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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2011.
Commission File Number 333-170434
Sumitomo Mitsui Trust Holdings, Inc.
(Translation of registrant’s name into English)
9-2, Marunouchi, 1-chome
Chiyoda-ku, Tokyo 100-6611
Japan
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F: x Form 40-F: ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No ¨
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .
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This report on Form 6-K contains the following:
1. | Sumitomo Mitsui Trust Holdings, Inc. Financial Results for the First Quarter of the Fiscal Year 2011 |
[Japanese GAAP] (Consolidated)
2. | Explanatory Material 1st Quarter of Fiscal Year 2011 ended on June 30, 2011 |
3. | IR Material for 1QFY2011 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sumitomo Mitsui Trust Holdings, Inc. | ||||
Date: August 4, 2011 | By: | /s/ Tadashi Nishimura | ||
Name: | Tadashi Nishimura | |||
Title: | Executive Officer |
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Sumitomo Mitsui Trust Holdings, Inc. Financial Results for the First Quarter of the Fiscal Year 2011 [Japanese GAAP] (Consolidated) | ||||
August 4, 2011 |
Stock exchange listings | : Tokyo, Osaka and Nagoya (code: 8309) | |
URL | : http://www.smth.jp/en/index.html | |
Representative | : Kazuo Tanabe, President | |
For inquiry | : Tadashi Nishimura, Executive Officer, | |
General Manager of Financial Planning Department | ||
TEL +81-3-3286-8354 | ||
Filing date of quarterly securities report (Scheduled) | : August 15, 2011 | |
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 2011 (April 1, 2011 through June 30, 2011)
(1) Consolidated Results of Operations (Cumulative) | (%: Change from the same period in the previous fiscal year) |
Ordinary Income | Ordinary Profit | Net Income | ||||||||||||||||||||||
Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
June 30, 2011 | 307,228 | 234.7 | 71,915 | 158.3 | 89,632 | 370.5 | ||||||||||||||||||
June 30, 2010 | 91,800 | 2.1 | 27,838 | 72.6 | 19,048 | 100.0 |
(Note) Comprehensive Income: | June 30, 2011 | 74,500 millions of yen, (—%) | ||||||
June 30, 2010 | — millions of yen, (—%) |
Net Income per Common Share | Net Income per Common Share (Fully Diluted) | |||||||
Yen | Yen | |||||||
Three Months Ended | ||||||||
June 30, 2011 | 21.58 | — | ||||||
June 30, 2010 | 11.48 | — |
(Note) | Net income per common share (fully diluted) for the first quarter of the fiscal year 2011 is not stated, as there are residual securities but not dilutive. |
Net income per common share (fully diluted) for the first quarter of the fiscal year 2010 is not stated, as there are no residual securities. |
(2) Consolidated Financial Conditions
Total Assets | Net Assets | Net Assets to Total Assets Ratio | ||||||||||
Millions of Yen | Millions of Yen | % | ||||||||||
As of | ||||||||||||
June 30, 2011 | 34,870,603 | 2,254,447 | 4.9 | |||||||||
March 31, 2011 | 14,231,070 | 844,130 | 4.6 |
(Reference) Net Assets less Minority Interests: | June 30, 2011 1,738,761 millions of yen | |||
March 31, 2011 656,476 millions of yen |
(Note) Net Assets to Total Assets Ratio = Net Assets less Minority Interests / Total Assets
2. Cash Dividends on Common Share
Annual Cash Dividends per Common Share | ||||||||||||||||||||
First Quarter-end | Second Quarter-end | Third Quarter-end | Year-end | Annual | ||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||
March 31, 2011 | — | 4.00 | — | 4.00 | 8.00 | |||||||||||||||
Fiscal Year Ending | ||||||||||||||||||||
March 31, 2012 | — | |||||||||||||||||||
Fiscal Year Ending | ||||||||||||||||||||
March 31, 2012 | 4.00 | — | 4.00 | 8.00 |
(Note) | Revision of the latest announced dividend forecast: None | |
(Note) | The figure above shows cash dividends on common share. In regard to other types of shares, please refer to “Cash Dividends on Preferred Shares” as follows. |
3. Consolidated Earnings Forecasts for the Fiscal Year 2011 (April 1, 2011 through March 31, 2012)
(%: Change from the same period in the previous fiscal year)
Ordinary Profit | Net Income | Net Income per Common Share | ||||||||||||||||||
Millions of Yen | % | Millions of Yen | % | Yen | ||||||||||||||||
Six Months Ending | ||||||||||||||||||||
September 30, 2011 | 100,000 | 99.6 | 90,000 | 180.6 | 21.11 | |||||||||||||||
Fiscal Year Ending | ||||||||||||||||||||
March 31, 2012 | 215,000 | 153.8 | 150,000 | 217.3 | 35.00 |
(Note) Revision of the latest announced consolidated earnings forecast: None
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4. Other Information
(1) | Changes in Important Subsidiaries during the First Quarter of the Fiscal Year 2011: Yes |
(Changes in specified subsidiaries resulted in changes in the scope of consolidation)
Included: | 6 | (The Sumitomo Trust & Banking Co., Ltd, STB Preferred Capital 2 (Cayman) Limited, | ||||
STB Preferred Capital 3 (Cayman) Limited, STB Preferred Capital 4 (Cayman) Limited, | ||||||
STB Preferred Capital 5 (Cayman) Limited, Japan Trustee Services Bank, Ltd.) | ||||||
Excluded: | — | (—) |
(For details, please refer to page 2, “1. Other Information” of “Accompanying Materials.”) |
(2) | Specified Accounting Treatments to Preparation of Quarterly Consolidated Financial Statements: Yes |
(For details, please refer to page 2, “1. Other Information” of “Accompanying Materials.”) |
(3) | Changes in Accounting Policies, Changes in Accounting Estimates and Restatements |
1) Changes in accounting policies due to revision of accounting standards | : | None | ||
2) Changes in accounting policies due to reasons other than 1) | : | None | ||
3) Changes in accounting estimates | : | None | ||
4) Restatements | : | None |
(4) | Number of Issued Shares (Common share) |
1) Number of issued shares (including treasury stock) |
June 30, 2011 : | 4,153,486,408 | shares, | March 31, 2011 : | 1,658,426,267 | shares |
2) Number of treasury stock |
June 30, 2011 : | 715,488 | shares, | March 31, 2011 : | 411,673 | shares |
3) Average number of issued shares (for the first quarter of the fiscal year) |
June 30, 2011 : | 4,152,919,713 | shares, | June 30, 2010 : | 1,658,057,966 | shares |
Presentation on the implementation status of the quarterly review procedures
These quarterly financial results stand out of range of quarterly review procedures based on “Financial Instruments and Exchange Act.” At the time of this disclosure, the review procedures of the quarterly consolidated financial statements based on “Financial Instruments and Exchange Act” have not completed yet.
Explanation for proper use of forecasts and other note
Forecasts in this material are based on information, which is available at this moment, and assumptions of uncertain factors. Actual results may differ materially from those forecasts depending on various future events and conditions.
Sumitomo Mitsui Trust Holdings, Inc. (SMTH), which is former Chuo Mitsui Trust Holdings, Inc (CMTH), performed share exchange with SMTH as the parent company, and The Sumitomo Trust and Banking Co., Ltd. (STB) as the wholly owned subsidiary on April 1, 2011. Based on the Accounting Standard for Business Combinations, this share exchange is a reverse acquisition where SMTH is considered to be the acquired company and STB to be the acquiring company. Therefore, the consolidated assets and liabilities of SMTH are succeeded to the consolidated balance sheets of STB at fair value. Due to this share exchange, each figure for the first quarter of the fiscal year 2011 fluctuated wildly compared with that for the first quarter of the fiscal year 2010 or the fiscal year ended March 31, 2011.
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(Cash Dividends on Preferred Shares)
Cash dividends per share on preferred shares are as below.
The First Series of Class 7 Preferred Shares | Annual Cash Dividends per Preferred Share | |||||||||||||||||||
First Quarter-end | Second Quarter-end | Third Quarter-end | Year-end | Annual | ||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||
March 31, 2011 | ||||||||||||||||||||
Fiscal Year Ending | ||||||||||||||||||||
March 31, 2012 | — | |||||||||||||||||||
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Fiscal Year Ending | ||||||||||||||||||||
March 31, 2012 | 21.15 | — | 21.15 | 42.30 |
(Note) | Revision of the latest announced dividend forecast: None | |
(Note) | The First Series of Class 7 Preferred Shares were issued on April 1, 2011, in exchange for the First Series of Class 2 Preferred Shares of STB due to the share exchange. |
(Reference) | Cash Dividends on Common Share and the First Series of Class 2 Preferred Shares of The Sumitomo Trust & Banking Co., Ltd. |
The Sumitomo Trust & Banking Co., Ltd. | Annual Cash Dividends per Common Share | |||||||||||||||||||
First Quarter-end | Second Quarter-end | Third Quarter-end | Year-end | Annual | ||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||
March 31, 2011 | — | 6.00 | — | 8.00 | 14.00 |
(Note) | While all the common shares of STB were acquired by SMTH in share exchange for common share of SMTH on April 1, 2011, year-end dividends for the fiscal year 2010 (from April 1, 2010, to March 31, 2011) were paid to shareholders or registered share pledges appearing in the last record of the Register of Shareholders in writing or in electronic form as of March 31, 2011 by STB. |
The Sumitomo Trust & Banking Co., Ltd. The First Series of Class 2 Preferred Shares | Annual Cash Dividends per Preferred Share | |||||||||||||||||||
First Quarter-end | Second Quarter-end | Third Quarter-end | Year-end | Annual | ||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||
March 31, 2011 | — | 21.15 | — | 21.15 | 42.30 |
(Note) | While all the First Series of Class 2 Preferred Shares of STB were acquired by SMTH in share exchange for the First Series of Class 7 Preferred Shares of SMTH on April 1, 2011, year-end dividends for the fiscal year 2010 (from April 1, 2010, to March 31, 2011) were paid to shareholders or share pledges appearing in the last record of the Register of Shareholders in writing or in electronic form as of March 31, 2011 by STB. |
This financial information is translations of the brief financial statements (Kessan Tanshin). For further information, please contact the Investor Relations Office, Financial Planning Department at +81-3-3286-8354 by phone, +81-3-3286-4654 by facsimile, or e-mail : ir@smth.jp.
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[Accompanying Materials]
1
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(1) Changes in Important Subsidiaries during the First Quarter of the Fiscal Year 2011
(Changes in specified subsidiaries resulted in changes in the scope of consolidation)
Details of changes in specified subsidiaries resulted in changes in the scope of consolidation during the first quarter of the fiscal year 2011 (newly:6 companies) are as below.
Name | Address | Capital Stock (Millions of Yen) | Primary Contents | Holding Rate of Voting Rights | ||||||||
(consolidated subsidiary) The Sumitomo Trust & Banking Co., Ltd. | Chuo-ku, Osaka | 342,037 | Trust Banking Business | 100.00 | % | |||||||
STB Preferred Capital 2 (Cayman) Limited | George Town Grand Cayman British West Indies | 51,500 | Financial-related Business | 100.00 | % | |||||||
STB Preferred Capital 3 (Cayman) Limited | George Town Grand Cayman British West Indies | 51,500 | Financial-related Business | 100.00 | % | |||||||
STB Preferred Capital 4 (Cayman) Limited | George Town Grand Cayman British West Indies | 111,600 | Financial-related Business | 100.00 | % | |||||||
STB Preferred Capital 5 (Cayman) Limited | George Town Grand Cayman British West Indies | 70,900 | Financial-related Business | 100.00 | % | |||||||
Japan Trustee Services Bank, Ltd. | Chuo-ku, Tokyo | 51,000 | Trust Banking Business | 66.66 | % |
(2) Specified Accounting Treatments to Preparation of Quarterly Consolidated Financial Statements
Income Tax Expenses
As for a part of subsidiaries, income tax expenses are calculated by multiplying the income before income taxes by the estimated effective income tax rate, which are reasonably estimated for the whole consolidated fiscal year.
(3) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements
Sumitomo Mitsui Trust Holdings, Inc. (hereinafter “SMTH”), which is former Chuo Mitsui Trust Holdings, Inc (hereinafter “CMTH”), conducted share exchange on April 1, 2011, under which SMTH became the parent company, and The Sumitomo Trust and Banking Co., Ltd. (hereinafter “STB”) became the wholly owned subsidiary. Based on the Accounting Standard for Business Combinations, this share exchange is a reverse acquisition where SMTH is considered to be the acquired company and STB to be the acquiring company. Therefore, the consolidated assets and liabilities of SMTH are succeeded to the consolidated balance sheets of STB at fair value.
SMTH has adopted ASBJ Statement No.24 “Accounting Standard for Accounting Changes and Error Corrections” (issued by ASBJ on December 4, 2009) and Implementation Guidance No. 24 “Guidance on Accounting Standard for Accounting Changes and Error Corrections” (issued by ASBJ on December 4, 2009) to the accounting changes and correct of past error from the beginning of this first quarter of the fiscal year 2011. However, as there is no continuity between the consolidated financial statements of SMTH for the fiscal year ended March 31, 2011 and those for the first quarter of the fiscal year 2011, any changes are not disclosed in “Changes in Accounting Policies, Changes in Accounting Estimates, Restatements.”
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2. Consolidated Financial Statements
(1) Consolidated Balance Sheets
(Millions of Yen) | ||||||||
As of March 31, 2011 | As of June 30, 2011 | |||||||
Assets: | ||||||||
Cash and Due from Banks | 502,160 | 1,372,208 | ||||||
Call Loans and Bills Bought | 6,936 | 348,232 | ||||||
Receivables under Resale Agreements | — | 54,320 | ||||||
Receivables under Securities Borrowing Transactions | 9,378 | 1,022 | ||||||
Monetary Claims Bought | 99,921 | 492,112 | ||||||
Trading Assets | 36,568 | 612,883 | ||||||
Money Held in Trust | 2,065 | 24,192 | ||||||
Securities | 3,710,513 | 8,723,829 | ||||||
Loans and Bills Discounted | 8,864,266 | 19,833,688 | ||||||
Foreign Exchanges | 12,259 | 7,522 | ||||||
Lease Receivables and Investment Assets | — | 576,151 | ||||||
Other Assets | 393,956 | 1,522,786 | ||||||
Tangible Fixed Assets | 123,584 | 235,666 | ||||||
Intangible Fixed Assets | 56,994 | 210,619 | ||||||
Deferred Tax Assets | 143,055 | 288,546 | ||||||
Customers’ Liabilities for Acceptances and Guarantees | 317,098 | 715,483 | ||||||
Allowance for Loan Losses | (47,690 | ) | (148,664 | ) | ||||
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Total Assets | 14,231,070 | 34,870,603 | ||||||
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Liabilities: | ||||||||
Deposits | 9,292,002 | 21,867,933 | ||||||
Negotiable Certificates of Deposit | 327,020 | 2,197,023 | ||||||
Call Money and Bills Sold | 351,956 | 373,247 | ||||||
Payables under Repurchase Agreements | — | 370,870 | ||||||
Payables under Securities Lending Transactions | 1,161,653 | 1,031,796 | ||||||
Trading Liabilities | 7,716 | 131,981 | ||||||
Borrowed Money | 678,983 | 1,461,595 | ||||||
Foreign Exchanges | — | 62 | ||||||
Short-term Bonds Payable | — | 395,981 | ||||||
Bonds Payable | 267,247 | 923,372 | ||||||
Borrowed Money from Trust Account | 801,657 | 2,082,888 | ||||||
Other Liabilities | 156,055 | 1,003,768 | ||||||
Provision for Bonuses | 3,133 | 4,078 | ||||||
Provision for Directors’ Bonuses | — | 60 | ||||||
Provision for Retirement Benefits | 2,859 | 14,797 | ||||||
Provision for Directors’ Retirement Benefits | 253 | 236 | ||||||
Provision for Reimbursement of Deposits | 6,410 | |||||||
Provision for Contingent Loss | 15,335 | 18,224 | ||||||
Provision for Relocation Expenses | 5,620 | |||||||
Deferred Tax Liabilities | 3,967 | 5,012 | ||||||
Deferred Tax Liabilities for Land Revaluation | — | 5,709 | ||||||
Acceptances and Guarantees | 317,098 | 715,483 | ||||||
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Total Liabilities | 13,386,939 | 32,616,156 | ||||||
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(Continued) | ||||||||
(Millions of Yen) | ||||||||
As of March 31, 2011 | As of June 30, 2011 | |||||||
Net Assets: | ||||||||
Total Shareholders’ Equity: | 667,328 | 1,760,829 | ||||||
Capital Stock | 261,608 | 261,608 | ||||||
Capital Surplus | — | 859,494 | ||||||
Retained Earnings | 406,002 | 639,828 | ||||||
Treasury Stock | (282 | ) | (101 | ) | ||||
Total Accumulated Other Comprehensive Income: | (10,851 | ) | (22,068 | ) | ||||
Valuation Difference on Available-for-Sale Securities | 4,408 | (9,404 | ) | |||||
Deferred Gains or Losses on Hedges | 3,406 | 4,492 | ||||||
Revaluation Reserve for Land | (16,537 | ) | (4,703 | ) | ||||
Foreign Currency Translation Adjustment | (2,129 | ) | (12,452 | ) | ||||
Minority Interests | 187,653 | 515,685 | ||||||
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Total Net Assets | 844,130 | 2,254,447 | ||||||
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Total Liabilities and Net Assets | 14,231,070 | 34,870,603 | ||||||
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(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Three Months Ended on June 30
(Millions of Yen) | ||||||||
Three Months Ended June 30, 2010 | Three Months Ended June 30, 2011 | |||||||
Ordinary Income: | ||||||||
Trust Fees | 10,135 | 24,991 | ||||||
Interest Income: | 40,816 | 94,600 | ||||||
Interest on Loans and Discounts | 27,612 | 62,866 | ||||||
Interest and Dividends on Securities | 11,828 | 27,126 | ||||||
Fees and Commissions | 21,450 | 62,551 | ||||||
Trading Income | 340 | 1,014 | ||||||
Other Ordinary Income | 15,301 | 112,040 | ||||||
Other Income | 3,755 | 12,029 | ||||||
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Ordinary Income | 91,800 | 307,228 | ||||||
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Ordinary Expenses: | ||||||||
Interest Expenses: | 15,606 | 31,792 | ||||||
Interest on Deposits | 10,639 | 19,213 | ||||||
Fees and Commissions Payments | 5,345 | 14,620 | ||||||
Trading Expenses | 212 | — | ||||||
Other Ordinary Expenses | 2,380 | 85,023 | ||||||
General and Administrative Expenses | 34,681 | 96,239 | ||||||
Other Expenses | 5,736 | 7,637 | ||||||
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Ordinary Expenses | 63,962 | 235,313 | ||||||
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Ordinary Profit | 27,838 | 71,915 | ||||||
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Extraordinary Income: | 1,515 | 44,355 | ||||||
Gain on Disposal of Noncurrent Assets | — | 6 | ||||||
Gain on Negative Goodwill | — | 44,349 | ||||||
Reversal of Allowance for Loan Losses | 928 | |||||||
Recoveries of Written-off Claims | 561 | |||||||
Other | 24 | — | ||||||
Extraordinary Loss: | 1,169 | 1,270 | ||||||
Loss on Disposal of Noncurrent Assets | 35 | 175 | ||||||
Impairment Loss | — | 28 | ||||||
Management Integration Expenses | 909 | |||||||
Other | 225 | 1,066 | ||||||
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Income before Income Taxes and Minority Interests | 28,183 | 115,000 | ||||||
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Income Taxes: | 7,198 | 19,488 | ||||||
Current | 1,649 | 4,530 | ||||||
Deferred | 5,548 | 14,957 | ||||||
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Income before Minority Interests | 20,985 | 95,512 | ||||||
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Minority Interests in Income | 1,936 | 5,879 | ||||||
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Net Income | 19,048 | 89,632 | ||||||
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Three Months Ended on June 30 | ||||
(Millions of Yen) | ||||
Three Months Ended June 30, 2011 | ||||
Income before Minority Interests | 95,512 | |||
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Other Comprehensive Income: | (21,011 | ) | ||
Valuation Difference on Available-for-Sale Securities | (16,512 | ) | ||
Deferred Gains or Losses on Hedges | (3,931 | ) | ||
Foreign Currency Translation Adjustment | 352 | |||
Attributable to Equity Method Affiliates | (920 | ) | ||
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Comprehensive Income: | 74,500 | |||
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Comprehensive Income Attributable to Owners of the Parent | 68,853 | |||
Comprehensive Income Attributable to Minority Interests | 5,647 |
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(3) Note on Assumption of Going Concern
There is no applicable information.
(4) Note on Significant Change of Shareholders’ Equity
SMTH conducted share exchange on April 1, 2011, under which SMTH became the parent company, and STB became the wholly owned subsidiary. Based on the Accounting Standard for Business Combinations, as this share exchange is a reverse acquisition, the balance at the beginning of the current period for the consolidated total shareholders’ equity is that of STB. Therefore, there is no continuity between the balance of the consolidated total shareholders’ equity of SMTH at the end of the fiscal year 2010 and that at the beginning of the first quarter of the fiscal year 2011.
Details of the Changes of Shareholders’ Equity during the Period are as below.
(Millions of Yen) | ||||||||||||||||||||
Capital Stock | Capital Surplus | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||
Balance at the Beginning of the Current Period (Note 1) | 342,037 | 297,051 | 565,908 | (482 | ) | 1,204,514 | ||||||||||||||
Changes of Items during the first quarter of the fiscal year 2011: | ||||||||||||||||||||
Increase and Decrease by the Share Exchange (Note 2) | (80,428 | ) | 569,542 | 489,114 | ||||||||||||||||
Cash Dividends (Note 3) | (6,632 | ) | (15,701 | ) | (22,333 | ) | ||||||||||||||
Net Income | 89,632 | 89,632 | ||||||||||||||||||
Purchase of Treasury Stock | (113 | ) | (113 | ) | ||||||||||||||||
Disposal of Treasury Stock | 14 | 11 | 26 | |||||||||||||||||
Cancellation of Treasury Stock | (482 | ) | 482 | — | ||||||||||||||||
Reversal of Revaluation Reserve for Land | (10 | ) | (10 | ) | ||||||||||||||||
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Total of changes of Items during the first quarter of the fiscal year 2011: | (80,428 | ) | 562,443 | 73,920 | 380 | 556,315 | ||||||||||||||
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Balance at the End of the Current Period | 261,608 | 859,494 | 639,828 | (101 | ) | 1,760,829 | ||||||||||||||
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(Note1) | “Balance at the Beginning of the Current Period” is the balance of STB (Consolidated) at the beginning of the current fiscal year. |
(Note2) | “Increase and Decrease by the Share Exchange” is an increase and decrease (the acquisition cost of the acquired company and others) by applying the Purchase Method with STB as the acquiring company and SMTH as the acquired company. |
(Note3) | With share exchange with STB on April 1, 2011, SMTH (former CMTH) has succeeded retained earnings as capital of CMTH surplus. Therefore, 6,632 million yen of cash dividends for SMTH (former CMTH), whose record date is March 31, 2011 and whose effective date of distribution is on and after June 30, 2011 is recorded as “Cash Dividends” of “Capital Surplus.” |
“Cash Dividends” of “Retained Earnings,” whose record date is March 31, 2011 and whose effective date of distribution is on and after June 30,2011, is 15,701 million yen of cash dividends of STB.
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(5) Note on Business Combination
On August 24, 2010, CMTH concluded a share exchange agreement and a management integration agreement with STB. Subsequent to the approval at the extraordinary general meeting of shareholders held on December 22, 2010, the share exchange was performed on April 1, 2011 as the effective date. CMTH changed its trade name to Sumitomo Mitsui Trust Holdings, Inc. (“SMTH”).
1. | Outline of Business Combination |
(1) | Name and Business Content of Acquired Company |
Name of acquired company | Chuo Mitsui Trust Holdings, Inc. | |
Business content | Bank holding company |
(2) | Main Reasons for Business Combination |
CMTH and STB aim to create “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 the diversity of the STB group and the agility of the CMTH group. |
(3) | Date of Business Combination |
April 1, 2011 |
(4) | Legal Form of Business Combination |
Share exchange, under which CMTH became the parent company, and STB became the wholly owned subsidiary. |
(5) | Name of Company after Business Combination |
Sumitomo Mitsui Trust Holdings, Inc. |
(6) | Acquired Voting Rights Ratio |
100% |
(7) | Main Grounds for the Determination of the Acquiring Company |
SMTH has adopted ASBJ Statement No.21 “Accounting Standard for Business Combinations” (issued by ASBJ on December 26, 2008) and Implementation Guidance No.10 “Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (issued by ASBJ on December 26, 2008). According to them, shareholders of STB, which is a wholly owned subsidiary company in the share exchange, hold the majority of voting rights of the company following the business combination. Therefore, it was decided that under the Accounting Standard for the Business Combinations, STB would be the acquiring company, with CMTH as the acquired company. |
8
Table of Contents
2. | Period of Earnings of the Acquired Company included in the Quarterly Consolidated Statements of Income Described at Acquisition Cost of the Acquired Company |
April 1, 2011 through June 30, 2011 |
3. | Acquisition Cost of the Acquired Company |
489,114 million yen |
4. | Share Exchange Ratio by Type of Share, Calculation Method, and Number of Shares Delivered |
(1) | Share Exchange Ratio by Type of Share |
(a) | Common Shares |
For each common share of STB, 1.49 shares of common share of SMTH have been allotted and delivered. |
(b) | Preferred Shares |
For each First Series of Class 2 Preferred Shares of STB, one share of the First Series of Class 7 Preferred Shares of SMTH has been allotted and delivered. |
(2) | Calculation Method of the Share Exchange Ratio |
(a) | Common Shares |
In order to support the respective efforts of CMTH and STB to ensure the fairness of the exchange ratio of common shares (hereinafter, “Common Share Exchange Ratio”) for this share exchange, CMTH had requested JP Morgan Securities Japan Co., Ltd. and Nomura Securities Co., Ltd. to perform financial analyses, while STB had requested UBS Securities Japan Ltd. and Daiwa Securities Capital Markets Co., Ltd., to perform similar analyses. Referring to the results of those financial analyses, CMTH and STB, on several occasions, conducted careful negotiations and discussions on the Common Share Exchange Ratio, comprehensively taking into consideration factors such as the financial position, assets, and future prospects of each party. As a result, CMTH and STB have reached the conclusion that the above Common Share Exchange Ratio is appropriate. |
(b) | Preferred Shares |
CMTH and STB had agreed that the terms and conditions of the First Series of SMTH Class 7 Preferred Shares shall be substantially the same as those of the First Series of Class 2 Preferred Shares, and reached the conclusion that the above share exchange ratio for preferred shares is appropriate, after comprehensively taking into consideration the “bond-type” nature of those shares and the fact that there is no market price for the First Series of Class 2 Preferred Shares. |
(3) | Number of Shares Delivered |
(a) | Common Shares |
2,495,060,141 shares |
(b) | Preferred Shares |
109,000,000 shares |
5. | Amount of Gain on Amortization of Negative Goodwill and Reason for Recognizing Negative Goodwill |
(1) | Amount of Gain on Amortization of Negative Goodwill |
43,431 million yen |
(2) | Reason for Recognizing Negative Goodwill |
Negative goodwill was recognized as the shareholders’ equity (deducting minority interest from net of assets and liabilities acquired) exceeded the acquisition cost of acquired company. |
6. | Amount of Assets Acquired and Liabilities Acquired on Date of Business Combination |
(1) Assets | ||||||
Total Assets | 14,158,131 million yen | |||||
Loans and Bills Discounted | 8,855,145 million yen | |||||
(2) Liabilities | ||||||
Total Liabilities | 13,437,699 million yen | |||||
Deposits | 9,326,751 million yen |
9
Table of Contents
Cautionary Statement Regarding Forward-Looking Statements
This material contains forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995) regarding our intent, belief or current expectations in respect to our future financial conditions, operating results and overall management. These forward-looking statements may be identified by words such as “believes”, “expects”, “anticipates”, “projects”, “intends”, “should”, “seeks”, “estimates”, “future”, or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. Such forward-looking statements are not guarantees of future performance and actual results may differ, owing to risks and uncertainties, including without limitation: (1) potential difficulties in integrating the management and business operations of our subsidiaries; (2) our ability to successfully execute our group business strategies; and (3) unanticipated events that result in an increase in our credit costs and a deterioration in the quality of our group companies’ loan portfolios. Given such risks and uncertainties, you should not place undue reliance on forward-looking statements, which speak only as of the release date of this material. We undertake no obligation to update or revise any forward-looking statements. In addition to this material, please refer to our most recently disclosed documents, such as our Form F-4 registration statement filed with the U.S. Securities and Exchange Commission, or press releases we have issued, for a more detailed description of matters that may affect our financial condition and operating results.
10
Table of Contents
1st Quarter of Fiscal Year 2011
ended on June 30, 2011
Table of Contents
Sumitomo Mitsui Trust Holdings, Inc.
Summary of 1QFY2011 financial results | ||
Summary 1-2 | ||
Summary 3 | ||
3. Accounting for business combination related to the Management Integration | Summary 4 | |
Financial figures | ||
1-2 | ||
3 | ||
3-5 | ||
4. Deferred unrealized gains/ losses on Hedge accounting applied derivative transactions | 6 | |
5. BIS capital adequacy ratio (No.1 standard: International standard for bank holding company) | 6 | |
6. Assets and liabilities (Banking a/c and Principal guaranteed trust a/c combined) | 6 | |
(2) Overseas loans by borrowers’ location (Banking a/c and Principal guaranteed trust a/c combined) | ||
7 | ||
(1) Problem assets based on the Financial Reconstruction Act (After partial direct written-off) | ||
(2) Coverage ratio and allowance ratio of Problem assets based on the Financial Reconstruction Act | ||
<For reference> Other referential financial figures | 8-10 | |
<Definition of terms in this document> | ||||
SMTH : Sumitomo Mitsui Trust Holdings, Inc. | CMTH : | Former Chuo Mitsui Trust Holdings, Inc. | ||
CMTB : The Chuo Mitsui Trust and Banking Company, Limited | CMAB : | Chuo Mitsui Asset Trust and Banking Company, Limited | ||
STB : The Sumitomo Trust and Banking, Co., Ltd. |
Legal Disclaimer
Regarding forward-looking Statements contained in this material
This presentation material contains information that constitutes forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors including but not limited to changes in managerial circumstances. By virtue of the aforementioned reasons, Sumitomo Mitsui Trust Holdings, Inc. hereby cautions against sole reliance on such forward-looking statements in making investment decisions.
Table of Contents
Summary of 1QFY2011 financial results
<Consolidated>
(1) | Consolidated net business profit before credit costs <1> decreased by 7.4 billion yen from 1QFY2010 to 70.6 billion yen, mainly due to the decrease in net business profit before credit costs on a non-consolidated basis of three trust bank subsidiaries total (hereinafter “three-company total”). |
(2) | Total credit costs <5> improved by 3.1 billion yen from 1QFY2010 to the reversal of 6.4 billion yen, mainly due to the posting of reversal of allowance for loan losses in relevant subsidiaries, in addition to the improvement in total credit costs on a non-consolidated basis (three-company total). |
(3) | Net income <3> increased by 46.2 billion yen from 1QFY2010 to 89.6 billion yen. Meanwhile, net income excluding amortization of negative goodwill <4> caused by share exchange increased by 2.8 billion yen to 46.2 billion yen over the same period, representing approximately 42% of the full FY2011 forecast. |
(4) | As to the effect of purchase accounting method related to the management integration, please refer to “3. Accounting for business combination related to the Management Integration” (Summary 4). |
[Consolidated (SMTH)]
(in billions of Yen) | ||||||||||||||||||||||||
1QFY2011 | 1QFY2010 (*1) | Change | Forecast for FY2011 | |||||||||||||||||||||
1HFY2011 | ||||||||||||||||||||||||
Net business profit before credit costs (*2) | 1 | 70.6 | 78.0 | (7.4 | ) | 135.0 | 295.0 | |||||||||||||||||
Ordinary profit | 2 | 71.9 | 67.8 | 4.1 | 100.0 | 215.0 | ||||||||||||||||||
Net income | 3 | 89.6 | 43.3 | 46.2 | 90.0 | 150.0 | ||||||||||||||||||
(excl. amortization of negative goodwill) | 4 | 46.2 | 43.3 | 2.8 | 50.0 | 110.0 | ||||||||||||||||||
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Total credit costs | 5 | 6.4 | 3.2 | 3.1 | (20.0 | ) | (40.0 | ) | ||||||||||||||||
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Net business profit before credit costs (*3) | 6 | 14.3 | 12.6 | 1.7 | ||||||||||||||||||||
Total credit costs (*3) | 7 | 1.2 | (1.4 | ) | 2.6 | |||||||||||||||||||
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(*1) | Figures for 1QFY2010 are combined figures of CMTH (consolidated) and STB (consolidated). |
(*2) | Consolidated net business profit before credit costs = Non-consolidated net business profit before credit costs + Subsidiary companies’ ordinary profits (non-recurring effect adjusted) + Affiliates’ ordinary profits (non-recurring effect adjusted) x Ratio of equity holdings - Intra-group transaction (dividends, etc.) |
(*3) | Differences between “Consolidated (SMTH)” and “Non-consolidated (CMTB + CMAB + STB)”. |
<Non-consolidated>
(1) | Net business profit before credit costs <7> decreased by 9.1 billion yen from 1QFY2010 to 56.2 billion yen, mainly due to the decrease in net other operating profit <5> resulting from the decline in net gains on bonds, while net interest income and related profit <2> increased. |
(2) | Total credit costs <11> improved by 0.4 billion yen from 1QFY2010 to the reversal of 5.2 billion yen, against a backdrop of the reversal of allowance for loan losses resulting from the decline in the balance of loans to other special mention debtors, etc. |
(3) | As a result, net income <10> decreased by 10.0 billion yen from 1QFY2010 to 34.8 billion yen, representing approximately 35% of the full FY2011 forecast. |
[Non-consolidated (CMTB + CMAB + STB)]
(in billions of Yen) | ||||||||||||||||||||||||
1QFY2011 | 1QFY2010 | Change | Forecast for FY2011 | |||||||||||||||||||||
1HFY2011 | ||||||||||||||||||||||||
Gross business profit | 1 | 117.1 | 125.0 | (7.8 | ) | |||||||||||||||||||
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Net interest income and related profit | 2 | 64.7 | 60.6 | 4.0 | ||||||||||||||||||||
Net fees and commissions and related profit | 3 | 37.3 | 38.6 | (1.2 | ) | |||||||||||||||||||
Net trading profit | 4 | 1.0 | 0.2 | 0.8 | ||||||||||||||||||||
Net other operating profit | 5 | 14.0 | 25.5 | (11.5 | ) | |||||||||||||||||||
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General and administrative expenses | 6 | (60.8 | ) | (59.6 | ) | (1.2 | ) | |||||||||||||||||
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Net business profit before credit costs | 7 | 56.2 | 65.3 | (9.1 | ) | 110.0 | 235.0 | |||||||||||||||||
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Ordinary profit | 8 | 44.1 | 56.2 | (12.1 | ) | 80.0 | 175.0 | |||||||||||||||||
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Extraordinary profit/ loss | 9 | (1.1 | ) | 5.8 | (7.0 | ) | ||||||||||||||||||
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Net income | 10 | 34.8 | 44.9 | (10.0 | ) | 45.0 | 100.0 | |||||||||||||||||
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Total credit costs | 11 | 5.2 | 4.7 | 0.4 | (15.0 | ) | (30.0 | ) | ||||||||||||||||
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-Summary1-
Table of Contents
(For reference) Overview of the business operation
<Balance of major accounts>
(1) Ending balance of major accounts (Domestic Banking a/c and Principal guaranteed trust a/c combined)
[Non-consolidated (CMTB + STB)] | (in billions of Yen) | |||||||||||
Jun. 2011 | Mar. 2011 | Change from Mar. 2011 | ||||||||||
Loans | 19,480.3 | 20,409.5 | (929.2 | ) | ||||||||
Deposits, Trust principal (*) | 22,687.6 | 22,805.5 | (117.8 | ) | ||||||||
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(*) | Deposits: Excluding NCDs. |
(2) Status of loans (Banking a/c and Principal guaranteed trust a/c combined)
[Non-consolidated (CMTB + STB)] | (in billions of Yen) | |||||||||||
Jun. 2011 | Mar. 2011 | Change from Mar. 2011 | ||||||||||
Loans to individuals | 5,995.4 | 5,946.1 | 49.3 | |||||||||
Residential mortgage loans | 5,450.4 | 5,381.4 | 68.9 | |||||||||
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Loans to corporations | 14,487.9 | 15,471.1 | (983.1 | ) | ||||||||
Japanese corporations operating overseas | 1,428.5 | 1,411.4 | 17.0 | |||||||||
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(3) Yields and margins (Domestic Banking a/c)
[Non-consolidated (CMTB + STB)] | (%) | |||||||||||||||
1QFY2011 (A) | 2HFY2010 (B) | 1HFY2010 | Change (A) - (B) | |||||||||||||
Loan deposit margin | 0.82 | 0.85 | 0.88 | (0.03 | ) | |||||||||||
Loans and bills discounted | 1.22 | 1.28 | 1.34 | (0.06 | ) | |||||||||||
Deposits and trust principal | 0.40 | 0.43 | 0.46 | (0.03 | ) | |||||||||||
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<Investment trust and Insurance>
(1) Sales volume of investment trust/ Insurance
[Non-consolidated (CMTB + STB)] | (in billions of Yen) | |||||||||||
1QFY2011 | 1QFY2010 | Change from 1QFY2010 | ||||||||||
Total sales volume | 361.9 | 265.8 | 96.1 | |||||||||
Investment trust | 277.4 | 179.1 | 98.3 | |||||||||
Fund wrap, SMA | 15.4 | 9.7 | 5.7 | |||||||||
Insurance | 68.9 | 76.9 | (7.9 | ) | ||||||||
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(2) Fees and commissions
[Non-consolidated (CMTB + STB)] | (in billions of Yen) | |||||||||||
1QFY2011 | 1QFY2010 | Change from 1QFY2010 | ||||||||||
Total fees and commissions | 11.5 | 10.1 | 1.4 | |||||||||
Sales fees of investment trust/ insurance | 7.6 | 6.0 | 1.5 | |||||||||
Others (management and administration) | 3.9 | 4.0 | (0.1 | ) | ||||||||
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<Fees from fiduciary services business>
[Non-consolidated (CMTB + CMAB + STB)] | (in billions of Yen) | |||||||||||
1QFY2011 | 1QFY2010 | Change from 1QFY2010 | ||||||||||
Fees from fiduciary services business | 15.4 | 15.1 | 0.3 | |||||||||
Gross business profit from fiduciary services business | 21.6 | 21.1 | 0.4 | |||||||||
Fees paid for outsourcing | (6.1 | ) | (5.9 | ) | (0.1 | ) | ||||||
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Note: | Pension, investment trust, etc. |
<Fees from real estate business>
[Non-consolidated (CMTB + STB)] | (in billions of Yen) | |||||||||||
1QFY2011 | 1QFY2010 | Change from 1QFY2010 | ||||||||||
Fees from real estate business | 3.0 | 5.1 | (2.0 | ) | ||||||||
Real estate brokerage fees | 1.3 | 3.1 | (1.7 | ) | ||||||||
Real estate trust fees, etc. | 1.6 | 1.9 | (0.3 | ) | ||||||||
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-Summary 2-
Table of Contents
<Status of the securities with fair value>
(1) | Cost of available-for-sale securities <1> increased by 511.3 billion yen from the end of previous fiscal year to 7,867.3 billion yen, mainly due to applying accounting for the business combinations to the management integration, also because Japan Trustee Services Bank, Ltd. became a consolidated subsidiary. And unrealized gains/ losses of those securities stood at the net gains of 41.5 billion yen. Cost of Japanese stocks <2> increased by 28.6 billion yen over the same period, mainly due to applying accounting for the business combinations to the management integration (an increase by approximately 31.0 billion yen). Cost of Japanese bonds <3> increased by 877.0 billion yen over the same period, mainly due to the consolidation of Japan Trustee Services Bank, Ltd. (an increase by approximately 560.0 billion yen). Cost of others <5> decreased by 394.3 billion yen over the same period, mainly due to decline in the balance of foreign bonds. |
(2) | Cost of held-to-maturity debt securities decreased by 42.5 billion yen from the end of previous fiscal year to 682.3 billion yen, and unrealized gains/ losses stood at the net gains of 49.1 billion yen. |
[Consolidated (SMTH)]
(in billions of Yen) | ||||||||||||||||||||||||||||
June 2011 (*2) | ||||||||||||||||||||||||||||
Cost | Fair value | Net | Change of cost (*1) | Change of fair value (*1) | Change of net (*1) | |||||||||||||||||||||||
Available-for-sale securities | 1 | 7,867.3 | 7,908.8 | 41.5 | 511.3 | 484.6 | (26.6 | ) | ||||||||||||||||||||
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Japanese stocks | 2 | 902.6 | 893.3 | (9.2 | ) | 28.6 | (63.8 | ) | (92.5 | ) | ||||||||||||||||||
Japanese bonds | 3 | 4,927.6 | 4,963.4 | 35.7 | 877.0 | 904.8 | 27.8 | |||||||||||||||||||||
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Government bonds | 4 | 4,090.6 | 4,123.5 | 32.9 | 851.9 | 878.8 | 26.8 | |||||||||||||||||||||
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Others | 5 | 2,037.0 | 2,052.1 | 15.0 | (394.3 | ) | (356.3 | ) | 37.9 | |||||||||||||||||||
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Held-to-maturity debt securities | 6 | 682.3 | 731.4 | 49.1 | (42.5 | ) | (43.5 | ) | (0.9 | ) | ||||||||||||||||||
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(*1) Differences between SMTH’s consolidated figures as of June 2011 and combined figures of CMTH (consolidated) and STB (consolidated) as of March 2011.
(*2) Figures as of June 2011 are those to which “Accounting Standard for Business Combinations” (ASBJ Statement No.21) was applied.
As to the effect of purchase accounting method, please refer to “3 Accounting for business combination related to the Management Integration” (Summary 4).
<Problem assets based on the Financial Reconstruction Act>
(1) | The total balance of “Problem assets based on the Financial Reconstruction Act” <1> as of the end of June 2011 increased by 4.6 billion yen from the end of previous fiscal year to 249.8 billion yen. The ratio of “Problem assets based on the Financial reconstruction Act” to the total loan balance increased by 0.1% to 1.2% over the same period. |
(2) | Coverage ratios as of the end of June 2011 for “Doubtful loans” and “Substandard loans”, which are secured by collateral values and allowance for loan losses, stand at 90.7% and 73.3%, respectively, and coverage ratio for “Problem assets based on the Financial Reconstruction Act” stands at 85.6%, all of which represent sufficient level. |
(3) | Loans to “Other special mention” debtors decreased by 135.5 billion yen from the end of previous fiscal year to 575.7 billion yen, mainly due to the upgrades and repayments of some clients. |
[Non-consolidated (CMTB + STB)]
(in billions of Yen) | ||||||||||||||||||||||||
Jun. 2011 | Mar. 2011 | Change from Mar. 2011 | Jun. 2011 | |||||||||||||||||||||
Coverage ratio | Allowance ratio | |||||||||||||||||||||||
Problem assets based on the Financial Reconstruction Act | 1 | 249.8 | 245.3 | 4.6 | 85.6 | % | 53.4 | % | ||||||||||||||||
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Ratio to total loan balance | 2 | 1.2 | % | 1.1 | % | 0.1 | % | — | — | |||||||||||||||
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Loans in bankrupt and practically bankrupt | 3 | 35.0 | 41.3 | (6.3 | ) | 100.0 | % | 100.0 | % | |||||||||||||||
Doubtful loans | 4 | 123.1 | 93.7 | 29.4 | 90.7 | % | 63.3 | % | ||||||||||||||||
Substandard loans (a) | 5 | 91.7 | 110.3 | (18.6 | ) | 73.3 | % | 24.9 | % | |||||||||||||||
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Ordinary assets | 6 | 20,955.1 | 21,827.9 | (872.8 | ) | |||||||||||||||||||
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Loans to substandard debtors (excluding Substandard loans) (b) | 7 | 21.8 | 28.2 | (6.4 | ) | |||||||||||||||||||
Loans to other special mention debtors (excluding (a) and (b)) | 8 | 575.7 | 711.2 | (135.5 | ) | |||||||||||||||||||
Loans to ordinary debtors | 9 | 20,357.6 | 21,088.5 | (731.0 | ) | |||||||||||||||||||
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Note: Coverage ratio = (Collateral value after considering haircuts + Allowance for loan losses) / Loan balance
Allowance ratio = Allowance for loan losses / (Loan balance - Collateral value after considering haircuts)
<Status of BIS capital adequacy ratio (No.1 standard)>
(1) | Consolidated BIS capital adequacy ratio (No.1 standard) and consolidated Tier I capital ratio (No.1 standard) at the end of June 2011 are expected to be 16.0-16.5% and mid 11%, respectively. |
[Consolidated (SMTH)]
Jun. 2011 (Preliminary) | ||||||||
BIS capital adequacy ratio | 1 | 16.0-16.5 | % | |||||
Tier I capital ratio | 2 | mid 11 | % | |||||
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Note: Figures as of June 2011 are now under calculation process and will be announced as finalized.
-Summary 3-
Table of Contents
3. Accounting for business combination related to the Management Integration
(Accounting for business combination)
(1) | The accounting for the business combinations (hereinafter, “purchase accounting method”) is applied, and thus STB would be the acquiring company with CMTH as the acquired company. |
(Effect on assets and liabilities by applying purchase accounting method)
(1) | As a result of revaluating (mark to market) assets and liabilities of CMTH (consolidated) as of March 31 by applying purchase accounting method, total assets decreased by 72.9 billion yen to 14,158.1 billion yen, and total liabilities increased by 50.7 billion yen to 13,437.6 billion yen. There are no intangible assets which are newly recognized. |
(2) | Negative goodwill of 43.4 billion yen was recognized, as shareholders’ equity of 532.5 billion yen (deducting 187.8 billion yen of minority interest from 720.4 billion yen of net assets) exceeded acquisition cost of 489.1 billion yen ( total market value of CMTH’s shares based on the share price as of March 31). |
(Effect on financial results)
(1) | Gain on amortization of negative goodwill of 43.4 billion yen is posted as an extraordinary profit in 1QFY2011 in accordance with the “Accounting Standard for Business Combinations”. |
(2) | There are differences between consolidated and non-consolidated financial results as to profit/ loss resulting from amortization/ accumulation, sales, or devaluation of corresponding assets and liabilities, as the revaluation of assets and liabilities described above is a unique procedure for preparing consolidated financial statements. An effect of these differences for 1QFY2011 is approximately 11.0 billion yen of profit at the level of net income, including one-time factor such as gains/ losses on sales or devaluation of securities (approximately 6.0 billion yen after considering tax effect). |
-Summary 4-
Table of Contents
Sumitomo Mitsui Trust Holdings, Inc.
Financial figures
[Consolidated]
Billions of Yen | ||||||||||||||||||||
1Q | ||||||||||||||||||||
FY2011 | FY2010 | Change | Full FY2010 | |||||||||||||||||
Consolidated gross business profit (*1) | 1 | 163.5 | 160.4 | 3.1 | 622.2 | |||||||||||||||
Consolidated gross business profit (after written-off of principal guaranteed trust a/c) (1 + 19) | 2 | 163.5 | 160.4 | 3.1 | 622.2 | |||||||||||||||
Net interest income and related profit | 3 | 65.8 | 63.8 | 1.9 | 264.7 | |||||||||||||||
Net interest income | 4 | 62.8 | 62.1 | 0.6 | 252.8 | |||||||||||||||
Trust fees from principal guaranteed trust a/c (before written-off of principal guaranteed trust a/c) | 5 | 3.0 | 1.7 | 1.3 | 11.8 | |||||||||||||||
Net fees and commissions and related profit | 6 | 69.8 | 60.8 | 9.0 | 260.5 | |||||||||||||||
Net fees and commissions | 7 | 47.9 | 40.3 | 7.5 | 174.8 | |||||||||||||||
Other trust fees | 8 | 21.9 | 20.4 | 1.5 | 85.7 | |||||||||||||||
Net trading profit | 9 | 1.0 | 0.2 | 0.8 | 14.9 | |||||||||||||||
Net other operating profit | 10 | 26.8 | 35.5 | (8.7 | ) | 82.0 | ||||||||||||||
Net gains on bonds | 11 | 16.8 | 26.5 | (9.6 | ) | 37.9 | ||||||||||||||
Net gains from derivatives other than for trading or hedging | 12 | (1.7 | ) | (5.6 | ) | 3.8 | (5.8 | ) | ||||||||||||
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General and administrative expenses | 13 | (93.5 | ) | (85.0 | ) | (8.4 | ) | (342.6 | ) | |||||||||||
(excluding amortization of goodwill) | 14 | (91.4 | ) | (82.3 | ) | (9.0 | ) | (331.8 | ) | |||||||||||
Personnel expenses | 15 | (40.6 | ) | (38.7 | ) | (1.8 | ) | (154.2 | ) | |||||||||||
Non-personnel expenses excluding taxes | 16 | (49.5 | ) | (42.8 | ) | (6.6 | ) | (175.6 | ) | |||||||||||
Taxes other than income taxes | 17 | (3.3 | ) | (3.4 | ) | 0.1 | (12.7 | ) | ||||||||||||
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Provision of general allowance for loan losses | 18 | — | — | — | (1.0 | ) | ||||||||||||||
Principal guaranteed trust a/c credit costs | 19 | — | — | — | — | |||||||||||||||
Banking a/c credit costs | 20 | (0.8 | ) | (1.3 | ) | 0.5 | (32.3 | ) | ||||||||||||
Written-off of loans | 21 | (0.8 | ) | (1.0 | ) | 0.2 | (19.7 | ) | ||||||||||||
Provision of specific allowance for loan losses | 22 | — | — | — | (11.8 | ) | ||||||||||||||
Losses on sales of loans | 23 | (0.0 | ) | (0.3 | ) | 0.3 | (0.7 | ) | ||||||||||||
Reversal of allowance for loan losses (*2) | 24 | 6.7 | — | 6.7 | — | |||||||||||||||
Recoveries of written-off claims (*2) | 25 | 0.4 | — | 0.4 | — | |||||||||||||||
Net gains on stocks | 26 | (0.8 | ) | 0.3 | (1.1 | ) | (3.1 | ) | ||||||||||||
Losses on devaluation of stocks | 27 | (1.7 | ) | (2.2 | ) | 0.4 | (13.6 | ) | ||||||||||||
Net income from affiliates by equity method | 28 | 0.7 | 0.9 | (0.2 | ) | 3.2 | ||||||||||||||
Others | 29 | (4.3 | ) | (7.4 | ) | 3.0 | (60.9 | ) | ||||||||||||
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Ordinary profit | 30 | 71.9 | 67.8 | 4.1 | 185.4 | |||||||||||||||
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Extraordinary profit | 31 | 43.0 | 2.7 | 40.3 | 7.2 | |||||||||||||||
Gain on amortization of negative goodwill related to share exchange | 32 | 43.4 | — | 43.4 | — | |||||||||||||||
Reversal of allowance for loan losses (*2) | 33 | — | 4.0 | (4.0 | ) | 0.7 | ||||||||||||||
Recoveries of written-off claims (*2) | 34 | — | 0.6 | (0.6 | ) | 8.3 | ||||||||||||||
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Income before income tax | 35 | 115.0 | 70.5 | 44.4 | 192.7 | |||||||||||||||
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Total income taxes | 36 | (19.4 | ) | (22.0 | ) | 2.5 | (42.0 | ) | ||||||||||||
Income taxes-current | 37 | (4.5 | ) | (13.5 | ) | 8.9 | (36.2 | ) | ||||||||||||
Income taxes-deferred | 38 | (14.9 | ) | (8.4 | ) | (6.4 | ) | (5.7 | ) | |||||||||||
Net income before minority interests | 39 | 95.5 | 48.5 | 46.9 | 150.7 | |||||||||||||||
Minority interest | 40 | (5.8 | ) | (5.1 | ) | (0.7 | ) | (19.9 | ) | |||||||||||
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Net income | 41 | 89.6 | 43.3 | 46.2 | 130.7 | |||||||||||||||
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Net income (excluding gain on amortization of negative goodwill related to share exchange) (41- 32) | 42 | 46.2 | 43.3 | 2.8 | 130.7 | |||||||||||||||
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Total credit costs (18 + 19 + 20 + 24 + 25 + 33 + 34) (*2) | 43 | 6.4 | 3.2 | 3.1 | (24.3 | ) | ||||||||||||||
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Consolidated net business profit before credit costs (*3) | 44 | 70.6 | 78.0 | (7.4 | ) | 290.6 | ||||||||||||||
(Difference from non-consolidated (CMTB+CMAB+STB) net business profit before credit costs | 45 | 14.3 | 12.6 | 1.7 | 57.3 | |||||||||||||||
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(*1) | Consolidated gross business profit = Trust fees + (Interest income - Interest expenses) + (Fees and commissions - Fees and commissions payments) + (Trading income - Trading expenses) + (Other operating income - Other operating expenses) |
(*2) | Due to the reversal of reserves, the amount is included in the extraordinary income for full FY2010 and 1QFY2011. In addition, as a result of the amendment of “Practical Guidance of Accounting for Financial Instruments”, “Reversal of allowance for loan losses” and “Recoveries of written-off claims” has been relocated since 1QFY2011. |
(*3) | Consolidated net business profit before credit costs = Non-consolidated (CMTB+ CMAB+STB) net business profit before credit costs+ Subsidiary companies’ ordinary profits (non-recurring effect adjusted) + Affiliates’ ordinary profits (non-recurring effect adjusted) x Ratio of equity holdings - Intra-group transaction (dividends, etc.) |
<Number of subsidiaries/ affiliates>
June 2011 | Mar. 2011 | Change | ||||||||||||||
Consolidated subsidiaries | 46 | 77 | 76 | 1 | ||||||||||||
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Affiliates (subject to the equity method) | 47 | 12 | 13 | (1 | ) | |||||||||||
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Note: | Number of subsidiaries and affiliates at Mar. 2011 is combined total for those of CMTH and STB (for reference). | |
Japan Trustee Services Bank, Ltd , an affiliate of both CMTH and STB, is counted as one entity as of Mar. 2011. |
1
Table of Contents
Sumitomo Mitsui Trust Holdings, Inc.
[Non-consolidated (CMTB + CMAB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||||||||||||||||||
1QFY2010 | 1QFY2011 | Change from 1QFY2010 | Full FY2010 | |||||||||||||||||||||||||||||||||||||||||
CMTB | CMAB | STB | CMTB | CMAB | STB | |||||||||||||||||||||||||||||||||||||||
Gross business profit | 1 | 117.1 | 49.5 | 7.5 | 60.0 | 125.0 | 51.5 | 7.6 | 65.7 | (7.8 | ) | 475.5 | ||||||||||||||||||||||||||||||||
Gross business profit (after written-off of principal guaranteed trust a/c) (1 + 21) | 2 | 117.1 | 49.5 | 7.5 | 60.0 | 125.0 | 51.5 | 7.6 | 65.7 | (7.8 | ) | 475.5 | ||||||||||||||||||||||||||||||||
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Net interest income and related profit | 3 | 64.7 | 29.6 | 0.0 | 35.1 | 60.6 | 25.5 | 0.0 | 35.0 | 4.0 | 247.2 | |||||||||||||||||||||||||||||||||
Net interest income | 4 | 61.6 | 27.3 | 0.0 | 34.3 | 58.9 | 24.9 | 0.0 | 33.9 | 2.7 | 235.4 | |||||||||||||||||||||||||||||||||
Trust fees from principal guaranteed trust a/c (before written off of principal guaranteed trust a/c) | 5 | 3.0 | 2.2 | — | 0.7 | 1.7 | 0.6 | — | 1.1 | 1.3 | 11.8 | |||||||||||||||||||||||||||||||||
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Net fees and commissions and related profit | 6 | 37.3 | 12.4 | 7.5 | 17.3 | 38.6 | 12.9 | 7.6 | 18.0 | (1.2 | ) | 170.6 | ||||||||||||||||||||||||||||||||
Net fees and commissions | 7 | 16.9 | 11.7 | (0.9 | ) | 6.1 | 18.1 | 12.0 | (0.9 | ) | 7.1 | (1.2 | ) | 84.8 | ||||||||||||||||||||||||||||||
Other trust fees | 8 | 20.4 | 0.6 | 8.4 | 11.2 | 20.4 | 0.9 | 8.6 | 10.8 | 0.0 | 85.8 | |||||||||||||||||||||||||||||||||
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Net trading income | 9 | 1.0 | 0.9 | — | 0.0 | 0.2 | 0.1 | — | 0.0 | 0.8 | 15.2 | |||||||||||||||||||||||||||||||||
Net other operating income | 10 | 14.0 | 6.5 | — | 7.4 | 25.5 | 12.9 | — | 12.6 | (11.5 | ) | 42.2 | ||||||||||||||||||||||||||||||||
Net gains on foreign exchange transactions | 11 | 0.9 | 0.0 | — | 0.9 | 2.0 | 0.0 | — | 1.9 | (1.0 | ) | 4.0 | ||||||||||||||||||||||||||||||||
Net gains on bonds | 12 | 14.6 | 6.5 | — | 8.1 | 26.4 | 13.7 | — | 12.7 | (11.8 | ) | 37.9 | ||||||||||||||||||||||||||||||||
Net gains from derivatives other than for trading or hedging | 13 | (1.7 | ) | 0.0 | — | (1.7 | ) | (5.6 | ) | (0.9 | ) | — | (4.7 | ) | 3.9 | (5.9 | ) | |||||||||||||||||||||||||||
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General and administrative expenses | 14 | (60.8 | ) | (24.8 | ) | (4.0 | ) | (31.9 | ) | (59.6 | ) | (24.2 | ) | (3.9 | ) | (31.5 | ) | (1.2 | ) | (242.1 | ) | |||||||||||||||||||||||
Personnel expenses | 15 | (24.6 | ) | (11.0 | ) | (2.0 | ) | (11.5 | ) | (25.0 | ) | (10.9 | ) | (1.8 | ) | (12.2 | ) | 0.4 | (99.0 | ) | ||||||||||||||||||||||||
Non-personnel expenses | 16 | (33.4 | ) | (12.5 | ) | (2.0 | ) | (18.8 | ) | (31.5 | ) | (11.9 | ) | (1.9 | ) | (17.6 | ) | (1.8 | ) | (131.8 | ) | |||||||||||||||||||||||
Taxes other than income taxes | 17 | (2.7 | ) | (1.2 | ) | (0.0 | ) | (1.5 | ) | (2.9 | ) | (1.3 | ) | (0.0 | ) | (1.5 | ) | 0.1 | (11.2 | ) | ||||||||||||||||||||||||
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Net business profit before credit costs (1 + 14) | 18 | 56.2 | 24.7 | 3.4 | 28.0 | 65.3 | 27.3 | 3.7 | 34.2 | (9.1 | ) | 233.3 | ||||||||||||||||||||||||||||||||
(Excluding Net gains on bonds) (18 - 12) | 19 | 41.5 | 18.2 | 3.4 | 19.8 | 38.8 | 13.6 | 3.7 | 21.5 | 2.7 | 195.3 | |||||||||||||||||||||||||||||||||
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Provision of general allowance for loan losses | 20 | 1.7 | 1.7 | — | — | — | — | — | — | 1.7 | — | |||||||||||||||||||||||||||||||||
Principal guaranteed trust a/c credit costs | 21 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Net business profit | 22 | 58.0 | 26.5 | 3.4 | 28.0 | 65.3 | 27.3 | 3.7 | 34.2 | (7.3 | ) | 233.3 | ||||||||||||||||||||||||||||||||
Net non-recurring profit | 23 | (13.8 | ) | (18.0 | ) | (0.6 | ) | 4.7 | (9.0 | ) | (3.5 | ) | (0.6 | ) | (4.9 | ) | (4.8 | ) | (83.9 | ) | ||||||||||||||||||||||||
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Banking a/c net credit costs | 24 | (5.7 | ) | (5.5 | ) | — | (0.2 | ) | (0.7 | ) | (0.2 | ) | — | (0.5 | ) | (5.0 | ) | (17.6 | ) | |||||||||||||||||||||||||
Written-off of loans | 25 | (0.5 | ) | (0.2 | ) | — | (0.2 | ) | (0.3 | ) | (0.2 | ) | — | (0.1 | ) | (0.1 | ) | (16.8 | ) | |||||||||||||||||||||||||
Provision of specific allowance for loan losses | 26 | (5.2 | ) | (5.2 | ) | — | — | — | — | — | — | (5.2 | ) | — | ||||||||||||||||||||||||||||||
Losses on sales of loans | 27 | (0.0 | ) | — | — | (0.0 | ) | (0.3 | ) | — | — | (0.3 | ) | 0.3 | (0.7 | ) | ||||||||||||||||||||||||||||
Reversal of allowance for loan losses (*1) | 28 | 8.9 | — | — | 8.9 | — | — | — | — | 8.9 | — | |||||||||||||||||||||||||||||||||
Recoveries of written-off claims (*1) | 29 | 0.2 | 0.2 | — | 0.0 | — | — | — | — | 0.2 | — | |||||||||||||||||||||||||||||||||
Net gains on stocks | 30 | (9.2 | ) | (8.1 | ) | — | (1.0 | ) | 0.1 | 1.4 | — | (1.3 | ) | (9.3 | ) | (7.3 | ) | |||||||||||||||||||||||||||
Losses on devaluation of stocks | 31 | (10.0 | ) | (8.3 | ) | — | (1.6 | ) | (2.2 | ) | (0.2 | ) | — | (2.0 | ) | (7.8 | ) | (17.3 | ) | |||||||||||||||||||||||||
Others | 32 | (8.0 | ) | (4.5 | ) | (0.6 | ) | (2.8 | ) | (8.4 | ) | (4.8 | ) | (0.6 | ) | (3.0 | ) | 0.4 | (58.9 | ) | ||||||||||||||||||||||||
Amortization of net actuarial losses/ prior service cost | 33 | (5.8 | ) | (2.6 | ) | (0.6 | ) | (2.5 | ) | (6.5 | ) | (2.7 | ) | (0.6 | ) | (3.1 | ) | 0.6 | (25.8 | ) | ||||||||||||||||||||||||
Net gains on stock related derivatives | 34 | (0.2 | ) | (0.3 | ) | — | 0.0 | 2.1 | 0.0 | — | 2.1 | (2.4 | ) | 1.2 | ||||||||||||||||||||||||||||||
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Ordinary profit | 35 | 44.1 | 8.5 | 2.7 | 32.8 | 56.2 | 23.8 | 3.1 | 29.3 | (12.1 | ) | 149.4 | ||||||||||||||||||||||||||||||||
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Extraordinary profit | 36 | (1.1 | ) | (0.6 | ) | (0.1 | ) | (0.3 | ) | 5.8 | 1.9 | (0.0 | ) | 4.0 | (7.0 | ) | 0.7 | |||||||||||||||||||||||||||
Net gains on disposal of fixed assets | 37 | (0.1 | ) | (0.1 | ) | (0.0 | ) | (0.0 | ) | (0.0 | ) | (0.0 | ) | (0.0 | ) | (0.0 | ) | (0.1 | ) | (1.3 | ) | |||||||||||||||||||||||
Reversal of allowance for loan losses (*1) | 38 | — | — | — | — | 5.0 | 1.8 | — | 3.1 | (5.0 | ) | 2.9 | ||||||||||||||||||||||||||||||||
Recoveries of written-off claims (*1) | 39 | — | — | — | — | 0.3 | 0.3 | — | 0.0 | (0.3 | ) | 7.2 | ||||||||||||||||||||||||||||||||
Costs related to the Management Integration | 40 | (0.9 | ) | (0.5 | ) | (0.1 | ) | (0.2 | ) | (0.1 | ) | (0.1 | ) | (0.0 | ) | — | (0.8 | ) | (7.1 | ) | ||||||||||||||||||||||||
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Income before income taxes | 41 | 43.0 | 7.8 | 2.6 | 32.4 | 62.1 | 25.7 | 3.0 | 33.3 | (19.1 | ) | 150.1 | ||||||||||||||||||||||||||||||||
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Total income taxes | 42 | (8.1 | ) | 3.6 | (1.0 | ) | (10.7 | ) | (17.2 | ) | (5.7 | ) | (1.2 | ) | (10.2 | ) | 9.1 | (27.1 | ) | |||||||||||||||||||||||||
Income taxes-current | 43 | (0.7 | ) | (0.0 | ) | (1.0 | ) | 0.3 | (9.6 | ) | (0.0 | ) | (1.1 | ) | (8.4 | ) | 8.8 | (23.8 | ) | |||||||||||||||||||||||||
Income taxes-deferred | 44 | (7.3 | ) | 3.7 | (0.0 | ) | (11.0 | ) | (7.6 | ) | (5.7 | ) | (0.1 | ) | (1.7 | ) | 0.2 | (3.3 | ) | |||||||||||||||||||||||||
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Net income | 45 | 34.8 | 11.5 | 1.5 | 21.7 | 44.9 | 20.0 | 1.8 | 23.0 | (10.0 | ) | 123.0 | ||||||||||||||||||||||||||||||||
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Total credit costs (20 + 21 + 24 + 28 + 29 + 38 + 39) | 46 | 5.2 | (3.5 | ) | — | 8.7 | 4.7 | 2.0 | — | 2.7 | 0.4 | (7.4 | ) | |||||||||||||||||||||||||||||||
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Overhead ratio (-14/1) | 47 | 51.97 | % | 50.03 | % | 54.55 | % | 53.26 | % | 47.71 | % | 46.95 | % | 51.21 | % | 47.89 | % | 4.26 | % | 50.93 | % | |||||||||||||||||||||||
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(*1) | Due to the reversal of reserves, the amount is included in the extraordinary income for full FY2010 and 1QFY2011. In addition, due to the amendment of Practical Guidance of Accounting for Financial Instruments, “Reversal of allowance for loan losses” and “Recoveries of written-off claims” has been relocated since 1QFY2011. |
2
Table of Contents
Sumitomo Mitsui Trust Holdings, Inc.
Domestic banking a/c
[Non-consolidated (CMTB + STB)]
Percentage points | ||||||||||||||||||||||||||||||||
1QFY2011 | 2HFY2010 | Change from 2HFY2010 | 1HFY2010 | |||||||||||||||||||||||||||||
CMTB | STB | CMTB | STB | |||||||||||||||||||||||||||||
Average yield on interest-earning assets (A) | 1.20 | 1.23 | 1.18 | 1.18 | 1.15 | 1.20 | 0.02 | 1.20 | ||||||||||||||||||||||||
Loans and bills discounted (B) | 1.22 | 1.25 | 1.19 | 1.28 | 1.33 | 1.25 | (0.06 | ) | 1.34 | |||||||||||||||||||||||
Securities | 1.23 | 1.51 | 1.04 | 0.94 | 0.96 | 0.92 | 0.29 | 0.86 | ||||||||||||||||||||||||
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Average yield on interest-bearing liabilities (C) | 0.43 | 0.44 | 0.42 | 0.45 | 0.46 | 0.43 | (0.02 | ) | 0.46 | |||||||||||||||||||||||
Deposits (D) | 0.40 | 0.41 | 0.39 | 0.43 | 0.44 | 0.42 | (0.03 | ) | 0.46 | |||||||||||||||||||||||
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Gross margin (A) - (C) | 0.77 | 0.79 | 0.76 | 0.73 | 0.69 | 0.77 | 0.04 | 0.74 | ||||||||||||||||||||||||
Loan-deposit margin (B) - (D) | 0.82 | 0.84 | 0.80 | 0.85 | 0.89 | 0.83 | (0.03 | ) | 0.88 | |||||||||||||||||||||||
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3. Unrealized gains/ losses on investment securities
[Consolidated]
Billions of Yen | ||||||||||||||||||||||||||||||||
June 2011 (*2) | Mar. 2011 | Change of Cost | Change of Net | |||||||||||||||||||||||||||||
Cost | Net | Unrealized gains | Unrealized losses | Cost | Net | |||||||||||||||||||||||||||
Available-for-sale securities | 7,867.3 | 41.5 | 153.0 | (111.5 | ) | 7,356.0 | 68.1 | 511.3 | (26.6 | ) | ||||||||||||||||||||||
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Japanese stocks (*1) | 902.6 | (9.2 | ) | 80.2 | (89.5 | ) | 873.9 | 83.2 | 28.6 | (92.5 | ) | |||||||||||||||||||||
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Japanese bonds | 4,927.6 | 35.7 | 38.5 | (2.8 | ) | 4,050.6 | 7.8 | 877.0 | 27.8 | |||||||||||||||||||||||
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|
|
| |||||||||||||||||
Government bonds | 4,090.6 | 32.9 | 33.6 | (0.7 | ) | 3,238.6 | 6.0 | 851.9 | 26.8 | |||||||||||||||||||||||
Local government bonds | 11.5 | 0.1 | 0.1 | (0.0 | ) | 20.6 | (0.0 | ) | (9.1 | ) | 0.1 | |||||||||||||||||||||
Corporate bonds | 825.4 | 2.7 | 4.7 | (2.0 | ) | 791.3 | 1.8 | 34.1 | 0.8 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Others | 2,037.0 | 15.0 | 34.2 | (19.2 | ) | 2,431.4 | (22.9 | ) | (394.3 | ) | 37.9 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Held-to-maturity debt securities | 682.3 | 49.1 | 50.0 | (0.8 | ) | 724.8 | 50.1 | (42.5 | ) | (0.9 | ) | |||||||||||||||||||||
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|
|
|
|
|
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|
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|
|
|
|
(*1) | Fair value of listed stocks included in “Available-for-sale securities” is basically determined based on the average quoted market price over the month preceding the consolidated balance sheet date. |
(*2) | Figures as of June 2011 are those to which “Accounting Standard for Business Combinations” (ASBJ Statement No.21) was applied. |
As to the effect of purchase accounting method, please refer to “3. Accounting for business combination related to the Management Integration” (Summary 4). |
[Non-consolidated (CMTB + CMAB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change of Cost | Change of Net | |||||||||||||||||||||||||||||
Cost | Net | Unrealized gains | Unrealized losses | Cost | Net | |||||||||||||||||||||||||||
Available-for-sale securities | 7,190.6 | 28.0 | 192.6 | (164.6 | ) | 7,291.8 | 49.8 | (101.1 | ) | (21.8 | ) | |||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Japanese stocks (*) | 803.1 | 14.9 | 131.0 | (116.0 | ) | 813.5 | 65.1 | (10.4 | ) | (50.2 | ) | |||||||||||||||||||||
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|
|
|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Japanese bonds | 4,348.8 | 23.5 | 36.6 | (13.0 | ) | 4,070.6 | 7.8 | 278.1 | 15.7 | |||||||||||||||||||||||
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|
| |||||||||||||||||
Government bonds | 3,493.1 | 19.4 | 29.8 | (10.3 | ) | 3,238.6 | 6.0 | 254.4 | 13.4 | |||||||||||||||||||||||
Local government bonds | 11.5 | 0.1 | 0.1 | (0.0 | ) | 20.6 | (0.0 | ) | (9.1 | ) | 0.1 | |||||||||||||||||||||
Corporate bonds | 844.1 | 4.0 | 6.6 | (2.6 | ) | 811.3 | 1.8 | 32.8 | 2.1 | |||||||||||||||||||||||
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|
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|
|
|
|
|
|
| |||||||||||||||||
Others | 2,038.6 | (10.5 | ) | 25.0 | (35.5 | ) | 2,407.5 | (23.1 | ) | (368.9 | ) | 12.6 | ||||||||||||||||||||
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|
|
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Held-to-maturity debt securities | 681.3 | 49.4 | 50.5 | (1.1 | ) | 724.2 | 50.1 | (42.8 | ) | (0.7 | ) | |||||||||||||||||||||
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|
|
(*) | Fair value of listed stocks included in “Available-for-sale securities” is basically determined based on the average quoted market price over the month preceding the consolidated balance sheet date. |
[CMTB Non-consolidated]
Billions of Yen | ||||||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change of Cost | Change of Net | |||||||||||||||||||||||||||||
Cost | Net | Unrealized gains | Unrealized losses | Cost | Net | |||||||||||||||||||||||||||
Available-for-sale securities | 3,258.9 | (20.3 | ) | 67.6 | (88.0 | ) | 3,080.5 | (19.5 | ) | 178.3 | (0.8 | ) | ||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Japanese stocks (*) | 379.6 | (1.8 | ) | 55.5 | (57.3 | ) | 388.3 | 20.2 | (8.6 | ) | (22.0 | ) | ||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Japanese bonds | 1,770.2 | (4.8 | ) | 6.2 | (11.0 | ) | 1,554.4 | (12.9 | ) | 215.8 | 8.1 | |||||||||||||||||||||
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|
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|
|
|
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|
|
|
|
|
| |||||||||||||||||
Government bonds | 1,492.6 | (6.9 | ) | 3.3 | (10.3 | ) | 1,283.5 | (14.2 | ) | 209.1 | 7.3 | |||||||||||||||||||||
Local government bonds | 0.1 | 0.0 | 0.0 | — | 0.1 | 0.0 | 0.0 | 0.0 | ||||||||||||||||||||||||
Corporate bonds | 277.4 | 2.0 | 2.8 | (0.7 | ) | 270.7 | 1.3 | 6.6 | 0.7 | |||||||||||||||||||||||
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|
|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Others | 1,109.0 | (13.6 | ) | 5.9 | (19.5 | ) | 1,137.8 | (26.8 | ) | (28.8 | ) | 13.1 | ||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Held-to-maturity debt securities | 275.5 | 1.2 | 1.5 | (0.3 | ) | 297.0 | 0.3 | (21.5 | ) | 0.8 | ||||||||||||||||||||||
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|
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|
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|
|
(*) | Fair value of listed stocks included in “Available-for-sale securities” is determined based on the average quoted market price over the month preceding the consolidated balance sheet date. |
3
Table of Contents
Sumitomo Mitsui Trust Holdings, Inc.
[STB Non-consolidated]
Billions of Yen | ||||||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change of Cost | Change of Net | |||||||||||||||||||||||||||||
Cost | Net | Unrealized gains | Unrealized losses | Cost | Net | |||||||||||||||||||||||||||
Available-for-sale securities | 3,871.7 | 48.4 | 125.0 | (76.6 | ) | 4,122.2 | 69.4 | (250.5 | ) | (21.0 | ) | |||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Japanese stocks (*1) | 423.4 | 16.8 | 75.5 | (58.6 | ) | 425.2 | 44.9 | (1.8 | ) | (28.1 | ) | |||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Japanese bonds | 2,518.6 | 28.4 | 30.3 | (1.9 | ) | 2,427.2 | 20.8 | 91.3 | 7.6 | |||||||||||||||||||||||
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|
|
|
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|
|
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|
|
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|
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| |||||||||||||||||
Government bonds | 1,940.4 | 26.4 | 26.5 | (0.0 | ) | 1,866.1 | 20.3 | 74.2 | 6.1 | |||||||||||||||||||||||
Local government bonds | 11.3 | 0.1 | 0.1 | (0.0 | ) | 20.5 | (0.0 | ) | (9.1 | ) | 0.1 | |||||||||||||||||||||
Corporate bonds | 566.7 | 1.9 | 3.7 | (1.8 | ) | 540.5 | 0.5 | 26.1 | 1.3 | |||||||||||||||||||||||
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|
|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Others | 929.6 | 3.1 | 19.1 | (15.9 | ) | 1,269.7 | 3.6 | (340.0 | ) | (0.5 | ) | |||||||||||||||||||||
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|
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|
|
|
|
|
| |||||||||||||||||
Held-to-maturity debt securities | 405.7 | 48.2 | 49.0 | (0.8 | ) | 427.1 | 49.7 | (21.3 | ) | (1.5 | ) | |||||||||||||||||||||
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|
(*1) | Fair value of listed stocks included in “Available-for-sale securities” is basically determined based on the average quoted market price over the month preceding the consolidated balance sheet date. |
(*2) | Book value of floating rate government bonds and some of the overseas asset-backed securities have been changed from the market prices to the rationally calculated prices. As a result, “Government bonds” has increased by 7.2 billion yen, and “Others” has increased by 0.0 million yen as of the end of June 2011. |
(*3) | Fair value of some of the overseas asset-backed securities categorized in “Held-to-maturity debt securities” have been changed from the market prices to the rationally calculated prices. As a result, “Fair value” of the “Foreign bonds” has decreased by 1.5 billion yen, as of the end of June 2011. |
<Reference 1>
Breakdown of Available-for-sale securities (Others)
[Non-consolidated (CMTB + CMAB + STB)]
Billions of Yen | ||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change of Cost | Change of Net | |||||||||||||||||||||
Cost | Net | Cost | Net | |||||||||||||||||||||
Domestic investment (*1) | 428.2 | (3.2 | ) | 387.6 | (4.1 | ) | 40.6 | 0.9 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Asset-backed securities | 251.7 | (2.8 | ) | 267.2 | (3.2 | ) | (15.4 | ) | 0.3 | |||||||||||||||
Others | 176.4 | (0.4 | ) | 120.3 | (0.9 | ) | 56.0 | 0.5 | ||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
International investment (*1) | 1,439.9 | 0.0 | 1,851.1 | (12.1 | ) | (411.1 | ) | 12.1 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Foreign government bonds | 816.2 | (13.7 | ) | 1,134.1 | (22.5 | ) | (317.9 | ) | 8.7 | |||||||||||||||
US agency MBS (*2) | 292.1 | 0.5 | 344.1 | (2.9 | ) | (52.0 | ) | 3.5 | ||||||||||||||||
Corporate bonds | 326.9 | 4.2 | 368.1 | 3.5 | (41.1 | ) | 0.6 | |||||||||||||||||
Asset-backed securities | 4.4 | 8.8 | 4.5 | 9.6 | (0.1 | ) | (0.7 | ) | ||||||||||||||||
Others | 0.1 | 0.1 | 0.1 | 0.1 | (0.0 | ) | (0.0 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Mutual fund | 170.4 | (7.2 | ) | 168.7 | (6.8 | ) | 1.6 | (0.4 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 2,038.6 | (10.5 | ) | 2,407.5 | (23.1 | ) | (368.9 | ) | 12.6 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | “Domestic investment” and “International investment” are categorized by the countries where final exposure is exist. |
(*2) | Constituted by GNMA only. |
[CMTB Non-consolidated]
Billions of Yen | ||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change of Cost | Change of Net | |||||||||||||||||||||
Cost | Net | Cost | Net | |||||||||||||||||||||
Domestic investment (*1) | 162.2 | (0.8 | ) | 111.6 | (1.0 | ) | 50.6 | 0.1 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Asset-backed securities | 22.5 | (0.0 | ) | 23.2 | (0.0 | ) | (0.7 | ) | 0.0 | |||||||||||||||
Others | 139.7 | (0.8 | ) | 88.3 | (0.9 | ) | 51.3 | 0.1 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
International investment (*1) | 864.3 | (7.9 | ) | 946.9 | (20.7 | ) | (82.6 | ) | 12.8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Foreign government bonds | 351.9 | (7.3 | ) | 352.5 | (16.5 | ) | (0.6 | ) | 9.2 | |||||||||||||||
US agency MBS (*2) | 292.1 | 0.5 | 344.1 | (2.9 | ) | (52.0 | ) | 3.5 | ||||||||||||||||
Corporate bonds | 220.2 | (1.1 | ) | 250.2 | (1.2 | ) | (29.9 | ) | 0.1 | |||||||||||||||
Asset-backed securities | — | — | — | — | — | — | ||||||||||||||||||
Others | — | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Mutual fund | 82.4 | (4.8 | ) | 79.2 | (4.9 | ) | 3.1 | 0.0 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 1,109.0 | (13.6 | ) | 1,137.8 | (26.8 | ) | (28.8 | ) | 13.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | “Domestic investment” and “International investment” are categorized by the countries where final exposure is exist. |
(*2) | Constituted by GNMA only. |
[STB Non-consolidated]
Billions of Yen | ||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change of Cost | Change of Net | |||||||||||||||||||||
Cost | Net | Cost | Net | |||||||||||||||||||||
Domestic investment (*) | 266.0 | (2.4 | ) | 276.0 | (3.1 | ) | (10.0 | ) | 0.7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Asset-backed securities | 229.2 | (2.8 | ) | 243.9 | (3.1 | ) | (14.7 | ) | 0.3 | |||||||||||||||
Others | 36.7 | 0.4 | 32.0 | 0.0 | 4.7 | 0.3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
International investment (*) | 575.6 | 7.9 | 904.1 | 8.6 | (328.5 | ) | (0.6 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Foreign government bonds | 464.3 | (6.4 | ) | 781.5 | (5.9 | ) | (317.2 | ) | (0.4 | ) | ||||||||||||||
Corporate bonds | 106.7 | 5.4 | 117.8 | 4.8 | (11.1 | ) | 0.5 | |||||||||||||||||
Asset-backed securities | 4.4 | 8.8 | 4.5 | 9.6 | (0.1 | ) | (0.7 | ) | ||||||||||||||||
Others | 0.1 | 0.1 | 0.1 | 0.1 | (0.0 | ) | (0.0 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Mutual fund | 88.0 | (2.3 | ) | 89.5 | (1.8 | ) | (1.5 | ) | (0.5 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 929.6 | 3.1 | 1,269.7 | 3.6 | (340.0 | ) | (0.5 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*) | “Domestic investment” and “International investment” are categorized by the countries where final exposure is exist. |
4
Table of Contents
Sumitomo Mitsui Trust Holdings, Inc.
<Reference 2>
Breakdown of Held-to-maturity debt securities
[Non-consolidated (CMTB + CMAB + STB)]
Billions of Yen | ||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change of Cost | Change of Net | |||||||||||||||||||||
Cost | Net | Cost | Net | |||||||||||||||||||||
Held-to-maturity debt securities | 681.3 | 49.4 | 724.2 | 50.1 | (42.8 | ) | (0.7 | ) | ||||||||||||||||
Japanese Government Bonds | 179.4 | 8.0 | 184.4 | 7.9 | (5.0 | ) | 0.1 | |||||||||||||||||
Japanese Local Government Bonds | — | — | — | — | — | — | ||||||||||||||||||
Japanese Corporate Bonds | 24.1 | 0.2 | 22.4 | 0.2 | 1.7 | (0.0 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Others | 477.7 | 41.1 | 517.3 | 41.9 | (39.5 | ) | (0.8 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Domestic investment (*) | 84.0 | 2.2 | 84.0 | 1.7 | (0.0 | ) | 0.5 | |||||||||||||||||
International investment (*) | 393.7 | 38.8 | 433.3 | 40.2 | (39.5 | ) | (1.4 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*) | “Domestic investment” and “International investment” are categorized by the countries where final exposure is exist. |
[CMTB Non-consolidated]
Billions of Yen | ||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change of Cost | Change of Net | |||||||||||||||||||||
Cost | Net | Cost | Net | |||||||||||||||||||||
Held-to-maturity debt securities | 275.5 | 1.2 | 297.0 | 0.3 | (21.5 | ) | 0.8 | |||||||||||||||||
Japanese Government Bonds | — | — | — | — | — | — | ||||||||||||||||||
Japanese Local Government Bonds | — | — | — | — | — | — | ||||||||||||||||||
Japanese Corporate Bonds | 24.1 | 0.2 | 22.4 | 0.2 | 1.7 | (0.0 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Others | 251.4 | 0.9 | 274.6 | 0.0 | (23.2 | ) | 0.8 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Domestic investment (*) | 49.7 | 0.7 | 51.6 | 0.5 | (1.9 | ) | 0.2 | |||||||||||||||||
International investment (*) | 201.7 | 0.2 | 223.0 | (0.4 | ) | (21.3 | ) | 0.6 | ||||||||||||||||
Foreign bonds | 201.7 | 0.2 | 223.0 | (0.4 | ) | (21.3 | ) | 0.6 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*) | “Domestic investment” and “International investment” are categorized by the countries where final exposure is exist. |
[STB Non-consolidated]
Billions of Yen | ||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change of Cost | Change of Net | |||||||||||||||||||||
Cost | Net | Cost | Net | |||||||||||||||||||||
Held-to-maturity debt securities | 405.7 | 48.2 | 427.1 | 49.7 | (21.3 | ) | (1.5 | ) | ||||||||||||||||
Japanese Government Bonds | 179.4 | 8.0 | 184.4 | 7.9 | (5.0 | ) | 0.1 | |||||||||||||||||
Japanese Local Government Bonds | — | — | — | — | — | — | ||||||||||||||||||
Japanese Corporate Bonds | — | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Others | 226.3 | 40.1 | 242.7 | 41.8 | (16.3 | ) | (1.7 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Domestic investment (*1) | 34.3 | 1.5 | 32.4 | 1.1 | 1.9 | 0.3 | ||||||||||||||||||
International investment (*1) | 192.0 | 38.6 | 210.3 | 40.7 | (18.2 | ) | (2.0 | ) | ||||||||||||||||
Asset-backed securities (*2) | 192.0 | 38.6 | 210.3 | 40.7 | (18.2 | ) | (2.0 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | “Domestic investment” and “International investment” are categorized by the countries where final exposure is exist. |
(*2) | As a result of using rationally calculated prices instead of market prices, “Fair value” of asset-backed securities decreased by 1.5 billion yen. Unamortized amount of unrealized gains/ losses (before considering tax effect) resulting from reclassification is -56.3 billion yen as of the end of June 2011. |
2) Securities with no available fair value
[Non-consolidated (CMTB + CMAB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | |||||||||||||||||||||||||||
Cost | Cost | Change | ||||||||||||||||||||||||||
CMTB | STB | CMTB | STB | |||||||||||||||||||||||||
Available-for-sale securities | 323.7 | 223.3 | 100.1 | 329.6 | 217.6 | 111.8 | (5.9 | ) | ||||||||||||||||||||
|
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|
|
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|
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|
|
|
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| |||||||||||||||
Japanese stocks | 125.4 | 84.1 | 41.0 | 125.8 | 84.2 | 41.3 | (0.3 | ) | ||||||||||||||||||||
Japanese bonds | 5.0 | — | 5.0 | 15.0 | — | 15.0 | (10.0 | ) | ||||||||||||||||||||
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Others | 193.2 | 139.1 | 54.1 | 188.8 | 133.3 | 55.4 | 4.4 | |||||||||||||||||||||
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Domestic investment (*) | 167.6 | 131.9 | 35.6 | 162.5 | 126.0 | 36.5 | 5.0 | |||||||||||||||||||||
International investment (*) | 25.6 | 7.1 | 18.4 | 26.2 | 7.3 | 18.9 | (0.6 | ) | ||||||||||||||||||||
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(*) | “Domestic investment” and “International investment” are categorized by the countries where final exposure is exist. |
5
Table of Contents
4. Deferred unrealized gains/ losses on Hedge accounting applied derivative transactions
[Non-consolidated (CMTB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||
CMTB | STB | CMTB | STB | |||||||||||||||||||||||||
Interest rate related | 2.1 | 4.7 | (2.5 | ) | 9.3 | 3.6 | 5.7 | (7.1 | ) | |||||||||||||||||||
Interest rate swaps | 2.1 | 4.7 | (2.5 | ) | 9.3 | 3.6 | 5.7 | (7.1 | ) | |||||||||||||||||||
Currency related | 0.4 | (0.0 | ) | 0.4 | (0.2 | ) | (0.0 | ) | (0.2 | ) | 0.6 | |||||||||||||||||
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Total | 2.5 | 4.7 | (2.1 | ) | 9.0 | 3.6 | 5.4 | (6.5 | ) | |||||||||||||||||||
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(*) | Before tax effect accounting. |
5. BIS capital adequacy ratio (No.1 standard: International standard for bank holding company)
[Consolidated]
June 2011 | ||||
(Preliminary) | ||||
BIS capital adequacy ratio | 16.0 - 16.5 | % | ||
Tier I capital ratio | Mid - 11 | % | ||
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Note: Figures as of June 2011 are now in a calculation process and will be announced as finalized.
6. Assets and liabilities (Banking a/c and Principal guaranteed trust a/c combined)
[Non-consolidated (CMTB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change from Mar. 2011 | Sep. 2010 | |||||||||||||||||||||||||||||
CMTB | STB | CMTB | STB | |||||||||||||||||||||||||||||
Loans and bills discounted | 19,480.3 | 8,443.3 | 11,036.9 | 20,409.5 | 9,084.2 | 11,325.2 | (929.2 | ) | 19,959.2 | |||||||||||||||||||||||
Banking account | 19,086.6 | 8,224.7 | 10,861.8 | 20,007.5 | 8,861.5 | 11,146.0 | (920.9 | ) | 19,524.9 | |||||||||||||||||||||||
Principal guaranteed trust account | 393.7 | 218.6 | 175.0 | 401.9 | 222.7 | 179.2 | (8.2 | ) | 434.3 | |||||||||||||||||||||||
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Deposits, Trust principal | 22,687.6 | 10,204.4 | 12,483.2 | 22,805.5 | 10,446.0 | 12,359.5 | (117.8 | ) | 22,117.6 | |||||||||||||||||||||||
Deposits (*) | 21,109.4 | 9,164.1 | 11,945.3 | 21,117.3 | 9,336.1 | 11,781.1 | (7.9 | ) | 20,303.3 | |||||||||||||||||||||||
Trust principal | 1,578.2 | 1,040.2 | 537.9 | 1,688.2 | 1,109.9 | 578.3 | (109.9 | ) | 1,814.3 | |||||||||||||||||||||||
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(*) | Excluding NCDs. |
[Non-consolidated (CMTB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change from Mar. 2011 | Sep. 2010 | |||||||||||||||||||||||||||||
CMTB | STB | CMTB | STB | |||||||||||||||||||||||||||||
Loans to Japanese corporations operating overseas (*1) | 1,428.5 | 113.8 | 1,314.6 | 1,411.4 | 121.3 | 1,290.1 | 17.0 | 1,235.6 | ||||||||||||||||||||||||
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Loans to overseas non-Japanese borrowers (*2) | 221.8 | 63.6 | 158.2 | 241.6 | 66.3 | 175.2 | (19.7 | ) | 274.9 | |||||||||||||||||||||||
North America | 62.3 | 17.3 | 44.9 | 75.1 | 19.4 | 55.7 | (12.8 | ) | 125.2 | |||||||||||||||||||||||
Europe | 50.7 | 29.6 | 21.1 | 54.9 | 29.6 | 25.2 | (4.1 | ) | 62.5 | |||||||||||||||||||||||
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(*1) | Based on borrowers’ location. |
(*2) | Based on the location of final exposure. |
[Non-consolidated (CMTB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change from Mar. 2011 | Sep. 2010 | |||||||||||||||||||||||||||||
CMTB | STB | CMTB | STB | |||||||||||||||||||||||||||||
Domestic Branches (excluding offshore) | 19,476.6 | 8,439.6 | 11,036.9 | 20,405.4 | 9,080.1 | 11,325.2 | (928.7 | ) | 19,954.6 | |||||||||||||||||||||||
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Manufacturing | 2,820.7 | 916.0 | 1,904.6 | 2,754.4 | 899.2 | 1,855.2 | 66.2 | 2,729.0 | ||||||||||||||||||||||||
Agriculture, forestry, fisheries, mining, quarrying of stone and gravel gathering | 24.8 | 1.0 | 23.8 | 22.5 | 1.0 | 21.5 | 2.2 | 25.1 | ||||||||||||||||||||||||
Construction | 166.7 | 66.2 | 100.4 | 164.2 | 70.7 | 93.4 | 2.5 | 174.2 | ||||||||||||||||||||||||
Electricity, gas, heat supply and water | 612.6 | 261.9 | 350.7 | 631.9 | 268.0 | 363.8 | (19.2 | ) | 375.7 | |||||||||||||||||||||||
Information and communications | 269.2 | 37.8 | 231.3 | 225.3 | 28.9 | 196.4 | 43.9 | 230.5 | ||||||||||||||||||||||||
Transport and postal activities | 1,294.9 | 558.7 | 736.2 | 1,275.2 | 559.3 | 715.8 | 19.7 | 1,283.7 | ||||||||||||||||||||||||
Wholesale and retail trade | 1,287.6 | 416.6 | 871.0 | 1,337.6 | 428.5 | 909.1 | (49.9 | ) | 1,354.6 | |||||||||||||||||||||||
Finance and insurance | 2,690.6 | 1,110.7 | 1,579.8 | 3,544.4 | 1,686.8 | 1,857.5 | (853.7 | ) | 3,378.1 | |||||||||||||||||||||||
Real estate | 2,847.2 | 1,177.5 | 1,669.7 | 2,961.0 | 1,239.3 | 1,721.6 | (113.8 | ) | 3,059.9 | |||||||||||||||||||||||
Goods rental and leasing | 664.1 | 117.5 | 546.6 | 785.0 | 139.2 | 645.7 | (120.8 | ) | 838.0 | |||||||||||||||||||||||
Others | 6,797.7 | 3,775.2 | 3,022.5 | 6,703.5 | 3,758.7 | 2,944.7 | 94.2 | 6,505.3 | ||||||||||||||||||||||||
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Overseas branches and offshore | 1,006.8 | 3.6 | 1,003.1 | 1,011.8 | 4.1 | 1,007.6 | (5.0 | ) | 894.9 | |||||||||||||||||||||||
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Total | 20,483.4 | 8,443.3 | 12,040.1 | 21,417.2 | 9,084.2 | 12,332.9 | (933.7 | ) | 20,849.6 | |||||||||||||||||||||||
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Note: Above table is made based on the categorization of “Survey on loans by industry” of Bank of Japan.
6
Table of Contents
Sumitomo Mitsui Trust Holdings, Inc.
7. Problem assets based on the Financial Reconstruction Act (Banking a/c and Principal guaranteed trust a/c combined)
1) Problem assets based on the Financial Reconstruction Act (After partial direct written-off)
[Non-consolidated (CMTB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change from Mar. 2011 | Sep. 2010 | |||||||||||||||||||||||||||||
CMTB | STB | CMTB | STB | |||||||||||||||||||||||||||||
Problem assets based on the Financial Reconstruction Act (a) | 249.8 | 102.2 | 147.6 | 245.3 | 89.6 | 155.7 | 4.6 | 261.3 | ||||||||||||||||||||||||
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Loans in bankrupt and practically bankrupt | 35.0 | 11.2 | 23.8 | 41.3 | 17.3 | 23.9 | (6.3 | ) | 32.2 | |||||||||||||||||||||||
Doubtful loans | 123.1 | 71.8 | 51.3 | 93.7 | 44.0 | 49.6 | 29.4 | 112.6 | ||||||||||||||||||||||||
Substandard loans (b) | 91.7 | 19.2 | 72.6 | 110.3 | 28.2 | 82.1 | (18.6 | ) | 116.5 | |||||||||||||||||||||||
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Ordinary assets | 20,955.1 | 8,542.6 | 12,412.6 | 21,827.9 | 9,192.7 | 12,635.2 | (872.8 | ) | 21,270.9 | |||||||||||||||||||||||
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Loans to substandard debtors (excluding Substandard loans) (c) | 21.8 | 0.6 | 21.2 | 28.2 | 0.6 | 27.6 | (6.4 | ) | 32.6 | |||||||||||||||||||||||
Loans to other special mention debtors | 575.7 | 229.6 | 346.1 | 711.2 | 335.0 | 376.3 | (135.5 | ) | 835.5 | |||||||||||||||||||||||
Loans to ordinary debtors | 20,357.6 | 8,312.4 | 12,045.2 | 21,088.5 | 8,857.2 | 12,231.3 | (731.0 | ) | 20,402.8 | |||||||||||||||||||||||
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Total loan balance (d) | 21,204.9 | 8,644.8 | 12,560.2 | 22,073.2 | 9,282.3 | 12,790.9 | (868.3 | ) | 21,532.2 | |||||||||||||||||||||||
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(Ratio to total loan balance (a) / (d)) | 1.2 | % | 1.2 | % | 1.2 | % | 1.1 | % | 1.0 | % | 1.2 | % | 0.1 | % | 1.2 | % | ||||||||||||||||
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Loans to substandard debtors (b) + (c) | 113.5 | 19.7 | 93.8 | 138.5 | 28.8 | 109.7 | (25.0 | ) | 149.1 | |||||||||||||||||||||||
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Note: | CMTB’s partial direct written-off: June 2011: 24.3 billion yen, Mar. 2011: 19.3 billion yen, Sep. 2010: 25.1 billion yen STB’s partial direct written-off: June 2011: 0.2 billion yen, Mar. 2011: 38.0 billion yen, Sep. 2010: 28.0 billion yen | |
Note: | Figures of CMTB’s “Mutual-aid pension plan trust account” has been excluded. As a result, compared to conventional disclosure, “Ordinary assets” and “Total loan balance” has decrease by 3.8 billion yen as of June 2011, 4.0 billion yen as of Mar. 2011, and 4.4 billion yen as of Sep. 2009, respectively. |
2) Coverage ratio and allowance ratio of Problem assets based on the Financial Reconstruction Act (*1)
[Non-consolidated (CMTB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change from Mar. 2011 | Sep. 2010 | |||||||||||||||||||||||||||||
CMTB | STB | CMTB | STB | |||||||||||||||||||||||||||||
Problem assets based on the Financial Reconstruction Act | 249.8 | 102.2 | 147.6 | 245.3 | 89.6 | 155.7 | 4.6 | 261.3 | ||||||||||||||||||||||||
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Coverage ratio | 85.6 | % | 88.4 | % | 83.7 | % | 77.9 | % | 74.5 | % | 79.8 | % | 7.7 | % | 79.2 | % | ||||||||||||||||
Allowance ratio | 53.4 | % | 44.2 | % | 56.9 | % | 46.3 | % | 38.2 | % | 51.0 | % | 7.1 | % | 53.1 | % | ||||||||||||||||
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Loans in bankrupt and practically bankrupt | 35.0 | 11.2 | 23.8 | 41.3 | 17.3 | 23.9 | (6.3 | ) | 32.2 | |||||||||||||||||||||||
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Coverage ratio | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | — | % | 100.0 | % | ||||||||||||||||
Allowance ratio | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | — | % | 100.0 | % | ||||||||||||||||
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Doubtful loans | 123.1 | 71.8 | 51.3 | 93.7 | 44.0 | 49.6 | 29.4 | 112.6 | ||||||||||||||||||||||||
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Coverage ratio | 90.7 | % | 91.4 | % | 89.7 | % | 87.9 | % | 86.0 | % | 89.6 | % | 2.8 | % | 89.4 | % | ||||||||||||||||
Allowance ratio | 63.3 | % | 37.7 | % | 75.2 | % | 63.8 | % | 39.5 | % | 75.5 | % | (0.5 | %) | 74.8 | % | ||||||||||||||||
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Substandard loans | 91.7 | 19.2 | 72.6 | 110.3 | 28.2 | 82.1 | (18.6 | ) | 116.5 | |||||||||||||||||||||||
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Coverage ratio | 73.3 | % | 70.1 | % | 74.1 | % | 61.2 | % | 41.1 | % | 68.1 | % | 12.1 | % | 63.6 | % | ||||||||||||||||
Allowance ratio | 24.9 | % | 29.1 | % | 23.5 | % | 17.3 | % | 13.2 | % | 19.7 | % | 7.6 | % | 16.8 | % | ||||||||||||||||
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(*1) | Coverage ratio and allowance ratio are calculated by the formula shown below. |
Jun. 2011 (CMTB, STB) : | Coverage ratio = (Collateral value after considering haircuts + allowance for loan losses) / loan balance | |
Allowance ratio = Allowance for loan losses / (Loan balance - collateral value after considering haircuts) |
Mar. 2011 and Sep. 2010 (CMTB) : | Coverage ratio = (Collateral value after considering haircuts + allowance for loan losses) / loan balance | |
Allowance ratio = Allowance for loan losses / (Loan balance - collateral value after considering haircuts) |
Mar. 2011 and Sep. 2010 (STB) : | Coverage ratio = (Collateral value before considering haircuts + allowance for loan losses) / loan balance | |
Allowance ratio = Allowance for loan losses / (Loan balance - collateral value before considering haircuts) |
(*2) | Other than above mentioned, there are Reserves for loan trust and Reserves for JOMT (Jointly-operated money trust). |
7
Table of Contents
<Reference> Other referential financial figures
[Non-consolidated (CMTB + CMAB + STB)]
| Billions of Yen | |||||||||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||||||||||
CMTB | CMAB | STB | CMTB | CMAB | STB | |||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 1,205.9 | 334.4 | 24.1 | 847.3 | 1,080.1 | 471.8 | 27.4 | 580.8 | 125.7 | |||||||||||||||||||||||||||
Call loans | 53.0 | — | — | 53.0 | 15.3 | — | — | 15.3 | 37.6 | |||||||||||||||||||||||||||
Receivables under resale agreements | 54.3 | — | — | 54.3 | 33.2 | — | — | 33.2 | 21.0 | |||||||||||||||||||||||||||
Receivables under securities borrowing transactions | 1.0 | — | — | 1.0 | 9.3 | 9.3 | — | — | (8.3 | ) | ||||||||||||||||||||||||||
Monetary claims bought | 274.0 | 94.7 | — | 179.3 | 292.0 | 99.9 | — | 192.0 | (17.9 | ) | ||||||||||||||||||||||||||
Trading assets | 663.6 | 63.9 | — | 599.6 | 678.7 | 36.5 | — | 642.2 | (15.1 | ) | ||||||||||||||||||||||||||
Money held in trust | 22.1 | — | — | 22.1 | 22.2 | — | — | 22.2 | (0.0 | ) | ||||||||||||||||||||||||||
Securities | 8,564.6 | 3,846.5 | 60.2 | 4,657.8 | 8,721.5 | 3,682.3 | 89.1 | 4,950.0 | (156.9 | ) | ||||||||||||||||||||||||||
Loans and bills discounted | 20,089.7 | 8,224.7 | — | 11,865.0 | 21,015.2 | 8,861.5 | — | 12,153.6 | (925.5 | ) | ||||||||||||||||||||||||||
Foreign exchanges | 7.5 | 0.9 | — | 6.6 | 17.9 | 12.2 | — | 5.6 | (10.3 | ) | ||||||||||||||||||||||||||
Other assets | 1,160.5 | 304.2 | 22.9 | 833.3 | 1,416.7 | 355.4 | 29.8 | 1,031.4 | (256.1 | ) | ||||||||||||||||||||||||||
Tangible fixed assets | 215.6 | 97.3 | 0.3 | 117.8 | 214.1 | 98.3 | 0.3 | 115.3 | 1.4 | |||||||||||||||||||||||||||
Intangible fixed assets | 52.5 | 19.5 | 3.6 | 29.3 | 51.8 | 19.8 | 3.6 | 28.2 | 0.7 | |||||||||||||||||||||||||||
Deferred tax assets | 222.7 | 137.7 | 3.0 | 81.9 | 220.4 | 134.4 | 3.0 | 82.8 | 2.3 | |||||||||||||||||||||||||||
Customers’ liabilities for acceptances and guarantees | 441.1 | 51.8 | — | 389.3 | 385.8 | 49.6 | — | 336.1 | 55.3 | |||||||||||||||||||||||||||
Allowance for loan losses | (117.1 | ) | (40.7 | ) | — | (76.4 | ) | (127.8 | ) | (42.3 | ) | — | (85.5 | ) | 10.7 | |||||||||||||||||||||
Allowance for investment loss | (1.1 | ) | — | — | (1.1 | ) | (1.1 | ) | — | — | (1.1 | ) | — | |||||||||||||||||||||||
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Total assets | 32,910.4 | 13,135.3 | 114.3 | 19,660.6 | 34,045.8 | 13,789.4 | 153.6 | 20,102.7 | (1,135.3 | ) | ||||||||||||||||||||||||||
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Liabilities: | ||||||||||||||||||||||||||||||||||||
Deposits | 21,857.0 | 9,164.1 | 0.0 | 12,692.8 | 21,639.6 | 9,336.1 | 0.0 | 12,303.4 | 217.3 | |||||||||||||||||||||||||||
Negotiable certificates of deposit | 2,270.3 | 249.2 | — | 2,021.0 | 2,627.6 | 370.0 | — | 2,257.6 | (357.3 | ) | ||||||||||||||||||||||||||
Call money | 430.5 | 176.0 | 54.0 | 200.4 | 409.8 | 248.9 | 103.0 | 57.8 | 20.6 | |||||||||||||||||||||||||||
Payables under repurchase agreements | 370.8 | 30.3 | — | 340.4 | 620.8 | — | — | 620.8 | (249.9 | ) | ||||||||||||||||||||||||||
Collateral for lending securities | 1,031.7 | 1,031.7 | — | — | 1,320.4 | 1,161.6 | — | 158.7 | (288.6 | ) | ||||||||||||||||||||||||||
Trading liabilities | 132.4 | 7.2 | — | 125.1 | 110.4 | 7.7 | — | 102.7 | 21.9 | |||||||||||||||||||||||||||
Borrowed money | 1,393.3 | 446.7 | 13.8 | 932.7 | 1,764.7 | 678.9 | — | 1,085.7 | (371.3 | ) | ||||||||||||||||||||||||||
Foreign exchanges | 0.1 | — | — | 0.1 | 0.0 | — | — | 0.0 | 0.0 | |||||||||||||||||||||||||||
Short-term bonds payable | 278.2 | — | — | 278.2 | 325.7 | — | — | 325.7 | (47.4 | ) | ||||||||||||||||||||||||||
Corporate bonds | 720.3 | 265.4 | — | 454.9 | 702.1 | 267.2 | — | 434.9 | 18.1 | |||||||||||||||||||||||||||
Borrowed money from trust account | 1,168.0 | 754.1 | — | 413.8 | 1,233.3 | 801.6 | — | 431.7 | (65.3 | ) | ||||||||||||||||||||||||||
Other liabilities | 862.5 | 205.5 | 9.6 | 647.3 | 935.2 | 116.3 | 8.2 | 810.6 | (72.7 | ) | ||||||||||||||||||||||||||
Provision for bonuses | 1.3 | — | — | 1.3 | 6.8 | 2.0 | 0.3 | 4.4 | (5.5 | ) | ||||||||||||||||||||||||||
Provision for directors’ bonuses | — | — | — | — | 0.0 | — | — | 0.0 | (0.0 | ) | ||||||||||||||||||||||||||
Provision for retirement benefits | 0.2 | — | — | 0.2 | 0.2 | — | — | 0.2 | 0.0 | |||||||||||||||||||||||||||
Provision for reimbursement of deposits | 6.4 | 5.2 | — | 1.1 | 6.4 | 5.2 | — | 1.1 | — | |||||||||||||||||||||||||||
Provision for contingent loss | 18.2 | 7.4 | — | 10.8 | 18.4 | 7.1 | — | 11.2 | (0.1 | ) | ||||||||||||||||||||||||||
Provision for relocation expenses | 5.6 | — | — | 5.6 | 5.6 | — | — | 5.6 | — | |||||||||||||||||||||||||||
Deferred tax liabilities for land revaluation | 5.7 | — | — | 5.7 | 5.7 | — | — | 5.7 | — | |||||||||||||||||||||||||||
Acceptances and guarantees | 441.1 | 51.8 | — | 389.3 | 385.8 | 49.6 | — | 336.1 | 55.3 | |||||||||||||||||||||||||||
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Total liabilities | 30,994.3 | 12,395.3 | 77.5 | 18,521.5 | 32,119.3 | 13,052.8 | 111.7 | 18,954.7 | (1,124.9 | ) | ||||||||||||||||||||||||||
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Net assets: | ||||||||||||||||||||||||||||||||||||
Capital stock | 752.7 | 399.6 | 11.0 | 342.0 | 752.7 | 399.6 | 11.0 | 342.0 | — | |||||||||||||||||||||||||||
Capital surplus | 466.8 | 149.0 | 21.2 | 296.5 | 467.3 | 149.0 | 21.2 | 297.0 | (0.4 | ) | ||||||||||||||||||||||||||
Legal capital surplus | 412.8 | 149.0 | 21.2 | 242.5 | 412.8 | 149.0 | 21.2 | 242.5 | — | |||||||||||||||||||||||||||
Other capital surplus | 54.0 | — | — | 54.0 | 54.4 | — | — | 54.4 | (0.4 | ) | ||||||||||||||||||||||||||
Retained earnings | 724.4 | 215.0 | 4.6 | 504.7 | 719.9 | 211.5 | 9.6 | 498.7 | 4.5 | |||||||||||||||||||||||||||
Legal retained earnings | 105.5 | 49.5 | — | 56.0 | 100.8 | 47.9 | — | 52.9 | 4.7 | |||||||||||||||||||||||||||
Other retained earnings | 618.8 | 165.5 | 4.6 | 448.6 | 619.0 | 163.6 | 9.6 | 445.7 | (0.2 | ) | ||||||||||||||||||||||||||
Reserve for overseas investment loss | 0.0 | — | — | 0.0 | 0.0 | — | — | 0.0 | (0.0 | ) | ||||||||||||||||||||||||||
Other voluntary reserve | 371.8 | — | — | 371.8 | 371.8 | — | — | 371.8 | — | |||||||||||||||||||||||||||
Retained earnings brought forward | 247.0 | 165.5 | 4.6 | 76.7 | 247.2 | 163.6 | 9.6 | 73.9 | (0.2 | ) | ||||||||||||||||||||||||||
Treasury stock | — | — | — | — | (0.4 | ) | — | — | (0.4 | ) | 0.4 | |||||||||||||||||||||||||
Shareholders’ equity | 1,944.0 | 763.7 | 36.8 | 1,143.3 | 1,939.4 | 760.2 | 41.8 | 1,137.3 | 4.5 | |||||||||||||||||||||||||||
Valuation difference on available-for-sale securities | (14.8 | ) | (9.9 | ) | (0.0 | ) | (4.8 | ) | (4.3 | ) | (9.2 | ) | (0.0 | ) | 4.8 | (10.4 | ) | |||||||||||||||||||
Deferred gains or losses on hedges | 8.1 | 2.7 | — | 5.3 | 12.6 | 2.1 | — | 10.4 | (4.5 | ) | ||||||||||||||||||||||||||
Revaluation reserve for land | (21.2 | ) | (16.5 | ) | — | (4.7 | ) | (21.2 | ) | (16.5 | ) | — | (4.7 | ) | 0.0 | |||||||||||||||||||||
Valuation and translation adjustments | (27.9 | ) | (23.7 | ) | (0.0 | ) | (4.2 | ) | (13.0 | ) | (23.6 | ) | (0.0 | ) | 10.6 | (14.9 | ) | |||||||||||||||||||
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Total net assets | 1,916.0 | 740.0 | 36.8 | 1,139.1 | 1,926.4 | 736.6 | 41.8 | 1,147.9 | (10.3 | ) | ||||||||||||||||||||||||||
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Total liabilities and net assets | 32,910.4 | 13,135.3 | 114.3 | 19,660.6 | 34,045.8 | 13,789.4 | 153.6 | 20,102.7 | (1,135.3 | ) | ||||||||||||||||||||||||||
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8
Table of Contents
Sumitomo Mitsui Trust Holdings, Inc.
[Non-consolidated (CMTB + CMAB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||||||||||
1QFY2011 | 1QFY2010 | Change from 1QFY2010 | ||||||||||||||||||||||||||||||||||
Items | CMTB | CMAB | STB | CMTB | CMAB | STB | ||||||||||||||||||||||||||||||
Ordinary income | 186.2 | 70.9 | 10.3 | 104.8 | 195.3 | 77.0 | 10.5 | 107.7 | (9.1 | ) | ||||||||||||||||||||||||||
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Trust fees | 23.4 | 2.9 | 8.4 | 12.0 | 22.1 | 1.5 | 8.6 | 12.0 | 1.3 | |||||||||||||||||||||||||||
Interest income | 97.7 | 41.4 | 0.0 | 56.2 | 97.3 | 40.5 | 0.0 | 56.8 | 0.3 | |||||||||||||||||||||||||||
Interest on loans and discounts | 61.6 | 25.0 | — | 36.6 | 66.3 | 27.4 | — | 38.8 | (4.6 | ) | ||||||||||||||||||||||||||
Interest on securities | 31.6 | 15.1 | 0.0 | 16.4 | 26.3 | 11.7 | 0.0 | 14.6 | 5.2 | |||||||||||||||||||||||||||
Fees and commissions | 32.4 | 15.6 | 1.8 | 14.9 | 33.6 | 15.9 | 1.8 | 15.7 | (1.1 | ) | ||||||||||||||||||||||||||
Trading income | 1.3 | 0.9 | — | 0.3 | 0.5 | 0.3 | — | 0.2 | 0.7 | |||||||||||||||||||||||||||
Other ordinary income | 19.4 | 8.5 | — | 10.9 | 34.2 | 15.3 | — | 18.9 | (14.8 | ) | ||||||||||||||||||||||||||
Other income | 11.8 | 1.4 | 0.0 | 10.3 | 7.3 | 3.3 | 0.0 | 3.9 | 4.4 | |||||||||||||||||||||||||||
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Ordinary expenses | 142.0 | 62.3 | 7.6 | 72.0 | 139.0 | 53.2 | 7.4 | 78.3 | 2.9 | |||||||||||||||||||||||||||
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Interest expenses | 36.0 | 14.0 | 0.0 | 21.9 | 38.4 | 15.6 | 0.0 | 22.8 | (2.4 | ) | ||||||||||||||||||||||||||
Interest on deposits | 22.2 | 9.4 | — | 12.7 | 24.6 | 10.6 | — | 14.0 | (2.4 | ) | ||||||||||||||||||||||||||
Fees and commissions payments | 15.5 | 3.9 | 2.8 | 8.8 | 15.4 | 3.9 | 2.8 | 8.6 | 0.1 | |||||||||||||||||||||||||||
Trading expenses | 0.2 | — | — | 0.2 | 0.3 | 0.2 | — | 0.1 | (0.1 | ) | ||||||||||||||||||||||||||
Other ordinary expenses | 5.4 | 1.9 | — | 3.5 | 8.7 | 2.3 | — | 6.3 | (3.3 | ) | ||||||||||||||||||||||||||
General and administrative expenses | 66.8 | 27.5 | 4.7 | 34.6 | 66.4 | 27.0 | 4.5 | 34.8 | 0.4 | |||||||||||||||||||||||||||
Other expenses | 17.8 | 14.9 | 0.0 | 2.8 | 9.5 | 4.0 | 0.0 | 5.5 | 8.2 | |||||||||||||||||||||||||||
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Ordinary profit | 44.1 | 8.5 | 2.7 | 32.8 | 56.2 | 23.8 | 3.1 | 29.3 | (12.1 | ) | ||||||||||||||||||||||||||
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Extraordinary income | — | — | — | — | 6.8 | 2.2 | — | 4.6 | (6.8 | ) | ||||||||||||||||||||||||||
Extraordinary loss | 1.1 | 0.6 | 0.1 | 0.3 | 1.0 | 0.2 | 0.0 | 0.6 | 0.1 | |||||||||||||||||||||||||||
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Income before Income Taxes | 43.0 | 7.8 | 2.6 | 32.4 | 62.1 | 25.7 | 3.0 | 33.3 | (19.1 | ) | ||||||||||||||||||||||||||
Income taxes-Current | 0.7 | 0.0 | 1.0 | (0.3 | ) | 9.6 | 0.0 | 1.1 | 8.4 | (8.8 | ) | |||||||||||||||||||||||||
Income taxes-Deferred | 7.3 | (3.7 | ) | 0.0 | 11.0 | 7.6 | 5.7 | 0.1 | 1.7 | (0.2 | ) | |||||||||||||||||||||||||
Income taxes | 8.1 | (3.6 | ) | 1.0 | 10.7 | 17.2 | 5.7 | 1.2 | 10.2 | (9.1 | ) | |||||||||||||||||||||||||
Net income | 34.8 | 11.5 | 1.5 | 21.7 | 44.9 | 20.0 | 1.8 | 23.0 | (10.0 | ) | ||||||||||||||||||||||||||
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[Non-consolidated (CMTB + CMAB + STB)]
Items | Billions of Yen | |||||||||||||||||||||||||||||||||||
June. 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||||||||||
CMTB | CMAB | STB | CMTB | CMAB | STB | |||||||||||||||||||||||||||||||
Loans and bills discounted | 560.8 | 222.6 | — | 338.2 | 565.0 | 231.8 | — | 333.2 | (4.2 | ) | ||||||||||||||||||||||||||
Securities | 716.3 | 3.1 | 77.1 | 636.0 | 713.1 | 3.3 | 77.1 | 632.6 | 3.2 | |||||||||||||||||||||||||||
Beneficiary rights | 97,072.0 | 0.0 | 30,085.9 | 66,986.0 | 95,836.2 | 0.0 | 30,598.4 | 65,237.7 | 1,235.7 | |||||||||||||||||||||||||||
Securities held in custody accounts | 265.5 | 0.1 | — | 265.4 | 304.5 | 0.1 | — | 304.4 | (39.0 | ) | ||||||||||||||||||||||||||
Money claims | 9,833.8 | 0.2 | 1,375.9 | 8,457.7 | 10,245.3 | 0.2 | 1,416.8 | 8,828.3 | (411.5 | ) | ||||||||||||||||||||||||||
Tangible fixed assets | 9,376.7 | 4,996.7 | — | 4,380.0 | 9,419.0 | 5,029.7 | — | 4,389.2 | (42.3 | ) | ||||||||||||||||||||||||||
Intangible fixed assets | 67.5 | 31.0 | — | 36.5 | 68.3 | 31.0 | — | 37.2 | (0.7 | ) | ||||||||||||||||||||||||||
Other claims | 1,806.8 | 35.2 | — | 1,771.6 | 1,756.3 | 37.0 | — | 1,719.3 | 50.5 | |||||||||||||||||||||||||||
Call loans | 13.8 | — | — | 13.8 | 42.3 | — | — | 42.3 | (28.5 | ) | ||||||||||||||||||||||||||
Loans to banking account | 1,168.0 | 754.1 | — | 413.8 | 1,233.3 | 801.6 | — | 431.7 | (65.3 | ) | ||||||||||||||||||||||||||
Cash and due from banks | 409.2 | 182.6 | 18.0 | 208.5 | 428.6 | 185.9 | 18.5 | 224.1 | (19.3 | ) | ||||||||||||||||||||||||||
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Total assets | 121,290.9 | 6,226.0 | 31,557.1 | 83,507.8 | 120,612.5 | 6,321.0 | 32,111.0 | 82,180.4 | 678.4 | |||||||||||||||||||||||||||
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Money trusts | 21,748.4 | 741.1 | 8,160.6 | 12,846.6 | 22,032.9 | 777.6 | 8,305.0 | 12,950.3 | (284.5 | ) | ||||||||||||||||||||||||||
Pension trusts | 12,710.4 | — | 6,560.3 | 6,150.1 | 13,254.9 | — | 6,995.5 | 6,259.4 | (544.4 | ) | ||||||||||||||||||||||||||
Property formation benefit trusts | 22.6 | 13.4 | — | 9.1 | 22.1 | 13.3 | — | 8.7 | 0.4 | |||||||||||||||||||||||||||
Loan trusts | 219.5 | 207.0 | — | 12.5 | 248.2 | 228.2 | — | 19.9 | (28.7 | ) | ||||||||||||||||||||||||||
Securities investment trusts | 38,479.0 | — | 12,561.2 | 25,917.7 | 37,776.4 | — | 12,494.5 | 25,281.9 | 702.5 | |||||||||||||||||||||||||||
Money entrusted, other than money trusts | 2,593.6 | 0.2 | 318.8 | 2,274.5 | 2,553.3 | 0.2 | 339.2 | 2,213.9 | 40.2 | |||||||||||||||||||||||||||
Securities trusts | 19,737.2 | 0.1 | 1,401.3 | 18,335.7 | 18,550.6 | 0.1 | 1,385.4 | 17,165.1 | 1,186.5 | |||||||||||||||||||||||||||
Money claim trusts | 9,875.7 | 1.0 | 1,393.5 | 8,481.1 | 10,288.9 | 1.0 | 1,434.8 | 8,852.9 | (413.1 | ) | ||||||||||||||||||||||||||
Land and fixtures trusts | 118.5 | 76.5 | — | 42.0 | 118.1 | 76.2 | — | 41.9 | 0.4 | |||||||||||||||||||||||||||
Composite trusts | 15,785.5 | 5,186.4 | 1,161.0 | 9,438.0 | 15,766.4 | 5,224.0 | 1,156.3 | 9,386.0 | 19.0 | |||||||||||||||||||||||||||
Other trusts | 0.0 | 0.0 | — | 0.0 | 0.0 | 0.0 | — | 0.0 | — | |||||||||||||||||||||||||||
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Total liabilities | 121,290.9 | 6,226.0 | 31,557.1 | 83,507.8 | 120,612.5 | 6,321.0 | 32,111.0 | 82,180.4 | 678.4 | |||||||||||||||||||||||||||
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(*) | The amount of retrusted assets to Japan Trustee Services Bank, Ltd. as a securities processing is included in Beneficiary rights: |
Jun. 2011: CMAB 30,073.1 billion yen, STB 66,948.7 billion yen
Mar. 2011: CMAB 30,583.8 billion yen, STB 65,200.9 billion yen
9
Table of Contents
Sumitomo Mitsui Trust Holdings, Inc.
4) Breakdown of principal guaranteed trust a/c
[Non-consolidated (CMTB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||
June 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||
CMTB | STB | CMTB | STB | |||||||||||||||||||||||||
Money trusts | ||||||||||||||||||||||||||||
Loans and bills discounted | 393.7 | 218.6 | 175.0 | 401.9 | 222.7 | 179.2 | (8.2 | ) | ||||||||||||||||||||
Securities | 0.0 | — | 0.0 | 0.0 | — | 0.0 | — | |||||||||||||||||||||
Others | 970.1 | 616.7 | 353.4 | 1,041.2 | 660.7 | 380.5 | (71.1 | ) | ||||||||||||||||||||
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Total assets | 1,363.8 | 835.3 | 528.5 | 1,443.3 | 883.4 | 559.8 | (79.4 | ) | ||||||||||||||||||||
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Principal | 1,360.3 | 834.6 | 525.6 | 1,442.1 | 883.4 | 558.7 | (81.8 | ) | ||||||||||||||||||||
Reserves for JOMT (Jointly-operated money trust) | 0.3 | 0.0 | 0.2 | 0.3 | 0.0 | 0.2 | — | |||||||||||||||||||||
Others | 3.2 | 0.6 | 2.5 | 0.8 | (0.0 | ) | 0.8 | 2.4 | ||||||||||||||||||||
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Total liabilities | 1,363.8 | 835.3 | 528.5 | 1,443.3 | 883.4 | 559.8 | (79.4 | ) | ||||||||||||||||||||
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Loan trusts | ||||||||||||||||||||||||||||
Loans and bills discounted | — | — | — | — | — | — | — | |||||||||||||||||||||
Securities | 0.4 | 0.4 | — | 0.4 | 0.4 | — | (0.0 | ) | ||||||||||||||||||||
Others | 220.4 | 207.8 | 12.5 | 249.1 | 229.1 | 19.9 | (28.7 | ) | ||||||||||||||||||||
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Total assets | 220.8 | 208.3 | 12.5 | 249.5 | 229.6 | 19.9 | (28.7 | ) | ||||||||||||||||||||
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Principal | 217.9 | 205.6 | 12.2 | 246.0 | 226.4 | 19.6 | (28.1 | ) | ||||||||||||||||||||
Reserves for loan trust | 1.3 | 1.2 | 0.1 | 1.5 | 1.3 | 0.2 | (0.1 | ) | ||||||||||||||||||||
Others | 1.5 | 1.4 | 0.1 | 1.9 | 1.7 | 0.1 | (0.3 | ) | ||||||||||||||||||||
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Total liabilities | 220.8 | 208.3 | 12.5 | 249.5 | 229.6 | 19.9 | (28.7 | ) | ||||||||||||||||||||
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10
Table of Contents
Cautionary Statement Regarding Forward-Looking Statements
This material contains forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995) regarding our intent, belief or current expectations in respect to our future financial conditions, operating results and overall management. These forward-looking statements may be identified by words such as “believes”, “expects”, “anticipates”, “projects”, “intends”, “should”, “seeks”, “estimates”, “future”, or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. Such forward-looking statements are not guarantees of future performance and actual results may differ, owing to risks and uncertainties, including without limitation: (1) potential difficulties in integrating the management and business operations of our subsidiaries; (2) our ability to successfully execute our group business strategies; and (3) unanticipated events that result in an increase in our credit costs and a deterioration in the quality of our group companies’ loan portfolios. Given such risks and uncertainties, you should not place undue reliance on forward-looking statements, which speak only as of the release date of this material. We undertake no obligation to update or revise any forward-looking statements. In addition to this material, please refer to our most recently disclosed documents, such as our Form F-4 registration statement filed with the U.S. Securities and Exchange Commission, or press releases we have issued, for a more detailed description of matters that may affect our financial condition and operating results.
11
Table of Contents
Sumitomo Mitsui Trust Holdings, Inc.
IR Material for 1QFY2011
August 4, 2011
Table of Contents
This presentation material contains information that constitutes forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors including changes in managerial circumstances. This presentation does not constitute an offer to sell or a solicitation of an offer to subscribe for or purchase any securities.
Definitions of terms in this document
Consolidated two-company total: Former Chuo Mitsui Trust Holdings (Consolidated) + Sumitomo Trust and Banking (Consolidated)
Non-consolidated (Three-company total): Chuo Mitsui Trust and Banking (Non-consolidated) + Chuo Mitsui Asset Trust and Banking (Non-consolidated) + Sumitomo Trust and Banking (Non-consolidated)
Non-consolidated (Two-company total): Chuo Mitsui Trust and Banking (Non-consolidated) + Sumitomo Trust and Banking
(Non-consolidated) CMTB+CMAB (Non-consolidated): Chuo Mitsui Trust and Banking (Non-consolidated) + Chuo Mitsui Asset Trust and Banking (Non-consolidated)
Accounting for Business combination related to Management Integration
Applying accounting method for business combination: “Purchase accounting method”, and its amount of effect: “Results of applying purchase accounting method”
Table of Contents
1QFY2011 financial results: Consolidated
Net business profit before credit costs decreased by 7.4 billion yen from 1QFY2010 to 70.6 billion yen, mainly due to the decrease on a non-consolidated (three-company total) basis.
Total credit costs improved by 3.1 billion yen from 1QFY2010 to the reversal of 6.4 billion yen, mainly due to the posting of reversal of allowance for loan losses in relevant subsidiaries, in addition to the improvement in trust bank subsidiaries (non-consolidated).
Net income increased by 46.2 billion yen from 1QFY2010 to 89.6 billion yen, due to the posting of 43.4 billion yen of amortization of negative goodwill caused by share exchange, in addition to the factors explained above. (Please refer to page 10 for details of effect of purchase accounting method including amortization of negative goodwill caused by share exchange.)
Consolidated
two-company total SMTH (Reference)
1QFY2010 1QFY2011 Forecast for FY2011
(Billions of yen) Change 1H Full
Net business profit before credit costs 78.0 70.6 (7.4) 135.0 295.0
(Contribution of group companies before consolidated adjustments) 12.9 13.4 0.5
Gross business profit 160.4 163.5 3.1
General and administrative expenses (85.0) (93.5) (8.4)
Net non-recurring profit etc. (7.5) 1.8 9.4
Net gains on stocks 0.3 (0.8) (1.1)
Ordinary profit 67.8 71.9 4.1 100.0 215.0
Extraordinary profit 2.7 43.0 40.3
Amortization of negative goodwill related to share exchange - 43.4 43.4
Income before income taxes 70.5 115.0 44.4
Total income taxes (22.0) (19.4) 2.5
Net income 43.3 89.6 46.2 90.0 150.0
(excl. amortization of negative goodwill related to share exchange) 43.3 46.2 2.8 50.0 110.0
Total credit costs 3.2 6.4 3.1 (20.0) (40.0)
(Difference from non-consolidated three-company total credit costs) (1.4) 1.2 2.6 (5.0) (10.0)
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1QFY2011 financial results: Non-consolidated (Three-company total)
Net business profit before credit costs decreased by 9.1 billion yen from 1QFY2010 to 56.2 billion yen, mainly due to the decrease in net other operating profit centering on net gains on bonds, while net interest income and related profit increased.
Total credit costs improved by 0.4 billion yen from 1QFY2010 to the reversal of 5.2 billion yen, resulting from decreased balance of non-performing loans, in addition to one-time effect related to management integration.
Net income decreased by 10.0 billion yen from 1QFY2010 to 34.8 billion yen, due to the worsening of net gains on stocks resulting from the devaluation loss on some stocks, in addition to the factors explained above.
Non-consolidated CMTB + CMAB STB (Reference)
(Three-company total) (Non-consolidated) (Non-consolidated) Forecast for FY2011
(Billions of yen) 1QFY2010 1QFY2011 Change 1QFY2011 Change 1QFY2011 Change 1H Full
Net business profit before credit costs 65.3 56.2 (9.1) 28.1 (2.9) 28.0 (6.2) 110.0 235.0
Gross business profit 125.0 117.1 (7.8) 57.1 (2.1) 60.0 (5.7) 232.0 480.0
Net interest income and related profit 60.6 64.7 4.0 29.6 4.0 35.1 0.0
Net fees and commisssions 38.6 37.3 (1.2) 19.9 (0.6) 17.3 (0.6)
and related profit
Net trading profit 0.2 1.0 0.8 0.9 0.8 0.0 0.0
Net other operating profit 25.5 14.0 (11.5) 6.5 (6.3) 7.4 (5.1)
Net gains on bonds 26.4 14.6 (11.8) 6.5 (7.2) 8.1 (4.5)
General and administrative expenses (59.6) (60.8) (1.2) (28.9) (0.7) (31.9) (0.4) (122.0) (245.0)
Net non-recurring profit, etc. (9.0) (12.0) (3.0) (16.8) (12.7) 4.7 9.7
Reversal of allowance for loan losses - 8.9 8.9 - - 8.9 8.9
Net gains on stocks 0.1 (9.2) (9.3) (8.1) (9.6) (1.0) 0.2
Amortization of
unrecognized net actuarial loss (6.5) (5.8) 0.6 (3.3) 0.0 (2.5) 0.6
Ordinary profit 56.2 44.1 (12.1) 11.3 (15.6) 32.8 3.5 80.0 175.0
Extraordinary profit 5.8 (1.1) (7.0) (0.7) (2.6) (0.3) (4.3)
Reversal of allowance for loan losses 5.0 - (5.0) - (1.8) - (3.1)
Costs related to the Management Integration (0.1) (0.9) (0.8) (0.6) (0.5) (0.2) (0.2)
Net income 44.9 34.8 (10.0) 13.1 (8.7) 21.7 (1.2) 45.0 100.0
Total credit costs 4.7 5.2 0.4 (3.5) (5.5) 8.7 6.0 (15.0) (30.0)
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Contribution of major group companies to consolidated financial results
Contribution to net business profit before credit costs increased by 0.9 billion yen from 1QFY2010 to 13.4 billion yen, due to steadily increasing contribution from Nikko Asset Management and SBI Sumishin Net Bank, etc.
Contribution to net income increased by 2.9 billion yen over the same period to 9.7 billion yen, resulting from the posting of reversal of allowance for loan losses in Chuo Mitsui Guarantee, etc., in addition to the factors mentioned above.
Net business profit before credit costs Net income Goodwill as of June 2011(*2)
1QFY2010 1QFY2011 1QFY2010 1QFY2011 Amortization Outstanding
(Billions of yen) Change Change amount balance
Consolidated difference 12.6 14.3 1.7 (1.5) 11.3 12.8 (2.4) 127.1
Contribution (before consolidated adjustments)(*1) 12.5 13.4 0.9 6.7 9.7 2.9 - -
STB Asset Management Co., Ltd. 0.1 0.1 0.0 0.1 0.1 0.0 - -
Chuo Mitsui Asset Management Company, Limited. 0.1 0.0 (0.0) 0.1 0.0 (0.1) - -
Nikko Asset Management Co., Ltd. (Consolidated) 1.6 2.3 0.7 0.8 1.4 0.6 (1.3) 73.0
Japan Trustee Services Bank Ltd. 0.3 0.1 (0.2) 0.2 0.0 (0.1) - -
Sumitomo Trust & Banking Co. (U.S.A.) 0.2 0.4 0.1 0.1 0.2 0.0 - -
Tokyo Securities Transfer Agent Co., Ltd. 0.2 0.2 0.0 0.1 0.2 0.1 - -
Sumishin Realty Company Limited 0.2 0.2 0.0 0.1 0.1 0.0 - -
Sumishin Panasonic Financial Services Co., Ltd. (Consolidated) 4.5 4.2 (0.2) 3.1 2.5 (0.6) (0.0) 0.8
Sumishin Real Estate Loan & Finance, Ltd. 1.1 1.1 0.0 0.6 1.2 0.5 (0.9) 52.8
SBI Sumishin Net Bank, Ltd. (Consolidated) 0.3 0.5 0.2 0.3 0.6 0.3 - -
Chuo Mitsui Guarantee Co., Ltd. 1.3 1.2 (0.0) 0.2 1.6 1.3 - -
Sumishin Guarantee Company Limited 0.7 0.8 0.1 0.2 0.5 0.2 - -
(*1) Exclude the amount of consolidation adjustments such as performance of holding company alone, elimination of dividend and amortization of goodwill, etc.
(*2) Outstanding balance of goodwill related to former Chuo Mitsui Trust Group (33.0 billion yen) was reset as a result of purchase accounting method.
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Breakdown of profits by business
Gross business profit (non-consolidated) reached approximately 50% of forecast for 1HFY2011 (232.0 billion yen), though it decreased by 7.8 billion yen from 1QFY2010 to 117.1 billion yen.
Treasury and financial products business made a good start by making use of the lowering interest rate trend, while real estate business stayed at low level due to stagnant market environment.
Gross business profit CMTB + CMAB STB (Reference)
(Non-consolidated three-company total) (Non-consolidated) (Non-consolidated) Forecast for FY2011
(Billions of yen) 1QFY2010 1QFY2011 Change 1QFY2011 Change 1QFY2011 Change 1H Full
Retail financial services 38.4 35.5 (2.9) 19.1 0.0 16.3 (3.0) 70.0 144.0
Wholesale financial services 37.5 35.1 (2.4) 15.4 (0.2) 19.7 (2.1) 77.0 155.0
Stock transfer agency services 10.2 10.2 0.0 6.2 (0.0) 3.9 0.0 16.0 32.0
Treasury and financial products 37.2 30.7 (6.4) 13.2 (6.3) 17.4 (0.1) 46.0 93.0
Fiduciary services 21.2 21.6 0.4 9.8 (0.1) 11.7 0.5 44.0 92.0
Real estate 5.1 3.1 (2.0) 1.4 (1.1) 1.6 (0.8) 16.0 38.0
Others (4.4) 1.3 5.7 2.3 5.7 (0.9) 0.0
Fees paid out for outsourcing (10.1) (10.3) (0.2) (4.3) (0.0) (5.9) (0.1)
Stock transfer agency services (4.1) (4.2) (0.0) (2.1) (0.0) (2.0) (0.0)
Fiduciary services (5.9) (6.1) (0.1) (2.2) (0.0) (3.9) (0.1)
Total 125.0 117.1 (7.8) 57.1 (2.1) 60.0 (5.7) 232.0 480.0
Net business profit before credit costs Net business profit before credit costs (*1) Figures of Chuo Mitsui are
(Non-consolidated three-company total) (Consolidated) tentative calculations based on certain
(Billions of yen) 1QFY2010 1QFY2011 Change 1QFY2010 1QFY2011 Change assumptions (transfer price, etc.)
Retail financial services 7.5 4.6 (2.8) 9.7 6.9 (2.8) under managerial accounting.
(*2) Figures for “Other” includes cost
Wholesale financial services 24.6 22.0 (2.5) 31.5 29.4 (2.1) of capital funding, dividend of shares
Stock transfer agency services 5.2 5.1 (0.0) 5.2 5.5 0.2 for cross-shareholdings, general and
Treasury and financial products 34.4 27.6 (6.7) 34.4 27.6 (6.7) administrative expenses of
Fiduciary services 7.9 7.8 (0.1) 10.2 11.0 0.8 headquarters, etc.
(*3) Figures of consolidated net
Real estate 2.5 0.5 (1.9) 2.7 0.8 (1.8) business profit before credit costs in
Others (11.6) (6.5) 5.1 (10.7) (5.3) 5.3 1QFY2010 are consolidated two-
Total 65.3 56.2 (9.1) 78.0 70.6 (7.4) company total.
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Breakdown of net interest income (Non-consolidated two-company total)
Loan-deposit margin of 1QFY2011 declined by 6bp from 1QFY2010 to 0.82%, against a backdrop of lowering market interest rates.
Net interest income and related profit increased by 2.7 billion yen over the same period, because the improvement in securities income exceeded the effect of declining loan-deposit margin.
<Loan-deposit margin (Domestic banking a/c)>
1QFY2010 1QFY2011 (Reference)
Change 1HFY2010 2HFY2010
Loans and bills discounted 1.35% 1.22% (0.13%) 1.34% 1.28%
Deposits 0.47% 0.40% (0.07%) 0.46% 0.43%
Loan-deposit margin 0.88% 0.82% (0.06%) 0.88% 0.85%
Average yield on Loans and bills discounted Average yield on Deposits Loan-deposit margin
(%) 2.0 1.5 1.0 0.5 0.0
FY09 FY09 FY10 FY10 FY11
1H 2H 1H 2H 1Q
<Breakdown of net interest income and related profit (Banking a/c)>
1QFY2010 1QFY2011 Change
Average Income/ Average Income/ Average Income/
(Average balance: Trillions of yen) Yield Yield Yield
(Income/Expence: Billions of yen) balance Expence balance Expence balance Expence
Net interest income and related profit 58.9 61.6 2.7
Domesitc 0.73% 49.2 0.77% 52.0 0.04% 2.7
Interest-earning assets 26.94 1.20% 80.6 26.75 1.20% 80.4 (0.19) 0.00% (0.1)
Loans and bills discounted (1) 18.03 1.35% 60.9 18.13 1.22% 55.3 0.10 (0.13%) (5.5)
Securities 5.90 0.85% 12.6 5.96 1.23% 18.4 0.05 0.38% 5.7
Interest-bearing liabilities 26.58 0.47% 31.3 26.41 0.43% 28.4 (0.16) (0.04%) (2.9)
Deposits (2) 19.70 0.47% 23.5 20.58 0.40% 20.7 0.88 (0.07%) (2.7)
International business 0.93% 9.6 0.97% 9.6 0.04% (0.0)
Loan-deposit margin (1) - (2) 0.88% 37.3 0.82% 34.5 (0.06%) (2.7)
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Status of prioritized Strategic Areas (1)
Investment trust and insurance sales considerably increased, centering on high-yield and distributable type investment trust. Fund wrap and SMA, which are strategic products for high-net worth individuals, also increased steadily.
Execution amount of individual loans grew by approximately 50% from 1QFY2010, as a result of actively promoting residential mortgage loans.
Credit to overseas Japanese borrowers steadily grew centering on loans to corporations and the balance exceeded 1.5 trillion yen.
Investment trust and insurance sales business
1QFY2010 1QFY2011
(Billions of yen) Change
Profit total 10.1 11.5 1.4
Sales fees of investment trust 3.6 5.6 1.9
Sales fees of insurance 2.4 2.0 (0.4)
Others 4.0 3.9 (0.1)
(management and administration)
1QFY2010 1QFY2011
(Billions of yen) Change
Sales volume total 265.8 361.9 96.1
Investment trust 179.1 277.4 98.3
Fund wrap, SMA 9.7 15.4 5.7
Insurance 76.9 68.9 (7.9)
Mar. 2011 June 2011
(Billions of yen) Change
Balance total 4,330.2 4,380.4 50.2
Investment trust 2,189.5 2,198.4 8.9
Fund wrap, SMA 100.3 111.3 11.0
Insurance 2,040.3 2,070.6 30.2
(Note) Figures for Mar. 2011 was revised due to the change of standard.
Individual loans business
1QFY2010 1QFY2011
(Billions of yen) Change
Execution amount 129.2 190.4 61.1
Residential mortgage loans 125.0 187.7 62.6
Mar. 2011 June 2011
(Billions of yen) Actual Actual Change
Balance 5,946.1 5,995.4 49.3
Residential mortgage loans 5,381.4 5,450.4 68.9
Credit to overseas Japanese borrowers
Mar. 2011 June 2011
(Billions of yen) Actual Actual Change
Balance 1,472.9 1,506.0 33.1
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Status of prioritized Strategic Areas (2)
Assets under management (AUM) of trust banks (Non-consolidated) decreased, mainly due to the decline in discretionary investment management amount resulting from payment of pension benefits in public pensions, while AUM of subsidiaries increased centering on Nikko Asset Management.
Assets under custody (AUC) of global custody business steadily increased, while AUC of domestic custody business maintained the same level as that of the end of FY2010.
Real estate related profit decreased by 2.0 billion yen from 1QFY2010 to 5.9 billion yen, mainly due to the stagnant brokerage transaction resulting from the effects of earthquake.
Fiduciary services business Real estate business <Assets under management (AUM)> <Results>
Mar. 2011 June 2011 1QFY2010 1QFY2011
(Trillions of yen) Actual Actual Change (Billions of yen) Change
Assets under management (AUM) 65.7 65.0 (0.6) Real estate related profit 8.0 5.9 (2.0)
Trust banks (Non-consolidated) 49.0 48.1 (0.9) Real estate brokerage fees 5.7 3.9 (1.7)
CMAB 24.4 23.8 (0.6) CMTB 1.7 0.7 (0.9)
STB 24.6 24.2 (0.3) STB 1.4 0.6 (0.8)
Subsidiaries 16.6 16.9 0.2 Subsidiaries 2.5 2.5 0.0
STB Asset Management 1.4 1.4 (0.0) Real estate trust fees, etc. 1.9 1.6 (0.3)
Chuo Mitsui Asset Management 2.3 2.3 0.0 Others 0.3 0.3 (0.0)
Nikko Asset Management 12.8 13.1 0.2
<Assets under custody (AUC)>
Mar. 2011 June 2011 (Trillions of yen)
(Billions of USD) Actual Actual Change Domestic custody business (JTSB) 184 183 (0) Global custody business (STBUSA) 209 212 2
<Asset management and administration>
Mar. 2011 June 2011
(Billions of yen) Actual Actual Change
Balance of securitized real estate 9,466.1 9,418.3 (47.8)
Balance of real estate asset management 280.9 274.2 (6.6)
(Note) Figures for Mar. 2011 was revised due to the change of standard.
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Breakdown of total credit costs and problem assets based on the Financial Reconstruction Act
Total credit costs of both Non-consolidated (Two-company total) and subsidiaries are reversal mainly due to the reversal resulting from the unification of calculating method of reserves based on the management integration and upgrades in classification or decline in the loan balance of debtors which were classified as special mention category or below, despite the posting of allowance for loan losses against disposal of housing loan company (Jusen).
The total balance of problem assets based on the Financial Reconstruction Act as of the end of June 2011 increased by 4.6 billion yen from the end of March 2011 to 249.8 billion yen, and the ratio to total loan balance maintained a low level of 1.2%. Coverage ratios stood at 90.7% for doubtful loans and 73.3% for substandard loans, respectively, both of which are sufficient levels.
FY2010 FY2011
<Total credit costs> Major factors (1QFY2011)
(Billions of yen) 1H 2H 1Q
Total credit costs (Non-consolidated two-company total) 11.0 (18.4) 5.2
General allowance for loan losses 10.7 (7.8) 14.3 Downgrade of debtors: Approx. -2.0
Decrease in loan balance: Approx. +4.5, upgrade of debtors: Approx. +2.5
Specific allowance for loan losses 1.0 (1.0) (8.8) Allowance for housing loan companies: Approx. -8.5, Effects from
Losses on sales of claims, written-off (2.5) (15.0) (0.5) standardization of calculating method of reserves: Approx. +8.5, etc.
Total credit costs (Group companies) (8.5) (8.2) 1.2
Total 2.4 (26.7) 6.4
<Problem assets based on the Financial Reconstruction Act
(Non-consolidated two-company total)> Mar. 2011 June 2011 Coverage Allowance
Collateral/Allowance
(Billions of yen) Actual Actual Change ratio (*1) ratio (*2)
Problem assets based on the Financial Reconstruction Act 245.3 249.8 4.6
(Ratio to total loan balance) 1.1% 1.2% 0.1% 85.6% 53.4%
Total 35.0
Loans in bankrupt and practically bankrupt 41.3 35.0 (6.3) Collateral value 21.7 100.0% 100.0%
Specific allowance for loan losses 13.3
Total 111.7
Doubtful loans 93.7 123.1 29.4 Collateral value 92.0 90.7% 63.3%
Specific allowance for loan losses 19.7
Total 67.3
Substandard loans 110.3 91.7 (18.6) Collateral value 59.2 73.3% 24.9%
General allowance for loan losses 8.1
(Reference) Loans to other special mention debtors 739.4 597.6 (141.9) (*1) (Collateral value without considering haircuts + allowance for loan losses) / Loan balance
Total loan balance 22,073.2 21,204.9 (868.3) (*2) Allowance for loan losses / (Loan balance - collateral value without considering haircuts)
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Securities portfolio
Cost of available-for-sale securities (“AFS”) (Consolidated) increased by 511.3 billion yen from the end of March 2011 to 7,867.3 billion yen, mainly due to the increase in stocks (approximately 31.0 billion yen) resulting from purchase accounting method and in bonds (approximately 560.0 billion yen) resulting from consolidation of Japan Trustee Services Bank.
Unrealized gains/ losses of AFS secured net gains of 41.5 billion yen, though it decreased by 26.6 billion yen mainly due to the decline in stock prices, while realizing effects of purchase accounting method.
Cost of held-to-maturity debt securities (“HTM”) decreased by 42.5 billion yen from the end of March 2011 to 682.3 billion yen, mainly due to the decline in balances of foreign bonds and international asset backed securities.
<Breakdown of securities with fair value (Consolidated)>
Fair value Costs Unrealized gains/ losses
(Billions of yen) Mar. 2011 June 2011 Change Mar. 2011 June 2011 Change Mar. 2011 June 2011 Change
Available-for-sale securities 7,424.2 7,908.8 484.6 7,356.0 7,867.3 511.3 68.1 41.5 (26.6)
Japanese stocks 957.1 893.3 (63.8) 873.9 902.6 28.6 83.2 (9.2) (92.5)
Domestic bonds 4,058.5 4,963.4 904.8 4,050.6 4,927.6 877.0 7.8 35.7 27.8
Others 2,408.5 2,052.1 (356.3) 2,431.4 2,037.0 (394.3) (22.9) 15.0 37.9
Held-to-maturity debt securities 775.0 731.4 (43.5) 724.8 682.3 (42.5) 50.1 49.1 (0.9)
<Available-for-sale securities (Non-consolidated three-company total)>
Available-for-sale securities 7,341.7 7,218.7 (122.9) 7,291.8 7,190.6 (101.1) 49.8 28.0 (21.8)
Japanese stocks 878.7 818.1 (60.6) 813.5 803.1 (10.4) 65.1 14.9 (50.2)
Domestic bonds 4,078.5 4,372.4 293.9 4,070.6 4,348.8 278.1 7.8 23.5 15.7
Government bond 3,244.7 3,512.6 267.9 3,238.6 3,493.1 254.4 6.0 19.4 13.4
Others 2,384.4 2,028.1 (356.2) 2,407.5 2,038.6 (368.9) (23.1) (10.5) 12.6
Foreign government bonds 1,452.7 1,095.1 (357.6) 1,478.3 1,108.4 (369.9) (25.5) (13.2) 12.3
Corporate bond (International) 371.6 331.2 (40.4) 368.1 326.9 (41.1) 3.5 4.2 0.6
<Held-to-maturity debt securities (Non-consolidated three-company total)>
Held-to-maturity debt securities 774.3 730.7 (43.5) 724.2 681.3 (42.8) 50.1 49.4 (0.7)
Japanese government bonds 192.3 187.5 (4.8) 184.4 179.4 (5.0) 7.9 8.0 0.1
Foreign bonds (Corporate) 222.5 201.9 (20.6) 223.0 201.7 (21.3) (0.4) 0.2 0.6
Asset-backed securities (International) (*) 251.0 230.6 (20.3) 210.3 192.0 (18.2) 40.7 38.6 (2.0)
(*) Unamortizaiton balance of unrealized loss on asset-backed securities which were reclassified from AFS to HTM during FY2008 (2011/3: 61.0 bn yen, 2011/6: 56.3 bn yen)
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Effects on consolidated financial results by applying purchase accounting method
Valuation loss of 123.6 billion yen was recognized, as a result of revaluating consolidated B/S of former Chuo Mitsui Trust Holdings (“CMTH”) by applying purchase accounting method
Negative goodwill of 43.4 billion yen was recognized, as shareholders’ equity of 532.5 billion yen exceeded acquisition cost (total market value of CMTH’s shares) of 489.1 billion yen
There are no intangible assets which are newly recognized
Consolidated B/S of former CMTH after applying purchase a/c method
[Effective date of the share exchange]
<Assets> <Liabilities>
14,158.1 billion yen 13,437.6 billion yen
Results of applying purchase a/c method Results of applying purchase a/c method
(72.9) billion yen [1] +50.7 billion yen [2]
(Major factors) (Major factors)
Securities (21.2) Deposits +34.7
Borrowed money +3.8
Loans and bills discounted (*1) +37.6 Corporate bonds +5.2
Provision for retirement benefits +4.6
Other assets (*1)(*2) (86.3) Deferred tax liabilities +2.2
Tangible fixed assets (18.1)
Intangible fixed assets (*3) (33.2)
Deferred tax assets +47.8 <Net assets>
720.4 billion yen
(*1) Specific allowance for loan losses accounted
Shareholders’ equity 532.5 billion yen (A)
(*2) Unrecognized net actuarial loss, etc.
(*3) Goodwill, etc.
Results of applying purchase a/c method
(123.6) billion yen ( [1] – [2] )
Effects on differences between consolidated and non-consolidated financial results
By applying purchase accounting method, differences between consolidated and non-consolidated costs of assets/ liabilities which were object of the revaluation (mark to market) were recognized, which caused consolidated and non-consolidated financial results as to profit/ loss resulting from amortization/ accumulation of related assets/ liabilities or sales of securities.
An effect of these differences for 1QFY2011 is approximately 11.0 billion yen of profit at the level of net income, including one-time factor such as gains/ losses on sales or devaluation of securities (approximately 6.0 billion yen after considering tax effect).
[Amount of effects (approximate figure)] 1QFY2011
Amortization/ Accumulation of loans and 4.0 bn
bills discounted, bonds and deposits, etc.
Effects of sales of bonds, etc. 2.0 bn (*)
Effect on net business profit before credit costs 6.0 bn
Cancellation of amortization of net actuarial losses 3.0 bn
Effects of sales/ devaluation of stocks, etc. 8.0 bn (*)
Effect on ordinary profit 17.0 bn
Tax effects on above items (6.0) bn
Effect on net income 11.0 bn
(*) One-time effect
<Cost> 489.1 billion yen (B)
(March 31) Stock price: 295 yen
Number of shares: 1.658 billion shares
<Gain on amortization of negative goodwill> 43.4 billion yen
(A) - (B)
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<For reference> B/S as of effective date of the share exchange (simulation)
CMTH (Consolidated) STB (Consolidated) Pro forma JTSB Consolidated SMTH
Purchase a/c Succession Results of Succession adjustments
(Billions of yen) Mar. 2011 method amount (1) Mar. 2011 integration amount (2) (1) + (2) Mar. 2011(Reference)
Assets 14,231.0 (72.9) 14,158.1 20,926.0 - 20,926.0 35,084.2 1,177.7 (38.4) 36,223.5
Cash and due from banks 502.1 - 502.1 704.6 - 704.6 1,206.7 314.6 - 1,521.4
Monetary claims bought 99.9 0.4 100.3 439.3 - 439.3 539.6 - 539.6
Securities 3,710.5 (21.2) 3,689.2 4,616.5 - 4,616.5 8,305.7 561.5 (38.4) 8,828.8
Loans and bills discounted 8,817.5 37.6 8,855.1 11,794.9 - 11,794.9 20,650.1 - 20,650.1
Other assets 393.0 (86.3) 306.7 1,452.1 - 1,452.1 1,758.9 15.4 - 1,774.3
Tangible fixed assets 123.5 (18.1) 105.4 127.5 - 127.5 233.0 1.4 - 234.5
Intangible fixed assets 56.9 (33.2) 23.7 164.9 - 164.9 188.7 24.2 - 213.0
Deferred tax assets 143.0 47.8 190.9 100.1 - 100.1 291.1 0.3 - 291.4
(*) Figures for CMTH (Consolidated) indicate amount after considering allow ance for loan losses.
Liabilities 13,386.9 50.7 13,437.6 19,418.9 - 19,418.9 32,856.6 1,120.0 - 33,976.7
Deposits 9,292.0 34.7 9,326.7 12,298.5 - 12,298.5 21,625.2 43.2 - 21,668.5
Negotiable certificates of deposits 327.0 - 327.0 2,222.1 - 2,222.1 2,549.1 - 2,549.1
Borrowed money 678.9 3.8 682.8 1,176.0 - 1,176.0 1,858.8 - 1,858.8
Corporate bonds 267.2 5.2 272.4 634.2 - 634.2 906.7 - 906.7
Borrowed money from trust 801.6 - 801.6 431.7 - 431.7 1,233.3 1,041.2 - 2,274.6
Provision for retirement benefits 2.8 4.6 7.5 8.6 - 8.6 16.2 0.3 - 16.5
Deferred tax liabilities 3.9 2.2 6.2 0.0 - 0.0 6.2 - 6.2
Net assets 844.1 (123.6) 720.4 1,507.0 - 1,507.0 2,227.4 57.7 (38.4) 2,246.7
Capital stock 261.6 - 261.6 342.0 (342.0) - 261.6 51.0 (51.0) 261.6
Capital surplus - 227.5 227.5 297.0 341.5 638.6 866.1 - 866.1
Retained earnings 406.0 (362.5) 43.4 565.9 - 565.9 609.3 6.6 (6.6) 609.3
Treasury stock (0.2) 0.2 - (0.4) 0.4 -
Cumulative total of other (10.8) 10.8 - (1.8) - (1.8) (1.8) 0.0 (0.0) (1.8)
comprehensive profit
Minority interest 187.6 0.2 187.8 304.4 - 304.4 492.2 - 19.2 511.5
JTSB: Japan Trustee Services Bank, SMTH: Sumitomo Mitsui Trust Holdings
Copyright © 2011 SUMITOMO MITSUI TRUST HOLDINGS, INC. All rights reserved. 11
Table of Contents
Cautionary Statement Regarding Forward-Looking Statements
This material contains forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995) regarding our intent, belief or current expectations in respect to our future financial conditions, operating results and overall management. These forward-looking statements may be identified by words such as “believes”, “expects”, “anticipates”, “projects”, “intends”, “should”, “seeks”, “estimates”, “future”, or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. Such forward-looking statements are not guarantees of future performance and actual results may differ, owing to risks and uncertainties, including without limitation: (1) potential difficulties in integrating the management and business operations of our subsidiaries; (2) our ability to successfully execute our group business strategies; and (3) unanticipated events that result in an increase in our credit costs and a deterioration in the quality of our group companies’ loan portfolios. Given such risks and uncertainties, you should not place undue reliance on forward-looking statements, which speak only as of the release date of this material. We undertake no obligation to update or revise any forward-looking statements. In addition to this material, please refer to our most recently disclosed documents, such as our Form F-4 registration statement filed with the U.S. Securities and Exchange Commission, or press releases we have issued, for a more detailed description of matters that may affect our financial condition and operating results.
Copyright © 2011 SUMITOMO MITSUI TRUST HOLDINGS, INC. All rights reserved.