid | (7,671 | ) | (7,274 | ) | ||||
Balance at end of year | 209,055 | 181,526 | ||||||
For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Current service cost | 3,499 | 3,797 | ||||||
Interest cost | 3,825 | 3,636 | ||||||
Expected return on plan assets | (6,735 | ) | (10,283 | ) | ||||
Amortization of net actuarial losses recognized during the year | 3,419 | – | ||||||
Pension costs | 4,008 | (2,850 | ) | |||||
At March 31, | At April 1, | |||||
2010 | 2009 | 2008 | ||||
Discount rate | 1.9% - 2.3% | 1.8% - 2.1% | 1.5% - 2.0% | |||
Future salary increases | 5.6% - 6.5% | 5.4% - 5.6% | 5.4% - 5.6% |
For the year ended | ||||
March 31, | ||||
2010 | 2009 | |||
Discount rate | 1.8% - 2.1% | 1.5% - 2.0% | ||
Expected return on plan assets | 2.8% - 5.7% | 3.5% - 6.3% | ||
Future salary increases | 5.4% - 5.6% | 5.4% - 5.6% |
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At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
Life expectancy at age 45 and 65 | ||||||||||||
Age 45 | 37.0 | 36.5 | 36.5 | |||||||||
Age 65 | 19.8 | 19.3 | 19.3 |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
Equity securities | 56.5 | % | 50.9 | % | 59.4 | % | ||||||
Debt securities | 34.4 | % | 38.6 | % | 31.9 | % | ||||||
Other | 9.1 | % | 10.5 | % | 8.7 | % | ||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
At March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Present value of defined benefit obligation | 189,880 | 188,757 | ||||||
Fair value of plan assets | 209,055 | 181,526 | ||||||
Deficit/(surplus) in the plan | (19,175 | ) | 7,231 | |||||
Experience losses/(gains) on plan liabilities | 1,420 | 969 | ||||||
Experience losses/(gains) on plan assets | (22,277 | ) | 53,251 |
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28. | Other liabilities |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Accrued bonus and compensated absences | 3,576 | 3,511 | 3,661 | |||||||||
Employee deposits | 4,759 | 4,555 | 4,462 | |||||||||
Accrued expenses | 61,510 | 57,812 | 49,188 | |||||||||
Advance receipt | 4,067 | 1,874 | 2,147 | |||||||||
Payables for securities transactions | 30,122 | 126,227 | 23,628 | |||||||||
Withholding tax payable on dividends from a subsidiary | – | – | 30,001 | |||||||||
Obligation under finance leases | 3,010 | 3,394 | 3,561 | |||||||||
Other | 27,296 | 31,549 | 34,092 | |||||||||
Total | 134,340 | 228,922 | 150,740 | |||||||||
Current | 120,663 | 216,526 | 141,657 | |||||||||
Non-current | 13,677 | 12,396 | 9,083 |
29. | Share capital and capital surplus |
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Class II | Class III | |||||||||||||||
Ordinary shares | Treasury shares | preferred shares | preferred shares | |||||||||||||
(Numbers of shares) | ||||||||||||||||
At April 1, 2008 | 987,551,267 | 280,082 | 93,750,000 | 133,281,250 | ||||||||||||
Conversion of preferred shares to ordinary shares | 170,000,000 | – | – | (47,812,500 | ) | |||||||||||
Purchase of treasury shares | – | 107,620 | – | – | ||||||||||||
Redemption and retirement of preferred shares | – | – | – | (54,000,000 | ) | |||||||||||
Disposal of treasury shares | – | (63,545 | ) | – | – | |||||||||||
At March 31, 2009 | 1,157,551,267 | 324,157 | 93,750,000 | 31,468,750 | ||||||||||||
Conversion of preferred shares to ordinary shares | 500,875,000 | – | (93,750,000 | ) | (31,468,750 | ) | ||||||||||
Purchase of treasury shares | – | 54,252 | – | – | ||||||||||||
Disposal of treasury shares | – | (12,260 | ) | – | – | |||||||||||
At March 31, 2010 | 1,658,426,267 | 366,149 | – | – | ||||||||||||
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Class II preferred shares | Class III preferred shares | |||||||
(Millions of yen) | ||||||||
Proceeds of issue | 150,000 | 213,250 | ||||||
Liability component at date of issue | (133,753 | ) | (190,152 | ) | ||||
Equity component | 16,247 | 23,098 | ||||||
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Class II preferred shares | Class III preferred shares | |||
Number of shares issued | 93,750,000 shares | 133,281,250 shares | ||
Aggregate issue price | ¥150,000 million | ¥213,250 million | ||
Per share issue price | ¥1,600 | ¥1,600 | ||
Per share liquidation | ¥1,600 | ¥1,600 | ||
Per share conversion price | ¥450 | ¥450 | ||
Period during which conversion requests acceptable | Until July 31, 2009 | Until July 31, 2009 | ||
Mandatory conversion date | August 1, 2009 | August 1, 2009 | ||
Conversion price at mandatory conversion date | Average of 30-day closing price for ordinary shares of Chuo Mitsui Trust Holdings, Inc. starting 45 days prior to mandatory conversion date with a floor of ¥400 | Average of 30-day closing price for ordinary shares of Chuo Mitsui Trust Holdings, Inc. starting 45 days prior to mandatory conversion date with a floor of ¥400 |
30. | Retained earnings and other reserves |
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For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
At beginning of year | 155,201 | 315,130 | ||||||
Profit/(loss) attributable to owners of the parent | 97,354 | (149,002 | ) | |||||
Dividends paid | (7,765 | ) | (10,927 | ) | ||||
At end of year | 244,790 | 155,201 | ||||||
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At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Unrealized gains onavailable-for-sale financial assets | 118,753 | 21,548 | 154,838 | |||||||||
Cash flow hedges | 185 | 246 | 277 | |||||||||
Exchange differences on translations of foreign operations | (1,488 | ) | (1,979 | ) | – | |||||||
Share of other comprehensive income/(loss) of associates and joint ventures | (1 | ) | (2 | ) | – | |||||||
Other | 1 | 2 | – | |||||||||
Total other reserves | 117,450 | 19,815 | 155,115 | |||||||||
For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
At beginning of year | 21,548 | 154,838 | ||||||
Net unrealized gains/(losses) onavailable-for-sale financial assets | 156,397 | (335,914 | ) | |||||
Income tax relating to net unrealized gains/(losses) onavailable-for-sale financial assets | (64,462 | ) | 135,442 | |||||
Reclassification adjustments for gains/(losses) included in profit or loss | ||||||||
Amortization of discounts | 38,104 | 29,100 | ||||||
Net gains on disposal ofavailable-for-sale financial assets | (38,105 | ) | (29,518 | ) | ||||
Losses on impairment ofavailable-for-sale financial assets | 8,919 | 114,112 | ||||||
Income tax relating to reclassification adjustments for gains/(losses) included in profit or loss | (3,648 | ) | (46,512 | ) | ||||
At end of year | 118,753 | 21,548 | ||||||
For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
At beginning of year | 246 | 277 | ||||||
Reclassification adjustments for losses included in profit or loss | (103 | ) | (52 | ) | ||||
Income tax relating to reclassification adjustments for gains included in profit or loss | 42 | 21 | ||||||
At end of year | 185 | 246 | ||||||
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For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
At beginning of year | (1,979 | ) | – | |||||
Foreign currency translation differences arising from the translation of foreign operations | 491 | (1,979 | ) | |||||
At end of year | (1,488 | ) | (1,979 | ) | ||||
31. | Non-controlling interests |
For the year ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
At beginning of year | 186,703 | 146,658 | ||||||
Share of profit for the year | 6,750 | 4,453 | ||||||
Share of net gains onavailable-for-sale financial assets | 165 | 351 | ||||||
Dividends paid | (7,649 | ) | (5,801 | ) | ||||
Issues of preferred securities (see Note 29) | – | 41,000 | ||||||
Other | – | 42 | ||||||
At end of year | 185,969 | 186,703 | ||||||
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At March 31, | At March 31, | At April 1, | ||||||||||||||
Notes | 2010 | 2009 | 2008 | |||||||||||||
(Millions of yen) | ||||||||||||||||
Non-cumulative preferred securities with voluntary redemption clause, payable in Japanese yen, with liquidation preference of ¥1,000,000 | 1 | 27,500 | 27,500 | 27,500 | ||||||||||||
Non-cumulative preferred securities with voluntary redemption clause, payable in Japanese yen, with liquidation preference of ¥1,000,000 | 2 | 30,000 | 30,000 | 30,000 | ||||||||||||
Non-cumulative preferred securities with voluntary redemption clause, payable in Japanese yen, with liquidation preference of ¥1,000,000 | 3 | 10,000 | 10,000 | 10,000 | ||||||||||||
Non-cumulative preferred securities with voluntary redemption clause, payable in Japanese yen, with liquidation preference of ¥100,000,000 | 4 | 33,000 | 33,000 | 33,000 | ||||||||||||
Non-cumulative preferred securities with voluntary redemption clause, payable in Japanese yen, with liquidation preference of ¥100,000,000 | 5 | 42,000 | 42,000 | 42,000 | ||||||||||||
Non-cumulative preferred securities with voluntary redemption clause, payable in Japanese yen, Series A and B, with liquidation preference of ¥100,000,000 (see Note 29) | 6 | 41,000 | 41,000 | – | ||||||||||||
Total | 183,500 | 183,500 | 142,500 | |||||||||||||
1. | No redemption date is provided. However, subject to prior approval by regulatory agencies, the security is redeemable voluntarily at the option of the issuer on each dividend date in July 2012 and thereafter. Non-cumulative discretionary dividends are variable at a rate indexed to 6 months LIBOR, with nostep-up feature. | |
2. | No redemption date is provided. However, subject to prior approval by regulatory agencies, the security is redeemable voluntarily at the option of the issuer on each dividend date in July 2013 and thereafter. Non-cumulative discretionary dividends are variable at a rate indexed to 6 months LIBOR, with nostep-up feature. | |
3. | No redemption date is provided. However, subject to prior approval by regulatory agencies, the security is redeemable voluntarily at the option of the issuer on each dividend date in July 2014 and thereafter. Non-cumulative discretionary dividends are variable at a rate indexed to 6 months LIBOR, with nostep-up feature. | |
4. | No redemption date is provided. However, subject to prior approval by regulatory agencies, the security is redeemable voluntarily at the option of the issuer on each dividend date in July 2017 and thereafter. Non-cumulative discretionary dividends are fixed at 3. 02% initially and are variable at a rate indexed to 6 months LIBOR, with astep-up feature, on dividend dates after July 2017. | |
5. | No redemption date is provided. However, subject to prior approval by regulatory agencies, the security is redeemable voluntarily at the option of the issuer on each dividend date in July 2018 and thereafter. Non-cumulative discretionary dividends are fixed at 3. 52% initially and are variable at a rate indexed to 6 months LIBOR, with astep-up feature, on dividend dates after July 2018. | |
6. | No redemption date is provided. However, subject to prior approval by regulatory agencies, the security is redeemable voluntarily at the option of the issuer on each dividend date in July 2019 and thereafter. Non-cumulative discretionary dividends are fixed at 5. 09% (Series A) and 5. 59% (Series B) initially and are variable at a rate indexed to 6 months LIBOR on dividend dates after July 2019. Astep-up dividend is added with respect to the Series A issue. |
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32. | Financial assets and financial liabilities |
Designated at | ||||||||||||||||||||||||||||
fair value | Available – | Financial | ||||||||||||||||||||||||||
Held for | through | Held-to- | Loans and | for-sale | liabilities at | |||||||||||||||||||||||
trading | profit or loss | maturity | receivables | instruments | amortized cost | Total | ||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||
Cash and deposits with banks | – | – | – | 268,450 | – | – | 268,450 | |||||||||||||||||||||
Call loans | – | – | – | 10,875 | – | – | 10,875 | |||||||||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | – | – | – | 1,521 | – | – | 1,521 | |||||||||||||||||||||
Financial assets held for trading other than derivatives | 12,007 | – | – | – | – | – | 12,007 | |||||||||||||||||||||
Derivative financial assets | 203,406 | – | – | – | – | – | 203,406 | |||||||||||||||||||||
Financial assets designated at fair value through profit or loss | – | 124,408 | – | – | – | – | 124,408 | |||||||||||||||||||||
Investment securities – equity securities | – | – | – | – | 750,473 | – | 750,473 | |||||||||||||||||||||
Investment securities – debt securities | – | (7,969 | ) | 394,015 | 332,790 | 1,034,386 | – | 1,753,222 | ||||||||||||||||||||
Investment securities sub total | – | (7,969 | ) | 394,015 | 332,790 | 1,784,859 | – | 2,503,695 | ||||||||||||||||||||
Loans and advances | – | – | – | 9,710,846 | – | – | 9,710,846 | |||||||||||||||||||||
Assets pledged as collateral | – | (173 | ) | 5,308 | – | 1,716,218 | – | 1,721,353 | ||||||||||||||||||||
Other assets | – | – | – | 200,814 | 53,286 | – | 254,100 | |||||||||||||||||||||
Total | 215,413 | 116,266 | 399,323 | 10,525,296 | 3,554,363 | – | 14,810,661 | |||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||
Deposits | – | – | – | – | – | 9,064,722 | 9,064,722 | |||||||||||||||||||||
Call money | – | – | – | – | – | 306,161 | 306,161 | |||||||||||||||||||||
Cash collateral on securities lent and repurchase agreements | – | – | – | – | – | 1,702,698 | 1,702,698 | |||||||||||||||||||||
Derivative financial liabilities | 191,963 | – | – | – | – | – | 191,963 |
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Designated at | ||||||||||||||||||||||||||||
fair value | Available – | Financial | ||||||||||||||||||||||||||
Held for | through | Held-to- | Loans and | for-sale | liabilities at | |||||||||||||||||||||||
trading | profit or loss | maturity | receivables | instruments | amortized cost | Total | ||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss | – | 2,080 | – | – | – | – | 2,080 | |||||||||||||||||||||
Due to trust accounts | – | – | – | – | – | 21,356 | 21,356 | |||||||||||||||||||||
Due to investor of trust accounts | – | – | – | – | – | 1,568,220 | 1,568,220 | |||||||||||||||||||||
Debt securities issued | – | – | – | – | – | 233,969 | 233,969 | |||||||||||||||||||||
Borrowings | – | – | – | – | – | 1,228,505 | 1,228,505 | |||||||||||||||||||||
Other liabilities | – | – | – | – | – | 103,008 | 103,008 | |||||||||||||||||||||
Total | 191,963 | 2,080 | – | – | – | 14,228,639 | 14,422,682 | |||||||||||||||||||||
At March 31, 2009 | ||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||
Cash and deposit with banks | – | – | – | 239,871 | – | – | 239,871 | |||||||||||||||||||||
Call loans | – | – | – | 23,765 | – | – | 23,765 | |||||||||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | – | – | – | 8,812 | – | – | 8,812 | |||||||||||||||||||||
Financial assets held for trading other than derivatives | 26,243 | – | – | – | – | – | 26,243 | |||||||||||||||||||||
Derivative financial assets | 232,378 | – | – | – | – | – | 232,378 | |||||||||||||||||||||
Financial assets designated at fair value through profit or loss | – | 129,742 | – | – | – | – | 129,742 | |||||||||||||||||||||
Investment securities – equity securities | – | – | – | – | 620,069 | – | 620,069 | |||||||||||||||||||||
Investment securities – debt securities | – | (18,427 | ) | 596,829 | 354,274 | 1,766,829 | – | 2,699,505 | ||||||||||||||||||||
Investment securities sub total | – | (18,427 | ) | 596,829 | 354,274 | 2,386,898 | – | 3,319,574 | ||||||||||||||||||||
Loans and advances | – | – | – | 9,831,088 | – | – | 9,831,088 | |||||||||||||||||||||
Assets pledged as collateral | – | (161 | ) | – | – | 1,290,677 | – | 1,290,516 | ||||||||||||||||||||
Other assets | – | – | – | 129,498 | 53,012 | – | 182,510 | |||||||||||||||||||||
Total | 258,621 | 111,154 | 596,829 | 10,587,308 | 3,730,587 | – | 15,284,499 | |||||||||||||||||||||
�� | ||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||
Deposits | – | – | – | – | – | 9,421,346 | 9,421,346 | |||||||||||||||||||||
Call money | – | – | – | – | – | 253,478 | 253,478 | |||||||||||||||||||||
Cash collateral on securities lent and repurchase agreements | – | – | – | – | – | 1,255,648 | 1,255,648 | |||||||||||||||||||||
Derivative financial liabilities | 240,074 | – | – | – | – | – | 240,074 |
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Designated at | ||||||||||||||||||||||||||||
fair value | Available – | Financial | ||||||||||||||||||||||||||
Held for | through | Held-to- | Loans and | for-sale | liabilities at | |||||||||||||||||||||||
trading | profit or loss | maturity | receivables | instruments | amortized cost | Total | ||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss | – | 2,818 | – | – | – | – | 2,818 | |||||||||||||||||||||
Due to trust accounts | – | – | – | – | – | 25,592 | 25,592 | |||||||||||||||||||||
Due to investor of trust accounts | – | – | – | – | – | 1,891,361 | 1,891,361 | |||||||||||||||||||||
Debt securities issued | – | – | – | – | – | 373,395 | 373,395 | |||||||||||||||||||||
Borrowings | – | – | – | – | – | 1,704,097 | 1,704,097 | |||||||||||||||||||||
Other liabilities | – | – | – | – | – | 195,869 | 195,869 | |||||||||||||||||||||
Total | 240,074 | 2,818 | – | – | – | 15,120,786 | 15,363,678 | |||||||||||||||||||||
At April 1, 2008 | ||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||
Cash and deposit with banks | – | – | – | 220,375 | – | – | 220,375 | |||||||||||||||||||||
Call loans | – | – | – | 236,344 | – | – | 236,344 | |||||||||||||||||||||
Cash collateral on securities borrowed and reverse repurchase agreements | – | – | – | 104,003 | – | – | 104,003 | |||||||||||||||||||||
Financial assets held for trading other than derivatives | 30,006 | – | – | – | – | – | 30,006 | |||||||||||||||||||||
Derivative financial assets | 181,114 | – | – | – | – | – | 181,114 | |||||||||||||||||||||
Financial assets designated at fair value through profit or loss | – | 223,460 | – | – | – | – | 223,460 | |||||||||||||||||||||
Investment securities – equity securities | – | 131 | – | – | 939,955 | – | 940,086 | |||||||||||||||||||||
Investment securities – debt securities | – | (6,364 | ) | 336,957 | 240,084 | 882,607 | – | 1,453,284 | ||||||||||||||||||||
Investment securities sub total | – | (6,233 | ) | 336,957 | 240,084 | 1,822,562 | – | 2,393,370 | ||||||||||||||||||||
Loans and advances | – | – | – | 9,257,436 | – | – | 9,257,436 | |||||||||||||||||||||
Assets pledged as collateral | – | 832 | 257,602 | – | 1,603,583 | – | 1,862,017 | |||||||||||||||||||||
Other assets | – | – | – | 112,365 | 52,291 | – | 164,656 | |||||||||||||||||||||
Total | 211,120 | 218,059 | 594,559 | 10,170,607 | 3,478,436 | – | 14,672,781 | |||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||
Deposits | – | – | – | – | – | 8,803,077 | 8,803,077 | |||||||||||||||||||||
Call money | – | – | – | – | – | 291,582 | 291,582 | |||||||||||||||||||||
Cash collateral on securities lent and repurchase agreements | – | – | – | – | – | 1,821,318 | 1,821,318 | |||||||||||||||||||||
Derivative financial liabilities | 182,139 | – | – | – | – | – | 182,139 | |||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss | – | 3,530 | – | – | – | – | 3,530 |
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Designated at | ||||||||||||||||||||||||||||
fair value | Available – | Financial | ||||||||||||||||||||||||||
Held for | through | Held-to- | Loans and | for-sale | liabilities at | |||||||||||||||||||||||
trading | profit or loss | maturity | receivables | instruments | amortized cost | Total | ||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||
Due to trust accounts | – | – | – | – | – | 26,305 | 26,305 | |||||||||||||||||||||
Due to investor of trust accounts | – | – | – | – | – | 2,252,157 | 2,252,157 | |||||||||||||||||||||
Debt securities issued | – | – | – | – | – | 532,116 | 532,116 | |||||||||||||||||||||
Borrowings | – | – | – | – | – | 485,471 | 485,471 | |||||||||||||||||||||
Other liabilities | – | – | – | – | – | 80,857 | 80,857 | |||||||||||||||||||||
Total | 182,139 | 3,530 | – | – | – | 14,292,883 | 14,478,552 | |||||||||||||||||||||
33. | Fair value of financial assets and liabilities |
33.1. | Fair value information of financial assets and liabilities comparison with carrying amounts |
At March 31, | At March 31, | |||||||||||||||
2010 | 2009 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
amount | value | amount | value | |||||||||||||
(Millions of yen) | ||||||||||||||||
Financial assets | ||||||||||||||||
Cash and deposit with banks | 268,450 | 268,450 | 239,871 | 239,871 | ||||||||||||
Call loans | 10,875 | 10,875 | 23,765 | 23,765 | ||||||||||||
Cash collateral on securities borrowed and reverse repurchased agreements | 1,521 | 1,521 | 8,812 | 8,812 | ||||||||||||
Financial assets held for trading other than derivatives | 12,007 | 12,007 | 26,243 | 26,243 | ||||||||||||
Derivative financial assets | 203,406 | 203,406 | 232,378 | 232,378 | ||||||||||||
Financial assets designated at fair value through profit or loss: | ||||||||||||||||
Equity securities | 92,609 | 92,609 | 65,300 | 65,300 | ||||||||||||
Debt securities | 31,799 | 31,799 | 64,442 | 64,442 | ||||||||||||
Sub total | 124,408 | 124,408 | 129,742 | 129,742 | ||||||||||||
Investment securities – equity securities: | ||||||||||||||||
Available-for-sale | 750,473 | 750,473 | 620,069 | 620,069 | ||||||||||||
Investment securities – debt securities: | ||||||||||||||||
Available-for-sale | 1,034,386 | 1,034,386 | 1,766,829 | 1,766,829 | ||||||||||||
Embedded derivatives | (7,969 | ) | (7,969 | ) | (18,427 | ) | (18,427 | ) | ||||||||
Held-to-maturity | 394,015 | 396,211 | 596,829 | 602,645 | ||||||||||||
Loans and receivables | 332,790 | 330,432 | 354,274 | 329,947 | ||||||||||||
Subtotal | 1,753,222 | 1,753,060 | 2,699,505 | 2,680,994 | ||||||||||||
Loans and advances | 9,710,846 | 9,776,704 | 9,831,088 | 9,881,778 | ||||||||||||
Asset pledged as collateral: | ||||||||||||||||
Available-for-sale | 1,716,218 | 1,716,218 | 1,290,677 | 1,290,677 | ||||||||||||
Embedded derivatives | (173 | ) | (173 | ) | (161 | ) | (161 | ) | ||||||||
Held-to-maturity | 5,308 | 5,347 | – | – | ||||||||||||
Subtotal | 1,721,353 | 1,721,392 | 1,290,516 | 1,290,516 | ||||||||||||
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At March 31, | At March 31, | |||||||||||||||
2010 | 2009 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
amount | value | amount | value | |||||||||||||
(Millions of yen) | ||||||||||||||||
Other financial assets: | ||||||||||||||||
Available-for-sale | 53,286 | 53,286 | 53,012 | 53,012 | ||||||||||||
Loans and receivables | 200,814 | 202,447 | 129,498 | 132,050 | ||||||||||||
Sub total | 254,100 | 255,733 | 182,510 | 185,062 | ||||||||||||
Total | 14,810,661 | 14,878,029 | 15,284,499 | 15,319,230 | ||||||||||||
Financial liabilities | ||||||||||||||||
Deposits | 9,064,722 | 9,104,158 | 9,421,346 | 9,461,749 | ||||||||||||
Call money | 306,161 | 306,161 | 253,478 | 253,478 | ||||||||||||
Cash collateral on securities lent and repurchase agreements | 1,702,698 | 1,702,698 | 1,255,648 | 1,255,648 | ||||||||||||
Derivative financial liabilities | 191,963 | 191,963 | 240,074 | 240,074 | ||||||||||||
Financial liabilities designated at fair value through profit or loss | 2,080 | 2,080 | 2,818 | 2,818 | ||||||||||||
Due to trust accounts | 21,356 | 21,356 | 25,592 | 25,592 | ||||||||||||
Due to investors of trust accounts | 1,568,220 | 1,573,526 | 1,891,361 | 1,891,782 | ||||||||||||
Debt securities issued | 233,969 | 237,063 | 373,395 | 319,819 | ||||||||||||
Borrowings | 1,228,505 | 1,232,579 | 1,704,097 | 1,702,999 | ||||||||||||
Other financial liabilities | 103,008 | 103,008 | 195,869 | 195,869 | ||||||||||||
Total | 14,422,682 | 14,474,592 | 15,363,678 | 15,349,828 | ||||||||||||
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• | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. This level includes listed equity securities, and debt instruments quoted in active markets and exchange traded derivatives like futures. CMTH considers markets to be active based on trading volume and activity and bid and ask spread. | |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). This level principally includes a majority of the OTC derivative contracts, most government agency securities, municipal obligations, investment-grade corporate bonds and unlisted public investment funds which invest only in listed products. The sources of input parameters like LIBOR yield curve are available from price information providers such as Bloomberg or Reuters. | |
• | Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable inputs). This level principally includes most unlisted equity investments, unlisted investment partnerships, certain interests in securitizations, and debt instruments and derivatives with significant unobservable components. |
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Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Millions of yen) | ||||||||||||||||
At March 31, 2010 | ||||||||||||||||
Financial assets held for trading other than derivatives | 50 | 11,957 | – | 12,007 | ||||||||||||
Derivative financial assets | 39 | 202,543 | 824 | 203,406 | ||||||||||||
Financial assets designated at fair value through profit or loss | 7,480 | 19,116 | 97,812 | 124,408 | ||||||||||||
Investment securities | ||||||||||||||||
Equity securities | 575,692 | 47,077 | 127,704 | 750,473 | ||||||||||||
Debt securities | 416,907 | 402,766 | 206,744 | 1,026,417 | ||||||||||||
Assets pledged as collateral | 1,465,909 | 250,136 | – | 1,716,045 | ||||||||||||
Other financial assets | – | – | 53,286 | 53,286 | ||||||||||||
Total financial assets | 2,466,077 | 933,595 | 486,370 | 3,886,042 | ||||||||||||
Derivative financial liabilities | – | 190,159 | 1,804 | 191,963 | ||||||||||||
Financial liabilities designated at fair value through profit or loss | 2,080 | – | – | 2,080 | ||||||||||||
Total financial liabilities | 2,080 | 190,159 | 1,804 | 194,043 | ||||||||||||
At March 31, 2009 | ||||||||||||||||
Financial assets held for trading other than derivatives | 117 | 26,126 | – | 26,243 | ||||||||||||
Derivative financial assets | 32 | 231,691 | 655 | 232,378 | ||||||||||||
Financial assets designated at fair value through profit or loss | 7,869 | 23,041 | 98,832 | 129,742 | ||||||||||||
Investment securities | ||||||||||||||||
Equity securities | 469,598 | 44,480 | 105,991 | 620,069 | ||||||||||||
Debt securities | 1,149,570 | 416,627 | 182,205 | 1,748,402 | ||||||||||||
Assets pledged as collateral | 892,301 | 398,215 | – | 1,290,516 | ||||||||||||
Other financial assets | – | – | 53,012 | 53,012 | ||||||||||||
Total financial assets | 2,519,487 | 1,140,180 | 440,695 | 4,100,362 | ||||||||||||
Derivative financial liabilities | 8 | 225,914 | 14,152 | 240,074 | ||||||||||||
Financial liabilities designated at fair value through profit or loss | 2,818 | – | – | 2,818 | ||||||||||||
Total financial liabilities | 2,826 | 225,914 | 14,152 | 242,892 | ||||||||||||
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(a) Listed shares |
(b) Unlisted equity securities |
(c) Unlisted investment funds |
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(a) Government bonds, municipal obligations and corporate debt |
(b) Mortgage-backed securities and asset-backed securities |
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(a) Exchange traded derivatives |
(b) OTC derivatives |
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33.3. | Reconciliation of Level 3 items |
Financial | ||||||||||||||||||||||||||||||||
assets | ||||||||||||||||||||||||||||||||
designated | ||||||||||||||||||||||||||||||||
at fair value | Investment | Investment | ||||||||||||||||||||||||||||||
Derivative | through | securities – | securities – | Other | Derivative | |||||||||||||||||||||||||||
financial | profit or | equity | debt | financial | financial | Total | ||||||||||||||||||||||||||
assets | loss | securities | securities | assets | Total assets | liabilities | liabilities | |||||||||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||||||||||
Balance at March 31, 2009 | 655 | 98,832 | 105,991 | 182,205 | 53,012 | 440,695 | 14,152 | 14,152 | ||||||||||||||||||||||||
Total gains and losses | ||||||||||||||||||||||||||||||||
Profit or loss | 824 | (3,352 | ) | (727 | ) | (7 | ) | – | (3,262 | ) | (12,044 | ) | (12,044 | ) | ||||||||||||||||||
Other comprehensive income | – | – | 23,963 | 12,572 | 274 | 36,809 | – | – | ||||||||||||||||||||||||
Purchases | – | 3,130 | 540 | 44,203 | – | 47,873 | – | – | ||||||||||||||||||||||||
Settlements | (655 | ) | (798 | ) | (2,063 | ) | (32,229 | ) | – | (35,745 | ) | (304 | ) | (304 | ) | |||||||||||||||||
Balance at March 31, 2010 | 824 | 97,812 | 127,704 | 206,744 | 53,286 | 486,370 | 1,804 | 1,804 | ||||||||||||||||||||||||
33.4. | Effect of changes in significant unobservable input to reasonably possible alternatives |
Increase in fair value | Decrease in fair value | |||||||
(Millions of yen) | ||||||||
Unlisted equity securities | 17,515 | 17,502 | ||||||
Corporate bonds | 2,422 | 2,323 | ||||||
Other | 2,599 | 2,593 |
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34. | Net interest income |
For the fiscal year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Interest income | ||||||||
Loans and advances | 155,579 | 168,845 | ||||||
Cash and deposit with banks | 203 | 341 | ||||||
Call loans | 183 | 1,003 | ||||||
Investment securities – debt securities | 47,271 | 61,467 | ||||||
Other | 469 | 1,170 | ||||||
Total interest income | 203,705 | 232,826 | ||||||
Interest expenses | ||||||||
Deposits | 46,392 | 51,462 | ||||||
Cash collateral on securities lent and repurchase agreements | 3,484 | 19,516 | ||||||
Due to investors of trust accounts | 9,196 | 13,090 | ||||||
Debt securities issued | 8,171 | 9,952 | ||||||
Borrowings | 4,069 | 5,937 | ||||||
Other | 1,502 | 4,640 | ||||||
Total interest expenses | 72,814 | 104,597 | ||||||
Net interest income | 130,891 | 128,229 | ||||||
35. | Net fee and commission income |
For the fiscal year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Fee and commission income | ||||||||
Trust and asset management fees | 51,758 | 54,769 | ||||||
Investment trust sales fees | 12,178 | 10,524 | ||||||
Insurance product sales fees | 7,054 | 11,187 | ||||||
Real estate brokerage fees | 9,308 | 12,417 | ||||||
Stock transfer agency fees | 22,696 | 27,785 | ||||||
Other fees | 9,881 | 9,804 | ||||||
Total fee and commission income | 112,875 | 126,486 | ||||||
Fee and commission expenses | 21,061 | 15,351 | ||||||
Net fee and commission income | 91,814 | 111,135 | ||||||
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36. | Net gains/(losses) on financial instruments classified as held for trading |
For the fiscal year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Debt securities | (918 | ) | (1,037 | ) | ||||
Derivatives | ||||||||
Interest rate contracts | 9,802 | 26 | ||||||
Foreign currency contracts | (238 | ) | (1,166 | ) | ||||
Stock contracts | (517 | ) | (18,458 | ) | ||||
Bond contracts | (8,247 | ) | (4,788 | ) | ||||
Credit contracts | 13,986 | (14,361 | ) | |||||
Total | 13,868 | (39,784 | ) | |||||
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37. | Net losses on financial instruments designated at fair value through profit or loss |
For the fiscal year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Debt securities | (7,939 | ) | 661 | |||||
Equity securities | 7,136 | (41,277 | ) | |||||
Total | (803 | ) | (40,616 | ) | ||||
38. | Net investment income |
For the fiscal year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Financial assets classified asavailable-for-sale | ||||||||
Net gains on sales of debt securities | 20,208 | 17,319 | ||||||
Net gains on sales of equity securities | 17,897 | 12,199 | ||||||
Dividends | 7,819 | 19,067 | ||||||
Sub total | 45,924 | 48,585 | ||||||
Gains on foreign exchange | 992 | 2,247 | ||||||
Other | 81 | 59 | ||||||
Total | 46,997 | 50,891 | ||||||
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39. | Impairment charges |
For the fiscal year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Investment securities – equity securities | ||||||||
Financial assets classified asavailable-for-sale | 8,912 | 114,108 | ||||||
Investment securities – debt securities | ||||||||
Financial assets classified asavailable-for-sale | 7 | 4 | ||||||
Financial assets classified as loans and receivables | – | 2,824 | ||||||
Loans and advances | ||||||||
Financial assets classified as loans and receivables | 11,126 | 46,386 | ||||||
Other assets | ||||||||
Financial assets classified as loans and receivables | (232 | ) | 374 | |||||
Total | 19,813 | 163,696 | ||||||
For the year ended March 31 | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Loans and advances to customers – individual | ||||||||
Increase/(decrease) in provision for impairment losses | (241 | ) | (1,996 | ) | ||||
Amount written off during the year as uncollectible | 1,956 | 2,194 | ||||||
Income received on claims previously written off | (678 | ) | (874 | ) | ||||
Sub total | 1,037 | (676 | ) | |||||
Loans and advances to customers – corporate | ||||||||
Increase/(decrease) in provision for impairment losses | 4,507 | 21,852 | ||||||
Amount written off during the year as uncollectible | 8,281 | 27,742 | ||||||
Income received on claims previously written off | (2,710 | ) | (2,536 | ) | ||||
Other | 11 | 4 | ||||||
Sub total | 10,089 | 47,062 | ||||||
Total | 11,126 | 46,386 | ||||||
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40. | Other operating income |
For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Gain on disposal of property and equipment | 277 | 267 | ||||||
Gain on redemption of subordinated bonds | 1,860 | – | ||||||
Gain on redemption of Class III preferred shares (see Note 29) | – | 1,621 | �� | |||||
Dividends on miscellaneous contributions | 2,262 | 1,940 | ||||||
Other individually immaterial income | 7,984 | 6,323 | ||||||
Total | 12,383 | 10,151 | ||||||
41. | General and administration expenses |
For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Personnel expenses | 70,787 | 61,452 | ||||||
Operating and administrative expenses | 46,780 | 55,757 | ||||||
Depreciation and amortization | 12,252 | 14,752 | ||||||
Total | 129,819 | 131,961 | ||||||
For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Wages and salaries | 59,370 | 56,885 | ||||||
Social security costs | 7,409 | 7,417 | ||||||
Pension costs (see Note 27) | 4,008 | (2,850 | ) | |||||
Total personnel expenses | 70,787 | 61,452 | ||||||
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For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Rent expenses on real estates | 9,003 | 11,292 | ||||||
Deposit insurance premium | 8,128 | 8,057 | ||||||
Taxes and dues | 5,708 | 5,094 | ||||||
IT and software cost | 4,735 | 4,704 | ||||||
Advertising expenses | 3,260 | 5,175 | ||||||
Outsourcing fee | 3,379 | 3,716 | ||||||
Communication expenses | 2,453 | 3,618 | ||||||
Maintenance fee | 2,729 | 2,935 | ||||||
Supplies expenses | 2,157 | 1,897 | ||||||
Utilities expenses | 842 | 991 | ||||||
Other general and operating expenses | 4,386 | 8,278 | ||||||
Total operating and administrative expenses | 46,780 | 55,757 | ||||||
For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Depreciation of property and equipment | 5,374 | 6,026 | ||||||
Amortization of intangible assets | 6,878 | 8,726 | ||||||
Total depreciation and amortization | 12,252 | 14,752 | ||||||
42. | Other operating expenses |
For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Loss on disposal of property and equipment | 503 | 1,974 | ||||||
Expenses for system development | 3,804 | 4,594 | ||||||
Professional service fee | 6,728 | 5,702 | ||||||
Expenses for integration | 525 | – | ||||||
Other individually immaterial expenses | 7,899 | 7,123 | ||||||
Total other operating expenses | 19,459 | 19,393 | ||||||
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43. | Per share information |
(a) Basic earnings per share |
For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
Profit/(loss) attributable to the owners of the parent (millions of yen) | 97,354 | (149,002 | ) | |||||
Adjustments for: | ||||||||
Total amount of dividends of preferred shares, after tax (millions of yen) | (1,980 | ) | (4,016 | ) | ||||
Adjusted profit/(loss) attributable to the owners of the parent (millions of yen) | 95,374 | (153,018 | ) | |||||
Weighted average number of ordinary shares issued (millions) | 1,491 | 1,107 | ||||||
Basic earnings (loss) per share (yen per share) | 63.98 | (138.18 | ) |
(b) Diluted earnings per share |
For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
Profit/(loss) attributable to the owners of the parent (millions of yen) | 97,354 | (149,002 | ) | |||||
Adjustments for: | ||||||||
Total amount of dividends of preferred shares (millions of yen) | (1,980 | ) | (4,016 | ) | ||||
The amount of dividends of Class II preferred shares (millions of yen) | 1,350 | – | ||||||
Amortization of Class II preferred shares (millions of yen) | 1,022 | – | ||||||
Adjusted profit/(loss) attributable to the owners of the parent (millions of yen) | 97,746 | (153,018 | ) | |||||
Weighted average number of ordinary shares issued (millions) | 1,491 | 1,107 | ||||||
Adjustments for: | ||||||||
Assumed conversion of preferred shares (millions) | 147 | – | ||||||
Weighted average number of ordinary shares for diluted earnings per share (millions) | 1,638 | 1,107 | ||||||
Diluted earnings (loss) per share (yen per share) | 59.65 | (138.18 | ) |
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(c) Dividends per share |
Dividend per share | Aggregate amounts | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Yen) | (Millions of yen) | |||||||||||||||
Ordinary shares | 5.00 | 7.00 | 5,786 | 6,911 | ||||||||||||
Class II preferred shares | 14.40 | 14.40 | 1,350 | 1,350 | ||||||||||||
Class III preferred shares | 20.00 | 20.00 | 629 | 2,666 |
Dividend per | Aggregate | |||||||
share | amounts | |||||||
(In yen) | (In millions) | |||||||
Ordinary shares | 8.00 | ¥ 13,264 |
(a) Statement of financial position at March 31, 2010, March 31, 2009 and April 1, 2008. |
At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Assets: | ||||||||||||
Cash and deposits with banks | 36,950 | 41,238 | 137,600 | |||||||||
Investments in subsidiaries and affiliated companies | 810,649 | 618,451 | 865,728 | |||||||||
Deferred income tax assets | 1,515 | 362 | 1,572 | |||||||||
Other assets | 2,348 | 3,233 | 37,197 | |||||||||
Total assets | 851,462 | 663,284 | 1,042,097 | |||||||||
Liabilities: | ||||||||||||
Debt securities issued | 189,700 | 389,021 | 504,003 | |||||||||
Current income tax liabilities | 40 | 23 | 16 | |||||||||
Retirement benefit obligations | 2,814 | 2,831 | 2,865 | |||||||||
Other liabilities | 1,629 | 1,565 | 1,130 | |||||||||
Total liabilities | 194,183 | 393,440 | 508,014 | |||||||||
Total equity attributable to owner of the parent | 657,279 | 269,844 | 534,083 | |||||||||
Total liabilities and equity | 851,462 | 663,284 | 1,042,097 | |||||||||
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(b) Income statements for the years ended March 31, 2010 and 2009 |
For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Interest income | 48 | 187 | ||||||
Interest expenses | 8,703 | 9,967 | ||||||
Net interest expenses | (8,655 | ) | (9,780 | ) | ||||
Fee and commission income | 3,608 | 2,650 | ||||||
Fee and commission expenses | 377 | 663 | ||||||
Net fee and commission income | 3,231 | 1,987 | ||||||
Other operating income | 19 | 1,663 | ||||||
Operating loss | (5,405 | ) | (6,130 | ) | ||||
General and administration expenses | 2,399 | 2,298 | ||||||
Other operating expenses | 513 | 106 | ||||||
Operating expenses | 2,912 | 2,404 | ||||||
Share of profit/(loss) of subsidiaries and affiliates | 104,574 | (139,082 | ) | |||||
Operating profit before tax | 96,257 | (147,616 | ) | |||||
Income tax expenses/(benefit) | (1,097 | ) | 1,386 | |||||
Profit/(loss) for the year | 97,354 | (149,002 | ) | |||||
(c) Statement of cash flows for the years ended March 31, 2010 and 2009 |
For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Cash flows from operating activities: | ||||||||
Operating profit before tax | 96,257 | (147,616 | ) | |||||
Share of (profit)/loss of subsidiaries and affiliates, net of dividends received | (97,628 | ) | 154,818 | |||||
Income taxes received- net | 896 | 33,997 | ||||||
Other | 4,153 | 1,148 | ||||||
Non-cash items | (62 | ) | (254 | ) | ||||
Net cash generated from operating activities | 3,616 | 42,093 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of investment securities | – | (41,600 | ) | |||||
Purchase of property and equipment | – | (4 | ) | |||||
Net cash flows generated from/(used in) investing activities | – | (41,604 | ) | |||||
Cash flows from financing activities: | ||||||||
Dividends paid | (7,765 | ) | (10,927 | ) | ||||
Proceeds from subordinated bonds | – | 41,600 | ||||||
Purchase of treasury shares | (18 | ) | (55 | ) | ||||
Disposal of treasury shares | 4 | 26 | ||||||
Redemption of Class III preferred shares | – | (127,441 | ) | |||||
Other | (125 | ) | (54 | ) | ||||
Net cash flows generated from (used in) financing activities | (7,904 | ) | (96,851 | ) | ||||
Net decrease in cash and cash equivalents | (4,288 | ) | (96,362 | ) | ||||
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For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Cash and cash equivalents at the beginning of year | 41,238 | 137,600 | ||||||
Cash and cash equivalents at the end of year | 36,950 | 41,238 | ||||||
45. | Scope of consolidation |
Country of | ||||||||||||
registration or | Voting | Ownership | ||||||||||
Company | incorporation | Industry | interest in % | interest in % | ||||||||
The Chuo Mitsui Trust and Banking Co., Ltd. | Japan | Trust and banking | 100.00 | % | 100.00 | % | ||||||
Chuo Mitsui Asset Trust and Banking Co., Ltd. | Japan | Trust and banking | 100.00 | % | 100.00 | % | ||||||
Chuo Mitsui Asset Management Co., Ltd. | Japan | Investment trust management | 100.00 | % | 100.00 | % | ||||||
Chuo Mitsui Capital Co., Ltd. | Japan | Private equity fund management | 100.00 | % | 100.00 | % | ||||||
Chuo Mitsui Guarantee Co., Ltd. | Japan | Credit guarantee services | 86.90 | % | 86.90 | % | ||||||
Chuo Mitsui Card Co., Ltd. | Japan | Credit card services | 93.90 | % | 93.90 | % | ||||||
Chuo Mitsui Realty Co., Ltd. | Japan | Real estate brokerage | 55.00 | % | 55.00 | % | ||||||
Chuo Mitsui Trust International, Ltd. | England | Securities business | 100.00 | % | 100.00 | % | ||||||
Chuo Mitsui Information Technology Co., Ltd. | Japan | Computer-related services | 100.00 | % | 100.00 | % | ||||||
CMTB Equity Investments Co., Ltd. | Japan | Investment, management and administration of stocks | 100.00 | % | 100.00 | % | ||||||
Chuo Mitsui Finance Service Co., Ltd. | Japan | Finance | 100.00 | % | 100.00 | % | ||||||
Tokyo Securities Transfer Agent Co., Ltd. | Japan | Stock transfer agency services | 100.00 | % | 100.00 | % | ||||||
Chuo Mitsui Trust Realty Company, Limited | Japan | Investment management | 100.00 | % | 100.00 | % |
46. | Securitization |
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For the year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Corporate loans | 5,100 | 16,532 |
At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | ||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||
carrying | Liabilities | carrying | Liabilities | carrying | Liabilities | |||||||||||||||||||
amount | associated | amount | associated | amount | associated | |||||||||||||||||||
(Millions of yen) | ||||||||||||||||||||||||
Housing loans | 505,709 | 350,602 | 586,531 | 438,167 | 702,900 | 558,892 | ||||||||||||||||||
Corporate loans | 10,596 | 10,620 | 10,780 | 10,827 | 10,965 | 11,034 | ||||||||||||||||||
Total | 516,305 | 361,222 | 597,311 | 448,994 | 713,865 | 569,926 | ||||||||||||||||||
47. | Contingencies |
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48. | Commitments, guarantee and other financial facilities |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Financial guarantees | 18,281 | 23,857 | 23,758 | |||||||||
Loan commitments and other credit-related obligations – individual | 119,982 | 123,568 | 126,233 | |||||||||
Loan commitments and other credit-related obligations – corporate | 732,655 | 658,923 | 635,554 | |||||||||
Total | 870,918 | 806,348 | 785,545 | |||||||||
(b) Commitments to invest in partnerships |
(c) Performance guarantees |
(d) Overdraft facilities |
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49. | Assets pledged as collateral and assets received as collateral |
At March 31, | At April 1, | |||||||||||
2010 | 2009 | 2008 | ||||||||||
(millions of yen) | ||||||||||||
Assets pledged as collateral | ||||||||||||
Financial assets held for trading other than derivatives | – | 20,133 | – | |||||||||
Investment securities | ||||||||||||
Equity securities | 118,946 | 102,025 | 101,989 | |||||||||
Debt securities | 1,409,012 | 2,064,079 | 994,286 | |||||||||
Loans and advances | 765,768 | 632,297 | 54,535 | |||||||||
Other | 70 | 70 | 70 | |||||||||
Total | 2,293,796 | 2,818,604 | 1,150,880 | |||||||||
At March 31, 2010 | At March 31, 2009 | At April 1, 2008 | ||||||||||
(Millions of yen) | ||||||||||||
Assets received as collateral | ||||||||||||
Equity securities | 3,520 | 10,706 | 48,163 | |||||||||
Debt securities | – | – | 53,100 | |||||||||
Total | 3,520 | 10,706 | 101,263 | |||||||||
50. | Related-party transactions |
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(a) Transaction with key management personnel and close family members |
At March 31, 2010 | At March 31, 2009 | |||||||
(Millions of yen) | ||||||||
Deposits | 879 | 569 | ||||||
Due to investors of trust accounts | 58 | 74 |
(b) Key management compensation |
For the fiscal year ended March 31 | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Salaries and other short-term employee benefits | 636 | 634 | ||||||
Post-employment benefits | 75 | 279 | ||||||
Total | 711 | 913 | ||||||
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(a) Loans and advances |
At March 31, 2010 | At March 31, 2009 | |||||||
(Millions of yen) | ||||||||
Balance at end of year | 6,788 | 6,716 |
(b) Deposits from Associated Companies |
At March 31, 2010 | At March 31, 2009 | |||||||
(Millions of yen) | ||||||||
Balance at end of year | 187 | 197 |
(c) Other transactions and balances |
At or for the fiscal year ended March 31, | ||||||||
2010 | 2009 | |||||||
(Millions of yen) | ||||||||
Income statement: | ||||||||
Fee and commission received for services rendered | 761 | 606 | ||||||
Fee and commission paid for services provided | (7,372 | ) | (7,394 | ) | ||||
Assets: | ||||||||
Other assets | 39 | 6 | ||||||
Liabilities: | ||||||||
Call money | 55,000 | 55,000 | ||||||
Other liabilities | 4,111 | 3,849 |
At March 31, 2010 | At March 31, 2009 | |||||||
(Millions of yen) | ||||||||
Loans and advances | 42,356 | 45,739 | ||||||
Financial stabilization fund contribution | 80,275 | 78,860 |
51. | Event after the reporting period |
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Note | March 31, 2010 | March 31, 2009 | April 1, 2008 | |||||||||||
ASSETS: | ||||||||||||||
Cash and deposits with banks | 7 | 1,027,819 | 668,184 | 1,011,741 | ||||||||||
Call loans | 112,455 | 29,819 | 156,067 | |||||||||||
Cash collateral on securities borrowed | – | 295,942 | 152,240 | |||||||||||
Financial assets held for trading (of which 49 billion yen, 272 billion yen, and 45 billion yen were pledged to creditors and can be sold or repledged as of March 31, 2010, March 31, 2009, and April 1, 2008, respectively) | 8 | 551,166 | 710,082 | 511,820 | ||||||||||
Derivative financial instruments | 9 | 3,130,994 | 4,027,339 | 2,274,952 | ||||||||||
Investment securities (of which 525 billion yen, 961 billion yen, and 866 billion yen were pledged to creditors and can be sold or repledged as of March 31, 2010, March 31, 2009, and April 1, 2008, respectively) | 10 | 3,949,512 | 4,790,073 | 4,748,483 | ||||||||||
Loans and advances | 11 | 13,780,823 | 13,494,699 | 13,364,868 | ||||||||||
Investment in associates and joint ventures | 13 | 48,399 | 33,847 | 36,809 | ||||||||||
Property and equipment | 14 | 151,081 | 153,013 | 149,471 | ||||||||||
Investment property | 15 | 66,028 | 72,045 | 49,109 | ||||||||||
Intangible assets | 16 | 158,329 | 86,544 | 100,457 | ||||||||||
Deferred tax assets | 25 | 80,548 | 212,645 | 65,860 | ||||||||||
Other assets | 17 | 385,015 | 386,497 | 242,085 | ||||||||||
Total assets | 23,442,169 | 24,960,729 | 22,863,962 | |||||||||||
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Note | March 31, 2010 | March 31, 2009 | April 1, 2008 | |||||||||||
LIABILITIES: | ||||||||||||||
Deposits | 18 | 14,585,719 | 14,170,297 | 14,304,074 | ||||||||||
Call money | 79,519 | 133,182 | 140,153 | |||||||||||
Cash collateral on securities lent and repurchase agreements | 19 | 601,787 | 1,236,776 | 922,546 | ||||||||||
Financial liabilities held for trading | 20 | 7,386 | 2,792 | 8,574 | ||||||||||
Derivative financial instruments | 9 | 2,827,439 | 3,751,432 | 1,988,715 | ||||||||||
Due to trust accounts | 21 | 83,337 | 77,578 | 120,170 | ||||||||||
Principal guaranteed trust certificates | 22 | 655,047 | 762,484 | 961,133 | ||||||||||
Debt securities issued | 23 | 1,186,808 | 1,465,823 | 1,729,983 | ||||||||||
Borrowed funds | 24 | 1,383,207 | 1,540,360 | 938,303 | ||||||||||
Current tax payable | 8,169 | 9,294 | 42,392 | |||||||||||
Deferred tax liabilities | 25 | 17,669 | 4,434 | 8,286 | ||||||||||
Retirement benefit obligations | 26 | 9,204 | 8,632 | 9,659 | ||||||||||
Other liabilities | 28 | 555,410 | 556,440 | 419,089 | ||||||||||
Total liabilities | 22,000,701 | 23,719,524 | 21,593,077 | |||||||||||
EQUITY: | ||||||||||||||
Equity attributable to equity holders of the Sumitomo Trust | ||||||||||||||
Share capital | 29 | 342,037 | 287,537 | 287,537 | ||||||||||
Capital surplus | 29 | 297,052 | 242,556 | 242,556 | ||||||||||
Retained earnings | 429,096 | 370,988 | 392,591 | |||||||||||
Other reserves | 30 | 70,905 | (53,369 | ) | 133,524 | |||||||||
Treasury shares | 29 | (465 | ) | (454 | ) | (441 | ) | |||||||
Total equity attributable to equity holders of the Sumitomo Trust | 1,138,625 | 847,258 | 1,055,767 | |||||||||||
Minority interest | 302,843 | 393,947 | 215,118 | |||||||||||
Total equity | 1,441,468 | 1,241,205 | 1,270,885 | |||||||||||
Total liabilities and equity | 23,442,169 | 24,960,729 | 22,863,962 | |||||||||||
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Year ended | ||||||||||
Note | March 31, 2010 | March 31, 2009 | ||||||||
Interest income | 33 | 293,994 | 391,948 | |||||||
Interest expenses | 33 | 107,893 | 195,744 | |||||||
Net interest income | 33 | 186,101 | 196,204 | |||||||
Provision for credit losses | 34 | 27,729 | 97,105 | |||||||
Net interest income after provision for credit losses | 158,372 | 99,099 | ||||||||
Fee and commission income | 35 | 147,929 | 146,360 | |||||||
Fee and commission expenses | 35 | 26,321 | 26,579 | |||||||
Net fee and commission income | 35 | 121,608 | 119,781 | |||||||
Net gains (losses) on financial instruments held for trading | 36 | 83,508 | (56,293 | ) | ||||||
Net other operating income | 37 | 35,067 | 222,946 | |||||||
Other income | 118,575 | 166,653 | ||||||||
Total income | 398,555 | 385,533 | ||||||||
Impairment losses on investment securities | 38 | 16,595 | 113,423 | |||||||
General and administration expenses | 39 | 201,476 | 193,172 | |||||||
Other expenses | 40 | 35,202 | 39,444 | |||||||
Operating expenses | 253,273 | 346,039 | ||||||||
Share of gains of associates and joint ventures | 13 | 1,436 | 2,285 | |||||||
Profit before income tax expenses | 146,718 | 41,779 | ||||||||
Income tax expenses | 25 | 64,604 | 26,499 | |||||||
Net profit | 82,114 | 15,280 | ||||||||
Net profit attributable to: | ||||||||||
Equity holders of the Sumitomo Trust | 69,334 | 6,891 | ||||||||
Minority interest | 12,780 | 8,389 | ||||||||
Net profit | 82,114 | 15,280 | ||||||||
Earnings per share (in yen) | ||||||||||
Basic | 41 | 41.2 | 4.1 | |||||||
Diluted | 41 | 41.2 | 4.1 | |||||||
Number of shares (in thousands) | ||||||||||
Denominator for basic and diluted earnings per share – weighted-average shares outstanding | 41 | 1,674,588 | 1,674,616 |
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Year ended | ||||||||||
Note | March 31, 2010 | March 31, 2009 | ||||||||
Net profit | 82,114 | 15,280 | ||||||||
Other comprehensive income (losses): | ||||||||||
Net gains (losses) onavailable-for-sale financial assets | 30 | 212,485 | (303,312 | ) | ||||||
Unwinding of cash flow hedges transferred to profit or loss | 30 | (3,375 | ) | (3,693 | ) | |||||
Foreign currency translation differences for foreign operations | 30 | (420 | ) | (6,752 | ) | |||||
Share of other comprehensive income (losses) of associates and joint ventures | 30 | 300 | (4,668 | ) | ||||||
Income tax (expenses) benefits relating to components of other comprehensive income | 25 | (84,457 | ) | 131,384 | ||||||
Other comprehensive income (losses), net of tax | 124,533 | (187,041 | ) | |||||||
Total comprehensive income (losses) | 206,647 | (171,761 | ) | |||||||
Total comprehensive income (losses) attributable to: | ||||||||||
Equity holders of the Sumitomo Trust | 193,608 | (180,002 | ) | |||||||
Minority interest | 13,039 | 8,241 | ||||||||
Total comprehensive income (losses) | 206,647 | (171,761 | ) | |||||||
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Attributable to equity holders of the Sumitomo Trust | ||||||||||||||||||||||||||||||||
Total equity | ||||||||||||||||||||||||||||||||
attributable | ||||||||||||||||||||||||||||||||
to equity | ||||||||||||||||||||||||||||||||
holders of | ||||||||||||||||||||||||||||||||
the | ||||||||||||||||||||||||||||||||
Share | Capital | Retained | Other | Treasury | Sumitomo | Minority | ||||||||||||||||||||||||||
capital | surplus | earnings | reserves | shares | Trust | interest | Total equity | |||||||||||||||||||||||||
Balance as of April 1, 2008 | 287,537 | 242,556 | 392,591 | 133,524 | (441 | ) | 1,055,767 | 215,118 | 1,270,885 | |||||||||||||||||||||||
Comprehensive income (losses): | ||||||||||||||||||||||||||||||||
Net profit | – | – | 6,891 | – | – | 6,891 | 8,389 | 15,280 | ||||||||||||||||||||||||
Other comprehensive income (losses), net of tax: | ||||||||||||||||||||||||||||||||
Available-for-sale financial assets | – | – | – | (178,348 | ) | – | (178,348 | ) | (33 | ) | (178,381 | ) | ||||||||||||||||||||
Cash flow hedges transferred to profit or loss | – | – | – | (2,193 | ) | – | (2,193 | ) | – | (2,193 | ) | |||||||||||||||||||||
Foreign currency translation differences for foreign operations | – | – | – | (1,684 | ) | – | (1,684 | ) | (115 | ) | (1,799 | ) | ||||||||||||||||||||
Share of other comprehensive losses of associates and joint ventures | – | – | – | (4,668 | ) | – | (4,668 | ) | – | (4,668 | ) | |||||||||||||||||||||
Total other comprehensive income (losses) | – | – | – | (186,893 | ) | – | (186,893 | ) | (148 | ) | (187,041 | ) | ||||||||||||||||||||
Total comprehensive income (losses) | – | – | 6,891 | (186,893 | ) | – | (180,002 | ) | 8,241 | (171,761 | ) | |||||||||||||||||||||
Transactions with owners, recorded directly in equity: | ||||||||||||||||||||||||||||||||
Issuance of preference shares by subsidiaries to third party investors (Note 45) | – | – | – | – | – | – | 180,002 | 180,002 | ||||||||||||||||||||||||
Decrease in minority interests | – | – | – | – | – | – | (10 | ) | (10 | ) | ||||||||||||||||||||||
Purchases of treasury shares | – | – | – | – | (67 | ) | (67 | ) | – | (67 | ) | |||||||||||||||||||||
Sales of treasury shares | – | (0 | ) | (25 | ) | – | 54 | 29 | – | 29 | ||||||||||||||||||||||
Dividends | – | – | (28,469 | ) | – | – | (28,469 | ) | (9,404 | ) | (37,873 | ) | ||||||||||||||||||||
Total transactions with owners | – | (0 | ) | (28,494 | ) | – | (13 | ) | (28,507 | ) | 170,588 | 142,081 | ||||||||||||||||||||
Balance as of March 31, 2009 | 287,537 | 242,556 | 370,988 | (53,369 | ) | (454 | ) | 847,258 | 393,947 | 1,241,205 | ||||||||||||||||||||||
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Attributable to equity holders of the Sumitomo Trust | ||||||||||||||||||||||||||||||||
Total equity | ||||||||||||||||||||||||||||||||
attributable | ||||||||||||||||||||||||||||||||
to equity | ||||||||||||||||||||||||||||||||
holders of | ||||||||||||||||||||||||||||||||
the | ||||||||||||||||||||||||||||||||
Share | Capital | Retained | Other | Treasury | Sumitomo | Minority | ||||||||||||||||||||||||||
capital | surplus | earnings | reserves | shares | Trust | interest | Total equity | |||||||||||||||||||||||||
Balance as of April 1, 2009 | 287,537 | 242,556 | 370,988 | (53,369 | ) | (454 | ) | 847,258 | 393,947 | 1,241,205 | ||||||||||||||||||||||
Comprehensive income (losses): | ||||||||||||||||||||||||||||||||
Net profit | – | – | 69,334 | – | – | 69,334 | 12,780 | 82,114 | ||||||||||||||||||||||||
Other comprehensive income (losses), net of tax: | ||||||||||||||||||||||||||||||||
Available-for-sale financial assets | – | – | – | 126,309 | – | 126,309 | 262 | 126,571 | ||||||||||||||||||||||||
Cash flow hedges transferred to profit or loss | – | – | – | (2,002 | ) | – | (2,002 | ) | – | (2,002 | ) | |||||||||||||||||||||
Foreign currency translation differences for foreign operations | – | – | – | (333 | ) | – | (333 | ) | (3 | ) | (336 | ) | ||||||||||||||||||||
Share of other comprehensive losses of associates and joint ventures | – | – | – | 300 | – | 300 | – | 300 | ||||||||||||||||||||||||
Total other comprehensive income (losses) | – | – | – | 124,274 | – | 124,274 | 259 | 124,533 | ||||||||||||||||||||||||
Total comprehensive income (losses) | – | – | 69,334 | 124,274 | – | 193,608 | 13,039 | 206,647 | ||||||||||||||||||||||||
Transactions with owners, recorded directly in equity: | ||||||||||||||||||||||||||||||||
Issuance of non-cumulative preference shares | 54,500 | 54,500 | – | – | – | 109,000 | – | 109,000 | ||||||||||||||||||||||||
Increase in minority interests on capital issuances | – | – | – | – | – | – | 56 | 56 | ||||||||||||||||||||||||
Redemption of preference shares issued by certain subsidiaries upon their liquidation | – | – | – | – | – | – | (83,076 | ) | (83,076 | ) | ||||||||||||||||||||||
Net decrease in minority interests on acquisition of investments in subsidiaries | – | – | – | – | – | – | (8,393 | ) | (8,393 | ) | ||||||||||||||||||||||
Purchases of treasury shares | – | – | – | – | (18 | ) | (18 | ) | – | (18 | ) | |||||||||||||||||||||
Sales of treasury shares | – | (4 | ) | – | – | 7 | 3 | – | 3 | |||||||||||||||||||||||
Dividends | – | – | (11,226 | ) | – | – | (11,226 | ) | (12,730 | ) | (23,956 | ) | ||||||||||||||||||||
Total transactions with owners | 54,500 | 54,496 | (11,226 | ) | – | (11 | ) | 97,759 | (104,143 | ) | (6,384 | ) | ||||||||||||||||||||
Balance as of March 31, 2010 | 342,037 | 297,052 | 429,096 | 70,905 | (465 | ) | 1,138,625 | 302,843 | 1,441,468 | |||||||||||||||||||||||
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Year ended | ||||||||||
Note | March 31, 2010 | March 31, 2009 | ||||||||
Cash flows from operating activities | ||||||||||
Profit before income tax expenses | 146,718 | 41,779 | ||||||||
Adjustment for non-cash items: | ||||||||||
Depreciation and amortization | 14,15,16 | 25,614 | 24,748 | |||||||
Impairment of property and equipment, investment property and intangible assets | 14,15,16 | 14,845 | 17,306 | |||||||
Provision for credit losses | 34 | 27,729 | 97,105 | |||||||
Net losses (gains) on investment securities | 23,157 | (4,422 | ) | |||||||
Share of gains of associates and joint ventures | 13 | (1,436 | ) | (2,285 | ) | |||||
Foreign currency losses | 77,920 | 212,758 | ||||||||
Interest and dividend income | (328,965 | ) | (440,062 | ) | ||||||
Interest expenses | 107,893 | 218,058 | ||||||||
Subtotal | (53,243 | ) | 123,206 | |||||||
Change in operating assets and liabilities | ||||||||||
Net (increase) decrease in deposits with banks | (209,220 | ) | 280,024 | |||||||
Net (increase) decrease in call loans | (81,673 | ) | 124,091 | |||||||
Net decrease (increase) in cash collateral on securities borrowed | 296,205 | (144,942 | ) | |||||||
Net decrease (increase) in financial assets held for trading | 207,770 | (181,320 | ) | |||||||
Net increase in loans and advances | (417,913 | ) | (516,351 | ) | ||||||
Net (increase) decrease in net derivative financial instruments | (25,681 | ) | 11,356 | |||||||
Net increase (decrease) in deposits | 417,226 | (121,884 | ) | |||||||
Net decrease in call money | (50,070 | ) | (8,162 | ) | ||||||
Net (decrease) increase in cash collateral on securities lent and repurchase agreements | (634,989 | ) | 314,230 | |||||||
Net increase (decrease) in financial liabilities held for trading | 4,720 | (5,765 | ) | |||||||
Net increase (decrease) in due to trust accounts | 5,759 | (42,592 | ) | |||||||
Net decrease in principal guaranteed trust certificates | (107,437 | ) | (198,649 | ) | ||||||
Net decrease in debt securities issued | (166,475 | ) | (31,331 | ) | ||||||
Net (decrease) increase in borrowed funds | (132,555 | ) | 684,642 | |||||||
Net increase in prepaid pension expenses and decrease in retirement benefit obligations | (4,059 | ) | (50,004 | ) | ||||||
Others, net | 15,778 | 12,383 | ||||||||
Subtotal | (882,614 | ) | 125,726 | |||||||
Interest and dividend received | 326,249 | 457,879 | ||||||||
Interest paid | (97,634 | ) | (207,112 | ) | ||||||
Tax paid | (25,292 | ) | (75,892 | ) | ||||||
Net cash (used in) generated from operating activities | (585,816 | ) | 465,586 | |||||||
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Year ended | ||||||||||
Note | March 31, 2010 | March 31, 2009 | ||||||||
Cash flows from investing activities | ||||||||||
Purchase of investment securities | (3,018,869 | ) | (10,151,698 | ) | ||||||
Proceeds from sale or redemption of investment securities | 3,952,943 | 9,584,473 | ||||||||
Purchase of property and equipment | (9,459 | ) | (15,985 | ) | ||||||
Proceeds from sale of property and equipment | 2,511 | 4,256 | ||||||||
Purchase of investment property | (2 | ) | (28,374 | ) | ||||||
Proceeds from sale of investment property | 1,849 | 4,159 | ||||||||
Purchase of intangible assets | (10,659 | ) | (15,072 | ) | ||||||
Acquisition of subsidiaries, net of cash acquired | 42 | (160,320 | ) | (27,000 | ) | |||||
Disposal of subsidiaries, net of cash disposed | 42 | 49,090 | 47,915 | |||||||
Purchase of additional interests in subsidiaries from minority shareholders | (8,478 | ) | – | |||||||
Others, net | (96 | ) | (69 | ) | ||||||
Net cash generated from (used in) investing activities | 798,510 | (597,395 | ) | |||||||
Cash flows from financing activities | ||||||||||
Dividends paid | (11,231 | ) | (28,473 | ) | ||||||
Dividends paid to minority interest | (12,730 | ) | (9,482 | ) | ||||||
Proceeds from issuance of preference shares by the Sumitomo Trust | 108,568 | – | ||||||||
Proceeds from issuance of subordinated borrowed funds and debt securities | 78,704 | 89,500 | ||||||||
Repayments of subordinated borrowed funds and debt securities | (122,162 | ) | (76,900 | ) | ||||||
Proceeds from issuance of preference shares by subsidiaries to third-party investors | 56 | 180,002 | ||||||||
Redemption of preference shares issued by certain subsidiaries upon their liquidation | (83,076 | ) | – | |||||||
Others, net | (15 | ) | (38 | ) | ||||||
Net cash (used in) generated from financing activities | (41,886 | ) | 154,609 | |||||||
Effect of exchange rates on cash and cash equivalents | 370 | (12,300 | ) | |||||||
Net increase in cash and cash equivalents | 171,178 | 10,500 | ||||||||
Cash and cash equivalents at beginning of the year | 7 | 453,138 | 442,638 | |||||||
Cash and cash equivalents at end of the year | 7 | 624,316 | 453,138 | |||||||
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1. | General information |
2. | Summary of significant accounting policies |
• | Financial assets and liabilities (including derivative instruments) classified as held for trading oravailable-for-sale are measured at fair value. | |
• | The liability for defined benefit obligations is recognized as the present value of the defined benefit obligation less the fair value of the plan assets, plus unrecognized actuarial gains, less unrecognized past service cost and unrecognized actuarial losses. |
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F-162
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• | All financial assets that are currently in the scope of IAS 39 will be classified as either amortized cost or fair value. Theavailable-for-sale andheld-to-maturity categories will no longer exist. | |
• | Classification is based on an entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. Reclassifications between the two categories are prohibited unless there is a change in the entity’s business model. | |
• | A financial asset is measured at amortized cost if two criteria are met: (i) the objective of the business model is to hold the financial asset for the collection of the contractual cash flows, and (ii) the contractual cash flows of the instrument are solely payments of principal and interest on the principal outstanding. All other financial assets are measured at fair value. Movements in the fair value of financial assets classified at fair value are recognized in profit or loss, except for equity investments where an entity takes the option to designate an equity instrument that is not held for trading at fair value through other comprehensive income. If this option is taken, all subsequent changes in fair value are recognized in other comprehensive income with no recycling of gains or losses to the income statement. Dividend income would continue to be recognized in the income statement. | |
• | An entity is only permitted to designate a financial asset otherwise meeting the amortized cost criteria at fair value through profit or loss if doing so significantly reduces or eliminates an accounting mismatch. This designation is made on initial recognition and is irrevocable. | |
• | Financial instruments which contain embedded derivatives are to be classified in their entirety either at fair value or amortized cost depending on whether the contracts as a whole meet the relevant criteria under IFRS 9. |
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• | the activities of the SPE are being conducted on STB’s behalf according to its specific business needs so that STB obtains the benefits from the SPE’s operations; | |
• | STB has the decision-making power to obtain the majority of the benefits of the activities of the SPE, or STB has delegated such decision-making power by setting up an “autopilot” mechanism; | |
• | STB has the rights to obtain the majority of the benefits of the activities of the SPE and therefore may be exposed to risks incident to the activities of the SPE; or |
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• | STB retains the majority of the residual or ownership risks related to the SPE or its assets in order to obtain the benefits from its activities. |
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• | Assets and liabilities of each Group entity, including goodwill and fair value adjustments arising on acquisition, are translated to Japanese Yen using the closing rate at the reporting date; | |
• | Income and expenses of each Group entity are translated into Japanese Yen using average exchange rate (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the exchange rates prevailing on the dates of the transactions); and | |
• | All resulting exchange differences are recognized in Other comprehensive income. |
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• | those that STB upon initial recognition designates as at fair value through profit or loss; | |
• | those that STB designates asavailable-for-sale; and | |
• | those that meet the definition of loans and receivables. |
• | sales or reclassifications that are so close to maturity that changes in the market rate of interest would not have a significant effect on the financial asset’s fair value; | |
• | sales or reclassifications after STB has collected substantially all of the asset’s original principal; or | |
• | sales or reclassifications attributable to non-recurring isolated events beyond STB’s control that could not have been reasonably anticipated. |
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Buildings: | 20 to 50 years | |
Equipment and motor vehicles: | 2 to 20 years | |
Leasehold improvements: | Shorter of the term of the lease and the estimated useful lives of the improvement, which generally ranges from 2 to 20 years. |
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• | significant financial difficulty of the issuer or obligor; | |
• | a breach of contract, such as a default or delinquency in interest or principal payments; | |
• | the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the lender would not otherwise consider; | |
• | the probability that the borrower may become bankrupt or financially reorganized; | |
• | the disappearance of an active market for that financial asset because of financial difficulties; or | |
• | observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the portfolio, including adverse changes in the payment status of borrowers in the portfolio; and national or local economic conditions that correlate with defaults on the assets in the portfolio. |
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3. | First time adoption |
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Effect of transition | ||||||||||||||
Note | Japanese GAAP | to IFRS | IFRS | |||||||||||
ASSETS: | ||||||||||||||
(a) | Cash and deposits with banks | 898,509 | 113,232 | 1,011,741 | ||||||||||
(a) | Call loans | 140,781 | 15,286 | 156,067 | ||||||||||
Cash collateral on securities borrowed | 152,240 | — | 152,240 | |||||||||||
(a) | Financial assets held for trading | 619,511 | (107,691 | ) | 511,820 | |||||||||
(a)(b) | Derivative financial instruments | 2,260,926 | 14,026 | 2,274,952 | ||||||||||
(a)(b) | Investment securities | 4,901,687 | (153,204 | ) | 4,748,483 | |||||||||
(a)(b)(f) | Loans and advances | 11,238,509 | 2,126,359 | 13,364,868 | ||||||||||
(a)(b) | Investment in associates and joint ventures | 30,082 | 6,727 | 36,809 | ||||||||||
(a)(c)(f) | Property and equipment | 903,187 | (753,716 | ) | 149,471 | |||||||||
(a)(c)(f) | Investment property | 3,466 | 45,643 | 49,109 | ||||||||||
(d) | Intangible assets | 147,247 | (46,790 | ) | 100,457 | |||||||||
(g) | Deferred tax assets | 83,051 | (17,191 | ) | 65,860 | |||||||||
(a)(b)(e) | Other assets | 312,673 | (70,588 | ) | 242,085 | |||||||||
Total assets | 21,691,869 | 1,172,093 | 22,863,962 | |||||||||||
LIABILITIES: | ||||||||||||||
(a)(b) | Deposits | 14,332,444 | (28,370 | ) | 14,304,074 | |||||||||
Call money | 140,153 | — | 140,153 | |||||||||||
Cash collateral on securities lent and repurchase agreements | 922,546 | — | 922,546 | |||||||||||
(a) | Financial liabilities held for trading | — | 8,574 | 8,574 | ||||||||||
(a)(b) | Derivative financial instruments | 1,958,713 | 30,002 | 1,988,715 | ||||||||||
(a) | Due to trust accounts | 747,555 | (627,385 | ) | 120,170 | |||||||||
(a) | Principal guaranteed trust certificates | — | 961,133 | 961,133 | ||||||||||
(a) | Debt securities issued | 955,614 | 774,369 | 1,729,983 | ||||||||||
(a) | Borrowed funds | 883,039 | 55,264 | 938,303 | ||||||||||
(a) | Current tax payable | 42,425 | (33 | ) | 42,392 | |||||||||
(a)(g) | Deferred tax liabilities | 6,220 | 2,066 | 8,286 | ||||||||||
(e) | Retirement benefit obligations | 9,636 | 23 | 9,659 | ||||||||||
(a)(b) | Other liabilities | 412,570 | 6,519 | 419,089 | ||||||||||
Total liabilities | 20,410,915 | 1,182,162 | 21,593,077 | |||||||||||
F-185
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Effect of transition | ||||||||||||||
Note | Japanese GAAP | to IFRS | IFRS | |||||||||||
EQUITY: | ||||||||||||||
Equity attributable to equity holders of the Sumitomo Trust | ||||||||||||||
Share capital | 287,537 | — | 287,537 | |||||||||||
Capital surplus | 242,556 | — | 242,556 | |||||||||||
Retained earnings | 483,686 | (91,095 | ) | 392,591 | ||||||||||
Other reserves | ||||||||||||||
(h) | Foreign currency translation reserve | (4,729 | ) | 4,729 | — | |||||||||
(a)(b) | Cash flow hedging reserve | 1,107 | 2,599 | 3,706 | ||||||||||
(a)(b) | Net gains (losses) onavailable-for-sale financial assets | 65,958 | 63,860 | 129,818 | ||||||||||
(c) | Land revaluation reserve | (4,306 | ) | 4,306 | — | |||||||||
Treasury shares | (441 | ) | — | (441 | ) | |||||||||
Total equity attributable to equity holders of the Sumitomo Trust | 1,071,368 | (15,601 | ) | 1,055,767 | ||||||||||
Minority interest | 209,586 | 5,532 | 215,118 | |||||||||||
Total equity | 1,280,954 | (10,069 | ) | 1,270,885 | ||||||||||
Total liabilities and equity | 21,691,869 | 1,172,093 | 22,863,962 | |||||||||||
F-186
Table of Contents
Effect of transition | ||||||||||||||
Note | Japanese GAAP | to IFRS | IFRS | |||||||||||
ASSETS: | ||||||||||||||
(a) | Cash and deposits with banks | 616,541 | 51,643 | 668,184 | ||||||||||
(a) | Call loans | 9,597 | 20,222 | 29,819 | ||||||||||
Cash collateral on securities borrowed | 295,942 | — | 295,942 | |||||||||||
(a) | Financial assets held for trading | 735,197 | (25,115 | ) | 710,082 | |||||||||
(a)(b) | Derivative financial instruments | 889,746 | 3,137,593 | 4,027,339 | ||||||||||
(a)(b) | Investment securities | 4,976,522 | (186,449 | ) | 4,790,073 | |||||||||
(a)(b)(f) | Loans and advances | 12,310,540 | 1,184,159 | 13,494,699 | ||||||||||
(a)(b) | Investment in associates and joint ventures | 26,711 | 7,136 | 33,847 | ||||||||||
(a)(c)(f) | Property and equipment | 255,950 | (102,937 | ) | 153,013 | |||||||||
(a)(c)(f) | Investment property | 3,239 | 68,806 | 72,045 | ||||||||||
(d) | Intangible assets | 142,407 | (55,863 | ) | 86,544 | |||||||||
(g) | Deferred tax assets | 207,741 | 4,904 | 212,645 | ||||||||||
(a)(b)(e) | Other assets | 437,052 | (50,555 | ) | 386,497 | |||||||||
Total assets | 20,907,185 | 4,053,544 | 24,960,729 | |||||||||||
LIABILITIES: | ||||||||||||||
(a)(b) | Deposits | 14,213,057 | (42,760 | ) | 14,170,297 | |||||||||
Call money | 133,182 | — | 133,182 | |||||||||||
Cash collateral on securities lent and repurchase agreements | 1,236,776 | — | 1,236,776 | |||||||||||
(a) | Financial liabilities held for trading | — | 2,792 | 2,792 | ||||||||||
(a)(b) | Derivative financial instruments | 591,479 | 3,159,953 | 3,751,432 | ||||||||||
(a) | Due to trust accounts | 547,116 | (469,538 | ) | 77,578 | |||||||||
(a) | Principal guaranteed trust certificates | — | 762,484 | 762,484 | ||||||||||
(a) | Debt securities issued | 890,184 | 575,639 | 1,465,823 | ||||||||||
(a) | Borrowed funds | 1,460,149 | 80,211 | 1,540,360 | ||||||||||
(a) | Current tax payable | 9,294 | — | 9,294 | ||||||||||
(a)(g) | Deferred tax liabilities | 5,912 | (1,478 | ) | 4,434 | |||||||||
(e) | Retirement benefit obligations | 8,538 | 94 | 8,632 | ||||||||||
(a)(b) | Other liabilities | 547,446 | 8,994 | 556,440 | ||||||||||
Total liabilities | 19,643,133 | 4,076,391 | 23,719,524 | |||||||||||
EQUITY: | ||||||||||||||
Equity attributable to equity holders of the Sumitomo Trust | ||||||||||||||
Share capital | 287,537 | — | 287,537 | |||||||||||
Capital surplus | 242,556 | — | 242,556 | |||||||||||
Retained earnings | 463,347 | (92,359 | ) | 370,988 | ||||||||||
Other reserves | ||||||||||||||
(h) | Foreign currency translation reserve | (10,111 | ) | 8,427 | (1,684 | ) | ||||||||
(a)(b) | Cash flow hedging reserve | (2,209 | ) | 3,722 | 1,513 |
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Effect of transition | ||||||||||||||
Note | Japanese GAAP | to IFRS | IFRS | |||||||||||
(a)(b) | Net gains (losses) onavailable-for-sale financial assets | (102,248 | ) | 49,050 | (53,198 | ) | ||||||||
(c) | Land revaluation reserve | (4,512 | ) | 4,512 | — | |||||||||
Treasury shares | (454 | ) | — | (454 | ) | |||||||||
Total equity attributable to equity holders of the Sumitomo Trust | 873,906 | (26,648 | ) | 847,258 | ||||||||||
Minority interest | 390,146 | 3,801 | 393,947 | |||||||||||
Total equity | 1,264,052 | (22,847 | ) | 1,241,205 | ||||||||||
Total liabilities and equity | 20,907,185 | 4,053,544 | 24,960,729 | |||||||||||
F-188
Table of Contents
Note | March 31, 2009 | April 1, 2008 | ||||||||||
Japanese GAAP | 1,264,052 | 1,280,954 | ||||||||||
(a) | Scope of consolidation | 9,575 | 16,463 | |||||||||
(b) | Financial instruments | |||||||||||
(i) | Classification of financial instruments | 10,543 | 4,288 | |||||||||
(ii) | Impairment ofavailable-for-sale investment securities | (24,193 | ) | (13,866 | ) | |||||||
(iii) | Fair value adjustments to investment securities | 7,755 | 35,801 | |||||||||
(iv) | Embedded derivatives | 7,859 | 4,460 | |||||||||
(v) | Hedge accounting | (252 | ) | (4,240 | ) | |||||||
(vi) | Allowance for loan losses | 56,969 | 56,592 | |||||||||
(vii) | Effective interest method of loans and advances | (15,825 | ) | (15,780 | ) | |||||||
(viii) | Fair value of derivatives | (812 | ) | (1,034 | ) | |||||||
(c) | Property and equipment and investment property | 2,094 | 276 | |||||||||
(d) | Intangible assets | |||||||||||
(i) | Software costs | 3,277 | 3,798 | |||||||||
(ii) | Goodwill | (59,154 | ) | (50,595 | ) | |||||||
(e) | Retirement benefit obligations | (50,130 | ) | (59,781 | ) | |||||||
(f) | Lease reclassification | 22,110 | 31,772 | |||||||||
Others | (2,968 | ) | (571 | ) | ||||||||
(g) | Tax effect of the above | (10,780 | ) | (23,498 | ) | |||||||
(g) | Income taxes | 21,085 | 5,846 | |||||||||
IFRS | 1,241,205 | 1,270,885 | ||||||||||
F-189
Table of Contents
Effect of | ||||||||||||||
transition to | ||||||||||||||
Note | Japanese GAAP | IFRS | IFRS | |||||||||||
(a)(b)(f)(h) | Interest income | 364,343 | 27,605 | 391,948 | ||||||||||
(a)(b)(h) | Interest expenses | 178,681 | 17,063 | 195,744 | ||||||||||
Net interest income | 185,662 | 10,542 | 196,204 | |||||||||||
(b)(h) | Provision for credit losses | 97,788 | (683 | ) | 97,105 | |||||||||
Net interest income after provision for credit losses | 87,874 | 11,225 | 99,099 | |||||||||||
(b)(h) | Fee and commission income | 167,461 | (21,101 | ) | 146,360 | |||||||||
(b)(h) | Fee and commission expenses | 27,351 | (772 | ) | 26,579 | |||||||||
Net fee and commission income | 140,110 | (20,329 | ) | 119,781 | ||||||||||
(a)(b)(h) | Net losses on financial instruments held for trading | (69,290 | ) | 12,997 | (56,293 | ) | ||||||||
(a)(b)(c)(h) | Net other operating income | 230,819 | (7,873 | ) | 222,946 | |||||||||
Other income | 161,529 | 5,124 | 166,653 | |||||||||||
Total income | 389,513 | (3,980 | ) | 385,533 | ||||||||||
(a)(b)(h) | Impairment losses on investment securities | 111,990 | 1,433 | 113,423 | ||||||||||
(a)(c)(d)(e)(f)(g)(h) | General and administration expenses | 201,959 | (8,787 | ) | 193,172 | |||||||||
(a)(b)(c)(d)(f)(h) | Other expenses | 19,876 | 19,568 | 39,444 | ||||||||||
Operating expenses | 333,825 | 12,214 | 346,039 | |||||||||||
(a)(b) | Share of (losses) gains of associates and joint ventures | (2,122 | ) | 4,407 | 2,285 | |||||||||
Profit before income tax expenses | 53,566 | (11,787 | ) | 41,779 | ||||||||||
(g)(h) | Income tax expenses | 35,398 | (8,899 | ) | 26,499 | |||||||||
Net profit | 18,168 | (2,888 | ) | 15,280 | ||||||||||
Other comprehensive income (losses) | ||||||||||||||
(a)(b) | Net losses onavailable-for-sale financial assets | (276,768 | )(1) | (26,544 | ) | (303,312 | ) | |||||||
(a)(b) | Unwinding of cash flow hedges transferred to profit or loss | (5,677 | )(1) | 1,984 | (3,693 | ) | ||||||||
(h) | Foreign currency translation differences for foreign operations | (5,494 | )(1) | (1,258 | ) | (6,752 | ) | |||||||
Share of other comprehensive loss of associates and joint ventures | (3,670 | )(1) | (998 | ) | (4,668 | ) | ||||||||
Income tax benefits relating to components of other comprehensive income | 114,560 | (1) | 16,824 | 131,384 | ||||||||||
Other comprehensive losses, net of tax | (177,049 | ) | (9,992 | ) | (187,041 | ) | ||||||||
Total comprehensive losses | (158,881 | ) | (12,880 | ) | (171,761 | ) | ||||||||
F-190
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(1) | Under Japanese GAAP, “Other comprehensive income” is not required to be disclosed in the Statement of comprehensive income. However, for the purpose of reconciliation between Japanese GAAP and IFRS, the “Other comprehensive income” for applicable items have been extracted and disclosed above. |
Other comprehensive | Comprehensive | |||||||||||||||
Note | Net profit | income (losses) | income (losses) | |||||||||||||
Japanese GAAP | 18,168 | (177,049 | ) | (158,881 | ) | |||||||||||
(a) | Scope of consolidation | (6,466 | ) | (506 | ) | (6,972 | ) | |||||||||
(b) | Financial instruments | |||||||||||||||
(i) | Classification of financial instruments | — | 6,255 | 6,255 | ||||||||||||
(ii) | Impairment ofavailable-for-sale investment securities | 532 | (10,859 | ) | (10,327 | ) | ||||||||||
(iii) | Fair value adjustments to investment securities | — | (28,046 | ) | (28,046 | ) | ||||||||||
(iv) | Embedded derivatives | 1,153 | 2,246 | 3,399 | ||||||||||||
(v) | Hedge accounting | 194 | 3,794 | 3,988 | ||||||||||||
(vi) | Allowance for loan losses | 377 | — | 377 | ||||||||||||
(vii) | Effective interest method of loans and advances | (45 | ) | — | (45 | ) | ||||||||||
(viii) | Fair value of derivatives | 222 | — | 222 | ||||||||||||
(c) | Property and equipment and investment property | 1,553 | 265 | 1,818 | ||||||||||||
(d) | Intangible assets | |||||||||||||||
(i) | Software costs | (521 | ) | — | (521 | ) | ||||||||||
(ii) | Goodwill | (8,559 | ) | — | (8,559 | ) | ||||||||||
(e) | Retirement benefit obligations | 9,651 | — | 9,651 | ||||||||||||
(f) | Lease reclassification | (9,662 | ) | — | (9,662 | ) | ||||||||||
(h) | Foreign operations | 1,442 | (1,442 | ) | — | |||||||||||
Others | (2,398 | ) | 1 | (2,397 | ) | |||||||||||
(g) | Tax effects of the above | (2,973 | ) | 15,673 | 12,700 | |||||||||||
(g) | Income taxes | 12,612 | 2,627 | 15,239 | ||||||||||||
IFRS | 15,280 | (187,041 | ) | (171,761 | ) | |||||||||||
F-191
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F-192
Table of Contents
F-193
Table of Contents
(iii) | Fair value adjustments to investment securities |
F-194
Table of Contents
F-195
Table of Contents
F-196
Table of Contents
F-197
Table of Contents
F-198
Table of Contents
F-199
Table of Contents
4. | Financial risk management |
F-200
Table of Contents
F-201
Table of Contents
• | the measurement of credit risk amounts; | |
• | the monitoring of credit portfolios; | |
• | the validation of the appropriateness of self-assessment, write-offs and reserves; and | |
• | the verification of the appropriateness of the internal ratings system. |
(iii) | Credit ratings and Self-assessment |
F-202
Table of Contents
Sound: | Obligors for which business conditions are favorable and are deemed not to have any particular problems in terms of their financial position. | |
Requiring careful monitoring: | Obligors that require observation going forward because of concerns over their ability to meet lending terms due to their financial position or performance, or weak or unstable business conditions. | |
3 months delinquent/restructured: | Among obligors requiring careful monitoring, those who subsequently had their lending terms relaxed in order to facilitate rehabilitation of the obligors and performance on the loans, or those in default of payment obligations such as failure to make principal or interest payments for over 3 months. | |
At risk of bankruptcy: | Obligors that are not yet bankrupt but are in financial difficulties and are deemed likely to become bankrupt in the future because of failure to make progress in implementing their management improvement plans or other measures (including obligors that are receiving ongoing support from financial institutions). | |
Virtually bankrupt: | Obligors that have not yet become legally or formally bankrupt but are effectively insolvent because they are in serious financial difficulties and are deemed to be not capable of restructuring. | |
Legally bankrupt: | Obligors that have become legally or formally bankrupt. |
F-203
Table of Contents
Internal | Long-term Rating1 | |||||||||||
rating | Classification of obligors | Moody’s | S&P | R&I | JCR | |||||||
1 | Aaa | AAA | AAA | AAA | ||||||||
2 | Aa1 Aa2 Aa3 | AA+ AA AA- | AAA | AAA | ||||||||
3 | A1 A2 A3 | A+ A A- | AA+ AA AA- | AAA AA+ AA | ||||||||
4 | Sound | Baa1 Baa2 Baa3 | BBB+ BBB BBB- | A+ A A- | AA- A+ A | |||||||
5+ | Ba1 | BB+ | BBB+ | A- | ||||||||
5 | Ba2 | BB | BBB | BBB+ | ||||||||
5- | Ba3 | BB- | BBB- | BBB | ||||||||
6+ | B1 | B+ | BB+ | BBB- | ||||||||
6 | B2 | B | BB | BB+ | ||||||||
6- | ||||||||||||
7 | Requiring careful monitoring | |||||||||||
8 | B3 or below | B- or below | BB- or below | BB or below | ||||||||
8- | 3-months delinquent/restructured | |||||||||||
9 | At risk of bankruptcy | |||||||||||
10 | Legally bankrupt/virtually bankrupt | |||||||||||
1. | Moody’s (Moody’s Investors Service, Inc. ), S&P (Standard & Poor’s Financial Service LLC), R&I (Rating and Investment Information, Inc. ), and JCR (Japan Credit Rating Agency, Ltd. ) are external credit rating agencies. |
F-204
Table of Contents
Loans and advances | ||||||||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Assets at amortized cost: | ||||||||||||
Gross amount | 13,883,591 | 13,609,320 | 13,425,575 | |||||||||
Allowance for loan losses | (102,768 | ) | (114,621 | ) | (60,707 | ) | ||||||
Carrying amount | 13,780,823 | 13,494,699 | 13,364,868 | |||||||||
Individually impaired: | ||||||||||||
Grade 8-: 3 months delinquent/restructured | 139,272 | 34,858 | 43,090 | |||||||||
Grade 9: At risk of bankruptcy | 82,821 | 129,655 | 55,058 | |||||||||
Grade 10: Legally bankrupt and virtually bankrupt | 50,884 | 67,451 | 21,090 | |||||||||
Gross amount | 272,977 | 231,964 | 119,238 | |||||||||
Allowance for loan losses | (71,174 | ) | (75,105 | ) | (24,586 | ) | ||||||
Carrying amount | 201,803 | 156,859 | 94,652 | |||||||||
Collectively impaired: | ||||||||||||
Past due but not individually impaired: | ||||||||||||
Grade 1-6: Sound | 12,705 | 12,777 | 15,612 | |||||||||
Grade 7-8: Requiring careful monitoring | 22,533 | 37,353 | 37,634 | |||||||||
Gross amount | 35,238 | 50,130 | 53,246 | |||||||||
Past due comprises: | ||||||||||||
Within 30 days | 23,254 | 36,203 | 36,619 | |||||||||
30-90 days | 10,533 | 11,188 | 14,234 | |||||||||
More than 90 days | 1,451 | 2,739 | 2,393 | |||||||||
Gross amount | 35,238 | 50,130 | 53,246 | |||||||||
Neither past due nor individually impaired: | ||||||||||||
Grade 1-6: Sound | 12,899,201 | 12,397,150 | 12,442,297 | |||||||||
Grade 7-8: Requiring careful monitoring | 676,175 | 930,076 | 810,794 | |||||||||
F-205
Table of Contents
Loans and advances | ||||||||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Gross amount | 13,575,376 | 13,327,226 | 13,253,091 | |||||||||
Includes restructured loan terms which would have been impaired or past due otherwise | 78,724 | 96,830 | 101,276 | |||||||||
Gross amount | 13,610,614 | 13,377,356 | 13,306,337 | |||||||||
Allowance for loan losses | (31,594 | ) | (39,516 | ) | (36,121 | ) | ||||||
Carrying amount | 13,579,020 | 13,337,840 | 13,270,216 | |||||||||
Total carrying amount | 13,780,823 | 13,494,699 | 13,364,868 | |||||||||
Debt securities | ||||||||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Assets at amortized cost: | ||||||||||||
Gross amount | 965,151 | 1,142,707 | 1,217,594 | |||||||||
Allowance for impairment | – | – | – | |||||||||
Carrying amount | 965,151 | 1,142,707 | 1,217,594 | |||||||||
Individually impaired: | ||||||||||||
Grade 8-: 3 months delinquent/restructured | – | – | – | |||||||||
Grade 9: At risk of bankruptcy | 105 | 6,716 | – | |||||||||
Grade 10: Legally bankrupt and virtually bankrupt | – | – | – | |||||||||
Gross amount | 105 | 6,716 | – | |||||||||
Allowance for impairment | – | – | – | |||||||||
Carrying amount | 105 | 6,716 | – | |||||||||
Collectively impaired: | ||||||||||||
Past due but not individually impaired: | ||||||||||||
Grade 1-6: Sound | – | – | – | |||||||||
Grade 7-8: Requiring careful monitoring | – | – | – | |||||||||
Gross amount | – | – | – | |||||||||
Past due comprises: | ||||||||||||
Within 30 days | – | – | – | |||||||||
30-90 days | – | – | – | |||||||||
More than 90 days | – | – | – | |||||||||
Gross amount | – | – | – | |||||||||
F-206
Table of Contents
Debt securities | ||||||||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Neither past due nor individually impaired: | ||||||||||||
Grade 1-6: Sound | 960,875 | 1,135,065 | 1,217,594 | |||||||||
Grade 7-8: Requiring careful monitoring | 4,171 | 926 | – | |||||||||
Gross amount | 965,046 | 1,135,991 | 1,217,594 | |||||||||
Includes restructured loan terms which would have been impaired or past due otherwise | – | – | – | |||||||||
Gross amount | 965,046 | 1,135,991 | 1,217,594 | |||||||||
Allowance for impairment | – | – | – | |||||||||
Carrying amount | 965,046 | 1,135,991 | 1,217,594 | |||||||||
Total carrying amount | 965,151 | 1,142,707 | 1,217,594 | |||||||||
Available-for-sale securities | ||||||||||||
Individually impaired: | ||||||||||||
Grade 8-: 3 months delinquent/restructured | 659 | – | – | |||||||||
Grade 9: At risk of bankruptcy | 32 | 540 | – | |||||||||
Grade 10: Legally bankrupt and virtually bankrupt | – | – | – | |||||||||
Carrying amount – fair value | 691 | 540 | – | |||||||||
Neither past due nor individually impaired: | ||||||||||||
Grade 1-6: Sound | 2,311,503 | 3,037,810 | 2,585,736 | |||||||||
Grade 7-8: Requiring careful monitoring | 12 | 5,253 | 1,579 | |||||||||
Carrying amount – fair value | 2,311,515 | 3,043,063 | 2,587,315 | |||||||||
Total carrying amount | 2,312,206 | 3,043,603 | 2,587,315 | |||||||||
Assets at fair value through profit or loss | ||||||||||||
Neither past due nor individually impaired: | ||||||||||||
Grade 1-6: Sound | 460,693 | 670,643 | 483,902 | |||||||||
Grade 7-8: Requiring careful monitoring | – | – | – | |||||||||
Grade 8-: 3 months delinquent/restructured | – | – | – | |||||||||
Grade 9: At risk of bankruptcy | – | – | – | |||||||||
Grade 10: Legally bankrupt and virtually bankrupt | – | – | – | |||||||||
Carrying amount – fair value | 460,693 | 670,643 | 483,902 | |||||||||
Total carrying amount | 460,693 | 670,643 | 483,902 | |||||||||
F-207
Table of Contents
Non-marketable equity securities | ||||||||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Available-for-sale securities | ||||||||||||
Individually impaired: | ||||||||||||
Grade 8-: 3 months delinquent/restructured | 1,152 | 18 | 26 | |||||||||
Grade 9: At risk of bankruptcy | 512 | 18 | 29 | |||||||||
Grade 10: Legally bankrupt and virtually bankrupt | 0 | 0 | 83 | |||||||||
Carrying amount | 1,664 | 36 | 138 | |||||||||
Neither past due nor individually impaired: | ||||||||||||
Grade 1-6: Sound | 154,764 | 184,267 | 271,976 | |||||||||
Grade 7-8: Requiring careful monitoring | 809 | 1,526 | 2,466 | |||||||||
Carrying amount – fair value | 155,573 | 185,793 | 274,442 | |||||||||
Total carrying amount | 157,237 | 185,829 | 274,580 | |||||||||
Assets at fair value through profit or loss | ||||||||||||
Neither past due nor individually impaired: | ||||||||||||
Grade 1-6: Sound | 457 | – | 9,628 | |||||||||
Grade 7-8: Requiring careful monitoring | – | – | – | |||||||||
Grade 8-: 3 months delinquent/restructured | – | – | – | |||||||||
Grade 9: At risk of bankruptcy | – | – | – | |||||||||
Grade 10: Legally bankrupt and virtually bankrupt | – | – | – | |||||||||
Carrying amount – fair value | 457 | – | 9,628 | |||||||||
Total carrying amount | 457 | – | 9,628 | |||||||||
F-208
Table of Contents
Loans and advances | ||||||||
Gross | Net | |||||||
March 31, 2010 | ||||||||
Grade 8-: 3 months delinquent/restructured | 139,272 | 128,031 | ||||||
Grade 9: At risk of bankruptcy | 82,821 | 41,157 | ||||||
Grade 10: Legally bankrupt and virtually bankrupt | 50,884 | 32,615 | ||||||
Total | 272,977 | 201,803 | ||||||
March 31, 2009 | ||||||||
Grade 8-: 3 months delinquent/restructured | 34,858 | 33,767 | ||||||
Grade 9: At risk of bankruptcy | 129,655 | 72,102 | ||||||
Grade 10: Legally bankrupt and virtually bankrupt | 67,451 | 50,990 | ||||||
Total | 231,964 | 156,859 | ||||||
April 1, 2008 | ||||||||
Grade 8-: 3 months delinquent /restructured | 43,090 | 37,745 | ||||||
Grade 9: At risk of bankruptcy | 55,058 | 41,843 | ||||||
Grade 10: Legally bankrupt and virtually bankrupt | 21,090 | 15,064 | ||||||
Total | 119,238 | 94,652 | ||||||
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Loans and advances | ||||||||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Against individually impaired: | ||||||||||||
Securities | 6,060 | 2,068 | 137 | |||||||||
Property | 103,019 | 129,985 | 71,333 | |||||||||
Guarantee | 7,291 | 6,852 | 7,077 | |||||||||
Others | 787 | 220 | 230 | |||||||||
Total | 117,157 | 139,125 | 78,777 | |||||||||
Against past due but not individually impaired: | ||||||||||||
Securities | – | – | – | |||||||||
Property | 8,165 | 11,812 | 9,391 | |||||||||
Guarantee | 646 | 1,035 | 1,077 | |||||||||
Others | – | – | – | |||||||||
Total | 8,811 | 12,847 | 10,468 | |||||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
On-balance sheet items | ||||||||||||
Deposits with banks | 962,115 | 609,569 | 873,472 | |||||||||
Call loans | 112,455 | 29,819 | 156,067 | |||||||||
Cash collateral on securities borrowed | – | 295,942 | 152,240 | |||||||||
Derivative financial instruments | 3,130,994 | 4,027,339 | 2,274,952 | |||||||||
Off-balance sheet items | ||||||||||||
Loan commitments | 1,515,988 | 1,533,213 | 1,725,848 | |||||||||
Financial guarantees and other credit related contingent liabilities | 339,837 | 422,947 | 488,866 |
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Table of Contents
Loans and advances | ||||||||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Gross amount | 13,883,591 | 13,609,320 | 13,425,575 | |||||||||
Concentration by location: | ||||||||||||
Japan | 13,472,794 | 13,048,988 | 12,572,546 | |||||||||
US | 188,919 | 321,382 | 585,473 | |||||||||
Other outside Japan | 221,878 | 238,950 | 267,556 | |||||||||
Gross amount | 13,883,591 | 13,609,320 | 13,425,575 | |||||||||
Concentration by sector: | ||||||||||||
Domestic | ||||||||||||
Manufacturing | 2,273,764 | 2,270,635 | 1,754,452 | |||||||||
Wholesale and retail | 1,174,563 | 1,223,230 | 1,208,238 | |||||||||
Finance and insurance | 1,545,931 | 1,446,838 | 1,671,914 | |||||||||
Real estate | 2,143,903 | 1,991,718 | 1,855,450 | |||||||||
Various services | 950,985 | 1,220,422 | 1,229,055 | |||||||||
Individuals | 2,466,693 | 2,442,919 | 2,294,464 | |||||||||
Others | 2,345,198 | 2,035,720 | 2,153,233 | |||||||||
Subtotal | 12,901,037 | 12,631,482 | 12,166,806 | |||||||||
Foreign | 982,554 | 977,838 | 1,258,769 | |||||||||
Gross amount | 13,883,591 | 13,609,320 | 13,425,575 | |||||||||
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2010 | 2009 | |||||||
(in billions of yen) | ||||||||
As of March 31 | 159 | 155 | ||||||
Maximum for the period | 824 | 333 | ||||||
Minimum for the period | (24 | ) | (12 | ) | ||||
Upper limit | (550 | ) | (550 | ) |
On Demand | 0-3 months | 3-12 months | 1-3 years | 3-5 years | Over 5 years | |||||||||||||||||||
March 31, 2010 | ||||||||||||||||||||||||
Non-derivative liabilities | ||||||||||||||||||||||||
Deposits | 2,396,389 | 4,315,939 | 3,152,269 | 3,150,712 | 1,618,924 | 4,556 | ||||||||||||||||||
Call money | – | 79,519 | – | – | – | – | ||||||||||||||||||
Cash collateral on securities lent and repurchase agreements | – | 601,787 | – | – | – | – | ||||||||||||||||||
Financial liabilities held for trading | 7,386 | – | – | – | – | – | ||||||||||||||||||
Due to trust accounts | – | 83,337 | – | – | – | – | ||||||||||||||||||
Principal guaranteed trust certificates | 164,861 | 114,040 | 165,330 | 142,188 | 69,308 | 195 | ||||||||||||||||||
Debt securities issued | – | 543,187 | 27,905 | 37,150 | 115,530 | 560,857 | ||||||||||||||||||
Borrowed funds | – | 476,645 | 98,941 | 325,922 | 157,472 | 389,538 | ||||||||||||||||||
Other liabilities | 246,767 | 267,576 | – | – | – | – |
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On Demand | 0-3 months | 3-12 months | 1-3 years | 3-5 years | Over 5 years | |||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||
Derivatives settled gross: | ||||||||||||||||||||||||
Outflow | 58,415 | 1,841,315 | 869,213 | 604,930 | 302,802 | 69,658 | ||||||||||||||||||
Inflow | 55,496 | 1,795,956 | 835,807 | 579,281 | 292,525 | 66,230 | ||||||||||||||||||
Derivatives settled net: | 1,368,425 | 76,733 | 396,337 | 621,327 | 187,925 | 64,143 | ||||||||||||||||||
Unrecognized loan commitments | 1,515,988 | – | – | – | – | – | ||||||||||||||||||
Financial guarantees and other credit-related contingent liabilities | 339,837 | – | – | – | – | – |
On Demand | 0-3 months | 3-12 months | 1-3 years | 3-5 years | Over 5 years | |||||||||||||||||||
March 31, 2009 | ||||||||||||||||||||||||
Non-derivative liabilities | ||||||||||||||||||||||||
Deposits | 2,148,076 | 4,317,338 | 2,905,379 | 3,395,517 | 1,480,352 | 4,811 | ||||||||||||||||||
Call money | – | 133,182 | – | – | – | – | ||||||||||||||||||
Cash collateral on securities lent and repurchase agreements | – | 1,236,776 | – | – | – | – | ||||||||||||||||||
Financial liabilities held for trading | 2,792 | – | – | – | – | – | ||||||||||||||||||
Due to trust accounts | – | 77,578 | – | – | – | – | ||||||||||||||||||
Principal guaranteed trust certificates | 168,456 | 112,427 | 191,435 | 224,455 | 66,624 | 217 | ||||||||||||||||||
Debt securities issued | – | 703,310 | 40,738 | 45,156 | 129,675 | 700,365 | ||||||||||||||||||
Borrowed funds | 0 | 773,955 | 107,340 | 220,492 | 178,871 | 312,275 | ||||||||||||||||||
Other liabilities | 276,794 | 251,096 | – | – | – | – | ||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||
Derivatives settled gross: | ||||||||||||||||||||||||
Outflow | 97,025 | 2,355,920 | 1,867,023 | 882,050 | 413,164 | 294,647 | ||||||||||||||||||
Inflow | 93,746 | 2,320,809 | 1,774,735 | 826,980 | 387,798 | 283,389 | ||||||||||||||||||
Derivatives settled net: | 1,693,648 | 59,467 | 377,762 | 680,823 | 378,123 | 399,640 | ||||||||||||||||||
Unrecognized loan commitments | 1,533,213 | – | – | – | – | – | ||||||||||||||||||
Financial guarantees and other credit-related contingent liabilities | 422,947 | – | – | – | – | – |
F-213
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F-214
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• | The stipulated holding period assumes that it is possible to hedge or dispose of positions within that period. This may not be the case for highly illiquid assets or in situations in which there is severe general market illiquidity. | |
• | A 99% confidence interval does not reflect losses that may occur beyond this level. There is a one percent probability that losses could exceed the VaR. | |
• | VaR is calculated on anend-of-day basis and does not reflect exposures that may arise on positions during a trading day. | |
• | The use of historical data as a basis for determining the possible range of future outcomes may not always cover all possible scenarios, especially those of an exceptional nature. | |
• | The VaR measure is dependent upon STB’s position and the volatility of market prices. The VaR of an unchanged position reduces if market price volatility declines and vice versa. |
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• | Confidence interval: One-tailed 99% | |
• | Holding period: 1 business day | |
• | Observation period: 260 business days |
Year Ended March 31 | ||||||||||||||||
As of March 31 | Average | Maximum | Minimum | |||||||||||||
(in billions of yen) | ||||||||||||||||
2010 | ||||||||||||||||
Actual VaR positions | 0.7 | 0.8 | 1.5 | 0.4 | ||||||||||||
VaR limits | 2.9 | |||||||||||||||
2009 | ||||||||||||||||
Actual VaR positions | 1.1 | 1.7 | 8.1 | 0.1 | ||||||||||||
VaR limits | 10.3 |
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Year Ended March 31 | ||||||||||||||||
As of March 31 | Average | Maximum | Minimum | |||||||||||||
(in billions of yen) | ||||||||||||||||
2010 | ||||||||||||||||
Foreign currency and interest rate risk | 19.2 | 38.9 | 71.6 | 20.2 | ||||||||||||
Stock price and other risk | 139.5 | 165.4 | 202.9 | 119.3 | ||||||||||||
Actual overall VaR positions | 158.7 | 204.3 | 274.5 | 139.5 | ||||||||||||
Overall authorized VaR limit | 399.0 | |||||||||||||||
2009 | ||||||||||||||||
Foreign currency and interest rate risk | 92.7 | 101.0 | 136.8 | 61.6 | ||||||||||||
Stock price and other risk | 163.3 | 165.2 | 218.3 | 155.6 | ||||||||||||
Actual overall VaR positions | 256.0 | 266.2 | 355.1 | 217.2 | ||||||||||||
Overall authorized VaR limit | 466.5 |
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• | conducts a self-risk assessment; | |
• | identifies operational risks in each operation in the form of scenarios; | |
• | estimates the amount and frequency of losses that may arise in each scenario (a situation that could have an impact on the management of STB); and | |
• | evaluates the extent of the impact. |
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• | Tier I capital, which includes common stock, capital surplus, retained earnings, treasury stock, translation reserve, minority interests after deduction for certain items, and non-cumulative preferred securities. | |
• | Tier II capital, which includes perpetual subordinated bonds, subordinated term debt, and fixed term preferred stock. |
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March 31, 2010 | March 31, 2009 | |||||||
Tier I | ||||||||
Capital stock | 342,037 | 287,537 | ||||||
Noncumulative perpetual preferred stock | 54,500 | – | ||||||
Deposit for subscriptions to shares | – | – | ||||||
Capital surplus | 297,052 | 242,555 | ||||||
Retained earnings | 505,443 | 463,345 | ||||||
Treasury stock | (465 | ) | (453 | ) | ||||
Deposit for subscriptions to treasury stock | – | – | ||||||
Expected distributed amount | (10,678 | ) | (2,511 | ) | ||||
Net unrealized loss onavailable-for-sale securities | (335 | ) | (109,615 | ) | ||||
Foreign currency translation adjustments | (9,922 | ) | (10,111 | ) | ||||
Share warrants | – | – | ||||||
Minority interests | 301,361 | 306,969 | ||||||
Noncumulative preferred securities issued by overseas special purpose companies | 280,000 | 280,000 | ||||||
Business rights equivalents | – | – | ||||||
Goodwill equivalents | (133,092 | ) | (106,980 | ) | ||||
Equivalent to intangible fixed assets recorded through business combination | – | – | ||||||
Equivalent to the increase in the capital associated with securitization transactions | (2,915 | ) | (1,062 | ) |
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March 31, 2010 | March 31, 2009 | |||||||
Equivalent to 50% of the excess of expected loss over qualifying allowance | (22,141 | ) | (7,865 | ) | ||||
Total Tier I before deduction of deferred tax assets (aggregate sum of items above) | 1,266,342 | 1,061,806 | ||||||
Deducted amounts of deferred tax assets | – | – | ||||||
Total (A) | 1,266,342 | 1,061,806 | ||||||
Noncumulative preferred securities attached withstep-up interest rate clause (a) | 156,000 | 156,000 | ||||||
Tier II | ||||||||
45% of net unrealized gain onavailable-for-sale securities | – | – | ||||||
45% of revaluation reserve for land | 505 | 614 | ||||||
General allowance for loan losses | 9,294 | 9,383 | ||||||
Excess of qualifying allowance over expected loss | – | – | ||||||
Debt capital | 596,823 | 673,625 | ||||||
Perpetual subordinated debt | 186,915 | 292,740 | ||||||
Subordinated term debt and fixed-term preferred stock | 409,907 | 380,885 | ||||||
Total | 606,622 | 683,624 | ||||||
Included in capital (B) | 606,622 | 683,624 | ||||||
Tier III | ||||||||
Subordinated short-term debt | – | – | ||||||
Included in capital (C) | – | – | ||||||
Items for Deduction | ||||||||
Items for deduction (D) | 95,604 | 62,542 | ||||||
Total Qualifying Capital | ||||||||
((A) + (B) + (C) – (D)) (E) | 1,777,360 | 1,682,888 | ||||||
Risk-Weighted Assets | ||||||||
Amount of credit risk-weighted assets (F) | 11,963,692 | 12,943,870 | ||||||
Amount of market risk equivalents (G) | 96,869 | 284,753 | ||||||
Amount of operational risk equivalents (H) | 770,806 | 682,848 | ||||||
Amount obtained by multiplying by 12.5 the excess of the amount obtained by multiplying the old required capital by the rate prescribed by the notification over the new required capital (I) | – | – | ||||||
Total ((F) + (G) + (H) + (I)) (J) | 12,831,367 | 13,911,473 | ||||||
BIS Capital Adequacy Ratio = E/J x 100 (%) | 13.85 | 12.09 | ||||||
Tier I Capital Ratio = A/J x 100 (%) | 9.86 | 7.63 | ||||||
Ratio of Noncumulative Preferred Securities withStep-up Interest Rate Clauses to Tier I Capital = a/A x 100 (%) | 12.31 | 14.69 | ||||||
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5. | Critical accounting estimates and judgments |
F-222
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F-223
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6. | Segment reporting |
F-224
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F-225
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Retail | Wholesale Financial | Global | Fiduciary | |||||||||||||||||||||
Financial Services | Services | Markets | Services | Real Estate | Total | |||||||||||||||||||
Year ended March 31, 2010 | ||||||||||||||||||||||||
Net revenue | 80,987 | 156,898 | 77,902 | 69,593 | 18,952 | 404,332 | ||||||||||||||||||
Operating expenses | 62,844 | 54,783 | 10,854 | 45,343 | 14,902 | 188,726 | ||||||||||||||||||
Reportable segment operating profit | 18,143 | 102,115 | 67,048 | 24,250 | 4,050 | 215,606 | ||||||||||||||||||
Year ended March 31, 2009 | ||||||||||||||||||||||||
Net revenue | 84,302 | 155,829 | 142,311 | 62,775 | 21,868 | 467,085 | ||||||||||||||||||
Operating expenses | 61,728 | 60,580 | 11,611 | 31,430 | 16,222 | 181,571 | ||||||||||||||||||
Reportable segment operating profit | 22,574 | 95,249 | 130,700 | 31,345 | 5,646 | 285,514 | ||||||||||||||||||
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Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Reportable segment | 215,606 | 285,514 | ||||||
Credit cost | (6,149 | ) | (170,099 | ) | ||||
Capital cost | (19,143 | ) | (23,800 | ) | ||||
Head office cost | (12,640 | ) | (13,838 | ) | ||||
Past service cost and amortization of net actuarial losses | (16,569 | ) | (9,901 | ) | ||||
Equity related losses | (19,181 | ) | (38,516 | ) | ||||
Gain on contribution of securities to retirement benefit trust (Note 26) | – | 21,538 | ||||||
Dividend received from strategic investment in equity securities | 20,975 | 11,300 | ||||||
Impairment of goodwill | (34,438 | ) | – | |||||
Other | 4,697 | (8,632 | ) | |||||
Profit before income tax expenses (Japanese GAAP) | 133,158 | 53,566 | ||||||
Adjustments from Japanese GAAP to IFRS | 13,560 | (11,787 | ) | |||||
Profit before income tax expenses | 146,718 | 41,779 | ||||||
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Income from operations in Japan | 370,406 | 466,911 | ||||||
Income from operations outside Japan | 55,878 | 15,727 | ||||||
Consolidated total income, excluding provision for credit losses | 426,284 | 482,638 | ||||||
March 31, 2010 | March 31, 2009 | |||||||
Japan | 373,726 | 309,997 | ||||||
Foreign countries | 1,712 | 1,605 | ||||||
375,438 | 311,602 | |||||||
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7. | Cash and deposits with banks |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Cash in hand | 65,704 | 58,615 | 138,269 | |||||||||
Deposits with the Bank of Japan | 417,819 | 206,740 | 302,158 | |||||||||
Non-interest-bearing deposits with other banks | 140,793 | 187,783 | 2,211 | |||||||||
Interest-bearing deposits with other banks | 403,503 | 215,046 | 569,103 | |||||||||
Total | 1,027,819 | 668,184 | 1,011,741 | |||||||||
Less: Interest-bearing deposits with other banks | 403,503 | 215,046 | 569,103 | |||||||||
Cash and cash equivalents | 624,316 | 453,138 | 442,638 | |||||||||
Current | 1,026,532 | 666,359 | 1,009,662 | |||||||||
Non-current | 1,287 | 1,825 | 2,079 |
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8. | Financial assets held for trading |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Equity securities | ||||||||||||
Listed | 90,016 | 39,439 | 18,290 | |||||||||
Unlisted | 457 | – | 9,628 | |||||||||
Equity securities total | 90,473 | 39,439 | 27,918 | |||||||||
Debt securities | ||||||||||||
Government bonds | 25,155 | 11,706 | 5,416 | |||||||||
Municipal bonds | 817 | 1,012 | 1,057 | |||||||||
Corporate bonds | 434,721 | 657,925 | 477,429 | |||||||||
Debt securities total | 460,693 | 670,643 | 483,902 | |||||||||
Total | 551,166 | 710,082 | 511,820 | |||||||||
Current | 551,166 | 710,082 | 511,820 | |||||||||
Non-current | – | – | – |
9. | Derivative financial instruments |
F-229
Table of Contents
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||||||||||||||||||||||||||
Notional | Notional | Notional | ||||||||||||||||||||||||||||||||||
contract | Fair value | Fair value | contract | Fair value | Fair value | contract | Fair value | Fair value | ||||||||||||||||||||||||||||
amount | assets | liabilities | amount | assets | liabilities | amount | assets | liabilities | ||||||||||||||||||||||||||||
Interest rate: | ||||||||||||||||||||||||||||||||||||
Listed interest rate futures | 17,940,311 | 16,177 | 16,549 | 17,807,846 | 42,166 | 39,619 | 42,355,407 | 61,716 | 61,693 | |||||||||||||||||||||||||||
Listed interest rate options | 1,775,868 | 129 | 115 | 319,830 | 43 | 37 | 790,371 | 50 | 84 | |||||||||||||||||||||||||||
OTC interest rate swaps | 142,571,671 | 2,441,818 | 2,293,352 | 116,294,300 | 2,814,011 | 2,694,933 | 93,128,887 | 1,402,630 | 1,339,535 | |||||||||||||||||||||||||||
OTC interest rate options | 21,423,027 | 180,775 | 161,917 | 39,704,553 | 613,554 | 539,271 | 41,969,409 | 425,080 | 261,515 | |||||||||||||||||||||||||||
Subtotal | 183,710,877 | 2,638,899 | 2,471,933 | 174,126,529 | 3,469,774 | 3,273,860 | 178,244,074 | 1,889,476 | 1,662,827 | |||||||||||||||||||||||||||
Foreign currency: | ||||||||||||||||||||||||||||||||||||
OTC currency swaps | 2,200,900 | 152,511 | 13,238 | 2,380,229 | 144,972 | 33,345 | 1,920,114 | 118,032 | 21,630 | |||||||||||||||||||||||||||
Forward | 6,813,134 | 102,427 | 106,978 | 11,363,691 | 203,804 | 186,691 | 8,400,528 | 136,993 | 155,051 | |||||||||||||||||||||||||||
OTC currency options | 10,135,328 | 228,109 | 218,193 | 9,948,006 | 192,343 | 223,695 | 5,361,762 | 111,629 | 118,901 | |||||||||||||||||||||||||||
Subtotal | 19,149,362 | 483,047 | 338,409 | 23,691,926 | 541,119 | 443,731 | 15,682,404 | 366,654 | 295,582 | |||||||||||||||||||||||||||
Stock: | ||||||||||||||||||||||||||||||||||||
Listed stock index futures | 52,698 | 624 | 377 | 18,143 | 200 | 637 | 77,940 | 474 | 845 | |||||||||||||||||||||||||||
Listed stock index options | 5,305 | 36 | 36 | 7,685 | 73 | 10 | 30,277 | 235 | 52 | |||||||||||||||||||||||||||
Conversion options | 20,667 | 0 | 5,317 | 20,040 | 0 | 1,105 | 20,040 | 2,767 | 5 | |||||||||||||||||||||||||||
OTC stock index swaps | 107,328 | 7,421 | 7,421 | 112,612 | 9,141 | 9,141 | 64,600 | 3,747 | 3,747 | |||||||||||||||||||||||||||
Subtotal | 185,998 | 8,081 | 13,151 | 158,480 | 9,414 | 10,893 | 192,857 | 7,223 | 4,649 | |||||||||||||||||||||||||||
Bond: | ||||||||||||||||||||||||||||||||||||
Listed bond futures | 496,761 | 564 | 661 | 277,049 | 884 | 1,023 | 2,014,351 | 8,729 | 12,339 | |||||||||||||||||||||||||||
Listed bond futures options | 17,352 | 12 | 14 | 32,426 | 13 | 67 | 233,792 | 414 | 550 | |||||||||||||||||||||||||||
Subtotal | 514,113 | 576 | 675 | 309,475 | 897 | 1,090 | 2,248,143 | 9,143 | 12,889 | |||||||||||||||||||||||||||
Credit contracts: | ||||||||||||||||||||||||||||||||||||
OTC credit related contracts | 409,178 | 391 | 3,271 | 479,912 | 6,135 | 21,858 | 437,376 | 2,456 | 12,768 | |||||||||||||||||||||||||||
Total | 203,969,528 | 3,130,994 | 2,827,439 | 198,766,322 | 4,027,339 | 3,751,432 | 196,804,854 | 2,274,952 | 1,988,715 | |||||||||||||||||||||||||||
Current | 1,760,357 | 1,558,624 | 2,207,972 | 1,979,042 | 1,133,113 | 972,009 | ||||||||||||||||||||||||||||||
Non-current | 1,370,637 | 1,268,815 | 1,819,367 | 1,772,390 | 1,141,839 | 1,016,706 |
F-230
Table of Contents
10. | Investment securities |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Equity securities | ||||||||||||
Available-for-sale | 672,155 | 603,763 | 943,574 | |||||||||
Debt securities | ||||||||||||
Available-for-sale | 2,312,206 | 3,043,603 | 2,587,315 | |||||||||
Loans and receivables | 705,593 | 786,433 | 640,947 | |||||||||
Held-to-maturity | 259,558 | 356,274 | 576,647 | |||||||||
Subtotal | 3,277,357 | 4,186,310 | 3,804,909 | |||||||||
Total | 3,949,512 | 4,790,073 | 4,748,483 | |||||||||
Equity securities | ||||||||||||
Current | – | – | – | |||||||||
Non-current | 672,155 | 603,763 | 943,574 | |||||||||
Debt securities | ||||||||||||
Current | 698,996 | 381,255 | 411,193 | |||||||||
Non-current | 2,578,361 | 3,805,055 | 3,393,716 |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Equity securities | ||||||||||||
Listed | 514,918 | 417,934 | 668,994 | |||||||||
Unlisted | 157,237 | 185,829 | 274,580 | |||||||||
Equity securities total | 672,155 | 603,763 | 943,574 | |||||||||
Debt securities | ||||||||||||
Government bonds | 1,905,851 | 2,590,788 | 1,449,464 | |||||||||
Municipal bonds | 11,822 | 11,758 | 25,599 | |||||||||
Corporate bonds | 394,533 | 441,057 | 1,112,252 | |||||||||
Debt securities total | 2,312,206 | 3,043,603 | 2,587,315 | |||||||||
Total | 2,984,361 | 3,647,366 | 3,530,889 | |||||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Debt securities | ||||||||||||
Corporate bonds | 705,593 | 786,433 | 640,947 | |||||||||
Total | 705,593 | 786,433 | 640,947 | |||||||||
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March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Debt securities | ||||||||||||
Government bonds | 236,269 | 331,932 | 439,650 | |||||||||
Municipal bonds | – | 50 | 100 | |||||||||
Corporate bonds | 23,289 | 24,292 | 136,897 | |||||||||
Total | 259,558 | 356,274 | 576,647 | |||||||||
March 31, 2010 | March 31, 2009 | December 26, 2008 | ||||||||||||||||||
Carrying | Carrying | |||||||||||||||||||
amount | Fair value | amount | Fair value | Amounts reclassified | ||||||||||||||||
Available-for-sale investment securities reclassified to loans and receivables | 262,656 | 307,857 | 300,957 | 273,622 | 288,058 |
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Year ended | ||||||||||||||||
March 31, 2010 | March 31, 2009 | |||||||||||||||
Other | Other | |||||||||||||||
Comprehensive | Comprehensive | |||||||||||||||
Profit or (loss) | income (losses) | Profit or (loss) | income (losses) | |||||||||||||
Periods before reclassification | ||||||||||||||||
Available-for-sale investment securities reclassified to loans and receivables | ||||||||||||||||
Interest income | – | – | 14,263 | – | ||||||||||||
Exchange differences | – | – | 44,678 | – | ||||||||||||
Net change in fair value | – | – | – | (66,132 | ) | |||||||||||
Total | – | – | 58,941 | (66,132 | ) | |||||||||||
Periods after reclassification | ||||||||||||||||
Available-for-sale investment securities reclassified to loans and receivables | ||||||||||||||||
Interest income | 17,535 | – | 5,559 | – | ||||||||||||
Amortization of fair value reserve through profit or (loss) | (12,546 | ) | 12,546 | (2,570 | ) | 2,570 | ||||||||||
Net interest income | 4,989 | – | 2,989 | – | ||||||||||||
Exchange differences | (5,210 | ) | – | (3,427 | ) | – | ||||||||||
Net impairment loss on financial assets | (5 | ) | – | (2 | ) | – | ||||||||||
Total | (226 | ) | 12,546 | (440 | ) | 2,570 | ||||||||||
March 31, 2010 | March 31, 2009 | |||||||||||||||
Other | Other | |||||||||||||||
Comprehensive | comprehensive | |||||||||||||||
Profit or (loss) | income (losses) | Profit or (loss) | income (losses) | |||||||||||||
Available-for-sale investment securities reclassified to loans and receivables | ||||||||||||||||
Interest income | 4,989 | – | 17,252 | – | ||||||||||||
Exchange differences | (5,069 | ) | – | 33,639 | – | |||||||||||
Net change in fair value | – | 85,086 | – | (97,023 | ) | |||||||||||
Total | (80 | ) | 85,086 | 50,891 | (97,023 | ) | ||||||||||
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11. | Loans and advances |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Gross loans and advances | 13,883,591 | 13,609,320 | 13,425,575 | |||||||||
Less allowance for loan losses comprising: | (102,768 | ) | (114,621 | ) | (60,707 | ) | ||||||
Allowance for collectively impaired loans and advances | (31,594 | ) | (39,516 | ) | (36,121 | ) | ||||||
Allowance for individually impaired loans and advances | (71,174 | ) | (75,105 | ) | (24,586 | ) | ||||||
Net loans and advances | 13,780,823 | 13,494,699 | 13,364,868 | |||||||||
Current | 3,664,891 | 3,769,632 | 3,894,150 | |||||||||
Non-current | 10,115,932 | 9,725,067 | 9,470,718 |
Present value of | ||||||||||||||||
Gross investment | minimum lease | |||||||||||||||
in finance lease | Future finance | payments | Unguaranteed | |||||||||||||
receivables | income | receivables | residual values | |||||||||||||
March 31, 2010 | ||||||||||||||||
Lease receivables | ||||||||||||||||
Less than one year | 286,755 | 4,942 | 281,813 | 5,645 | ||||||||||||
Between one and five years | 560,791 | 43,105 | 517,686 | 15,647 | ||||||||||||
More than five years | 66,147 | 23,644 | 42,503 | 2,160 | ||||||||||||
Total | 913,693 | 71,691 | 842,002 | 23,452 | ||||||||||||
March 31, 2009 | ||||||||||||||||
Lease receivables | ||||||||||||||||
Less than one year | 287,792 | 5,316 | 282,476 | 6,295 | ||||||||||||
Between one and five years | 598,090 | 45,878 | 552,212 | 16,734 | ||||||||||||
More than five years | 46,781 | 16,302 | 30,479 | 2,033 | ||||||||||||
Total | 932,663 | 67,496 | 865,167 | 25,062 | ||||||||||||
April 1, 2008 | ||||||||||||||||
Lease receivables | ||||||||||||||||
Less than one year | 299,811 | 5,693 | 294,118 | 7,420 | ||||||||||||
Between one and five years | 605,500 | 44,197 | 561,303 | 18,762 | ||||||||||||
More than five years | 44,044 | 13,524 | 30,520 | 2,313 | ||||||||||||
Total | 949,355 | 63,414 | 885,941 | 28,495 | ||||||||||||
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March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Accumulated allowance for uncollectible minimum lease payments | 11,060 | 10,532 | 8,113 |
Year ended | ||||||||||||||||||||||||
March 31, 2010 | March 31, 2009 | |||||||||||||||||||||||
Collective | Individual | Total | Collective | Individual | Total | |||||||||||||||||||
Allowance for loan losses at beginning of the year | 39,516 | 75,105 | 114,621 | 36,121 | 24,586 | 60,707 | ||||||||||||||||||
Provision for loan losses | (7,168 | ) | 35,073 | 27,905 | 3,913 | 93,069 | 96,982 | |||||||||||||||||
Charge off for the year | – | (40,063 | ) | (40,063 | ) | – | (43,544 | ) | (43,544 | ) | ||||||||||||||
Recoveries | – | 1,359 | 1,359 | – | 973 | 973 | ||||||||||||||||||
Changes in STB consolidation scope | (692 | ) | – | (692 | ) | (373 | ) | – | (373 | ) | ||||||||||||||
Exchange rate/other | (62 | ) | (300 | ) | (362 | ) | (145 | ) | 21 | (124 | ) | |||||||||||||
Allowance for loan losses at end of the year | 31,594 | 71,174 | 102,768 | 39,516 | 75,105 | 114,621 | ||||||||||||||||||
12. | Collateral |
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March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Assets pledged as collateral | ||||||||||||
Financial assets held for trading | 313,970 | 508,253 | 343,204 | |||||||||
Investment securities – debt securities | 1,177,150 | 1,983,158 | 1,117,939 | |||||||||
Loans and advances | 701,618 | 570,483 | 273,207 | |||||||||
Investment property | 61,198 | 65,556 | 17,300 | |||||||||
Other assets | 11,175 | 17,262 | 37,788 | |||||||||
Total | 2,265,111 | 3,144,712 | 1,789,438 | |||||||||
Corresponding liabilities | ||||||||||||
Deposits | 24,461 | 22,097 | 35,211 | |||||||||
Cash collateral on securities lent | – | – | 131,957 | |||||||||
Repurchase agreements | 601,787 | 1,236,776 | 790,589 | |||||||||
Borrowed funds | 412,211 | 760,698 | 188,041 | |||||||||
Total | 1,038,459 | 2,019,571 | 1,145,798 | |||||||||
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13. | Investment in associates and joint ventures |
Ownership percentage | ||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||
Associates: | ||||||
Top REIT Asset Management Co., Ltd. | 38.00% | 38.00% | 38.00% | |||
HR One Corporation (formerly known as “Human Resource Management Service & Consulting Co., Ltd.”)1 | 35.89% | 38.89% | 38.89% | |||
Japan Trustee Services Bank, Ltd. | 33.33% | 33.33% | 33.33% | |||
Japan Trustee Information Systems, Ltd. | 33.33% | 33.33% | 33.33% | |||
Rongtong Fund Management Co., Ltd.2 | 40.00% | – | – | |||
MCo2, L. L. P.3 | 99.01% | 99.01% | 99.01% | |||
OLYMPUS CAPITAL JAPAN I, L. P.3,4 | – | 99.50% | 99.50% | |||
Global Vintage Fund 2008, L. P.5 | 19.28% | 19.28% | – | |||
Joint ventures: | ||||||
Japan Pension Operation Service, Ltd. | 50.00% | 50.00% | 50.00% | |||
SBI Sumishin Net Bank, Ltd. | 50.00% | 50.00% | 50.00% | |||
Sumishin Life Card Company, Ltd.6 | 40.00% | 40.00% | 51.00% | |||
BUSINEXT CORPORATION | 40.00% | 40.00% | 40.00% |
1. | During the fiscal year ended March 31, 2010, shareholders of Human Resource Management Service & Consulting Co., Ltd. (“HRMSC”) and Mitsubishi Corporation, parent company of Human Link Corporation (“HLO”) reached the agreement to merge HRMSC and HLO. As a result of this merger, the name of the company was changed from HRMSC to HR One Corporation, and the ownership held by respective shareholders including STB was revised. | |
2. | During the fiscal year ended March 31, 2010, STB acquired Rongtong Fund Management Co., Ltd. (“RFM”) through the acquisition of Nikko Asset Management Co., Ltd., who owns a 40% share of RFM. | |
3. | STB has no voting rights attached to the equity interest and does not have control over the investees. Instead, the general partners of the investees control all aspects of the financing and operating policies of these partnerships. | |
4. | During the fiscal year ended March 31, 2010, OLYMPUS CAPITAL JAPAN I, L. P. was liquidated and a final capital distribution was made to the respective investors. | |
5. | STB has significant influence over the investee because of its participation in the “Investor Committee” which decides key operational decisions of the investee. | |
6. | During the fiscal year ended March 31, 2009, Sumishin Life Card Company, Ltd. (“SLC”) allocated its newly issued share capital to third parties. As a result, STB’s ownership in SLC decreased. |
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March 31, 2010 | March 31, 2009 | |||||||
Balance at beginning of the year | 33,847 | 36,809 | ||||||
Addition | 12,991 | 4,705 | ||||||
Share of profit | 1,436 | 2,285 | ||||||
Dividends received | (154 | ) | (239 | ) | ||||
Distribution | (84 | ) | (5,088 | ) | ||||
Other equity movements | 363 | (4,625 | )1 | |||||
Balance at end of the year | 48,399 | 33,847 | ||||||
1. | The amount primarily represents net change in net gains (losses) onavailable-for-sale financial assets. During the year ended March 31, 2009, one of STB’s associates sold its partnership investment. As a result, the majority of unrealized gain recorded at the beginning of the year was realized. |
Financial information of associates and joint ventures | ||||||||||||||||
Assets | Liabilities | Revenues | Profit | |||||||||||||
As of and for the year ended March 31, 2010 | ||||||||||||||||
Associates | 1,166,701 | 1,086,937 | 58,738 | 4,296 | ||||||||||||
Joint ventures | 1,318,207 | 1,276,779 | 33,020 | (2,339 | ) | |||||||||||
Total | 2,484,908 | 2,363,716 | 91,758 | 1,957 | ||||||||||||
As of and for the year ended March 31, 2009 | ||||||||||||||||
Associates | 1,222,029 | 1,155,791 | 52,540 | 5,576 | ||||||||||||
Joint ventures | 738,231 | 701,234 | 25,799 | (3,474 | ) | |||||||||||
Total | 1,960,260 | 1,857,025 | 78,339 | 2,102 | ||||||||||||
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14. | Property and equipment |
Land and | Equipment and | Construction in | ||||||||||||||
buildings | others1 | progress2 | Total | |||||||||||||
As of April 1, 2008 | ||||||||||||||||
Cost | 137,056 | 78,481 | 61 | 215,598 | ||||||||||||
Accumulated depreciation | (18,923 | ) | (41,283 | ) | – | (60,206 | ) | |||||||||
Accumulated impairment | (5,570 | ) | (351 | ) | – | (5,921 | ) | |||||||||
Net book value | 112,563 | 36,847 | 61 | 149,471 | ||||||||||||
Year ended March 31, 2009 | ||||||||||||||||
Additions | 4,247 | 15,998 | 2,537 | 22,782 | ||||||||||||
Disposals | (1,524 | ) | (3,010 | ) | – | (4,534 | ) | |||||||||
Impairment | (168 | ) | (50 | ) | – | (218 | ) | |||||||||
Depreciation charge | (2,030 | ) | (10,627 | ) | – | (12,657 | ) | |||||||||
Transfer | – | – | (1,654 | ) | (1,654 | ) | ||||||||||
Exchange differences | (33 | ) | 29 | – | (4 | ) | ||||||||||
Others | (10 | ) | (163 | ) | – | (173 | ) | |||||||||
Closing net book value | 113,045 | 39,024 | 944 | 153,013 | ||||||||||||
As of March 31, 2009 | ||||||||||||||||
Cost | 131,785 | 77,601 | 944 | 210,330 | ||||||||||||
Accumulated depreciation | (17,747 | ) | (38,229 | ) | – | (55,976 | ) | |||||||||
Accumulated impairment | (993 | ) | (348 | ) | – | (1,341 | ) | |||||||||
Net book value | 113,045 | 39,024 | 944 | 153,013 | ||||||||||||
Year ended March 31, 2010 | ||||||||||||||||
Additions | 1,582 | 9,675 | 3,986 | 15,243 | ||||||||||||
Disposals | (2,857 | ) | (1,949 | ) | – | (4,806 | ) | |||||||||
Impairment | (207 | ) | (70 | ) | – | (277 | ) | |||||||||
Depreciation charge | (2,151 | ) | (9,095 | ) | – | (11,246 | ) | |||||||||
Addition through business combination | 258 | 310 | – | 568 | ||||||||||||
Transfer | – | – | (1,127 | ) | (1,127 | ) |
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Land and | Equipment and | Construction in | ||||||||||||||
buildings | others1 | progress2 | Total | |||||||||||||
Exchange differences | 0 | (162 | ) | – | (162 | ) | ||||||||||
Others | (32 | ) | (93 | ) | – | (125 | ) | |||||||||
Closing net book value | 109,638 | 37,640 | 3,803 | 151,081 | ||||||||||||
As of March 31, 2010 | ||||||||||||||||
Cost | 130,282 | 78,879 | 3,803 | 212,964 | ||||||||||||
Accumulated depreciation | (19,614 | ) | (40,834 | ) | – | (60,448 | ) | |||||||||
Accumulated impairment | (1,030 | ) | (405 | ) | – | (1,435 | ) | |||||||||
Net book value | 109,638 | 37,640 | 3,803 | 151,081 | ||||||||||||
1. | Including assets subject to operating leases with a net carrying amount of 25,884 million yen, 26,709 million yen and 25,032 million yen as of March 31, 2010, March 31, 2009 and April 1, 2008, respectively. The depreciation charge derived from assets subject to operating leases is 5,905 million yen and 7,408 million yen for the years ended March 31, 2010 and 2009, respectively, which is classified within Other expenses in the consolidated income statement. | |
2. | Including the costs related to the construction of Marunouchi Building which commenced in January 2009. The estimated total expenditure for the construction is 26,800 million yen. STB had outstanding balances for contractual commitments related to the construction in the amount of 18,347 million yen and 11,015 million yen as of March 31, 2010 and 2009, respectively. |
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15. | Investment property |
Investment | ||||
property | ||||
As of April 1, 2008 | ||||
Cost | 49,211 | |||
Accumulated depreciation | (102 | ) | ||
Accumulated impairment | – | |||
Net book value | 49,109 | |||
Year ended March 31, 2009 | ||||
Additions | 28,374 | |||
Disposals | (4,847 | ) | ||
Impairment | – | |||
Depreciation charge | (588 | ) | ||
Others | (3 | ) | ||
Closing net book value | 72,045 | |||
As of March 31, 2009 | ||||
Cost | 72,728 | |||
Accumulated depreciation | (683 | ) | ||
Accumulated impairment | – | |||
Net book value | 72,045 | |||
Year ended March 31, 2010 | ||||
Additions | 2 | |||
Disposals | (2,444 | ) | ||
Impairment | (2,725 | ) | ||
Depreciation charge | (855 | ) | ||
Others | 5 | |||
Closing net book value | 66,028 | |||
As of March 31, 2010 | ||||
Cost | 70,282 | |||
Accumulated depreciation | (1,529 | ) | ||
Accumulated impairment | (2,725 | ) | ||
Net book value | 66,028 | |||
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16. | Intangible assets |
Software | ||||||||||||||||||||
(Internally | Software | |||||||||||||||||||
Goodwill | developed) | (Purchased) | Other | Total | ||||||||||||||||
As of April 1, 2008 | ||||||||||||||||||||
Cost | 115,509 | 83,788 | 569 | 1,029 | 200,895 | |||||||||||||||
Accumulated amortization | – | (48,495 | ) | (396 | ) | (780 | ) | (49,671 | ) | |||||||||||
Accumulated impairment | (50,595 | ) | – | – | (172 | ) | (50,767 | ) | ||||||||||||
Net book value | 64,914 | 35,293 | 173 | 77 | 100,457 | |||||||||||||||
Current | – | – | – | – | – | |||||||||||||||
Non-current | 64,914 | 35,293 | 173 | 77 | 100,457 | |||||||||||||||
Year ended March 31, 2009 | ||||||||||||||||||||
Additions | – | 14,941 | 120 | 11 | 15,072 | |||||||||||||||
Disposals | – | (312 | ) | (0 | ) | (4 | ) | (316 | ) | |||||||||||
Impairment | (17,088 | )1 | – | – | – | (17,088 | ) | |||||||||||||
Amortization charge | – | (11,398 | ) | (87 | ) | (18 | ) | (11,503 | ) |
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Software | ||||||||||||||||||||
(Internally | Software | |||||||||||||||||||
Goodwill | developed) | (Purchased) | Other | Total | ||||||||||||||||
Exchange differences | – | (78 | ) | (4 | ) | – | (82 | ) | ||||||||||||
Others | – | 1 | 1 | 2 | 4 | |||||||||||||||
Closing net book value | 47,826 | 38,447 | 203 | 68 | 86,544 | |||||||||||||||
As of March 31, 2009 | ||||||||||||||||||||
Cost | 115,509 | 97,401 | 642 | 991 | 214,543 | |||||||||||||||
Accumulated amortization | – | (58,954 | ) | (439 | ) | (752 | ) | (60,145 | ) | |||||||||||
Accumulated impairment | (67,683 | ) | – | – | (171 | ) | (67,854 | ) | ||||||||||||
Net book value | 47,826 | 38,447 | 203 | 68 | 86,544 | |||||||||||||||
Current | – | – | – | – | – | |||||||||||||||
Non-current | 47,826 | 38,447 | 203 | 68 | 86,544 | |||||||||||||||
Year ended March 31, 2010 | ||||||||||||||||||||
Additions | – | 10,557 | 75 | 27 | 10,659 | |||||||||||||||
Additions through business combination | 54,5362 | 85 | 0 | 31,920 | 86,541 | |||||||||||||||
Disposals | – | (36 | ) | (1 | ) | (1 | ) | (38 | ) | |||||||||||
Impairment | (11,667 | )1 | (155 | ) | – | (21 | ) | (11,843 | ) | |||||||||||
Amortization charge | – | (12,053 | ) | (77 | ) | (1,383 | ) | (13,513 | ) | |||||||||||
Exchange differences | – | (13 | ) | (0 | ) | (0 | ) | (13 | ) | |||||||||||
Others | – | (1 | ) | (3 | ) | (4 | ) | (8 | ) | |||||||||||
Closing net book value | 90,695 | 36,831 | 197 | 30,606 | 158,329 | |||||||||||||||
As of March 31, 2010 | ||||||||||||||||||||
Cost | 170,045 | 97,293 | 704 | 32,899 | 300,941 | |||||||||||||||
Accumulated amortization | – | (60,307 | ) | (507 | ) | (2,102 | ) | (62,916 | ) | |||||||||||
Accumulated impairment | (79,350 | ) | (155 | ) | – | (191 | ) | (79,696 | ) | |||||||||||
Net book value | 90,695 | 36,831 | 197 | 30,606 | 158,329 | |||||||||||||||
Current | – | – | – | – | – | |||||||||||||||
Non-current | 90,695 | 36,831 | 197 | 30,606 | 158,329 |
1. | Goodwill impairment losses were recognized for First Credit Corporation (“First Credit”) within Wholesale Financial Services Business segment for the years ended March 31, 2010 and 2009 as well as at the date of transition to IFRS. | |
2. | During the fiscal year ended March 31, 2010, STB acquired 98.59% share of Nikko Asset Management Co., Ltd. (“NAM”), which resulted in the recognition of goodwill amounting to 54,536 million yen. Refer to Note 42 “Acquisition and disposition” for the transaction details. |
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March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Sumishin Matsushita Financial Services Co., Ltd. | 4,010 | 4,010 | 4,010 | |||||||||
First Credit Corporation | 14,064 | 25,731 | 42,819 | |||||||||
Life Housing Loan, Ltd. | 18,085 | 18,085 | 18,085 | |||||||||
Nikko Asset Management Co., Ltd. | 54,536 | – | – | |||||||||
Total | 90,695 | 47,826 | 64,914 | |||||||||
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Discount rate | ||||||
March 31, 2010 | March 31, 2009 | |||||
Sumishin Matsushita Financial Services Co., Ltd. | 7.26 | % | 7.21% | |||
First Credit Corporation | 9.20 | % | 8.40% | |||
Life Housing Loan, Ltd. | 6.23 | % | 6.22% | |||
Nikko Asset Management Co., Ltd. | 10.69 | % | – |
17. | Other assets |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Accounts receivable1 | 104,747 | 129,072 | 65,817 | |||||||||
Accrued income | 19,889 | 12,186 | 22,757 | |||||||||
Prepaid pension expenses (Note 26) | 72,343 | 68,391 | 19,414 | |||||||||
Cash collateral | 56,139 | 50,144 | 5,076 | |||||||||
Financial Stabilization Fund2 | 62,144 | 60,127 | 58,176 | |||||||||
Security deposit | 17,431 | 16,681 | 16,786 | |||||||||
Others | 52,322 | 49,896 | 54,059 | |||||||||
Total | 385,015 | 386,497 | 242,085 | |||||||||
Current | 195,378 | 208,408 | 113,413 | |||||||||
Non-current | 189,637 | 178,089 | 128,672 |
1. | The majority of the balance represents receivables from securities transactions. | |
2. | The balance represents 65 billion yen of deposits, placed in funds established by the Japanese government. These deposits are carried at amortized cost and their carrying amounts are 62,144 million yen, 60,127 million yen and 58,176 million yen as of March 31, 2010, March 31, 2009 and April 1, 2008, respectively. The background and nature of these deposits are explained below: |
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18. | Deposits |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Non-interest-bearing deposits | 347,923 | 250,258 | 284,874 | |||||||||
Interest-bearing deposits | ||||||||||||
Current accounts | 1,806,403 | 1,627,996 | 1,683,655 | |||||||||
Time deposits | 10,080,439 | 9,987,922 | 9,878,590 | |||||||||
Other deposits | 70 | 604 | 50 | |||||||||
Certificates of deposits | 2,350,884 | 2,303,517 | 2,456,905 | |||||||||
Total of interest-bearing deposits | 14,237,796 | 13,920,039 | 14,019,200 | |||||||||
Total of deposits | 14,585,719 | 14,170,297 | 14,304,074 | |||||||||
Current | 9,840,755 | 9,321,993 | 9,373,440 | |||||||||
Non-current | 4,744,964 | 4,848,304 | 4,930,634 |
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March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Cash collateral on securities lent | – | – | 131,957 | |||||||||
Repurchase agreements | 601,787 | 1,236,776 | 790,589 | |||||||||
Total | 601,787 | 1,236,776 | 922,546 | |||||||||
Current | 601,787 | 1,236,776 | 922,546 | |||||||||
Non-current | – | – | – |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Equity securities | ||||||||||||
Listed | 7,386 | 2,792 | 8,574 | |||||||||
Current | 7,386 | 2,792 | 8,574 | |||||||||
Non-current | – | – | – |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Outstanding balance at year-end | 83,337 | 77,578 | 120,170 |
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Average balance outstanding during the fiscal year | 112,056 | 117,889 | ||||||
Maximum balance at any month-end during the fiscal year | 669,461 | 143,381 | ||||||
Weighted average interest rate during the fiscal year | 0.06 | % | 0.24 | % |
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March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Outstanding balance at year-end | 655,047 | 762,484 | 961,133 | |||||||||
Current | 443,579 | 469,909 | 550,185 | |||||||||
Non-current | 211,468 | 292,575 | 410,948 |
Currency | Maturity | Interest Rate | March 31, 2010 | March 31, 2009 | April 1, 2008 | |||||||||||||
Commercial paper | JPY | 2010 | 0.11%–0.17% | 552,067 | 718,862 | 747,254 | ||||||||||||
Unsecured subordinated bonds | ||||||||||||||||||
Fixed rate bonds | JPY | 2013–2027 | 1.37%–2.78% | 295,815 | 296,427 | 297,047 | ||||||||||||
Adjustable rate bonds1 | JPY | 2019 | 2.14% | 34,868 | – | – | ||||||||||||
Adjustable rate bonds1 | JPY | 2019 | 6 month LIBOR+1.15% | 19,924 | – | – | ||||||||||||
Euro perpetual subordinated notes8 | ||||||||||||||||||
Adjustable rate notes2 | JPY | – | 2.02%–2.81% | 32,244 | 28,352 | 29,440 | ||||||||||||
Adjustable rate notes3 | JPY | – | 1 month LIBOR+1.00% | – | 49,982 | 49,932 | ||||||||||||
Adjustable rate notes4 | JPY | – | 6 month LIBOR + 0.54%–1.05% | 34,423 | 34,390 | 44,968 | ||||||||||||
Adjustable rate notes5 | GBP | – | 5.83% | 35,465 | 70,205 | 99,918 | ||||||||||||
Euro medium-term subordinated notes | ||||||||||||||||||
Adjustable rate notes6 | JPY | 2011–2016 | 1.41%–2.25% | 43,818 | 43,957 | 59,447 | ||||||||||||
Adjustable rate notes7 | JPY | 2011–2014 | 6 month LIBOR + 0.25%–1.50% | 25,464 | 25,451 | 10,890 | ||||||||||||
Senior Bonds | ||||||||||||||||||
Fixed rate bonds | USD | 2020 | 5.95%–8.80% | 1,302 | 1,376 | 2,755 | ||||||||||||
Floating rate bonds | USD | 2020 | 6 month LIBOR +0.25%–3.55% | 51,020 | 135,068 | 316,380 | ||||||||||||
Floating rate bonds | EUR | 2024 | 6 month LIBOR + 0.60%–6.00% | 44,398 | 46,753 | 56,952 | ||||||||||||
Unsecured Bonds | ||||||||||||||||||
Fixed rate bonds | JPY | 2012 | 0.94% | 3,000 | – | 2,000 | ||||||||||||
Floating rate bonds | JPY | 2010–2013 | 6 month TIBOR + 0.10%–0.15% | 13,000 | 15,000 | 13,000 | ||||||||||||
Total | 1,186,808 | 1,465,823 | 1,729,983 | |||||||||||||||
Current | 558,067 | 720,862 | 749,254 | |||||||||||||||
Non-current | 628,741 | 744,961 | 980,729 |
1. | These funds include astep-up feature where the interest rates are increased to 6 month LIBOR + 2.65% after five years. | |
2. | These funds include astep-up feature where the interest rates are increased to 6 month LIBOR + 2.09% to 3.30% after five or seven years. | |
3. | These funds include astep-up feature where the interest rates are increased to 1 month LIBOR + 2.50% after five years. |
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4. | These funds include astep-up feature where the interest rates are increased to 6 month LIBOR + 2.04% to 2.55% after five or seven years. | |
5. | These funds include astep-up feature where the interest rates are increased to 6 month LIBOR + 2.14% after five years. | |
6. | These funds include astep-up feature where the interest rates are increased to 6 month LIBOR + 1.75% to 2.35% after five to ten years. | |
7. | These funds include astep-up feature where the interest rates are increased to 6 month LIBOR + 1.75% to 3.00% after five years. | |
8. | Perpetual notes are redeemable at the option of STB. |
Currency | Maturity | Interest Rate | March 31, 2010 | March 31, 2009 | April 1, 2008 | |||||||||||||
Borrowed funds | JPY | 2010–2020 | 0.01%–2.22% | 1,106,244 | 1,277,645 | 691,641 | ||||||||||||
Subordinated borrowed funds | ||||||||||||||||||
Fixed rate borrowing | JPY | 2013 | 2.05% | – | – | 4,888 | ||||||||||||
Adjustable rate borrowings1 | JPY | 2017–2022 | 1.77%–2.90% | 40,806 | 40,926 | 31,045 | ||||||||||||
Perpetual subordinated borrowed funds5 | ||||||||||||||||||
Adjustable rate borrowings2 | JPY | – | 2.01%–3.65% | 65,154 | 75,202 | 35,225 | ||||||||||||
Adjustable rate borrowings3 | JPY | – | 6 month LIBOR + 2.10% | 20,000 | – | – | ||||||||||||
Adjustable rate borrowings4 | JPY | – | 6 month LIBOR + 1.75%–1.85% | – | 35,000 | 55,000 | ||||||||||||
Redeemable instruments6 | JPY/USD/EUR | – | – | 151,003 | 111,587 | 120,504 | ||||||||||||
Total | 1,383,207 | 1,540,360 | 938,303 | |||||||||||||||
Current | 562,797 | 868,650 | 310,115 | |||||||||||||||
Non-current | 820,410 | 671,710 | 628,188 |
1. | These funds include astep-up feature where the interest rates are increased to 6 month LIBOR + 1.85% to 3.20% after five to ten years. | |
2. | These funds include astep-up feature where the interest rates are increased to 6 month LIBOR + 2.18% to 3.85% after five to ten years. | |
3. | These funds include astep-up feature where the interest rates are increased to 6 month LIBOR + 3.60% after three years. | |
4. | These funds include astep-up feature where the interest rates are increased to 6 month LIBOR + 3.25% to 3.35% after five to ten years. | |
5. | Perpetual borrowed funds are redeemable at the option of STB. |
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6. | Redeemable instruments represent equity instruments issued by limited life SPEs controlled by STB. The life spans of these SPEs are predetermined at their inception and range from three years to fifty years. Such instruments are puttable and include a contractual obligation to repurchase or redeem for cash or another financial asset on exercise of the put. |
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Net deferred tax assets at beginning of the year | 208,211 | 57,574 | ||||||
Tax (charged)/credited to the consolidated income statement | (48,438 | ) | 19,686 | |||||
Tax (charged)/credited to components of other comprehensive income | (84,457 | ) | 131,384 | |||||
Acquisition of subsidiaries | (11,441 | ) | – | |||||
Others | (996 | ) | (433 | ) | ||||
Net deferred tax assets at end of the year | 62,879 | 208,211 | ||||||
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March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Deferred tax assets: | ||||||||||||
Allowance for credit losses | 34,556 | 50,807 | 20,124 | |||||||||
Loss on valuation of investment securities | 39,645 | 45,445 | 44,914 | |||||||||
Retirement benefit obligations | 38,171 | 37,307 | 40,150 | |||||||||
Available-for-sale financial assets | – | 36,796 | – | |||||||||
Unused tax losses | 7,514 | 3,341 | 7,114 | |||||||||
Exchange differences on translation of foreign operations | 5,036 | 4,953 | – | |||||||||
Cash flow hedge | 337 | – | – | |||||||||
Others | 45,315 | 45,903 | 49,675 | |||||||||
Total deferred tax assets | 170,574 | 224,552 | 161,977 | |||||||||
Effect of netting | (90,026 | ) | (11,907 | ) | (96,117 | ) | ||||||
Net deferred tax assets | 80,548 | 212,645 | 65,860 | |||||||||
Deferred tax liabilities: | ||||||||||||
Available-for-sale financial assets | 50,040 | 922 | 89,058 | |||||||||
Cash flow hedge | – | 1,035 | 2,534 | |||||||||
Retirement benefit trust | 23,980 | – | – | |||||||||
Others | 33,675 | 14,384 | 12,811 | |||||||||
Total deferred tax liabilities | 107,695 | 16,341 | 104,403 | |||||||||
Effect of netting | (90,026 | ) | (11,907 | ) | (96,117 | ) | ||||||
Net deferred tax liabilities | 17,669 | 4,434 | 8,286 | |||||||||
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Allowance for credit losses | (16,251 | ) | 30,683 | |||||
Loss on valuation of investment securities | (5,800 | ) | 531 | |||||
Retirement benefit obligations | 864 | (2,843 | ) | |||||
Unused tax losses | 4,173 | (3,773 | ) | |||||
Derivatives | (11,241 | ) | 308 | |||||
Others | (20,183 | ) | (5,220 | ) | ||||
Total deferred tax (charged) credited to the consolidated income statement | (48,438 | ) | 19,686 | |||||
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Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Net gains (losses) onavailable-for-sale financial assets | (85,914 | ) | 124,931 | |||||
Unwinding of cash flow hedges transferred to profit or loss | 1,373 | 1,500 | ||||||
Foreign currency transaction differences for foreign operations | 84 | 4,953 | ||||||
Total income tax expenses (charged) credited to components of other comprehensive income | (84,457 | ) | 131,384 | |||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Unused tax losses | 9,066 | – | – | |||||||||
Deductible temporary differences | 124,582 | 102,196 | 76,927 | |||||||||
Total | 133,648 | 102,196 | 76,927 | |||||||||
March 31, 2010 | March 31, 2009 | |||||||
Expiring in the year ending March 31: | ||||||||
2011 | 5,187 | – | ||||||
2012 | 280 | – | ||||||
2013 | 1,154 | – | ||||||
2014 | – | – | ||||||
2015 and thereafter | 2,445 | – | ||||||
Total | 9,066 | – | ||||||
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Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Current tax expenses | ||||||||
Tax expenses on income for the reporting period | 16,166 | 46,185 | ||||||
Deferred tax expenses | ||||||||
Origination and reversal of temporary differences | 48,438 | (19,686 | ) | |||||
Income tax expenses | 64,604 | 26,499 | ||||||
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Profit before income tax expenses | 146,718 | 41,779 | ||||||
Tax calculated at the Japan domestic tax rate of 40.6% for the years ended March 31, 2010 and 2009 | 59,567 | 16,962 | ||||||
Effect of: | ||||||||
Deferred tax assets not recognized | 12,527 | 10,257 | ||||||
Non-taxable dividend income | (2,559 | ) | (1,598 | ) | ||||
Others | (4,931 | ) | 878 | |||||
Income tax expenses | 64,604 | 26,499 | ||||||
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March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Present value of funded obligations | (231,956 | ) | (226,397 | ) | (218,472 | ) | ||||||
Present value of unfunded obligations | (7,959 | ) | (6,690 | ) | (7,473 | ) | ||||||
Present value of total obligations | (239,915 | ) | (233,087 | ) | (225,945 | ) | ||||||
Fair value of plan assets | 263,784 | 223,348 | 235,704 | |||||||||
Present value of net obligations | 23,869 | (9,739 | ) | 9,759 | ||||||||
Unrecognized actuarial gains | 39,274 | 69,502 | 0 | |||||||||
Unrecognized past service cost | (4 | ) | (4 | ) | (4 | ) | ||||||
Net asset in the consolidated statement of financial position | 63,139 | 59,759 | 9,755 | |||||||||
Liability recognized in the consolidated statement of financial position | (9,204 | ) | (8,632 | ) | (9,659 | ) | ||||||
Asset recognized in the consolidated statement of financial position (Note 17) | 72,343 | 68,391 | 19,414 |
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Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Balance at beginning of the year | (233,087 | ) | (225,945 | ) | ||||
Current service cost | (5,212 | ) | (4,722 | ) | ||||
Interest cost | (5,265 | ) | (5,300 | ) | ||||
Employee contributions | (752 | ) | (740 | ) | ||||
Benefits paid | 8,936 | 9,129 | ||||||
Past service costs | (3 | ) | (52 | ) | ||||
Acquisition of subsidiary | (820 | ) | – | |||||
Balance at end of the year – estimated | (236,203 | ) | (227,630 | ) | ||||
Actuarial losses | (3,712 | ) | (5,457 | ) | ||||
Balance at end of the year | (239,915 | ) | (233,087 | ) | ||||
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Balance at beginning of the year | 223,348 | 235,704 | ||||||
Expected return on plan assets | 12,895 | 11,212 | ||||||
Employer contributions | 5,649 | 47,459 | ||||||
Employee contributions | 752 | 740 | ||||||
Benefits paid | (8,251 | ) | (7,726 | ) | ||||
Balance at end of the year – estimated | 234,393 | 287,389 | ||||||
Actuarial gains (losses) | 29,391 | (64,041 | ) | |||||
Balance at end of the year | 263,784 | 223,348 | ||||||
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Current service cost | 5,212 | 4,722 | ||||||
Interest cost | 5,265 | 5,300 | ||||||
Expected return on plan assets | (12,895 | ) | (11,212 | ) | ||||
Past service costs | 3 | 52 | ||||||
Net actuarial losses recognized during the year | 4,664 | – | ||||||
Total included in staff costs | 2,249 | (1,138 | ) | |||||
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March 31, 2010 | March 31, 2009 | |||||||
Discount rate | 2.25 | % | 2.35 | % | ||||
Expected return on plan assets | 5.77 | % | 4.77 | % | ||||
Future salary increases | 4.45 | % | 4.52 | % |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Retiring at date of the consolidated statement of financial position | ||||||||||||
Male | 23.32 | 22.83 | 22.83 | |||||||||
Female | 29.29 | 28.71 | 28.71 |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Equity | 67.8 | % | 59.1 | % | 62.3 | % | ||||||
Debt | 24.2 | % | 28.8 | % | 27.1 | % | ||||||
Others | 8.0 | % | 12.1 | % | 10.6 | % | ||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Present value of defined benefit obligation | (239,915 | ) | (233,087 | ) | (225,945 | ) | ||||||
Fair value of plan assets | 263,784 | 223,348 | 235,704 | |||||||||
Deficit/(surplus) in the plan | 23,869 | (9,739 | ) | 9,759 | ||||||||
Experience adjustments on plan liabilities | (2,837 | ) | (996 | ) | – | |||||||
Experience adjustments on plan assets | 29,391 | (64,041 | ) | – |
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Exercise price | Outstanding | |||||||
(yen) | (number of | |||||||
shares) | ||||||||
As of April 1, 2009 | – | – | ||||||
Granted | 625 | 19,724,100 | ||||||
Forfeited | 625 | (165,000 | ) | |||||
Exercised | – | – | ||||||
Lapsed | – | – | ||||||
As of March 31, 2010 | 625 | 19,559,100 | ||||||
Exercisable as of March 31, 2010 | – | – |
Exercise price | March 31, 2010 | |||||||
(yen) | (number of | |||||||
shares) | ||||||||
Expiry date 2020 | 625 | 19,559,100 |
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March 31, 2010 | ||||
Weighted-average fair value of options granted, at grant date (yen) | 344,810 | |||
Assumptions made: | ||||
Dividend yield(1) | 2.37% | |||
Risk-free interest rate(2) | 0.90% | |||
Expected life(3) | 6.7 years | |||
Expected volatility(4) | 44% |
(1) | The dividend yield was based on the median earnings yield of comparable Japanese firms, instead of NAM’s planned dividend rate. | |
(2) | The risk-free interest rate was based on the Japanese Treasury Strip yield as of each valuation date. | |
(3) | The expected life was determined as an average of contractual life and vesting life, assuming the occurrence of an initial public offering at projected dates. | |
(4) | The expected volatility was based upon the median historical volatility for Japanese comparable companies rounded to the nearest percentage. |
March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Margin deposits | 246,953 | 276,885 | 175,771 | |||||||||
Accrued expenses | 108,106 | 98,810 | 87,299 | |||||||||
Accounts payable | 95,232 | 116,261 | 80,313 | |||||||||
Others | 105,119 | 64,484 | 75,706 | |||||||||
Total | 555,410 | 556,440 | 419,089 | |||||||||
Current | 503,964 | 532,478 | 386,093 | |||||||||
Non-current | 51,446 | 23,962 | 32,996 |
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Number of shares | ||||||||||||||||||||||||||||
(thousands) | ||||||||||||||||||||||||||||
Ordinary | Preference | Ordinary | Preference | Capital | Treasury | |||||||||||||||||||||||
shares | shares | shares | shares | surplus | shares | Total | ||||||||||||||||||||||
April 1, 2008 | 1,675,128 | – | 287,537 | – | 242,556 | (441 | ) | 529,652 | ||||||||||||||||||||
Purchase of treasury shares | – | – | – | – | – | (67 | ) | (67 | ) | |||||||||||||||||||
Sales of treasury shares | – | – | – | – | (0 | ) | 54 | 54 | ||||||||||||||||||||
March 31, 2009 | 1,675,128 | – | 287,537 | – | 242,556 | (454 | ) | 529,639 | ||||||||||||||||||||
Proceeds from shares issued | – | 109,000 | – | 54,500 | 54,500 | – | 109,000 | |||||||||||||||||||||
Purchase of treasury shares | – | – | – | – | – | (18 | ) | (18 | ) | |||||||||||||||||||
Sales of treasury shares | – | – | – | – | (4 | ) | 7 | 3 | ||||||||||||||||||||
March 31, 2010 | 1,675,128 | 109,000 | 287,537 | 54,500 | 297,052 | (465 | ) | 638,624 | ||||||||||||||||||||
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March 31, 2010 | March 31, 2009 | April 1, 2008 | ||||||||||
Net gains (losses) onavailable-for-sale financial assets | 72,903 | (53,406 | ) | 124,942 | ||||||||
Cash flow hedging reserve | (489 | ) | 1,513 | 3,706 | ||||||||
Foreign currency translation differences for foreign operations | (2,017 | ) | (1,684 | ) | – | |||||||
Share of accumulated other comprehensive income of associates and joint ventures | 508 | 208 | 4,876 | |||||||||
Total other reserves | 70,905 | (53,369 | ) | 133,524 | ||||||||
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Balance at beginning of the year | (53,406 | ) | 124,942 | |||||
Net change in fair value – gross | 168,382 | (276,489 | ) | |||||
Net amount transferred to profit or loss – gross | 44,103 | (26,823 | ) | |||||
Net movement – gross | 212,485 | (303,312 | ) | |||||
Net change in fair value – tax | (67,904 | ) | 112,399 | |||||
Net amount transferred to profit or loss – tax | (18,010 | ) | 12,532 | |||||
Net movement – tax | (85,914 | ) | 124,931 | |||||
Minority interest | (262 | ) | 33 | |||||
Balance at end of the year | 72,903 | (53,406 | ) | |||||
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Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Balance at beginning of the year | 1,513 | 3,706 | ||||||
Amortization – gross | (3,375 | ) | (3,693 | ) | ||||
Amortization – tax | 1,373 | 1,500 | ||||||
Balance at end of the year | (489 | ) | 1,513 | |||||
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Balance at beginning of the year | (1,684 | ) | – | |||||
Currency translation differences: | ||||||||
Group-gross | (420 | ) | (6,752 | ) | ||||
Group-tax | 84 | 4,953 | ||||||
Minority interest | 3 | 115 | ||||||
Balance at end of the year | (2,017 | ) | (1,684 | ) | ||||
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Balance at beginning of the year | 208 | 4,876 | ||||||
Share of other comprehensive income (losses) of associates and joint ventures | 300 | (4,668 | ) | |||||
Balance at end of the year | 508 | 208 | ||||||
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Available- | Financial | |||||||||||||||||||||||||||||||
for-sale | liabilities at | Total | ||||||||||||||||||||||||||||||
Held for | Held-to- | Loans and | financial | amortized | carrying | |||||||||||||||||||||||||||
Note | trading | maturity | receivables | assets | cost | amount | Fair value | |||||||||||||||||||||||||
As of March 31, 2010 | ||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||
Cash and deposits with banks | (a | ) | – | – | 1,027,819 | – | – | 1,027,819 | 1,027,819 | |||||||||||||||||||||||
Call loans | (a | ) | – | – | 112,455 | – | – | 112,455 | 112,455 | |||||||||||||||||||||||
Financial assets held for trading | 551,166 | – | – | – | – | 551,166 | 551,166 | |||||||||||||||||||||||||
Derivative financial instruments | 3,130,994 | – | – | – | – | 3,130,994 | 3,130,994 | |||||||||||||||||||||||||
Investment securities | (b | ) | – | 259,558 | 705,593 | 2,984,361 | – | 3,949,512 | 3,998,997 | |||||||||||||||||||||||
Loans and advances | (c | ) | – | – | 13,780,823 | – | – | 13,780,823 | 13,907,514 | |||||||||||||||||||||||
Other assets | (d | ) | – | – | 288,409 | – | – | 288,409 | 290,741 | |||||||||||||||||||||||
Total | 3,682,160 | 259,558 | 15,915,099 | 2,984,361 | – | 22,841,178 | 23,019,686 | |||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||
Deposits | (e | ) | – | – | – | – | 14,585,719 | 14,585,719 | 14,584,534 | |||||||||||||||||||||||
Call money | (a | ) | – | – | – | – | 79,519 | 79,519 | 79,519 | |||||||||||||||||||||||
Cash collateral on securities lent and repurchase agreements | (a | ) | – | – | – | – | 601,787 | 601,787 | 601,787 | |||||||||||||||||||||||
Financial liabilities held for trading | 7,386 | – | – | – | – | 7,386 | 7,386 | |||||||||||||||||||||||||
Derivative financial instruments | 2,827,439 | – | – | – | – | 2,827,439 | 2,827,439 | |||||||||||||||||||||||||
Due to trust accounts | (a | ) | – | – | – | – | 83,337 | 83,337 | 83,337 | |||||||||||||||||||||||
Principal guaranteed trust certificates | (f | ) | – | – | – | – | 655,047 | 655,047 | 655,047 | |||||||||||||||||||||||
Debt securities issued | (a | )(f) | – | – | – | – | 1,186,808 | 1,186,808 | 1,186,249 | |||||||||||||||||||||||
Borrowed funds | (a | )(f) | – | – | – | – | 1,383,207 | 1,383,207 | 1,404,869 | |||||||||||||||||||||||
Other liabilities | (a | ) | – | – | – | – | 472,778 | 472,778 | 472,778 | |||||||||||||||||||||||
Total | 2,834,825 | – | – | – | 19,048,202 | 21,883,027 | 21,902,945 | |||||||||||||||||||||||||
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Available- | Financial | |||||||||||||||||||||||||||||||
for-sale | liabilities at | Total | ||||||||||||||||||||||||||||||
Held for | Held-to- | Loans and | financial | amortized | carrying | |||||||||||||||||||||||||||
Note | trading | maturity | receivables | assets | cost | amount | Fair value | |||||||||||||||||||||||||
As of March 31, 2009 | ||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||
Cash and deposits with banks | (a | ) | – | – | 668,184 | – | – | 668,184 | 668,184 | |||||||||||||||||||||||
Call loans | (a | ) | – | – | 29,819 | – | – | 29,819 | 29,819 | |||||||||||||||||||||||
Cash collateral on securities borrowed | (a | ) | – | – | 295,942 | – | – | 295,942 | 295,942 | |||||||||||||||||||||||
Financial assets held for trading | 710,082 | – | – | – | – | 710,082 | 710,082 | |||||||||||||||||||||||||
Derivative financial instruments | 4,027,339 | – | – | – | – | 4,027,339 | 4,027,339 | |||||||||||||||||||||||||
Investment securities | (b | ) | – | 356,274 | 786,433 | 3,647,366 | – | 4,790,073 | 4,761,557 | |||||||||||||||||||||||
Loans and advances | (c | ) | – | – | 13,494,699 | – | – | 13,494,699 | 13,650,374 | |||||||||||||||||||||||
Other assets | (d | ) | – | – | 292,027 | – | – | 292,027 | 295,659 | |||||||||||||||||||||||
Total | 4,737,421 | 356,274 | 15,567,104 | 3,647,366 | – | 24,308,165 | 24,438,956 | |||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||
Deposits | (e | ) | – | – | – | – | 14,170,297 | 14,170,297 | 14,172,912 | |||||||||||||||||||||||
Call money | (a | ) | – | – | – | – | 133,182 | 133,182 | 133,182 | |||||||||||||||||||||||
Cash collateral on securities lent and repurchase agreements | (a | ) | – | – | – | – | 1,236,776 | 1,236,776 | 1,236,776 | |||||||||||||||||||||||
Financial liabilities held for trading | 2,792 | – | – | – | – | 2,792 | 2,792 | |||||||||||||||||||||||||
Derivative financial instruments | 3,751,432 | – | – | – | – | 3,751,432 | 3,751,432 | |||||||||||||||||||||||||
Due to trust accounts | (a | ) | – | – | – | – | 77,578 | 77,578 | 77,578 | |||||||||||||||||||||||
Principal guaranteed trust certificates | (f | ) | – | – | – | – | 762,484 | 762,484 | 762,484 | |||||||||||||||||||||||
Debt securities issued | (a | )(f) | – | – | – | – | 1,465,823 | 1,465,823 | 1,450,822 | |||||||||||||||||||||||
Borrowed funds | (a | )(f) | – | – | – | – | 1,540,360 | 1,540,360 | 1,541,919 | |||||||||||||||||||||||
Other liabilities | (a | ) | – | – | – | – | 510,322 | 510,322 | 510,322 | |||||||||||||||||||||||
Total | 3,754,224 | – | – | – | 19,896,822 | 23,651,046 | 23,640,219 | |||||||||||||||||||||||||
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32. | Financial instruments carried at fair value |
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• | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. This category includes active listed equity securities on major exchanges (for example, the Tokyo Stock Exchange,) highly liquid government bonds (G5 securities), and actively exchange-traded derivatives such as futures. | |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, in valuation models). This category includes certain government bonds, municipal bonds, corporate bonds and the majority of OTC derivatives held by STB. The sources of input parameters like LIBOR yield curve or volatilities are based on available observable market data. | |
• | Level 3 – Valuation techniques using significant inputs for the asset or liability that are not based on observable market data (unobservable inputs). This category includes private equity investments, certain credit default swaps, collateralized debt obligations (“CDOs”), collateralized loan obligations (“CLOs”), mortgage-backed securities (“MBSs”) and certain OTC derivative contracts (requiring unobservable inputs such as long-dated volatilities). |
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Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of March 31, 2010 | ||||||||||||||||
Financial assets at fair value through profit or loss | ||||||||||||||||
Financial assets held for trading: | ||||||||||||||||
Equity securities | 88,896 | 1,120 | 457 | 90,473 | ||||||||||||
Debt securities | 25,155 | 435,538 | – | 460,693 | ||||||||||||
Derivatives | 17,541 | 3,104,765 | 8,688 | 3,130,994 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Equity securities | 514,360 | 887 | 156,908 | 672,155 | ||||||||||||
Debt securities | 1,666,113 | 605,751 | 40,342 | 2,312,206 | ||||||||||||
Total | 2,312,065 | 4,148,061 | 206,395 | 6,666,521 | ||||||||||||
Financial liabilities at fair value through profit or loss | ||||||||||||||||
Financial liabilities held for trading: | ||||||||||||||||
Equity securities | 7,386 | – | – | 7,386 | ||||||||||||
Derivatives | 17,752 | 2,793,676 | 16,011 | 2,827,439 | ||||||||||||
Total | 25,138 | 2,793,676 | 16,011 | 2,834,825 | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of March 31, 2009 | ||||||||||||||||
Financial assets at fair value through profit or loss | ||||||||||||||||
Financial assets held for trading: | ||||||||||||||||
Equity securities | 37,209 | 2,230 | – | 39,439 | ||||||||||||
Debt securities | 11,325 | 659,318 | – | 670,643 | ||||||||||||
Derivatives | 43,378 | 3,968,550 | 15,411 | 4,027,339 | ||||||||||||
Available-for-sale investments: | ||||||||||||||||
Equity securities | 420,042 | 888 | 182,833 | 603,763 | ||||||||||||
Debt securities | 2,351,192 | 590,067 | 102,344 | 3,043,603 | ||||||||||||
Total | 2,863,146 | 5,221,053 | 300,588 | 8,384,787 | ||||||||||||
Financial liabilities at fair value through profit or loss | ||||||||||||||||
Financial liabilities held for trading: | ||||||||||||||||
Equity securities | 2,792 | – | – | 2,792 | ||||||||||||
Derivatives | 41,392 | 3,677,928 | 32,112 | 3,751,432 | ||||||||||||
Total | 44,184 | 3,677,928 | 32,112 | 3,754,224 | ||||||||||||
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Available-for- | Net derivative | |||||||||||||||
Trading | sale financial | financial | ||||||||||||||
assets | assets | instruments | Total | |||||||||||||
As of April 1, 2009 | – | 285,177 | (16,701 | ) | 268,476 | |||||||||||
Gains and losses: | ||||||||||||||||
Profit or loss | 23 | (43,813 | ) | 2,050 | (41,740 | ) | ||||||||||
Other comprehensive income | – | 73,312 | – | 73,312 | ||||||||||||
Purchases | 434 | 86,955 | 208 | 87,597 | ||||||||||||
Sales | – | (179,739 | ) | (1,293 | ) | (181,032 | ) | |||||||||
Settlements | – | (19,167 | ) | 8,413 | (10,754 | ) | ||||||||||
Transfers into Level 3 | – | 6,521 | – | 6,521 | ||||||||||||
Transfers out of Level 3 | – | (11,996 | ) | – | (11,996 | ) | ||||||||||
As of March 31, 2010 | 457 | 197,250 | (7,323 | ) | 190,384 | |||||||||||
Total gains (losses) for Level 3 assets/liabilities held as of March 31, 2010 recognized in the consolidated income statement | 23 | (10,430 | )1 | 3,320 | (7,087 | ) | ||||||||||
Total gains (losses) for Level 3 assets/liabilities held as of March 31, 2010 recognized in other comprehensive income | – | 21,918 | – | 21,918 |
(1) | This amount relates to impairment losses on Level 3available-for-sale financial assets. |
• | Addition of 434 million yen in equity securities associated with the purchase of an investment fund by a consolidated subsidiary. |
• | Purchases of 83,938 million yen in equity products which primarily consisted of investment funds. |
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• | Sales and settlements of 65,378 million yen due to the disposal of foreign asset-backed securities and sales of 126,628 million yen due to the disposal of domestic and foreign investment funds. | |
• | Transfers into Level 3 were largely due to the de-consolidation of SPEs that were consolidated in the prior year. The SPEs were de-consolidated due to a reduction in the equity interests held by STB and the interests in these de-consolidated SPEs are recorded as investment securities as of March 31, 2010. | |
• | Transfers of 10,970 million yen were made out of Level 3 due to an increase in liquidity and availability of observable inputs such as market transactions for certain investment-grade asset-backed securities. Additionally, transfers out of Level 3 also included 1,026 million yen related to the consolidation of the securities issued by an SPE that were not subject to consolidation in the prior year, but the securities held by the SPE are consolidated in the current year. |
• | Net gain of 1,446 million yen primarily relating to credit derivatives. These gains were partially offset by losses relating to equity derivatives. | |
• | Settlement of 8,272 million yen of credit derivatives. |
Reflected in the consolidated | Reflected in other | |||||||||||||||
income statement | comprehensive income | |||||||||||||||
Favorable | Unfavorable | Favorable | Unfavorable | |||||||||||||
changes | changes | changes | changes | |||||||||||||
March 31, 2010 | ||||||||||||||||
Derivatives | 559 | 937 | – | – | ||||||||||||
Debt securities | – | – | 2,623 | 2,599 | ||||||||||||
Equity securities | – | – | 14,034 | 10,759 |
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33. | Net interest income |
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Interest income | ||||||||
Cash and deposits with banks | 1,522 | 10,840 | ||||||
Call loans | 239 | 2,710 | ||||||
Cash collateral on securities borrowed | 348 | 291 | ||||||
Investment securities | 53,976 | 99,362 | ||||||
Loans and advances | 234,409 | 273,219 | ||||||
Others | 3,500 | 5,526 | ||||||
Subtotal | 293,994 | 391,948 | ||||||
Interest expenses | ||||||||
Deposits | 76,410 | 118,003 | ||||||
Call money | 696 | 3,588 | ||||||
Cash collateral on securities lent and repurchase agreements | 2,580 | 29,383 | ||||||
Debt securities issued | 15,860 | 27,316 | ||||||
Borrowed funds | 8,576 | 11,939 | ||||||
Others | 3,771 | 5,515 | ||||||
Subtotal | 107,893 | 195,744 | ||||||
Total | 186,101 | 196,204 | ||||||
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34. | Provision for credit losses |
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Provision for loan losses | 27,905 | 96,982 | ||||||
Provision for off-balance sheet positions | (176 | ) | 123 | |||||
Total | 27,729 | 97,105 | ||||||
35. | Net fee and commission income |
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Fee and commission income | ||||||||
Trust fees | 47,445 | 53,758 | ||||||
Fees from asset management services | 24,388 | 9,473 | ||||||
Fees from securities custody services | 10,898 | 13,103 | ||||||
Subtotal | 82,731 | 76,334 | ||||||
Fees from stock transfer and real estate related services | 34,191 | 38,407 | ||||||
Fees from security-related business | 11,270 | 10,921 | ||||||
Fees from banking business | 9,533 | 9,021 | ||||||
Others | 10,204 | 11,677 | ||||||
Total fee and commission income | 147,929 | 146,360 | ||||||
Fee and commission expenses | 26,321 | 26,579 | ||||||
Net fee and commission income | 121,608 | 119,781 | ||||||
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36. | Net gains (losses) on financial instruments held for trading |
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Debt securities | 2,055 | 3,397 | ||||||
Equity securities | 5,751 | (1,102 | ) | |||||
Derivatives | 75,702 | (58,588 | ) | |||||
Total | 83,508 | (56,293 | ) | |||||
37. | Net other operating income |
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Financial assets classified asavailable-for-sale | ||||||||
Net (losses) gains on disposal of debt securities | (28,760 | ) | 107,300 | |||||
Net gains on disposal of equity securities | 22,667 | 11,746 | ||||||
Dividends | 18,957 | 47,916 | ||||||
Subtotal | 12,864 | 166,962 | ||||||
Financial assets classified as loans and receivables | ||||||||
Net gains (losses) on disposal of debt securities | 108 | (6 | ) |
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Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Others | – | 606 | ||||||
Subtotal | 108 | 600 | ||||||
Operating lease income | 22,349 | 20,920 | ||||||
Gains on sale of securities contributed to employee retirement benefit trust (Note 26) | – | 21,538 | ||||||
Gains on retirement of perpetual subordinated bonds | 9,083 | – | ||||||
Foreign exchange (losses) gains | (23,472 | ) | 1,227 | |||||
Others | 14,135 | 11,699 | ||||||
Subtotal | 22,095 | 55,384 | ||||||
Total | 35,067 | 222,946 | ||||||
38. | Impairment losses on investment securities |
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Investment securities classified asavailable-for-sale | ||||||||
Debt securities | 1,384 | 8,778 | ||||||
Equity securities | 15,144 | 103,311 | ||||||
Subtotal | 16,528 | 112,089 | ||||||
Investment securities classified as loans and receivables | ||||||||
Debt securities | 67 | 1,334 | ||||||
Subtotal | 67 | 1,334 | ||||||
Total | 16,595 | 113,423 | ||||||
39. | General and administration expenses |
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Wages and salaries | 76,728 | 74,787 | ||||||
Retirement benefits | 395 | 274 | ||||||
Social security and other personnel costs | 12,773 | 13,889 | ||||||
Pension costs | ||||||||
Defined contribution plan | 216 | 124 | ||||||
Defined benefit plan | 2,249 | (1,138 | ) | |||||
Total personnel cost | 92,361 | 87,936 | ||||||
IT and software cost | 13,798 | 15,631 | ||||||
Occupancy, furniture and equipment | 23,808 | 23,079 |
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Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Communication | 5,603 | 6,320 | ||||||
Research expenses | 5,770 | 1,071 | ||||||
Marketing and public relations | 4,029 | 5,248 | ||||||
Taxes other than income tax expenses | 6,260 | 6,328 | ||||||
Outsourcing expenses | 4,254 | 4,143 | ||||||
Office supplies | 6,456 | 6,710 | ||||||
Others | 19,428 | 19,366 | ||||||
Total operating and administration expenses | 89,406 | 87,896 | ||||||
Depreciation of property and equipment | 6,196 | 5,837 | ||||||
Amortization of intangible assets | 13,513 | 11,503 | ||||||
Total depreciation and amortization | 19,709 | 17,340 | ||||||
Total | 201,476 | 193,172 | ||||||
40. | Other expenses |
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Impairment of property and equipment, investment property and intangible assets | 14,845 | 17,306 | ||||||
Depreciation of operating lease assets | 5,905 | 7,408 | ||||||
Professional service fees | 3,125 | 5,910 | ||||||
Others | 11,327 | 8,820 | ||||||
Total | 35,202 | 39,444 | ||||||
41. | Per share information |
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Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Net profit attributable to equity holders of the Sumitomo Trust | 69,334 | 6,891 | ||||||
Dividends on redeemable preference shares | 341 | – | ||||||
Net profit attributable to ordinary equity holders of the Sumitomo Trust | 68,993 | 6,891 | ||||||
Weighted average number of ordinary shares issued (thousands) | 1,674,588 | 1,674,616 | ||||||
Weighted average number of ordinary shares for diluted earnings per share (thousands) | 1,674,588 | 1,674,616 | ||||||
Basic earnings per share (yen) | 41.2 | 4.1 | ||||||
Diluted earnings per share (yen) | 41.2 | 4.1 |
Dividend per | ||||||||
ordinary share | Dividend paid | |||||||
(Yen) | (Yen in millions) | |||||||
Dividends for the year ended March 31, 2009 | ||||||||
Interim dividend for the year ended March 31, 2009 | 8.50 | 14,234 | ||||||
Final dividend for the year ended March 31, 2009 | 1.50 | 2,512 | ||||||
Dividends for the year ended March 31, 2010 | ||||||||
Interim dividend for the year ended March 31, 2010 | 5.00 | 8,373 |
Dividend per | ||||||||
preference share | Dividend paid | |||||||
(Yen) | (Yen in millions) | |||||||
Interim dividend for the year ended March 31, 2010 | 3.13 | 341 |
Dividend per | ||||||||
ordinary share | Dividend paid | |||||||
(Yen) | (Yen in millions) | |||||||
Dividend for the year ended March 31, 2010 | 5.00 | 8,373 |
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Dividend per | ||||||||
preference share | Dividend paid | |||||||
(Yen) | (Yen in millions) | |||||||
Dividend for the year ended March 31, 2010 | 21.15 | 2,305 |
42. | Acquisition and disposition |
Cost of business combination: | ||||
Cash consideration | 115,669 | |||
Costs directly attributable to the acquisition | 823 | |||
Total | 116,492 | |||
Carrying amounts | ||||||||||||
before the | ||||||||||||
acquisition | Adjustments | Fair value | ||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | 26,172 | – | 26,172 | |||||||||
Investment securities | 10,495 | – | 10,495 | |||||||||
Investments in associates | 4,403 | 6,162 | 10,565 | |||||||||
Intangible assets | 1,663 | 30,342 | 32,005 | |||||||||
Deferred tax assets | 2,025 | 2,022 | 4,047 | |||||||||
Other assets | 12,133 | – | 12,133 | |||||||||
Total assets | 56,891 | 38,526 | 95,417 | |||||||||
Liabilities: | ||||||||||||
Accrued compensation | 1,780 | 4,862 | 6,642 | |||||||||
Accounts payable and accrued expenses | 4,138 | 312 | 4,450 | |||||||||
Commissions and fees payable | 2,862 | – | 2,862 | |||||||||
Deferred tax liabilities | 1 | 15,487 | 15,488 |
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Carrying amounts | ||||||||||||
before the | ||||||||||||
acquisition | Adjustments | Fair value | ||||||||||
Other liabilities | 2,640 | 150 | 2,790 | |||||||||
Total liabilities | 11,421 | 20,811 | 32,232 | |||||||||
Minority interest | 317 | 912 | 1,229 | |||||||||
Total identifiable net assets | 61,956 | |||||||||||
Goodwill on acquisition | 54,536 | |||||||||||
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Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Deposits with banks | 170 | 1 | ||||||
Call loans | 8,298 | 7,590 | ||||||
Financial assets held for trading | 69,468 | 30,953 | ||||||
Other assets | 1,004 | 753 | ||||||
Borrowed funds | (7,270 | ) | (6,765 | ) | ||||
Other liabilities | (670 | ) | (5,032 | ) | ||||
Net assets acquired | 71,000 | 27,500 | ||||||
Investments in previous years | (1,000 | ) | (500 | ) | ||||
Cash paid during the year | 70,000 | 27,000 | ||||||
Year ended | ||||||||
Mach 31, 2010 | March 31, 2009 | |||||||
Deposits with banks | 16,188 | 85,319 | ||||||
Call loans | 7,615 | 365 | ||||||
Financial assets held for trading | 35,910 | 14,450 | ||||||
Investment securities | 5,095 | 3,006 | ||||||
Loans and advances | 85,347 | 248,084 | ||||||
Other assets | 3,557 | 6,955 | ||||||
Derivative financial instruments | (2,206 | ) | (1,114 | ) | ||||
Debt securities issued | (81,163 | ) | (180,011 | ) | ||||
Borrowed funds | (9,141 | ) | (115,373 | ) | ||||
Other liabilities | (4,309 | ) | (306 | ) | ||||
Net assets disposed of | 56,893 | 61,375 | ||||||
Amount relating to non-controlling interests | 0 | 10 | ||||||
Losses on sale | 3,578 | 638 | ||||||
Reclassification to investment securities | 4,225 | 12,812 | ||||||
Cash received during the year | 49,090 | 47,915 | ||||||
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43. | Contingencies |
44. | Commitments |
March 31, 2010 | March 31, 2009 | |||||||
Less than one year | 7,082 | 5,854 | ||||||
Between one and five years | 9,501 | 7,116 | ||||||
More than five years | 16 | – | ||||||
Total | 16,599 | 12,970 | ||||||
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March 31, 2010 | March 31, 2009 | |||||||
Less than one year | 9,821 | 10,101 | ||||||
Between one and five years | 9,020 | 12,390 | ||||||
More than five years | 356 | 533 | ||||||
Total | 19,197 | 23,024 | ||||||
45. | Group entities |
Ownership interest | ||||||||||||||||
Country of | ||||||||||||||||
Name | Principal activities | incorporation | March 31, 2010 | March 31, 2009 | April 1, 2008 | |||||||||||
First Credit Corporation | Provision of real estate–secured loans | Japan | 100.00% | 100.00% | 100.00% | |||||||||||
Sumishin Matsushita Financial Services Co., Ltd.1 | Leasing, installment finance, credit card service | Japan | 77.38% | 66.00% | 66.00% | |||||||||||
STB Leasing Co., Ltd. | Leasing | Japan | 100.00% | 100.00% | 100.00% | |||||||||||
Life Housing Loan, Ltd. | Provision of housing loan | Japan | 100.00% | 100.00% | 100.00% | |||||||||||
Nikko Asset Management Co., Ltd.2 | Investment management business | |||||||||||||||
Investment advisory and agency business | Japan | 98.59% | – | – | ||||||||||||
STB Finance Cayman Ltd. | Funding vehicle | Cayman | 100.00% | 100.00% | 100.00% | |||||||||||
STB Preferred Capital (Cayman) Ltd. | Funding vehicle | Cayman | –3 | 100.00% | 100.00% | |||||||||||
STB Preferred Capital 2 (Cayman) Ltd. | Funding vehicle | Cayman | 100.00% | 100.00% | 100.00% | |||||||||||
STB Preferred Capital 3 (Cayman) Ltd. | Funding vehicle | Cayman | 100.00% | 100.00% | 100.00% | |||||||||||
STB Preferred Capital 4 (Cayman) Ltd. | Funding vehicle | Cayman | 100.00% | 100.00% | 4 | – | ||||||||||
STB Preferred Capital 5 (Cayman) Ltd. | Funding vehicle | Cayman | 100.00% | 100.00% | 4 | – |
1 | During the fiscal year ended March 31, 2010, STB acquired 11.38% share of Sumishin Matsushita Financial Services Co., Ltd. (“SMFC”), an existing subsidiary, from Panasonic Corporation. | |
2 | During the fiscal year ended March 31, 2010, STB acquired 98.59% share of Nikko Asset Management Co., Ltd. (“NAM”). | |
3 | During the fiscal year ended March 31, 2010, STB liquidated STB Preferred Capital (Cayman) Ltd. | |
4 | During the fiscal year ended March 31, 2009, STB newly formed STB Preferred Capital 4 (Cayman) Ltd. and STB Preferred Capital 5 (Cayman) Ltd. Upon the formation, these entities issued preferred securities to third party investors for the amount of 180,000 million yen. |
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• | Capital adequacy requirements | |
• | Local corporate laws, for example, limitations regarding the transfer of funds to the parent when the respective entity has a loss carried forward not covered by retained earnings or other components of capital. |
46. | Related-party transactions |
Year ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
Salaries and other related short-term benefits | 1,138 | 1,002 | ||||||
Post-employment benefits | – | 63 | ||||||
Total | 1,138 | 1,065 | ||||||
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Joint Ventures | Associates | |||||||||||||||
Year ended | Year ended | |||||||||||||||
March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 | |||||||||||||
Cash and deposits with banks: | ||||||||||||||||
At beginning of the year | 8,546 | – | – | – | ||||||||||||
Net increase/(decrease) | 3,319 | 8,546 | – | – | ||||||||||||
At end of the year | 11,865 | 8,546 | – | – | ||||||||||||
Call loans: | ||||||||||||||||
At beginning of the year | – | – | 10,000 | – | ||||||||||||
Net increase/(decrease) | – | – | (10,000 | ) | 10,000 | |||||||||||
At end of the year | – | – | – | 10,000 | ||||||||||||
Loans and advances: | ||||||||||||||||
At beginning of the year | 60,740 | 79,680 | 8,426 | 6,703 | ||||||||||||
Net increase/(decrease) | (11,130 | ) | (18,940 | ) | 274 | 1,723 | ||||||||||
At end of the year | 49,610 | 60,740 | 8,700 | 8,426 | ||||||||||||
Allowance for loan losses at end of the year | 2,552 | 3,737 | 11 | 10 | ||||||||||||
Deposits: | ||||||||||||||||
At beginning of the year | 2,672 | 12,644 | 498 | 321 | ||||||||||||
Net increase/(decrease) | 1,455 | (9,972 | ) | 120 | 177 | |||||||||||
At end of the year | 4,127 | 2,672 | 618 | 498 | ||||||||||||
Borrowed funds: | ||||||||||||||||
At beginning of the year | – | – | – | – | ||||||||||||
Net increase/(decrease) | 17,688 | – | – | – | ||||||||||||
At end of the year | 17,688 | – | – | – | ||||||||||||
Other liabilities: | ||||||||||||||||
At beginning of the year | 623 | 690 | 5,300 | 6,015 | ||||||||||||
Net increase/(decrease) | (312 | ) | (67 | ) | 1,106 | (715 | ) | |||||||||
At end of the year | 311 | 623 | 6,406 | 5,300 | ||||||||||||
Interest income: | 1,208 | 1,731 | 183 | 137 | ||||||||||||
Interest expenses: | 367 | – | – | 20 | ||||||||||||
Fee and commission income: | 758 | 2,456 | 1,013 | 1,061 | ||||||||||||
Fee and commission expenses: | 2,406 | 2,393 | 11,100 | 10,277 |
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47. | Subsequent events |
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Article 1 | (Share Exchange) |
Article 2 | (Shares to be Delivered upon Share Exchange and Allotment of Shares) |
1. | Upon the Share Exchange, CMTH shall deliver to common shareholders of STB (excluding CMTH) at the time immediately preceding the time CMTH acquires all of the issued shares of STB (excluding the shares of STB owned by CMTH) through the Share Exchange (the “Base Time”), in exchange for shares of STB common stock, the number of shares of CMTH common stock calculated by multiplying the total number of shares of STB common stock held by common shareholders of STB by 1.49. |
2. | Upon the Share Exchange, CMTH shall deliver to holders of shares of the First Series of STB Class II Preferred Stock (“STB Preferred Stock”) entered or recorded on STB’s register of shareholders at the Base Time (“STB Preferred Shareholder”) (excluding CMTH), in exchange for shares of STB Preferred Stock, the same number of shares of the First Series of CMTH Class VII Preferred Stock (the terms of issuance of which are stated in Exhibit 1; “CMTH Preferred Stock”[Appendix A-6 –Appendix A-8]) as the total number of shares of STB Preferred Stock held by STB Preferred Shareholder. |
3. | Upon the Share Exchange, CMTH shall allot shares of CMTH common stock to the common shareholders of STB at the Base Time (excluding CMTH), and such allotment shall be made at the ratio of 1.49 shares of CMTH common stock for each share of STB common stock held by such shareholders. |
4. | Upon the Share Exchange, CMTH shall allot shares of CMTH Preferred Stock to STB Preferred Shareholder entered or recorded on STB’s register of shareholders at the Base Time (excluding CMTH), and such allotment shall be made at the ratio of one share of CMTH Preferred Stock for each share of STB Preferred Stock. |
Article 3 | (Amount of Stated Capital and Reserves) |
(1) | Stated capital 0 yen | |
(2) | Capital reserve Amount determined separately by CMTH in accordance with Article 39, Paragraph 2 of the Ordinance on Company Accounting. |
Appendix A-1
Table of Contents
(3) | Retained earnings reserve 0 yen |
Article 4 | (Effective Date) |
Article 5 | (General Meetings of Shareholders Approving the Share Exchange Agreement) |
1. | CMTH shall seek a resolution approving this Agreement at the extraordinary general meeting of shareholders and the class shareholders’ meeting of common shareholders of CMTH both scheduled to be held on December 22, 2010. |
2. | STB shall seek a resolution approving this Agreement at the extraordinary general meeting of shareholders, the class shareholders’ meeting of common shareholders of STB and the class shareholders’ meeting of STB Preferred Shareholders each scheduled to be held on December 22, 2010; provided, however, that this will not apply if, pursuant to Article 319, Paragraph 1 of the Companies Act, as applied mutatis mutandis pursuant to Article 325 of the Companies Act, the approval of this Agreement at the class shareholders’ meeting of STB Preferred Shareholders is deemed to have been obtained. |
3. | CMTH and STB may, upon negotiation and agreement with each other, change the scheduled dates of the shareholders’ meetings stated in the preceding two Paragraphs, if necessary, in light of the progress of procedures for the Share Exchanges or for any other reason. |
Article 6 | (Management of Company Assets) |
Article 7 | (Limit of Payment of Dividends from Surplus) |
1. | Each of CMTH and STB may, in accordance with their respective existing dividend policies, make payments of dividends from surplus to the common shareholders or the registered stock pledgees with respect to shares of common stock entered or recorded on their respective final register of shareholders at the close of September 30, 2010 up to the following amount: |
(1) | 8 yen per share, 13,267,410,136 yen in the aggregate for CMTH; and | |
(2) | 10 yen per share, 16,751,285,460 yen in the aggregate for STB. |
2. | STB may make payments of dividends from surplus to the STB Preferred Shareholders or the registered stock pledgees with respect to shares of STB Preferred Stock entered or recorded on the final register of shareholders at the close of September 30, 2010 up to the amount of 21.15 yen per share and 2,305,350,000 yen in the aggregate. |
3. | Each of CMTH and STB may, in accordance with their respective existing dividend policies, make payments of dividends from surplus to the common shareholders or the registered stock pledgees with respect to shares of common stock entered or recorded on their respective final register of shareholders at |
Appendix A-2
Table of Contents
the close of March 31, 2011 up to the amount calculated by adding the following amount to the amount calculated by subtracting the amount of the dividends from surplus paid in accordance with Paragraph 1 from the amount stated in Paragraph 1: |
(1) | 8 yen per share, 13,267,410,136 yen in the aggregate for CMTH; and | |
(2) | 10 yen per share, 16,751,285,460 yen in the aggregate for STB. |
4. | STB may make payments of dividends from surplus to the STB Preferred Shareholders or the registered stock pledgees with respect to shares of STB Preferred Stock entered or recorded on the final register of shareholders at the close of March 31, 2011 up to the amount of 21.15 yen per share and 2,305,350,000 yen in the aggregate. |
5. | If, after the execution of this Agreement, CMTH and STB intend to make payments of dividends from surplus on a record date prior to the Effective Date, CMTH and STB shall obtain the written consent of the other party, except as provided for in the preceding Paragraphs. |
Article 8 | (Cancellation of Treasury Stock) |
Article 9 | (Articles of Incorporation and Officers of CMTH on and after Effective Date) |
1. | CMTH shall, at the extraordinary general meeting of shareholders provided for in Article 5, Paragraph 1 (including the class shareholders’ meeting, which is provided for in Article 5, Paragraph 1, if required by laws and regulations), seek a resolution approving the amendments to its Articles of Incorporation to (i) change its trade name to MITSUI SUMITOMO TRUST HOLDINGS KABUSHIKI KAISHA (which shall be written as Sumitomo Mitsui Trust Holdings, Inc., in English); (ii) change the location of its head office to Chiyoda-ku, Tokyo; (iii) add the contents of CMTH Preferred Stock; and (iv) make other changes as agreed by and between CMTH and STB, which amendments shall be made as of the Effective Date, on the condition that the Share Exchange takes effect. |
2. | CMTH and STB shall separately negotiate and agree on the composition of officers of CMTH as of the Effective Date. The number of candidates for directors to be nominated by CMTH shall be the same as the number of candidates for directors to be nominated by STB. The number of candidates for corporate auditors to be nominated by CMTH shall be the same as the number of candidates for corporate auditors to be nominated by STB. CMTH shall, at the extraordinary general meeting of shareholders provided for in Article 5, Paragraph 1, seek a resolution approving the election, as of the Effective Date, on the condition that the Share Exchange takes effect, of the candidates to be newly elected as directors and corporate auditors of CMTH based on the above-mentioned agreement. In addition, CMTH and STB shall respectively conduct any and all acts to be required to make the composition of officers of CMTH as of the Effective Date be the composition based on the above-mentioned agreement. |
Article 10 | (Amendments to Articles of Incorporation of STB) |
Appendix A-3
Table of Contents
Article 11 | (Granting of Voting Rights to Shareholders of STB) |
Article 12 | (Change of Terms and Conditions of Share Exchange and Cancellation of Share Exchange) |
1. | If, during the period after the date of execution of this Agreement and before the Effective Date, (i) there is a material change in the conditions of assets or business operations or rights and obligations of CMTH or STB, (ii) a situation arises or is discovered that materially obstructs the implementation of the Share Exchange, or (iii) some other reason that makes it difficult to achieve the purpose of this Agreement, CMTH and STB may, upon negotiation and agreement with each other, agree to change the terms and conditions of the Share Exchange and the contents of this Agreement or cancel the Share Exchange. |
2. | If, at the general meeting of shareholders of CMTH or STB provided for in Article 5, all or part of the resolutions provided for in Article 9 and Article 10 are not adopted, either party to this Agreement may cancel the Share Exchange after negotiation with the other party. |
Article 13 | (Validity of this Agreement) |
Article 14 | (Matters for Negotiation) |
Appendix A-4
Table of Contents
CMTH: | CHUO MITSUI TRUST HOLDINGS, INC. 33-1, Shiba 3-chome, Minato-ku, Tokyo President: Kazuo Tanabe | |
STB: | THE SUMITOMO TRUST AND BANKING COMPANY, LIMITED. 5-33, Kitahama 4-chome, Chuo-ku, Osaka President & CEO: Hitoshi Tsunekage |
Appendix A-5
Table of Contents
First Series of Class VII Preferred Stock of
Sumitomo Mitsui Trust Holdings, Inc.
1. | Type of Stock |
2. | Preferred Dividends |
(1) | In the case of payments of dividends from surplus as provided for in Article 49, Paragraph 1 of the Articles of Incorporation of the Company, the Company shall pay cash dividends in the amount of 42.30 Japanese Yen per share of the Preferred Shares (the “Preferred Dividends”) to the holders of shares of the Preferred Stock (the “Preferred Shareholders”) or the registered stock pledgees with respect to shares of the Preferred Stock (the “Registered Preferred Stock Pledgees”), in preference to the holders of shares of common stock (the “Common Shareholders”) or the registered stock pledgees with respect to shares of common stock (the “Registered Common Stock Pledgees”) ; provided, however, that if all or part of the Preferred Interim Dividends as provided for in Section 3 or all or part of the Extraordinary Preferred Dividends as provided for in Section 4 have been paid based on a record date falling within the fiscal year that includes such record date for the Preferred Dividends, the amount so paid shall be subtracted from the Preferred Dividends. |
(2) | If the amount of cash dividends from surplus paid to the Preferred Shareholders or the Registered Preferred Stock Pledgees is less than the amount of the Preferred Dividends in any fiscal year, such deficiency shall not be carried over for accumulation to subsequent fiscal years. |
(3) | The Company shall not pay dividends in excess of the amount of the Preferred Dividends to the Preferred Shareholders or the Registered Preferred Stock Pledgees. |
3. | Preferred Interim Dividends |
4. | Extraordinary Preferred Dividends |
Appendix A-6
Table of Contents
5. | Distribution of Residual Assets |
(1) | In the case of distributions of residual assets, the Company shall pay 1,000 Japanese Yen per share of the Preferred Stock to the Preferred Shareholders or the Registered Preferred Stock Pledgees, in preference to the Common Shareholders or the Registered Common Stock Pledgees. |
(2) | Other than a distribution provided for in the preceding Item, no distribution of residual assets shall be made to the Preferred Shareholders or the Registered Preferred Stock Pledgees. |
6. | Consolidations or Splits of Shares of Preferred Stock; Allotment of Offered Shares, Etc. |
(1) | Unless otherwise provided for by laws and ordinances, no consolidations or splits of shares shall be made with respect to shares of the Preferred Stock. |
(2) | The Company shall not give the Preferred Shareholders any rights to receive an allotment of offered shares or stock acquisition rights. The Company shall not allot any shares of stock or stock acquisition rights to the Preferred Shareholders without consideration. |
7. | Provisions for the Acquisition of Shares of the Preferred Stock for Monetary Consideration |
(1) | The Company may, on the date separately provided for by the Board of Directors, which is on or after October 1, 2014 (the “Acquisition Date”), acquire all or part of the shares of the Preferred Stock in exchange for cash in the amount obtained by adding 1,000 yen per share to the amount equivalent to the accrued dividend from surplus (which is obtained by multiplying (i) (a) the number of days included in the period commencing on and including the first day of the fiscal year that includes the Acquisition Date and ending on and including the day immediately preceding the Acquisition Date, divided by (b) 365, by (ii) the amount of the Preferred Dividends (calculation for an amount less than one (1) yen shall be made to the third (3rd) decimal places and shall be rounded off to two (2) decimal places)); provided, however, that if all or part of the Preferred Interim Dividends or all or part of the Extraordinary Preferred Dividends have been paid, during the fiscal year that includes the Acquisition Date, based on a record date that is on or prior to the day immediately preceding the Acquisition Date, the amount so paid shall be subtracted from the amount of accrued dividend from surplus. |
(2) | In the event that a part of the shares of the Preferred Stock is acquired in accordance with the preceding Item, the shares of preferred stock to be acquired shall be decided by lottery or by proportional allotment. |
8. | Voting Rights |
Appendix A-7
Table of Contents
9. | Order of Priority |
10. | Period of Limitations for Dividends |
Appendix A-8
Table of Contents
Appendix A-9
Table of Contents
Article 1.1 | (Objectives) |
1. | CMTH and STB shall conduct the Management Integration and the Trust Bank Combination (as defined in Article 3.1, Paragraph 1; hereinafter the same) under the spirit of mutual trust and equality, in order to form “The Trust Bank”, a new trust bank group that, with a combination of significant expertise and comprehensive capabilities, will provide better and swifter comprehensive solutions to their clients than ever before, by combining their personnel, know-how and other managerial resources and fusing both groups’ strengths such as CMTH Group’s agility and STB Group’s diversity. |
2. | In order to achieve the objectives of the Management Integration and the Trust Bank Combination, CMTH and STB shall establish a policy of the new group that will be formed after the Management Integration (Sumitomo Mitsui Trust Group), as stated in Exhibit 1.1, for the purpose of clarifying the ideal model of the new corporate group. |
Article 1.2 | (Definitions) |
(1) | “CMTH Group” collectively means CMTH, its Subsidiaries and Affiliated Companies; | |
(2) | “STB Group” collectively means STB, its Subsidiaries and Affiliated Companies; | |
(3) | “Integrated Holding Company” means CMTH after the Share Exchange (as defined in Article 2.1, Paragraph 1; hereinafter the same); | |
(4) | “Combined Trust Bank” means STB after the Merger (as defined in Article 3.1, Paragraph 1; hereinafter the same); | |
(5) | “Subsidiary” means the subsidiary prescribed in Article 8 of the Regulation for Terminology, Forms and Preparation of Financial Statements ; | |
(6) | “Affiliated Company” means the affiliated company prescribed in Article 8 of the Regulation for Terminology, Forms and Preparation of Financial Statements; | |
(7) | “Share Exchange Ratio” collectively means (i) the number of shares of CMTH’s common stock to be delivered in exchange for one (1) share of STB’s common stock at the Share Exchange, and (ii) the number of shares of CMTH’s preferred stock (“CMTH Preferred Stock”) to be delivered in exchange for one (1) share of the First Series of STB Class II Preferred Shares upon the Share Exchange; | |
(8) | “Contracts” collectively means contracts, arrangements and other agreements (regardless of whether they were made in writing or orally); | |
(9) | “Event of Default” collectively means an event of termination, cancellation, acceleration or default related to the Contracts, and any other event that falls under any of these events by the giving of notice or due to the lapse of time or for both of these reasons; |
(10) | “Judicial and Administrative Organs’ Judgment” collectively means the judgments, decisions, orders, settlements in court, licenses, permissions, approvals, circular notices, administrative guidance and other judgments made, issued or given by the Judicial and Administrative Organs; |
Appendix A-10
Table of Contents
(11) | “Damages” means damages, losses, debts, expenses and expenditures (regardless of whether they accrue as a result of a demand from a third party; including lost profits and reasonable attorney’s fees); | |
(12) | “Laws and Regulations” collectively means laws, cabinet orders, circular notices, rules, orders, ordinances, guidelines and any other regulations. |
Article 2.1 | (Outline and Method of the Management Integration) |
1. | Management Integration |
2. | Share Exchange |
(1) | On the Agreement Date, CMTH and STB shall enter into a share exchange agreement in the form and with the terms and conditions set forth in Exhibit 2.1 (the “Share Exchange Agreement”), and STB shall conduct the Share Exchange pursuant to the provisions of the Share Exchange Agreement. The rights and obligations of CMTH and STB prescribed in the Share Exchange Agreement shall constitute rights and obligations of CMTH and STB under this Agreement. | |
(2) | The schedule of the Share Exchange shall be as set forth below; provided, however, that, CMTH and STB may, upon negotiation and agreement with each other, change such schedule, if necessary, in light of the progress of procedures for the Share Exchange or for any other reason. |
Execution of Share Exchange Agreement: August 24, 2010
Public notice of record date for voting at extraordinary general meeting of shareholders: September 7, 2010 (Planned)
Record date for voting at extraordinary general meeting of shareholders (CMTH and STB): September 30, 2010 (Planned)
Extraordinary general meeting of shareholders for the approval of share exchange (CMTH and STB): December 22, 2010 (Planned)
Date of delisting of STB common shares: March 29, 2011 (Planned)
Date of share exchange (effective date): April 1, 2011 (Planned)
3. | Outline of the Integrated Holding Company |
(1) | The trade name of the Integrated Holding Company |
(2) | Location and address of the headquarters of the Integrated Holding Company |
(3) | Representatives of the Integrated Holding Company |
Appendix A-11
Table of Contents
(4) | Directors and Corporate Auditors of the Integrated Holding Company |
(5) | Executive Officers of the Integrated Holding Company |
(6) | Stock Exchange where the Integrated Holding Company’s shares will be listed |
Article 3.1 | (Outline and Method of the Trust Bank Combination) |
1. | Trust Bank Combination |
2. | Merger |
(1) | STB shall, after the effective date of the Share Exchange, enter into a merger agreement concerning the Merger with CMTB and CMATB (the “Merger Agreement”), and conduct the Merger with CMTB and CMATB pursuant to the provisions of the Merger Agreement. | |
(2) | The effective date of the Merger is planned to be on April 1, 2012; provided, however, that, CMTH, STB, CMTB and CMATB may, upon negotiation and agreement with each other, change such schedule, if necessary, in light of the progress of procedures for the Merger or for any other reason. | |
(3) | Matters concerning the Merger shall be provided for in the Merger Agreement, in addition to the preceding two (2) items, in line with the purposes of this Agreement. |
3. | Outline of the Combined Trust Bank |
(1) | The trade name of the Combined Trust Bank |
(2) | Location and address of the headquarters of the Combined Trust Bank |
Appendix A-12
Table of Contents
(3) | Representatives of the Combined Trust Bank |
(4) | Directors and Corporate Auditors of the Combined Trust Bank |
(5) | Executive Officers of the Combined Trust Bank If the Combined Trust Bank |
Article 4.1 | (Group Reorganization) |
CONCERNING TRUST BANK COMBINATION
Article 5.1 | (Duty of Due Care, etc.) |
1. | During the period until the effective date of the Share Exchange, CMTH and STB shall manage and operate the businesses and assets of the CMTH Group and the STB Group respectively with the due care of a prudent manager, and CMTH and STB shall negotiate and agree with each other before taking any action that could materially affect such assets or rights and obligations. |
2. | During the period until the effective date of the Share Exchange, CMTH and STB shall negotiate with the other party in advance and in good faith with respect to any matters concerning the capital policy of the respective companies or their Subsidiaries that are material in light of the Management Integration or the Trust Bank Combination. |
Appendix A-13
Table of Contents
3. | During the period until the effective date of the Share Exchange, if CMTH or STB, or their respective Subsidiaries and Affiliated Companies, contemplate a management integration, organizational restructuring, capital tie up, capital participation, stock transfer, business transfer, asset transfer, etc. or any other similar transaction thereto that is considered a material transaction in light of the Management Integration or the Trust Bank Combination, CMTH and STB shall negotiate with each other in advance and in good faith. |
4. | In addition to the provisions of the preceding Paragraphs of this Article, in order to facilitate the smooth and swift Management Integration, Trust Bank Combination, Group Reorganization, and achievement of the objectives of this Agreement, CMTH and STB shall examine and negotiate matters with each other in good faith to ensure the spirit of mutual trust, cooperate with each other to the maximum extent, proceed with matters in an appropriate manner, and cause their respective Subsidiaries and Affiliated Companies to act likewise. |
Article 5.2 | (Compliance with Laws and Regulations, and Procedures Therefor) |
1. | In order to facilitate the smooth and swift Management Integration, Trust Bank Combination, Group Reorganization, and achievement of the objectives of this Agreement, CMTH and STB shall, consulting with the other party, each obtain the approval and license necessary for the Management Integration, Trust Bank Combination and Group Reorganization from, or perform registration, filing, etc. necessary for the Management Integration, Trust Bank Combination and Group Reorganization with, the competent domestic or foreign authorities, and shall take the procedures or actions necessary for the Management Integration, Trust Bank Combination and Group Reorganization under the applicable domestic and foreign laws, regulations and rules (including preliminary consultation meetings with competent domestic or foreign authorities, such as the Financial Services Agency, Fair Trade Commission and the U.S. Securities and Exchange Commission), in an appropriate manner, and the other party shall cooperate in an appropriate manner, and CMTH and STB shall cause their respective Subsidiaries and Affiliated Companies to cooperate in the same manner. |
2. | If a certain action or measure within the CMTH Group or the STB Group becomes necessary (including changing the schedule for the Management Integration), in relation to the Antitrust Act and applicable laws and regulations, in order to facilitate the smooth and swift Management Integration, CMTH and STB shall negotiate and agree with each other, or shall cause their respective Subsidiaries and Affiliated Companies to negotiate and agree with each other, and determine the policy therefor by mutual agreement, in order to minimize the burden and effect on the party taking the action or measure. |
3. | If a filing pursuant to the U.S. securities regulations becomes necessary concerning the Management Integration, CMTH and STB shall negotiate with each other regarding the preparation, audit and provision to the other party of the financial documents necessary for such filing, and proceed in an appropriate manner. |
Article 5.3 | (Handling of Material Contracts, etc.) |
Appendix A-14
Table of Contents
Article 5.4 | (Disclosure of Documents/Information) |
Article 5.5 | (Business Alliance) |
Article 6.1 | (Obligation for Exclusive Negotiation) |
1. | During the period until the effective date of the Share Exchange, CMTH and STB shall not engage in any act of providing information to, or soliciting information from, third parties, or negotiating with third parties or any act similar thereto, whether directly or indirectly, concerning transactions, etc., that are similar to, or go against, the Management Integration or the Trust Bank Combination (including transactions such as management integration, organizational restructuring, capital tie up, capital participation, stock transfer, business transfer, asset transfer, etc., or any other transactions, etc., similar thereto, which interfere with or have an adverse effect on the achievement of the goal of this Agreement) (the “Competitive Transaction”). |
2. | During the period until the effective date of the Share Exchange, if either CMTH or STB receives from a third party a proposition, a solicitation, a notice, an approach, a request for the provision of information, etc., concerning the Competitive Transaction (the “Third Party Proposition, etc.”) (the “Proposition Receiving Party”), the Proposition Receiving Party shall notify the other party, without delay, regarding the matter (including the name of the relevant third party), the details thereof, together with the provision of related material, records, etc. Moreover, in regards to the handling of the Third Party Proposition, etc. (including expressing an opinion concerning a tender offer), the Proposition Receiving Party shall, in accordance with the purpose of this Agreement, negotiate with the other party in advance and in good faith, and appropriately handle the matter in a manner that would not breach the obligations set forth in the immediately preceding Paragraph. |
3. | If either CMTH or STB breaches the obligation set forth in the preceding two (2) Paragraphs above, the other party may demand that the breaching party perform the said obligation (including a request for a restraining order). Moreover, if either CMTH or STB shall commit a breach of obligation set forth in Paragraph 1 of this Article or a material breach of obligation set forth in Paragraph 2 of this Article, the other party may file a petition for a temporary restraining order. Furthermore, CMTH and STB hereby confirm that each recognizes that, in such circumstances, the other party would be facing imminent danger or would have the strong probability of facing conspicuous harm. |
Appendix A-15
Table of Contents
Article 6.2 | (Cancellation, etc.) |
1. | If any of the events set forth in the following items occurs by the effective date of the Share Exchange, CMTH and STB may cancel this Agreement by giving written notice to the other party: |
(1) | A petition for commencement of bankruptcy proceedings, civil rehabilitation proceedings, corporate reorganization proceedings, special liquidation proceedings or other similar legal insolvency proceedings (including proceedings under foreign laws) is filed against the other party, or the other party files such petition; or | |
(2) | The other party falls into a status of suspension of payments, becomes insolvent or has liabilities in excess of assets. |
2. | If any of the following events (the “Consultation Commencement Event”) occurs with respect to the other party (the “Attributable Party”), CMTH and STB shall consult with each other in good faith on the revision of the Share Exchange Ratio and other measures that can be taken to achieve the objectives of this Agreement as provided for in Article 1.1 to the maximum extent. If, after such consultation, CMTH and STB fail to reach an agreement on the measures to cure the Consultation Commencement Event, the alternative measures or other measures to be taken to achieve the objectives of this Agreement to the maximum extent, and it is found that a situation arises or is discovered that materially obstructs the implementation of the Share Exchange because of the existence of such Consultation Commencement Event, the party who is not the Attributable Party may, if it is prior to the effective date of the Share Exchange, cancel this Agreement by giving written notice to the Attributable Party: |
(1) | If the Attributable Party is in material breach of the obligation under this Agreement; | |
(2) | If CMTH, is found to be, or, is in material breach of any of the matters stated inExhibit 6.2-1 (only in the case where CMTH is the Attributable Party), or STB, is found to be, or, is in material breach of any of the matters stated inExhibit 6.2-2 (only in the case where STB is the Attributable Party); or | |
(3) | In addition to the cases as stated in the preceding two (2) items, if the financial conditions or operating results of the Attributable Party, as a corporate group, or the rights and obligations of the Attributable Party, substantially change, if a situation arises or is discovered that materially obstructs the implementation of the Share Exchange, or if the event that makes it difficult for the party to this Agreement, who is not the Attributable Party, to achieve the objectives of this Agreement occurs. |
Article 6.3 | (Termination of Agreement and Effect Thereof) |
1. | This Agreement shall terminate if any of the events set forth in the following items occurs: |
(1) | CMTH and STB agree to terminate this Agreement; | |
(2) | This Agreement is cancelled in accordance with the preceding Article; or | |
(3) | The Share Exchange is cancelled, or ceases to be effective, in accordance with the Share Exchange Agreement. |
2. | CMTH and STB recognize that the termination of this Agreement pursuant to items (1) or (2) of the preceding Paragraph falls under the circumstance set forth in Article 12 of the Share Exchange Agreement where “a situation arises or is discovered that materially obstructs the implementation of the Share Exchange” and agree, in advance, to cancel the Share Exchange pursuant to the said Article, should such circumstance arise. |
3. | The termination of this Agreement is effective with reference to future occurrences, and unless otherwise prescribed in this Agreement, the rights and obligations that accrued pursuant to this Agreement prior to the termination of this Agreement shall not be affected by the termination hereof. |
4. | Each provision of Paragraphs 2 through to 4 of this Article and Articles 6.4 through to 6.13 shall continue to be effective after the termination of this Agreement. |
Appendix A-16
Table of Contents
Article 6.4 | (Binding Effect) |
Article 6.5 | (Termination of the Basic Agreement) |
Article 6.6 | (Compensation for Damages) |
Article 6.7 | (Confidentiality) |
1. | Neither CMTH nor STB shall disclose or divulge to any third party (i) the contents of this Agreement, (ii) the progress and contents of negotiations concerning this Agreement or (iii) any information received from the other party or advisors requested by the other party to provide the relevant services, such as financial advisors, attorneys at law, certified public accountants, licensed tax accountants and appraisers (the “Concerned Parties”) in connection with the Management Integration, the Trust Bank Combination, the Group Reorganization and other transactions contemplated hereunder (regardless of whether the information stated above is received in writing, bye-mail, orally, through an electronic record medium or by any other form, and such information includes the information obtained by reproducing, duplicating, compiling, processing, altering or otherwise modifying the initially received information and also includes the information received under a confidentiality agreement or the Basic Agreement, which was executed by and between both parties in connection with the Management Integration prior to the execution of this Agreement) (collectively the “Confidential Information”); provided, however, that this shall not apply if CMTH or STB makes the disclosure to its officers, employees or the Concerned Parties who reasonably need to know the Confidential Information, if CMTH or STB discloses the Confidential Information to a third party with the prior written consent of the other party or if CMTH or STB discloses the Confidential Information to a third party with respect to whom the disclosing party has already obtained the other party’s prior written consent at the time of the execution of this Agreement pursuant to the proviso clause of Article 12, Paragraph 1 of the Basic Agreement. |
2. | Neither CMTH nor STB shall use the Confidential Information for purposes other than the performance of its duties and execution of its rights under this Agreement. |
3. | The Confidential Information shall not include the following information: |
(i) | information that, at the time of disclosure, is already in the lawful possession of the receiving party; | |
(ii) | information that, at the time of disclosure, is already in the public domain or is available to the public; | |
(iii) | information that, after disclosure, becomes part of the public domain or becomes available to the public through no fault of the receiving party; | |
(iv) | information that is independently developed by the receiving party without using the Confidential Information; or | |
(v) | information that is lawfully received by the receiving party from a duly authorized third party without assuming a duty of confidentiality. |
4. | If CMTH or STB discloses the Confidential Information to a third party pursuant to the proviso clause of Paragraph 1 of this Article, the disclosing party shall cause the third party to assume the same obligations |
Appendix A-17
Table of Contents
as the disclosing party under this Article and shall be liable to the other party for any breach of such obligations by such third party. |
5. | Notwithstanding the provision of the main clause of Paragraph 1 of this Article, if CMTH or STB is requested to disclose the Confidential Information pursuant to any Laws or Regulations, the rules of the relevant financial instruments exchange or the Judicial and Administrative Organs’ Judgment (the “Applicable Laws and Regulations”), the disclosing party may disclose the Confidential Information pursuant to such Applicable Laws and Regulations. In that case, the disclosing party shall promptly notify the necessity of disclosure to the other party and shall, to the extent permitted by the Applicable Laws and Regulations, consult with the other party on the method of disclosing the Confidential Information (provided, however, that, if it is impossible to have such prior consultation, the disclosing party shall report the progress and contents of disclosure to the other party promptly after the disclosure). If CMTH or STB discloses the Confidential Information pursuant to the Applicable Laws and Regulations, the Confidential Information to be disclosed shall be limited to the information that is minimally required by the Applicable Laws and Regulations. |
6. | If this Agreement is terminated, each party shall promptly respond to the other party’s request, if any, for the return or destruction of material or records in which the Confidential Information is included. |
7. | Notwithstanding the provisions of Paragraph 4 of Article 6.3 hereof, the confidentiality obligation assumed by CMTH and STB concerning the Confidential Information shall become extinct upon the passage of three (3) years from the date of termination of this Agreement. |
Article 6.8 | (Public Announcements) |
Article 6.9 | (Expenses) |
Article 6.10 | (Prohibition of Assignment of Rights and Obligations) |
Article 6.11 | (Governing Law) |
Appendix A-18
Table of Contents
Article 6.12 | (Jurisdiction) |
Article 6.13 | (Matters to be Determined upon Consultation) |
Appendix A-19
Table of Contents
CMTH: | CHUO MITSUI TRUST HOLDINGS, INC. 33-1, Shiba 3-chome, Minato-ku, Tokyo President: Kazuo Tanabe | |
STB: | THE SUMITOMO TRUST AND BANKING COMPANY, LIMITED 5-33, Kitahama 4-chome, Chuo-ku, Osaka President & CEO: Hitoshi Tsunekage |
Appendix A-20
Table of Contents
(1) | Management Principles (“Mission”) |
(i) | Sumitomo Mitsui Trust Group will swiftly provide comprehensive solutions to its clients by fully utilizing its significant expertise and comprehensive capabilities. | |
(ii) | Sumitomo Mitsui Trust Group will adhere to the principles of sound management based on a high degree of self-discipline with the background of “Trustee Spirit” and will establish strong credibility from society. | |
(iii) | Sumitomo Mitsui Trust Group will strive to fulfill all shareholder expectations by creating distinct values through fusing the various functions featuring the trust bank group | |
(iv) | Sumitomo Mitsui Trust Group will offer a workplace where the diversity and creativity of its employees are more fully utilized to add value to the organization and where employees can have pride and be highly motivated in fulfilling their missions. |
(2) | Ideal Model (“Vision”) – Towards “The Trust Bank” |
(3) | Codes of Conduct (“Value”) |
(i) | “Completely Client-oriented – Truthfulness and Loyalty”: We will adhere to the highest degree of “Truthfulness and Loyalty” as well as credibility and sureness, and will carry out all our responsibilities for client satisfaction and comfort as our top priority. | |
(ii) | “Contribution to society – Dedication and Development”: We will remain dedicated in all our efforts, with “Frontier Spirit”, and continue to contribute to society. | |
(iii) | “Realization of organizational capability – Trust and Creativity”: We will realize our organizational capabilities with full of mutual trust and creativity through improvement by mutual learning and continuous personal transformation of various people who share the enthusiasm for trust. | |
(iv) | “Establishment of Individuality – Self-help and Self-discipline”: With a spirit of self-help and self-discipline as well as a sense of ownership, we will carry out our responsibilities. | |
(v) | “Strict compliance with applicable laws and regulations”: We will strictly comply with all applicable laws, rules and regulations and will ensure that all our corporate activities meet the highest standards of social norms. | |
(vi) | “Resolute stance against antisocial forces”: We will continue to take a resolute stance against antisocial forces, which may threaten public order and the security of civil society. |
Appendix A-21
Table of Contents
Article 1 | (Share Exchange) |
Article 2 | (Shares to be Delivered upon Share Exchange and Allotment of Shares) |
1. | Upon the Share Exchange, CMTH shall deliver to common shareholders of STB (excluding CMTH) at the time immediately preceding the time CMTH acquires all of the issued shares of STB (excluding the shares of STB owned by CMTH) through the Share Exchange (the “Base Time”), in exchange for shares of STB common stock, the number of shares of CMTH common stock calculated by multiplying the total number of shares of STB common stock held by common shareholders of STB by 1.49. |
2. | Upon the Share Exchange, CMTH shall deliver to holders of shares of the First Series of STB Class II Preferred Stock (“STB Preferred Stock”) entered or recorded on STB’s register of shareholders at the Base Time (“STB Preferred Shareholder”) (excluding CMTH), in exchange for shares of STB Preferred Stock, the same number of shares of the First Series of CMTH Class VII Preferred Stock (the terms of issuance of which are stated in Exhibit 1; “CMTH Preferred Stock”[Appendix A-26 —Appendix A-28]) as the total number of shares of STB Preferred Stock held by STB Preferred Shareholder. |
3. | Upon the Share Exchange, CMTH shall allot shares of CMTH common stock to the common shareholders of STB at the Base Time (excluding CMTH), and such allotment shall be made at the ratio of 1.49 shares of CMTH common stock for each share of STB common stock held by such shareholders. |
4. | Upon the Share Exchange, CMTH shall allot shares of CMTH Preferred Stock to STB Preferred Shareholder entered or recorded on STB’s register of shareholders at the Base Time (excluding CMTH), and such allotment shall be made at the ratio of one share of CMTH Preferred Stock for each share of STB Preferred Stock. |
Article 3 | (Amount of Stated Capital and Reserves) |
(1) | Stated capital 0 yen | |
(2) | Capital reserve Amount determined separately by CMTH in accordance with Article 39, Paragraph 2 of the Ordinance on Company Accounting. | |
(3) | Retained earnings reserve 0 yen |
Appendix A-22
Table of Contents
Article 4 | (Effective Date) |
Article 5 | (General Meetings of Shareholders Approving the Share Exchange Agreement) |
1. | CMTH shall seek a resolution approving this Agreement at the extraordinary general meeting of shareholders and the class shareholders’ meeting of common shareholders of CMTH both scheduled to be held on December 22, 2010. |
2. | STB shall seek a resolution approving this Agreement at the extraordinary general meeting of shareholders, the class shareholders’ meeting of common shareholders of STB and the class shareholders’ meeting of STB Preferred Shareholders each scheduled to be held on December 22, 2010; provided, however, that this will not apply if, pursuant to Article 319, Paragraph 1 of the Companies Act, as applied mutatis mutandis pursuant to Article 325 of the Companies Act, the approval of this Agreement at the class shareholders’ meeting of STB Preferred Shareholders is deemed to have been obtained. |
3. | CMTH and STB may, upon negotiation and agreement with each other, change the scheduled dates of the shareholders’ meetings stated in the preceding two Paragraphs, if necessary, in light of the progress of procedures for the Share Exchanges or for any other reason. |
Article 6 | (Management of Company Assets) |
Article 7 | (Limit of Payment of Dividends from Surplus) |
1. | Each of CMTH and STB may, in accordance with their respective existing dividend policies, make payments of dividends from surplus to the common shareholders or the registered stock pledgees with respect to shares of common stock entered or recorded on their respective final register of shareholders at the close of September 30, 2010 up to the following amount: |
(1) | 8 yen per share, 13,267,410,136 yen in the aggregate for CMTH; and | |
(2) | 10 yen per share, 16,751,285,460 yen in the aggregate for STB. |
2. | STB may make payments of dividends from surplus to the STB Preferred Shareholders or the registered stock pledgees with respect to shares of STB Preferred Stock entered or recorded on the final register of shareholders at the close of September 30, 2010 up to the amount of 21.15 yen per share and 2,305,350,000 yen in the aggregate. |
3. | Each of CMTH and STB may, in accordance with their respective existing dividend policies, make payments of dividends from surplus to the common shareholders or the registered stock pledgees with respect to shares of common stock entered or recorded on their respective final register of shareholders at the close of March 31, 2011 up to the amount calculated by adding the following amount to the amount |
Appendix A-23
Table of Contents
calculated by subtracting the amount of the dividends from surplus paid in accordance with Paragraph 1 from the amount stated in Paragraph 1: |
(1) | 8 yen per share, 13,267,410,136 yen in the aggregate for CMTH; and | |
(2) | 10 yen per share, 16,751,285,460 yen in the aggregate for STB. |
4. | STB may make payments of dividends from surplus to the STB Preferred Shareholders or the registered stock pledgees with respect to shares of STB Preferred Stock entered or recorded on the final register of shareholders at the close of March 31, 2011 up to the amount of 21.15 yen per share and 2,305,350,000 yen in the aggregate. |
5. | If, after the execution of this Agreement, CMTH and STB intend to make payments of dividends from surplus on a record date prior to the Effective Date, CMTH and STB shall obtain the written consent of the other party, except as provided for in the preceding Paragraphs. |
Article 8 | (Cancellation of Treasury Stock) |
Article 9 | (Articles of Incorporation and Officers of CMTH on and after Effective Date) |
1. | CMTH shall, at the extraordinary general meeting of shareholders provided for in Article 5, Paragraph 1 (including the class shareholders’ meeting, which is provided for in Article 5, Paragraph 1, if required by laws and regulations), seek a resolution approving the amendments to its Articles of Incorporation to (i) change its trade name to MITSUI SUMITOMO TRUST HOLDINGS KABUSHIKI KAISHA (which shall be written as Sumitomo Mitsui Trust Holdings, Inc., in English); (ii) change the location of its head office to Chiyoda-ku, Tokyo; (iii) add the contents of CMTH Preferred Stock; and (iv) make other changes as agreed by and between CMTH and STB, which amendments shall be made as of the Effective Date, on the condition that the Share Exchange takes effect. |
2. | CMTH and STB shall separately negotiate and agree on the composition of officers of CMTH as of the Effective Date. The number of candidates for directors to be nominated by CMTH shall be the same as the number of candidates for directors to be nominated by STB. The number of candidates for corporate auditors to be nominated by CMTH shall be the same as the number of candidates for corporate auditors to be nominated by STB. CMTH shall, at the extraordinary general meeting of shareholders provided for in Article 5, Paragraph 1, seek a resolution approving the election, as of the Effective Date, on the condition that the Share Exchange takes effect, of the candidates to be newly elected as directors and corporate auditors of CMTH based on the above-mentioned agreement. In addition, CMTH and STB shall respectively conduct any and all acts to be required to make the composition of officers of CMTH as of the Effective Date be the composition based on the above-mentioned agreement. |
Article 10 | (Amendments to Articles of Incorporation of STB) |
Appendix A-24
Table of Contents
Article 11 | (Granting of Voting Rights to Shareholders of STB) |
Article 12 | (Change of Terms and Conditions of Share Exchange and Cancellation of Share Exchange) |
1. | If, during the period after the date of execution of this Agreement and before the Effective Date, (i) there is a material change in the conditions of assets or business operations or rights and obligations of CMTH or STB, (ii) a situation arises or is discovered that materially obstructs the implementation of the Share Exchange, or (iii) some other reason that makes it difficult to achieve the purpose of this Agreement, CMTH and STB may, upon negotiation and agreement with each other, agree to change the terms and conditions of the Share Exchange and the contents of this Agreement or cancel the Share Exchange. |
2. | If, at the general meeting of shareholders of CMTH or STB provided for in Article 5, all or part of the resolutions provided for in Article 9 and Article 10 are not adopted, either party to this Agreement may cancel the Share Exchange after negotiation with the other party. |
Article 13 | (Validity of this Agreement) |
Article 14 | (Matters for Negotiation) |
Appendix A-25
Table of Contents
CMTH: | CHUO MITSUI TRUST HOLDINGS, INC. 33-1, Shiba 3-chome, Minato-ku, Tokyo President: Kazuo Tanabe | |
STB: | THE SUMITOMO TRUST AND BANKING COMPANY, LIMITED. 5-33, Kitahama 4-chome, Chuo-ku, Osaka President & CEO: Hitoshi Tsunekage |
Appendix A-26
Table of Contents
First Series of Class VII Preferred Stock of
Sumitomo Mitsui Trust Holdings, Inc.
1. | Type of Stock |
2. | Preferred Dividends |
(1) | In the case of payments of dividends from surplus as provided for in Article 49, Paragraph 1 of the Articles of Incorporation of the Company, the Company shall pay cash dividends in the amount of 42.30 Japanese Yen per share of the Preferred Shares (the “Preferred Dividends”) to the holders of shares of the Preferred Stock (the “Preferred Shareholders”) or the registered stock pledgees with respect to shares of the Preferred Stock (the “Registered Preferred Stock Pledgees”), in preference to the holders of shares of common stock (the “Common Shareholders”) or the registered stock pledgees with respect to shares of common stock (the “Registered Common Stock Pledgees”) ; provided, however, that if all or part of the Preferred Interim Dividends as provided for in Section 3 or all or part of the Extraordinary Preferred Dividends as provided for in Section 4 have been paid based on a record date falling within the fiscal year that includes such record date for the Preferred Dividends, the amount so paid shall be subtracted from the Preferred Dividends. |
(2) | If the amount of cash dividends from surplus paid to the Preferred Shareholders or the Registered Preferred Stock Pledgees is less than the amount of the Preferred Dividends in any fiscal year, such deficiency shall not be carried over for accumulation to subsequent fiscal years. |
(3) | The Company shall not pay dividends in excess of the amount of the Preferred Dividends to the Preferred Shareholders or the Registered Preferred Stock Pledgees. |
3. | Preferred Interim Dividends |
4. | Extraordinary Preferred Dividends |
Appendix A-27
Table of Contents
5. | Distribution of Residual Assets |
(1) | In the case of distributions of residual assets, the Company shall pay 1,000 Japanese Yen per share of the Preferred Stock to the Preferred Shareholders or the Registered Preferred Stock Pledgees, in preference to the Common Shareholders or the Registered Common Stock Pledgees. |
(2) | Other than a distribution provided for in the preceding Item, no distribution of residual assets shall be made to the Preferred Shareholders or the Registered Preferred Stock Pledgees. |
6. | Consolidations or Splits of Shares of Preferred Stock; Allotment of Offered Shares, Etc. |
(1) | Unless otherwise provided for by laws and ordinances, no consolidations or splits of shares shall be made with respect to shares of the Preferred Stock. |
(2) | The Company shall not give the Preferred Shareholders any rights to receive an allotment of offered shares or stock acquisition rights. The Company shall not allot any shares of stock or stock acquisition rights to the Preferred Shareholders without consideration. |
7. | Provisions for the Acquisition of Shares of the Preferred Stock for Monetary Consideration |
(1) | The Company may, on the date separately provided for by the Board of Directors, which is on or after October 1, 2014 (the “Acquisition Date”), acquire all or part of the shares of the Preferred Stock in exchange for cash in the amount obtained by adding 1,000 yen per share to the amount equivalent to the accrued dividend from surplus (which is obtained by multiplying (i) (a) the number of days included in the period commencing on and including the first day of the fiscal year that includes the Acquisition Date and ending on and including the day immediately preceding the Acquisition Date, divided by (b) 365, by (ii) the amount of the Preferred Dividends (calculation for an amount less than one (1) yen shall be made to the third (3rd) decimal places and shall be rounded off to two (2) decimal places)); provided, however, that if all or part of the Preferred Interim Dividends or all or part of the Extraordinary Preferred Dividends have been paid, during the fiscal year that includes the Acquisition Date, based on a record date that is on or prior to the day immediately preceding the Acquisition Date, the amount so paid shall be subtracted from the amount of accrued dividend from surplus. |
(2) | In the event that a part of the shares of the Preferred Stock is acquired in accordance with the preceding Item, the shares of preferred stock to be acquired shall be decided by lottery or by proportional allotment. |
8. | Voting Rights |
Appendix A-28
Table of Contents
9. | Order of Priority |
10. | Period of Limitations for Dividends |
Appendix A-29
Table of Contents
(1) | CMTH is a joint-stock company duly and validly organized and validly existing under the laws of Japan and has the corporate power and authority necessary to carry on its business as it is presently being conducted. | |
(2) | CMTH has the corporate power and authority necessary to duly and validly enter into and perform this Agreement. The execution and performance of this Agreement by CMTH shall be within the extent of CMTH’s corporate purpose, and CMTH has performed all procedures required by the Laws and Regulations, CMTH’s Articles of Incorporation and CMTH’s other internal rules in order to enter into and perform this Agreement. | |
(3) | If this Agreement is duly and validly entered into by CMTH and is also duly and validly entered into by the other party, this Agreement shall, in accordance with its terms and conditions, constitute the legal, valid and legally binding obligation of CMTH, which shall be enforceable against CMTH. | |
(4) | The execution and performance of this Agreement by CMTH will not (a) contravene any Laws and Regulations, (b) violate CMTH’s Articles of Incorporation or any other internal rules of CMTH, or (c) disobey the Judicial and Administrative Organs’ Judgment. | |
(5) | CMTH’s financial statements as of March 31, 2010 (“CMTH’s Basic Account Closing Date”) (including both consolidated and non-consolidated statements and meaning the financial statements accompanied by an audit certificate by publicly certified accountants or an auditing firm; the same shall apply hereinafter) have been properly prepared pursuant to the Regulation for Terminology, Forms and Preparation of Financial Statements and the Regulation for Terminology, Forms and Preparation of Consolidated Financial Statements and in accordance with the generally accepted accounting standards and accounting practices in Japan (the “Japanese GAAP”). (With respect to the consolidated financial statements, the classification of assets and liabilities and the classification of income and expenses have been governed by the Ordinance for Enforcement of the Banking Act.) The above-mentioned financial statements fairly and correctly present, in material respects, the financial condition of CMTH as of CMTH’s Basic Account Closing Date and the result of operations of CMTH for the business year ended the same date, in accordance with the Japanese GAAP. | |
(6) | The securities reports, quarterly reports, internal control reports or extraordinary reports (including amendment reports therefor) submitted pursuant to the Financial Instruments and Exchange Act on or after April 1, 2008 contain no false statements on material matters and do not fail to state any material matter to be stated or any material fact necessary to prevent these reports from being misleading. | |
(7) | Each of CMTH, CMTB and CMATB has developed a system for terminating its relationship with antisocial forces in order to prevent damage caused by such antisocial forces. | |
(8) | To the best of CMTH’s knowledge, all information disclosed by CMTH to STB or the Concerned Parties in the course of due diligence conducted in connection with the Management Integration is true and correct in all material respects, does not mislead STB with respect to material facts and does not omit any material fact that would mislead STB. Furthermore, as to the matters requested by STB to disclose in the course of due diligence conducted in connection with the Management Integration, all information that would, in CMTH’s reasonable opinion, have a material adverse effect on STB’s judgment concerning the Management Integration has already been disclosed to STB. |
Appendix A-30
Table of Contents
(1) | STB is a joint-stock company duly and validly organized and validly existing under the laws of Japan and has the corporate power and authority necessary to carry on its business as it is presently being conducted. | |
(2) | STB has the corporate power and authority necessary to duly and validly enter into and perform this Agreement. The execution and performance of this Agreement by STB shall be within the extent of STB’s corporate purpose, and STB has performed all procedures required by the Laws and Regulations, STB’s Articles of Incorporation and STB’s other internal rules in order to enter into and perform this Agreement. | |
(3) | If this Agreement is duly and validly entered into by STB and is also duly and validly entered into by the other party, this Agreement shall, in accordance with its terms and conditions, constitute the legal, valid and legally binding obligation of STB, which shall be enforceable against STB. | |
(4) | The execution and performance of this Agreement by STB will not (a) contravene any Laws and Regulations, (b) violate STB’s Articles of Incorporation or any other internal rules of STB, or (c) disobey the Judicial and Administrative Organs’ Judgment. | |
(5) | STB’s financial statements as of March 31, 2010 (“STB’s Basic Account Closing Date”) (including both consolidated and non-consolidated statements and meaning the financial statements accompanied by an audit certificate by publicly certified accountants or an auditing firm; the same shall apply hereinafter) have been properly prepared pursuant to the Regulation for Terminology, Forms and Preparation of Financial Statements and the Regulation for Terminology, Forms and Preparation of Consolidated Financial Statements and in accordance with the “Japanese GAAP. (With respect to the consolidated financial statements, the classification of assets and liabilities and the classification of income and expenses have been governed by the Ordinance for Enforcement of the Banking Act.) The above-mentioned financial statements fairly and correctly present, in material respects, the financial condition of STB as of STB’s Basic Account Closing Date and the result of operations of STB for the business year ended the same date, in accordance with the Japanese GAAP. | |
(6) | The securities reports, quarterly reports, internal control reports or extraordinary reports (including amendment reports therefor) submitted pursuant to the Financial Instruments and Exchange Act on or after April 1, 2008 contain no false statements on material matters and do not fail to state any material matter to be stated or any material fact necessary to prevent these reports from being misleading. | |
(7) | STB has developed a system for terminating its relationship with antisocial forces in order to prevent damage caused by such antisocial forces. | |
(8) | To the best of STB’s knowledge, all information disclosed by STB to CMTH or the Concerned Parties in the course of due diligence conducted in connection with the Management Integration is true and correct in all material respects, does not mislead CMTH with respect to material facts and does not omit any material fact that would mislead CMTH. Furthermore, as to the matters requested by CMTH to disclose in the course of due diligence conducted in connection with the Management Integration, all information that would, in STB’s reasonable opinion, have a material adverse effect on CMTH’s judgment concerning the Management Integration has already been disclosed to CMTH. |
Appendix A-31
Table of Contents
Chairman | Hitoshi Tsunekage | |
President | Kazuo Tanabe | |
Director | Jun Okuno | |
Director | Kiyoshi Mukohara | |
Director | Kunitaro Kitamura | |
Director | Akio Otsuka | |
Director | Nobuo Iwasaki | |
Director | Junichi Sayato | |
Director | Shinji Ochiai | |
Director | Tetsuo Ohkubo |
Auditor | Teruhiko Sugita | |
Auditor | Tetsuo Amano | |
External auditor | Hitoshi Maeda | |
External auditor | Hiroyuki Nakanishi | |
External auditor | Toshio Hoshino | |
External auditor | Yasuhiko Takano |
Appendix A-32
Table of Contents
CMTH: | Chuo Mitsui Trust Holdings, Inc. 33-1, Shiba 3-chome, Minato-ku, Tokyo President: Kazuo Tanabe | |
STB: | The Sumitomo Trust and Banking Company, Limited 5-33, Kitahama 4-chome, Chuo-ku, Osaka President & CEO: Hitoshi Tsunekage |
Appendix A-33
Table of Contents
Appendix B-1
Table of Contents
Appendix B-2
Table of Contents
Appendix B-3
Table of Contents
1. | reviewed and analyzed each of the Draft Agreements; |
2. | reviewed and analyzed financial information and business descriptions contained in the annual securities reports (yuka-shoken hokokusho) and other disclosure materials of STB and CMTH; |
3. | reviewed and analyzed publicly available materials, including share-related information, related to STB and CMTH; |
4. | reviewed and analyzed the business plans of STB and CMTH prepared and provided to us by STB and CMTH, respectively, for the period between April 1, 2010 and March 31, 2016 and any other related information provided to us by STB, including through interviews; |
5. | reviewed and analyzed the expected synergies relating to the Transaction prepared and provided to us by each of STB and CMTH; |
6. | interviewed the management of STB and CMTH regarding their respective finances and businesses, financial forecasts and the effects of the Transaction, including the expected synergies; |
7. | reviewed and analyzed the historical market prices and trading activity of the shares of common stock of each of STB and CMTH; |
8. | reviewed the report, dated July 13, 2010, on legal due diligence performed by STB’s legal advisors on CMTH received from STB; |
9. | reviewed the report, dated July 12, 2010, on financial due diligence performed by STB’s accounting advisors on CMTH received from STB; |
10. | reviewed the report, dated July 12, 2010, on tax due diligence performed by STB’s tax advisors on CMTH received from STB; and |
11. | reviewed and analyzed other related information we deemed appropriate. |
Appendix C-1
Table of Contents
Appendix C-2
Table of Contents
Appendix C-3
Table of Contents
UNAUDITED JAPANESE GAAP RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2010
Consolidated Financial Statements for the 1st Quarter of Fiscal Year 2010 [under Japanese GAAP]
Ordinary Income | Ordinary Profit | Net Income | ||||||||||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | |||||||||||||||||||||||||
1st Quarter FY 2010 | 91,800 | 2.1 | 27,838 | 72.6 | 19,048 | 100.0 | ||||||||||||||||||||||||
1st Quarter FY 2009 | 89,889 | (10.9 | ) | 16,131 | (15.7 | ) | 9,525 | (1.5 | ) | |||||||||||||||||||||
Net Income per Common | Net Income per Common | |||||||||
Share (Basic) | Share (Diluted) | |||||||||
Yen | Yen | |||||||||
1st Quarter FY 2010 | 11.48 | – | ||||||||
1st Quarter FY 2009 | 8.23 | 5.94 | ||||||||
Net Assets per Common | ||||||||||||||||||||
Total Assets | Net Assets | Net Assets Ratio | Share | |||||||||||||||||
As of | Million yen | Million yen | % | Yen | ||||||||||||||||
June 30, 2010 | 13,694,172 | 840,758 | 4.8 | 393.04 | ||||||||||||||||
March 31, 2010 | 14,977,966 | 846,556 | 4.4 | 397.69 | ||||||||||||||||
1st | 2nd | 3rd | Fiscal | ||||||||||||||||||||||
Record Date | Quarter-end | Quarter-end | Quarter-end | Year-end | Annual | ||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||||||||||||||
Fiscal Year 2009 | - | 0.00 | - | 8.00 | 8.00 | ||||||||||||||||||||
Fiscal Year 2010 | - | - | - | - | - | ||||||||||||||||||||
(1) | Changes in significant Subsidiaries and Affiliates (Specified Subsidiary): None |
(2) | Adoption of simplified accounting methods and particular accounting methods for preparing quarterly consolidated financial statements: Yes |
Appendix D-1
Table of Contents
(3) | Changes in accounting principles, procedures, and presentation rules: |
1) | Number of shares of common stock outstanding (including treasury stock) June 30, 2010: 1,658,426,267 shares; March 31, 2010: 1,658,426,267 shares | |
2) | Number of shares of treasury stock June 30, 2010: 370,198 shares; March 31, 2010: 366,149 shares | |
3) | Average number of shares of common stock outstanding (for the 1st Quarter of Fiscal Year) 1st Quarter FY 2010: 1,658,057,966 shares; 1st Quarter FY 2009: 1,157,225,651 shares |
At the time of this financial statement disclosure, procedure to review the quarterly financial statement in accordance with the Financial Instruments and Exchange Act has not been completed yet.
Appendix D-2
Table of Contents
(2) | Adoption of simplified accounting methods and specific accounting methods for preparing quarterly consolidated financial statements |
Appendix D-3
Table of Contents
1. | Qualitative information regarding consolidated financial statements for 1st Quarter FY 2010 |
Appendix D-4
Table of Contents
2. | Others |
(2) | Adoption of simplified accounting methods and specific accounting methods for preparing quarterly consolidated financial statements |
Appendix D-5
Table of Contents
Consolidated Balance Sheet
As of June 30, | As of March 31, | |||||||||
2010 | 2010 | |||||||||
(in millions of yen) | ||||||||||
ASSETS | ||||||||||
Cash and due from banks | 379,730 | 262,240 | ||||||||
Call loans and bills bought | 142,502 | 9,884 | ||||||||
Receivables under securities borrowing transactions | 1,257 | 1,521 | ||||||||
Monetary claims bought | 90,034 | 98,818 | ||||||||
Trading assets | 71,895 | 22,778 | ||||||||
Money held in trust | 2,294 | 2,234 | ||||||||
Securities | 3,561,856 | 4,525,683 | ||||||||
Loans and bills discounted | 8,390,497 | 8,941,948 | ||||||||
Foreign exchanges | 718 | 767 | ||||||||
Other assets | 408,247 | 446,145 | ||||||||
Tangible fixed assets | 125,574 | 126,000 | ||||||||
Intangible fixed assets | 58,426 | 58,940 | ||||||||
Deferred tax assets | 152,366 | 150,296 | ||||||||
Customers’ liabilities for acceptances and guarantees | 360,822 | 384,117 | ||||||||
Allowance for loan losses | (52,051 | ) | (53,410 | ) | ||||||
Total assets | 13,694,172 | 14,977,966 | ||||||||
LIABILITIES | ||||||||||
Deposits | 8,782,434 | 8,759,917 | ||||||||
Negotiable certificates of deposit | 234,700 | 327,190 | ||||||||
Call money and bills sold | 209,863 | 306,161 | ||||||||
Payables under securities lending transactions | 1,110,569 | 1,702,697 | ||||||||
Trading liabilities | 8,354 | 7,911 | ||||||||
Borrowed money | 620,586 | 1,217,246 | ||||||||
Foreign exchanges | 0 | 21 | ||||||||
Bonds payable | 231,287 | 234,750 | ||||||||
Due to trust accounts | 938,794 | 995,612 | ||||||||
Other liabilities | 334,319 | 170,887 | ||||||||
Provision for bonuses | 14 | 3,160 | ||||||||
Provision for retirement benefits | 2,691 | 2,662 | ||||||||
Provision for directors’ retirement benefits | 1,168 | 1,704 | ||||||||
Provision for contingent losses | 13,461 | 12,022 | ||||||||
Deferred tax liabilities | 4,344 | 5,346 | ||||||||
Acceptances and guarantees | 360,822 | 384,117 | ||||||||
Total liabilities | 12,853,413 | 14,131,410 | ||||||||
NET ASSETS | ||||||||||
Capital stock | 261,608 | 261,608 | ||||||||
Retained earnings | 383,403 | 377,619 | ||||||||
Treasury stock | (271 | ) | (270 | ) | ||||||
Shareholders’ equity | 644,740 | 638,957 | ||||||||
Valuation difference onavailable-for-sale securities | 19,491 | 35,002 | ||||||||
Deferred gains or losses on hedges | 4,849 | 2,705 | ||||||||
Revaluation reserve for land | (15,532 | ) | (15,532 | ) | ||||||
Foreign currency translation adjustment | (1,854 | ) | (1,738 | ) | ||||||
Valuation and translation adjustments | 6,953 | 20,436 | ||||||||
Minority interests | 189,064 | 187,161 | ||||||||
Total net assets | 840,758 | 846,556 | ||||||||
Total liabilities and net assets | 13,694,172 | 14,977,966 | ||||||||
Appendix D-6
Table of Contents
Consolidated Statement of Income
1st Quarter FY | 1st Quarter FY | |||||||||
2010 | 2009 | |||||||||
(in millions of yen) | ||||||||||
Ordinary income | 91,800 | 89,889 | ||||||||
Trust fees | 10,135 | 12,538 | ||||||||
Interest income | 40,816 | 44,708 | ||||||||
Interest on loans and discounts | 27,612 | 31,542 | ||||||||
Interest and dividends on securities | 11,828 | 12,570 | ||||||||
Fees and commissions | 21,450 | 19,002 | ||||||||
Trading income | 340 | 519 | ||||||||
Other ordinary income | 15,301 | 7,807 | ||||||||
Other income | 3,755 | 5,313 | ||||||||
Ordinary expenses | 63,962 | 73,758 | ||||||||
Interest expenses | 15,606 | 18,319 | ||||||||
Interest on deposits | 10,639 | 11,618 | ||||||||
Fees and commission payments | 5,345 | 4,445 | ||||||||
Trading expenses | 212 | 60 | ||||||||
Other ordinary expenses | 2,380 | 1,244 | ||||||||
General and administrative expenses | 34,681 | 37,901 | ||||||||
Other expenses | 5,736 | 11,787 | ||||||||
Ordinary profit | 27,838 | 16,131 | ||||||||
Extraordinary income | 1,515 | 554 | ||||||||
Reversal of allowance for loan losses | 928 | - | ||||||||
Recoveries of written-off claims | 561 | 333 | ||||||||
Reversal of allowance for contingent losses | - | 220 | ||||||||
Other | 24 | 0 | ||||||||
Extraordinary loss | 1,169 | 141 | ||||||||
Loss on disposal of noncurrent assets | 35 | 141 | ||||||||
Management integration expenses | 909 | - | ||||||||
Other | 225 | - | ||||||||
Income before income taxes | 28,183 | 16,544 | ||||||||
Income taxes-current | 1,649 | 1,632 | ||||||||
Income taxes-deferred | 5,548 | 3,526 | ||||||||
Total income taxes | 7,198 | 5,159 | ||||||||
Income before minority interests in income | 20,985 | |||||||||
Minority interests in income | 1,936 | 1,859 | ||||||||
Net income | 19,048 | 9,525 | ||||||||
Appendix D-7
Table of Contents
Appendix D-8
Table of Contents
CMTH AS OF AND FOR THE YEAR ENDED MARCH 31, 2010
Fiscal year ended | ||||||
March 31, 2010 | ||||||
(Millions of yen) | ||||||
CMTH’s net income under IFRS | ¥ | 104,104 | ||||
Differences arising from: | ||||||
Scope of consolidation and derecognition of transferred financial assets | (2,551 | ) | ||||
Financial instruments -Loans and advances: | ||||||
Reserve for impaired loans | 2,310 | |||||
Fee income and commissions | (820 | ) | ||||
Financial asset de-recognition | (13 | ) | ||||
Financial instruments other than loans and advances: | ||||||
Fair value of quoted investments | — | |||||
Financial asset de-recognition | (615 | ) | ||||
Unquoted equity securities classified asavailable-for-sale | (3,062 | ) | ||||
Amortized cost for debt instruments | (2 | ) | ||||
Impairment of investment securities-equity securities | 3,675 | |||||
Hedge accounting | 1,159 | |||||
Embedded derivatives | (10,224 | ) | ||||
Derecognition of financial liabilities | (1,393 | ) | ||||
Property and equipments | 31 | |||||
Retirement benefit obligations | (11,226 | ) | ||||
Reclassification from equity to liabilities | 1,029 | |||||
Recoverability of deferred income tax assets | (26,938 | ) | ||||
Other | (965 | ) | ||||
Less profit attributable to non-controlling interests | (7,673 | ) | ||||
CMTH’s net income under Japanese GAAP | ¥ | 46,826 |
Appendix E-1
Table of Contents
Fiscal year ended | ||||||
March 31, 2010 | ||||||
(Millions of yen) | ||||||
CMTH’s total equity under IFRS | ¥ | 843,248 | ||||
Differences arising from different accounting for: | ||||||
Scope of consolidation and derecognition of transferred financial assets | 22,367 | |||||
Financial instruments -Loans and advances: | ||||||
Reserve for impaired loans | 4,069 | |||||
Fee income and commissions | 3,077 | |||||
Financial asset de-recognition | 24 | |||||
Financial instruments other than loans and advances: | ||||||
Fair value of quoted investments | (22,828 | ) | ||||
Financial asset de-recognition | (1,072 | ) | ||||
Unquoted equity securities classified asavailable-for-sale | (43,576 | ) | ||||
Amortized cost for debt instruments | (31 | ) | ||||
Impairment of investment securities-equity securities | — | |||||
Hedge accounting | (523 | ) | ||||
Embedded derivatives | 8,517 | |||||
Derecognition of financial liabilities | 22,533 | |||||
Property and equipments | (8,677 | ) | ||||
Retirement benefit obligations | 50,012 | |||||
Other | (255 | ) | ||||
Tax effect of the above | (12,997 | ) | ||||
Recoverability of deferred income tax assets | (17,332 | ) | ||||
CMTH’s total equity under Japanese GAAP | ¥ | 846,556 |
Appendix E-2
Table of Contents
Financial Results for the First Quarter of the Fiscal Year 2010
[Japanese GAAP] (Consolidated)
Stock exchange listings | : Tokyo and Osaka (code: 8403) | |
URL | :http://www.sumitomotrust.co.jp/IR/company/index_en. html | |
Representative | : Hitoshi Tsunekage, President and CEO | |
For inquiry | : Tadashi Nishimura, Executive Officer, General Manager of Financial Management Department TEL +81-3-3286-8354 | |
Filing date of quarterly securities report (Scheduled) | : August 13, 2010 | |
Trading accounts | : Established | |
Payment date of cash dividends (Scheduled) | : — | |
Supplementary explanatory material | : Prepared | |
Information meeting (Scheduled) | : None | |
(All amounts less than one million yen are rounded down.) |
1. | Consolidated Financial Results for the First Quarter of the Fiscal Year 2010 (April 1, 2010 through June 30, 2010) |
Ordinary Income | Ordinary Profit | Net Income | ||||||||||||||||||||||||||||
Three Months Ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||||||||||||||
June 30, 2010 | 211,256 | (0.1 | ) | 39,975 | 138.1 | 24,339 | 99.6 | |||||||||||||||||||||||
June 30, 2009 | 211,420 | (6.0 | ) | 16,791 | (25.2 | ) | 12,196 | (5.8 | ) | |||||||||||||||||||||
Net Income | Net Income per Share | |||||||||
per Share | (Fully Diluted) | |||||||||
Three Months Ended | Yen | Yen | ||||||||
June 30, 2010 | 14.54 | – | ||||||||
June 30, 2009 | 7.28 | – | ||||||||
Net Assets | ||||||||||||||||||||
to Total Assets | Net Assets | |||||||||||||||||||
Total Assets | Net Assets | Ratio | per Share | |||||||||||||||||
As of | Millions of yen | Millions of yen | % | Yen | ||||||||||||||||
June 30, 2010 | 20,140,667 | 1,449,459 | 5.7 | 617.03 | ||||||||||||||||
March 31, 2010 | 20,551,049 | 1,449,945 | 5.6 | 619.15 | ||||||||||||||||
Appendix F-1
Table of Contents
(Note) | This item shows whether there have been changes in specified subsidiaries resulted in changes in the scope of consolidation during the first quarter of the fiscal year 2010 or not. |
(Note) | This item shows whether there is adoption of simplified accounting methods and accounting treatments peculiar to the preparation of quarterly consolidated financial statements or not. |
(Note) | This item shows whether there are changes in accounting principles, procedures and presentation methods in the preparation of quarterly consolidated financial statements or not. |
June 30, 2010 : | 1,675,128,546 shares, | March 31, 2010 : | 1,675,128,546 shares |
June 30, 2010 : | 568,920 shares, | March 31, 2010 : | 556,984 shares |
June 30, 2010 : | 1,674,563,885 shares, | June 30, 2009 : | 1,674,600,340 shares |
Appendix F-2
Table of Contents
Appendix F-3
Table of Contents
Appendix F-4
Table of Contents
Appendix F-5
Table of Contents
(Millions of yen) | ||||||||
As of | As of | |||||||
June 30, 2010 | March 31, 2010 | |||||||
Assets: | ||||||||
Cash and Due from Banks | 715,892 | 970,869 | ||||||
Call Loans and Bills Bought | 277,428 | 86,485 | ||||||
Receivables under Resale Agreements | 22,135 | — | ||||||
Receivables under Securities Borrowing Transactions | 214,096 | — | ||||||
Monetary Claims Bought | 460,997 | 489,816 | ||||||
Trading Assets | 737,432 | 761,850 | ||||||
Money Held in Trust | 22,232 | 22,345 | ||||||
Securities | 3,886,679 | 4,084,091 | ||||||
Loans and Bills Discounted | 11,231,479 | 11,686,629 | ||||||
Foreign Exchanges | 6,510 | 5,553 | ||||||
Lease Receivables and Investment Assets | 648,577 | 650,540 | ||||||
Other Assets | 1,373,633 | 1,203,651 | ||||||
Tangible Fixed Assets | 125,246 | 125,802 | ||||||
Intangible Fixed Assets | 168,158 | 170,043 | ||||||
Deferred Tax Assets | 89,472 | 79,131 | ||||||
Customers’ Liabilities for Acceptances and Guarantees | 280,912 | 339,837 | ||||||
Allowance for Loan Losses | (120,219 | ) | (125,598 | ) | ||||
Total Assets | 20,140,667 | 20,551,049 | ||||||
Liabilities: | ||||||||
Deposits | 11,847,950 | 12,251,117 | ||||||
Negotiable Certificates of Deposit | 2,318,310 | 2,350,884 | ||||||
Call Money and Bills Sold | 171,387 | 79,519 | ||||||
Payables under Repurchase Agreements | 449,584 | 601,787 | ||||||
Trading Liabilities | 134,231 | 97,945 | ||||||
Borrowed Money | 1,114,870 | 1,172,338 | ||||||
Foreign Exchanges | 23 | 31 | ||||||
Short-term Bonds Payable | 471,130 | 438,667 | ||||||
Bonds Payable | 533,029 | 531,815 | ||||||
Borrowed Money from Trust Account | 448,971 | 430,969 | ||||||
Other Liabilities | 892,001 | 771,305 | ||||||
Provision for Bonuses | 4,501 | 10,051 | ||||||
Provision for Directors’ Bonuses | 156 | 411 | ||||||
Provision for Retirement Benefits | 8,883 | 8,927 | ||||||
Provision for Reimbursement of Deposits | 1,043 | 1,043 | ||||||
Provision for Contingent Loss | 8,021 | 8,258 | ||||||
Provision for Relocation Expenses | 379 | 379 | ||||||
Deferred Tax Liabilities | 40 | 34 | ||||||
Deferred Tax Liabilities for Land Revaluation | 5,776 | 5,778 | ||||||
Acceptances and Guarantees | 280,912 | 339,837 | ||||||
Total Liabilities | 18,691,208 | 19,101,104 | ||||||
Net Assets: | ||||||||
Shareholders’ Equity: | 1,157,723 | 1,144,068 | ||||||
Capital Stock | 342,037 | 342,037 | ||||||
Capital Surplus | 297,052 | 297,052 | ||||||
Retained Earnings | 519,106 | 505,444 | ||||||
Treasury Stock | (472 | ) | (465 | ) | ||||
Valuation and Translation Adjustments: | (15,477 | ) | 4,050 | |||||
Valuation Difference onAvailable-for-Sale Securities | (6,842 | ) | 9,188 | |||||
Deferred Gains or Losses on Hedges | 5,957 | 9,440 | ||||||
Revaluation Reserve for Land | (4,654 | ) | (4,655 | ) | ||||
Foreign Currency Translation Adjustment | (9,938 | ) | (9,922 | ) | ||||
Minority Interests | 307,213 | 301,826 | ||||||
Total Net Assets | 1,449,459 | 1,449,945 | ||||||
Total Liabilities and Net Assets | 20,140,667 | 20,551,049 | ||||||
Appendix F-6
Table of Contents
(Millions of yen) | ||||||||
Three Months Ended | Three Months Ended | |||||||
June 30, 2009 | June 30, 2010 | |||||||
Ordinary Income: | ||||||||
Trust Fees | 12,713 | 12,000 | ||||||
Interest Income: | 74,708 | 58,692 | ||||||
Interest on Loans and Discounts | 48,151 | 41,072 | ||||||
Interest and Dividends on Securities | 23,037 | 13,887 | ||||||
Fees and Commissions | 21,844 | 37,426 | ||||||
Trading Income | 3,641 | 229 | ||||||
Other Ordinary Income | 93,913 | 97,043 | ||||||
Other Income | 4,599 | 5,864 | ||||||
Ordinary Income | 211,420 | 211,256 | ||||||
Ordinary Expenses: | ||||||||
Interest Expenses: | 30,019 | 21,738 | ||||||
Interest on Deposits | 18,154 | 14,037 | ||||||
Fees and Commissions Payments | 5,782 | 13,134 | ||||||
Trading Expenses | 114 | 151 | ||||||
Other Ordinary Expenses | 80,247 | 72,899 | ||||||
General and Administrative Expenses | 51,769 | 57,313 | ||||||
Other Expenses | 26,696 | 6,044 | ||||||
Ordinary Expenses | 194,629 | 171,281 | ||||||
Ordinary Profit | 16,791 | 39,975 | ||||||
Extraordinary Income: | 9,517 | 3,157 | ||||||
Gain on Disposal of Fixed Assets | 1 | 0 | ||||||
Reversal of Allowance for Loan Losses | – | 3,106 | ||||||
Recoveries of Written-off Claims | 46 | 50 | ||||||
Other | 9,469 | – | ||||||
Extraordinary Loss: | 99 | 757 | ||||||
Loss on Disposal of Fixed Assets | 72 | 59 | ||||||
Impairment Loss | 26 | 81 | ||||||
Other | — | 617 | ||||||
Income before Income Taxes and Minority Interests | 26,210 | 42,375 | ||||||
Income Taxes: | 10,398 | 14,813 | ||||||
Current | 10,285 | 11,878 | ||||||
Deferred | 112 | 2,935 | ||||||
Income before Minority Interests | – | 27,561 | ||||||
Minority Interests in Income | 3,614 | 3,221 | ||||||
Net Income | 12,196 | 24,339 | ||||||
Appendix F-7
Table of Contents
STB AS OF AND FOR THE YEAR ENDED MARCH 31, 2010
Note | Net Profit | |||||||
(Millions of yen) | ||||||||
IFRS | ¥ 82,114 | |||||||
Scope of consolidation | 2 | (15,307 | ) | |||||
Financial instruments | ||||||||
Classification of financial instruments | 2 | - | ||||||
Impairment ofavailable-for-sale investment securities | 2 | 36,583 | ||||||
Fair value adjustments to investment securities | 2 | 0 | ||||||
Embedded derivatives | 2 | (6,704 | ) | |||||
Hedge accounting | 2 | (23,879 | ) | |||||
Allowance for loan losses | 2 | 27,168 | ||||||
Effective interest method of loans and advances | 2 | 5,217 | ||||||
Fair value of derivatives | 2 | 537 | ||||||
Property and equipment and investment property | 2 | 919 | ||||||
Intangible assets | ||||||||
Software costs | 2 | 749 | ||||||
Goodwill | 2 | (31,300 | ) | |||||
Intangible assets purchased through acquisition of Nikko Asset Management Co., Ltd. | 1 | (1,148 | ) | |||||
Retirement benefit obligations | 2 | (11,563 | ) | |||||
Lease reclassification | 2 | 6,263 | ||||||
Foreign operations | 2 | (69 | ) | |||||
Others | 2 | (1,473 | ) | |||||
Tax effects of the above | 2 | (8,607 | ) | |||||
Income taxes | 2 | 7,257 | ||||||
Japanese GAAP | ¥ 66,757 | |||||||
Appendix G-1
Table of Contents
Note | Total equity | |||||||
(Millions of yen) | ||||||||
IFRS | ¥ 1,441,468 | |||||||
Scope of consolidation | 2 | (5,884 | ) | |||||
Financial instruments | ||||||||
Classification of financial instruments | 2 | (2,525 | ) | |||||
Impairment ofavailable-for-sale investment securities | 2 | 24,606 | ||||||
Fair value adjustments to investment securities | 2 | (36,744 | ) | |||||
Embedded derivatives | 2 | (1,239 | ) | |||||
Hedge accounting | 2 | (3,069 | ) | |||||
Allowance for loan losses | 2 | (29,801 | ) | |||||
Effective interest method of loans and advances | 2 | 21,043 | ||||||
Fair value of derivatives | 2 | 1,349 | ||||||
Property and equipment and investment property | 2 | (1,077 | ) | |||||
Intangible assets | ||||||||
Software costs | 2 | (2,529 | ) | |||||
Goodwill | 2 | 27,855 | ||||||
Intangible assets purchased through acquisition of Nikko Asset Management Co., Ltd. | 1 | (16,556 | ) | |||||
Retirement benefit obligations | 2 | 38,568 | ||||||
Lease reclassification | 2 | (15,847 | ) | |||||
Others | 2 | 1,495 | ||||||
Tax effects of the above | 2 | 21,365 | ||||||
Income taxes | 2 | (12,533 | ) | |||||
Japanese GAAP | ¥ 1,449,945 | |||||||
1. | During the fiscal year ended March 31, 2010, STB completed the acquisition of Nikko Asset Management Co., Ltd. (NAM). Upon the acquisition, under Japanese GAAP, goodwill is recognized as the excess of the consideration transferred over the fair value of the net assets of the acquiree. The recognition of additional intangible assets which had not been recognized in the acquiree’s statement of financial position is permitted as long as they meet recognition criteria, but not required. Goodwill is amortized over a period generally not exceeding 20 years and not expected to be deductible for tax purposes. | |
Under IFRS, goodwill is recognized as the excess of the consideration transferred over the net of the identifiable assets acquired and the liabilities assumed measured in accordance with IFRS 3 as of the date of the acquisition. Goodwill is not amortized. Instead, goodwill is subject to an annual impairment testing. In regards to the recognition of identifiable assets acquired, IAS 38 “Intangible Assets” specifically requires that intangible assets are recognized separately if they arise from contractual or other legal rights or if they are separable. Upon the acquisition of NAM, STB recognized additional intangible assets, which consist of investment trust contracts and investment advisory contracts. The newly recognized intangible assets were amortized over the period of 7.5 years- 13.5 years. As a result, the additional amortization was recognized, which has been offset by the effect of a reversal of goodwill amortization recognized under Japanese GAAP. | ||
2. | Refer to Note 3 of STB’s consolidated financial statements included elsewhere in this prospectus for detailed discussion of these reconciling items between Japanese GAAP and IFRS. |
Appendix G-2
Table of Contents
Appendix H-1
Table of Contents
Appendix H-2
Table of Contents
Appendix H-3
Table of Contents
Appendix H-4
Table of Contents
Appendix H-5
Table of Contents
Appendix H-6
Table of Contents
Appendix H-7
Table of Contents
Appendix H-8
Table of Contents
Appendix H-9
Table of Contents
Appendix H-10
Table of Contents
Appendix H-11
Table of Contents
Appendix H-12
Table of Contents
Appendix H-13
Table of Contents
Appendix H-14
Table of Contents
Exhibit Number | Description of Exhibit | |
2.1 | Share Exchange Agreement, Management Integration Agreement and Memorandum on Share Exchange Agreement (English translations filed herewith as Appendix A to the prospectus which is part of this Registration Statement) | |
3.1 | Articles of Incorporation of CMTH (English translation) | |
3.2 | Regulations of the Board of Directors of CMTH (English translation) | |
3.3 | Share Handling Regulations of CMTH (English translation) | |
4.1 | Form of Amended and Restated Deposit Agreement to be entered into by and among CMTH, STB, BNYM and the holders from time to time of American depositary receipts issued thereunder | |
5.1 | Opinion of Nagashima Ohno & Tsunematsu re: legality of securities | |
8.1 | Opinion of Davis Polk & Wardwell LLP re: U.S. federal income tax consequences of the share exchange (included in “Taxation—United States Federal Income Tax Considerations”) | |
8.2 | Opinion of Nagashima Ohno & Tsunematsu re: Japanese tax consequences of the share exchange (included in Exhibit 5.1) | |
21.1 | Subsidiaries of CMTH | |
23.1 | Consent of Deloitte Touche Tohmatsu LLC | |
23.2 | Consent of KPMG AZSA LLC |
II-1
Table of Contents
Exhibit Number | Description of Exhibit | |
23.3 | Consent of Nagashima Ohno & Tsunematsu (included in Exhibit 5.1) | |
23.4 | Consent of Davis Polk & Wardwell LLP (included in Exhibit 8.1) | |
24.1 | Powers of Attorney (included in Part II of this Registration Statement) | |
99.1 | Notice of convocation of STB’s extraordinary general meeting of shareholders and attachments thereto (English translation) | |
99.2 | Form of mail-in voting card for STB’s extraordinary general meeting of shareholders (English translation) | |
99.3 | Selected Articles of the Companies Act (English translation filed herewith as Appendix H to the prospectus which is part of this Registration Statement) | |
99.4 | Consent of UBS Securities Japan Ltd | |
99.5 | Consent of Daiwa Securities Capital Markets Co. Ltd. |
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Table of Contents
II-3
Table of Contents
Chuo Mitsui Trust Holdings, Inc. | ||||
By: | /s/ Kazuo Tanabe | |||
Name: | Kazuo Tanabe | |||
Title: | President (Principal Executive Officer) | |||
Signature | Title | |
/s/ Kazuo Tanabe | President (Principal Executive Officer) | |
/s/ Kunitaro Kitamura | Deputy President | |
Senior Managing Director | ||
(Principal Accounting Officer and | ||
/s/ Nobuo Iwasaki | Principal Financial Officer) | |
/s/ Shinji Ochiai | Managing Director | |
/s/ Jun Okuno | Director | |
/s/ Ken Sumida | Director | |
II-4
Table of Contents
Authorized United States Representative: | ||||||||||
The Chuo Mitsui Trust and Banking Company, | ||||||||||
Limited, New York Representative Office | ||||||||||
By: | /s/ Akihiko Koda | |||||||||
Name: | Akihiko Koda | |||||||||
Title: | Chief Representative | |||||||||
Date: | November 8, 2010 |
II-5