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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 November, 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. | Investor meeting on Financial Results for 1HFY2011 |
2. | Supplemental material on financial results 2nd Quarter of Fiscal Year 2011 ended on Sep. 30, 2011 |
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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: November 25, 2011 | By: | /s/ Tadashi Nishimura | ||
Name: | Tadashi Nishimura | |||
Title: | Executive Officer |
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Sumitomo Mitsui Trust Holdings, Inc.
Investor Meeting on Financial Results for 1HFY2011
November 24, 2011
Copyright © 2011 SUMITOMO MITSUI TRUST HOLDINGS, INC. All rights reserved.
SUMITOMO MITSUI TRUST HOLDINGS
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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.
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Table of Contents
1. 1HFY2011 financial results and financial condition
2. Forecast for FY2011
3. Policy on business initiatives for 2HFY2011
4. Status of Balance sheet
5. Status of Capital, financial and capital policies
6. Midterm Management Plan
7. (Reference ?) Credit portfolio
8. (Reference ?) Financial results and finance-related
9. (Reference ?) Division performance
Definitions of terms in this document
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)
Consolidated figures for previous fiscal year: former Chuo Mitsui Trust Holdings (Consolidated) + Sumitomo Trust and Banking (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”
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Overviews
Consolidated financial results
Results (change from 1HFY2010)
Exceeded the previous fiscal year’s results due to favorable market-related profit and effect of integrated accounting
Net business profit before credit costs
?175.6bn [+?27.0bn]
Total credit costs were stable at low level
Total credit costs
?0.0bn [?(2.3)bn]
Significantly increased from 1HFY2010 due to effect of amortization of negative goodwill (?43.4bn), etc.
Net income
?128.1bn [+ ?42.0bn]
Net income
(excl. negative goodwill )
?84.6bn [?(1.4)bn]
Strategy for 2HFY2011
Continue to strengthen and expand fee businesses centering on investment trust and insurance sales
Net fees and commissions ratio
39.4% [Target: approx. 50%]
Financial strengthngth
Mar. 2011 (Actual)
Sep. 2011 (Actual)
Continued to maintain high quality of loan assets
NPL ratio
1.1%
1.1%
Further enhanced capital through accumulation of retained earnings
Consolidated Tier I capital ratio
10.9%
11.6%
Midterm Management Plan
Target (FY2015) (Consolidated)
Revised revenue target, etc. of the management integration plan considering recent change of economic environment
Net business profit before credit costs
?400.0bn
Net income
?200.0bn
1HFY2011 financial results and financial condition
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1HFY2011 financial results and financial condition
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1HFY2011 financial results: Consolidated
Net business profit before credit costs increased by 27.0 billion yen from 1HFY2010 to 175.6 billion yen, due to the effects of purchase accounting method, in addition to the increase in that on a non-consolidated (Three-company total) basis. Contribution of group companies to net business profit before credit costs (before consolidated adjustments) was 28.1 billion yen, and consisted its 16%.
Net income increased by 42.0 billion yen from 1HFY2010 to 128.1 billion yen, mainly due to the gain on amortization of negative goodwill of 43.4 billion yen related to share exchange.
(Billions of yen)
1HFY2010 1HFY2011 Change
Net business profit before credit costs (Contribution of group companies before consolidated adjustments)
148.5 175.6 27.0
27.7 28.1 0.3
Gross business profit
314.3 359.9 45.5
General and administrative expenses
(171.9)(185.0)(13.0)
Net non-recurring profit, etc.
(30.7)(19.5)11.1
Ordinary profit
111.6 155.2 43.6
Extraordinary profit
(4.3) 39.1 43.5
Amortization of negative goodwill related to share exchange
- 43.4 43.4
Income before income taxes
107.2 194.4 87.1
Total income taxes
(10.5) (55.4) (44.8)
Net income (Excl. amortization of negative goodwill related to share exchange)
86.1 128.1 42.0
86.1 84.6 (1.4)
Total credit costs
(Difference from non-consolidated (Three-company total))
2.4 0.0 (2.3)
(8.5) 0.9 9.4
Net gains on stocks (Difference from non-consolidated (Three-company total))
(1.1) (11.0) (9.8)
0.2 12.2 11.9
Consolidated return on equity
9.77% 15.36% 5.59%
Dividend on common share (Interim dividend) (Yen)
- 4.0 -
< Composition of net business profit before credit costs(*) >
(1) |
| Non-consolidated (Three-company total): ?129.5bn |
(2) |
| Group companies: 28.1bn |
(3) |
| Effect of purchase accounting method: 25.1bn |
(*) Added adjustment of dividend elimination, etc. to sum of (1) , (2) and (3)
< Major factors (change from 1HFY2010) >
(1) |
| Net business profit before credit costs: + 27.0bn |
Non-consolidated + ?9.8bn [119.7bn 129.5bn]
Consolidated difference + 17.1bn [28.8bn 46.0bn]
(2) |
| Contribution of group companies before consolidated adjustments: + 0.3bn |
Sumishin Real Estate Loan & Finance + 0.5bn
SBI Sumishin Net Bank + 0.4bn
Sumishin Panasonic Financial Services (0.4)bn
(3) |
| General and administrative expenses: (13.0)bn |
Japan Trustee Services Bank (13.4)bn (newly consolidated)
(4) |
| Net non-recurring profit, etc.: + 11.1bn |
Cancellation of amortization of net actuarial losses + 6.6bn
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For detail, please refer to P41
1HFY2011 financial results: Non-consolidated (Three-company total)
Net business profit before credit costs increased by 9.8 billion yen from 1HFY2010 to 129.5 billion yen, mainly due to the increase in net other operating profit centering on net gains on bonds, while net fees and commissions and related profit decreased.
Total credit costs stayed at 0.8 billion yen, due to limited occurrence of new non-performing loans, in addition to the steady decrease in the balance of non-performing loans.
Net income decreased by 27.2 billion yen from 1HFY2010 to 57.6 billion yen, mainly due to the devaluation of stocks resulting from the decline in stock prices.
(Billions of Yen)
1HFY2010 1HFY2011 Change
Net business profit before credit costs
119.7 129.5 9.8
Gross business profit
240.6 250.8 10.1
Net interest income and related profit
124.9 123.4 (1.4)
Net fees and commissions and related profit
83.7 79.4 (4.2)
Net trading profit
7.0 3.1 (3.9)
Net other operating profit
24.9 44.7 19.8
Net gains on bonds
34.6 50.6 16.0
General and administrative expenses
(120.9)(121.2) (0.3)
Net non-recurring profit, etc.
(28.8) (42.0) (13.1)
Reversal of allowance for loan losses
- 1.9 1.9
Net gains on stocks
(1.4) (23.2) (21.8)
Amortization of net actuarial losses
(13.0) (11.7) 1.2
Ordinary profit
90.8 87.5 (3.2)
Extraordinary profit
(6.3) (7.5) (1.2)
Income before income taxes
84.5 79.9 (4.5)
Total income taxes
0.4 (22.3) (22.7)
Net income
84.9 57.6 (27.2)
Total credit costs
11.0 (0.8) (11.8)
< Major factors (change from 1HFY2010) >
(1) |
| Net interest income and related profit: (1.4)bn |
Domestic +2.1bn [¥104.6bn 106.8bn]
International (3.9)bn [¥19.7bn 15.7bn]
(2) |
| Net fees and commissions and related profit: (4.2)bn |
Fees of investment trust/ Insurance + ?2.8bn
[?20.8bn 23.7bn]
Real estate brokerage fees (4.9)bn [8.6bn 3.7bn]
(3) |
| Net other operating profit: + 19.8bn |
Net gains on bonds + 16.0bn
[Domestic bonds (1.7)bn, Foreign bonds + 17.8bn]
Net gains from derivatives other than for trading or hedging + 4.2bn
(4) |
| Extraordinary profit: (1.2)bn |
Decrease of reversal of allowance for loan losses (11.8)bn
Disappearance of impairment loss on shares of a subsidiary in 1HFY2010 + 15.2bn
Costs related to the Management Integration +0.7bn
[(4.3)bn (3.5)bn]
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For detail, please refer to P43
Financial results and contribution of major group companies
Contribution to net business profit before credit costs (excluding one-time effect) increased by 0.3 billion yen from 1HFY2010, due to the increase in profit of SBI Sumishin Net Bank, etc.
Contributions to net income (excluding one-time effect) increased by 5.8 billion yen from 1HFY2010, mainly due to the increase in profit of Sumishin Real Estate Loan & Finance.
Effects on consolidation difference are 25.1 billion yen at the level of net business profit before credit costs, and 62.7 billion yen at the level of net income.
< Contribution of major group companies to consolidated financial results >
Net business profit before credit costs
Net income
Goodwill as of Sep. 2011
(Billions of Yen)
1HFY2010 1HFY2011 Change 1HFY2010 1HFY2011 Change Amortization amount Outstanding balance
Consolidation difference
28.8 46.0 17.1 1.1 70.4 69.2 (4.8) 120.6
Effect of purchase accounting method
-
25.1 25.1
-
62.7
62.7
-
-
Contribution (before consolidated adjustments) (*1)
27.7 28.1 0.3 4.7 20.4 15.6 (4.8)120.6
(Excl. One-time effect) (*2)
27.7
28.1
0.3
14.6
20.4
5.8
-
-
Nikko Asset Management Co., Ltd. (Consolidated)
4.1
4.2
0.1
2.6
2.7
0.0
(*3) (2.7)
(*3) 67.6
Sumishin Panasonic Financial Services Co., Ltd. (Consolidated)
8.9
8.4
(0.4)
5.0
5.1
0.0
(0.1)
0.7
Sumishin Real Estate Loan & Finance, Ltd.
2.9
3.4
0.5
0.5
3.6
3.0
(1.9)
51.9
SBI Sumishin Net Bank, Ltd. (Consolidated)
0.7
1.1
0.4
0.7
1.6
0.8
-
-
(*1Contribution of group companies (before consolidated adjustments) is a substantive amount which excludes consolidation adjustments that do not relate directly to the group companies’ business results. (Non-consolidated profit/loss of the holding company, elimination of dividend, amortization of goodwill, etc.)
(*2Adjusted one-time effect of business restructuring of STB’s subsidiaries.
(*3Include an amortization amount (0.5 billion yen) and outstanding balance (4.9 billion yen) of affiliated companies
< Effects on differences between consolidated and non-consolidated financial results >
1HFY2011
Amortization/ Accumulation of loans and bills discounted, bonds and deposits, etc.
6.9 bn
Effects of sales of bonds, etc.
18.2 bn (*)
Effect on net business profit before credit costs
25.1 bn
Cancellation of amortization of net actuarial losses
6.6 bn
Effects of sales/ cancellation of devaluation of stocks, etc.
12.1 bn (*)
Effect on ordinary profit
43.9 bn
Tax effects on above items
(24.6)bn
Effect on net income
62.7 bn
(*) One-time effect
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 1HFY2011 is 62.7 billion yen of profit at the level of net income, including factors such as gains/ losses on sales or devaluation of securities (19.3 billion yen), as well as gain on amortization of negative goodwill related to share exchange (43.4 billion yen).
Impairment risk of shareholdings and cost burden of amortization of net actuarial losses are reduced
Note: Effects by applying purchase accounting method in this page include gain on amortization of negative goodwill of 43.4 billion yen.
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For detail, please refer to P42
Breakdown of profit by business: Non-consolidated (Three-company total)
Gross business profit increased by 10.1 billion yen from 1HFY2010 to 250.8 billion yen, due to the significant increase in that of treasury and financial products, while that of real estate stagnated due to the effects of the earthquake.
As to retail financial services, gross business profit decreased by 2.4 billion yen from 1HFY2010, due to a 4.6 billion yen decrease in net interest income resulting from the decline in interest rates, in addition to the disappearance of securitization profit of 2.2 billion yen posted in 1HFY2010, while fees of investment trust/ insurance increased by 2.9 billion yen over the same period.
Gross business profit of wholesale financial services decreased by 1.0 billion yen, mainly due to the decrease in loan arrangement fees.
(Billions of yen)
1HFY2010
1HFY2011
Change
Retail financial services
73.2
70.7
(2.4)
Wholesale financial services
66.1
65.1
(1.0)
Stock transfer agency services
9.1
8.8
(0.2)
Gross business profit
16.8
16.5
(0.3)
Fees paid for outsourcing
(7.6)
(7.6)
0.0
Treasury and financial products
58.3
80.8
22.4
Fiduciary services
30.6
30.6
(0.0)
Gross business profit
42.8
42.9
0.1
Fees paid for outsourcing
(12.1)
(12.3)
(0.1)
Real estate
13.1
7.5
(5.5)
Others
(0.9)
(4.1)
(3.1)
Total
240.6
250.8
10.1
240.6
(2.4)
(1.0)
(0.0)
250.8
1HFY 2010
Retail financial services
Wholesale financial services
Treasury and financial products
Fiduciary services
Real estate
Others
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(*1) Figures of profit by business are tentative calculations based on certain assumptions (transfer pricing, etc.) under managerial accounting.
(*2) Figures for “Others” include costs of capital funding, dividends of shares for cross-shareholdings, general and administrative expenses of headquarters, etc.
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Breakdown of net interest income: Non-consolidated (Two-company total)
Average balance of loans remained almost flat from 1HFY2010, as a result of increase in the balance of loans to individuals, though the demand for loans by corporations stagnated.
Decrease in net interest income from 1HFY2010 stayed at 1.4 billion yen, due to a 10.0 billion yen increase in that of securities as a result of increased investment in bonds by treasury and financial products business, while loan-deposit margin shrank by 6bp from 1HFY2010 to 0.84% due to the decline in market interest rate.
< Loan-deposit margin (Banking a/c and Principal guaranteed trust a/c combined) >
FY2010
1HFY2011
Change from
2HFY2010
Change from
1HFY2010
2H
1H
Loans and bills discounted
1.21%
(0.07%)
(0.12%)
1.28%
1.33%
Deposits, etc.
0.37%
(0.03%)
(0.06%)
0.40%
0.43%
Loan-deposit margin
0.84%
(0.04%)
(0.06%)
0.88%
0.90%
Average yield on Loans and bills discounted
Average yield on Deposits, etc.
Loan-depositmargin
1.5%
1.0%
0.5%
0.0%
1.52%
1.02%
0.50%
FY09
1H
1.44%
0.97%
0.47%
FY09
2H
1.33%
0.90%
0.43%
FY10
1H
1.28%
0.88%
0.40%
FY10
2H
1.21%
0.84%
0.37%
Fy11
1H
1HFY2010
1HFY2011
Change
(Average balance: Trillions of yen)
(Income/Expense: Billions of yen)
Average balance
Yield
Income/ Expense
Average balance
Yield
Income/ Expense
Average balance
Yield
Income/ Expense
Net interest income
124.9
123.4
(1.4)
Domestic business
0.73%
104.6
0.76%
106.8
0.03%
2.1
Interest-earning assets
28.11
1.17%
166.0
27.80
1.16%
162.6
(0.31)
(0.01%)
(3.4)
Loans and bills discounted (A)
18.33
1.33%
122.9
18.34
1.21%
111.6
0.01
(0.12%)
(11.2)
Securities, etc. (*1)
6.17
0.88%
27.4
6.21
1.20%
37.5
0.03
0.31%
10.0
Interest-bearing liabilities
27.69
0.44%
(61.4)
27.41
0.40%
(55.8)
(0.27)
(0.03%)
5.5
Deposits, etc. (*2) (B)
21.45
0.43%
(46.8)
22.12
0.37%
(41.5)
0.67
(0.06%)
5.3
International business
0.99%
19.7
0.83%
15.7
(0.16%)
(3.9)
Loans and bills discounted
1.57
1.39%
11.0
1.85
1.31%
12.2
0.28
(0.07%)
1.2
Loan-deposit margin (*3) (A) + (B)
0.90%
76.1
0.84%
70.1
(0.06%)
(5.9)
(*1) Securities + Monetary Claims Bought (*2) Deposits + Trust principal (*3) As to yield, (A) – (B)
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Breakdown of net fees and commissions
Non-consolidated (Three-company total) net fees and commissions decreased by 4.2 billion yen from 1HFY2010 to 79.4 billion yen, mainly due to the decrease in real estate brokerage fees, though fees of investment trust/ insurance increased over the same period.
Ratio of net fees and commissions to gross business profit fell by 1.4 points from 1HFY2010 to 39.4%, because of the significant increase in net other operating profit including net gains on bonds, while net fees and commissions increased due to the consolidation of Japan Trustee Services Bank.
Non-consolidated (Three-company total)
Consolidated (*)
(Billions of yen)
1HFY2011
Change from 1HFY2010
1HFY2011
Change from 1HFY2010
Net fees and commissions and related profit
79.4
(4.2)
141.9
13.4
(Net fees and commissions)
37.9
(3.3)
97.4
11.2
(Other trust fees)
41.5
(0.8)
44.5
2.2
Investment trust and Insurance Sales
23.7
2.8
23.7
2.8
Fiduciary services business
30.6
(0.0)
71.8
14.8
Profit
42.9
0.1
75.2
6.0
Fees paid for outsourcing
(12.3)
(0.1)
(3.4)
8.7
Stock transfer agency services
8.8
(0.2)
14.4
(0.2)
Profit
16.5
(0.2)
17.9
(0.0)
Fees paid for outsourcing
(7.6)
0.0
(3.4)
(0.2)
Real estate business
7.0
(5.6)
12.8
(5.6)
Others (Loan arrangement fees, etc.)
9.1
(1.2)
19.0
1.7
Ratio to gross business profit
31.7%
(3.1%)
39.4%
(1.4%)
Trend of net fees and commissions (consolidated)
Net fees and commissions
Others
Net interest income
Ratio to gross business profit
(Billions of yen)
600.0
500.0
400.0
300.0
200.0
100.0
0.0
Mid-term target: 50%
34.9%
311.1
46.4
FY09
1H
38.7%
333.2
45.0
FY09
2H
40.9%
314.3
52.8
FY10
1H
42.9%
307.9
44.2
FY10
2H
39.4%
359.9
85.4
FY11
1H
50%
40%
30%
20%
10%
0%
(*) Show figures after eliminations, etc. for intra-group transactions.
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For detail, please refer to P44
General and administrative expenses
General and administrative expenses (non-consolidated (Three-company total) ) remained almost flat from 1HFY2010 at 121.2 billion yen, as a result of cost control.
Overhead ratio (non-consolidated (Three-company total) ) fell by 1.9 points from 1HFY2010 to 48.3% along with the increase in gross business profit.
Non-consolidated (Three-company total)
(Billions of yen)
1HFY2010
1HFY2011
Change
Personnel expenses
(50.1)
(48.9)
1.1
Salaries etc.
(47.3)
(46.8)
0.4
Retirement benefit expenses
4.6
5.4
0.8
Others
(7.3)
(7.5)
(0.2)
Non-personnel expenses excluding taxes
(65.2)
(66.6)
(1.4)
IT system-related costs
(17.5)
(17.3)
0.1
Others
(47.6)
(49.2)
(1.6)
Taxes other than income taxes
(5.6)
(5.6)
(0.0)
General and administrative expenses (a)
(120.9)
(121.2)
(0.3)
Overhead ratio ((a) / gross business profit)
50.2%
48.3%
(1.9%)
(Reference) Consolidated
(Billions of yen)
1HFY2010
1HFY2011
Change
Personnel expenses
(77.6)
(81.4)
(3.7)
Non-personnel expenses excluding taxes
(87.5)
(97.0)
(9.4)
Taxes other than income taxes
(6.6)
(6.5)
0.1
General and administrative expenses
(171.9)
(185.0)
(13.0)
Trend of general and administrative expenses (Non-consolidated (Three-company total))
(billion of yen)
Personnel expenses
Non-personnel expenses excluding taxes
Taxes other than income taxes
Overhead ratio
200.0
150.0
100.0
50.0
0.0
47.0%
123.6
52.7
Fy09 1H
45.9%
123.5
51.8
FY09 2H
50.2%
120.9
50.1
FY10 1H
51.6%
121.2
48.9
FY10 2H
48.3%
121.2
48.9
FY11 1H
50%
40%
30%
20%
10%
0%
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Breakdown of total credit costs and migration analysis
Consolidated total credit costs stood at 0.0 billion yen, due to the reversal of allowance for loan losses resulting from the improvement of debtors’ business conditions as well as the decline in the loan balance, while the costs caused by downgrades of debtors were limited.
An allowance for loan losses of 8.5 billion yen for housing loan company (Jusen), and the reversal resulting from the unification of calculating method of reserves based on the management integration (+8.5 billion yen) were posted.
< Total credit costs >
FY2010
FY2011
(Billions of yen)
1H
2H
1H
Major factors (1HFY2011)
Total credit costs (Non-consolidated (Two-company total))
11.0
(18.4)
(0.8)
General allowance for loan losses
10.7
(7.8)
15.4
Specific allowance for loan losses
1.0
(1.0)
(16.2)
Recoveries of written-off claims
1.7
5.4
0.5
Losses on sales of claims, written-off
(2.5)
(15.0)
(0.5)
Total credit costs (Group companies)
(8.5)
(8.2)
0.9
Total
2.4
(26.7)
0.0
Downgrade of debtors: Approx. (11.5)
Decrease in loan balance: Approx. +6.0
Upgrade of debtors: Approx. +4.0
Allowance for housing loan companies: Approx. (8.5), Effects from
unification of calculating method of reserves: Approx. +8.5, etc.
< Migration analysis (Non-consolidated (Two-company total)) >
(Billions of yen)
Mar. 2011 Balance
Sep. 2011 Balance
Change
Downgrade (+)
Downgrade (-)
Upgrade (+)
Upgrade (-)
Repayment, etc.
Bankrupt and practically bankrupt
41.3
33.7
(7.5)
3.3
(3.8)
(7.0)
Doubtful
93.7
133.9
40.3
63.0
(1.2)
1.4
(12.1)
(10.8)
Assets to substandard debtors
138.5
109.2
(29.4)
9.4
(9.5)
1.0
(20.1)
(10.1)
Assets to other special mention debtors
711.2
690.5
(20.7)
223.0
(19.4)
14.4
(165.9)
(72.9)
Total
984.7
967.4
(17.3)
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Forecast for FY2011
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Forecast for FY2011
Consolidated earnings forecast for full FY2011 has been upwardly revised to some extent, considering both favorable results in 1HFY2011 and uncertain macro economic environment of 2HFY2011
The year-end dividend will be calculated and paid based on the dividend policy which targets consolidated dividend payout ratio of approx. 30%.
< Consolidated> FY2011
1H Full Change
(Billions of yen) (Actual) (Forecast) from FY2010
Net business profit before credit costs 175.6 320.0 29.3
Ordinary profit 155.2 265.0 79.5
Net income 128.1 180.0 49.2
(Excl. Amortization of negative goodwill) 84.6 135.0 4.2
Total credit costs 0.0 (20.0) 4.3
Dividend on common share (Yen) 4.0 8.0 - - -
Consolidated dividend payout ratio (*1) - - - 25.5% - - -
(*1) Consolidated dividend pay out ratio is calculated by excluding amortization of negative goodwill.
< Non-consolidated (Three-company total) >
Net business profit before credit costs 129.5 235.0 1.6
Gross business profit 250.8 485.0 9.4
Retail financial services 70.7 143.0 (1.2)
Wholesale financial services 72.7 149.0 0.1
Stock transfer agency services 16.5 (*2)31.0 (0.8)
Treasury and financial products 80.9 125.0 13.6
Fiduciary services 42.9 (*2)87.0 (0.9)
Real estate 7.5 29.0 3.3
General and administrative expenses (121.2) (250.0) (7.8)
Ordinary profit 87.5 165.0 15.5
Net income 57.6 100.0 (23.0)
Total credit costs (0.8) (15.0) (7.5)
(*2) Fees paid f or outsourcing are not included.
(Stock transfer agency services: 15.0bn y en, Fiduciary services: 25.0bn y en)
(*3) Figures of profit by business are tentative calculations based on certain assumptions (transfer pricing, etc.) under managerial accounting.
< Major factors (Consolidated): change from the initial forecast> (1) Net business profit before credit costs: + ¥25.0bnNon-consolidated unchanged [¥235.0bn ¥235.0bn] Group companies ¥(5.0)bn [¥60.0bn ¥55.0bn] Effect of purchase accounting method + ¥30.0bn [¥0.0bn ¥30.0bn] (2) Total credit costs: + ¥20.0bn Non-consolidated + ¥15.0bn [¥(30.0)bn ¥(15.0)bn] Group companies + ¥5.0bn [¥(10.0)bn ¥(5.0)bn]
< Major factors (Non-consolidated ): change from the initial forecast> (1) Net business profit before credit costs: unchanged Gross business profit + ¥5.0bn [¥480.0bn ¥485.0bn] Retail financial services ¥(1.0)bn [¥144.0bn ¥143.0bn] Wholesale financial services ¥(6.0)bn [¥155.0bn ¥149.0bn] Treasury and financial products + ¥32.0bn [¥93.0bn ¥125.0bn] Fiduciary services ¥(5.0)bn [¥92.0bn ¥87.0bn] Real estate ¥(9.0)bn [¥38.0bn ¥29.0bn] General and administrative expenses ¥(5.0)bn [¥(245.0)bn ¥(250.0)bn] (2) Ordinary profit: ¥(10.0)bn Total credit costs + ¥15.0bn [¥(30.0)bn ¥(15.0)bn] Net gains on stocks ¥(25.0)bn [¥0.0bn ¥(25.0)bn]
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Table of Contents
Policy on business initiatives for 2HFY2011
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2HFY2011 initiatives policy
1. Strengthen prioritized businesses
Revised some measures to cope with environmental change, while policy to strengthen fee businesses, which are positioned as growth areas, remains unchanged
Raise sales plan of insurance products
Strengthen the marketing of Japanese stock investment to overseas institutional investors
Strengthen real estate brokerage of small-and-medium-sized properties
2. Steady promotion of management integration
The process towards the integration of three trust banks scheduled in April, 2012 has proceeded steadily
Achieved early realization of revenue synergies in some areas through mutual provision of investment products, etc., and accelerate the integration of the group further to realize revenue synergies
The integration of Banking IT system has proceeded steadily as planned
Promote cost control through the consolidation of headquarters, overlapping branches, etc.
3. Establish enhanced financial soundness
Maintain soundness of balance sheet
Promote measures to control risk-weighted assets, considering the introduction of Basel III
Limited exposure to Euro zone (GIIPS countries: ¥8.9bn), and continue to control downside risk through enhancing the quality of credit exposure
Set up a reduction program of cross shareholdings, and enter the negotiation with clients towards reduction in 2HFY2011
Accelerate the consideration to introduce the Advanced Internal Rating Based approach (AIRB) to credit risk and the Advanced Measurement Approach (AMA) to operational risk
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Strengthen fee businesses 1: Investment trust and insurance sales
Sales volume of investment trust and insurance steadily expanded even after the earthquake, and increased significantly by 25% from 2HFY2010
Significant increase in insurance sales covered the slowdown in investment trust sales due to the effect of yen appreciation, etc. in later 1HFY2011
Focus on sales of investment trust and insurance products with low foreign exchange risk considering volatile foreign exchange and equity markets trend, as well as strengthen sales of fund wrap/ SMA
Enhance further consulting capability by prompt sharing of both companies’ know-how, as well as by utilizing training program of the group’s asset management company
Income (Non-consolidated (Two-company total))
1HFY2011 2HFY2011
Change from
Actual Plan
(Billions of yen) 1HFY2010
Total 23.7 2.8 25.0
Sales fees of investment trust 10.1 3.1 12.0
Sales fees of insurance 5.7 0.0 6.0
Others
(management and administration) 7.8 (0.2) 7.0
Trend of Fund wrap / SMA balance
(Billions of yen)
160.0 120.0 80.0 40.0 0.0
52.2 72.0 100.3 118.7 168.0
Mar.2010 Sep.2010 Mar.2011 Sep.2011 Mar.2012 (Plan)
Trend of Income (Non-consolidated (Two-company total))
(Billions of yen)
Sales fees of investment trust
Sales fees of insurance
Others (management and administration)
30.0 25.0 20.0 15.0 10.0 5.0 0.0
19.8 20.8 20.0 23.7 25.0
6.8 7.0 9.2 10.1 12.0
4.9 5.7 2.6 5.7 6.0
8.0 8.0 8.1 7.8 7.0
2HF2009 1HFY2010 2HFY2010 1HFY2011 2HF2011 (plan)
Trend of Sales volume
(Billions of yen)
Sales of volume of investment trust
Sales volume of insurance
800.0 600.0 400.0 200.0 0.0
495.3 567.7 583.0 727.2 740.0
355.8 385.3 487.6 526.6 540.0
139.5 182.3 95.3 200.5 200.0
2HFY2009 1HFY2010 2HFY2010 1HFY2011 2HFY2011 (plan)
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Strengthen fee businesses 2: Fiduciary services
Assets under management of discretionary investment significantly decreased by 4.2 trillion yen, due to the excess payment (approx. -3.4 trillion yen) of pension benefits of public pensions
Assets under management of corporate pension and public pension remained almost flat, if excludes the effect of decline in fair value (approx. -1.5 trillion yen)
Assets under management of subsidiaries resulted in net cash-inflow, if excludes the effect of decline in fair value (approx. -1.8 trillion yen) (including acquisition of DBS AM: approx +0.4 trillion yen)
Promote the marketing of high profitable alternative investment management
Strengthen capability to manage Asian equities through the integration of Hong Kong subsidiaries, as well as strengthen overseas marketing capability through the consolidation of marketing function in Europe
Assets under management (AUM) Assets under management (AUM) by company
Mar. 2011 Sep. 2011
(Trillions of yen) Actual Actual Change
Assets under management 65.7 59.0 (6.6)
Trust banks 49.0 43.3 (5.7)
Corporate pension 13.6 12.6 (1.0)
Public pension 8.2 7.8 (0.4)
Investment discretion 27.1 22.9 (4.2)
Subsidiaries 16.6 15.6 (0.9)
CMAMSTAM 3.8 3.6 (0.2)
Nikko Asset Management 12.8 12.0 (0.7)
Income (Non-consolidated (Three-company total) )
1HFY2011 2HFY2011
Change from
Actual Plan
(Billions of yen) 1HFY2010
Fiduciary services business 30.6 (0.0) 31.0
Gross business profit 42.9 0.1 44.0
Fees paid for outsourcing (12.3) (0.1) (13.0)
(Trillions of yen)
Trust banks CMAM+STAM NAM
70 60 50 40 30 20 10 0
64.1 61.9 65.7 59.0
49.9 48.3 49.0 43.3
3.7 3.7 3.8 3.6
10.4 9.8 12.8 12.0
Assets under custody (AUC)
Mar. 2011 Sep. 2011
(Trillions of yen)
(Billions of USD) Actual Actual Change
Domestic custody business (JTSB) 184 183 (0)
Global custody business (STBUSA) 209 192 (17)
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Strengthen fee businesses 3: Real estate
Number of brokerage transaction and brokerage fees from large properties stagnated, due to the delayed recovery of real estate market resulting from the effect of the earthquake
Brokerage transactions of small-and-medium-sized properties and residential properties were stable even after the earthquake
Strengthen relation with major developers and real estate investment funds, etc.
(1) Combine operating function of STB and CMTB: Not only sharing the information, but also developing the strategy for specific company in cooperation, as well as utilizing both companies’ product planning capability
(2) Strengthen product planning capability: Provide solution focusing on finance and tax, finance arrangement, placement of equity investors, tenant leasing, etc.
To strengthen brokerage transaction of small-and-medium-sized properties, establish a department specializing in that business and increase sales personnel from the real estate brokerage subsidiary
Real estate business (Group basis)
1HFY2011 2HFY2011
Change from
Actual Plan
(Billions of yen) 1HFY2010
Real estate brokerage fees 9.1(4.9) 23.0
Trust banks 3.7(4.9) 17.0
Subsidiaries 5.3(0.0) 6.0
Real estate trust fees, etc. 3.3(0.6) 4.5
Others 1.0(0.0) 1.0
Group companies 0.5(0.1) 0.5
Total 13.5(5.7) 28.5
Sep. 2011 Change from
Mar. 2011
(Billions of yen)
Balance of securitized real estate 9,353.1(113.0)
Balance of real estate asset management 271.8(9.1)
Real estate brokerage fees and number of contracts
(Billions of yen) Trust banks Subsidiaries
20.0
15.0 |
| 12.6 14.6 13.9 |
10.0 7.0 8.6 8.1 9.1
5.0 |
| 3.7 |
0.0
2HFY2009 1HFY2010 2HFY2010 1HFY2011
FY2009 FY2010 FY2011
1H 2H 1H 2H 1H
Number of
brokerage transactions 135 196 207 203 184
Note: Non-consolidated (Tw o-company total)
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Enhancing basic earnings power: Credit portfolio strategy
Balance of loans to individuals increased steadily, while that of credit to overseas Japanese borrower decreased slightly due to the effect of yen appreciation and the securitization
Financing demands are firm, plan to increase both of those exposures during 2HFY2011
Balance of credit to large corporations, etc. decreased due to the decrease in short-term loans at the end of fiscal year
Limited effects on average loan balance
Credit portfolio
(Trillions of yen)
25 |
| 23.4 23.2 23.3 Loans to individuals |
20 |
| 5.9 6.0 6.6 Overseas Japanese |
borrower
1.4 |
| 1.4 1.6 Overseas non-Japanese |
borrower
15 |
| 1.0 1.0 1.2 Real estate NRL, etc. |
1.6 |
| 1.6 1.8 Large corporations, etc. |
10
5 |
| 13.3 12.9 12.0 |
0
Mar.2011 |
| Sep.2011 Mar.2012 |
(plan)
Balance of credit to overseas Japanese borrowers
(Billions of yen)(Non-consolidated (Two-company total))
1,500.0
1,000.0
500.0 |
| 1,189.0 1,259.0 1,472.9 1,451.1 1,620.0 |
0.0
Mar.2010 |
| Sep.2010 Mar.2011 Sep.2011 Mar.2012 |
(plan)
USD/JPY 93.25 83.40 83.13 76.63
Loans to individuals
< Balance and execution amount (Non-consolidated (Two-company total)) >
1HFY2011 2HFY2011
Actual Chanage from
2HFY2010 Plan
(Billions of yen)
Balance of loans to individuals 6,085.3 139.1 6,600.0
Residential mortgage loans 5,559.6 178.2 6,100.0
Execution Amount 436.2(54.5) 850.0
Residential mortgage loans 428.0(50.4) 790.0
< Individual loan balance >
(Trillions of yen) Trust banks SBI Sumishin Net Bank Sumishin L&F
8.0 |
| 6.3 6.5 6.9 7.1 7.7 |
0.1 |
| 0.2 0.2 0.2 0.2 |
6.0 |
| 0.4 0.5 0.7 0.8 0.8 |
4.0
2.0 |
| 5.7 5.8 5.9 6.0 6.6 |
0.0
Mar.2010 |
| Sep.2010 Mar.2011 Sep.2011 Mar.2011 |
(plan)
< Origination of residential mortgage loans by channel >
Route sales channel Workplace channel Over the counter, etc.
89% 5% 6%
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Balance sheet
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Problem assets based on the Financial Reconstruction Act: Non-consolidated (Two-company total)
Ratio of “Problem assets based on the Financial reconstruction Act” to the total balance and credit cost ratio continued to remain at low level because of high quality credit portfolio Coverage ratio for “Problem assets based on the Financial Reconstruction Act” reached 87.9%, which represent sufficient level
Balance and ratio to total balance of NPLs
(Billions of yen)
1,200.0
1,000.0
800.0
600.0
400.0
200.0
0.0
5.23%
NPL
NPL ratio
2.29%
1.27%
1.16%
1.11%
1.10%
1,104.6
444.3
261.9
255.6
245.3
240.8
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Total credit costs and credit cost ratio
(Billions of yen)
Credit costs
Credit costs ratio
200.0
150.0
100.0
50.0
0.0
0.96%
0.21%
0.33%
0.34%
0.03%
0.00%
0.9%
0.6%
0.3%
0.0%
203.0
41.1
66.8
73.9
7.4
0.8
Mar . 2003
Mar . 2005
Mar . 2007
Mar . 2009
Mar . 2011
Sep. 2011
(Billions of yen) Problem assets based on the Financial Reconstruction Act (Ratio to total loan balance) Bankrupt and practically bankrupt Doubtful Substandard Assets to other special mention debtors Ordinary assets Total
Sep. 2011
240.8
1.1%
33.7
133.9
73.1
726.6 20,958.6 21,925.9
Coverage ratio (*1) 87.9% -— 100.0% 91.7% 75.4% -— -— -—
Allowane ratio (*2) 60.3% -— 100.0% 67.7% 26.4% -— -— -—
Change from Mar. 2011
(4.5) (0.0%) (7.5) 40.3 (37.2) (12.8) (130.0) (147.3)
(*1) (Collateral value after considering haircuts + allowance for loan losses) / Loan balance (*2) Allowance for loan losses / (Loan balance—collateral value after considering haircuts)
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Effect of European sovereign debt crisis
Credit exposure to Europe is constituted mainly by those of Germany, U.K. and France No sovereign exposure to GIIPS, and limited exposure to private corporations
Foreign currency funding is constituted mainly by CCS and foreign exchange forward to ensure stable funding
<Credit exposure to Europe>
(Billions of yen)
Exposure to Europe Sovereign Corporations (*1) Financial institutions
Sep.2011
558.1 89.7 468.4 158.8
Germany 159.7 32.7 127.0 20.0
U.K. 129.7 19.7 110.0 30.8
France 111.8—111.8 66.9
GIIPS(*2) 8.9—8.9—
(*1) Excl. I/B transaction (*2) Greece, Italy, Ireland, Portugal and Spain
<Foreign currency B/S (as of Sep.2011)>
(Billions of USD)
<Overview of foreign exchange funding >
(1) |
| Bond investments are basically covered by repo transactions |
(2) Loans and credit securities, etc. are covered by stable funding mainly by CCS and FWD converting Japanese yen into foreign currencies Net of Japanese B/S stood at approx. 2.6 trillion yen of excess funding, thus have enough room to convert Japanese yen into foreign currencies (3) Promote diversification of fund suppliers and funding method such as customer deposits, deposit from central banks, USCPs, etc.
(4) |
| Net deposit side at I/B transactions |
Loans 18.5
Credit securities 7.0
Other investment 0.9
Net I/B depo 4.0
Bond investments 5.8
Customer deposits 3.8
Foreign currency
Deposit converted 13.2
From JPY
Deposits from central banks, 13.5
USCPs, etc.
Subordinated debt 1.1
Repo 4.6
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For detail, please refer to P45
Securities portfolio and interest rate risk
Cost of available-for-sale securities decreased by 548.1 billion yen from Mar. 2011 to 6,807.8 billion yen, due to the decrease in others resulting from the selling of foreign government bonds, while Japanese bonds increased by the effect of consolidation of Japan trustee Services Bank (effected amount: approx0. 650.0 billion yen)
Unrealized gains/ losses of available-for-sale securities stood at the net gains of 15.3 billion yen, as a result of improvement of unrealized gains/ losses of Japanese bonds, while unrealized gains of Japanese stocks decreased
Ratio of Japanese stocks to Tier I capital increased by 1.7 points to 42.8% over the same period, mainly due to the increase in Japanese stocks by approx. 31.0 billion yen resulting from the revaluation in accordance with the purchase accounting method
< Breakdown of securities with fair value >
(Billions of yen)
Available-for-sale securities Japanese stocks Japanese bonds Others
Held-to-maturity debt securities
Costs
Mar. 2011
7,356.0
873.9
4,050.6
2,431.4
Sep. 2011
6,807.8
893.1
4,411.1
1,503.5
Change (548.1) 19.2 360.4 (927.8)
[Fair value]
Mar. 2011
7,424.2
957.1
4,058.5
2,408.5
Sep. 2011
6,823.1
838.5
4,453.9
1,530.7
Change (601.0)
(118.6)
395.3
(877.7)
unrealized gains/losses
Mar. 2011
68.1
83.2
7.8
(22.9)
Sep. 2011 15.3 (54.6) 42.7 27.2
Change (52.8) (137.9) 34.9 50.1
724.8
649.4
(75.4)
775.0
685.8
(89.2)
50.1
36.3
(13.7)
Cross shareholdings as % of Tier I (Consolidated)
(Billion of yen)
Effect of applying purchase accounting method
Costs of shareholdings
Share holdings/Tier l capital
1,500.0
1,250.0
1,000.0
750.0
500.0
250.0
51.0%
53.5%
44.8%
41.1%
42.8%
31.0
60%
50%
40%
30%
20%
10%
Mar. 2008
Mar. 2009
Mar. 2010
Mar. 2011
Sep. 2011
995.8
914.3
872.8
862.1
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Interest rate risk
(Billions of yen, %)
Total interest risk Tier I + Tier II Outlier ratio
CMTB (Non-consolidated)
Mar. 2011 Actual 53.9 1,069.8 5.1%
Sep. 2011 Preliminary 17.5 1,076.5 1.6%
Change (36.4) 6.6 (3.4%)
Total interest risk Tier I + Tier II Outlier ratio
STB (Consolidated)
65.5
1,980.5
3.3%
13.5
2,008.5
0.7%
(52.0)
27.9 (2.%)
SUMITOMO MITSUI TRUST HOLDINGS
23
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Status of capital, financial and capital policies
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For detail, please refer to P46
Status of capital and public funds
Consolidated Tier I capital ratio increased to 11.65% as of Sep. 2011, as a result of decrease in risk-weighted assets, in addition to the increase in Tier I capital through accumulation of retained earnings
Credit risk-weighted assets decreased due to the decrease in the balance of loans, mainly those to corporations
< Status of capital and total risk-weighted assets
(No.1 standard: International standard for bank holding company) (Consolidated) >
(Billions of yen) Total qualifying capital Tier I capital Shareholders’ equity Preferred shares Minority interests Preferred securities Tier II capital Subordinated debts Deduction (double gearing, etc.)
Total risk-weighted assets
Amount of credit risk-weighted assets
BIS capital adequacy ratio Tier I capital ratio
Mar. 2011 Simulation (*)
2,922.0
2,045.5
1,714.7
109.0
510.6
463.5
990.3
971.9
(113.8)
18,754.1
17,384.0
15.58% 10.90%
Sep. 2011 Preliminary
2,954.0
2,082.8
1,781.2 (1)
109.0
512.0
463.5
982.1
970.4 (2)
(111.0)
17,874.5 16,564.0 (3)
16.52% 11.65%
(*) Simulation after considering effects related to the management integration based on consolidated two-company total. (Please refer to P46)
(1) |
| Shareholders’ equity: +?66.5bn |
?Net income (Excl. amortization of negative goodwill): +?84.6bn (2) Debt capital: ?(1.5)bn?Domestic public offering of subordinated corporate bonds: +?43.0bn?Amortization of subordinated debts: ?(36.0)bn, etc.
(3) |
| Credit risk-weighted assets: ?(0.81)trn |
?Corporates: approx. ?(0.36)trn, equities, etc.: approx. ?(0.10)trn, etc.
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Repayment of public funds
Preferred shares
Common shares
(Billions of yen)
Buy back
Market sales
Public fund
500.0
400.0
300.0
200.0
100.0
0.0
32.00
37.00
86.40
76.50
432.25
400.25
363.25
200.35
200.35
Mar.2006
Mar.2007
Mar.2008
Mar.2009
Mar.2011
?Due to the management integration, the percentage of equity held by the government decreased to from approx. 30% to approx. 12%
? Surplus amount of the new group is approx. 800.0 billion yen, which far exceeds the public funds received
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All preferred shares converted into common shares in August 2009
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Financial and capital policies
Basic approach to financial and capital policies
Looking towards Basel III, we aim to maximize shareholder interests through the basic approach of ensuring adequate capital (in terms of both quality and quantity), enhancing our sound financial base, and pursuing enhanced capital efficiency
Financial targets
(Medium-term target)
Consolidated ROE: Approx. 10%
(FY2011 target levels)
Common equity Tier l ratio: Approx. 6% (improve) Consolidated Tier I capital ratio: Approx. 11% (maintain) Consolidated BIS capital adequacy ratio: Approx. 15% (maintain)
Policy on repayment of public funds
?Aim at early repayment, by methods such as sales in the market, corresponding to share price movement
?No plans for capital increase to repay public funds
Policy on reduction of cross shareholdings
We target cross shareholding balance (after adjusting hedge effects) of about 30% of consolidated Tier I under current regulations by end of March, 2014
Basic policy on returns for shareholders
Our basic policy is to share profits with shareholders in accordance with profit level of each fiscal year. Dividends policy for common shares; Target a consolidated dividend payout ratio of approximately 30%
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For detail, please refer to P47
[Reference] Response to new Basel regulations
Common equity Tier l ratio was 8.5%-9.0% as of Sep. 2011(around mid-5% level after deducting all deduction items). In a simulation based on the assumptions below, it will be 9.0%-9.5% when Basel III is partially introduced (Mar. 31, 2013). Through accumulation of retained earnings during the transition period, it will be possible to sufficiently achieve each requirement level.
Stricter regulations towards Basel III are expected to increase risk-weighted assets (RWA) by approx. 5% from the current level, and thus have limited effects. Continue to respond to regulations, focusing on efficient management of RWA and strict control of deduction items.
[Simulation of Common Equity Tier 1 ratio]
Common Equity Tier I ratio
After considering
phase-in arrangements
Deducting all deduction items
Phase-in arrangements
Requirement level
(Minimum capital requirements + Capital conservation buffer)
Sep. 2011
8.5%-9.0%
Mid-5%
Mar. 2013
(Partial Introduction)
9.0%-9.5%
Mid-6%
3.5%
Mar. 2019
(Full-scale Introduction)
Mid-9%
7.0%
Assumptions
(1) Net income as a foundation for accumulation of earnings: Net income for FY2011 is based on earnings forecast. From FY2012 onwards, 115.0 billion yen earnings estimate for FY2012 will continue.
(2) Deduction items from common equity Tier l: Apply phase-in of deduction which will become stricter each year after 2013 onwards, based on deduction amount as of Sep. 2011. (For detail, please refer to P47)
(3) Effect of increasing RWA toward Basel III: Reflect the assumed effects due to the stricter regulations, against the risk-weighted assets as of Sep. 2011.
(Billions of Yen)
Deduction items from Common Equity Tier I
Full deduction amount (estimate)
Approx. 600.0
(Billions of Yen)
Effect of increasing RWA toward Basel III
Increased amount (estimate)
Approx. 800.0
Ratio to RWA
5%
Comparison with Leverage ratios of major banks (As of Sep. 2011)
Estimation based on Basel III is higher than 3% which is the trial target level during the transition period.
Comparison based on current regulation shows that we have relative advantage against mega banks.
Reverage ratio
RWA/Total assets
Basel III
(Reference) Tier I capital (current regulation)) / Total assets
SMTH
Mage bank A Mega bank B Mega bank C
Leverage ratio Approx. 5% (*)
5.9%
4.8%
4.8%
3.8%
51%
37%
37%
32%
(*) Tier I capital under Basel III /
Exposure (On-balance items + Off-balance items) Estimation based on Basel III text. During the Estimation period (2013/1—2017/1), trial level is 3%
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Midterm Management Plan
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Framework of Midterm Management Plan
1. Continue Basic Strategy and Growth Strategy announced in the Management Integration Plan Framework of Growth Strategy (1) Allocating resources to growing trust and asset administration, etc. related fee businesses to develop market and to enhance market position
(2) Provide a variety of functions to our wide client base, and enhance basic profitability in the banking business through our further balanced loan portfolio
2. Segment the businesses of the new trust bank group into 6 business areas, after the merger of trust banks, and pursue expansion of earnings along with the Growth Strategy
Individual Client Base
Number of fixed type product(*) holders: approx. 2.4 million Average entrusted assets per client: approx. 8 million yen
(*) Products other than liquid deposits
Corporate Client Base
Clients listed on TSE 1 and TSE2: approx. 1,500 (excl. overlapping) Covering approx. 70% of listed companies (TSE 1 and TSE 2)
[ Provide Comprehensive Solutions] Consulting + Wide range of products and services
Retail financial servics
Wholesale financial services
Stock transfer agency services
Real estate
Fiduciary services
Global markets
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Image of business segments
Fusing 6 business functions, provide wide range of products and services to clients
Retail financial services
Bank Deposits
Fiduciary services
Asset administration
Sales of Investment Trusts and Insurances
Loans to Individuals
Real estate
Overseas asset management
Pension Trust
Testamentary trust/ business succession
Real estate NRL
Real Estate brokerage
Real Estate/Fund Management
Customer trading Client brokering IR/ SR consulting
Stock administration services
ALM
Investment
Global markets
Financial products sales
Corporate credit
Stock administration services
Stock transfer agency services
Wholesale financial services
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Business Strategy and Growth Indication
Strategic business areas
Sales of Investment Trusts and Insurances
Asset Management
Investment Trust
Real estate
Strategic keyword
Increase sales force, enhance wealth management
Retailization, globalization
Enhance management and product development capability, enhance sales capability Expand information channel, enhance information matching capability
Sales volume
Assets under management Assets under management Brokerage fees
FY2011 FY2015
Growth Indication
Approx. ?1.4trn
Approx. ?61trn
Approx. ?17trn
Approx. ?30.0bn
Approx. ?1.8trn
Approx. ?63trn
Approx. ?24trn
Approx. ?50.0bn
Basic earnings power areas
Strategic keyword
Loans
Individuals
Japanese corporations operating overseas
Retailization, globalization
Increase sales force, strengthen competitiveness by cost reduction Strengthen marketing to integrated client base, expand business areas
Loan balance Loan balance Loan balance
FY2011 FY2015
Growth indication
Approx. ?22trn Approx. ?6trn Approx. ?1trn
Approx. ?28trn Approx. ?10trn Approx. ?2trn
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Synergy effects
Pursue realization of synergy effects by FY2015 (60.0 billion yen per year; revenue synergy: 27.0 billion yen, cost synergy: 33.0 billion yen)
Absorb 69.0 billion yen of aggregated integration costs from FY2010 to FY2015 with aggregated synergies of 144.0 billion yen at the same period.
(Billions of yen)
Revenue Synergies Cost Synergies
Integration Costs (one-time cost)
60.0
50.0
40.0
30.0
20.0
10.0
0.0
-10.0
-20.0
-30.0
(2.0)
4.0 1.5 (10.0)
8.0 5.0
(21.5)
14.0
11.5 (10.0)
22.0 18.0 (14.5)
27.0
33.0
(11.0)
Aggregated integration costs from FY2010 to FY2015: 69.0 billion yen
In FY2016 and eyond
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
<Revenue Synergies> (FY2015)
Investment Trust and Insurance Sales
Loans to Individuals
Corporate credit/
Financial Products Sales
Loans to Japanese corporations
Operating overseas
Real Estate
Asset Management and administration
?8.0bn
?8.0bn
?4.0bn
?3.0bn
?2.0bn
?2.0bn
<Cost Synergies>(FY2015 )
Consoldation of Headquarters and Branches
IT System-related Costs
Personnel Costs
?17.0bn
?11.0bn
?5.0bn
<integratuion Costs> (From FY2010 to FY2015)
System Integration
Consolidation of Headquaters and Branches
Registration fee
?47.0bn
?9.0 n
?3.0 n
etc.
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Midterm revenue and financial targets
Midterm revenue and financial targets are as follows;
1.Revenue target: FY2015 consolidated net business profit before credit costs; approx. ?400.0bn, Consolidated net income; approx.
?200.0bn
2.Financial target: ROE (consolidated) approx. 10%, OHR (non-consolidated) approx. 40%
<Consolidated>
(Billions of yen) Net business profit before credit costs
Net income
ROE
FY2011 (Forecast) 320.0
180.0
approx. 8%
FY2011
after adjustment) (1)
275.0
FY2012 (Estimate) 275.0
115.0
approx. 7%
Basic scenario
Upside scenario
FY2015
(Target) (2)
400.0 200.0
approx. 9%
(2)—(1)
+125.0
FY2015
(Target) (3)
440.0 220.0 approx. 10%
(3)—(1)
+165.0
<Non-consolidated>
Net business profit before credit costs
Net income
OHR
235.0 100.0 51%
210.0
210.0 90.0 54%
310.0
155.0
43
+100.0
350.0 175.0 40%
+140.0
Details of adjustment
Exclude one-time revenue effect below <Consolidated>
Effect of purchase accounting method (one-time effect)
Stabilization of global markets business
<Non-consolidated>
Stabilization of global markets business
?20.0bn?25.0bn
?25.0bn
<Assumptions>
3M Tibor
10 yr JGB Nikkei 225
Mar. 2012 0.35% 1.10% 9,500
FY2012 0.35% 1.20% 10,000
Basic scenario FY2015
0.725%
1.60%
13,000
Upside scenario FY2015
0.85%
1.75%
14,000
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[For reference] Breakdown of profit by business
<Consolidated>
(Billions of yen) Net business profit before credit costs Total credit costs
Net income
FY2011 (Forecast)
320.0
(20.0)
180.0
FY2011
(after adjustment) (1)
275.0
FY2012 (Estimate)
275.0
(30.0)
115.0
Basic scenario
FY2015
(Target) (2)
400.0 (40.0) 200.0
(2)—(1)
+125.0
Upside scenario
FY2015
(Target) (3)
440.0 (40.0) 220.0
(3)—(1)
+165.0
<Non-consolidated>
Net business profit before credit costs
Gross business profit
Retail financial services
Wholesale financial services
Stock transfer agency services (*) Real estate
Fiduciary services (*)
Global markets General and administrative expenses
Total credit costs
Net income
235.0 485.0 143.0 118.0 31.0 29.0 87.0 125.0 (250.0) (15.0) 100.0
210.0 460.0 143.0 118.0 31.0 29.0 87.0 100.0 (250.0)
210.0 465.0 145.0 120.0
30.0
30.0
85.0 100.0 (255.0) (20.0)
90.0
310.0 550.0 170.0 140.0 35.0 45.0 100.0 105.0 (240.0) (30.0) 155.0
+100.0
+90.0
+27.0
+22.0
+4.0
+16.0
+13.0
+5.0
+10.0
350.0 590.0 190.0 150.0 35.0 50.0 105.0 105.0 (240.0) (30.0) 175.0
+140.0
+130.0
+47.0
+32.0
+4.0
+21.0
+18.0
+5.0
+10.0
(*) Excl. fees paid for outsourcing (Stock transfer agency services: \(15.0)bn, Fiduciary services: \( 25.0)bn)
Note: Figures of each business are tentative calculations based on certain assumptions (transfer pricing, etc.) under managerial accounting.
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[For reference] Measures to realize synergy effects
Revenue Synergies
Business Synergies
Retail
Investment Trust and Insurance Sales Loans to Individuals
Wholesale
Corporate Credit and others
Financial Products Sales
Loans to Japanese corporations operating overseas
Real Estate
Asset Management and Administration
Pension and Securities Business
Investment Trust Management
Redeployment of headcount
Approx. 500
Approx. 400
Approx. 100
Approx. 50
Approx. 30
Approx. 20
Strategy
Measures to be Implemented
Substantially Increase the number of sales force, share products and know-how on sale
Increase the number of sales force (+50 from previous plan)
Expand fee business, Including syndicated loans and asset securitization, in conjunction with the Improvement of the Group’s market position
Increase financial products sales, such as private fund trusts, by leveraging the expanded client base
Increase the number of sales force, capture the financing needs for Japanese corporate clients through overseas offices
Redeployment of employees to the front office, Increase Information matching capabilities in conjunction with the expansion of the client base
Offer well regarded active funds/ alternative products to combined client base. Expand balance of entrusted investments trust through realized synergies from investment trusts and insurance sales
Redeployment of employees with specialized knowledge to reinforce the investment trust product development capabilities and sales support functions for distribution companies (Increase the sales of Investment trusts for retail clients)
Synergy Effects (FY2015)
16.0bn
8.0bn
8.0bn
7.0bn
3.5bn
0.5bn
3.0bn
2.0bn
2.0bn
Cost Synergies
Segment
Consolidation of Headquarters and Branches
It System-related Costs
Personnel Costs
Measures to be Implemented
Consolidate overlapping branches from 2014 onward, after the integration of banking IT systems
Consolidate/ integrate IT systems including accounting/ information systems, etc. in FY2014
Expect natural decrease of employee by approx. 1,000 by FY2015 through saving of new hiring etc.
Synergy Effects (FY2015)
17.0bn
11.0bn
5.0bn
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(Supplement 1)Credit portfolio
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International credit investment
International credit investment steadily decreased by 109.9 billion yen from Mar. 2011 to 1,015.5 billion yen
Available-for-sale securities decreased by 67.1 billion yen over the same period mainly due to the redemption. Unrealized gains/losses decreased by 3.8 billion yen, but still maintain unrealized gains of 9.3 billion yen
Held-to-maturity debt securities steadily decreased by 69.3 billion yen over the same period due to the redemption
Balance of loans to overseas non-Japanese borrower increased by 28.3 billion yen to 321.6 billion yen over the same period, as a result of making loans to sound corporations
Sep. 2011
Sep. 2011
Sep. 2011
Change from
Unrealized
Change from
Unrealized
Amount
North America
Europe
Mar. 2011
Mar. 2011
(Billions of yen)
gains/losses
gains/losses ratio
Available-for-sale securities (*1)
305.5
16.8
163.4
(67.1)
9.3
(3.8)
3.0%
Asset-backed securities
3.9
0.4
3.2
(0.6)
7.3
(2.2)
187.0%
Corporate bonds
301.5
16.3
160.2
(66.5)
1.9
(1.6)
0.6%
Bonds issued by financial institutions
65.6
5.0
43.9
(11.6)
(0.3)
0.1
(0.4%)
Held-to-maturity debt securities (*2)
364.0
156.2
172.7
(69.3)
25.7
(14.4)
7.0%
Asset-backed securities
162.3
95.0
67.2
(47.9)
27.3
(13.3)
16.8%
CLO
104.2
75.4
28.7
(14.2)
17.6
(6.7)
16.9%
RMBS
36.4
—
36.4
(26.6)
5.4
(4.7)
15.0%
Corporate bonds
201.7
61.2
105.5
(21.3)
(1.6)
(1.1)
(0.7%)
Loans to overseas non-Japanese borrowers (*3)
321.6
60.8
132.1
28.3
Securities with no available fair value
24.3
(1.8)
Total international credit investment
1,015.5
233.9
468.4
(109.9)
(*1) Other than above mentioned, there are US residential mortgage related GSE bonds of 236.7 billion yen (Constituted by GNMA only).
(*2) Unamortized amount of unrealized loss related to ABS transferred to held-to-maturity securities (before considering tax effect): (47.6) billion yen ( *3) Definition has been changed to that which includes domestic yen-denominated loans to borrowers which final risk belongs to non-Japanese corporations, etc.
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Loans to nonbank financial industry: Non-consolidated (Two-company total)
Outstanding balance of loans to the nonbank financial industry continued to decrease, against a backdrop of shrinking market of leasing and consumer finance industry
Making loans mainly to manufacturing related finance company which take roles of group finance and sales finance
Outstanding loans to nonbank financial industry (*1)
Credit card & other consumer credit (Manufacturing)
Credit card & other consumer credit (Other)
Leasing
Consumer finance
Business finance
Others
(Billions of yen)
2,000.0
1,500.0
1,000.0
500.0
0.0
2,057.3
122.2
351.2
109.2
594.4
513.4
366.6
Mar.2011
1,849.4
92.8
327.0
114.4
564.8
428.0
322.2
Sep.2011
(*1) Figures are tentative calculations combining standardized managerial figures of CMTB and STB for descriptive purposes. Loans to government agency, money market dealer (Tanshi kaisha), etc. are excluded.
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Characteristics of borrowers by industry
Nonbank financial (Independent)
Financial institution
Ordinary industry (*2)
Manufacturing
100%
80%
60%
40%
20%
0%
33%
34%
15%
18%
Mar.2011
31%
34%
17%
18%
Sep.2011
(*2)Ordinary industry: Retail / Services etc.
Characteristics of borrowers by rating (parent company basis) (*3)
(*3) On internal credit ratings basis (show n by rating marks based on the general correspondence to external credit ratings)
Below BB
BBB
AA or higher
A
100%
80%
60%
40%
20%
0%
19%
44%
15%
22%
Mar.2011
17%
44%
21%
18%
Sep.2011
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Real estate-related loans (NRLs): Non-consolidated (Two-company total)
Outstanding balance of real estate-related loans decreased by 60.1 billion yen from Mar. 2011, due to the decrease in loans to real estate companies and to REIT
Outstanding balance of real estate NRL remained almost flat at 1,286.7 billion yen, continuously working on maintaining soundness of existing transactions by early refinancing, etc.
Balance of real estate-related loans
Mar. 2011
Sep. 2011
Change
(Billions of yen)
Real estate-related loans
2,782.0
2,721.9
(60.1)
Corporate
1,082.7
1,033.2
(49.4)
NRL (*)
1,285.7
1,286.7
0.9
REIT
403.9
393.3
(10.5)
CMBS
9.5
8.5
(0.9)
(*) Include bon-type
<reference>
Real estate equity investment
33.0
33.4
0.4
Changes in balance of real estate NRL and loans to REIT
(Billions of yen)
Mar. 2011
Change from
Sep. 2011
Advance
Collection
(+)
(-)
Mar. 2011
1,689.7
292.9
302.6
(9.6)
1,680.0
Characteristics of real estate NRL
<By area of underlying assets>
Tokyo 5 central wards (a)
Tokyo Met. Area
Tokyo (excl. (a))
Other
14%
63%
11%
12%
<By underlying assets>
Office
Residential
Commercial
Other
8%
26%
7%
59%
LTV of real estate NRL (based on external appraisal value)
70% or below
70%-90%
Over 90%
1.5%
9.7%
88.8%
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(Supplement ?) Financial results and finance-related
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Non-consolidated financial results
Non-consolidated CMTB + CMAB STB
(Three-company total) (Non-consolidated) (Non-consolidated)
1HFY2010 1HFY2011 1HFY2010 1HFY2011 1HFY2010 1HFY2011
(Billions of yen) Change Change Change
Net business profit before credit costs 119.7 129.5 9.8 59.3 51.2 (8.0) 60.4 78.2 17.8
Gross business profit 240.6 250.8 10.1 115.6 108.0 (7.6) 124.9 142.7 17.7
Net interest income and related profit 124.9 123.4 (1.4) 53.5 55.8 2.3 71.4 67.5 (3.8)
Net fees and commissions 83.7 79.4 (4.2) 42.0 38.7 (3.2) 41.7 40.7 (1.0)
and related profit
Net trading profit 7.0 3.1 (3.9) 1.4 1.6 0.1 5.6 1.5 (4.1)
Net other operating profit 24.9 44.7 19.8 18.7 11.8 (6.9) 6.2 32.9 26.7
Net gains on bonds 34.6 50.6 16.0 19.3 13.6 (5.6) 15.3 37.0 21.6
General and administrative expenses (120.9) (121.2) (0.3) (56.3) (56.7) (0.3) (64.5) (64.5) 0.0
Net non-recurring profit, etc. (28.8) (42.0) (13.1) (11.1) (25.6) (14.5) (17.7) (16.3) 1.4
Reversal of allowance for loan losses — 1.9 1.9 ———— 1.9 1.9
Net gains on stocks (1.4) (23.2) (21.8) 1.5 (12.6) (14.2) (2.9) (10.6) (7.6)
Amortization of (13.0) (11.7) 1.2 (6.8) (6.6) 0.1 (6.2) (5.1) 1.1
unrecognized net actuarial loss
Ordinary profit 90.8 87.5 (3.2) 48.1 25.6 (22.5) 42.6 61.9 19.3
Extraordinary profit (6.3) (7.5) (1.2) 5.5 (3.4) (8.9) (11.8) (4.1) 7.7
Reversal of allowance for loan losses 11.8 — (11.8) 6.9 — (6.9) 4.8 — (4.8)
Impairment loss on shares of a subsidiary (15.2) — 15.2 ——— (15.2) — 15.2
Costs related to the Management Integration (4.3) (3.5) 0.7 (2.1) (2.1) 0.0 (2.1) (1.4) 0.7
Income before income taxes 84.5 79.9 (4.5) 53.7 22.1 (31.5) 30.7 57.7 27.0
Total income taxes 0.4 (22.3) (22.7) (17.3) (2.1) 15.2 17.7 (20.1) (37.9)
Net income 84.9 57.6 (27.2) 36.4 20.0 (16.3) 48.4 37.6 (10.8)
Total credit costs 11.0 (0.8) (11.8) 7.1 (2.6) (9.7) 3.8 1.8 (2.0)
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Breakdown of profits by business Gross business profit CMTB + CMAB STB
(Non-consolidated (Three-company total)) (Non-consolidated) (Non-consolidated)
1HFY2010 1HFY2010 1HFY2010 1HFY2011 1HFY2010 1HFY2011
(Billions of yen) Change Change Change
Retail financial services 73.2 70.7 (2.4) 36.8 37.4 0.5 36.3 33.3 (2.9)
Wholesale financial services 66.1 65.1 (1.0) 24.3 22.5 (1.8) 41.7 42.5 0.8
Stock transfer agency services 9.1 8.8 (0.2) 5.7 5.4 (0.3) 3.3 3.4 0.0
Gross business profit 16.8 16.5 (0.3) 9.5 9.3 (0.2) 7.2 7.1 (0.0)
Fees paid for outsourcing (7.6) (7.6) 0.0 (3.8) (3.9) (0.1) (3.8) (3.7) 0.1
Treasury and financial products 58.3 80.8 22.4 34.8 29.5 (5.2) 23.5 51.2 27.6
Fiduciary services 30.6 30.6 (0.0) 15.0 15.0 0.0 15.6 15.5 (0.0)
Gross business profit 42.8 42.9 0.1 19.5 19.6 0.1 23.2 23.3 0.0
Fees paid for outsourcing (12.1) (12.3) (0.1) (4.5) (4.6) (0.1) (7.6) (7.7) (0.0)
Real estate 13.1 7.5 (5.5) 6.6 3.3 (3.2) 6.5 4.2 (2.2)
Others (0.9) (4.1) (3.1) (2.0) 0.1 2.2 1.1 (4.2) (5.3)
Total 240.6 250.8 10.1 115.6 108.0 (7.6) 124.9 142.7 17.7
Net business profit before credit costs Net business profit before credit costs
(Non-consolidated (Three-company total)) (Consolidated)
1HFY2010 1HFY2010 1HFY2010 1HFY2010
(Billions of yen) Change Change
Retail financial services 11.7 9.4 (2.3) 16.2 14.0 (2.1)
Wholesale financial services 48.7 47.3 (1.3) 63.4 61.7 (1.6)
Stock transfer agency services 7.6 7.3 (0.2) 8.1 8.0 (0.0)
Treasury and financial products 52.9 75.0 22.1 52.9 75.0 22.1
Fiduciary services 16.3 16.0 (0.3) 22.4 22.6 0.1
Real estate 7.9 2.5 (5.3) 8.6 2.9 (5.6)
Others (18.0) (20.9) (2.9) (15.1) (0.9) 14.2
Total 119.7 129.5 9.8 148.5 175.6 27.0
(*1) Figures of Chuo Mitsui are tentative calculations based on certain assumptions (transfer pricing, etc.) under managerial accounting.
(*2) Figures for “Other” includes cost of capital funding, dividend of cross-shareholdings, general and administrative expenses of headquarters, etc.
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Contribution of major group companies to consolidated financial results
Net business profit before credit costs Net income
1HFY2010 1HFY2011 1HFY2010 1HFY2011
(Billions of yen) Change Change
Consolidated difference 28.8 46.0 17.1 1.1 70.4 69.2
Effect of purchase accounting method - 25.0 25.0 - 62.4 62.4
Contribution (before consolidated adjustments) (*1) 27.7 28.1 0.3 4.7 20.4 15.6
Excl. One-time effect (* 2) 27.7 28.1 0.3 14.6 20.4 5.8
STB Asset Management Co., Ltd. 0.3 0.3 (0.0) 0.2 0.1 (0.0)
Chuo Mitsui Asset Management Company, Limited. 0.2 0.0 (0.1) 0.1 0.0 (0.0)
Nikko Asset Management Co., Ltd. (Consolidated) 4.1 4.2 0.1 2.6 2.7 0.0
Japan Trustee Services Bank Ltd. 0.7 0.5 (0.2) 0.4 0.3 (0.0)
Sumitomo Trust & Banking Co. (U.S.A.) 0.5 0.9 0.4 0.3 0.5 0.2
Tokyo Securities Transfer Agent Co., Ltd. 0.1 0.3 0.2 0.0 0.2 0.2
Sumishin Realty Company Limited 0.3 0.1 (0.1) 0.1 (0.1) (0.3)
Chuo Mitsui Realty Company, Limited 0.0 0.0 (0.0) 0.0 0.0 (0.0)
STB Real Estate Investment Management Co., Ltd. 0.2 0.1 (0.0) 0.1 0.1 (0.0)
Chuo Mitsui Trust Realty Company, Limited (0.0) (0.0) 0.0 (0.0) (0.0) 0.0
Sumishin Panasonic Financial Services Co., Ltd. (Consolidated) 8.9 8.4 (0.4) 5.0 5.1 0.0
Sumishin Real Estate Loan & Finance, Ltd. 2.9 3.4 0.5 0.5 3.6 3.0
SBI Sumishin Net Bank, Ltd. (Consolidated) 0.7 1.1 0.4 0.7 1.6 0.8
Chuo Mitsui Guarantee Co., Ltd. 2.5 2.5 (0.0) 0.8 2.6 1.8
Sumishin Guarantee Company Limited 1.5 1.8 0.2 0.6 0.9 0.3
CMTB Equity Investments, Co., Ltd. 0.5 0.5 (0.0) 0.0 (0.2) (0.2)
On-time effect (*2) - - - (9.8) - 9.8
(*1) Exclude the amount of consolidation adjustments such as performance of holding company alone, elimination of dividend and amortization of goodwill, etc. (*2) Adjusted one-time effect of business restructuring of STB’s subsidiaries.
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General and administrative expenses
Non-consolidated (Three-company total) CMTB + CMAB (Non-consolidated) STB (Non-consolidated)
1HFY2010 1HFY2011 1HFY2010 1HFY2011 1HFY2010 1HFY2011
(Billions of yen) Change Change Change
Personnel expenses (50.1) (48.9) 1.1 (25.0) (25.4) (0.4) (25.0) (23.5) 1.5
Salaries etc. (47.3) (46.8) 0.4 (23.2) (24.0) (0.7) (24.0) (22.8) 1.2
Retirement benefit expenses 4.6 5.4 0.8 1.2 1.9 0.6 3.3 3.5 0.1
Others (7.3) (7.5) (0.2) (3.0) (3.3) (0.3) (4.3) (4.2) 0.1
Non-personnel expenses excluding taxes (65.2) (66.6) (1.4) (28.6) (28.8) (0.2) (36.6) (37.8) (1.2)
IT system-related costs (17.5) (17.3) 0.1 (8.0) (8.4) (0.4) (9.5) (8.9) 0.5
Others (47.6) (49.2) (1.6) (20.5) (20.3) 0.2 (27.0) (28.8) (1.8)
Taxes other than income taxes (5.6) (5.6) (0.0) (2.7) (2.4) 0.2 (2.9) (3.1) (0.2)
Total General and administrative expenses (a) (120.9) (121.2) (0.3) (56.3) (56.7) (0.3) (64.5) (64.5) 0.0
Overhead ratio ((a)/Gross business profit) 50.2% 48.3% (1.9%) 48.7% 52.5% 3.8% 51.6% 45.1% (6.5%)
(Reference) Consolidated
1HFY2010 1HFY2011
(Billions of yen) Change
Personnel expenses (77.6) (81.4) (3.7)
Non-personnel expenses excluding taxes (87.5) (97.0) (9.4)
Taxes other than income taxes (6.6) (6.5) 0.1
Total General and administrative expenses (a) (171.9) (185.0) (13.0)
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Securities portfolio (Details)
<Breakdown of securities with fair value (Consolidated)>
Costs Fair value Unrealized gains/ losses
(Billions of yen) Mar. 2011 Sep. 2011 Change Mar. 2011 Sep. 2011 Change Mar. 2011 Sep. 2011 Change
Available-for-sale securities 7,356.0 6,807.8 (548.1) 7,424.2 6,823.1 (601.0) 68.1 15.3 (52.8)
Japanese stocks 873.9 893.1 19.2 957.1 838.5 (118.6) 83.2 (54.6) (137.9)
Domestic bonds 4,050.6 4,411.1 360.4 4,058.5 4,453.9 395.3 7.8 42.7 34.9
Others 2,431.4 1,503.5 (927.8) 2,408.5 1,530.7 (877.7) (22.9) 27.2 50.1
Held-to-maturity debt securities 724.8 649.4 (75.4) 775.0 685.8 (89.2) 50.1 36.3 (13.7)
<Available-for-sale securities (Non-consolidated (Three-company total))>
Available-for-sale securities 7,291.8 6,071.0 (1,220.8) 7,341.7 6,098.0 (1,243.7) 49.8 26.9 (22.9)
Japanese stocks 813.5 790.8 (22.7) 878.7 766.5 (112.2) 65.1 (24.3) (89.5)
Domestic bonds 4,070.6 3,784.2 (286.4) 4,078.5 3,817.7 (260.7) 7.8 33.5 25.6
Government bond 3,238.6 2,954.9 (283.7) 3,244.7 2,983.5 (261.1) 6.0 28.6 22.6
Others 2,407.5 1,495.9 (911.6) 2,384.4 1,513.7 (870.7) (23.1) 17.7 40.9
Foreign government bonds 1,134.1 281.8 (852.3) 1,111.6 296.2 (815.3) (22.5) 14.4 36.9
US Treasury 928.0 186.4 (741.6) 910.3 197.6 (712.6) (17.7) 11.2 29.0
European government bonds 163.0 19.7 (143.3) 157.7 20.0 (137.6) (5.3) 0.3 5.6
US agency MBS 344.1 236.7 (107.4) 341.1 243.6 (97.5) (2.9) 6.8 9.8
Corporate bond (International) 368.1 301.5 (66.5) 371.6 303.5 (68.1) 3.5 1.9 (1.6)
<Held-to-maturity debt securities (Non-consolidated (Three-company total))>
Held-to-maturity debt securities 724.2 648.5 (75.7) 774.3 685.1 (89.2) 50.1 36.6 (13.5)
Japanese government bonds 184.4 174.4 (10.0) 192.3 182.4 (9.8) 7.9 8.0 0.1
Foreign bonds (Corporate) 223.0 201.7 (21.3) 222.5 200.0 (22.4) (0.4) (1.6) (1.1)
Asset-backed securities (International) (*) 210.3 162.3 (47.9) 251.0 189.7 (61.3) 40.7 27.3 (13.3)
(*) Unamortizaiton balance of unrealized loss on asset-backed securities which were reclassified from AFS to HTM during FY2008 (2011/9: (47.6)bn yen, 2011/3: (61.0)bn yen)
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Status of capital (Details)
<Status of capital and total risk-weighted assets (No.1 standard: International standard for bank holding company) (Consolidated)>
Mar. 2011 Mar. 2011 Sep. 2011
CMTH STB Preliminary
Combined total Projection (*)
(Billions of yen) (No.1 standard) (International standard) (No.1 standard)
Total qualifying capital 1,119.3 1,880.8 3,000.2 2,922.0 2,954.0
Tier I capital 791.1 1,333.9 2,125.0 2,045.5 2,082.8
Shareholders’ equity 660.6 1,188.8 1,849.4 1,714.7 1,781.2
Preferred shares — 109.0 109.0 109.0 109.0
Minority interests 187.8 303.5 491.4 510.6 512.0
Preferred securities 183.5 280.0 463.5 463.5 463.5
Goodwill equivalents (33.0) (123.2) (156.2) (123.2) (115.4)
Tier II capital 343.7 646.6 990.3 990.3 982.1
Subordinated debts 343.7 628.2 971.9 971.9 970.4
Deduction (double gearing, etc.) (15.4) (99.6) (115.1) (113.8) (111.0)
Total risk-weighted assets 6,927.0 12,028.0 18,955.0 18,754.1 17,874.5
Amount of credit risk-weighted assets 6,443.6 11,146.3 17,590.0 17,384.0 16,564.0
Amount of market risk equivalents / 8% 18.0 139.3 157.4 157.4 121.7
Amount of operational risk equivalents / 8% 465.2 742.3 1,207.5 1,212.6 1,188.7
BIS capital adequacy ratio 16.15% 15.63% 15.82% 15.58% 16.52%
Tier I capital ratio 11.42% 11.09% 11.21% 10.90% 11.65%
(*) Simulation after considering effects related to the management integration based on consolidated two-company total
<Effects related to the Management Integration> (i) Effects of purchase accounting method
?Tier I capital: approx. (100.0) billion yen ?Total risk-weighted assets: approx. (40.0) billion yen (ii) Others (consolidation of Japan Trustee Services Bank, and effect of standardization, etc.)?Tier I capital: approx. +20.0 billion yen ?Total risk-weighted assets: approx. (160.0) billion yen
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Basel III: Phase-in arrangements
2011/1 2012/1 2013/1 2014/1 2015/1 2016/1 2017/1 2018/1 2019/1
Minimum Common Equity Capital Ratio
+ Capital Conservation Buffer 3.5% 4.0% 4.5% 5.125% 5.75% 6.375% 7.0%
Minimum Common Equity Capital Ratio 3.5% 4.0% 4.5% 4.5% 4.5% 4.5% 4.5%
Capital Conservation Buffer (1) 0.625% 1.25% 1.875% 2.5%
Minimum Tier I Capital 4.5% 5.5% 6.0% 6.0% 6.0% 6.0% 6.0%
Minimum Total Capital (2) 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
Minimum Total Capital
+ Capital Conservation Buffer (1) +(2) 8.0% 8.0% 8.0% 8.625% 9.25% 9.875% 10.5%
Phase-in of deductions from Common Equity Tier I (20%) (40%) (60%) (80%) (100%) (100%)
Capital instruments that no longer qualify
as non-core Tier I or Tier II capital Recognition cap decreases by 10% in each subsequent year from 1 Jan 2013
Parallel run: 1 Jan 2013 - 1 Jan 2017 Migration to
Leverage Ratio Supervisory monitoring Disclosure starts: 1 Jan 2015 Pillar 1
Introduce
Liquidity coverage ratio (LCR) Observation minimum
period begins standard
Introduce
Net stable funding ratio (NSFR) Observation minimum
period begins standard
Partial introduction
Full-scale Basel II Transition period introduction
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Deferred tax assets < Deferred tax assets > Non-consolidated (Two-company total) CMTB STB Consolidated Mar. 2011 Sep. 2011 Sep. 2011 Sep. 2011 Mar. 2011 Sep. 2011 (Billions of yen) Change Change Change Change
Deferred tax assets (A) 277.9 279.1 1.2 152.8 4.6 126.2 (3.4) 311.2 351.1 39.8
Devaluation of securities 83.3 76.1 (7.1) 12.5 (2.1) 63.6 (4.9) 80.6 73.3 (7.2)
Allowance for loan losses (including written-off of loans) 56.0 47.9 (8.0) 16.2 (3.9) 31.7 (4.1) 66.8 58.2 (8.5)
Provision for retirement benefits 17.1 17.3 0.1 2.2 (0.5) 15.0 0.7 25.2 25.7 0.5
Loss carry forwards 75.0 77.5 2.5 77.5 2.5 - - 92.2 94.4 2.2
Valuation difference on available-for-sale securities 11.3 16.3 4.9 16.3 4.9 - - 11.9 9.2 (2.7)
Valuation allowance (28.7) (26.7) 1.9 (18.8) 3.4 (7.9) (1.5) (49.7) (45.0) 4.7
Deferred tax liabilities (B) 60.6 59.8 (0.8) 14.2 0.5 45.5 (1.3) 71.9 75.7 3.8
Employee retirement benefit trust 41.4 45.3 3.9 8.7 - 36.5 3.9 41.4 45.3 3.9
Valuation difference on available-for-sale securities 3.3 5.5 2.2 - - 5.5 2.2 7.6 - (7.6)
Net deferred tax assets (A) - (B) 217.3 219.3 2.0 138.6 4.1 80.7 (2.1) 239.2 275.3 36.0
Percentage to Tier I 10.3% 10.2% (0.1%) 18.6% 0.1% 5.8% (0.2%) - - 13.2% - -
< CMTB > (Billions of yen) FY2006 FY2007 FY2008 FY2009 FY2010
Taxable income before deduction of 63.0 158.4 (194.8) 92.8 65.5
loss carry forwards Net business profit before credit costs 148.8 127.2 93.2 92.8 88.6
(Reference) Estimated taxable income for further 5 years
Although there are significant operating loss carry forwards on the tax base, as the loss carry forwards are due to temporary factors, “examples (4) proviso” of Practical Guideline is applied. Period for estimated future taxable income is 5 years, which is allowed to record pursuant to Practical Guideline subject to rational earnings projection.
Sum of 5 years Projected amount of net business profit before 537.2
credit costs used for the estimation Projected amount of net income used for the estimation 435.3
Estimated amount of taxable income before adjustments 460.4
< STB > (Billions of yen) FY2006 FY2007 FY2008 FY2009 FY2010
Taxable income before deduction of 199.2 144.6 86.8 (3.0) 42.6
loss carry forwards
Net business profit before credit costs 175.9 173.8 201.0 175.4 129.7
STB falls under the company of which performances of past fiscal years are stable. Thus, the item 2 of the practical guideline is applicable.
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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 allowance 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 account 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
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(Supplement ?) division performance
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Retail financial services/ Wholesale financial services
Retail financial services/ Gross business profit Wholesale financial services/ Gross business profit
1HFY2010 1HFY2011
(Billions of yen) Change
Gross business profit 52.2 48.6 (3.6)
Net interest income, etc. 32.1 25.2 (6.9)
Individual loans 18.9 20.3 1.3
Deposits 10.9 4.9 (5.9)
Others 2.2 — (2.2)
Net fees and commissions 20.0 23.4 3.3
Investment trust/ Insurance 20.8 23.8 2.9
Others (0.7) (0.4) 0.3
(*) Before adjustment shown in P7 of this material.
1HFY2010 1HFY2011
(Billions of yen) Change
Gross business profit 85.6 84.1 (1.4)
Net interest income, etc. 61.8 62.2 0.3
Loans, etc. 58.9 59.0 0.1
Deposits 2.1 1.7 (0.4) Others 0.3 2.5 2.2 Net fees and commissions 23.7 21.9 (1.8)
Real estate NRL 4.8 3.1 (1.6)
Syndicated loan 7.9 8.1 0.2
Securitization 2.2 4.1 1.8
Stock transfer agency services 16.8 16.5 (0.3)
Fees paid for outsourcing (7.6) (7.6) 0.0
(*) Figures are tentative calculations based on certain assumptions (transfer pricing, etc.) under managerial accounting.
Volume of total depositary assets from individuals
Time deposits (Fixed rate) Time deposits (Variable rate) + Loan trust, Money trust Ordinary deposits Others Investment trust/ Insurance
(Trillions of yen) 20 15 10 5 0 20.4 21.2 21.6 21.7 3.7 4.2 4.3 4.2 1.7 1.5 1.4 1.4 1.7 1.8 2.1 2.2 1.3 1.0 0.8 0.7
11.8 12.5 12.8 13.0 Mar. 2009 Mar. 2010 Mar. 2011 Sep. 2011 Market share of stock transfer agency services(*) (as of Sep.2011)
< Number of listed corporate clients > < Number of shareholders under administration >
(*) Combined total of CMTB, STB, and Tokyo Securities Transfer Agent 38.8% 41.3%
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Treasury and financial products
Gross business profit
1HFY2010 1HFY2011 Change
(Billions of yen) CMTB STB CMTB STB CMTB STB
Financial operations 6.3 35.2 28.9
39.6 31.2 62.1 25.0 22.4 (6.2)
Investment operations 2.1 1.8 (0.2)
Marketing functions 18.7 3.5 15.1 18.6 4.5 14.1 (0.0) 0.9 (1.0)
Total 58.3 34.8 23.5 80.8 29.5 51.2 22.4 (5.2) 27.6
Note: Figures of CMTB are tentative calculations based on certain assumptions (transfer pricing, etc.) under managerial accounting.
<Financial operations> Financial operations managing potential market risks(*) involved in the overall balance sheet
(*) Interest rate risk associated with liquid deposits, equity risk, etc.
<Investment operations> Proprietary investment pursuing absolute return
<Marketing functions> Market-making operations for interest rate and forex products; Creation & Sales of financial products
Securities portfolio of treasury and financial products business
Cost Unrealized gains/losses 10BPV (*2) Duration (*2)
Sep. 2011 Change fm Sep. 2011 Change fm Sep. 2011 Change fm Sep. 2011 Change fm
(Billions of yen) Mar. 2011 Mar. 2011 Mar. 2011 Mar. 2011
JPY 3,234.1 (233.6) 36.2 5.7 10.3 (1.9) 3.7 (0.4)
Others 633.6 (824.1) 18.3 45.0 2.7 (5.2) 4.6 (1.3)
USD 561.2 (714.5) 16.3 37.9 2.3 (4.9) 4.1 (1.7)
EUR, etc. 72.4 (109.5) 1.9 7.1 0.3 (0.2) 5.3 1.3
(*1) Managerial reporting basis; “Held-to-maturity debt securities” and “Available-for-sale securities” are combined. (*2) In the calculation of 10BPV and duration, investment balance hedged by derivative transactions, etc. were excluded.
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Fiduciary services business (Trillions of yen)
Assets under management (AUM) (Consolidated) Entrusted Assets Public pension Investment discretion NAM
Corporate pension CMAM + STAM 75 60 45 30 15 0 57.7 64.1 65.7 59.0 8.8 10.4 12.8 12.0
3.0 3.7 3.8 3.6 27.0 28.1 27.1 22.9 11.8 13.7 13.7 12.6 7.0 8.0 8.2 7.7
Mar. 2009 Mar. 2010 Mar. 2011 Sep. 2011 (Non-consolidated (Two-company total))
(Trillions of yen) 100 75 50 25 0 76.8 88.2 90.4 87.0
23.2 30.2 32.8 29.6 21.0 23.1 23.4 25.3 7.2 5.9 5.6 5.5 6.4 7.0 6.5 6.0
11.8 13.7 13.7 12.6 7.0 8.0 8.2 7.7 Mar. 2009 Mar. 2010 Mar. 2011 Sep. 2011 Balance of alternative investment (Corporate pension)
(Non-consolidated (Two-company total)) (Billions of yen)
Balance of alternative investment
1,500.0
1,250.0
1,000.0
750.0
500.0
250.0
0.0
1,246.4
1,176.6
1,275.5
1,348.5
Mar. 2009 Mar. 2010 Mar. 2011 Sep. 2011
Global custody business
(in USD millions)
Gross profit (left)
Custodial asset (right)
(in USD billions)
100 80 60 40 20 0
200 150 100 50 0
FY2008 FY2009 FY2010 1HFY2011
84 145 53 167 54 209 35 192
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Financial related business in group companies 1. Nikko AM (Consolidated)
Assets under management (AUM) P/L
International institutional investors
Domestic institutional investors
Domestic retail investors (Trillions of yen)
12.0 10.0 8.0 6.0 4.0 2.0 0.0 8.81 10.44 12.80 12.09
0.52 1.01 2.36 2.28
2.39 2.44 2.18 2.12
5.89 6.98 8.25 7.67
Mar. 2009 Mar. 2010 Mar. 2011 Sep. 2011
FY2008 FY2009 FY2010 FY2011
(Billions of yen) Full Full Full 1H
Net cash inflow/outflow (184.0) (0.8) 263.5 326.0
1HFY2010 1HFY2011
(Billions of yen) Change
Net business profit 3.4 3.8 0.4
Ordinary income 3.9 4.3 0.3
Net income 2.5 2.7 0.1
Breakdown of AUM by asset type
Domestic stocks
Domestic bonds
Overseas stocks
Others
Overseas bonds
100% 80% 60% 40% 20% 0%
Mar. 2009 Mar. 2010 Mar. 2011 Sep. 2011
40% 39% 36% 36%
19% 16% 12% 13%
15% 16% 25% 26%
8% 10% 13% 11%
18% 19% 14% 14%
Copyright © 2011 SUMITOMO MITSUI TRUST HOLDINGS, INC. All rights reserved.
SUMITOMO MITSUI TRUST HOLDINGS
54
Table of Contents
Financial related business in group companies
2. SBI Sumishin Net Bank (Consolidated)
Major business figures Balance of loans and deposits Mar. 2011 Sep. 2011
(Billions of yen) Actual Actual Change
Number of account (millions) 1.04 1.22 0.17
Deposits 1,552.3 1,903.9 351.6
Loans 748.0 820.3 72.2 P/L 1HFY2010 1HFY2011 (Billions of yen) Change
Net business profit 1.5 2.5 0.9 Ordinary income 1.4 2.5 1.0 Net income 1.4 3.2 1.7 B/S Mar. 2011 Sep. 2011
(Billions of yen) Actual Actual Change
Total assets 1,696.1 1,984.6 288.5 Net assets 41.2 38.6 (2.5)
Shareholders’ equity 42.0 45.2 3.2 (Billions of yen) 1,750.0 1,500.0
1,250.0 1,000.0 750.0 500.0 250.0 0.0 Loans Deposits
219.7
629.9
442.4
1,193.7
748.0
1,552.3
820.3
1,903.9
Mar. 2009 Mar. 2010 Mar. 2011 Sep. 2011
Synergy effects with SBI group
Enhance management capability
The volume of auto loans increased steadily through the cooperation with SBI Credit and SBI Auto Support ?Represents approx. 85% of execution amount in 1HFY2011 (Execution amount) 2HFY2009: Approx. 2.0bn?1HFY2011: approx. 19.0bn
Enhance funding capability
SBI Securities terminated the sales of new Money Reserve Fund (MRF) in Jun. 2011 ?Balance of SBI hybrid deposits, etc. increased significantly by 351.6 billion yen in 1HFY2011
Copyright © 2011 SUMITOMO MITSUI TRUST HOLDINGS, INC. All rights reserved.
SUMITOMO MITSUI TRUST HOLDINGS
55
Table of Contents
Financial related business in group companies
3. Leasing, real estate-related finance, housing loans (Billions of yen) 1,200.0 1,000.0 800.0 600.0 400.0
200.0 0.0 1,071.7 1,082.5
1,092.4 995.8
88.8 122.1 123.4 94.8
95.4 94.6 89.1 81.4
887.4 865.8 879.8 819.5
Mar. 2009 Mar. 2010 Mar. 2011 Sep. 2011
(Billions of yen)
Loans Loans (before securitization)
300.0 250.0 200.0 150.0 100.0 50.0 0.0
132.3 164.0 144.3 182.9 222.2 267.3 230.8 273.4
Mar. 2009 Mar. 2010 Mar. 2011 Sep. 2011
Sumishin Panasonic Financial Services (Consolidated) Sumishin Real Estate Loan & Finance
1HFY2010 1HFY2011
(Billions of yen) Change
Net business profit 10.0 9.3 (0.6)
Leasing profit 158.2 167.9 9.7
Leasing expense (137.3) (148.9) (11.6)
G&A expense (10.8) (9.5) 1.2
Ordinary profit 9.9 9.3 (0.5)
Net income 6.0 5.5 (0.4)
Total credit costs (*) (0.4) (0.6) (0.2)
(*) Total credit costs are included in Leasing expense and G&A expense.
1HFY2010 1HFY2011
(Billions of yen) Change
Ordinary profit 0.8 2.2 1.3
Net income 0.7 1.8 1.0
Total credit costs (0.1) 0.0 0.1
(*) Figures for 1HFY2010 are those of former Life Housing Loan.
Copyright © 2011 SUMITOMO MITSUI TRUST HOLDINGS, INC. All rights reserved.
SUMITOMO MITSUI TRUST HOLDINGS
56
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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 annual report on Form 20-F 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.
SUMITOMO MITSUI TRUST HOLDINGS
Table of Contents
Supplemental material on financial results
2nd Quarter of Fiscal Year 2011 ended on Sep. 30, 2011
[Revised Edition. November 24, 2011]
Table of Contents
<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, The Sumitomo Trust and Banking Co., Ltd. (referred to hereinafter as “Sumitomo Trust”) hereby cautions against sole reliance on such forward-looking statements in making investment decisions.
Table of Contents
1. Breakdown of profit by business group
(1) Gross business profit before credit costs
[Non-consolidated (CMTB + CMAB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||
1HFY2011 | 1HFY2010 | Change | ||||||||||||||||||||||||||
Total | CM (*1) | STB | Total | Total | CM (*1) | STB | ||||||||||||||||||||||
Retail financial services | 70.7 | 37.4 | 33.3 | 73.2 | (2.4 | ) | 0.5 | (2.9 | ) | |||||||||||||||||||
Wholesale financial services | 72.8 | 26.4 | 46.3 | 73.8 | (1.0 | ) | (1.7 | ) | 0.7 | |||||||||||||||||||
Stock transfer agency services | 16.5 | 9.3 | 7.1 | 16.8 | (0.3 | ) | (0.2 | ) | (0.0 | ) | ||||||||||||||||||
Treasury and financial products | 80.8 | 29.5 | 51.2 | 58.3 | 22.4 | (5.2 | ) | 27.6 | ||||||||||||||||||||
Fiduciary services | 42.9 | 19.6 | 23.3 | 42.8 | 0.1 | 0.1 | 0.0 | |||||||||||||||||||||
Real estate | 7.5 | 3.3 | 4.2 | 13.1 | (5.5 | ) | (3.2 | ) | (2.2 | ) | ||||||||||||||||||
Fees paid for outsourcing | (20.0 | ) | (8.5 | ) | (11.5 | ) | (19.8 | ) | (0.1 | ) | (0.2 | ) | 0.0 | |||||||||||||||
Stock transfer agency services | (7.6 | ) | (3.9 | ) | (3.7 | ) | (7.6 | ) | 0.0 | (0.1 | ) | 0.1 | ||||||||||||||||
Fiduciary services | (12.3 | ) | (4.6 | ) | (7.7 | ) | (12.1 | ) | (0.1 | ) | (0.1 | ) | (0.0 | ) | ||||||||||||||
Others (*2) | (4.1 | ) | 0.1 | (4.2 | ) | (0.9 | ) | (3.1 | ) | 2.2 | (5.3 | ) | ||||||||||||||||
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Gross business profit before credit costs | 250.8 | 108.0 | 142.7 | 240.6 | 10.1 | (7.6 | ) | 17.7 | ||||||||||||||||||||
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(*1) | Combined figures of CMTB and CMAB. Figures of CM are tentative calculations based on certain assumptions (transferpricing, etc.) under managerial accounting. |
(*2) | Net of dividend income, cost of capital sourcing and head office expense is included. |
1
Table of Contents
(2) Net business profit before credit costs
[Consolidated]
Billions of Yen | ||||||||||||
1HFY2011 (*1) | 1HFY2010 (*1) | Change | ||||||||||
Retail financial services | 14.0 | 16.2 | (2.1 | ) | ||||||||
Wholesale financial services | 61.7 | 63.4 | (1.6 | ) | ||||||||
Stock transfer agency services | 8.0 | 8.1 | (0.0 | ) | ||||||||
Treasury and financial products | 75.0 | 52.9 | 22.1 | |||||||||
Fiduciary services | 22.6 | 22.4 | 0.1 | |||||||||
Real estate | 2.9 | 8.6 | (5.6 | ) | ||||||||
Others (*2) | (0.9 | ) | (15.1 | ) | 14.2 | |||||||
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Net business profit before credit costs | 175.6 | 148.5 | 27.0 | |||||||||
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(*1) | Consolidated figures are tentative calculations based on certain assumptions (transferpricing, etc.) under managerial accounting. |
(*2) | Net of dividend income, cost of capital sourcing and head office expense is included. |
[Non-consolidated (CMTB + CMAB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||
1HFY2011 | 1HFY2010 | Change | ||||||||||||||||||||||||||
Total | CM (*3) | STB | Total | Total | CM (*3) | STB | ||||||||||||||||||||||
Retail financial services | 9.4 | 6.8 | 2.5 | 11.7 | (2.3 | ) | 0.5 | (2.9 | ) | |||||||||||||||||||
Wholesale financial services | 47.3 | 16.1 | 31.2 | 48.7 | (1.3 | ) | (1.9 | ) | 0.5 | |||||||||||||||||||
Stock transfer agency services | 7.3 | 4.4 | 2.8 | 7.6 | (0.2 | ) | (0.3 | ) | 0.0 | |||||||||||||||||||
Treasury and financial products | 75.0 | 28.4 | 46.6 | 52.9 | 22.1 | (5.2 | ) | 27.4 | ||||||||||||||||||||
Fiduciary services | 16.0 | 7.8 | 8.1 | 16.3 | (0.3 | ) | (0.3 | ) | 0.0 | |||||||||||||||||||
Real estate | 2.5 | 1.1 | 1.4 | 7.9 | (5.3 | ) | (3.2 | ) | (2.1 | ) | ||||||||||||||||||
Others (*4) | (20.9 | ) | (9.1 | ) | (11.7 | ) | (18.0 | ) | (2.9 | ) | 2.1 | (5.1 | ) | |||||||||||||||
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Net business profit before credit costs | 129.5 | 51.2 | 78.2 | 119.7 | 9.8 | (8.0 | ) | 17.8 | ||||||||||||||||||||
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(*3) | Combined figures of CMTB and CMAB. Figures of CM are tentative calculations based on certain assumptions (transferpricing, etc.) under managerial accounting. |
(*4) | Net of dividend income, cost of capital sourcing and head office expense is included. |
2
Table of Contents
[Consolidated]
Billions of Yen | ||||||||||||
1HFY2011 (*1) | 1HFY2010 (*1) | Change | ||||||||||
Net fees and commissions | 97.4 | 86.1 | 11.2 | |||||||||
Retail financial services | 30.0 | 26.7 | 3.2 | |||||||||
Wholesale financial services | 29.1 | 30.6 | (1.4 | ) | ||||||||
Stock transfer agency services | 17.9 | 17.9 | (0.0 | ) | ||||||||
Real estate | 10.3 | 15.4 | (5.0 | ) | ||||||||
Fiduciary services | 34.7 | 31.5 | 3.2 | |||||||||
Fees paid for outsourcing | (6.8 | ) | (15.4 | ) | 8.5 | |||||||
Stock transfer agency services | (3.4 | ) | (3.2 | ) | (0.2 | ) | ||||||
Fiduciary services (*2) | (3.4 | ) | (12.1 | ) | 8.7 | |||||||
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Other trust fees | 44.5 | 42.3 | 2.2 | |||||||||
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Wholesale financial services | 1.0 | 0.8 | 0.2 | |||||||||
Real estate | 2.4 | 3.1 | (0.6 | ) | ||||||||
Fiduciary services | 40.4 | 37.6 | 2.7 | |||||||||
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Net fees and commissions and related profit | 141.9 | 128.4 | 13.4 | |||||||||
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(*1) | Figures are tentative calculations based on certain assumptions (transferpricing, etc.) under managerial accounting. |
(*2) | Fees paid for outsourcing decreased, because those to Japan Trustee Services Bank, which became a consolidated subsidiary, are recognized as Intra-group transaction. |
Fee revenue ratio | 39.4 | % | 40.8 | % | (1.4 | %) | ||||||
Consolidated gross business profit | 359.9 | 314.3 | 45.5 |
3
Table of Contents
[Consolidated]
Millions of Yen | ||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | Change | Sep. 2011 | Mar. 2011 | Change | |||||||||||||||||||
(Banking a/c and Principal guaranteed trust a/c combined) | (Banking a/c) | |||||||||||||||||||||||
Risk monitored loans | 278,879 | 283,870 | (4,990 | ) | 233,683 | 259,779 | (26,095 | ) | ||||||||||||||||
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Loans in bankruptcy proceedings | 20,111 | 27,259 | (7,147 | ) | 20,098 | 27,245 | (7,146 | ) | ||||||||||||||||
Other delinquent loans | 170,746 | 129,839 | 40,906 | 126,027 | 114,115 | 11,911 | ||||||||||||||||||
Loans past due 3 months or more | 263 | 43 | 220 | 263 | 43 | 220 | ||||||||||||||||||
Restructured loans | 87,757 | 126,728 | (38,971 | ) | 87,293 | 118,375 | (31,081 | ) | ||||||||||||||||
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Total loan balance | 20,932,626 | 21,061,240 | (128,614 | ) | 20,561,278 | 20,659,253 | (97,975 | ) | ||||||||||||||||
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(Ratio to total loan balance) | 1.3 | % | 1.3 | % | 0.0 | % | 1.1 | % | 1.3 | % | (0.2 | %) | ||||||||||||
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(*) | Partial direct written-off: Sep. 2011: 73,272 millions yen, Mar. 2011: 81,231 million yen |
[Non-consolidated (CMTB + STB)]
(Banking a/c and Principal guaranteed trust a/c combined)
Millions of Yen | ||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||
Total | CMTB | STB | Total | Total | CMTB | STB | ||||||||||||||||||||||
Risk monitored loans | 232,389 | 95,943 | 136,445 | 236,808 | (4,419 | ) | 7,752 | (12,172 | ) | |||||||||||||||||||
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Loans in bankruptcy proceedings | 17,995 | 3,661 | 14,334 | 24,512 | (6,517 | ) | (6,340 | ) | (176 | ) | ||||||||||||||||||
Other delinquent loans | 141,271 | 71,181 | 70,089 | 101,956 | 39,314 | 21,221 | 18,092 | |||||||||||||||||||||
Loans past due 3 months or more | 263 | 263 | — | 43 | 220 | 220 | — | |||||||||||||||||||||
Restructured loans | 72,858 | 20,836 | 52,021 | 110,296 | (37,438 | ) | (7,349 | ) | (30,088 | ) | ||||||||||||||||||
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Total loan balance | 21,246,558 | 9,062,027 | 12,184,530 | 21,417,258 | (170,700 | ) | (22,266 | ) | (148,433 | ) | ||||||||||||||||||
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(Ratio to total loan balance) | 1.1 | % | 1.1 | % | 1.1 | % | 1.1 | % | 0.0 | % | 0.1 | % | (0.1 | %) | ||||||||||||||
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Note: | CMTB’s partial direct written-off: Sep. 2011: 14,317 million yen, Mar. 2011: 19,041 million yen | |
STB’s partial direct written-off: Sep. 2011: 35,901 billion yen, Mar. 2011: 38,014 million yen |
(Banking a/c)
Millions of Yen | ||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||
Total | CMTB | STB | Total | Total | CMTB | STB | ||||||||||||||||||||||
Risk monitored loans | 187,193 | 66,063 | 121,130 | 212,718 | (25,524 | ) | (14,116 | ) | (11,408 | ) | ||||||||||||||||||
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Loans in bankruptcy proceedings | 17,982 | 3,648 | 14,334 | 24,499 | (6,516 | ) | (6,340 | ) | (176 | ) | ||||||||||||||||||
Other delinquent loans | 96,552 | 41,314 | 55,237 | 86,233 | 10,319 | (8,492 | ) | 18,811 | ||||||||||||||||||||
Loans past due 3 months or more | 263 | 263 | — | 43 | 220 | 220 | — | |||||||||||||||||||||
Restructured loans | 72,394 | 20,836 | 51,558 | 101,942 | (29,548 | ) | 495 | (30,043 | ) | |||||||||||||||||||
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Total loan balance | 20,875,210 | 8,845,801 | 12,029,408 | 21,015,271 | (140,061 | ) | (15,776 | ) | (124,284 | ) | ||||||||||||||||||
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(Ratio to total loan balance) | 0.9 | % | 0.7 | % | 1.0 | % | 1.0 | % | (0.1 | %) | (0.2 | %) | (0.1 | %) | ||||||||||||||
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4
Table of Contents
(Principal guaranteed trust a/c)
Millions of Yen | ||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||
Total | CMTB | STB | Total | Total | CMTB | STB | ||||||||||||||||||||||
Risk monitored loans | 45,195 | 29,880 | 15,315 | 24,090 | 21,105 | 21,869 | (764 | ) | ||||||||||||||||||||
Loans in bankruptcy proceedings | 13 | 13 | — | 13 | (0 | ) | (0 | ) | — | |||||||||||||||||||
Other delinquent loans | 44,718 | 29,867 | 14,851 | 15,723 | 28,995 | 29,713 | (718 | ) | ||||||||||||||||||||
Loans past due 3 months or more | — | — | — | — | — | — | — | |||||||||||||||||||||
Restructured loans | 463 | — | 463 | 8,353 | (7,889 | ) | (7,844 | ) | (45 | ) | ||||||||||||||||||
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Total loan balance | 371,348 | 216,226 | 155,122 | 401,987 | (30,639 | ) | (6,489 | ) | (24,149 | ) | ||||||||||||||||||
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(Ratio to total loan balance) | 12.2 | % | 13.8 | % | 9.9 | % | 6.0 | % | 6.2 | % | 10.2 | % | 0.9 | % | ||||||||||||||
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(*) | Trust a/c is principal guaranteed trust a/c |
(2) Risk monitored loans by industry (Banking a/c and Principal guaranteed trust a/c combined)
[Non-consolidated (CMTB + STB)]
Millions of Yen | ||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||
Total | CMTB | STB | Total | Total | CMTB | STB | ||||||||||||||||||||||
Domestic Branches (excluding offshore) | 230,064 | 95,943 | 134,120 | 233,938 | (3,874 | ) | 7,978 | (11,852 | ) | |||||||||||||||||||
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Manufacturing | 18,566 | 884 | 17,682 | 23,151 | (4,584 | ) | (2,379 | ) | (2,205 | ) | ||||||||||||||||||
Agriculture, forestry, fisheries, mining, quarrying of stone and gravel gathering | — | — | — | 64 | (64 | ) | — | (64 | ) | |||||||||||||||||||
Construction | 1,683 | 975 | 708 | 1,820 | (137 | ) | (219 | ) | 82 | |||||||||||||||||||
Electricity, gas, heat supply and water | 192 | 192 | — | 1,362 | (1,170 | ) | — | (1,170 | ) | |||||||||||||||||||
Information and communications | 3,246 | 338 | 2,907 | 13,652 | (10,405 | ) | (63 | ) | (10,341 | ) | ||||||||||||||||||
Transport and postal activities | 2,180 | 929 | 1,250 | 1,753 | 426 | 143 | 282 | |||||||||||||||||||||
Wholesale and retail trade | 3,462 | 2,036 | 1,425 | 5,925 | (2,463 | ) | (2,272 | ) | (190 | ) | ||||||||||||||||||
Finance and insurance | 78,744 | 35,741 | 43,002 | 72,584 | 6,159 | 21,995 | (15,835 | ) | ||||||||||||||||||||
Real estate | 52,925 | 17,090 | 35,834 | 62,411 | (9,486 | ) | (7,338 | ) | (2,147 | ) | ||||||||||||||||||
Goods rental and leasing | 56 | 56 | — | 69 | (13 | ) | (13 | ) | — | |||||||||||||||||||
Others | 69,007 | 37,698 | 31,309 | 51,143 | 17,864 | (1,873 | ) | 19,737 | ||||||||||||||||||||
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Overseas branches and offshore | 2,324 | — | 2,324 | 2,870 | (545 | ) | (226 | ) | (319 | ) | ||||||||||||||||||
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Total | 232,389 | 95,943 | 136,445 | 236,808 | (4,419 | ) | 7,752 | (12,172 | ) | |||||||||||||||||||
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Note: Above table is made based on the categorization of “Survey on loans by industry” of Bank of Japan.
5
Table of Contents
(3) Problem assets based on the Financial Reconstruction Act (After partial direct written-off)
[Consolidated]
(Banking a/c)
Millions of Yen | ||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||
Problem assets based on the Financial Reconstruction Act (a) | 255,129 | 280,285 | (25,156 | ) | ||||||||
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Bankrupt and practically bankrupt | 42,208 | 57,926 | (15,718 | ) | ||||||||
Doubtful | 125,363 | 103,940 | 21,423 | |||||||||
Substandard | 87,557 | 118,418 | (30,860 | ) | ||||||||
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Ordinary assets | 21,968,736 | 22,118,429 | (149,692 | ) | ||||||||
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|
|
| |||||||
Total balance (b) | 22,223,866 | 22,398,714 | (174,848 | ) | ||||||||
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|
|
| |||||||
(Ratio to total balance (a) / (b)) | 1.1 | % | 1.3 | % | (0.2 | %) | ||||||
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|
|
|
|
Note 1: Partial direct written-off: Sep. 2011: 78,350 million yen, Mar. 2011: 85,491 million yen
Note 2: Figures for Banking a/c and Principal guaranteed trust a/c combined, please refer to “Explanatory Material 2nd Quarter of Fiscal Year 2011 ended on Sep. 30, 2011”.
[Non-consolidated (CMTB + STB)]
(Banking a/c)
Millions of Yen | ||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||
Total | CMTB | STB | Total | Total | CMTB | STB | ||||||||||||||||||||||
Problem assets based on the Financial Reconstruction | 195,597 | 67,298 | 128,299 | 221,163 | (25,566 | ) | (14,290 | ) | (11,276 | ) | ||||||||||||||||||
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| |||||||||||||||
Bankrupt and practically bankrupt | 33,702 | 10,773 | 22,928 | 41,196 | (7,494 | ) | (6,553 | ) | (940 | ) | ||||||||||||||||||
Doubtful | 89,236 | 35,424 | 53,812 | 77,980 | 11,256 | (8,451 | ) | 19,707 | ||||||||||||||||||||
Substandard (b) | 72,658 | 21,100 | 51,558 | 101,985 | (29,327 | ) | 715 | (30,043 | ) | |||||||||||||||||||
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|
|
| |||||||||||||||
Ordinary assets | 21,358,964 | 8,974,704 | 12,384,260 | 21,450,047 | (91,082 | ) | (3,338 | ) | (87,744 | ) | ||||||||||||||||||
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| |||||||||||||||
Substandard debtors (excluding | 36,009 | 706 | 35,302 | 28,148 | 7,861 | 126 | 7,735 | |||||||||||||||||||||
Other special mention debtors (*1) | 678,752 | 279,515 | 399,237 | 707,196 | (28,443 | ) | (55,362 | ) | 26,918 | |||||||||||||||||||
Ordinary debtors | 20,644,202 | 8,694,482 | 11,949,720 | 20,714,702 | (70,499 | ) | 51,898 | (122,398 | ) | |||||||||||||||||||
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| |||||||||||||||
Total balance (d) | 21,554,562 | 9,042,002 | 12,512,560 | 21,671,211 | (116,648 | ) | (17,628 | ) | (99,020 | ) | ||||||||||||||||||
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| |||||||||||||||
(Ratio to total balance (a) / (d)) | 0.9 | % | 0.7 | % | 1.0 | % | 1.0 | % | (0.1 | %) | (0.2 | %) | (0.1 | %) | ||||||||||||||
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Assets to substandard debtors (b) + (c) | 108,667 | 21,807 | 86,860 | 130,134 | (21,466 | ) | 841 | (22,308 | ) | |||||||||||||||||||
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Note: | CMTB’s partial direct written-off: Sep. 2011: 14,520 million yen, Mar. 2011: 19,319 million yen | |
STB’s partial direct written-off: Sep. 2011: 35,901 billion yen, Mar. 2011: 38,014 million yen |
(Principal guaranteed trust a/c)
Millions of Yen | ||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||
Total | CMTB | STB | Total | Total | CMTB | STB | ||||||||||||||||||||||
Problem assets based on the Financial Reconstruction Act (a) | 45,195 | 29,880 | 15,315 | 24,090 | 21,105 | 21,869 | (764 | ) | ||||||||||||||||||||
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Bankrupt and practically bankrupt | 40 | 13 | 26 | 55 | (15 | ) | (0 | ) | (15 | ) | ||||||||||||||||||
Doubtful | 44,691 | 29,867 | 14,824 | 15,681 | 29,010 | 29,713 | (703 | ) | ||||||||||||||||||||
Substandard (b) | 463 | — | 463 | 8,353 | (7,889 | ) | (7,844 | ) | (45 | ) | ||||||||||||||||||
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Ordinary assets | 326,152 | 186,346 | 139,806 | 377,896 | (51,744 | ) | (28,358 | ) | (23,385 | ) | ||||||||||||||||||
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Substandard debtors (excluding Substandard) (c) | 30 | — | 30 | 32 | (1 | ) | — | (1 | ) | |||||||||||||||||||
Other special mention debtors (*1) | 11,774 | 8,392 | 3,382 | 4,037 | 7,737 | 8,292 | (555 | ) | ||||||||||||||||||||
Ordinary debtors | 314,347 | 177,953 | 136,393 | 373,826 | (59,479 | ) | (36,650 | ) | (22,828 | ) | ||||||||||||||||||
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Total balance (d) | 371,348 | 216,226 | 155,122 | 401,987 | (30,639 | ) | (6,489 | ) | (24,149 | ) | ||||||||||||||||||
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(Ratio to total balance (a) / (d)) | 12.2 | % | 13.8 | % | 9.9 | % | 6.0 | % | 6.2 | % | 10.2 | % | 0.9 | % | ||||||||||||||
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Assets to substandard debtors (b) + (c) | 494 | — | 494 | 8,386 | (7,891 | ) | (7,844 | ) | (47 | ) | ||||||||||||||||||
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Note: Figures for Banking a/c and Principal guaranteed trust a/c combined, please refer to “Explanatory Material 2nd Quarter of Fiscal Year 2011 ended on Sep. 30, 2011”.
6
Table of Contents
(4) Migration analysis of assets to special mention or worse categories (Banking a/c and Principal guaranteed trust a/c combined)
[Non-consolidated (CMTB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||||||
Balance | Migration of (A) | |||||||||||||||||||||||||||||||
Mar. 2011 | Sep. 2011 | Change (A) | Downgrade (+) | Downgrade (-) | Upgrade (+) | Upgrade (-) | Repayment, etc. | |||||||||||||||||||||||||
Bankrupt and practically bankrupt | 41.3 | 33.7 | (7.5 | ) | 3.3 | — | — | (3.8 | ) | (7.0 | ) | |||||||||||||||||||||
Doubtful | 93.7 | 133.9 | 40.3 | 63.0 | (1.2 | ) | 1.4 | (12.1 | ) | (10.8 | ) | |||||||||||||||||||||
Assets to substandard debtor | 138.5 | 109.2 | (29.4 | ) | 9.4 | (9.5 | ) | 1.0 | (20.1 | ) | (10.1 | ) | ||||||||||||||||||||
Other special mention | 711.2 | 690.5 | (20.7 | ) | 223.0 | (19.4 | ) | 14.4 | (165.9 | ) | (72.9 | ) | ||||||||||||||||||||
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[CMTB] | ||||||||||||||||||||||||||||||||
Billions of Yen | ||||||||||||||||||||||||||||||||
Balance | Migration of (A) | |||||||||||||||||||||||||||||||
Mar. 2011 | Sep. 2011 | Change (A) | Downgrade (+) | Downgrade (-) | Upgrade (+) | Upgrade (-) | Repayment, etc. | |||||||||||||||||||||||||
Bankrupt and practically bankrupt | 17.3 | 10.8 | (6.6 | ) | 2.4 | — | — | (3.1 | ) | (5.8 | ) | |||||||||||||||||||||
Doubtful | 44.0 | 65.3 | 21.3 | 34.9 | (1.0 | ) | 1.3 | (10.4 | ) | (3.5 | ) | |||||||||||||||||||||
Assets to substandard debtor | 28.8 | 21.8 | (7.0 | ) | 7.4 | (8.1 | ) | 0.5 | (6.1 | ) | (0.7 | ) | ||||||||||||||||||||
Other special mention | 335.0 | 287.9 | (47.1 | ) | 100.3 | (7.1 | ) | 9.8 | (137.5 | ) | (12.6 | ) | ||||||||||||||||||||
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[STB] | ||||||||||||||||||||||||||||||||
Billions of Yen | ||||||||||||||||||||||||||||||||
Balance | Migration of (A) | |||||||||||||||||||||||||||||||
Mar. 2011 | Sep. 2011 | Change (A) | Downgrade (+) | Downgrade (-) | Upgrade (+) | Upgrade (-) | Repayment, etc. | |||||||||||||||||||||||||
Bankrupt and practically bankrupt | 23.9 | 23.0 | (1.0 | ) | 0.9 | — | — | (0.6 | ) | (1.2 | ) | |||||||||||||||||||||
Doubtful | 49.6 | 68.6 | 19.0 | 28.1 | (0.2 | ) | 0.1 | (1.7 | ) | (7.3 | ) | |||||||||||||||||||||
Assets to substandard debtor | 109.7 | 87.4 | (22.4 | ) | 1.9 | (1.4 | ) | 0.5 | (14.0 | ) | (9.3 | ) | ||||||||||||||||||||
Other special mention | 376.3 | 402.6 | 26.4 | 122.7 | (12.2 | ) | 4.6 | (28.4 | ) | (60.3 | ) | |||||||||||||||||||||
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7
Table of Contents
(5) Final disposal of non-performing loans (Banking a/c and Principal guaranteed trust a/c combined)
(i) Loans outstanding in doubtful or worse categories
[Non-consolidated (CMTB + STB)]
Total
Billions of Yen | ||||||||||||||||||||||||||||||||||||||||
Sep. 2008 | Mar. 2009 | Sep. 2009 | Mar. 2010 | Sep. 2010 | Mar. 2011 | Sep. 2011 | Change from Mar. 2011 | |||||||||||||||||||||||||||||||||
Total | CMTB | STB | ||||||||||||||||||||||||||||||||||||||
Loans in bankrupt/ practically bankrupt | 61.4 | 64.7 | 58.7 | 37.4 | 32.2 | 41.3 | 33.7 | 10.8 | 23.0 | (7.5 | ) | |||||||||||||||||||||||||||||
Doubtful loans | 103.1 | 159.5 | 339.6 | 138.3 | 112.6 | 93.7 | 133.9 | 65.3 | 68.6 | 40.3 | ||||||||||||||||||||||||||||||
Total | 164.5 | 224.1 | 398.4 | 175.8 | 144.8 | 134.9 | 167.7 | 76.1 | 91.6 | 32.8 | ||||||||||||||||||||||||||||||
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Loans outstanding in doubtful or worse categories as of Sep. 2008 and disposal thereafter |
| |||||||||||||||||||||||||||||||||||||||
Loans in bankrupt/ practically bankrupt | 61.4 | 44.8 | 39.7 | 18.8 | 17.5 | 17.2 | 9.7 | 3.3 | 6.4 | (7.5 | ) | |||||||||||||||||||||||||||||
Doubtful loans | 103.1 | 78.8 | 59.6 | 61.5 | 40.6 | 35.9 | 32.3 | 16.3 | 16.0 | (3.7 | ) | |||||||||||||||||||||||||||||
Total | 164.5 | 123.6 | 99.3 | 80.3 | 58.1 | 53.1 | 42.0 | 19.6 | 22.4 | (11.1 | ) | |||||||||||||||||||||||||||||
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New entry to doubtful or worse categories during 2HFY2008 and disposal thereafter |
| |||||||||||||||||||||||||||||||||||||||
Loans in bankrupt/ practically bankrupt | 19.9 | 13.4 | 9.3 | 1.6 | 0.7 | 0.4 | 0.3 | 0.1 | (0.3 | ) | ||||||||||||||||||||||||||||||
Doubtful loans | 80.6 | 44.7 | 13.2 | 6.6 | 5.5 | 3.8 | 2.8 | 1.0 | (1.8 | ) | ||||||||||||||||||||||||||||||
Total | 100.5 | 58.0 | 22.4 | 8.3 | 6.2 | 4.2 | 3.1 | 1.1 | (2.1 | ) | ||||||||||||||||||||||||||||||
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New entry to doubtful or worse categories during 1HFY2009 and disposal thereafter |
| |||||||||||||||||||||||||||||||||||||||
Loans in bankrupt/ practically bankrupt | 5.7 | 6.5 | 8.2 | 4.2 | 3.7 | 3.6 | 0.1 | (0.5 | ) | |||||||||||||||||||||||||||||||
Doubtful loans | 235.4 | 45.1 | 37.8 | 22.6 | 16.3 | 2.7 | 13.6 | (6.3 | ) | |||||||||||||||||||||||||||||||
Total | 241.1 | 51.6 | 46.0 | 26.7 | 20.0 | 6.3 | 13.7 | (6.8 | ) | |||||||||||||||||||||||||||||||
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New entry to doubtful or worse categories during 2HFY2009 and disposal thereafter |
| |||||||||||||||||||||||||||||||||||||||
Loans in bankrupt/ practically bankrupt | 2.9 | 2.7 | 1.5 | 0.8 | 0.6 | 0.2 | (0.7 | ) | ||||||||||||||||||||||||||||||||
Doubtful loans | 18.5 | 10.5 | 9.7 | 6.0 | 2.2 | 3.8 | (3.8 | ) | ||||||||||||||||||||||||||||||||
Total | 21.5 | 13.2 | 11.2 | 6.7 | 2.8 | 4.0 | (4.5 | ) | ||||||||||||||||||||||||||||||||
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New entry to doubtful or worse categories during 1HFY2010 and disposal thereafter |
| |||||||||||||||||||||||||||||||||||||||
Loans in bankrupt/ practically bankrupt | 2.1 | 1.8 | 1.0 | 0.8 | 0.2 | (0.8 | ) | |||||||||||||||||||||||||||||||||
Doubtful loans | 17.1 | 8.6 | 7.3 | 2.8 | 4.6 | (1.3 | ) | |||||||||||||||||||||||||||||||||
Total | 19.2 | 10.4 | 8.3 | 3.5 | 4.8 | (2.0 | ) | |||||||||||||||||||||||||||||||||
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New entry to doubtful or worse categories during 2HFY2010 and disposal thereafter |
| |||||||||||||||||||||||||||||||||||||||
Loans in bankrupt/ practically bankrupt | 15.9 | 16.0 | 0.9 | 15.1 | 0.1 | |||||||||||||||||||||||||||||||||||
Doubtful loans | 11.3 | 5.3 | 3.7 | 1.6 | (6.0 | ) | ||||||||||||||||||||||||||||||||||
Total | 27.2 | 21.3 | 4.6 | 16.7 | (5.9 | ) | ||||||||||||||||||||||||||||||||||
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New entry to doubtful or worse categories during 1HFY2011 and disposal thereafter |
| |||||||||||||||||||||||||||||||||||||||
Loans in bankrupt/ practically bankrupt | 2.2 | 1.4 | 0.7 | 2.2 | ||||||||||||||||||||||||||||||||||||
Doubtful loans | 63.0 | 34.9 | 28.1 | 63.0 | ||||||||||||||||||||||||||||||||||||
Total | 65.2 | 36.3 | 28.8 | 65.2 | ||||||||||||||||||||||||||||||||||||
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(ii) Progress of final disposal
[Non-consolidated (CMTB + STB)]
(Billions of Yen)
Period | Primary amount (A) | Amount as of Sep. 2011 (B) | Quasi final disposal or in the process of final disposal (C) (Less) | Amount of final disposal during 1HFY2011 (Less) | Ratio of final disposal progression (A-B)/A (%) | Adjusted ratio of final disposal progression (A-B+C)/A (%) (*) | ||||||||||||||||||
Before 1HFY2008 | 2,903.9 | 42.0 | 8.5 | 10.8 | 98.6 | 98.8 | ||||||||||||||||||
2HFY2008 | 100.5 | 4.2 | 0.1 | 2.0 | 95.8 | 96.0 | ||||||||||||||||||
1HFY2009 | 241.1 | 20.0 | 3.5 | 6.7 | 91.7 | 93.2 | ||||||||||||||||||
2HFY2009 | 21.5 | 6.7 | 0.2 | 4.5 | 68.6 | 69.4 | ||||||||||||||||||
1HFY2010 | 19.2 | 8.3 | 0.1 | 2.0 | 56.6 | 57.3 | ||||||||||||||||||
2HFY2010 | 27.2 | 21.3 | 14.8 | 6.4 | 21.7 | 76.3 | ||||||||||||||||||
1HFY2011 | 65.2 | 65.2 | 0.3 | — | — | 0.4 | ||||||||||||||||||
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| |||||||||||||
Total | — | 167.7 | 27.6 | 32.4 | — | — | ||||||||||||||||||
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(*) | Ratio of final disposal progression considering quasi final disposal |
8
Table of Contents
3. Capital and total risk-weighted assets (Basel II)
(1) BIS capital adequacy ratio
[CMTB] (Domestic standard)
< Consolidated > | ||||||||||||
Billions of Yen | ||||||||||||
Sep. 2011 (Preliminary) | Mar. 2011 | Change | ||||||||||
Total qualifying capital | 1,033.3 | 1,024.7 | 8.5 | |||||||||
Tier I | 713.6 | 696.4 | 17.1 | |||||||||
Tier II | 331.3 | 343.7 | (12.3 | ) | ||||||||
Deduction (double gearing, etc.) | (11.5 | ) | (15.4 | ) | 3.8 | |||||||
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| |||||||
Total risk-weighted assets | 6,421.2 | 6,622.5 | (201.3 | ) | ||||||||
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| |||||||
BIS capital adequacy ratio | 16.09 | % | 15.47 | % | 0.62 | % | ||||||
(Tier I capital ratio) | 11.11 | % | 10.51 | % | 0.60 | % | ||||||
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Note: Non-consolidated BIS capital adequacy ratio and Tier I capital ratio as of Sep. 2011 are 16.32% and 11.45%, respectively.
[CMAB] (Domestic standard)
< Non-consolidated > | ||||||||||||
Billions of Yen | ||||||||||||
Sep. 2011 (Preliminary) | Mar. 2011 | Change | ||||||||||
Total qualifying capital | 37.4 | 35.2 | 2.1 | |||||||||
Tier I | 37.4 | 35.2 | 2.1 | |||||||||
Tier II | — | — | — | |||||||||
Deduction (double gearing, etc.) | — | — | — | |||||||||
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| |||||||
Total risk-weighted assets | 109.9 | 112.2 | (2.3 | ) | ||||||||
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| |||||||
BIS capital adequacy ratio | 34.04 | % | 31.44 | % | 2.60 | % | ||||||
(Tier I capital ratio) | 34.04 | % | 31.44 | % | 2.60 | % | ||||||
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[STB] (International standard)
< Consolidated > | ||||||||||||
Billions of Yen | ||||||||||||
Sep. 2011 (Preliminary) | Mar. 2011 | Change | ||||||||||
Total qualifying capital | 1,909.2 | 1,880.8 | 28.3 | |||||||||
Tier I | 1,365.1 | 1,333.9 | 31.2 | |||||||||
Tier II | 643.3 | 646.6 | (3.2 | ) | ||||||||
Deduction (double gearing, etc.) | (99.3 | ) | (99.6 | ) | 0.3 | |||||||
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|
| |||||||
Total risk-weighted assets | 11,354.9 | 12,028.0 | (673.0 | ) | ||||||||
|
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|
| |||||||
BIS capital adequacy ratio | 16.81 | % | 15.63 | % | 1.18 | % | ||||||
(Tier I capital ratio) | 12.02 | % | 11.09 | % | 0.93 | % | ||||||
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|
|
Note: Non-consolidated BIS capital adequacy ratio and Tier I capital ratio as of Sep. 2011 are 18.11% and 13.05%, respectively.
Note: Risk measurement methodologies are as follows.
| CMTB Consolidated, | CMAB Non-consolidated | STB Consolidated, Non-consolidated | |||
Credit risk | Foundation Internal Ratings-Based Approach | Standardized Approach | Foundation Internal Ratings-Based Approach | |||
Operational risk | Standardized Approach | Standardized Approach | Standardized Approach | |||
Market risk (International standard) | Internal Models Approach |
(2) Risk-weighted assets for credit risk
[Consolidated]
Billions of Yen | ||||||||||||
Sep. 2011 (Preliminary) | ||||||||||||
Exposure | Risk-weighted asset | Expected Loss | ||||||||||
Internal Ratings-Based | 36,065.1 | 15,099.4 | 231.2 | |||||||||
Corporate, etc. | 26,153.9 | 9,761.8 | 186.2 | |||||||||
Corporate | 16,194.6 | 9,153.3 | 185.1 | |||||||||
Sovereign | 6,961.1 | 177.8 | 0.3 | |||||||||
Financial institution | 2,998.2 | 430.5 | 0.8 | |||||||||
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| |||||||
Retail | 5,974.4 | 1,200.1 | 34.1 | |||||||||
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| |||||||
Residential mortgage exposure | 5,512.7 | 1,026.5 | 21.7 | |||||||||
Qualifying revolving retail exposure | 37.8 | 11.3 | 1.3 | |||||||||
Other retail exposure | 423.9 | 162.2 | 11.1 | |||||||||
|
|
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|
| |||||||
Equity | 1,192.3 | 1,612.3 | 1.3 | |||||||||
Fund | 545.9 | 1,288.2 | 5.5 | |||||||||
Securitization | 763.3 | 259.8 | 1.4 | |||||||||
Purchased receivables | 574.9 | 372.6 | 2.3 | |||||||||
Other assets | 860.0 | 604.4 | — | |||||||||
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| |||||||
Standardized Approach | 1,128.5 | 1,065.1 | — | |||||||||
Subsidiaries | 1,128.5 | 1,065.1 | — | |||||||||
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Exemption | 1,317.0 | 399.4 | — | |||||||||
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Total credit risk | 38,510.6 | 16,564.0 | 231.2 | |||||||||
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Note 1: Amount of Risk-weighted asset is after scaling factor adjustments.
Note 2: Expected Loss of securitization is the amount related to “Exposure applied to an upper limit of total required capital”, which is defined in the Notification.
9
Table of Contents
(1) Summary of income/expenses in domestic/international business (Banking a/c)
[Non-consolidated (CMTB + CMAB + STB)]
Millions of Yen | ||||||||||||||||||||||||
1HFY2011 | 1HFY2010 | |||||||||||||||||||||||
Domestic business | International business | Total | Domestic business | International business | Total | |||||||||||||||||||
Trust fee income | 46,964 | — | 46,964 | 48,516 | — | 48,516 | ||||||||||||||||||
Net interest income | 102,239 | 15,737 | 117,976 | 99,045 | 19,727 | 118,772 | ||||||||||||||||||
4,347 | 4,530 | |||||||||||||||||||||||
Interest income (*1) | 158,712 | 34,804 | 189,169 | 160,874 | 38,682 | 195,027 | ||||||||||||||||||
4,347 | 4,530 | |||||||||||||||||||||||
Interest expenses (*1, *2) | 56,472 | 19,067 | 71,193 | 61,829 | 18,955 | 76,254 | ||||||||||||||||||
Net fees and commissions | 37,098 | 871 | 37,969 | 41,848 | (482 | ) | 41,366 | |||||||||||||||||
Fees and commissions received | 66,352 | 2,590 | 68,942 | 71,086 | 1,666 | 72,752 | ||||||||||||||||||
Fees and commissions paid | 29,253 | 1,719 | 30,973 | 29,237 | 2,148 | 31,386 | ||||||||||||||||||
Net trading income | 4,071 | (920 | ) | 3,151 | 5,006 | 2,080 | 7,086 | |||||||||||||||||
Trading income | 4,071 | (708 | ) | 3,363 | 5,006 | 2,121 | 7,127 | |||||||||||||||||
Trading expenses | — | 212 | 212 | — | 40 | 40 | ||||||||||||||||||
Net other operating income | 7,926 | 36,869 | 44,795 | 12,682 | 12,245 | 24,928 | ||||||||||||||||||
Other operating income | 15,965 | 45,570 | 61,535 | 21,589 | 29,190 | 50,779 | ||||||||||||||||||
Other operating expenses | 8,038 | 8,701 | 16,740 | 8,906 | 16,944 | 25,851 |
(*1) | Figures in the upper rows in Interest income and Interest expenses show interests that accrue from transaction between domestic business and international business. |
(*2) | Expenses matching the amount of investment of money held in trust is excluded from Interest expenses. (1HFY2011: 46 million yen, 1HFY2010: 51 million yen) |
10
Table of Contents
(2) Summary of interest-earning assets/interest-bearing liabilities in domestic/international business (Banking a/c)
[Non-consolidated (CMTB + STB)]
(Domestic business)
Millions of Yen, percentage points | ||||||||||||||||||||||||
1HFY2011 | 1HFY2010 | |||||||||||||||||||||||
Average balance | Interest | Yield | Average balance | Interest | Yield | |||||||||||||||||||
Interest-earning assets | 26,685,534 | 158,666 | 1.18 | % | 26,697,472 | 160,815 | 1.20 | % | ||||||||||||||||
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Loans and bills discounted | 17,995,614 | 109,801 | 1.21 | % | 17,876,892 | 120,486 | 1.34 | % | ||||||||||||||||
Securities | 5,938,872 | 35,812 | 1.20 | % | 5,833,378 | 25,355 | 0.86 | % | ||||||||||||||||
Japanese government bonds | 3,307,761 | 10,023 | 0.60 | % | 3,147,774 | 7,611 | 0.48 | % | ||||||||||||||||
Japanese corporate bonds | 851,857 | 4,702 | 1.10 | % | 731,426 | 4,791 | 1.30 | % | ||||||||||||||||
Japanese stocks | 1,462,648 | 16,767 | 2.28 | % | 1,563,868 | 10,753 | 1.37 | % | ||||||||||||||||
Call loans and bills bought | 313,062 | 203 | 0.12 | % | 335,806 | 252 | 0.14 | % | ||||||||||||||||
Monetary claims bought | 273,886 | 1,694 | 1.23 | % | 339,412 | 2,111 | 1.24 | % | ||||||||||||||||
Due from banks | 4,304 | 54 | 2.53 | % | 4,913 | 6 | 0.25 | % | ||||||||||||||||
JPY deposit converted into foreign currencies | 1,997,730 | 4,347 | 0.43 | % | 1,843,458 | 4,530 | 0.49 | % | ||||||||||||||||
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Interest-bearing liabilities | 26,299,862 | 56,437 | 0.42 | % | 26,271,964 | 61,775 | 0.46 | % | ||||||||||||||||
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Deposits | 20,628,471 | 41,166 | 0.39 | % | 19,656,513 | 46,232 | 0.46 | % | ||||||||||||||||
Negotiable certificates of deposit (NCD) | 2,051,704 | 1,406 | 0.13 | % | 2,412,078 | 1,931 | 0.15 | % | ||||||||||||||||
Call money and bills sold | 50,927 | 24 | 0.09 | % | 47,875 | 27 | 0.11 | % | ||||||||||||||||
Short-term bonds payable | 201,259 | 124 | 0.12 | % | 260,350 | 173 | 0.13 | % | ||||||||||||||||
Bonds payable | 651,200 | 6,431 | 1.96 | % | 528,128 | 5,501 | 2.07 | % | ||||||||||||||||
Borrowed money | 955,615 | 4,045 | 0.84 | % | 1,214,236 | 3,866 | 0.63 | % | ||||||||||||||||
Borrowed money from trust account | 1,210,493 | 2,984 | 0.49 | % | 1,393,335 | 3,610 | 0.51 | % | ||||||||||||||||
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(International business)
| ||||||||||||||||||||||||
Millions of Yen, percentage points | ||||||||||||||||||||||||
1HFY2011 | 1HFY2010 | |||||||||||||||||||||||
Average balance | Interest | Yield | Average balance | Interest | Yield | |||||||||||||||||||
Interest-earning assets | 4,487,786 | 34,804 | 1.54 | % | 4,330,917 | 38,682 | 1.78 | % | ||||||||||||||||
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Loans and bills discounted | 1,857,464 | 12,283 | 1.31 | % | 1,570,722 | 11,014 | 1.39 | % | ||||||||||||||||
Securities (Foreign securities) | 2,093,519 | 25,026 | 2.38 | % | 2,377,950 | �� | 26,797 | 2.24 | % | |||||||||||||||
Call loans and bills bought | 16,755 | 18 | 0.22 | % | 31,576 | 61 | 0.38 | % | ||||||||||||||||
Due from banks | 433,558 | 2,202 | 1.01 | % | 305,358 | 953 | 0.62 | % | ||||||||||||||||
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Interest-bearing liabilities | 5,337,789 | 19,067 | 0.71 | % | 4,747,464 | 18,955 | 0.79 | % | ||||||||||||||||
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Deposits | 1,077,998 | 3,107 | 0.57 | % | 870,423 | 2,472 | 0.56 | % | ||||||||||||||||
Negotiable certificates of deposit (NCD) | 407,576 | 850 | 0.41 | % | 166,790 | 501 | 0.59 | % | ||||||||||||||||
Call money and bills sold | 291,398 | 648 | 0.44 | % | 176,474 | 404 | 0.45 | % | ||||||||||||||||
Payables under repurchase agreements | 374,633 | 270 | 0.14 | % | 365,615 | 444 | 0.24 | % | ||||||||||||||||
Borrowed money | 428,707 | 7,131 | 3.31 | % | 455,165 | 7,513 | 3.29 | % | ||||||||||||||||
Foreign currency deposit converted from JPY | 1,997,730 | 4,347 | 0.43 | % | 1,843,458 | 4,530 | 0.49 | % | ||||||||||||||||
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11
Table of Contents
(3) Summary of fees and commissions received/paid in domestic/international business
[Consolidated]
Millions of Yen | ||||||||||||||||||||||||||||||||
1HFY2011 | 1HFY2010 | |||||||||||||||||||||||||||||||
Domestic business | International business | Elimination | Total | Domestic business | International business | Elimination | Total | |||||||||||||||||||||||||
Fees and commissions received | 137,917 | 11,241 | (20,336 | ) | 128,822 | 112,569 | 6,076 | (17,092 | ) | 101,554 | ||||||||||||||||||||||
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Trust related | 41,343 | 27 | (1,883 | ) | 39,486 | 31,682 | 20 | (1,521 | ) | 30,182 | ||||||||||||||||||||||
Deposit and loans | 10,108 | 1,842 | (681 | ) | 11,269 | 9,562 | 1,021 | (261 | ) | 10,323 | ||||||||||||||||||||||
Foreign exchange | 948 | 84 | (97 | ) | 935 | 538 | 137 | (18 | ) | 656 | ||||||||||||||||||||||
Securities related | 23,308 | 321 | (8,952 | ) | 14,676 | 16,709 | 343 | (7,268 | ) | 9,784 | ||||||||||||||||||||||
Agency business | 10,748 | 4,518 | (1,300 | ) | 13,966 | 7,197 | 4,265 | (1,402 | ) | 10,060 | ||||||||||||||||||||||
Safe keeping deposit/safe deposit box | 177 | — | — | 177 | 100 | — | — | 100 | ||||||||||||||||||||||||
Guarantee | 6,971 | 107 | (2,504 | ) | 4,574 | 4,883 | 138 | (1,807 | ) | 3,214 | ||||||||||||||||||||||
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Fees and commissions paid | 52,348 | 2,250 | (23,228 | ) | 31,370 | 38,925 | 3,155 | (10,590 | ) | 31,490 | ||||||||||||||||||||||
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Foreign exchange | 626 | 41 | (71 | ) | 596 | 244 | 112 | — | 356 | |||||||||||||||||||||||
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[Non-consolidated (CMTB + CMAB + STB)]
Millions of Yen | ||||||||||||||||||||||||
1HFY2011 | 1HFY2010 | |||||||||||||||||||||||
Domestic business | International business | Total | Domestic business | International business | Total | |||||||||||||||||||
Fees and commissions received | 66,352 | 2,590 | 68,942 | 71,086 | 1,666 | 72,752 | ||||||||||||||||||
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Trust related | 27,136 | 27 | 27,163 | 33,047 | 20 | 33,067 | ||||||||||||||||||
Deposit and loans | 8,560 | 1,917 | 10,477 | 10,162 | 1,120 | 11,283 | ||||||||||||||||||
Foreign exchange | 770 | 124 | 894 | 723 | 149 | 872 | ||||||||||||||||||
Securities related | 18,433 | 199 | 18,633 | 15,586 | 93 | 15,679 | ||||||||||||||||||
Agency business | 10,159 | — | 10,159 | 10,358 | 0 | 10,358 | ||||||||||||||||||
Safe keeping deposit/safe deposit box | 177 | — | 177 | 183 | — | 183 | ||||||||||||||||||
Guarantee | 488 | 122 | 610 | 469 | 141 | 611 | ||||||||||||||||||
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Fees and commissions paid | 29,253 | 1,719 | 30,973 | 29,237 | 2,148 | 31,386 | ||||||||||||||||||
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Foreign exchange | 408 | 259 | 667 | 338 | 190 | 528 | ||||||||||||||||||
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12
Table of Contents
(4) Summary of trading income/expenses and assets/liabilities in domestic/international business
(i) Trading income/expenses
[Non-consolidated (CMTB + STB)]
Millions of Yen | ||||||||||||||||||||||||
1HFY2011 | 1HFY2010 | |||||||||||||||||||||||
Domestic business | International business | Total | Domestic business | International business | Total | |||||||||||||||||||
Trading income | 4,071 | (708 | ) | 3,363 | 5,006 | 2,121 | 7,127 | |||||||||||||||||
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Gains on trading account securities transactions | 97 | — | 97 | 145 | — | 145 | ||||||||||||||||||
Income from securities and derivatives related to trading transactions | 48 | (44 | ) | 3 | 20 | 258 | 278 | |||||||||||||||||
Income from trading-related financial derivatives transactions | 3,551 | (663 | ) | 2,887 | 4,346 | 1,862 | 6,209 | |||||||||||||||||
Other trading income | 374 | — | 374 | 493 | — | 493 | ||||||||||||||||||
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Trading expenses | — | 212 | 212 | — | 40 | 40 | ||||||||||||||||||
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Expenses on trading securities and derivatives | — | — | — | — | — | — | ||||||||||||||||||
Expenses on securities and derivatives related to trading transactions | — | 212 | 212 | — | 40 | 40 | ||||||||||||||||||
Expenses on trading-related financial derivatives transactions | — | — | — | — | — | — | ||||||||||||||||||
Other trading expenses | — | — | — | — | — | — | ||||||||||||||||||
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(ii) Ending balance of trading assets/liabilities
[Non-consolidated (CMTB + STB)]
Millions of Yen | ||||||||||||||||||||||||
Sep. 2011 | Sep. 2010 | |||||||||||||||||||||||
Domestic business | International business | Total | Domestic business | International business | Total | |||||||||||||||||||
Trading assets | 31,068 | 49,908 | 80,976 | 581,461 | 266,230 | 847,692 | ||||||||||||||||||
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Trading account securities | 70 | — | 70 | 12,765 | — | 12,765 | ||||||||||||||||||
Derivatives of trading securities | — | — | — | — | — | — | ||||||||||||||||||
Securities related to trading transactions | — | — | — | — | — | — | ||||||||||||||||||
Derivatives of securities related to trading transactions | — | — | — | 68 | 24 | 92 | ||||||||||||||||||
Trading-related financial derivatives | — | 49,908 | 49,908 | 135,138 | 266,206 | 401,344 | ||||||||||||||||||
Other trading assets | 30,997 | — | 30,997 | 433,489 | — | 433,489 | ||||||||||||||||||
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Trading liabilities | — | 44,802 | 44,802 | 87,918 | 132,414 | 220,332 | ||||||||||||||||||
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Trading securities sold for short sales | — | — | — | — | — | — | ||||||||||||||||||
Derivatives of trading securities-assets | — | — | — | — | — | — | ||||||||||||||||||
Securities related to trading transactions sold for short sales | — | — | — | — | — | — | ||||||||||||||||||
Derivatives of securities related to trading transactions | — | — | — | — | 54 | 54 | ||||||||||||||||||
Trading-related financial derivatives | — | 44,802 | 44,802 | 87,918 | 132,359 | 220,277 | ||||||||||||||||||
Other trading liabilities | — | — | — | — | — | — | ||||||||||||||||||
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13
Table of Contents
5. Major subsidiaries and affiliates
[Consolidated]
(Subsidiaries)
Company names | Capital | Primary business | SMTH Group’s share in voting rights | Net income (Billions of Yen) | ||||||||||||||||||||
(Subsidiaries’ share in voting rights) | 1HFY2011 | 1HFY2010 | Change | |||||||||||||||||||||
The Chuo Mitsui Trust and Banking Company, Limited | JPY 399,697 mil. | Trust and banking | 100 | (— | ) | 17.1 | 33.0 | (15.9 | ) | |||||||||||||||
Chuo Mitsui Asset Trust and Banking Company, Limited | JPY 11,000 mil. | Trust and banking | 100 | (— | ) | 2.8 | 3.3 | (0.4 | ) | |||||||||||||||
MTH Preferred Capital 1 (Cayman) Limited | JPY 29,200 mil. | Finance services | 100 | (— | ) | 0.5 | 0.5 | (0.0 | ) | |||||||||||||||
MTH Preferred Capital 3 (Cayman) Limited | JPY 31,700 mil. | Finance services | 100 | (— | ) | 0.6 | 0.6 | (0.0 | ) | |||||||||||||||
MTH Preferred Capital 4 (Cayman) Limited | JPY 10,800 mil. | Finance services | 100 | (— | ) | 0.1 | 0.1 | (0.0 | ) | |||||||||||||||
MTH Preferred Capital 5 (Cayman) Limited | JPY 33,700 mil. | Finance services | 100 | (— | ) | 0.5 | 0.5 | — | ||||||||||||||||
CMTH Preferred Capital 6 (Cayman) Limited | JPY 42,700 mil. | Finance services | 100 | (— | ) | 0.7 | 0.7 | — | ||||||||||||||||
CMTH Preferred Capital 7 (Cayman) Limited | JPY 41,600 mil. | Finance services | 100 | (— | ) | 1.1 | 1.1 | — | ||||||||||||||||
Chuo Mitsui Asset Management Company, Limited | JPY 300 mil. | Asset management | 100 | (— | ) | 0.0 | 0.1 | (0.0 | ) | |||||||||||||||
Chuo Mitsui Capital Company Limited | JPY 1,247 mil. | Private equity fund management | 100 | (— | ) | 0.0 | 0.0 | 0.0 | ||||||||||||||||
Japan Trustee Services Bank, Ltd. (*) | JPY 51,000 mil. | Trust and banking | 66.66 | (33.33 | ) | 0.3 | 0.5 | (0.2 | ) | |||||||||||||||
Chuo Mitsui Trust International Ltd. | GBP 20 mil. | Securities business | 100 | (100 | ) | (0.0 | ) | (0.1 | ) | 0.0 | ||||||||||||||
Chuo Mitsui Investments, Inc. | USD 0.1 mil. | Investment advisory | 100 | (100 | ) | 0.0 | 0.0 | (0.0 | ) | |||||||||||||||
Chuo Mitsui Investments Hong Kong Limited | HKD 11.04 mil. | Investment advisory | 100 | (100 | ) | 0.0 | (0.0 | ) | 0.0 | |||||||||||||||
Chuo Mitsui Information Technology Co., Ltd. | JPY 200 mil. | Computer-related services | 100 | (100 | ) | 0.0 | 0.0 | 0.0 | ||||||||||||||||
CMTB Facilities Co., Ltd. | JPY 100 mil. | Property management | 100 | (100 | ) | 0.0 | (0.3 | ) | 0.4 | |||||||||||||||
Chuo Mitsui Business Co., Ltd. | JPY 450 mil. | Agency services | 100 | (100 | ) | (0.0 | ) | 0.0 | (0.0 | ) | ||||||||||||||
Chuo Mitsui Loan Business Co., Ltd. | JPY 100 mil. | Loan administration | 100 | (100 | ) | 0.0 | 0.0 | 0.0 | ||||||||||||||||
CMTB Equity Investments Co., Ltd. | JPY 100 mil. | Investment, management and administration of stocks | 100 | (100 | ) | (0.2 | ) | 0.0 | (0.2 | ) | ||||||||||||||
Chuo Mitsui Guarantee Co., Ltd. | JPY 301 mil. | Housing loan guaranty | 100 | (100 | ) | 2.6 | 0.8 | 1.8 | ||||||||||||||||
Chuo Mitsui Card Co., Ltd. | JPY 300 mil. | Credit cards | 100 | (100 | ) | 0.0 | (0.0 | ) | 0.1 | |||||||||||||||
Chuo Mitsui Realty Company, Limited | JPY 300 mil. | Residential brokerage | 100 | (100 | ) | 0.0 | 0.0 | (0.0 | ) | |||||||||||||||
Chuo Mitsui Finance Service Co., Ltd. | JPY 3,150 mil. | Finance services | 100 | (100 | ) | (0.0 | ) | (0.1 | ) | 0.0 | ||||||||||||||
Tokyo Securities Transfer Agent Co., Ltd. | JPY 50 mil. | Stock transfer agency services | 100 | (100 | ) | 0.2 | 0.0 | 0.2 | ||||||||||||||||
Chuo Mitsui Trust Realty Company, Ltd. | JPY 300 mil. | Asset management | 100 | (100 | ) | (0.0 | ) | (0.0 | ) | 0.0 | ||||||||||||||
Note: Japan Trustee Services Bank, Ltd. became consolidated subsidiary on April 1, 2011. | ||||||||||||||||||||||||
(Affiliates) | ||||||||||||||||||||||||
Mitsui & Co., Logistics Partners Ltd. | JPY 150 mil. | Investment company (Asset management) | 29 | (29 | ) | 0.1 | 0.1 | (0.0 | ) | |||||||||||||||
Japan Stockholders Data Service Company, Limited | JPY 2,000mil. | Agency services | 50 | (50 | ) | 0.2 | (0.0 | ) | 0.2 |
Company names | Capital | Primary business | SMTH Group’s share in voting rights | Net income (Billions of Yen) | ||||||||||||||||||||
(Subsidiaries’ share in voting rights) | 1HFY2011 | 1HFY2010 | Change | |||||||||||||||||||||
The Sumitomo Trust and Banking Co., Ltd. | JPY 342,037 mil. | Trust and banking | 100 | (— | ) | 37.6 | 48.4 | (10.8 | ) | |||||||||||||||
The Sumishin Shinko Co., Ltd. | JPY 50 mil. | Property maintenance | 100 | (100 | ) | 0.0 | 0.0 | 0.0 | ||||||||||||||||
Sumishin Guaranty Co., Ltd. | JPY 300 mil. | Housing loan guaranty | 100 | (100 | ) | 0.9 | 0.6 | 0.3 | ||||||||||||||||
STB Wealth Partners Co., Ltd. | JPY 155 mil. | Consulting | 100 | (100 | ) | 0.0 | (0.0 | ) | 0.0 | |||||||||||||||
Sumishin Real Estate Loan & Finance, Ltd. | JPY 6,000 mil. | Finance services | 100 | (100 | ) | 1.8 | 0.7 | 1.0 | ||||||||||||||||
Sumishin Business Service Co., Ltd. | JPY 80 mil. | Agency services/ Temporary staffing/ Training services | 100 | (100 | ) | (0.0 | ) | (0.0 | ) | 0.0 | ||||||||||||||
STB Real Estate Investment Management Co., Ltd. | JPY 300 mil. | Asset management | 100 | (100 | ) | 0.1 | 0.1 | (0.0 | ) | |||||||||||||||
Nikko Asset Management Co., Ltd. | JPY 17,363 mil. | Asset management | 91.34 | (91.34 | ) | 2.7 | 2.5 | 0.1 | ||||||||||||||||
Sumishin Panasonic Financial Services Co., Ltd. | JPY 25,584 mil. | General leasing/ Credit cards | 84.89 | (84.89 | ) | 5.5 | 6.0 | (0.4 | ) | |||||||||||||||
Japan TA Solution, Ltd. | JPY 2,005 mil. | Development and management of systems/ Operations of entrusted data processing | 80 | (80 | ) | 0.0 | 0.1 | (0.0 | ) | |||||||||||||||
Sumishin Card Co., Ltd. | JPY 50 mil. | Credit cards | 100 | (100 | ) | 0.0 | 0.0 | 0.0 | ||||||||||||||||
STB Investment Corporation | JPY 35 mil. | Venture capital | 100 | (100 | ) | (0.0 | ) | (0.0 | ) | 0.0 | ||||||||||||||
Sumishin Information Service Co., Ltd. | JPY 100 mil. | Information technology/ Commissioned accounting operation | 100 | (100 | ) | 0.0 | 0.0 | (0.0 | ) | |||||||||||||||
STB Asset Management Co., Ltd. | JPY 300 mil. | Asset management | 100 | (100 | ) | 0.1 | 0.2 | (0.0 | ) | |||||||||||||||
STB Research Institute Co., Ltd. | JPY 300 mil. | Research and consulting/ Asset management | 100 | (100 | ) | (0.0 | ) | (0.0 | ) | 0.0 | ||||||||||||||
Sumishin Realty Co., Ltd. | JPY 300 mil. | Residential brokerage | 100 | (100 | ) | 0.0 | 0.1 | (0.0 | ) | |||||||||||||||
The Sumitomo Trust Finance (H.K.) Ltd. | USD 45 mil. | Finance services | 100 | (100 | ) | 0.2 | 0.1 | 0.1 | ||||||||||||||||
Sumitomo Trust and Banking (Luxembourg) S.A. | USD 30 mil. | Banking, security and trust services | 100 | (100 | ) | 0.1 | 0.1 | (0.0 | ) | |||||||||||||||
Sumitomo Trust and Banking Co. (U.S.A.) | USD 56 mil. | Banking and trust services | 100 | (100 | ) | 0.5 | 0.3 | 0.2 | ||||||||||||||||
STB Preferred Capital 2 (Cayman) Ltd. | JPY 51,500 mil. | Finance services | 100 | (100 | ) | 0.7 | 0.7 | (0.0 | ) | |||||||||||||||
STB Preferred Capital 3 (Cayman) Ltd. | JPY 51,500 mil. | Finance services | 100 | (100 | ) | 0.7 | 0.7 | (0.0 | ) | |||||||||||||||
STB Preferred Capital 4 (Cayman) Ltd. | JPY 111,600 mil. | Finance services | 100 | (100 | ) | 2.3 | 2.3 | (0.0 | ) | |||||||||||||||
STB Preferred Capital 5 (Cayman) Ltd. | JPY 70,900 mil. | Finance services | 100 | (100 | ) | 1.7 | 1.7 | (0.0 | ) | |||||||||||||||
STB Omega Investment Ltd. | USD 60 mil. | Finance services | 100 | (100 | ) | 0.5 | 0.3 | 0.1 | ||||||||||||||||
SBI Sumishin Net Bank, Ltd. | JPY 31,000 mil. | Banking | 50 | (50 | ) | 3.2 | 1.4 | 1.7 | ||||||||||||||||
Japan Pension Operation Service, Ltd. | JPY 1,500 mil. | Pension plan administration services | 50 | (50 | ) | 0.0 | 0.0 | (0.0 | ) | |||||||||||||||
BUSINEXT CORPORATION | JPY 9,000 mil. | Finance services | 40 | (40 | ) | 0.1 | 0.2 | (0.1 | ) | |||||||||||||||
Sumishin Life Card Company, Limited | JPY 255 mil. | Credit cards | 40 | (40 | ) | 0.0 | 0.0 | (0.0 | ) | |||||||||||||||
Top REIT Asset Management Co., Ltd. | JPY 300 mil. | Investment company (Asset management) | 38 | (38 | ) | 0.1 | 0.1 | (0.0 | ) | |||||||||||||||
HR One Corporation | JPY 519 mil. | Employees data administration | 35.89 | (35.89 | ) | 0.0 | 0.0 | (0.0 | ) | |||||||||||||||
Zijin Trust Co., Ltd. | RMB 500 mil. | Banking, security and trust services | 19.99 | (19.99 | ) | 0.1 | — | — |
14
Table of Contents
Maturity ladder of interest rate swaps (on Hedge accounting applied)
[Non-consolidated (CMTB + STB)]
Millions of Yen | ||||||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | |||||||||||||||||||||||||||||||
Less than 1 year | 1 year to 5 years | Over 5 years | Total | Less than 1 year | 1 year to 5 years | Over 5 years | Total | |||||||||||||||||||||||||
Fix Rcv-Flt Pay | 1,096,477 | 2,920,300 | 756,049 | 4,772,826 | 926,209 | 3,135,292 | 683,009 | 4,744,510 | ||||||||||||||||||||||||
Flt Rcv-Fix Pay | 231,421 | 438,898 | 953,612 | 1,623,932 | 88,835 | 502,020 | 1,035,467 | 1,626,324 | ||||||||||||||||||||||||
Flt Rcv-Flt Pay | — | — | — | — | — | — | — | — |
[CMTB]
Millions of Yen | ||||||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | |||||||||||||||||||||||||||||||
Less than 1 year | 1 year to 5 years | Over 5 years | Total | Less than 1 year | 1 year to 5 years | Over 5 years | Total | |||||||||||||||||||||||||
Fix Rcv-Flt Pay | 7,500 | 113,195 | 100,000 | 220,695 | 2,500 | 123,147 | 100,000 | 225,647 | ||||||||||||||||||||||||
Flt Rcv-Fix Pay | — | — | 100,000 | 100,000 | — | — | 100,000 | 100,000 | ||||||||||||||||||||||||
Flt Rcv-Flt Pay | — | — | — | — | — | — | — | — |
[STB]
Millions of Yen | ||||||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | |||||||||||||||||||||||||||||||
Less than 1 year | 1 year to 5 years | Over 5 years | Total | Less than 1 year | 1 year to 5 years | Over 5 years | Total | |||||||||||||||||||||||||
Fix Rcv-Flt Pay | 1,088,977 | 2,807,105 | 656,049 | 4,552,131 | 923,709 | 3,012,145 | 583,009 | 4,518,863 | ||||||||||||||||||||||||
Flt Rcv-Fix Pay | 231,421 | 438,898 | 853,612 | 1,523,932 | 88,835 | 502,020 | 935,467 | 1,526,324 | ||||||||||||||||||||||||
Flt Rcv-Flt Pay | — | — | — | — | — | — | — | — |
15
Table of Contents
[Consolidated]
Millions of Yen | ||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||
Projected benefit obligation (A) | 390,160 | 383,142 | 7,017 | |||||||||
(Discount rate) (*2) | 1.5% - 2.0% | 1.5% - 2.0% | — | |||||||||
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Plan assets (B) | 450,005 | 437,332 | 12,672 | |||||||||
Provision for retirement benefits (C) | 14,720 | 11,550 | 3,169 | |||||||||
Advanced benefit paid (D) | 142,392 | 223,058 | (80,666 | ) | ||||||||
Unrecognized net prior service cost (E) | 290 | 325 | (34 | ) | ||||||||
Unrecognized net actuarial loss (F) | 67,536 | 156,992 | (89,455 | ) | ||||||||
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(*1) | (A) = (B) + (C) - (D) + (E) + (F) |
(*2) | Minimum and maximum rate of the consolidated companies |
Millions of Yen | ||||||||||||
1HFY2011 | 1HFY2010 | Change | ||||||||||
Retirement benefit expenses | (1,504 | ) | (10,158 | ) | 8,654 | |||||||
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Major factors for deferred tax assets and deferred tax liabilities
[Consolidated]
Millions of Yen | ||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||
Deferred tax assets (A) | 278,854 | 243,233 | 35,620 | |||||||||
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Devaluation of securities | 73,377 | 80,615 | (7,238 | ) | ||||||||
Allowance for loan losses (including written-off of loans) | 58,271 | 66,868 | (8,596 | ) | ||||||||
Provision for retirement benefits | 25,763 | 25,227 | 536 | |||||||||
Loss carry forwards | 94,484 | 92,231 | 2,252 | |||||||||
Valuation difference on available-for-sale securities | 9,205 | 11,936 | (2,731 | ) | ||||||||
Defined hedge gains/ losses | 1,979 | — | 1,979 | |||||||||
Others | 133,030 | 84,051 | 48,979 | |||||||||
Valuation allowance | (45,009 | ) | (49,723 | ) | 4,713 | |||||||
Offset with deferred tax liabilities | (72,249 | ) | (67,974 | ) | (4,274 | ) | ||||||
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Deferred tax liabilities (B) | 3,544 | 3,997 | (453 | ) | ||||||||
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Employee retirement benefit trust | 45,370 | 41,445 | 3,924 | |||||||||
Defined hedge gains/ losses | — | 8,982 | (8,982 | ) | ||||||||
Valuation difference on available-for-sale securities | — | 7,653 | (7,653 | ) | ||||||||
Others | 30,422 | 13,890 | 16,532 | |||||||||
Offset with deferred tax assets | (72,249 | ) | (67,974 | ) | (4,274 | ) | ||||||
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Net deferred tax assets (A) - (B) | 275,310 | 239,236 | 36,074 | |||||||||
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Percentage to Tier I | 13.2 | % | — | — | ||||||||
Tier I | 2,082,834 | — | — | |||||||||
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Note: Deferred tax assets arising from the management integration is included in “Others”.
16
Table of Contents
<Reference> Other referential financial figures
[Non-consolidated (CMTB + CMAB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||||||||||
Total | CMTB | CMAB | STB | Total | CMTB | CMAB | STB | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 2,032.8 | 554.3 | 20.9 | 1,457.5 | 1,080.1 | 952.6 | 82.4 | (6.5 | ) | 876.7 | ||||||||||||||||||||||||||
Call loans | 34.0 | — | — | 34.0 | 15.3 | 18.6 | — | — | 18.6 | |||||||||||||||||||||||||||
Receivables under resale agreements | 51.5 | — | — | 51.5 | 33.2 | 18.3 | — | — | 18.3 | |||||||||||||||||||||||||||
Receivables under securities borrowing transactions | 7.7 | 6.7 | — | 1.0 | 9.3 | (1.6 | ) | (2.6 | ) | — | 1.0 | |||||||||||||||||||||||||
Monetary claims bought | 272.9 | 100.0 | — | 172.8 | 292.0 | (19.0 | ) | 0.1 | — | (19.2 | ) | |||||||||||||||||||||||||
Trading assets | 694.3 | 47.1 | — | 647.2 | 678.7 | 15.5 | 10.5 | — | 5.0 | |||||||||||||||||||||||||||
Money held in trust | 22.0 | — | — | 22.0 | 22.2 | (0.1 | ) | — | — | (0.1 | ) | |||||||||||||||||||||||||
Securities | 7,368.5 | 2,960.5 | 30.2 | 4,377.7 | 8,721.5 | (1,352.9 | ) | (721.8 | ) | (58.9 | ) | (572.2 | ) | |||||||||||||||||||||||
Loans and bills discounted | 20,875.2 | 8,845.8 | — | 12,029.4 | 21,015.2 | (140.0 | ) | (15.7 | ) | — | (124.2 | ) | ||||||||||||||||||||||||
Foreign exchanges | 6.6 | 1.0 | — | 5.5 | 17.9 | (11.2 | ) | (11.1 | ) | — | (0.0 | ) | ||||||||||||||||||||||||
Other assets | 1,157.8 | 257.9 | 27.8 | 872.1 | 1,416.7 | (258.8 | ) | (97.5 | ) | (2.0 | ) | (159.2 | ) | |||||||||||||||||||||||
Tangible fixed assets | 219.8 | 96.3 | 0.3 | 123.1 | 214.1 | 5.7 | (2.0 | ) | (0.0 | ) | 7.8 | |||||||||||||||||||||||||
Intangible fixed assets | 55.2 | 19.9 | 3.6 | 31.6 | 51.8 | 3.3 | 0.0 | 0.0 | 3.3 | |||||||||||||||||||||||||||
Deferred tax assets | 222.9 | 138.6 | 3.5 | 80.7 | 220.4 | 2.4 | 4.1 | 0.4 | (2.1 | ) | ||||||||||||||||||||||||||
Customers’ liabilities for acceptances and guarantees | 403.7 | 53.2 | — | 350.5 | 385.8 | 17.8 | 3.5 | — | 14.3 | |||||||||||||||||||||||||||
Allowance for loan losses | (121.2 | ) | (39.9 | ) | — | (81.2 | ) | (127.8 | ) | 6.6 | 2.3 | — | 4.2 | |||||||||||||||||||||||
Allowance for investment loss | (1.1 | ) | — | — | (1.1 | ) | (1.1 | ) | — | — | — | — | ||||||||||||||||||||||||
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Total assets | 33,303.2 | 13,041.8 | 86.5 | 20,174.8 | 34,045.8 | (742.6 | ) | (747.6 | ) | (67.1 | ) | 72.1 | ||||||||||||||||||||||||
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Liabilities: | ||||||||||||||||||||||||||||||||||||
Deposits | 22,182.1 | 9,372.6 | 0.0 | 12,809.4 | 21,639.6 | 542.4 | 36.4 | (0.0 | ) | 505.9 | ||||||||||||||||||||||||||
Negotiable certificates of deposit | 2,766.5 | 318.3 | — | 2,448.2 | 2,627.6 | 138.9 | (51.7 | ) | — | 190.6 | ||||||||||||||||||||||||||
Call money | 406.9 | 110.4 | 39.0 | 257.5 | 409.8 | (2.8 | ) | (138.5 | ) | (64.0 | ) | 199.6 | ||||||||||||||||||||||||
Payables under repurchase agreements | 140.5 | 18.5 | — | 121.9 | 620.8 | (480.3 | ) | 18.5 | — | (498.8 | ) | |||||||||||||||||||||||||
Collateral for lending securities | 648.4 | 648.4 | — | — | 1,320.4 | (672.0 | ) | (513.2 | ) | — | (158.7 | ) | ||||||||||||||||||||||||
Trading liabilities | 179.9 | 10.9 | — | 168.9 | 110.4 | 69.4 | 3.2 | — | 66.1 | |||||||||||||||||||||||||||
Borrowed money | 1,546.0 | 659.4 | — | 886.6 | 1,764.7 | (218.6 | ) | (19.5 | ) | — | (199.0 | ) | ||||||||||||||||||||||||
Foreign exchanges | 0.1 | — | — | 0.1 | 0.0 | 0.0 | — | — | 0.0 | |||||||||||||||||||||||||||
Short-term bonds payable | 253.0 | — | — | 253.0 | 325.7 | (72.6 | ) | — | — | (72.6 | ) | |||||||||||||||||||||||||
Corporate bonds | 740.2 | 262.2 | — | 477.9 | 702.1 | 38.0 | (4.9 | ) | — | 43.0 | ||||||||||||||||||||||||||
Borrowed money from trust account | 1,109.6 | 700.7 | — | 408.9 | 1,233.3 | (123.7 | ) | (100.9 | ) | — | (22.7 | ) | ||||||||||||||||||||||||
Other liabilities | 947.7 | 134.4 | 8.5 | 804.8 | 935.2 | 12.5 | 18.0 | 0.2 | (5.7 | ) | ||||||||||||||||||||||||||
Provision for bonuses | 6.5 | 2.0 | 0.4 | 4.1 | 6.8 | (0.2 | ) | 0.0 | 0.0 | (0.2 | ) | |||||||||||||||||||||||||
Provision for directors’ bonuses | — | — | — | — | 0.0 | (0.0 | ) | — | — | (0.0 | ) | |||||||||||||||||||||||||
Provision for retirement benefits | 0.2 | — | — | 0.2 | 0.2 | (0.0 | ) | — | — | (0.0 | ) | |||||||||||||||||||||||||
Provision for reimbursement of deposits | 6.3 | 5.1 | — | 1.1 | 6.4 | (0.0 | ) | (0.1 | ) | — | 0.0 | |||||||||||||||||||||||||
Provision for contingent loss | 17.7 | 7.3 | — | 10.4 | 18.4 | (0.6 | ) | 0.1 | — | (0.8 | ) | |||||||||||||||||||||||||
Provision for relocation expenses | 9.0 | 0.2 | 0.3 | 8.5 | 5.6 | 3.4 | 0.2 | 0.3 | 2.8 | |||||||||||||||||||||||||||
Deferred tax liabilities for land revaluation | 5.1 | — | — | 5.1 | 5.7 | (0.5 | ) | — | — | (0.5 | ) | |||||||||||||||||||||||||
Acceptances and guarantees | 403.7 | 53.2 | — | 350.5 | 385.8 | 17.8 | 3.5 | — | 14.3 | |||||||||||||||||||||||||||
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Total liabilities | 31,370.3 | 12,304.0 | 48.3 | 19,017.9 | 32,119.3 | (749.0 | ) | (748.8 | ) | (63.4 | ) | 63.1 | ||||||||||||||||||||||||
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Net assets: | ||||||||||||||||||||||||||||||||||||
Capital stock | 752.7 | 399.6 | 11.0 | 342.0 | 752.7 | — | — | — | — | |||||||||||||||||||||||||||
Capital surplus | 466.8 | 149.0 | 21.2 | 296.5 | 467.3 | (0.4 | ) | — | — | (0.4 | ) | |||||||||||||||||||||||||
Legal capital surplus | 412.8 | 149.0 | 21.2 | 242.5 | 412.8 | — | — | — | — | |||||||||||||||||||||||||||
Other capital surplus | 54.0 | — | — | 54.0 | 54.4 | (0.4 | ) | — | — | (0.4 | ) | |||||||||||||||||||||||||
Retained earnings | 748.0 | 220.7 | 5.9 | 521.4 | 719.9 | 28.1 | 9.1 | (3.7 | ) | 22.7 | ||||||||||||||||||||||||||
Legal retained earnings | 105.5 | 49.5 | — | 56.0 | 100.8 | 4.7 | 1.6 | — | 3.1 | |||||||||||||||||||||||||||
Other retained earnings | 642.5 | 171.1 | 5.9 | 465.3 | 619.0 | 23.4 | 7.5 | (3.7 | ) | 19.6 | ||||||||||||||||||||||||||
Reserve for overseas investment loss | 0.0 | — | — | 0.0 | 0.0 | (0.0 | ) | — | — | (0.0 | ) | |||||||||||||||||||||||||
Other voluntary reserve | 371.8 | — | — | 371.8 | 371.8 | — | — | — | — | |||||||||||||||||||||||||||
Retained earnings brought forward | 270.6 | 171.1 | 5.9 | 93.5 | 247.2 | 23.4 | 7.5 | (3.7 | ) | 19.6 | ||||||||||||||||||||||||||
Treasury stock | — | — | — | — | (0.4 | ) | 0.4 | — | — | 0.4 | ||||||||||||||||||||||||||
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Shareholders’ equity | 1,967.6 | 769.4 | 38.1 | 1,160.0 | 1,939.4 | 28.1 | 9.1 | (3.7 | ) | 22.7 | ||||||||||||||||||||||||||
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Valuation difference on available-for-sale securities | (10.2 | ) | (18.3 | ) | (0.0 | ) | 8.0 | (4.3 | ) | (5.8 | ) | (9.0 | ) | 0.0 | 3.2 | |||||||||||||||||||||
Deferred gains or losses on hedges | (2.4 | ) | 3.2 | — | (5.6 | ) | 12.6 | (15.0 | ) | 1.0 | — | (16.1 | ) | |||||||||||||||||||||||
Revaluation reserve for land | (22.0 | ) | (16.5 | ) | — | (5.5 | ) | (21.2 | ) | (0.8 | ) | — | — | (0.8 | ) | |||||||||||||||||||||
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Valuation and translation adjustments | (34.7 | ) | (31.6 | ) | (0.0 | ) | (3.0 | ) | (13.0 | ) | (21.7 | ) | (8.0 | ) | 0.0 | (13.7 | ) | |||||||||||||||||||
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Total net assets | 1,932.8 | 737.7 | 38.1 | 1,156.9 | 1,926.4 | 6.4 | 1.1 | (3.6 | ) | 9.0 | ||||||||||||||||||||||||||
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Total liabilities and net assets | 33,303.2 | 13,041.8 | 86.5 | 20,174.8 | 34,045.8 | (742.6 | ) | (747.6 | ) | (67.1 | ) | 72.1 | ||||||||||||||||||||||||
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17
Table of Contents
[Non-consolidated (CMTB + CMAB + STB)]
Items | Billions of Yen | |||||||||||||||||||||||||||||||||||
1HFY2011 | 1HFY2010 | Change | ||||||||||||||||||||||||||||||||||
Total | CMTB | CMAB | STB | Total | CMTB | CMAB | STB | |||||||||||||||||||||||||||||
Ordinary income | 378.3 | 138.0 | 21.2 | 219.0 | 387.4 | (9.1 | ) | (11.5 | ) | (0.1 | ) | 2.5 | ||||||||||||||||||||||||
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Trust fees | 46.9 | 5.0 | 17.3 | 24.5 | 48.5 | (1.5 | ) | (0.7 | ) | (0.1 | ) | (0.5 | ) | |||||||||||||||||||||||
Interest income | 189.1 | 79.6 | 0.0 | 109.4 | 195.0 | (5.8 | ) | (0.4 | ) | (0.0 | ) | (5.4 | ) | |||||||||||||||||||||||
Interest on loans and discounts | 122.0 | 49.7 | — | 72.3 | 131.5 | (9.4 | ) | (4.6 | ) | — | (4.7 | ) | ||||||||||||||||||||||||
Interest on securities | 60.8 | 27.2 | 0.0 | 33.5 | 52.2 | 8.6 | 4.2 | (0.0 | ) | 4.4 | ||||||||||||||||||||||||||
Fees and commissions | 68.9 | 30.0 | 3.8 | 35.0 | 72.7 | (3.8 | ) | (2.8 | ) | 0.0 | (1.0 | ) | ||||||||||||||||||||||||
Trading income | 3.3 | 1.8 | — | 1.5 | 7.1 | (3.7 | ) | 0.3 | — | (4.1 | ) | |||||||||||||||||||||||||
Other ordinary income | 61.5 | 18.2 | — | 43.3 | 50.7 | 10.7 | (5.3 | ) | — | 16.1 | ||||||||||||||||||||||||||
Other income | 8.3 | 3.1 | 0.0 | 5.1 | 13.2 | (4.9 | ) | (2.5 | ) | (0.0 | ) | (2.3 | ) | |||||||||||||||||||||||
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Ordinary expenses | 290.7 | 117.6 | 16.1 | 157.0 | 296.6 | (5.8 | ) | 10.3 | 0.5 | (16.7 | ) | |||||||||||||||||||||||||
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Interest expenses | 71.2 | 27.5 | 0.0 | 43.6 | 76.3 | (5.0 | ) | (3.1 | ) | (0.0 | ) | (1.8 | ) | |||||||||||||||||||||||
Interest on deposits | 44.2 | 18.7 | — | 25.5 | 48.7 | (4.4 | ) | (2.3 | ) | — | (2.1 | ) | ||||||||||||||||||||||||
Fees and commissions payments | 30.9 | 7.4 | 6.4 | 17.1 | 31.3 | (0.4 | ) | 0.0 | (0.0 | ) | (0.3 | ) | ||||||||||||||||||||||||
Trading expenses | 0.2 | 0.2 | — | — | 0.0 | 0.1 | 0.1 | — | — | |||||||||||||||||||||||||||
Other ordinary expenses | 16.7 | 6.4 | — | 10.3 | 25.8 | (9.1 | ) | 1.5 | — | (10.6 | ) | |||||||||||||||||||||||||
General and administrative expenses | 133.3 | 54.2 | 9.2 | 69.8 | 134.4 | (1.1 | ) | (0.2 | ) | 0.3 | (1.1 | ) | ||||||||||||||||||||||||
Other expenses | 38.3 | 21.8 | 0.3 | 16.1 | 28.5 | 9.7 | 12.0 | 0.3 | (2.7 | ) | ||||||||||||||||||||||||||
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Ordinary profit | 87.5 | 20.4 | 5.1 | 61.9 | 90.8 | (3.2 | ) | (21.8 | ) | (0.6 | ) | 19.3 | ||||||||||||||||||||||||
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Extraordinary income | 0.2 | — | — | 0.2 | 15.0 | (14.7 | ) | (8.0 | ) | — | (6.7 | ) | ||||||||||||||||||||||||
Extraordinary loss | 7.8 | 3.0 | 0.3 | 4.4 | 21.3 | (13.5 | ) | 0.8 | 0.0 | (14.4 | ) | |||||||||||||||||||||||||
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Income before Income Taxes | 79.9 | 17.3 | 4.8 | 57.7 | 84.5 | (4.5 | ) | (30.8 | ) | (0.7 | ) | 27.0 | ||||||||||||||||||||||||
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Income taxes-Current | 12.3 | 0.0 | 2.4 | 9.8 | 6.7 | 5.5 | 0.0 | (0.1 | ) | 5.7 | ||||||||||||||||||||||||||
Income taxes-Deferred | 9.9 | 0.1 | (0.4 | ) | 10.3 | (7.1 | ) | 17.1 | (14.9 | ) | (0.1 | ) | 32.2 | |||||||||||||||||||||||
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Income taxes | 22.3 | 0.1 | 1.9 | 20.1 | (0.4 | ) | 22.7 | (14.8 | ) | (0.3 | ) | 37.9 | ||||||||||||||||||||||||
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Net income | 57.6 | 17.1 | 2.8 | 37.6 | 84.9 | (27.2 | ) | (15.9 | ) | (0.4 | ) | (10.8 | ) | |||||||||||||||||||||||
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18
Table of Contents
(3) Statement of trust account
[Non-consolidated (CMTB + CMAB + STB)]
Items | Billions of Yen | |||||||||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||||||||||
Total | CMTB | CMAB | STB | Total | CMTB | CMAB | STB | |||||||||||||||||||||||||||||
Loans and bills discounted | 543.9 | 219.9 | — | 323.9 | 565.0 | (21.1 | ) | (11.9 | ) | — | (9.2 | ) | ||||||||||||||||||||||||
Securities | 586.2 | 3.1 | 76.1 | 506.9 | 713.1 | (126.8 | ) | (0.1 | ) | (1.0 | ) | (125.6 | ) | |||||||||||||||||||||||
Beneficiary rights | 98,627.6 | 0.0 | 29,895.6 | 68,732.0 | 95,836.2 | 2,791.3 | (0.0 | ) | (702.8 | ) | 3,494.2 | |||||||||||||||||||||||||
Securities held in custody accounts | 190.7 | 0.1 | — | 190.6 | 304.5 | (113.8 | ) | (0.0 | ) | — | (113.8 | ) | ||||||||||||||||||||||||
Money claims | 9,577.3 | 0.1 | 1,334.2 | 8,242.9 | 10,245.3 | (668.0 | ) | (0.0 | ) | (82.6 | ) | (585.3 | ) | |||||||||||||||||||||||
Tangible fixed assets | 9,311.0 | 4,927.5 | — | 4,383.5 | 9,419.0 | (108.0 | ) | (102.2 | ) | — | (5.7 | ) | ||||||||||||||||||||||||
Intangible fixed assets | 66.9 | 30.7 | — | 36.1 | 68.3 | (1.3 | ) | (0.2 | ) | — | (1.1 | ) | ||||||||||||||||||||||||
Other claims | 1,728.6 | 36.3 | — | 1,692.2 | 1,756.3 | (27.7 | ) | (0.6 | ) | — | (27.0 | ) | ||||||||||||||||||||||||
Call loans | 27.8 | — | — | 27.8 | 42.3 | (14.5 | ) | — | — | (14.5 | ) | |||||||||||||||||||||||||
Loans to banking account | 1,109.6 | 700.7 | — | 408.9 | 1,233.3 | (123.7 | ) | (100.9 | ) | — | (22.7 | ) | ||||||||||||||||||||||||
Cash and due from banks | 418.0 | 174.2 | 19.7 | 224.0 | 428.6 | (10.5 | ) | (11.7 | ) | 1.2 | (0.0 | ) | ||||||||||||||||||||||||
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Total assets | 122,188.1 | 6,093.0 | 31,325.7 | 84,769.3 | 120,612.5 | 1,575.6 | (227.9 | ) | (785.2 | ) | 2,588.8 | |||||||||||||||||||||||||
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Money trusts | 21,820.9 | 712.0 | 8,249.5 | 12,859.3 | 22,032.9 | (212.0 | ) | (65.5 | ) | (55.4 | ) | (90.9 | ) | |||||||||||||||||||||||
Pension trusts | 12,725.4 | — | 6,581.0 | 6,144.3 | 13,254.9 | (529.5 | ) | — | (414.4 | ) | (115.0 | ) | ||||||||||||||||||||||||
Property formation benefit trusts | 22.0 | 13.2 | — | 8.7 | 22.1 | (0.0 | ) | (0.0 | ) | — | (0.0 | ) | ||||||||||||||||||||||||
Loan trusts | 180.4 | 179.9 | — | 0.5 | 248.2 | (67.8 | ) | (48.3 | ) | — | (19.4 | ) | ||||||||||||||||||||||||
Securities investment trusts | 38,716.5 | — | 12,242.5 | 26,473.9 | 37,776.4 | 940.0 | — | (251.9 | ) | 1,192.0 | ||||||||||||||||||||||||||
Money entrusted, other than money trusts | 3,090.4 | 0.2 | 326.5 | 2,763.6 | 2,553.3 | 537.0 | (0.0 | ) | (12.6 | ) | 549.7 | |||||||||||||||||||||||||
Securities trusts | 20,168.7 | 0.1 | 1,410.8 | 18,757.7 | 18,550.6 | 1,618.0 | (0.0 | ) | 25.3 | 1,592.6 | ||||||||||||||||||||||||||
Money claim trusts | 9,607.0 | 1.0 | 1,353.5 | 8,252.4 | 10,288.9 | (681.8 | ) | (0.0 | ) | (81.3 | ) | (600.4 | ) | |||||||||||||||||||||||
Land and fixtures trusts | 118.6 | 76.5 | — | 42.0 | 118.1 | 0.4 | 0.3 | — | 0.1 | |||||||||||||||||||||||||||
Composite trusts | 15,737.8 | 5,109.8 | 1,161.6 | 9,466.3 | 15,766.4 | (28.6 | ) | (114.2 | ) | 5.3 | 80.2 | |||||||||||||||||||||||||
Other trusts | 0.0 | 0.0 | — | 0.0 | 0.0 | — | — | — | — | |||||||||||||||||||||||||||
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Total liabilities | 122,188.1 | 6,093.0 | 31,325.7 | 84,769.3 | 120,612.5 | 1,575.6 | (227.9 | ) | (785.2 | ) | 2,588.8 | |||||||||||||||||||||||||
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(*) | The amount of retrusted assets to Japan Trustee Services Bank, Ltd. as a securities processing is included in Beneficiary rights: |
Sep. 2011: CMAB 29,881.4 billion yen, STB 68,695.2 billion yen
Mar. 2011: CMAB 30,583.8 billion yen, STB 65,200.9 billion yen
(4) Breakdown of principal guaranteed trust a/c
[Non-consolidated (CMTB + STB)]
Billions of Yen | ||||||||||||||||||||||||||||
Sep. 2011 | Mar. 2011 | Change | ||||||||||||||||||||||||||
Total | CMTB | STB | Total | CMTB | STB | |||||||||||||||||||||||
Money trusts | ||||||||||||||||||||||||||||
Loans and bills discounted | 371.3 | 216.2 | 155.1 | 401.9 | (30.6 | ) | (6.4 | ) | (24.1 | ) | ||||||||||||||||||
Securities | 0.0 | — | 0.0 | 0.0 | — | — | — | |||||||||||||||||||||
Others | 920.5 | 573.6 | 346.9 | 1,041.2 | (120.7 | ) | (87.1 | ) | (33.6 | ) | ||||||||||||||||||
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Total assets | 1,291.9 | 789.8 | 502.0 | 1,443.3 | (151.4 | ) | (93.6 | ) | (57.7 | ) | ||||||||||||||||||
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Principal | 1,290.7 | 789.6 | 501.1 | 1,442.1 | (151.3 | ) | (93.7 | ) | (57.6 | ) | ||||||||||||||||||
Reserves for JOMT (Jointly-operated money trust) | 0.2 | 0.1 | 0.1 | 0.3 | (0.0 | ) | 0.0 | (0.1 | ) | |||||||||||||||||||
Others | 0.8 | 0.0 | 0.8 | 0.8 | 0.0 | 0.0 | (0.0 | ) | ||||||||||||||||||||
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Total liabilities | 1,291.9 | 789.8 | 502.0 | 1,443.3 | (151.4 | ) | (93.6 | ) | (57.7 | ) | ||||||||||||||||||
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Loan trusts | ||||||||||||||||||||||||||||
Loans and bills discounted | — | — | — | — | — | — | — | |||||||||||||||||||||
Securities | 0.4 | 0.4 | — | 0.4 | (0.0 | ) | (0.0 | ) | — | |||||||||||||||||||
Others | 181.2 | 180.7 | 0.5 | 249.1 | (67.8 | ) | (48.3 | ) | (19.4 | ) | ||||||||||||||||||
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Total assets | 181.7 | 181.2 | 0.5 | 249.5 | (67.8 | ) | (48.3 | ) | (19.4 | ) | ||||||||||||||||||
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Principal | 179.0 | 178.6 | 0.4 | 246.0 | (66.9 | ) | (47.7 | ) | (19.1 | ) | ||||||||||||||||||
Reserves for loan trust | 1.2 | 1.1 | 0.0 | 1.5 | (0.3 | ) | (0.2 | ) | (0.1 | ) | ||||||||||||||||||
Others | 1.4 | 1.4 | 0.0 | 1.9 | (0.4 | ) | (0.3 | ) | (0.1 | ) | ||||||||||||||||||
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Total liabilities | 181.7 | 181.2 | 0.5 | 249.5 | (67.8 | ) | (48.3 | ) | (19.4 | ) | ||||||||||||||||||
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19
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 annual report on Form 20-F 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.
20