A N N U A L R E P O R T
2001
Y E A R E N D E D M A R C H 31 , 2 0 0 1
C O N T E N T S
PROFILE (As of April 1, 2001)
Foreword
President’s Message
Topics
Financial Highlights
Fiscal 2000 Results
Progress Report on Strengthening
the Financial Base of the Bank
Asset Quality
Management Issues
The SMBC Plan for Strengthening
the Financial Base of the Bank
Corporate Governance
Compliance
Risk Management
Divisional Review
Individual Business Unit Strategies
Consumer Banking Unit
Middle Market Banking Unit
Corporate Banking Unit
International Banking Unit
Treasury Unit
Investment Banking Unit
The Group Company Networking Strategy
e-Business
Social Contribution
Environmental Preservation
Corporate History
Financial Data
Corporate Data
2
SUMITOMO MITSUI BANKING CORPORATION 2001
1
2
4
6
9
10
18
20
22
24
32
34
37
40
42
44
46
48
50
52
53
54
55
225
Total Assets
Deposits
Loans and Bills Discounted
Capital Stock
Consolidated Capital Ratio
¥113,451.3 billion
¥ 59,041.3 billion
¥ 61,747.8 billion
¥
1,276.7 billion
10.8% (BIS Guidelines)
Shares Issued and Outstanding
(As of June 29, 2001)
Ordinary Share
Type 1 Preference Share
Type 5 Preference Share
Type 6 Preference Share
5,703 million
167 million
800 million
2 million
Long-term Credit Ratings
(As of June 29, 2001)
Number of Employees
(As of April 1, 2001)
Network
(As of June 30, 2001)
(Moody’s)
A3
BBB+ (S&P)
(Fitch)
A
(R&I)
AA–
(JCR)
AA
27,793
Domestic Branches 578
(Excluding subbranches
and agencies)
Overseas Branches 21
(Excluding subbranches
and representative offices)
OUR MISSION
•To provide optimum added value to our customers
and together with them achieve growth
•To create sustainable shareholder value through
business growth
•To provide a challenging and professionally rewarding
work environment for our dedicated employees
This material contains certain forward-looking statements. Such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and actual results may materially
differ from those contained in the forward-looking statements as a
result of various factors. Important factors that might cause such a
material difference include, but are not limited to, those economic
conditions referred to in this material as assumptions.
In addition, the following items are among the factors that could
cause actual results to differ materially from the forward-looking state-
ments in this material: business conditions in the banking industry, the
regulatory environment, new legislation, competition with other finan-
cial services companies, changing technology and evolving banking
industry standards and similar matters.
July 2001
Sumitomo Mitsui Banking Corporation
Public Relations Dept.
1-2, Yurakucho 1-chome,
Chiyoda-ku, Tokyo 100-0006, Japan
Tel: 03-3501-1111
*This annual report was printed on recycled paper.
Foreword
As the founding executives, it is our great pleasure to invite shareholders and stakeholders of the
newly formed Sumitomo Mitsui Banking Corporation to read the Bank’s first annual report. We strive
to provide complete disclosure on an impartial, timely and continuous basis in an easily understood
format as part of our mission to enhance shareholder value and offer value to customers. This report
outlines the strategies for SMBC and summarizes the fiscal 2000 results for the two founding banks.
We hope that it will provide you with a greater understanding of where we have come from, what we
have accomplished and where we are headed.
Banks will have to reinvent themselves repeatedly in the next few years to thrive amid the significant
changes wrought by the various regulatory reforms, the IT revolution and the globalization of the
financial industry. We are positioning SMBC to have a stronger foundation on which to heighten
profitability and enhance our international profile. To accomplish this, we are putting emphasis on
gaining initiatives in various businesses to keep abreast of the pace of change, and fostering creativity
and originality to provide us with a leading edge.
Although economic conditions over the next few years will be daunting, we shall navigate resolutely
toward a bright future. We look forward to your continued support and guidance to achieve growth.
Akishige Okada
Chairman of the Board
Yoshifumi Nishikawa
President and Chief Executive Officer
July 2001
1
President’s Message
Launch of the New Bank
I am pleased to report that SMBC began operation on April 2, 2001. This auspicious start at the
dawn of the new millennium has created great expectations from our shareholders, investors and
customers, as well as the general public, for the responsibilities we bear as a cornerstone of the
economic infrastructure. We welcome this interest and will work hard to earn the trust of shareholders
and stakeholders.
The merger has provided us with the key infrastructure—such as various delivery channels, skilled
personnel and other management resources, and the competitive might of the Group in each field—
to sustain SMBC in the top echelon of the Japanese banks. The crucial task now is to use this
infrastructure to produce concrete results under the SMBC brand, which marries the strengths of
the Mitsui and Sumitomo brands that have been built up so carefully over the years to mean reliable
and innovative service.
The Economic Realities
In the domestic economy, it is abundantly clear the corporate sector faces a period of adjustment
that will continue to slacken demand for financial services. As these conditions begin to be felt in
corporate performances and their financial positions, the competitive environment for banks will get
even tougher. Nonetheless, the companies that have restructured themselves on the basis of new
business models suited to the times are growing in number and we are beginning to see the results
of their strengthened capabilities. We view the industrial structuring now underway as a business
opportunity and one of the ways in which we can move forward with new growth.
Critical Issues
We consider strengthening our profit base and balance sheet management to be the top two priorities
at this time. We have a number of initiatives to deal directly with these issues. While achieving these
targets will not be easy, we are applying bold ideas and resolute measures that will chart a steady
course toward the desired outcome, executing paradigm shifts as needed.
To bolster our profit base, our primary strategy is to draw fully upon the expanded operating base
created as a legacy of the merger and to approach each customer segment from the customer’s
perspective. In the retail market, we are taking a customer-by-customer approach to provide the
most appropriate services with the goal of maximizing convenience. In the corporate segments, we
are addressing operating and financing needs with a variety of services that form complete solutions.
We are placing particular emphasis on expanding financial services that do not use our balance
sheets, such as fee businesses. At the same time, we will be looking to further pare down expenses.
We anticipate that expenses will temporarily increase as a result of computer systems integration
and similar start-up costs associated with the merger, but expect to achieve the benefits of the
2
merger synergies early in the process.
By fundamentally revising our business
processes, we plan to radically reform
cost structures and increase the size of
the merger effect. We are also planning
to operate more cohesively as a
consolidated entity to boost overall
Group profitability. The investment
banking and credit card businesses
have significant strategic value. Since
the respective companies participating
in these markets from both founding
groups would gain significant merger
synergies and strength, they integrated
their operations at the same time the
parents merged. We expect the newly
Yoshifumi Nishikawa, President
merged companies to use their expanded operating bases and expertise to contribute to the growth
of consolidated earnings.
Balance sheet management is the other focus of activities. Our first priority is to deal conclusively
with non-performing loans. We are stepping up disposal and giving this issue our full attention. We
are monitoring the non-performing loan measures proposed in the government’s emergency economic
package, while moving forward with our own initiatives to resolve each non-performing loan individually.
Our initiatives include detailed dialogs with each borrower to detect potential problems early on and
put preventative measures in place to avoid new outbreaks of non-performing loans. Our second
priority is to reduce the potential for stock price volatility risk to impact our balance sheets, as the
accounting method for the stock portfolio changes to the mark-to-market method.
In Closing
I am firmly committed to strengthening the Bank to make it a first-class player in the international
financial markets at the earliest opportunity. Immediately following the merger, the entire Bank,
from the directors and management to the staff, has set to work under a single system—without
redundancies—toward a clearly defined set of goals. We will strive to maximize the synergies of the
merger and secure a leading spot among the competition by promoting staff on a merit basis under
a unified personnel system, putting the right people in the right places, instilling in them a sense of
urgency and empowering them to turn plans into reality. We shall carry on fulfilling the responsibilities
entrusted to us and work to make SMBC the most trusted brand in the market.
3
Topics
Former Sakura Bank’s
headquarters
Former Sumitomo Bank’s
headquarters
1999
Former Sakura Bank
Year 2000
October
Joins two other Mitsui Group companies,
Mitsui Marine & Fire Insurance Co., Ltd.,
and Mitsui Mutual Life Insurance Co., in a
strategic business alliance
December
Launches TV banking services using digital
transmissions over broadcast satellites
Partners with GE Capital Japan to offer loans
to corporate clients via the Web
Signs joint agreement for Edy!, a prepaid
electronic money service worthy of the
information age
Delists common shares from the Swiss
Stock Exchange
Year 2001
January
Delists common shares from the Paris
Stock Exchange
March
Delists common shares from the
Frankfurt Stock Exchange
Former Sumitomo Bank
Year 2000
November
Starts operation of NetDebit, a settlement
service for Internet shopping
Launches the One’s Direct service
Year 2001
February
Commences handling the Complete
Internet settlement service for
corporations
March
Delists common shares from the Paris
Stock Exchange
2000
2001
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Steps toward Merger
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Year 1999
October
The founding banks conclude
the Strategic Alliance and
Integration of Sakura Bank
and Sumitomo Agreement on
the premise of a future merger.
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Year 2000
April
The founding banks announce their merger for
April 1, 2001, as the new entity, Sumitomo Mitsui
Banking Corporation
June
Shareholders approve the merger at the respec-
tive shareholders’ meetings
November
The founding banks announce the new bank's
logo and corporate colors
The founding banks announce the reorganization
of Sumitomo Credit Service Co., Ltd., and Sakura
Card Co., Ltd.
December
The Financial Services Agency approves the
merger
Year 2001
January
The founding banks agree to reorganize and
merge Sakura Institute of Research Inc.,
The Japan Research Institute, Ltd., and The JRI
Business Consulting, Ltd.
Agreement is reached on merging Sakura
Capital Co., Ltd., and SB Investment Co., Ltd.
February
The founding banks announce the agreement in
principle for the merger and name change for
Daiwa Securities SB Capital Markets Co., Ltd.,
and Sakura Securities Co., Ltd.
March
The founding banks announce the expansion of
the ATM tie-up with Sumitomo Life Insurance
Company and Mitsui Mutual Life Insurance Co.
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Symbol
The ascending curve of the
symbol, named the “Rising
Mark”, signifies the new
bank’s growth through the ap-
plication of the diverse skills
of SMBC staff to provide pro-
gressive, value-added
financial services and, through
these services, to contribute
to the welfare of customers,
shareholders and the commu-
nity at large. We have se-
lected “fresh green” and “trad
green” as the two corporate
colors. Fresh green is used in
the Rising Mark to express
our youthful, knowledgeable
and friendly approach, while
trad green is used as the
symbol’s background and text color to represent our tra-
dition, reliability and stability. The symbol, color scheme
and the SMBC abbreviation, collectively referred to as our
“Mark Unit”, is used consistently to promote our
corporate identity.
Mark Unit
Headquarters of Sumitomo Mitsui Banking Corporation
(Began operation on April 2, 2001)
Sumitomo Mitsui Banking Corporation
Year 2001
April
Sumitomo Mitsui Banking Corporation begins operation
May
The Bank takes over housing loans from Mitsui Mutual Life Insurance Co.
The Bank announces the establishment of the Advisory Board
June
The Bank transfers its Sakura Trust & Banking Co., Ltd., shares to Chuo Mitsui Trust and Banking Co., Ltd.
5
5
Financial Highlights
Former Sakura Bank
(Consolidated)
For the Year
Total income
Total expenses
Net income (loss)
At Year-End
2001
2000
1999
1998
1997
Millions of yen
¥01,773,614
1,641,567
48,939
¥02,157,102
2,030,963
62,581
¥02,213,222
2,919,480
(479,266)
¥02,921,528
3,021,878
(88,301)
¥02,561,157
2,510,976
17,746
Total stockholders’ equity
Total assets
Risk-monitored loans
Reserve for possible loan losses
Net unrealized gains (losses) on securities
Capital ratio (BIS Guidelines)
ROE
PER (times)
¥02,175,809
51,849,687
1,466,633
512,023
(352,844)
11.31%
2.67%
62.36
¥02,208,554
48,495,608
1,661,440
682,188
654,763
¥02,174,486
49,015,005
1,766,867
666,692
/
12.53%
3.74%
62.08
12.33%
/.%
/
¥01,726,737
53,160,330
/
1,064,355
/
9.12%
/.%
/
¥01,847,460
54,719,655
/
842,310
/
8.92%
/.%
/
Per Share (Yen)
Stockholders’ equity
Net income (loss)
Net income–diluted
(Nonconsolidated)
For the Year
Total income
Total expenses
Net income (loss)
(Appendix)
¥333.46
9.22
9.21
¥340.98
12.58
—
¥331.28
(124.72)
—
¥446.47
(25.51)
—
¥467.28
4.38
—
2001
2000
1999
1998
1997
Millions of yen
¥01,441,834
1,302,774
82,160
¥01,930,928
1,776,858
57,117
¥02,045,139
2,693,827
(375,315)
¥02,833,166
2,948,431
(220,516)
¥02,538,645
2,480,239
51,042
Gross banking profit (A)
Banking profit
Banking profit (excluding transfer to
general reserve for possible loan losses)
Expenses (excluding non-recurring losses) (B)
Expense ratio (B)/(A)
¥00,730,392
411,377
¥00,711,915
328,084
¥00,699,181
172,947
¥00,730,391
293,778
¥00,720,834
281,745
355,401
374,990
51.3%
313,459
397,771
55.8%
274,123
425,057
60.7%
295,495
434,895
59.5%
282,102
438,732
60.8%
At Year-End
Preferred stock
Number of shares issued (thousands)
Common stock
Number of shares issued (thousands)
Total stockholders’ equity
Total assets
Deposits
Loans and bills discounted
Securities
Risk-monitored loans
Problem assets based on
Financial Reconstruction Law
Reserve for possible loan losses
Net unrealized gains (losses) on securities
Pay-out ratio
Capital ratio (BIS Guidelines)
ROE
PER (times)
Per Share (Yen)
Stockholders’ equity
Dividends:
Common stock
Preferred stock (Series I)
Preferred stock (Series II)
Preferred stock (Series III) (Type-2)
Net income (loss)
Net income–diluted
6
402,577
802,577
640,129
4,118,077
¥02,281,230
48,461,818
33,534,079
30,575,498
10,199,669
1,215,082
1,260,895
424,799
(346,628)
34.71%
11.91%
4.86%
33.27
402,772
802,772
639,934
4,117,297
¥02,252,289
46,559,485
33,342,655
31,939,952
6,911,602
1,672,375
1,723,560
660,454
662,799
53.42%
12.50%
3.23%
69.48
411,307
811,307
631,399
4,083,121
¥02,223,521
47,208,716
32,965,621
32,291,263
6,217,570
1,760,563
26,883
26,883
572,562
3,747,134
¥01,298,113
51,650,386
36,380,770
35,083,771
6,449,372
1,475,402
123,710
123,710
475,735
3,424,163
¥01,551,052
53,131,014
38,270,539
36,833,937
7,062,157
/
1,800,079
735,562
(120,093)
—.%
12.38%
—.%
/
/
1,044,082
(25,917)
—.%
/.%
—.%
/
/
835,024
784,879
60.27%
/.%
3.73%
/
¥358.43
¥351.38
¥343.09
¥332.07
¥380.72
6.00
—
15.00
13.70
17.28
17.24
6.00
—
15.00
13.70
11.24
—
7.25
—
15.00
0.04
(97.62)
—
8.50
22.50
15.00
—
(62.92)
—
8.50
45.00
7.50
—
14.10
13.99
Former Sumitomo Bank
(Consolidated)
For the Year
Total income
Total expenses
Net income (loss)
At Year-End
2001
2000
1999
1998
1997
Millions of yen
¥02,727,586
2,454,118
83,469
¥03,013,618
2,797,115
61,875
¥02,828,799
3,587,829
(568,889)
¥02,662,503
3,131,832
(251,296)
¥02,572,853
2,511,407
34,048
Total stockholders’ equity
Total assets
Risk-monitored loans
Reserve for possible loan losses
Net unrealized gains on securities
Capital ratio (BIS Guidelines)
ROE
PER (times)
¥01,837,151
67,392,974
1,789,785
756,830
51,738
¥01,804,358
53,767,504
2,203,318
950,499
1,179,452
10.94%
6.05%
43.92
11.60%
4.55%
82.23
¥01,757,123
54,973,872
2,340,631
1,267,935
—
10.95%
/.%
/
¥01,671,593
64,369,544
/
1,278,683
—
9.23%
/.%
/
¥01,949,674
60,229,929
/
554,986
—
8.75%
1.70%
/
Per Share (Yen)
Stockholders’ equity
Net income (loss)
Net income–diluted
(Nonconsolidated)
For the Year
Total income
Total expenses
Net income (loss)
(Appendix)
¥426.32
25.50
24.93
¥415.77
18.61
18.17
¥400.71
(181.48)
—
¥532.18
(80.00)
—
¥620.71
10.84
10.77
2001
2000
1999
1998
1997
Millions of yen
¥01,850,834
1,716,783
55,675
¥02,184,348
2,035,847
48,818
¥02,073,328
2,706,752
(374,123)
¥02,414,077
2,998,041
(621,695)
¥02,361,555
2,317,397
35,318
Gross banking profit (A)
Banking profit
Banking profit (excluding transfer to
general reserve for possible loan losses)
Expenses (excluding non-recurring losses) (B)
Expense ratio (B)/(A)
¥00,772,811
580,293
¥00,722,565
350,578
¥00,750,351
220,157
¥00,711,376
308,077
¥00,711,483
338,224
447,672
325,138
42.0%
389,438
329,785
45.6%
396,493
353,858
47.1%
337,621
373,755
52.5%
342,220
369,263
51.9%
At Year-End
Preferred stock
Number of shares issued (thousands)
Common stock
Number of shares issued (thousands)
Total stockholders’ equity
Total assets
Deposits
Loans and bills discounted
Securities
Risk-monitored loans
Problem assets based on
Financial Reconstruction Law
Reserve for possible loan losses
Net unrealized gains (losses) on securities
Pay-out ratio
Capital ratio (BIS Guidelines)
ROE
PER (times)
Per Share (Yen)
Stockholders’ equity
Dividends:
250,500
167,000
502,348
3,141,062
¥01,918,707
65,265,680
37,195,694
31,172,382
16,860,309
1,517,508
250,500
167,000
502,348
3,141,062
¥01,880,637
51,089,338
34,229,831
31,358,560
8,982,244
1,884,083
250,500
167,000
502,348
3,141,062
¥01,846,470
51,531,297
33,001,309
33,716,858
6,679,892
1,959,860
—
—
502,348
3,141,062
¥01,138,014
58,076,795
37,390,044
35,930,302
7,256,931
1,469,122
—
—
502,348
3,141,062
¥01,786,408
57,149,204
39,833,827
36,600,112
6,004,310
/
1,561,564
671,042
(83,216)
36.15%
11.80%
3.72%
67.49
1,916,970
909,039
901,356
2,013,692
1,052,958
431,567
/
1,257,212
364,597
41.63%
12.46%
3.32%
106.17
—.%
11.94%
—.%
/
—.%
/.%
—.%
/
/
535,043
670,640
75.59%
/.%
1.98%
/
¥451.35
¥439.23
¥428.35
¥362.30
¥568.73
Common stock
Preferred stock (First series Type I)
Preferred stock (Second series Type I)
Net income (loss)
Net income–diluted
6.00
10.50
28.50
16.59
16.25
6.00
10.50
28.50
14.41
14.12
6.00
0.03
0.08
(119.11)
—
8.50
—
—
(197.93)
—
8.50
—
—
11.24
11.17
7
Former
Sakura Bank
(Years ended March 31)
(March 31)
Banking profit
(excluding transfer to general reserve for possible loan losses)
(Nonconsolidated)
(Billions of yen)
400
350
300
250
200
0
355.4
313.5
295.5
282.1
274.1
1997 1998 1999
2000 2001
(%)
20
16
12
8
4
0
(Years ended March 31)
(March 31)
Capital ratio
(BIS Guidelines)
(Consolidated)
12.33
12.53
11.31
8.92
9.12
1997 1998
1999
2000 2001
Expenses and expense ratio
(excluding non-recurring losses)
(Nonconsolidated)
(Billions of yen)
450
438.7
434.9
425.1
400
350
300
250
0
60.8
59.5
60.7
397.8
375.0
55.8
51.3
1997 1998 1999
2000 2001
Expenses
(excluding non-recurring losses)
Expense ratio
(%)
65
60
55
50
45
0
Problem assets based on
Financial Reconstruction Law
(Nonconsolidated)
(Billions of yen)
2,000
1,800.0
1,723.5
1,260.9
1999
2000
2001
1,600
1,200
800
400
0
(Years ended March 31)
(March 31)
Former
Sumitomo Bank
Banking profit
(excluding transfer to general reserve for possible loan losses)
(Nonconsolidated)
(Billions of yen)
500
450
400
350
300
0
447.7
396.5 389.4
342.2
337.6
1997 1998 1999
2000 2001
Capital ratio
(BIS Guidelines)
(Consolidated)
11.60
9.23
8.75
10.95
10.94
1997 1998
1999
2000 2001
(%)
20
16
12
8
4
0
(Years ended March 31)
(March 31)
Expenses and expense ratio
(excluding non-recurring losses)
(Nonconsolidated)
(Billions of yen)
400
369.3
373.8
350
300
250
200
0
51.9
52.5
353.9
329.8
325.1
47.1
45.6
42.0
1997 1998 1999
2000 2001
Expenses
(excluding non-recurring losses)
Expense ratio
8
(%)
55
50
45
40
35
0
Problem assets based on
Financial Reconstruction Law
(Nonconsolidated)
(Billions of yen)
2,500
2,000
1,500
1,000
500
0
2,013.7
1,917.0
1,561.6
1999
2000
2001
Fiscal 2000 Results
Progress Report on Strengthening the Financial Base of the Bank
The founding banks have worked to raise their competitiveness and profitability through restructuring and rationalization
based on their respective Plan toward Soundness of Management (former Sakura) and Plan for Strengthening the Financial
Base of the Bank (former Sumitomo). Both plans were formulated when the two banks accepted infusions of public funds
through subscriptions to preferred shares and perpetual subordinated notes in March 1999. The following summarizes each
bank’s progress in fiscal 2000 toward the targets set out in the respective plans.
Sakura Bank
Sumitomo Bank
In the earnings category, gross banking profit reached
The Bank surpassed its earnings target for the year. Gross
¥730.4 billion, ¥16.7 billion short of the ¥747.1 billion target.
banking profit climbed to ¥772.8 billion, ¥99.8 billion above
Although steady progress was made toward increasing earn-
the ¥673.0 billion target. This is chiefly attributable to revenue
ings from the core banking business by improving loan spreads
from new fee businesses, such as electronic banking, money
and expanding housing loans, the shortfall occurred, primarily
transfer and loan syndication, and from dividends from overseas
due to market-related earnings impacted negatively by higher-
subsidiaries. Expenses were also reduced beyond the targeted
than-expected dollar and euro interest rates. Expenses were
level. In addition to savings on personnel costs and branch
reduced to ¥375.0 billion, a cut of ¥12.6 billion more than
costs through reductions, system maintenance and manage-
the targeted ¥387.6 billion, owing to progress in trimming
ment costs were decreased. Despite some cost increases due
personnel expenses through staff reductions, decreased pur-
to the merger, expenses fell to ¥325.1 billion, ¥17.9 billion
chasing and scaled back investing. As a result, banking profit
lower than the ¥343.0 billion target. As a result, banking
excluding transfer to general reserve for possible loan losses
profit excluding transfer to general reserve for possible loan
jumped ¥41.9 billion, to a record high of ¥355.4 billion. Net
losses was ¥447.7 billion, ¥117.7 billion higher than the
income for the period topped out at ¥82.2 billion, ¥28.7 bil-
¥330.0 billion target. Net income was ¥55.7 billion, ¥44.3
lion less than the targeted ¥110.9 billion, largely because of
billion lower than the targeted ¥100.0 billion, largely owing to
increased write-offs and reserves for non-performing loans
an increase in write-offs and reserves for non-performing loans
and a ¥5.6 billion impact from the introduction of enterprise
and a ¥26.4 billion impact from the introduction of enterprise
taxes for banks by the Osaka Prefectural Government.
taxes for banks by the Osaka Prefectural Government.
The Bank made significant strides in its rationalization
The rationalization targets were exceeded. The number
plans. It is more than a year ahead in its personnel reduction
of employees at March 31, 2001, had dropped to 13,526,
schedule. At March 31, 2001, the number of employees
which compared favorably with the target of 13,600. Similarly,
stood at 13,632, well below the 13,800 target for March
the targeted reduction of the branch network to 265 by
2002. By accelerating the elimination and integration of the
March 31, 2003, was already surpassed two years ahead of
domestic branch network, at March 31, 2001, the number of
schedule by March 31, 2001, when it stood at 262 branches.
manned branches had fallen to 316, achieving the target of
319 two full years ahead of schedule.
The Bank also outperformed its key lending target. The
New lending to the key small and medium-sized business
balance of new loans to small and medium-sized businesses,
segment, excluding impact loans, was more than double the
where we are stressing the facilitation of the smooth supply
target. These loans grew by ¥238.6 billion, or ¥138.6 billion
of credit, grew by ¥137.2 billion (excluding impact loans),
higher than the target of ¥100.0 billion.
exceeding the ¥100.0 billion target by ¥37.2 billion.
9
Asset Quality
the amounts transferred to the general reserve. These credit
costs reflect three main factors. The protracted economic
In the interest of disclosure of problem assets, SMBC pro-
slump led to an increase in the number of borrowers experi-
vides information about the status of its assets in three differ-
encing financial difficulties or requiring fundamental restruc-
ent ways. First, self-assessment is conducted to calculate
turing. Deflation had a negative impact on some collateral
appropriate write-offs and reserves by classifying borrowers
value. And finally, both founding banks took precautionary
according to their financial soundness. Second, disclosure
measures to decrease problem assets prior to the merger.
based on “The Law Concerning Measures for the Reconstruc-
As of March 31, 2001, the total reserve for possible loan
tion of the Functions of the Financial System” (the Financial
losses (combined total for the two founding banks) stood at
Reconstruction Law) is used to classify the problem assets.
¥1,095.8 billion.
(Note: Disclosure on the basis of the Financial Reconstruction
On a consolidated basis, total credit cost amounted to
Law is related to self-assessment in terms of borrower
¥992.9 billion including the amounts transferred to the
category.) Third, we disclose the value of Risk-Monitored Loans
general reserve, bringing the total reserve for possible loan
based on the Banking Law, which exclude non-loan assets
losses to ¥1,268.9 billion.
such as foreign exchange, accrued interest and advanced
payments.
Write-Offs and Reserves Assessments
Under self-assessment, each borrower is evaluated and
Disposal of Problem Assets for Fiscal 2000
placed into a category—Normal Borrowers, Borrowers
SMBC makes the appropriate write-offs and reserves arising
Requiring Caution, Potentially Bankrupt Borrowers, Effectively
from semi-annual self-assessments conducted in compliance
Bankrupt Borrowers and Bankrupt Borrowers—and standard
with the financial inspection manual prepared by the Financial
write-offs and reserves are assessed against each category.
Services Agency and the practical guidelines published by the
As part of our overall measures to strengthen risk control
Japan Institute of Certified Public Accountants.
throughout the Group, all consolidated subsidiaries basically
As a result of these self-assessments, on a nonconsolidated
use the same standards as the parent bank for write-offs and
basis total credit cost (combined total for the two founding
reserves.
banks) amounted to ¥819.1 billion in fiscal 2000, including
Borrower Self-Assessment
Category
Normal Borrowers
Borrowers Requiring Caution
Rules for Write-offs and Reserves
Amounts are recorded as general reserves in proportion to the expected losses over the next 12
months based on the actual bankruptcy rate for the past for each ratings category.
These assets are divided into groups according to the risk of default. Amounts are recorded as
general reserves in proportion to the expected losses based on the actual bankruptcy rate for the
past for each group. The groups are “Substandard Assets” and “Other” and the latter group is further
divided according to credit ratings, etc.
Potentially Bankrupt Borrowers
The Bank sets specific reserves for possible loan losses on the portion of Classification III assets
(other than those expected to be collectible by collateral or guarantees, etc.), as classified according
to individual borrowers.
Effectively Bankrupt/Bankrupt
Borrowers
The Bank fundamentally writes-off the full amount of Classification IV assets (deemed to be
uncollectible or of no value) that are individually calculated by borrower. In addition, specific reserves
have been set for possible loan losses against the full amount of Classification III assets.
10
Self-Assessment
Borrower Category
Self-assessment is the process used within a bank to cal-
culate the write-offs and reserves that ensure the soundness
of its assets. Each asset is assessed individually for its secu-
rity and verity. Each borrower is classified into one of five
categories—Normal Borrowers, Borrowers Requiring Caution,
Potentially Bankrupt Borrowers, Effectively Bankrupt Borrowers
and Bankrupt Borrowers—according to its current condition.
A bank is further required to assess, on a scale of I to IV, the
degree of the risk of default and non-collection, and the risk
of asset devaluation. As a rule, our consolidated subsidiaries
use the same system as part of our efforts to strengthen how
risk is managed throughout the Group as a whole.
Normal
Borrowers
Borrowers
Requiring Caution
Borrowers with good business performance and in
good financial standing without identified problems
Borrowers marked for close monitoring
Potentially
Bankrupt Borrowers
Borrowers perceived to have a high risk of
falling into bankruptcy
Effectively
Bankrupt Borrowers
Borrowers that may not have legally or formally
declared bankruptcy, but are essentially bankrupt
Bankrupt
Borrowers
Borrowers that have been legally and formally
declared bankrupt
Asset Classification
Classification I
Classification II
Classification III
Assets not classified into Classification
II, III or IV
Assets perceived to have above-average
risk for collectibility
Assets for which final collection or asset value
is highly doubtful and which pose a high risk
of incurring a loss
Classification IV
Assets assessed as uncollectible or worthless
■ Total Credit Cost Including General Reserve (Year ended March 31, 2001)
Nonconsolidated
(Billions of yen)
Combined total
Sakura Bank Sumitomo Bank
Total credit cost
Write-off of loans
Transfer to specific reserve
Transfer to reserve for losses on loans sold
Losses on loans sold to CCPC
Losses on sale of delinquent loans
Transfer to loan loss reserve for specific overseas countries
Transfer to general reserve for possible loan losses (1)
Total credit cost
Reserve for possible loan losses
Amount of direct reduction (2)
¥1,007.7
741.4
156.5
52.9
31.7
25.1
0.0
( )
188.6
¥ 819.1
¥1,095.8
¥1,570.8
¥317.1
240.5
9.8
33.9
20.4
8.5
4.0
56.0
( )
¥261.1
¥424.8
¥888.7
¥ 690.6
500.9
146.7
19.1
11.4
16.6
( )
4.0
( )
132.6
¥ 558.0
¥ 671.0
¥ 682.1
(1) Banking profit includes reserve for possible loan losses.
(2) Including direct reduction for assets which do not fall under the Financial Reconstruction Law disclosure standards.
Consolidated
(Billions of yen)
Total credit cost
Reserve for possible loan losses
Amount of direct reduction (3)
Combined total
Sakura Bank Sumitomo Bank
¥ 992.9
¥1,268.9
¥2,009.5
¥ 346.6
¥ 512.0
¥1,121.7
¥646.3
¥756.8
¥887.8
(3) Including direct reduction for assets which do not fall under the Financial Reconstruction Law disclosure standards.
11
Disclosure of Problem Assets
Assets Disclosed under the Financial Reconstruction Law
Under the Financial Reconstruction Law, assets are assessed
and classified into four categories—Bankrupt and Quasi-
Bankrupt Assets, Doubtful Assets, Substandard Loans, and
Normal Assets. The total value of assets in each category is
disclosed.
On a nonconsolidated basis (combined total for the two
founding banks), the total value of assets in all categories
other than Normal Assets amounted to ¥2,822.5 billion as of
March 31, 2001, an ¥818.0 billion decrease compared with
March 31, 2000.
On a consolidated basis (combined total for the two founding
banks), the amount was ¥3,355.0 billion.
Classification of Disclosure Basis Assets
Bankrupt
and Quasi-
Bankrupt
Assets
Doubtful
Assets
This category is defined as the sum of credits
to Bankrupt Borrowers and Effectively Bankrupt
Borrowers as categorized by self-assessment,
minus fully written-off Classification IV credits. In
addition, as all Classification III credits are fully
covered by reserves, the remainder consists of
the collective portion of credits secured by
collateral or guarantees.
This is the sum of credits extended to
borrowers classified as Potentially Bankrupt
under self-assessment. Since the sum includes
credits that are secured by collateral or
guarantees, and considered to be collectible
assets, specific reserves are set aside for the
unsecured portions under Classification III.
Substandard
Loans
This is the sum of the loans extended to
Borrowers Requiring Caution under self-
assessment. This figure includes past due loans
(three months or more) or restructured loans.
Normal
Assets
This is the sum, as of term-end, of loans, securi-
ties lending, foreign exchange, accrued interest,
advanced payments and customer liabilities for
acceptance and guarantees that is not included
in the other three categories. Normal assets thus
represent the sum of credits to Normal Borrowers
and that portion of credits identified through self-
assessment as Borrowers Requiring Caution, but
not classified as Substandard, and on which the
risk of credit losses is deemed relatively small.
■ Assets Disclosed under the Financial Reconstruction Law
(Combined Total of Sakura and Sumitomo Banks) (As of March 31, 2001)
(Billions of yen)
Bankrupt and quasi-bankrupt assets
¥ 589.9
(1)
¥ 4.4
¥ 777.3
(2)
Nonconsolidated
Increase/decrease
compared with
March 31, 2000
Consolidated
Doubtful assets
Substandard loans
Subtotal
Normal assets
Total
(1) After direct reduction of ¥1,567.4 billion
(2) After direct reduction of ¥1,991.6 billion
12
1,943.1
289.4
2,822.5
66,157.8
¥68,980.3
( )
288.9
( )
533.6
( )
818.0
123.2
( )
¥ 694.9
2,166.4
411.2
3,355.0
68,290.6
¥71,645.6
(Billions of yen)
Consolidated
Disclosure of
total assets
(2)
¥ 489.6
803.2
227.3
(Billions of yen)
Consolidated
Disclosure of
total assets
(2)
¥ 287.8
1,363.2
183.9
Sakura Bank (As of March 31, 2001)
Disclosure of
total assets
Increase/
decrease
Nonconsolidated
Claims secured by
collateral and guarantees
Reserve for possible
loan losses
Reserve ratio
Bankrupt and quasi-bankrupt assets
¥ 390.9
(1)
¥ (
3.8)
¥ 368.9
¥ 23.6
100.0%
679.7
190.3
(201.1)
(257.7)
334.3
73.8
246.2
20.3
71.3
17.4
¥ 1,260.9
¥ (462.7)
¥ 777.0
¥ 290.0
59.9%
¥ 1,520.1
Doubtful assets
Substandard loans
Total
(1) After direct reduction of ¥885.2 billion
(2) After direct reduction of ¥1,118.2 billion
Sumitomo Bank (As of March 31, 2001)
Disclosure of
total assets
Increase/
decrease
Nonconsolidated
Claims secured by
collateral and guarantees
Reserve for possible
loan losses
Reserve ratio
Bankrupt and quasi-bankrupt assets
¥ 199.0
(1)
¥
8.2
¥ 188.2
¥ 14.2
100.0%
Doubtful assets
Substandard loans
Total
(1) After direct reduction of ¥682.1 billion
(2) After direct reduction of ¥873.4 billion
1,263.5
99.1
( 87.7)
(275.9)
494.1
50.7
419.2
10.7
54.5
22.1
¥ 1,561.6
¥ (355.4)
¥ 733.0
¥ 444.1
53.6%
¥ 1,834.9
■ Classification under Self-Assessment, Disclosure of Problem Assets and Write-offs/Reserves
(Combined Totals of Sakura and Sumitomo Banks) (Nonconsolidated) (As of March 31, 2001)
(Billions of yen)
Category of
borrowers under
self-assessment
Disclosure of problem
assets based on the Financial
Reconstruction Law
Classification under self-assessment
Classification I Classification II Classification III Classification IV
Reserve for possible
loan losses
Reserve ratio
(Note 3)
Bankrupt
Borrowers
Effectively
Bankrupt
Borrowers
Potentially
Bankrupt
Borrowers
Borrowers
Requiring
Caution
Normal
Borrowers
Bankrupt and
quasi-bankrupt
assets (1)
Claims secured by
collateral and
guarantees, etc. (4)
Fully
reserved
Direct
write-offs
589.9
557.1
32.8
(Note 1)
Doubtful assets (2)
Claims secured by
collateral and
guarantees, etc. (5)
1,943.1
828.4
Necessary
amount
reserved
1,114.8
Substandard loans (3)
289.4
（Claims to substandard borrowers）
Substandard loans
secured by collateral
and guarantees, etc. (6)
124.5
Claims to borrowers requiring caution
excluding claims to substandard borrowers
Normal assets
66,157.8
Claims to
normal
borrowers
Specific
reserve
37.8
(Note 2)
1 0 0 %
665.4
(Note 2)
59.7%
Specific reserve
General reserve for
substandard loans
4.8
26.2
General
reserve
367.8
1 5 .0 %
(Note 4)
Average
3.1%
Average
0.2%
Total
68,980.3
Loan loss reserve for
specific overseas countries
Total reserve for possible loan loss
(B) Specific reserve + General reserve
for claims to substandard borrowers
(A) = (1) + (2) + (3)
2,822.5
(C) Portion secured by
guarantees and collateral, etc.
(5) + (6) + (7)
1,510.0
(D) Unsecured
portion (A) – (C)
Coverage Ratio {(B) + (C)} / A
20.0
1,095.8
734.1
1,312.5
Reserve ratio
(Note 5)
(B) / (D)
55.9%
79.5%
Notes: 1. Including direct reduction of ¥1,567.4 billion.
2. Includes reserves for assets which do not fall under the Financial Reconstruction Law disclosure standards.
(Bankrupt/effectively bankrupt borrowers: ¥5.0 billion; Potentially bankrupt borrowers: ¥10.5 billion)
3. The reserve ratio to normal borrowers is the proportion of the reserve to the total claims to normal borrowers. Reserve ratios to other borrowers
are the proportion of the reserve to the claims of each category excluding the portion secured by collateral and guarantees, etc.
4. The proportion of the reserve to the unsecured claims to substandard borrowers (excluding the claims to borrowers with specific reserves).
5. The proportion of the reserve to the claims excluding the portion secured by collateral and guarantees, etc.
13
Risk-Monitored Loans
On a nonconsolidated basis (combined total for the two
In addition to the disclosure of problem assets in accordance
founding banks), Risk-Monitored Loans amounted to ¥2,732.6
with the Financial Reconstruction Law, we also separately
billion as of March 31, 2001, an ¥823.9 billion decrease
disclose the balance of “Risk-Monitored Loans” in accordance
compared with March 31, 2000.
with the Banking Law.
On a consolidated basis (combined total for the two founding
banks), Risk-Monitored Loans amounted to ¥3,256.4 billion.
■ Risk-Monitored Loans (As of March 31, 2001)
Nonconsolidated
（Billions of yen）
Bankrupt loans
Non-accrual loans
Past due loans (3 months or more)
Restructured loans
Total
Amount of direct reduction
Consolidated
Combined total
Ratio to
total loans
Increase/decrease compared
with March 31, 2000
Sakura Bank
Sumitomo Bank
¥ 235.7
2,207.5
103.2
186.2
¥2,732.6
¥1,540.4
0.4%
3.6
0.2
0.3
4.4%
¥ 6.1
¥ 174.8
( )
296.3
27.6
( )
561.2
( )
¥ 823.9
849.9
65.7
124.6
¥1,215.1
¥ 877.9
¥ 60.8
1,357.6
37.5
61.6
¥1,517.5
¥ 662.5
Combined total
Ratio to
total loans
Increase/decrease compared
with March 31, 2000
Sakura Bank
Sumitomo Bank
（Billions of yen）
Bankrupt loans
Non-accrual loans
Past due loans (3 months or more)
Restructured loans
Total
Amount of direct reduction
¥ 273.1
2,577.5
125.8
280.0
¥3,256.4
¥1,936.6
0.4%
3.9
0.2
0.4
5.0%
¥ 9.5
( )
359.0
6.8
( )
265.6
( )
¥ 608.4
¥ 197.4
1,042.0
75.9
151.4
¥1,466.6
¥1,084.5
¥ 75.7
1,535.6
49.9
128.6
¥1,789.8
¥ 852.1
Category of
borrowers under
self-assessment
Disclosure of problem assets based on
the Financial Reconstruction Law
Risk-monitored
loans
Total loans
Other assets
Total loans
Other assets
Bankrupt
Borrowers
Effectively
Bankrupt
Borrowers
Potentially
Bankrupt
Borrowers
Borrowers
Requiring
Caution
Normal
Borrowers
Bankrupt and
quasi-bankrupt
assets
Doubtful assets
Substandard
loans
（Normal assets）
Bankrupt loans
Non-accrual loans
C
Past due loans
(3 months or more)
Restructured loans
Correlation between Disclosure Based
on the Financial Reconstruction Law
and Risk-Monitored Loans
The disclosure of Risk-Monitored Loans
corresponds exactly to disclosure based on the
Financial Reconstruction Law, except that non-loan
assets—such as securities lending, foreign
exchange, accrued interest, advanced payments
and customers’ liabilities for acceptances and
guarantees—are not included in Risk-Monitored
Loans.
Since the interest income from borrowers
classified by self-assessment in the Potentially
Bankrupt Borrowers, Effectively Bankrupt
Borrowers and Bankrupt Borrowers categories
is not accrued in revenue, there is no accrued
interest included in the assets disclosed on the
basis of the Financial Reconstruction Law.
A
B
C
14
Work-out of Problem Assets by Removing
Them from the Balance Sheet
¥1,363.8 billion was disposed of during the second half of
fiscal 2000, leaving the balance of assets extended to exist-
Under the provisions of the emergency economic program
ing Potentially Bankrupt Borrowers or lower categories at
enacted in April 2001, we are publishing the results of the
¥1,825.8 billion. While the disposal of assets extended to
measures taken for the work-out of problem assets (removing
Potentially Bankrupt Borrowers or lower categories is pro-
them from the balance sheet), as well as the assets that were
ceeding at a reasonable pace, the balance of assets newly
newly classified as being extended to Potentially Bankrupt
classified as Potentially Bankrupt Borrowers or lower catego-
Borrowers or lower categories.
ries grew by ¥707.3 billion in the second half of fiscal 2000,
At September 30, 2000, the balance of assets extended to
bringing the final total to ¥2,533.0 billion as of March 31,
Potentially Bankrupt Borrowers or lower categories (combined
2001. This was ¥656.5 billion less than the balance as of
total for the two founding banks) was ¥3,189.6 billion. Of this,
September 30, 2000.
■ Credits to Potentially Bankrupt Borrowers or Lower Categories in the Financial Reconstruction Law
(Combined Totals of Sakura and Sumitomo Banks)
(Billions of yen)
Problem assets occurring prior to second half of fiscal 2000
As of March 31,
As of Sept.30,
2001
2000
(A)
(B)
Decrease
(B) – (A)
Newly occurred problem
assets during second
half of fiscal 2000
(C)
Problem assets
as of March 31,
2001
(B) + (C)
Bankrupt and quasi-bankrupt assets
¥ 621.7
¥ 472.7
¥ (149.0)
Doubtful assets
Total
2,567.9
1,353.1
(1,214.8)
¥3,189.6
¥1,825.8
¥(1,363.8)
¥117.2
590.1
¥707.3
¥ 589.9
1,943.1
¥2,533.0
■ Progress in Decreasing Problem Assets
Disposition by borrower's liquidation
Re-constructive disposition
Loan sales to secondary market, Securitization etc.
Direct write-off
Others
Total
(Billions of yen)
Second half of
fiscal 2000
¥ (64.3)
(348.3)
(208.4)
97.7
(840.5)
¥(1,363.8)
Reserve for Possible Loan Losses
Nonconsolidated
(As of March 31, 2001)
Disposition by borrower’s liquidation:
Omission or write-off of loans involved in
bankruptcy liquidation proceedings (bankruptcy or
special liquidations)
Re-constructive disposition:
Omission of loans involved in foreclosure
bankruptcy proceedings (corporate reorganization,
civil rehabilitation, composition and arrangement),
loan forgiveness involving special mediation
or other types of civil mediation, or loan
forgiveness for restructuring involving a private
reorganization
Others:
Collection, improvement in debtors’ performance
Combined total
Sakura Bank
Sumitomo Bank
（Billions of yen）
Reserve for possible loan losses (a)
¥1,095.8
¥ 424.8
¥ 671.0
General reserve
Specific reserve
Loan loss reserve for specific overseas countries
Risk-monitored loans (b)
Reserve ratio (a) / (b)
Consolidated
367.8
708.1
20.0
142.8
270.3
11.6
225.0
437.7
8.4
¥2,732.6
¥1,215.1
¥1,517.5
40.1%
35.0%
44.2%
Combined total
Sakura Bank
Sumitomo Bank
（Billions of yen）
Reserve for possible loan losses (a)
¥1,268.9
¥ 512.0
¥ 756.8
General reserve
Specific reserve
Loan loss reserve for specific overseas countries
Risk-monitored loans (b)
Reserve ratio (a) / (b)
395.9
853.0
20.0
163.2
337.2
11.6
232.7
515.7
8.4
¥3,256.4
¥1,466.6
¥1,789.8
39.0%
34.9%
42.3%
15
Problem Assets by Domicile of Borrower (Nonconsolidated) (As of March 31, 2001)
■ The Financial Reconstruction Law Standard
（Billions of yen）
Combined total
Percentage
Sakura Bank Sumitomo Bank
Domestic
Overseas
Asia
Indonesia
Hong Kong
Thailand
Malaysia
Other
North America
Central and South America
Western Europe
Eastern Europe
Middle East/Africa
Total
■ Risk-Monitored Loans
Domestic
Overseas
Asia
Indonesia
Hong Kong
Thailand
Malaysia
Other
North America
Central and South America
Western Europe
Eastern Europe
Middle East/Africa
Total
¥2,702.1
120.4
85.6
22.6
15.1
14.6
11.4
21.9
28.9
0.9
2.2
2.7
−
95.7%
¥1,218.4
¥1,483.7
4.3
3.0
0.8
0.5
0.5
0.4
0.8
1.0
0.0
0.1
0.1
−
42.5
33.1
11.6
3.0
5.3
5.9
7.3
5.0
0.9
2.2
1.3
−
77.9
52.5
11.0
12.1
9.3
5.6
14.5
23.9
−
−
1.4
−
¥2,822.5
100.0%
¥1,260.9
¥1,561.6
Combined total
Percentage
Sakura Bank Sumitomo Bank
（Billions of yen）
¥2,632.2
100.4
78.4
21.0
13.1
14.4
10.7
19.2
16.2
0.9
2.2
2.6
−
96.3%
¥1,178.2
¥1,454.0
3.7
2.9
0.8
0.5
0.5
0.4
0.7
0.6
0.0
0.1
0.1
−
36.9
28.9
10.0
3.0
5.2
5.8
4.9
3.5
0.9
2.2
1.3
−
63.5
49.5
11.0
10.1
9.3
4.9
14.2
12.7
−
−
1.3
−
¥2,732.6
100.0%
¥1,215.1
¥1,517.5
Note: “Domestic” means the total of domestic branches excluding the special account for international financial transactions.
“Overseas” means the total of overseas branches including the special account for international financial transactions.
The above countries and areas are categorized by the obligor’s domicile.
16
Problem Assets by Domicile and Type of Borrower (Nonconsolidated) (As of March 31, 2001)
■ The Financial Reconstruction Law Standard
（Billions of yen）
Domestic
Manufacturing
Agriculture, forestry, fishery and mining
Construction
Wholesale and retail
Finance and insurance
Real estate
Transportation, communications and other public enterprises
Services
Municipalities
Other
Overseas
Public sector
Financial institutions
Commerce and industry
Other
Total
Combined total
Percentage
Sakura Bank Sumitomo Bank
¥2,702.1
95.7%
¥1,218.4
¥1,483.7
164.4
7.6
99.8
421.3
114.9
856.8
65.3
780.3
0.5
191.2
120.4
1.1
5.0
114.2
0.2
5.8
0.3
3.5
14.9
4.1
30.4
2.3
27.6
0.0
6.8
4.3
0.0
0.2
4.0
0.0
84.9
5.8
64.9
242.9
9.9
366.2
38.2
302.1
―
103.3
42.5
1.1
0.0
41.2
0.2
79.5
1.9
34.8
178.3
105.0
490.6
27.1
478.2
0.5
87.8
77.9
―
5.0
72.9
―
¥2,822.5
100.0%
¥1,260.9
¥1,561.6
■ Risk-Monitored Loans
（Billions of yen）
Domestic
Manufacturing
Agriculture, forestry, fishery and mining
Construction
Wholesale and retail
Finance and insurance
Real estate
Transportation, communications and other public enterprises
Services
Municipalities
Other
Overseas
Public sector
Financial institutions
Commerce and industry
Other
Total
Combined total
Percentage
Sakura Bank Sumitomo Bank
¥2,632.2
96.3%
¥1,178.2
¥1,454.0
162.6
7.3
99.0
404.8
103.0
844.4
61.4
775.5
0.5
173.7
100.4
1.1
4.3
94.8
0.2
6.0
0.3
3.6
14.8
3.8
30.9
2.2
28.4
0.0
6.4
3.7
0.0
0.2
3.5
0.0
83.7
5.4
64.3
233.7
7.5
363.0
34.3
297.6
―
88.8
36.9
1.1
―
35.6
0.2
78.9
1.9
34.8
171.0
95.5
481.4
27.1
477.9
0.5
85.0
63.5
―
4.3
59.2
―
¥2,732.6
100.0%
¥1,215.1
¥1,517.5
Note: “Domestic” means the total of domestic branches excluding the special account for international financial transactions.
“Overseas” means the total of overseas branches including the special account for international financial transactions.
17
Management Issues
The SMBC Plan for Strengthening
the Financial Base of the Bank
The efficiencies gained through the merger and heightened
profitability will enable us to accumulate additional internal
capital, which we will combine with more sophisticated risk
Continuing in the wake of its predecessors, SMBC is striving
management systems to keep potential risk under control and
to strengthen its financial base by raising profitability and
maintain adequate capital. While we will rely partly on retained
rationalizing operations through the merger with the objective
earnings to improve our financial condition, it will be neces-
of raising its ability to redeem the public funds it received.
sary for us to continue to liquidate and securitize existing as-
The Bank will draw upon the respective strengths of its two
sets, eliminate non-accrual and low-margin assets and reduce
founding banks to enhance corporate and shareholder value
holdings of shares held for strategic purposes to maintain
by offering more high-value added products and services to
risk assets at appropriate levels. Specifically, we plan to
customers. Our goal is to achieve a superior standing in prof-
reduce the two founding banks’ combined ¥71,816.6 billion
itability and soundness, becoming an internationally competitive
balance of risk-adjusted assets at March 31, 2001, to
financial institution fully capable of contributing to the stability
approximately ¥68,000 billion by March 31, 2005. This will
of the financial system and to economic development.
enable us to maintain our BIS-defined capital adequacy ratio
Operating Targets up to Fiscal 2004
By fiscal 2004, we expect to take our Tier I ratio to 7% or
To enable the Bank to redeem its public funding and continue
higher and the BIS ratio to 11% or higher.
above the 10% level expected of internationally active banks.
on a growth path, we have set the fiscal 2004 target for
banking profit to ¥950 billion and net income to ¥420 billion,
which will be reached by rebuilding and restructuring
operations.
Fiscal 2004
On the expense side, we will continue to invest in strategic
Banking Profit
¥950 billion
Net Income ¥420 billion
Consolidated ROE 10% or higher
BIS Capital Adequacy Ratio 11% or higher
IT systems while bringing the beneficial effects of the merger
into play early on. By fiscal 2004, we expect to achieve sav-
ings of ¥100 billion over the fiscal 1998 cost structure of the
two founding banks, bringing expenses down to ¥680 billion.
We will take the expense ratio, expressed as expenses divided
by banking profit, from 54% in fiscal 1998 to the 42% level by
fiscal 2004. The one-time expenses related to the merger will
be approximately ¥23.3 billion in fiscal 2001. Over the period
from fiscal 2001 to fiscal 2003, we expect to incur charges
of approximately ¥51.5 billion for systems and branch dispo-
sitions, and over the period from fiscal 2001 to fiscal 2004,
approximately ¥128.4 billion for system integration.
By fiscal 2004, when these one-time costs will be elimi-
nated, we aim to secure net income of ¥420 billion and a
return on equity of 10% or more (on a consolidated basis).
18
Restructuring Plan
Rationalization Plan
The business climate has changed remarkably for banks in
In addition to the original restructuring plan, under the merger
recent years with the implementation of the financial “Big
plan we are planning additional rationalization measures that
Bang” and other liberalization measures, and the globalization
will eliminate the duplication of functions in both the head
of the financial sector and other parts of the economy. Our
office and branch network. We will reduce the number of
response to these changes is to take a proactive and flexible
employees by 3,000, close 100 branches in Japan and 12
stance. To provide the high standard of service demanded by
overseas, and increase the effectiveness of IT spending by
customers, we will concentrate on the following courses of
integrating the two systems. The result will be annual cost
action until fiscal 2004: (1) expand consumer banking profits
savings of approximately ¥60 billion.
through focused customer segmentation, increased promo-
By March 31, 2004, we plan to reduce our staff by a total
tion of higher margin products and services, and a lower cost
of 9,300 employees, close 265 domestic branches and shut
structure; (2) promote transactions with domestic and over-
down 38 overseas offices as compared to the March 31,
seas corporations based on business models that feature
1998 levels.
high asset efficiency; (3) rebuild and expand overseas oper-
We shall continue to invest in IT to strengthen our competi-
ations with reformulated strategies in each geographic area;
tive abilities. Specifically, we are investing in systems to carry
(4) invest strategically in IT to strengthen marketing and
out advanced database marketing for consumers, to provide
provide network platforms to serve small and medium-sized
a network platform to serve small and medium-sized busi-
corporate customers; and (5) establish a leading position in
nesses, to create the financial content and supporting infra-
e-business.
structure for e-business, to upgrade the sophistication of risk
In the domestic market, we have divided operations into the
management and management information systems, and to
consumer and corporate sections and are introducing sepa-
upgrade the internal information system to enhance general
rate marketing organizations for each customer segment.
productivity. By integrating the two founding banks’ systems,
Within the consumer sector, we are clearly identifying cus-
we will eliminate the duplicate investment and maintenance
tomer segments, creating specific business models for each
expenses previously required. The funds freed by the merger
segment and offering the most appropriate high-margin prod-
can then be directed toward strategic IT investment.
ucts and services based on low-cost delivery structures. In
the corporate sector, we enjoy a commanding market share
in the small and medium-sized business segment. The merger
provides us with a balanced geographical base in both the
Kanto and Kansai regions to build on this and create a solid
profit base by offering complete business solutions.
19
Corporate Governance
Oversight System
Under the current Commercial Code, the Board of Directors
Corporate Governance System
bears responsibility for “setting policy for important manage-
SMBC’s corporate governance system is being strengthened
ment issues” and “overseeing performance.” At SMBC, we
to improve decision-making transparency and soundness. We
place particular emphasis on the latter function. We intro-
are bolstering the oversight functions of the Board of Directors
duced an executive officer system that separates decision
(the Board) and implementing a separate executive officer
making at the operational level from the Board’s oversight
system at the operational level. In addition, we are incorporat-
functions. In particular, the Chairman of the Board is prohibited
ing opinions from outside advisors regarding the following
from assuming direct responsibility for operational duties and
two areas in particular.
is primarily charged with their oversight. Moreover, we rein-
forced the Board’s oversight functions by setting up three
1. Advice regarding all aspects of management
subcommittees: the Risk Management, Compensation and
2. Operational reviews from perspectives independent of
Nominating Committees. Two outside directors, with respec-
the Bank
tive certified public accountant and lawyer backgrounds, have
been appointed to each committee. In particular, an outside
To facilitate Item 1 above, we established an Advisory Board
director has been appointed as the Chairman of the Com-
to the chairperson and president in July 2001. For Item 2, we
pensation Committee. This system allows the supervision
have asked the Board’s outside directors to focus primarily
of operations to be conducted from a suitably objective
on oversight of operational reviews in Board meetings and
perspective. Each of the Board subcommittees is authorized
subcommittees.
by the Board to supervise the following areas and report on
Advisory Board
The Advisory Board is a council comprised of prominent indi-
viduals from outside the Bank given the mandate to provide
advice on the entire range of issues facing the Bank, includ-
ing important management strategies, industry-wide prob-
lems, economic and political trends, major industry and
competitive developments, the consumer mindset and social
trends. The appointed members, listed below, are current or
former corporate executives, management consultants or
scholars.
Shoichiro Toyoda
Honorary Chairman, and Member of the
Naohiko Kumagai
Senior Advisor to the Board, Mitsui &
Board, Toyota Motor Corporation
Co., Ltd.
Tetsuro Kawakami
Senior Advisor, Sumitomo Electric
Toshiomi Uragami
Advisor, Sumitomo Life Insurance
Industries, Ltd.
Company
Yoshio Tsukio
Professor, Graduate School of Frontier
Sciences, The University of Tokyo
Yoshinori Yokoyama Director, McKinsey & Company, Inc., Japan
them to the Board.
• Risk Management Committee
Risk Management and Compliance
1. Issues related to overall risk management policies
and the risk management system
2. Issues related to market and liquidity risk
management policies and the risk management system
3. Issues related to credit risk management policy and
the risk management system
4. Other issues with a potential material impact on
operations
• Compensation Committee
Board Members and Executive Officer Remuneration
1. Issues related to remuneration, salaries and
incentive plans
2. Issues related to the stock option plan
3. Other remuneration issues
• Nominating Committee
Selection of Directors, Managing Directors and
Representative Directors
1. Issues related to the selection of directors
2. Issues related to the appointment of executive
officers and the president
3. Other major personnel issues for the Board
20
A Separate Operations System
performance of the Bank, we extended the scope of the
At SMBC, the executive officers selected by the Board per-
stock option system to include a larger group of managers. It
form their duties under the direction of the president. As of
was resolved at the Annual General Meeting of Shareholders
June 30, 2001, there were 65 executive officers, including
in June 2001 to extend stock options to a total of 432 people
the president. Of them, 23 are concurrently appointed as
in the Bank.
directors.
The Management Committee is the highest decision-making
Internal Audit Unit
body at the operations level. The president chairs the commit-
We formed the Internal Audit Unit in April 2001, giving it the
tee and selects its members from the executive officers. The
responsibility to inspect the operations of the Bank in a pro-
committee members deliberate on important issues facing
cess separate from the oversight exercised by the Board on
the Bank, and final decisions lie with the president.
the shareholders’ behalf. The unit is charged with conducting
The president also designates certain executives in the
objective audits to test compliance and the correct discharge
Management Committee as representatives of particular
of bank duties. The responsibility for auditing operations, admin-
departments or units, who then implement the directives from
istrative procedures, market transactions, information sys-
the Management Committee in that group.
tems and assets is centralized in this unit. By operating
The Bank adopted a stock option system to strengthen the
independently of the other units, the unit is contributing to
incentives for executive officers to increase shareholder
strengthening of our inspection systems and ensuring that the
value. As part of the incentives to upgrade the long-term
Bank’s activities are reviewed objectively.
Shareholders’ Meeting
Chairman of the Board
Board of Directors
Advisory Board
(Prominent individuals
from outside the company)
Risk Management
Committee
Compensation
Committee
Nominating
Committee
Outside Directors
President
Management Committee
(Composed of executive officers)
Head Office
Corporate Staff Unit
Head Office
Corporate Services Unit
Head Office
Internal Audit Unit
(Consumer Banking Unit, Middle Market Banking Unit, Corporate Banking Unit,
International Banking Unit, Treasury Unit and Investment Banking Unit)
Business Units
21
Compliance
• All employees shall behave in a trustworthy manner, observe
all laws and regulations, act in a highly ethical manner, and
Strengthening the Compliance System
serve the public fairly and honestly.
Compliance with the various laws and regulations comprising
• Employees are charged with providing value to customers
our social standards is an issue of great importance for finan-
and the Bank’s growth must be linked to the furtherance of
cial institutions because of their central role in the financial
all stakeholder interests, including customers, shareholders
system and social infrastructure. There is even greater
and the public.
demand for banks to behave responsibly and transparently
as competition intensifies across geographic and industry
The SMBC Compliance System
boundaries and the market becomes more selective. It is
To implement a compliance system, it is first necessary to
this context in which SMBC is placing high priority on the
clarify the framework for observing laws and regulations. At
implementation of its compliance system. When we began
SMBC, we employ a dual system. Self-regulation by each
operating as the new entity in April 2001, all employees
department and branch is the primary level. Independent
were thoroughly instructed in the following aspects of our
inspections conducted by the Internal Audit Unit constitute
compliance code.
the secondary level.
Audit Reports
Management
Directions
Directions
Auditing Role
(Internal Audit Unit)
Strict Check as
Independent Unit
Autonomous Role
(Business Units)
Support Role
(General Affairs Department)
Thorough Advance
Check Based on
Self-Regulation
Compliance System
Oversight and
Legal Support
Audits of Operations
Compliance System Oversight
and Legal Support
Conducts audits of all
operations. Reports directly
to top management.
Each department is responsible
for conducting compliance checks
under the supervision of the
branch or department manager.
Bears responsibilities for
planning the compliance
system. Investigates legal issues
in support of each unit.
22
To make this basic framework effective, in April 2001 we
Compliance Program
established a Compliance Committee that encompasses the
The Compliance Program is the detailed implementation plan
entire organization. The committee is chaired by the director
formulated as resolutions by the Board of Directors to
responsible for compliance issues and includes the heads of
strengthen the Bank’s compliance system. As the diagram
15 departments and has a council with legal advisors. This
shows, it is being implemented in four stages. The basic
structure ensures that each section of the Bank is examined
objective is to have the compliance system up and running
for compliance from an impartial, neutral perspective.
in the Bank and consolidated subsidiaries as soon and as
Compliance Manual
smoothly as possible within the 2001 fiscal year. We have
made the concrete plan of the program, and have been set-
As a further step in our compliance regime, we distributed a
ting up training programs and auditing systems. In addition,
compliance manual to each and every employee in April 2001.
a compliance officer has been assigned to each department
This manual, which is set out in a resolution of the Board of
and branch to ensure that the laws and regulations are
Directors, is not a mere list of the applicable laws and
observed within the basic compliance framework according
regulations. It contains control procedures and an employee
to the compliance manual.
code of conduct.
The code of conduct features 60 items that describe the
related laws and regulations and provide procedural
guidelines and specific examples of conduct.
1. Plan
(Documentation)
Create a
compliance
manual, etc.
4. Review
2. Implementation
Improve
compliance
program and
revise manual
Establish training
and educational
systems to inform
employees about
compliance
Compliance manual
3. Evaluation
Conduct
independent
compliance
inspections in
every
department and
branch
23
Risk Management
Basic Principles
(settlement risk, legal risk, reputational risk and others). Each
department is charged with control of risks at an appropriate
level within its own business line. To control the risks included
As financial liberalization, globalization and the rapid develop-
in the items (1–5) above as well as settlement risk, we have
ment of IT generate new business opportunities, financial
designated certain departments as risk management
institutions are being exposed to more diverse and complex
departments to oversee specific risk control measures within
risks than in the past. Identifying, measuring and controlling
each risk category. In addition, we established the Corporate
risks has never been more important in the management of
Risk Management Department completely independent of the
a bank.
business units to manage these risks on a bank-wide basis. This
At SMBC, we have established risk management rules
department works with the Corporate Planning Department to
encompassing all the fundamentals required of a risk manage-
comprehensively and systematically manage risk.
ment framework. In addition to specifying the types and areas
The control system we established at the Bank has the
of risks that should be managed according to our strategic
Board of Directors at its highest level, reflecting the impor-
objectives, the rules define the basic principles for appropri-
tance we attribute to risk management. The system works as
ately controlling each type of risk. The broad principles
follows: the risk management department supervising each
include “risk management on a consolidated basis,” “risk
risk category drafts “basic principles for risk management”
management based on quantification,” “consistency with
for that category, which are then presented for approval at
business strategies,” “consistency checks and balances,”
the Management Committee and considered by the Board’s
and “verification of actual situations.”
Risk Management Committee before being finalized by the
The Risk Management System
ment, the Management Committee, board members and risk
Within the Bank, we classify risk into the following categories
management department heads perform risk management
for control purposes: (1) credit risk, (2) market risk, (3) liquid-
and this process is coordinated by the risk management
ity risk, (4) processing risk, (5) systems risk and (6) other risk
departments concerned.
Board. According to the basic principles for risk manage-
Board of Directors Endorsement of principle policies for risk management
Approval for exceptional treatments which might have significant impact on management
Proposal/
report
Management
Level
Risk Management Committee
Discussion on principle policies
Discussion on exceptional treatments which might have significant impact on management
Proposal/report
Management Committee
Market Risk Committee
Credit Risk Committee
Auditor
External Auditor
Board Member in Charge
Board member in charge of Corporate
Risk Management Dept.
Board member in charge of Credit
Risk Management Dept.
(cid:0)
Audit Dept.
Credit Review Dept.
Inspection Dept.
Audit/verification of the actual
situation of risk management
Sections in
Charge of Risk
Management
Firm-wide
risk management
Liquidity Risk
Market Risk
Corporate Planning Dept./Corporate Risk Management Dept.
Credit Risk
Processing Risk
Systems Risk
Other Risk
Settlement Risk
Corporate Risk
Management Dept.
Credit Risk
Management Dept.
Operations
Planning Dept.
IT Planning
Dept.
24
To control market, liquidity and credit risk in particular, we
are managed with procedures closely attuned to the nature of
have strengthened the decision-making system at the operat-
the risk as described below.
ing level through the Market Risk Committee and the Credit
Risk Committee which are subcommittees formed under the
Management Committee comprising the executive members of
Credit Risk
Credit risk is the chance of a loss arising from a credit event,
the Management Committee and the heads of the departments
such as deterioration in the financial condition of a borrower,
related to risk management.
that causes an asset (including off-balance sheet transac-
tions) to lose value or become worthless. Overseas credits
Risk Management Methodologies
also include an element of country risk, which is closely
The risk management departments revise the basic risk
related to credit risk. This is the risk that changes in currency
management principles for each risk category on a regular
values or political or economic situations result in a loss.
basis, and whenever necessary, to ensure timely and appro-
Credit risk is the most significant risk to which banks are
priate risk management. Futhermore, in order to maintain a
exposed. Without adequate credit risk management, the
balance between risk and return as well as ensure soundness
impact of the corresponding losses on a bank’s operations
of the Bank from an overall perspective, we have introduced
can be overwhelming.
the “risk capital-based management” method which allocates
The purpose of credit risk management should be to avoid
capital to each department according to its role in our busi-
these credit events, to keep credit risk exposure within the
ness strategies to keep the total exposure to credit, market,
bank’s capital, maintain the soundness of the bank’s assets
processing and systems risk within the scope of our manage-
and ensure returns commensurate with risk. This allows a
ment resources, i.e., capital. In the credit and market risk
bank to build a loan portfolio that achieves efficient returns
categories in particular, the maximum risk capital that can be
on capital and assets which enables a bank to fulfill its public
allocated during a period is predetermined and risk capital guide-
mission and create value for its stakeholders.
lines are set within this limit to manage these risks. Liquidity
risk is managed within a framework that includes plans for
Credit Policy
money gap and treasury funding. The other risk categories
SMBC’s credit policy simultaneously came into effect with the
■ Correlation between Risk Management
Framework and Risk Category
Framework
Category
establishment of the new Bank in April 2001. This policy clari-
fies the universal and basic operating concepts, code of
conduct and standards for credit operations. By giving our
employees extensive credit training, we aim to achieve the
Credit Risk
global standards of credit risk management contemplated
by the Bank for International Settlements (BIS) in its January
2001 consultative papers and by the Japanese Financial Ser-
vices Agency in its inspection manuals, and create a better
credit management culture within the Bank.
Management
Based on
Risk Capital
Market
Risk
Banking Account Risk
Trading Account Risk
Risk of Strategic Equity Investment
Other Market-Related Risks
Processing Risk/Systems Risk
Liquidity Gap/
ALM
Liquidity Risk
Other Risk
(Settlement Risk, Legal Risk and Others)
25
Credit Risk Assessment and Quantification
Quantification of Credit Risk
To manage the risk of individual loans as well as the credit
Quantifying credit risk is more than just calculating the prob-
portfolio as a whole, we acknowledge that every credit poses
ability of default for a particular obligor. It must also reflect
risks. We assess the credit risk posed by each borrower and
the concentrating of risk toward a specific customer or
loan with our internal rating system and quantify that risk for
industry and fluctuations in the values of real estate, securi-
control purposes.
ties and other types of collateral. This range of data must be
analyzed to quantify the risk of an entire portfolio or an
The Internal Rating System
individual loan.
The Bank’s internal rating system consists of two indicators:
To calculate credit risk, historical data for the obligor and
the obligor’s grading which indicates the creditworthiness of a
facility is entered into a database, the parameters are set—
borrower, and the facility grading which shows the probability
such as the probability of a ratings change and the recovery
of collecting for each facility. Facility gradings are assigned
rate—and then the probability distribution of losses for the
based on the borrower’s obligor’s grading in consideration of
entire portfolio (amount of loss for what probability) is com-
transaction terms such as guarantee, tenor and collateral. Over-
puted to determine the maximum potential loss in the future.
seas credits are further subjected to analysis with the country
We obtain an understanding of the risk diversification effect
ranking, an indicator derived from analysis of the political and
and concentration risk by running a simulation of approximately
economic situations, international balance of payments and
10,000 iterations. The quantified credit risk results are then
the external debt burden of each country.
used to formulate business plans and provide a standard
In order to maintain the consistency of the grading system
against which individual credit applications are assessed.
as a whole, self-assessment is the prerequisite step to the
obligor’s grading process.
Grading
Subrating
Obligor’s Grading
Definition
Debtor Classification in
Self Assessment System
Facility Grading
Grading
Subrating
Financial Reconstruction
Law Based Disclosure
Category (Domestic)
a
b
c
a
b
c
a
b
c
A
B
C
A
B
C
A
B
C
R
1
2
3
4
5
6
7
8
9
10
Extremely high certainty of redemption
High certainty of redemption
Reasonable certainty of redemption
Redemption is reliable, but the debtor may be affected by
large shifts in business conditions or the industry
No problem at present with redemption, but the future
prospects are not solid and the debtor may be affected by
trends in business conditions or the industry
No problem at present with redemption, but there are
reasons for concern about the debtor's financial condition
and the possibility of future problems with recovery
Requires management because there are problems meeting
loan conditions or with collection, the business is weak or
unstable, or the financial condition is poor
(Customers requiring caution among this rating)
Normal
Borrowers
Borrowers Requiring Caution A
Borrowers Requiring Caution B
Borrowers Requiring Caution C
Substandard Borrowers
Although the debtor is not bankrupt, the business is in
difficulty, restructuring progress is poor and it is recognized
that the business may fall into bankruptcy
Potentially Bankrupt
Borrowers
Although the debtor is not legally or formally in a state of
bankruptcy, it is virtually bankrupt because the business is
in deep trouble and there are no prospects for restructuring
Effectively Bankrupt
Borrowers
The debtor is legally and formally bankrupt
Bankrupt Borrowers
26
a
b
c
a
b
c
a
b
c
A
B
C
A
B
C
A
B
C
S
Ⅰ(cid:0)
Ⅰ(cid:0)
Ⅱ(cid:0)
Ⅱ(cid:0)
Ⅲ(cid:0)
Ⅲ(cid:0)
Ⅳ(cid:0)
Ⅳ(cid:0)
Ⅴ(cid:0)
Ⅴ(cid:0)
Ⅵ(cid:0)
Ⅵ(cid:0)
Ⅶ(cid:0)
Ⅶ(cid:0)
Ⅷ(cid:0)
Ⅷ(cid:0)
Ⅸ(cid:0)
Ⅸ(cid:0)
(cid:0)
(cid:0)
(cid:0)
(cid:0)
Normal Assets
Substandard Loans
Doubtful Assets
Bankrupt and
Quasi-Bankrupt
Assets
The Framework for Managing Individual Loans
well as Continuous Monitoring performed when the credit
Credit Assessments
conditions change.
Credit assessments involve a variety of financial analyses,
including cash flow analysis, to predict an enterprise’s ability
The Framework for Credit Portfolio Management
to repay the loan and its growth prospects. These quantitative
In addition to managing individual loans, we apply the follow-
measures are then combined with qualitative analyses of
ing basic policies to the management of the entire portfolio to
industry trends, research and development capabilities, the
maintain and improve its soundness and profitability over the
competitiveness of the company and its products or services,
medium- to long-term.
and its management capabilities. The loan application is also
analyzed in terms of the intended uses of the funds, the re-
1. Risk-Taking within the Scope of Capital
payment schedule and the state of its collateral. We adhere
To control credit risk within the scope of our capital, we
to accurate, fair and strict credit decisions based on whether
calculate the required credit risk capital through regular quan-
the credit risk falls within our Credit Policy guidelines, there is
tification of credit risk, and then set credit risk capital limits
sufficient ability to repay the debt from cash flow and a return
and manage risk-taking activities within these limits.
commensurate with the risk can be obtained.
2. Controlling Concentration Risk
As part of our measures to enhance efficiency and speed
Since the concentration of credit in an industry or corporate
up approvals, we have digitized and standardized the loan
group has the potential to severely impact a bank’s capital,
evaluation and approval processes to run on the Bank’s IT
credit control on industries with concentration risk and loan
network as the Credit Application System.
reviews of large borrowers and their groups are implemented.
We also set up credit limits for each country based on its
Obligor Monitoring
creditworthiness to manage country risk.
In addition to analyzing loans at the application stage, the
3. Balancing Risk and Return
Credit Monitoring System is implemented in order to reassess
We operate on the basic principle of seeking returns commensu-
the obligor’s grading and review self-assessment so that prob-
rate with the credit risk. Loan pricing, therefore, uses our credit
lems can be detected at an early stage and quick and ad-
risk quantification calculations and the Sumitomo Mitsui Value
equate action can be taken. The system includes Periodic
Added (SMVA) indicator to ensure that adequate profit is gener-
Monitoring with receipt of the annual report, as
ated after deducting credit cost, cost of capital and expenses.
Organization
of debtor
information
Obligor’s grading/grading outlook/credit policies (action plan)/facility grading decision-making flow
Nonconsoli-
dated
Financial
Condition
Rating
Nonflagged
Creation and
Revision of
Audit Card/
Registration
for the
Financial
Statements
Consolidated
Financial
Condition
Rating
Flagging
According to
the Self
Assessment
Standards
Nonconsoli-
dated Overall
Rating
Flagged
Self
Assessment
Logic
Quantitative Assessment
Financial Condition
Assessment
Credit Status
Qualitative Assessment
Final
Debtor
Rating
Assign-
ment
Normal
Borrowers
Borrowers
Requiring
Caution
Potentially
Bankrupt
Borrowers
Effectively
Bankrupt
Borrowers
Bankrupt
Borrowers
Ratings Outlook
Assessment
(cid:0)
Industry
Trends
Qualitative
Risk
Factors
Determination of
Credit Administration
Policies
Credit Administration
Policy Segment
*Positive
*Flat
*Negative
Policy for Handling
Each Individual Company
Action Plan Formulation
Restructuring
Feasibility
Basic
Approach
Specific
Action Plan
Facility Grading Assignment
27
4. Reduction of Problem Loans
The Corporate Research Department within the Corporate
In order to counter concerns of increasing losses from the
Staff Unit performs the basic research on industries and
deterioration of existing problem loans or the appearance of
subsectors, and investigates individual companies to monitor
new problem loans, we are striving to quickly reduce problem
early signs of problems or growth potential.
loans, by conducting loan reviews to set new responses and
Each business unit’s credit departments conduct the credit
clarify action plans, and by strengthening our recovery and
judgment for the loans handled by their business units and
asset value maintenance strategies.
manage the business units’ portfolios. The credit limits they
5. Toward Active Portfolio Management
use are based on the baseline amounts established for each
In addition to controlling the individual loan approval process,
rating category and they pay particular attention to evaluating
we also actively manage our loan portfolio on an aggregate
and managing customers or loans perceived to have particularly
basis. The newly established Portfolio Management Department
high credit risk.
spearheads our use of credit derivatives and loan securitization
Bankrupt or virtually bankrupt companies are generally
in the markets to proactively manage our portfolio.
handled by the Credit Administration Department, which is
working to recover non-performing loans as quickly as possible.
The Credit Risk Management System
The Credit Review Department, the Audit Department for
The Credit Risk Management Department within the Corporate
the Americas, and the Audit Department for Europe operate
Staff Unit is responsible for the comprehensive management
independently of the business units, the Corporate Staff Unit
of credit risk. This department determines the credit policies,
and the Corporate Services Unit. These departments audit
establishes the internal rating system, develops credit risk
the soundness of assets, accuracy of gradings, self-assess-
quantification methods, sets credit limits and approval limits,
ments, state of credit operation etc., and report audit results
and manages problem loans and other aspects of the loan
directly to the Board of Directors and the Management
portfolio administration.
Committee.
Designated Officers
Corporate Staff Unit
Management Committee
Designated Officers
Internal Audit Unit
Corporate Risk Management Dept.
Aggregates risk for comprehensive management
Plans and proposes risk management baced on qualification
Credit Risk Management Dept.
Aggregates credit risk for unified management
Plans and proposes basic credit policies
Portfolio Management Dept.
Plans, proposes, implements and administers active
portfolio management
Analyzes and researches active portfolio management
Credit Review Dept. Audit Dept. for the Americas/Europe
Formulates and proposes credit inspections
Self assessments, ratings (debtors and loans), audits of write-offs
and reserves
Reports credit review results to the Board of Directors and the
Management Committee
Business Units
Corporate Services Unit
Consumer
Banking Unit
Middle Market Banking Unit
Corporate Banking Unit
International Banking Unit
Supervisory Officers
Deputy Supervisory Officers
Designated
Officers
Supervisory Officers
Investment
Banking Unit
Supervisory
Officers
Designated
Officers
Credit Dept.,
Consumer
Banking Unit
Credit Dept.1-3,
Middle Market
Banking Unit
Audit
Depart-
ments
Credit for
Individuals
General Small
and Medium-
Sized
Businesses
Credit
Supervision
Dept.1,2,
Middle Market
Banking Unit
Individually
Monitored Small
and Medium-
Sized Businesses
28
Credit Dept.1,
Corporate
Banking Unit
Credit Dept.2,3
Corporate
Banking Unit
Credit Dept.
International
Banking Unit
Structured
Finance Credit
Dept.
Credit
Administration
Dept.
Department Manager
Credit Dept.,
Americas
Division
/Europe Division
Large Domestic
Corporations
(General)
Large
Corporations
(Special
Monitoring)
Non-Japanese
Corporations/
Overseas Structured
Finance (Americas/
Europe)
Non-Japanese
Corporations/
Overseas Structured
Finance (Asia,
Oceania/Domestic)
Domestic
Structured
Finance
Virtually Bankrupt
and Bankrupt
Customers from
All Units
Designated
Officers
Corporate
Research
Dept.
Industry trend
research
Credit
assessments of
major industry
players, ratings
revision directives
Market/Liquidity Risk
Whenever the VaR is likely to exceed the guidelines, owing to
The Market/Liquidity Risk Management System
sharp changes in the markets, we put contingency plans into
The Corporate Risk Management Department, which is inde-
effect and the ALM Committee convenes extraordinary meetings.
pendent of the business units that handle market transactions,
The market risk of our strategic equity holdings held by the
is constructing an integrated system that manages market
units not in charge of market-related activities and the market
and liquidity risk together. It sends risk reports on a daily
risk taken by our major subsidiaries are also included in the
basis to senior management via e-mail.
integrated risk measurement performed by the Corporate Risk
To prevent operational errors or manipulation of transaction
Management Department. The VaR is regularly calculated and
data, it is important to establish a system of checks and bal-
reported to the Board of Directors and Management Committee.
ances in the business departments (front office). At SMBC,
The VaR of the trading accounts of both founding banks on
both the processing departments (back office) and the admin-
a consolidated basis for fiscal 2000 was as follows:
istrative departments (middle office) conduct backup checks.
■ VaR Results
In addition, the independent Internal Audit Unit also performs
Trading Account
Maximum Minimum
Average
(Billions of yen)
Last Day
of Term
comprehensive periodic internal audits. In support of these
Sakura Bank
¥2.1
¥0.7
¥1.3
¥0.7
procedures and to offer the highest standards of service, we
Sumitomo Bank
1.6
0.3
0.9
0.7
are making use of leading-edge financial theory and tech-
(Assumed a one-day holding period and a confidence interval of 99.0%)
niques and hiring and training staff with specialist knowledge
of derivatives and portfolio management.
■ Marginal Profit or Loss and Daily VaR
for Fiscal 2000 Trading Activities
(Sakura and Sumitomo Banks)
(Billions of yen)
Marginal profit or loss
Daily VaR
Market Risk
Market risk is the chance that fluctuations in interest rates,
foreign exchange rates or stock prices will change the value
of financial products, leading to a loss.
VaR Model for the Integrated Market Risk Management
3
2
1
0
−1
−2
−3
4/3
5/3
6/3
7/3
8/3
9/3
10/3
11/3
12/3
1/3
2/3
3/3
The value at risk (VaR) method has proven effective in control-
The market occasionally undergoes extreme fluctuations
ling market risk. This method predicts the maximum potential
that exceed expectations. To manage market risk, therefore,
loss for a given probability. The SMBC VaR model calculates the
it is important to run simulations (stress tests) of situations
maximum loss through a Monte Carlo simulation of changes
that may occur only once in many years. At SMBC, we run
in profits and losses, i.e., 10,000 scenarios of market fluctua-
periodic stress tests to prepare for unforeseeable swings.
tions based on the historical data for one year. This method is
extremely effective in measuring the risk of products that
have option risk and in tracking the VaR during active trading.
Market risk can be divided into its various factors: foreign
exchange rate, interest rate, equity price and option risk. At
SMBC, we use both the VaR method and other indicators
actually used in daily operations, such as the basis point
value (BPV) indicator (to measure the change in earnings for
every 0.01% change in interest rates), for finely tuned risk
management in each risk category.
Our policy is to set the total VaR guidelines to conservative
levels relative to capital in line with our business strategies.
■ Back Testing Results
Sakura Bank
Marginal Profit or Loss (Billions of yen)
2.0
1.5
1.0
.5
0
−.5
−1.0
−1.5
−2.0
0
0.5
1.0
1.5
2.0
VaR
(Billions of yen)
Sumitomo Bank
Marginal Profit or Loss (Billions of yen)
2.0
1.5
1.0
0.5
0
−0.5
−1.0
−1.5
−2.0
0
0.5
1.0
1.5
2.0
VaR
(Billions of yen)
29
ings at risk (EaR) model in addition to the VaR model. If an ex-
(Former Sumitomo Bank)
The internal model used by the Bank (SMBC VaR) has been
evaluated by an independent auditing firm and certified to be
appropriate. To further verify the reliability of the model, we
perform back testing on the relationship between the VaR
calculated with the model and the actual profit and loss data.
The back testing results for fiscal 2000 for the trading
accounts of the two founding banks are shown on the previ-
ous page. Any data point below the diagonal line indicates a
loss that exceeded the predicted VaR for that day. Since all
the losses here were within the predicted VaR range, the VaR
model (with a confidence interval of 99%) has been demon-
strated to be sufficiently reliable.
To manage the risk in our yen-denominated banking account,
we use gap analysis employing maturity ladders and the earn-
ternal factor, such as interest rates, moves in an unfavorable
direction, the EaR model can indicate the largest estimated
change in earnings (interest rate spread) for a set period at a
given probability. Since strategy and budgetary planning is
based on the earnings for a period, we use the EaR model to
supplement the VaR model. Using Monte Carlo simulations to
generate 1,000 scenarios, we test the magnitude of the ef-
fect that new deposits and loans will have on the period’s
earnings.
In the interests of bolstering asset soundness, we recog-
nize maintaining strategic equity holdings at the levels appro-
priate to our fiscal strength and managing the price risk of
these stocks is an important issue for the Bank’s management.
Therefore, we are actively managing these risks. Namely, we
treat the entire holding of strategic equity as a portfolio and
keep the maximum potential loss amount derived from the
VaR model and the earnings for the period within the risk
capital allocations, and maintain them at an appropriate level
vis-a-vis capital.
30
■ Composition by Industry of Listed Securities Portfolio
(Market Value at March 31, 2001)
(Former Sakura Bank)
Sakura Portfolio
Nikkei Average
TOPIX
(%)
30
25
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5
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Sumitomo Portfolio
Nikkei Average
TOPIX
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i
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a
l
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s
t
a
t
e
Liquidity Risk
Liquidity risk is the chance of encountering an obstacle to rais-
ing the funds required for settlement due either to a mismatch
between the use and procurement of funds or to an unexpected
outflow of funds, or being forced to borrow at higher interest
rates than usual. At SMBC, we consider liquidity risk to be one
of the major risks. We manage liquidity risk so that we are not
overly dependent on market-based founding to cover short-term
cash outflows. Our liquidity risk management is based on a
framework consisting of setting limits and guidelines for the
funding gap, maintaining a system of highly liquid supplementary
funding sources and establishing contingency plans.
In daily risk management operations, we avoid a gradual
increase in liquidity risk by adjusting the funding gap limits
and guidelines. For an emergency situation, we have contin-
risk with the Credit Risk Management Department, which
gency plans in place to reduce the funding gap limits and
oversees credit risk, and the Corporate Risk Management
guidelines and take other measures. To prevent the chance of
Department, which oversees liquidity risk. We are continuing
market crises interfering with funding, we carry highly liquid
to upgrade settlement risk management through such mea-
assets, such as U.S. treasury bonds, and have emergency
sures as participation in the Continuous Linked Settlement
borrowing facilities in place, which also facilitates foreign
system, which will reduce the risk inherent in settlement of
currency-denominated liquidity management.
foreign exchange transactions.
Processing Risk
Processing risk is the chance of losses arising from negligent
Systems Risk
Systems risk is the chance of a loss arising from the failure,
administration by employees, from accidents or from unautho-
malfunction or unauthorized use of a computer system. We
rized activities. In our administrative regulations, the basic admin-
have instituted a number of basic policies to manage systems
istrative policies are summarized as “comprehending the risks
risk, including a security policy, usage regulations and specific
and costs of administration and transaction processing, and
management procedures. We are furthering strengthening
managing them accordingly,” and “seeking to raise the quality
safety measures based on a needs assessment drawing on
of administration to deliver high-quality service to customers.”
such references as the Financial Inspection Manual, approved
We have organized the Bank’s systems to achieve these goals.
by the Financial Services Agency, and the Security Guidelines
In our operating regulations, we have also defined specific
published by the Financial Information Systems Center.
rules for processing risk management. The rules divide process-
Since computer-related trouble at financial institutions now
ing risk management tasks among six types of departments:
has greater potential to impact the public, and systems risk
the Operations Planning Department, compliance departments,
has increased with the IT revolution and the concomitant use
operations departments, transaction execution departments
of networks and personal computers, we have taken the nec-
(primarily the front office departments and branches), the
essary steps to ensure the smooth, secure operation of our
Internal Audit Department and the Customer Relations Depart-
information systems. We have duplicated each system and
ment. The Board of Directors also reviews administrative con-
infrastructure and fully proofed our Tokyo and Kansai computer
ditions annually and sets new management policies as required.
centers against earthquakes and other disasters. To maintain
In addition, we have set up a specialized group within the
the privacy of customer information and prevent information
Operations Planning Department to strengthen administrative
leaks, we are encrypting sensitive information, blocking
procedures throughout the SMBC Group.
unauthorized external access and implementing all known
At the Bank, we include processing risk in our calculation
countermeasures to secure our data. We have also established
of risk capital requirements and have allocated a certain per-
contingency plans and conduct training as required to ensure
centage of risk capital to cover it, based on the quantification
we are fully prepared in the event of an emergency. We will
of the risk for fiscal 2001.
continue to revise our countermeasures as new technologies
Settlement Risk
Settlement risk is the chance of a loss arising from a transac-
We include systems risk in our calculation of risk capital
requirements and have allocated a certain percentage of risk
tion that cannot be settled as planned. Since this risk com-
capital to cover it, based on the risk quantification results for
and usage patterns emerge to maintain our security.
prises elements of several types of risk—such as credit risk,
fiscal 2001.
liquidity risk, processing risk and systems risk—it requires
interdisciplinary management. The Operations Planning Depart-
ment is charged with coordinating the management of this
31
Individual Business Unit Strategies
Consumer
Banking Unit
p.34
Main Business Areas
Services for individual customers in the
domestic market, with a focus on investment
management and asset building
Key Objectives
1. Improve profitability in consumer banking
through refined customer segmentation,
increase sales of profitable products and
services via an extensive network and
enhance operational efficiency
2. Establish the SMBC Group as the market-
leading financial service brand for
individuals
Investment
Banking Unit
p.46
Main Business Areas
Provision of investment products to domestic
and international customers
Key Objectives
1. Provide newly developed products to meet
the demands of our customers
2. Offer financial services through the global
network of the SMBC Group including Daiwa
Securities SMBC
3. Expand the syndicated loan market
4. Make proposals related to customers’ IT-
based business models
5. Start defined contribution pension plan
business
Heighten consumer banking profitability
by identifying and targeting finely tuned
customer segments, expanding sales of
high-margin products and services and
securing low-cost operations
Sustain a leading role in the
e-business market
Main Business Areas
Yen and foreign-currency banking, trading and
promotion of financial instruments of the
capital markets
Key Objectives
1. Strengthen and round out the organization in
pursuit of enhanced customer convenience
2. Implement proactive ALM anticipating
market trends
3. Increase profit opportunities in new business
areas
Treasury Unit
p.44
32
Main Business Areas
Banking services to small and medium-sized
businesses in Japan
Key Objectives
1. Create an organization capable of a nimble
response to business needs (establish the
SMBC brand among business clients)
2. Cater to growth enterprises
3. Develop network-based services and loans
for small and medium-sized enterprises
4. Lead in the development of efficient
settlement systems
5. Leverage the Group’s total strength
Middle Market
Banking Unit
p.37
Strengthen marketing capabilities
and make strategic IT investments
to develop e-businesses for small
and medium-sized businesses
Sumitomo Mitsui
Banking Corporation
Main Business Areas
Banking services to Japanese corporations and
their group companies
Key Objectives
1. Deliver solutions that enhance corporate
value
2. Expand business with the affiliates of our
large customers
3. Respond to changing financing and investing
Establish high ROA business
needs
models to promote business
4. Build new alliances based on partnership
with major domestic and
foreign corporations
banking
Corporate
Banking Unit
p.40
Rebuild and expand our overseas
presence with clearly defined
strategies for each region
International
Banking Unit
p.42
Main Business Areas
Banking services to Japanese and non-
Japanese corporations, financial institutions,
and sovereign and public sector clients
Key Objectives
1. Realize synergies from overseas network
integration early
2. Offer responsive, multifaceted services to an
extensive, select clientele
3. Develop a solutions business based on
leading-edge financial services and
knowledge
The
Group Company
Networking Strategy
p.48
e-Business
p.50
33
Consumer Banking Unit
Business Strategies
fiscal 2000 alone, call centers logged two million outbound
calls, offering customers that opened new accounts addi-
tional services or such products as investment trusts and
Both the asset and liability sides of the Japanese consumer
mortgages.
banking market have grown, and with the opportunities
We aim to secure our position as
afforded by information technology (IT) to diversify and pursue
the leading bank in the consumer
new business models, this market has become one of the
banking market. To this end, we
most attractive to banks in recent years. At the same time,
are building up brand recognition
competition has intensified as a result of financial group
with the slogan, One’s Next (we
mergers and entrants from other sectors. With these factors
help plan the next step of one’s
at play, it is significant that SMBC ranks first in consumer
financial plan according to his/her
banking in terms of investment trust balances, loan balances
life stage), expressing the underly-
and customer accounts.1 We are starting out with an advan-
ing reliability and convenience we
tageous position that we will leverage to offer even higher
offer customers.
value-added financial services. To sustain our lead, we will draw
upon our already formidable product and service expertise,
our channel development capabilities and our staff of highly
skilled financial consultants.
Organizationally, we have the pieces in place to pursue this
market. Our frontline operations are positioned around three
main customer segments: private banking clients, asset
management clients and long-term asset building clients.
Our Block Consumer Business Offices,2 branch network, Con-
sumer Investment Services Offices, Consumer Loan Promotion
Offices and call centers provide the most appropriate channels
and processes for the products and services that meet each
individual’s needs.
Achieving low-cost operations is a key objective in this mar-
ket. While we continue to consolidate and rationalize our con-
ventional branch network, we are also aggressively employing
IT within branches to heighten teller efficiency and centralize
back office administration. At our manned branches, we are
concentrating on the products and services requiring in-depth
consultation. We are encouraging customers to use our remote
channels as the main conduit for everyday transactions to
complement our manned branches.
Our call centers are a strategically important and effective
channel for developing the consumer market. Utilizing large
volumes of data and needs analyses, we are achieving a high
rate of success by approaching customers with service and
product suggestions over the telephone. In the last half of
34
Notes: 1. As of March 31, 2001, the investment trust balance for
individuals was ¥1.2 trillion, loans to individuals reached ¥13.5
trillion and the number of ordinary bank accounts for individuals
totaled 27 million.
2. A Block Consumer Business Office is a frontline operation
covering several branches and Consumer Investment Services
Offices in a district.
Key Objectives
1. Improve profitability in consumer banking through
refined customer segmentation, increase sales of profit-
able products and services via an extensive network
and enhance operational efficiency
2. Establish the SMBC Group as the market-leading financial
service brand for individuals
Call center
Asset Building Segment
The asset building segment is primarily composed of people
with relatively long-term horizons—accumulating assets for
their retirement or to use as down payments to secure housing
loans. We offer a flexible range of service delivery options to
accommodate their diverse lifestyles, starting with our manned
branches and call centers, which form the market hub for
sales promotions. These are supplemented by telephone
banking, Internet banking and other remote channels.
As of June 30, 2001, we had set up 135 MC Desks (Money
Loan Plaza
Lifestyle Consulting Desks) manned by consultants specializing in
Asset Management Segment
helping customers manage their money according to their life-
We have positioned highly trained financial consultants in
styles. They offer comprehensive one-stop financial counseling
each Block Consumer Business Office and Consumer Invest-
to promote sales of investment and savings products, such as
ment Services Office, the specialized asset management ser-
investment trusts and foreign currency instruments, as well as
vice outlets that totaled 21 in number as of June 30, 2001.
loan products, such as primary or secondary mortgages, loans
For customers seeking sophisticated, objective investment
for rebuilding or renovation, and loans for education. When a
product consulting, these financial consultants offer tailor-
customer comes to us for advice, we provide a personalized
made financial solutions for their assets and debts based on
service that employs database-marketing techniques and offers
our Total Portfolio Plan for Financial Assets.
the right combination of sales promotions and remote-channel
We offer one of the largest selections of investment trust
access to match the customer profile and stage of life.
units among the Japanese banks. As of June 30, 2001, our
roster included 55 funds managed by 26 companies. To
make it easier for customers to match funds to their needs,
we grouped 26 of these funds, based on their performance,
under the SMBC Fund Selection umbrella.
By satisfying a broad range of customer needs while pro-
viding individualized service, we aim to establish SMBC as the
leading brand for asset management services.
Money Lifestyle Consulting Desk
As measured by loan balances, we are the leader in the
housing loan market. To develop this market, we have devel-
oped a large product lineup and a network of specialized
Consumer Loan Promotion Offices that have direct tie-ups
with real estate agencies and housing developers. As of June
30, 2001, we already had 63 offices in place and we plan to
further expand this network and its functions.
With these channels serving the needs of asset builders
at every stage, we are confident we can ensure SMBC is the
main, lifelong bank for our customers.
Consumer Investment Services Office
35
Private Banking Segment
In the private banking segment, we cater to high-net-worth
Drawing on the Financial Service
Capabilities of the SMBC Group
individuals and the owners of high-growth businesses, such
SMBC reorganized its credit card business first in April 2001,
as those that are planning or have already completed public
changing the name of The Sumitomo Credit Service Company,
offerings or listings. We offer these individuals business-
Limited, to Sumitomo Mitsui Card Company, Limited. Then in
owner-specific, long-term consulting with strategic capital
July, it transferred the UC Card division of Sakura Card Co.,
plans and investment management components.
Ltd., to Sumitomo Mitsui Card. Having now reorganized both
In the strategic capital planning business, we advise on
the former Sumitomo and Sakura Banks’ credit card subsid-
public offerings, succession planning and the many other
iaries, we are ready to pursue the credit card business as a
requirements of high-net-worth individuals, drawing on our
central component of our consumer banking operations.
staff of private bankers with experience in complex corporate
In October 2000, we
transactions and advanced international product knowledge.
inaugurated the Japan Net
On the asset management side, we develop and provide
Bank, Ltd., the country’s
customized products and services based on each customer’s
first exclusively Internet-
market perspective.
based financial institution.
Our services for both private banking areas are premised
It combines the merits of
on building a long-term relationship and becoming the
year-round, 24-hour acces-
customer’s trusted partner.
sibility with high interest
Japan Net Bank
Payment and Settlement Services
joint-venture partners and other allied service providers, we
The way individuals settle their financial obligations has changed
will employ the advantages of the Internet and IT to make
with rapid technological progress in the information and com-
Japan Net Bank so convenient it will become the main bank
munications fields and the adoption of increasingly diverse
of choice for Internet customers and a banking model for the
rates on deposits and low service charges. Together with our
lifestyles. In response, we are bolstering our remote channels
21st century.
to include a full slate of telephone and Internet banking ser-
The Sakura Loan Partner, Ltd., a joint venture founded in
vices as well as mobile banking services for mobile telephones.
June 2000 with am/pm Japan Co., Ltd., Sanyo Shinpan Finance
We are also forging ahead with convenience store ATMs to
Co., Ltd., and Nippon Life Insurance Company, opened its
lower operating costs and enhance customer convenience.
doors in July 2000 to begin offering the precedent-setting
Through our alliance with the am/pm Japan Co., Ltd., a
@Loan product group of small-sum, unsecured loans for indi-
convenience store chain operator, we have already estab-
viduals. At the same time, the joint venture began deploying
lished a network of 1,100 @B∧NK terminals accessible 24
its highly versatile and advanced loan consultation terminals,
hours a day. In addition, our One’s Direct service, which
called @Loan Boxes, at am/pm convenience stores in the
bundles our remote channel banking services together, has
Tokyo metropolitan area. By June 30, 2001, the @Loan Box
met with enthusiastic market response, attracting 3.73 mil-
network extended to 333 locations.
lion subscribers by fiscal year-end. Our goal is to make
We will continue to implement new business models in such
SMBC known as the brand offering the highest degree of
fields as credit cards, unse-
convenience for everyday banking.
36
cured loans, and payment and
settlements, to develop fresh
opportunities and enhance
the value of the SMBC Group
as a whole.
Middle Market Banking Unit
Creating a Responsive Organization—
The SMBC Keyword
Business Strategies
To establish the SMBC brand among business clients, we are
SMBC has retained the organizational improvements made
building an organization capable of responding rapidly to the
by both founding banks to the traditional full banking branch
changing needs of small and medium-sized enterprises under
model. Under these changes, the frontline organization for
the SMBC banner. The S stands for the three Ss, representing
small and medium-sized businesses was separated from that
the provision of specialized, speedy solutions; the M stands
for individual clients, allowing a speedier, more appropriate
for a customer-driven marketing approach; the B is short for
response to their growing needs. We can now serve our busi-
becoming the customer’s best partner; and the C symbolizes
ness clientele, the largest in the country, with well-balanced
cooperation between the Middle Market Banking Unit, head-
teams consisting of knowledgeable branch staff and corpo-
quarters and the other banking units.
rate finance specialists at our headquarters. This structure
To achieve these organizational goals, we have stationed
is allowing us to lower costs while improving service.
specialists in derivatives, capital markets, foreign business,
electronic banking and other fields in the 10 regional head-
quarters that manage their own Middle Market Banking divisions.
In the Unit’s Business Promotion Department, and in the other
departments, we have also assembled experts in numerous
other fields—including mergers and acquisitions (M&A),
management buyouts, factoring and securitization, loan syn-
dication, public offerings and investment management—to
assist in providing first-rate customer solutions.
Key Objectives
1. Create an organization capable of a nimble response to
business needs (establish the SMBC brand among busi-
ness clients)
2. Cater to growth enterprises
3. Develop network-based services and loans for small
and medium-sized enterprises
4. Lead in the development of efficient settlement systems
5. Leverage the Group’s total strength
37
Catering to Growth Enterprises
business users, with the ultimate goal of stimulating greater
Within the Business Promotion Department, we have estab-
demand for our solutions business among small and medium-
lished the New Business Promotion Department, which com-
sized enterprises. In May 2001, we inaugurated the Value
prises the New Business Promotion Group and IPO Promotion
Door Site for Value Door subscribers. This web site allows
Group desks, to focus on winning more business with custom-
us to offer each service to businesses on a one-to-one basis
ers in growth fields, such as semiconductors, biotechnology,
according to the company’s individual circumstances.
IT, environmental services and health care. Drawing on their
To better serve the financing requirements of small and
proprietary knowledge, the seasoned staff at the New Business
medium-sized businesses, we are shortening the time required
Promotion Group desk analyze and evaluate a company’s tech-
for loan approvals by offering loans with credit guarantees by
nologies, marketability and growth prospects, and introduce
the Credit Guarantee Association and by offering unsecured
to it the appropriate capital sources, such as the new business
loans based on scoring model analyses. We are also boosting
support fund, an unsecured financing system. The Group’s
our loan business by accepting applications for unsecured loans
venture capital wing, SMBC Capital Co., Ltd., also assists
over the Internet analyzed with scoring models to complement
companies in the start-up stages with their capital requirements.
the initiatives at our manned Business Support Plazas.
At the IPO Promotion Group desks, account executives
The Business Owner Banking Department is a new depart-
experienced with public offerings, particularly initial public
ment within the Middle Market Banking Unit, set up to plan
offerings, work with affiliate Daiwa Securities SMBC Co., Ltd.,
and promote new products and services specific to small and
to advise on and help implement capital strategies.
medium-sized businesses. In the department, the Business
Developing Network-Based Services and Loans
for Small and Medium-Sized Enterprises
Development Group teams up with convenience store chains
and similar businesses to offer innovative financing packages,
including regular loans, to their franchisees. This is just one
SMBC has the largest clientele of small and medium-sized
example of how we are tapping new demand using highly
businesses in Japan. We are upgrading service to these
effective, low-cost methods.
enterprises by establishing dedicated Business Support Plazas
around the country. As of June 30, 2001, the number of
Business Support Plazas totaled 123.
Leading the Development of Efficient
Settlement Systems
These plazas are focusing on sales of Value Door, a PC-
Our settlement and cash management professionals deliver
based service package that offers online settlement services,
solutions at the appropriate level of sophistication to meet the
financing and business information. We are promoting Value
requirements of individual businesses. In February 2000 we
Door as the flagship product of our remote channel for
were granted a patent on the business model for our Perfect
reconciliation service, which involves setting up numerous col-
lection accounts for the receivables of a business in advance
and using account number information instead of names to
process incoming payments, thereby greatly expediting the
account reconciliation process. Since we launched this service,
it has been well received.
To facilitate innovations of this nature, we set up the
e-Business Patent Department within the Electronic Commerce
Banking Department.
Business Support Plaza
We also established the Global Cash Management Depart-
ment in the Electronic Commerce Banking Department to
38
enhance our cash management services for global corporate
In the burgeoning field of business-to-business (B2B) elec-
groups. We offer a range of solutions based on the concept
tronic commerce, SMBC was one of the originators of
that group management begins with cash management.
PAYWEB, an Internet-based settlement system encompassing
Now more than ever, domestic businesses are working
bank transfers, payments at convenience stores and payments
to make their payment systems more efficient. To tap this
by credit cards. We are also a participant in the IDENTRUS
demand, we have assembled a full lineup of PC-based bank-
consortium, an international provider of digital identities. We
ing services, which have gained a warm market welcome for
are continuing to develop various authentication and payment
their superior functionality and easy operation.
systems for electronic commerce as well as electronic data
interchange (EDI) services for trade finance.
■Perfect Reconciliation Support Service
Conventional
Fund Transfer
System
Fund
Transfer
Fund
Transfer
Client A
Client B
Client C
Client A
Fund Transfer
Using Perfect
Client B
Fund Transfer Deposit Transaction Report
Transacting Branch
Deposit Account
Payer
Transaction
Amount
Payer’s
Bank
Client A
¥30,000
Bank A
Client B
¥5,000
Bank B
Client C
¥30,000
Bank C
Settlement
Transfer
Specialized
Deposit Account
Branch
Specialized
Deposit Account
for Incoming Fund
Transfers
6000001
6000002
Fund Transfer Deposit Transaction Report
Specialized
Deposit
Account Number
Payer
Transaction
Amount
Payer’s
Bank
6000001
Client A
¥30,000
Bank A
6000002
Client B
¥5,000
Bank B
6000003
Client C
¥30,000
Bank C
Transacting Branch
Deposit Account
Branch
Tokyo
Branch
Osaka
Branch
Main
Branch
Branch
Tokyo
Branch
Osaka
Branch
Main
Branch
Client C
6000003
It is easy to confirm payment since the specialized deposit
account number is included with each deposit record.
Leveraging the Group’s Total Strength
Sakura Factors Co., Ltd., take care of their factoring needs,
In the solutions business, it is becoming increasingly impor-
and SMBC Consulting Co., Ltd., and The Japan Research
tant to respond to customer needs with the entire might of
Institute, Ltd., provide management information consulting.
the Group. In view of this, we are strengthening the coopera-
Mitsui Finance Service Co., Ltd., Sakura Finance Service Co.,
tion between Group companies to deliver comprehensive
Ltd., and QUOQ Inc. serve as collection agents. Affiliate
financial services as a single unit and enhance the value pro-
Daiwa Securities SMBC Co., Ltd., a joint venture with Daiwa
vided to each customer. SMBC Capital, for instance, supports
Securities Group Inc., offers top-flight investment banking
the funding requirements of fast growing enterprises, while
services. Taken together, the Group constitutes a formidable
SB Leasing Co., Ltd. (on September 1, 2001, the corporate
presence in financial markets, which we are using to the
name will become SMBC Leasing Co., Ltd.), handles their
greatest advantage of our clients and the Group itself.
leasing demands. Sumigin General Finance Co., Ltd., and
39
Corporate Banking Unit
Delivering Solutions that Enhance
Corporate Value
Business Strategies
Many of our clients are focusing on restructuring to bolster
The Tokyo Corporate Banking Division I and II, and the Osaka
corporate value and increasing the level of sophistication at
and Nagoya Corporate Banking Divisions are the core of our
which the groups are managed. We believe we can help cus-
Corporate Banking Unit, which serves the country’s largest
tomers maximize corporate value by identifying solutions with
corporations. This unit does not limit itself to the traditional
financial techniques, quickly formulating a proposal and help-
lineup of investment management, capital procurement and
ing implement it. The actual process involves working with the
payment services. Instead it offers multifaceted services that
client to analyze the profitability of its operation. Then, with
span the entire spectrum of finance and the operations of
the assistance of Daiwa Securities SMBC, we examine the fea-
these companies right down to their employees, subsidiaries
sibility of acquiring new operations, or spinning off or divesting
and commercial networks.
existing operations. We then devise a financing structure that
Management trends in recent years have focused on
utilizes the company’s assets, such as real estate or receiv-
greater selectivity and concentration of resources aimed at
ables, to their maximum effect, or put together a plan to
increasing shareholder value, coinciding with dramatic IT
increase the liquidity of the assets with a view toward
developments and structural reforms. These major shifts in
improving their balance sheets.
management thinking and methodology are also stimulating
notable changes in financial needs. In the Corporate Banking
Unit, we believe our mission is to go beyond the conventional
Expanding Business with the Affiliates of
Our Large Customers
customer relationships of the past and set up new business
Most of the corporations in our client base are parent compa-
models on which customers can rely. Nurturing the human
nies of large numbers of subsidiaries and affiliates in Japan
resources to achieve this goal and broadly transforming our
and overseas, which, when you consider the employees and
business into a solutions business that can enhance corporate
commercial networks, constitute a very broad pool of poten-
value for customers are some of our most pressing issues.
tial customers. Accordingly, the Corporate Banking Unit is
Consequently, we have assigned account managers to liaise
banding with the International, Middle Market and Consumer
with each client company individually, discover its particular
Banking Units as a single marketing organization to expand
needs and work with the product departments at our head-
our client base throughout the entire SMBC Group.
quarters and such Group companies as Daiwa Securities
SMBC to create and propose solutions and product bundles.
By realizing the synergies between the two founding banks
and using their accumulated know-how, we intend to strengthen
our ability to offer full solutions.
Key Objectives
1. Deliver solutions that enhance corporate value
2. Expand business with the affiliates of our large
customers
3. Respond to changing financing and investing needs
4. Build new alliances
40
Responding to Changing Financing and
Investing Needs
To satisfy the increasingly diverse financing requirements of
our clients, we supply short-, medium- and long-term financing
and assist with direct capital market fundraising involving
commercial paper and corporate bond issues and other
instruments. We also offer commitment lines of credit to meet
their cash flow needs, syndicated loans—which do not yet
have a solid track record in Japan compared with the United
We have assembled a large cohort of staff in the Financial
States and Europe—and non-recourse loans.
Solutions Department that is well versed in the investment
On the investment side, we offer a full menu of products,
banking field. Its mandate is to get involved right from the
such as tailor-made deposit products incorporating derivatives
early planning stages in creating multilayered, creative solu-
and securitized products, as well as asset-backed securities
tions to client needs. To provide these staff members with
that match the customer’s risk tolerance, investment budgets
leading-edge skills on an ongoing basis, their desks are
and time horizons.
Building New Alliances
located in the Investment Banking Unit, but their responsibility
is to work in teams with account managers to come up with
customer solutions for the Corporate Banking Unit.
We have several clients who participate in the financial indus-
Moreover, we have introduced corporate finance CRM sys-
try. Although the financial entities they create may compete
tems as account management support tools that allow users
with our commercial banking business to a certain extent, in
to exchange data and proposals in real-time. These tools
most cases they operate in different market niches or assume
were developed completely in-house from the basic concept
complementary roles, coexisting without conflict. We are
to the system design, and are configured not only for use by
forming new alliances with these firms and starting new
the account managers but also by specialist staff in overseas
services that would not have been contemplated by one bank
offices, the Financial Solutions Department and the Invest-
on its own. We are ahead of our contemporaries in setting up
ment Banking Unit, to collaborate in solving customer issues.
winning business models and working toward our mission of
These tools make it possible to gather and utilize the Bank’s
creating unconventional relationships.
know-how at any point in time.
Organizational Changes to Strengthen Our
Problem-Solving Abilities
ment and the corporate finance CRM, we are able to quickly
gather complex, multifaceted information and assemble it as
The main issue facing the Corporate Banking Unit is how to
solutions to the ever-changing problems confronting our clients.
With the backup provided by the Financial Solutions Depart-
transform itself into a solutions business that can enhance
the corporate value of our customers. To realize this goal, we
launched a series of organizational changes and improvements
that coincided with the formation of SMBC. One of the key
measures was to station the Investment Banking Unit’s Finan-
cial Solutions Department staff within the Corporate Banking
Unit and to introduce corporate finance CRM (customer rela-
tionship management) systems as marketing support tools.
41
International Banking Unit
Business Strategies
Europe and Asia. This may include expanding beyond the
business fields in which we are already active.
By maximizing our new structure, we are going beyond the
SMBC completed the integration of the greater part of its
restrictions of traditional commercial banking to offer flexible,
international network by April 2, 2001, the day after the
multifaceted services. At the same time, to maximize the ben-
merger. By facilitating the smooth and rapid consolidation of
efits of the merger, we are strategically allocating manage-
overlapping branches, the merger is enabling the International
ment resources freed by the integration of our international
Banking Unit to realize synergies, in terms of revenue, result-
network to expand our presence in key markets. In Asia—
ing from its expanded client base and product lineup. This,
where the scope of our operations places us in the top ech-
in turn, will enable the unit to strengthen and expand its
elon of Japanese financial groups in terms of both quantity
business abroad.
and quality—we are maximizing the geographical advantage
Although the U.S. economic slowdown has drawn a veil
we enjoy over our North American and European competitors
over growth prospects in Asia and Europe, we have a solid
to reinforce our customer base and our network. Our intent is
clientele of leading companies in both regions. Our founding
to bolster our presence in the Asian market by expanding our
banks have left a legacy of highly rated products and financial-
existing Asian network—a fact we signaled by elevating our
market knowledge, allowing us to compete internationally as
Beijing Representative Office to branch status—and reviewing
one of the top market players. To build on the global SMBC
investments, thereby positioning us to better pursue opportu-
brand created by the merger, we are operating under a
nities among corporations of Japanese and foreign origin
three-region divisional structure—the Americas, Europe and
active in the region.
Asia—with each division pursuing individual strategies tailored
to its region.
Progress Integrating the Overseas Network
■ Key Objectives
1. Realize synergies from overseas network
integration early
2. Offer responsive, multifaceted services to an
extensive, select clientele
3. Develop a solutions business based on leading-
edge financial services and knowledge
Realizing Synergies from Overseas
Network Integration Early
SMBC had essentially completed integration of its overseas
network as of the merger date. This is an indication of the
importance of the concept of speedy delivery in our man-
agement style. It is also a sign of our resolve to realize the
benefits of the merger in international banking as early as
possible by strategically allocating human resources over-
seas in key areas to reinforce marketing and integrating over-
lapping branches to enhance efficiency. In particular, we are
following regionally differentiated strategies in the Americas,
42
No. of Offices
60
40
20
10
10
14
3
3
3
3
4
4
0
Branches
(Americas)
Branches
(Europe)
Branches
(Asia/Australia)
23
36
42
5
16
17
4
2
3
Agency
Offices
Representative
Offices
Total
Former Sakura Bank (March 31, 2001)
Former Sumitomo Bank (March 31, 2001)
SMBC (April 2, 2001)
March 31, 2001
April 2, 2001
Branches (Americas)
Branches (Europe)
Branches (Asia/Australia)
Agencies
Representative Offices
Total
Sakura
Bank
3
Sumitomo
Bank
3
3
10
2
5
23
4
10
3
16
36
SMBC
3
4
14
4
17
42
Offering Responsive, Multifaceted Services
to an Extensive, Select Clientele
The far-reaching experience of the two founding banks in
Developing a Solutions Business Based on
Leading-Edge Financial Services and
Knowledge
overseas markets has given us an enviable international cus-
Amalgamating the experience and knowledge amassed by
tomer base. Our extensive, select clientele overseas is cen-
the two founding banks over many years abroad, we will work
tered on leading Japanese corporate groups. Many of these
hand-in-hand with the Investment Banking Unit to develop as
customers are rapidly expanding their overseas operations.
a leading-edge financial services group worldwide. With the
Accordingly, our services are tailored to help them respond to
reputations earned by our predecessors, we can continue to
the strategic challenges inherent in global expansion. To this
offer solutions incorporating the latest services and know-how
end, we emphasize timely, effective response at the overseas
in the market, such as ways to improve customer balance
office level, close cooperation with our domestic banking
sheets with tax leases and securitization arrangements, and
units and the provision of high value-added services.
various types of non-recourse financing utilizing syndication.
To enhance our services to multinational corporations of
SMBC enjoys healthy market shares in such fee-based
foreign origin, we will continue to take steps aimed at enhanc-
businesses as global cash management services (CMS), yen
ing SMBC’s market presence in Europe and the Americas. At
custody services and yen clearing services, none of which
the same time, we will endeavor to support the efforts of
adds asset to our balance sheet. To increase our share of
such customers to expand into Japan and other Asian
these markets, we will continue to make strategic investments
countries or to improve operations, by providing responsive,
to deliver customer satisfaction. This will entail maintaining our
multifaceted services that ensure a high level of customer
ability to quickly gather and disseminate market information
satisfaction.
and our capability to match services to customer needs.
43
Treasury Unit
Business Strategies
we used the opportunity presented by the merger to establish
a Treasury Marketing Department. To offer the highest stan-
dard of service in the industry, we are increasing the number
The Treasury Unit operates in the domestic and international
of treasury officers engaged in foreign currency-related trans-
money, foreign exchange, securities and derivatives markets
actions, adding new, low-cost gateways for electronic transac-
to serve the hedging and dealing needs of our customers and
tions, providing rapid pricing and detailed market information,
take advantage of arbitrage opportunities while controlling
and beefing up our 24-hour foreign exchange dealing.
market and liquidity risk at appropriate levels.
To provide a superior level of service with customer conve-
Banking
nience at the forefront, we are strengthening and rounding
In our banking operations, we manage our exposure to mar-
out the Treasury Unit structure and making full use of the latest
ket and liquidity risk inherent in our own assets and liabilities,
technology and a highly trained staff. With the merger, our
such as loan assets, securities, and deposits in Japan and
combined assets expanded dramatically relative to the bal-
abroad. By managing liquidity and market positions with a
ance sheet of each of the predecessor banks. To manage the
careful eye on the interest rate and supply and demand envi-
accompanying risk dynamically, we are concentrating on
ronment, we strive to increase our profit opportunities from
upgrading our market intelligence and risk management
banking operations.
capabilities. We are also launching into new business areas
The Treasury Department handles yen-denominated trans-
as a fresh source of revenue.
actions while the International Treasury Department deals with
Key Objectives
foreign currency-denominated transactions. Both departments
are implementing cash flow management systems and fine-
1. Strengthen and round out the organization in pursuit of
tuned simulations to increase the sophistication of our ALM tech-
enhanced customer convenience
2. Implement proactive ALM anticipating market trends
3. Increase profit opportunities in new business areas
niques to manage the increased magnitude of risk arising from
the merger. Their mandate is to conduct our ALM operations
with an accurate understanding of interest rate trends.
For Your Reference
The Treasury Unit also issues corporate bonds for our long-term
funding needs. Prior to the merger, the two former banks unified
their bond issuing and were awarded the Straight Bond Deal of the
Year 2000 by Rating and Investment Information, Inc. and the Issuer
of the Year 2000 by Thomson DealWatch.
Treasury Operations
Treasury operations of
the new bank were uni-
fied at the start of the
merger. The Treasury
Unit uses an integrated
computer system, a
single risk management
system and a single
dealing room. The operations are divided into three main
segments: customer transactions, banking and trading.
Customer Transactions
The merger dramatically expanded the transaction volume
handled by the Treasury Unit. To further expand our clientele
and respond to its increasingly diverse and advanced needs,
44
Trading
Risk Management
The goal of our trading operations is to maximize profit poten-
The Capital Markets and Treasury Operations Department
tial through market transactions taking advantage of short-term
(back office) and the Corporate Risk Management Department
market fluctuations and intermarket arbitrage opportunities.
(middle office) are responsible for screening and checking
Under the new bank structure, customer orders for foreign
Treasury Unit (front office) operations to prevent operating
exchange transactions, interest rate swaps and ALM oper-
mistakes or improper transactions from occurring and to
ations are handled by the Trading Department, which is charged
avoid transactions that deviate from risk management guide-
with the efficient management of risk. To increase revenue
lines and limits. In addition, the Audit Department conducts
opportunities, we are also forging into such new product
comprehensive audits on a regular basis. We are also further
areas as weather derivatives and commodity derivatives.
tightening our compliance systems to ensure due diligence in
the observance of market rules, regulations and laws.
Customers
Corporate Business Office/Branches
Planning Dept.,
Treasury Unit
Treasury Marketing Dept.
Treasury Dept.
Deposits
International Treasury Dept.
Upgrading services in
pursuit of enhanced
customer convenience
Loans
ALM operations and
liquidity management
Planning/Research
Customer transactions
Banking services
Front
Board of Directors
(Risk Management Committee)
Management Committee
(Market Risk Management)
Customer Order Flow
ALM Operations, etc.
Treasury
Unit
Audit Dept.
Middle
Back
Trading Dept.
Efficient operations based on customer
order flows and ALM hedging flows
Trading
Money/
Securities
Transactions
Credit Risk
Management
Dept.
Corporate
Risk
Management
Dept.
Capital
Markets
and
Treasury
Operations
Dept.
Interbank Market
45
Investment Banking Unit
Business Strategies
Group, which specializes in new business models. The Deriva-
tives and Financial Engineering Department offers currency
and interest rate derivatives at sharp prices, and expands
The Investment Banking Unit aims to rapidly provide sophisti-
our market of new products, led by weather and commodity
cated financial services to our customers and integrate SMBC’s
derivatives. The M&A Advisory Services Department is seizing
financial products, human and capital resources. Our organi-
an increasing number of opportunities in M&A activities,
zation makes it possible to develop advanced products and
brought about by progress in legislation facilitating company
services, and to contribute to the expansion of financial
reorganizations.
markets in Japan, including the syndicated loan market.
Key Points
1. Provide newly developed products to meet the demands
of our customers
2. Offer financial services through the global network of
the SMBC Group including Daiwa Securities SMBC
3. Expand the syndicated loan market
4. Make proposals related to customers’ IT-based business
models
5. Start defined contribution pension plan business
New Product Lineup
We provided financial services for
UNIVERSAL STUDIOS JAPANTM.
Photo courtesy of:
UNIVERSAL STUDIOS JAPANTM
& Universal Studios©
Daiwa Securities SMBC
In connection with the formation of SMBC, the wholesale
securities businesses of Sakura Bank and Sakura Securities
Co., Ltd., were combined with Daiwa Securities SB Capital
Markets Co. Ltd. The merged institution is now called Daiwa
Securities SMBC Co. Ltd. Daiwa Securities SMBC was origi-
nally established in April 1999 through an alliance between the
wholesale division of Daiwa Securities Co. Ltd. (now Daiwa
Securities Group Inc.) and Sumitomo Bank. In fiscal 2000,
Daiwa Securities SMBC was extremely successful, recording
¥123.6 billion in ordinary profit, a year-on-year increase of
nearly 70%. Daiwa Securities SMBC aims to be a top-notch
The Investment Banking Unit provides the best-suited products
investment bank that satisfies our institutional and corporate
to our customers through our global network. The Structured
clients’ diversified needs by making full use of long-developed
Finance Department develops advanced products concerned
know-how in product development and marketing. In addition
with the securitization business, non-recourse loans such as
to the traditional service of helping clients finance their oper-
real estate finance and project finance, and the leasing busi-
ations and improving the performance of their investments,
ness. Furthermore, the department features the New Products
Daiwa Securities SMBC will continue to improve its superior
services in new business areas, including securitization and
providing M&A advisory services.
46
Development of Debt
Capital Markets
Debt capital markets are a new finan-
■Investment Banking Unit Organization
Planning Dept., Investment Banking Unit
Structured Finance Credit Dept.
Asset Management Planning Dept., Investment Banking Unit
•Planning for investment banking services
•Inspection of investment banking transactions
•Planning for defined contribution pension funds, investment
management services
cial technique where traditional lend-
Structured Finance Dept.
ing business (financial intermediation)
Financial Solutions Dept., Investment Banking Unit
•Distribution, project finance, system finance, lease financing,
leveraged buyouts/management buyouts, non-recourse loans
•Provision of total solution services
is combined with loan asset trading
in the market. Syndicated loans are a
typical example, where a syndicate of
Derivatives and Financial Engineering Dept.
•Development and sales of derivatives
Syndications Dept.
•Syndicated loan origination and placements
Corporate Finance Services Dept.
•Private offerings
lenders extends a loan to a borrower
Domestic
M&A Advisory Services Dept.
•Mergers and acquisitions
under a single loan agreement. The
Syndications Department of SMBC is
actively marketing and arranging this
type of transaction to meet the
advanced fund raising requirements
of customers by providing them with
access to markets formed by various
types of financial institutions.
In line with promoting this type of
business, SMBC established the
Japan Syndication and Loan-trading
Association (JSLA) with other major
financial institutions in January 2001,
and was appointed to chair the asso-
ciation. Through the activities of the
e-Business, Media and Telecom Dept.
•Business support for IT related companies
Daiwa Securities SMBC Co. Ltd.
•Wholesale securities distribution
Sakura Friend Securities CO., LTD
Meiko National Securities Co., Ltd.
•Securities retailing (stock, securities, etc.)
DLJdirect SFG Securities Inc.
•Online securities retailing
Sakura Investment Management Co., Ltd.
Daiwa SB Investments Ltd.
•Investment advisory services, investment trust services
Japan Pension Navigator Co., Ltd.
•Consulting on and administration of defined contribution pension funds
Structured Finance Dept. (Americas, Europe and Asia)
•Project finance
Syndications Dept. (Americas, Europe and Asia)
•Syndication
Overseas
SMBC Capital Markets, Inc
SMBC Capital Markets Ltd.
SMBC Derivative Products Ltd.
•Derivatives dealing
SMBC Securities, Inc.
Overseas subsidiaries of Daiwa Securities SMBC Co. Ltd.
•Wholesale securities distribution
SMBC Leasing and Finance, Inc.
•Lease financing
association, SMBC leads the debt capital markets in Japan,
businesses. Our investment management services are led by
allowing us to meet the various demands of our customers
Daiwa SB Investments, Ltd., and Sakura Investment Manage-
through syndicated loans.
ment Co., Ltd., which have formed close alliances with leading
investment managers worldwide, such as T. Rowe Price, Alli-
Financial Solutions to Customers
ance Capital Management L.P. and State Street Bank and
The Financial Solutions Department, established within the
Trust. We are working with these companies to develop and
Structured Finance Department, maintains close contact with
offer investment trust products and manage the funds cus-
customers to meet their diversified demands and present
tomers entrust to us in the global securities markets. We
financial solutions. The e-Business, Media and Telecom Depart-
have been actively preparing for the defined contribution pen-
ment offers unique solutions to customers requiring special-
sion system that is expected to be introduced this autumn. In
ized knowledge in the IT field, with up-to-date information and
September 2000, we co-founded Japan Pension Navigator
global connections.
Co., Ltd., with six other financial companies in the Mitsui and
Sumitomo Groups, to offer consulting services related to this
Expanding Investment Management Services
new pension system in Japan.
SMBC is fully engaged in the investment trust, corporate
pension, public pension and defined contribution pension plan
47
The Group Company Networking Strategy
The SMBC Group, with SMBC at its core, is fostering
cooperation among the constituent subsidiaries and
affiliates to respond to increasingly diverse and
advanced customer needs with complete financial
solutions. Each Group member is highly specialized
in its field and has secured a prominent position in its
markets. We are striving to increase overall group
earnings by drawing on these qualities to maximum
effect and allocating resources to high-growth fields.
The Wakashio Bank, Ltd.
The Bank of Kansai, Ltd.
The Minato Bank, Limited
Commercial banking
QUOQ Inc.
Purchase of monetary assets and credit
guarantee
SMBC Loan Servicer Co., Ltd.
Asset management and collection
Sakura Guarantee Co., Ltd.
Sumigin Guarantee Company,
Limited
Credit guarantee
Consumer
Banking Unit
p.34
The Sakura Loan Partner, Ltd.
Loans
Sumitomo Mitsui Card Company, Ltd.
Sakura Card Co., Ltd.
Credit cards
The Japan Net Bank, Ltd.
Commercial banking via Internet
Daiwa Securities SMBC Co., Ltd.
Wholesale securities
Sakura Friend Securities CO., LTD.
Meiko National Securities Co., Ltd.
Securities
Sakura Investment Management Co., Ltd.
Daiwa SB Investments Ltd.
Investment advisory, investment trust management
Investment
Banking Unit
p.46
DLJdirect SFG Securities Inc.
On-line discount brokerage
SMBC Capital Markets, Inc.
SMBC Capital Markets Limited
Derivatives
The major Group companies are listed here.
For a more complete list, please see p.230.
48
48
SMBC Business Servicing Co., Ltd.
Asset management and collection
SMBC Capital Co., Ltd.
Venture capital
Japan Pension Navigator Co., Ltd.
Operation and administration of defined
contribution pension plans
Middle Market
Banking Unit
p.37
Sumitomo Mitsui
Banking Corporation
Sakura Factors Co., Ltd.
Sumigin General Finance Company, Limited
Mitsui Finance Service Co., Ltd.
Sakura Finance Service Co., Ltd.
Sakura Mortgage Co., Ltd.
Financial services for corporate customers
(including factoring and collection services)
Corporate
Banking Unit
p.40
SMBC Consulting Co., Ltd.
Consulting
The Japan Research Institute, Ltd.
Economic research and systems engineering
International
Banking Unit
p.42
SB Leasing Company, Limited
Sakura Leasing Co., Ltd.
Leasing
Treasury Unit
p.44
Sakura KCS Corporation
Sakura Information Systems Co., Ltd.
System development, data processing
Manufacturers Bank
Sumitomo Mitsui Banking Corporation of Canada
Banco Sumitomo Mitsui Brasileiro S.A.
PT Bank Sumitomo Mitsui Indonesia
Commercial banking
Sumitomo Mitsui Finance Australia Limited
Merchant banking
49
49
e-Business
e-Business Strategy
With advances in IT and the increasing popularity of the Internet
and mobile phones, the e-commerce market is expected to
expand from ¥23 trillion in fiscal 2000, to ¥124 trillion by
fiscal 2005. To respond quickly to this market growth and
the structural changes it is bringing about, we are deepening
our involvement in e-business.
Specifically, we are promoting our e-business operations
based on three guiding principles: providing financial services
suited to e-commerce, efficiently marketing the use of the
Internet and building new business models through alliances
■Overview of Financial Services for Companies
Buyer
Companies
e-marketplace
Commercial
Transaction
Data Link
Seller
Companies
Provision of financial intermediary
functions in support of the market
Sumitomo Mitsui Banking Corporation
(cid:0)
Provision of settlement services linked to the commercial
transactions on the electronic market
Complete B4MP
Electronic Authentication
Internet Credit Functions
Planned for Future Introduction
with companies in other industries.
NETdeBIZ.com
For the corporate market, we plan to offer settlement
In April 2000, in collaboration with leading companies in an
services linked to e-commerce and to work on services
array of industries, we launched a business support site for
connected with Internet-based credit extension and approval.
small and medium-sized businesses called NETdeBIZ.com.
For consumers, we are planning to provide new settlement
This site provides a range of solutions to small and medium-
services that are compatible with diverse channels and
sized businesses in such areas as strengthening involvement
introduce new marketing methods utilizing networks.
in Internet business, streamlining operations and refining wel-
fare activities. It also offers specialist information in subjects
Measures for Corporate Customers
including taxation, accounting and legal matters. We plan to
Complete/Banking Service for Market Place
use this site as an efficient marketing tool.
Rapidly rising corporate interest in Internet-based transactions
has led to the emergence of a large number of e-commerce
markets, or so-called e-marketplaces. To respond to the
settlement needs of an e-marketplace, we launched Complete,
Japan’s first settlement service linked to B2B e-commerce in
February 2001. In addition, as a financial service capable of
meeting even the most sophisticated demands, in May 2001
we began offering Banking Service for Market Place (B4MP).
Both services allow buyer companies to complete payments
via the Internet, rationalizing seller companies’ accounting
tasks through the elimination of paper invoices.
Using these services to satisfy diverse B2B financial needs,
we aim to diversify and strengthen settlement services on the
We jointly operate this portal site with The Sumitomo Marine & Fire
Insurance Co., Ltd., The Sumitomo Trust & Banking Co., Ltd., Sumitomo
Life Insurance Company, and NEC Corporation
Internet and upgrade such functions as electronic approval
and Internet-based credit.
50
Initiatives for Consumers
NetDebit/ShoppingSquare
have been conducting a monitored trial service since March 2001
with convenience store operator am/pm Japan, with which we
Since November 2000 we have been offering NetDebit, a
have formed an alliance in the development of @B∧NK.
new Internet settlement service. NetDebit is a service that
enables real-time debits from a bank account for Internet
Money Park
shopping payments.
In June 2000, in collaboration with leading financial compa-
To make online shopping more convenient for users, we have
nies, we launched a comprehensive financial portal site for
started a linked site that brings together NetDebit member
consumers called Money Park. This site aims to be the one-
stores. This site is called ShoppingSquare.
stop provider of private banking service information for each
In developing NetDebit, we are demonstrating the Group’s
company involved. It also provides the My Financial service to
overall strength through a partnership with Sumitomo Mitsui
members, enabling customized management of their financial
Card Co., Ltd., while encouraging other financial institutions,
asset portfolio. We will continue to add highly convenient
such as Japan Net Bank, to provide services and aim for stan-
functions that we will leverage as new marketing tools for
dardization in Japan.
consumers.
Prepaid Electronic Money Service (Edy!)
We plan to become involved in business applications for the
prepaid electronic money service Edy!, which boasts consid-
erable promise as a next-generation settlement service. Edy!,
the e-money on which we are currently working, enables quick
and easy payments through high-speed data processing with
a contactless IC card and its reader/writer terminals. Since
the chip runs through wireless data communication, it can be
built into not only cards but also any shaped object. In the fu-
ture, it will be possible to incorporate this e-money service into
mobile phones and other mobile devices.
We are looking at providing Edy! to convenience stores,
fast food restaurant chains and other outlets that have de-
We jointly operate this portal site with Nomura Securities Co., Ltd., Japan
Life Insurance Co., Mitsui Marine & Fire Insurance Co., Ltd., Chuo Mitsui
Trust and Banking Co., Ltd., and Mitsui & Co.
mand for small sum payments. And we plan to deploy the pro-
Broadcast Satellite TV Banking
cessing ability of IC cards in combination with point programs
In December 2000 we launched Japan’s first TV banking
and other initiatives for use in marketing.
service utilizing the digital broadcasting service via the broad-
Aiming to be the first bank to provide an e-money service, we
cast satellite system. And we plan to provide a similar service
compatible with the 110-degree digital broadcasting service
scheduled to begin at the end of 2001 via the communications
satellite system.
With the digitization of broadcasting and the addition of
interactive functions, television is set to evolve into a new
networking medium. We intend to use television, along with
next-generation mobile phones and other broadband networks,
to provide more convenient private banking services.
51
Social Contribution
Activities under the Leadership of
the Corporate Citizenship Department
Aiming to be a bank that develops in harmony with its customers
and society, SMBC is engaged in a number of activities that aid
society. These activities encompass the three key areas of wel-
fare, contributing to the regional community and international
cooperation.
Activities are conducted under the leadership of the Corporate
Citizenship Department within our Public Relations Department.
This office operates by giving consideration to the aspects of
continuity, the characteristics of our Bank and the development
of human resources, and creates a corporate foundation that
enables employees to engage in socially beneficial activities.
Social Contribution Activities
Cooperation with the Small Kindness Movement
As a participating member, we take part in the Japanese
Islands Clean Campaign and collect voluntary contributions
from the Bank’s personnel.
Cooperation with the NHK Year-End Charity Campaign
We cooperate in the NHK Year-End Charity Campaign held in Decem-
ber each year, focusing on the Central Community Chest of Japan.
We also collect voluntary contributions from the Bank’s personnel.
Contributing to the Local Community
SMBC actively participates in regional events, cooperates in
promoting local art and culture and otherwise contributes to
local communities.
Promenade Concert
We used the lobby of the Kobe Main
Office to hold a classical concert
and a performance of Beethoven’s
Ninth Symphony to coincide with the
Kobe Festival in July and Kobe
Luminarie in December last year.
Money Museum
We have a permanent coin collection
on display in the Kobe Head Office
building, which we open to the gen-
eral public. The collection displays in
chronological order ancient Japanese coins and other coins of
interest, including foreign coins as well as commemorative
coins from Japan and abroad.
Promenade Concert
(held in December 2000)
Kyoto Cultural Properties Exhibition Room
We have set up the Kyoto Cultural Properties Exhibition Room
in our Kyoto Branch building, which is open to the general pub-
lic. The permanent display includes cultural treasures from the
Yayoi Period to the Edo Period, as well as information on the
ethnic cultural assets of the Gion Festival.
International Cooperation
SMBC Volunteer Fund
We set up a fund with the aim of making donations to Japanese
and foreign volunteer organizations that provide assistance in
the event of disasters or economic difficulties.
In fiscal 2000 we made donations to four groups and coun-
tries. For example, our donation to Malaysia enabled the
purchase of vans for orphanage schoolchildren, while our
contribution to China financed repairs at a junior high school.
Support for UNICEF
We have been a key promoter of UNICEF Coin Aid, a foreign-
coin collection program. We place collection boxes in all our
branches. In cooperation with our Group companies, we also
sort the collected coins by currency. The cumulative weight
of the collection to March 2001 was approximately 41 tons
(equivalent to approximately ¥260 million).
Moreover, every year we purchase UNICEF greetings cards,
with half of the purchase price going to fund UNICEF activities,
and send the cards to customers. In addition, some branches
handle accounts in which total interest after tax on ordinary
deposits is donated to UNICEF.
Donation of Second-Hand Clothing to African Countries
We ask the Bank’s personnel to provide second-hand clothing
and daily necessities, which we then donate to the Republic
of Mali and other African countries via Motherland Academy
International, a nongovernment organization.
Support for Kids Earth Fund
We design calendars using pictures of children from all over
the world gathered by the Kids Earth Fund, a nonprofit
organization that supports needy children. Part of the cost of
the calendars is donated to the fund.
SMBC Global Foundation
The SMBC Global Foundation was established with an aim of
providing scholarships to Asian university students. The foun-
dation subsidizes more than 2,600 students, in Thailand,
China, Indonesia and Singapore, and is planning to expand its
activities into other areas in the future.
SMBC Foundation
The SMBC Foundation was founded to develop human resources
to contribute to the economic development of developing re-
gions and international exchange. In addition to holding interna-
tional seminars and business seminars each year, the foundation
also provides scholarships for foreign Asian students and
subsidizes development aid organizations.
Support for Employees’ Volunteer Activities
We use our internal electronic network to transmit volunteer
information to employees and actively support participation in
volunteer organizations. We are expanding the sphere of volun-
teer activities by holding regular sign language courses and
internally recruiting volunteer staff to promote the planning of
volunteer activities.
52
In addition, to promote specific measures in the course of our
daily business, EMS seeks to achieve continuous improvement
through a cycle of planning, implementation, evaluation and
review. The principal results of the EMS in the past fiscal year
are described below. These results are the achievements of
the former Sakura Bank.
Paper waste recycling
(Fiscal 2000 results at our Toda Recycling Center)
• Quantity recycled
• Recycling ratio
1,275 tons
88.03%
Using recycled paper
• Using a ratio of 41.5% recycled paper in advertising materi-
als (representing a 5.4% improvement on the previous term)
• Promoting the use of recycled paper for business cards,
copier paper and other uses
Reducing paper use
• Promoting a choice in output of ATM transaction statements
so that customers can choose whether or not they need a
statement
• Promoting a shift to electronic processing of transfer trans-
actions through the use of IT and reducing the use of fax
paper
In fiscal 2000, the Toda Recycling Center earned special
recognition for its achievements in promoting the reuse of
paper. We were the only financial institution to be awarded the
Chairman’s Prize by the Recycling Promotion Association,
which has the backing of the Prime Minister’s Office.
Based on our goal to be a good corporate citizen, we intend
to continue working to strengthen our EMS. Through these
activities, we will channel our efforts into preserving the global
environment, improving social credibility and reducing the
economic risks that arise from environmental problems.
Environmental Preservation
Environmental Management
The Bank is demonstrating a comprehensive commitment to
preserving the environment. For example, we have acquired
ISO 14001 certification for our environmental management
system (EMS), established an internal Environment Committee
and a director responsible for environmental affairs. We have
also enacted an environmental policy and set up the Corporate
Citizenship Department within the Public Relations Department.
As a financial institution, we have classified our efforts to
address environmental concerns into three main categories:
social responsibility (reducing the impact on the environment in
our day-to-day operations), measures to address environmental
risks and customer support. Below, we describe our specific
activities in each of these areas.
Social Responsibility
• Reducing waste materials and promoting recycling
• Reducing the quantity of paper used, conserving water and
encouraging energy savings
• Using recycled paper
• Tackling environmental issues and promoting a strong aware-
ness of the environment through internal education, including
the production of videos
(cid:0)
Measures to Address Environmental Risks
• Stipulating in our Credit Policy that “we shall not extend credit
for projects that would have a grossly adverse effect on the
environment.”
Customer Support
• Introducing environment consult-
ants through a tie-up with SMBC
Consulting Co., Ltd.
• Providing information through
the environmental information
magazine SAFE (published every
other month)
• Providing information on finance
for environmental measures
53
Corporate History
1876
1893
1895
1909
1912
1936
1940
1943
1944
1945
Mitsui Bank is established as a private bank.
Mitsui Bank reorganizes itself as an unlimited partnership.
Sumitomo Bank is established as a private enterprise.
Mitsui Bank reorganizes into a limited company.
Sumitomo Bank reorganizes into a limited company.
The seven major banks of Hyogo Prefecture are merged into Kobe Bank.
Dai Nihon Mujin is established.
Mitsui Bank merges with Dai-Ichi Bank to form Teikoku Bank.
Teikoku Bank merges with Jugo Bank.
Sumitomo Bank merges with Hannan and Ikeda Jitsugyo Banks.
Kobe Bank begins trust business.
1948
Dai Nihon Mujin is renamed Nihon Mujin.
Teikoku Bank is re-established by Dai-Ichi Bank’s separation.
Sumitomo Bank is renamed Osaka Bank.
1949
Teikoku Bank’s shares become listed on the Tokyo and Osaka stock exchanges.
Osaka Bank’s shares become listed on the Tokyo and Osaka stock exchanges.
Nihon Mujin is renamed Nihon Sogo Bank.
Osaka Bank’s name is restored to Sumitomo Bank.
Teikoku Bank’s name is restored to Mitsui Bank.
Kobe Bank’s trust division is transferred to Toyo Trust and Banking.
Sumitomo Bank merges with Kawachi Bank.
Mitsui Bank merges with Toto Bank.
Nihon Sogo Bank converts to an ordinary bank and is renamed Taiyo Bank.
Kobe Bank and Taiyo Bank merge to form Taiyo Kobe Bank.
Sumitomo Bank merges with Heiwa Sogo Bank.
Mitsui Bank and Taiyo Kobe Bank merge to form Mitsui Taiyo Kobe Bank.
Mitsui Taiyo Kobe Bank is renamed Sakura Bank.
Sakura Bank and Sumitomo Bank develop a strategic alliance leading to future integration of the two banks.
Sakura Bank and Sumitomo Bank merge to form Sumitomo Mitsui Banking Corporation.
1951
1952
1954
1960
1965
1968
1973
1986
1990
1992
1999
2001
54
Financial Data
Consolidated Financial Review
Nonconsolidated Financial Review
Total Combined Figures of the Former Sakura Bank and Sumitomo Bank
Formerly The Sakura Bank, Limited and Subsidiaries
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Retained Earnings
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Certified Public Accountants’ Report
Nonconsolidated Balance Sheets
Nonconsolidated Statements of Income
Formerly The Sumitomo Bank, Limited and Subsidiaries
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Stockholders’ Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Report of Independent Public Accountants
Summary of Significant Differences Between Japanese GAAP and U.S. GAAP
Supplemental Data (Consolidated)
Income Analysis
Deposits
Loans
Securities
Trading Assets and Liabilities
Supplemental Data (Nonconsolidated)
Income Analysis
Deposits
Loans
Securities
Capital Ratio
Ratios
Capital
Others
56
62
68
71
72
73
74
75
106
107
108
110
111
112
113
116
156
157
160
166
166
168
170
172
182
188
198
204
206
210
220
55
Consolidated Financial Review
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited) and Subsidiaries
1. Financial Results
Consolidated operating results for fiscal 2000, ended March 31,
2001, include the Sakura Bank, Limited (the “Bank”), 65 consoli-
dated subsidiaries (39 domestic and 26 overseas) and 12
affiliates that are accounted for using the equity method (four
domestic and eight overseas). Compared with fiscal 1999, 14
more consolidated subsidiaries and 20 fewer affiliates
accounted for by the equity method are included.
With regard to deposits (excluding negotiable certificates of
deposit), the fiscal year-end balance was ¥32,004.0 billion,
¥1,778.0 billion greater than the previous fiscal year. Loans and
bills discounted amounted to ¥32,906.7 billion, an increase of
¥573.5 billion, and securities increased ¥3,537.8 billion, to
¥10,466.5 billion.
As a result, total assets increased ¥3,354.1 billion from the
In fiscal 2000, consolidated gross profit increased ¥65.2
previous fiscal year, to ¥51,849.7 billion.
billion from fiscal 1999, to ¥886.3 billion. After adjustments
such as general and administrative expenses and total credit
costs, operating profit increased ¥47.4 billion, to ¥183.9 billion.
Net income, the amount after adjusting operating profit for extra-
ordinary gains (losses), income taxes, and minority interests in
net income, decreased ¥13.7 billion, to ¥48.9 billion.
Foreign currency translation adjustments arising from cur-
rency translation of financial statements of overseas subsidiaries
had been recognized as assets or liabilities, but from this fiscal
year they are reported as stockholders’ equity and minority
interests due to a revision of accounting standards for foreign
currency transactions. As a result, stockholders’ equity
decreased ¥20.9 billion.
Number of Consolidated Subsidiaries and Affiliates Accounted for by the Equity Method
March 31
Consolidated subsidiaries
Subsidiaries and affiliates accounted for by the equity method
2001
65
12
2000
51
32
Income Summary
Years ended March 31
Consolidated gross profit
Net interest income
Net fees and commissions
Net trading income
Net other operating income
General and administrative expenses
Total credit cost
Write-off of loans
Transfer to specific reserve
Transfer to general reserve for possible loan losses
Other
Gains (losses) on stocks
Net income (loss) from nonconsolidated entities by the equity method
Other income (expenses)
Operating profit
Extraordinary gains (losses)
Income before income taxes and minority interests
Income taxes, current
Income taxes, deferred
Minority interests in net income
Net Income
2001
¥)886.3
670.0
147.4
26.8
42.1
¥)490.6
346.6
257.8
83.7
(70.8)
75.9
¥0)73.5
7.9
53.4
¥)183.9
(51.8)
132.0
8.1
69.9
(5.1)
48.9
Billions of yen
2000
¥)821.1
653.4
119.8
16.5
31.4
¥)487.5
526.7
146.4
238.4
(11.7)
153.6
¥)342.9
(1.5)
(11.9)
¥)136.5
(10.4)
126.1
7.8
74.2
18.5
62.6
Increase/
decrease
14
(20)
Increase/
decrease
¥)065.2
16.6
27.6
10.3
10.7
¥)003.1
(180.1)
111.4
(154.7)
(59.1)
(77.7)
¥(269.4)
9.4
65.3
¥)047.4
(41.4)
5.9
0.3
(4.3)
(23.6)
(13.7)
Note: Consolidated gross profit = (Interest income – Interest expenses) + (Fees and commissions (income) – Fees and commissions (expenses)) + (Trading
profits – Trading losses) + (Other operating income – Other operating expenses)
56
Consolidated Financial Review
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited) and Subsidiaries
1. Financial Results
Consolidated operating results for fiscal 2000, ended March 31,
2001, include the Sumitomo Bank, Limited (the “Bank”), 84 con-
solidated subsidiaries (52 domestic and 32 overseas) and 29
affiliates that are accounted for using the equity method (eight
domestic and 21 overseas). Compared with fiscal 1999, nine
more consolidated subsidiaries and nine fewer affiliates
accounted for by the equity method are included.
In fiscal 2000, consolidated gross profit increased ¥25.9
billion from fiscal 1999, to ¥951.6 billion. After adjustments
such as general and administrative expenses and total credit
costs, operating profit increased ¥73.4 billion, to ¥310.7 billion.
Net income, the amount after adjusting operating profit for
extraordinary gains (losses), income taxes, and minority inter-
ests in net income, increased ¥21.6 billion, to ¥83.5 billion.
With regard to deposits, the fiscal year-end balance was
¥31,045.1 billion, ¥2,683.0 billion greater than the previous
fiscal year. Loans and bills discounted amounted to ¥32,630.4
billion, a decrease of ¥310.5 billion, and securities increased
¥7,877.1 billion, to ¥16,846.0 billion.
As a result, total assets increased ¥13,625.5 billion from
the previous fiscal year, to ¥67,393.0 billion.
Foreign currency translation adjustments arising from cur-
rency translation of financial statements of overseas subsidiaries
had been recognized as assets or liabilities, but from this fiscal
year they are reported as stockholders’ equity and minority
interests due to a revision of accounting standards for foreign
currency transactions. As a result, stockholders’ equity
decreased ¥32.2 billion.
Number of Consolidated Subsidiaries and Affiliates Accounted for by the Equity Method
March 31
Consolidated subsidiaries
Affiliates accounted for by the equity method
Income Summary
Years ended March 31
Consolidated gross profit
Net interest income
Net fees and commissions
Net trading income
Net other operating income
General and administrative expenses
Total credit cost
Write-off of loans
Transfer to specific reserve
Transfer to general reserve for possible loan losses
Other
Gains (losses) on stocks
Net income (loss) from nonconsolidated entities by the equity method
Other income (expenses)
Operating profit
Extraordinary gains (losses)
Income before income taxes and minority interests
Income taxes, current
Income taxes, deferred
Minority interests in net income
Net Income
2001
84
29
2000
75
38
2001
¥)951.6
653.5
168.9
82.2
46.9
¥)450.3
646.3
556.7
174.8
(138.7)
53.5
¥)395.0
36.5
24.3
¥)310.7
(37.3)
273.5
57.4
128.3
(4.2)
83.5
Billions of yen
2000
¥)925.7
653.7
145.9
46.9
79.2
¥)466.1
733.5
439.1
219.1
29.2
46.0
¥)515.6
(35.5)
31.2
¥)237.3
(20.8)
216.5
50.8
96.4
(7.4)
61.9
Increase/
decrease
9
(9)
Increase/
decrease
¥)025.9
(0.2)
23.0
35.3
(32.3)
¥0(15.8)
(87.2)
117.6
(44.3)
(167.9)
7.5
¥(120.6)
72.0
(6.9)
¥)073.4
(16.5)
57.0
6.6
31.9
3.2
21.6
Note: Consolidated gross profit = (Interest income – Interest expenses) + (Fees and commissions (income) – Fees and commissions (expenses)) + (Trading
profits – Trading losses) + (Other operating income – Other operating expenses)
57
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited) and Subsidiaries
Assets, Liabilities and Stockholders’ Equity
March 31
Assets
Loans and bills discounted
Securities
Foreign currency translation adjustments
Liabilities
Deposits (excluding negotiable certificates of deposit)
Minority interests
Stockholders’ equity
Foreign currency translation adjustments
Billions of yen
2001
2000
¥51,849.7
32,906.7
10,466.5
./
49,290.0
32,004.0
383.9
2,175.8
(20.9)
¥48,495.6
32,333.2
6,928.7
30.6
45,967.8
30,226.0
319.2
2,208.6
./
Increase/
decrease
¥3,354.1
573.5
3,537.8
(30.6)
3,322.2
1,778.0
64.7
(32.8)
(20.9)
2. Unrealized Gains (Losses) on Securities (Before Adjustments for the Merger Accounting)
With the adoption of a new accounting standard for financial
instruments from fiscal 2000 in Japan, securities in consolidated
financial statements have been classified by the purpose for
which they are held. The classifications are: ‘trading securities,’
‘held-to-maturity securities’ and ‘other securities.’
‘Trading securities’ are reported at fair value on the consoli-
dated balance sheet with unrealized holding gains and losses
reported as part of net income. Securities classified as ‘held-to-
maturity securities’ and ‘other securities’ are carried either at
acquisition cost or at amortized cost and are reported on the
consolidated balance sheet. Effective fiscal 2001, ‘other securi-
ties’ will be reported at fair value on the consolidated balance
sheet with the difference between the fair value and acquisition
cost reported on a net-of-tax basis, as ‘net unrealized gains
(losses) on valuation’, which is a component of stockholders’
equity.
Net unrealized gains (losses) on ‘held-to-maturity securities’
and ‘other securities’ are as shown in the table below. The mar-
ket value of stocks held by the bank in ‘other securities’ is based
on average market prices in the one month before the fiscal
year-end.
Net unrealized gains (losses) on securities at the end of
fiscal 2000 amounted to a net loss of ¥352.8 billion, a decrease
of about one trillion yen compared to the previous fiscal year,
reflecting the large decline in stock prices. At the time of the
merger, all of gross unrealized losses on ‘other securities’
(including ‘other money held in trust’) held by the former Sakura
Bank were disposed of and the net unrealized gains were trans-
ferred to Sumitomo Mitsui Banking Corporation. (For details of
the transfer of unrealized gains (losses) on securities at the time
of the merger, see 1. Adjustments for Merger Accounting
[SMBC’s Unrealized Gains (Losses) (Nonconsolidated)] on
page 68.)
Unrealized Gains (Losses) on Securities (Before Adjustments for the Merger Accounting)
March 31
Held-to-maturity securities
Other securities
Stocks
Bonds
Others
Total
Stocks
Bonds
Others
2001
Billions of yen
Net unrealized
gains (losses)
(a)
¥(000.0
(352.8)
(361.2)
24.7
(16.4)
(352.8)
(361.2)
24.7
(16.4)
(a) – (b)
./
./
./
./
./
¥(1,007.6)
(1,041.7)
51.4
(17.4)
Unrealized
gains
Unrealized
losses
Net unrealized
gains (losses)
(b)
¥(000.0
170.5
139.2
27.7
3.6
170.5
139.2
27.7
3.6
¥00(0.0)
(523.4)
(500.4)
(3.0)
(19.9)
(523.4)
(500.4)
(3.0)
(19.9)
./
./
./
./
./
¥654.8
680.5
(26.7)
1.0
2000
Unrealized
gains
./
./
./
./
./
¥1,109.5
1,083.3
8.8
17.3
Unrealized
losses
./
./
./
./
./
¥(454.7)
(402.8)
(35.5)
(16.3)
Notes: 1. Fair value is calculated by using the average market price in one month before the fiscal year-end as for the Bank’s stocks and by using the mar-
ket price at the fiscal year-end as for the others.
2. The amount equivalent to net unrealized gains (losses) on ‘other securities’ (including ‘other money held in trust’) was a net loss of ¥212.1 billion
at the fiscal year-end.
58
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited) and Subsidiaries
Assets, Liabilities and Stockholders’ Equity
March 31
Assets
Loans and bills discounted
Securities
Foreign currency translation adjustments
Liabilities
Deposits (excluding negotiable certificates of deposit)
Minority interests
Stockholders’ equity
Foreign currency translation adjustments
Billions of yen
2001
2000
¥67,393.0
32,630.4
16,846.0
./
64,949.1
31,045.1
606.7
1,837.2
(32.2)
¥53,767.5
32,940.9
8,968.9
68.7
51,383.8
28,362.1
579.4
1,804.4
./
Increase/
decrease
¥13,625.5
(310.5)
7,877.1
(68.7)
13,565.3
2,683.0
27.3
32.8
(32.2)
2. Unrealized Gains (Losses) on Securities (Before Adjustments for the Merger Accounting)
With the adoption of a new accounting standard for financial
instruments from fiscal 2000 in Japan, securities in consolidated
financial statements have been classified by the purpose for
which they are held. The classifications are: ‘trading securities,’
‘held-to-maturity securities’ and ‘other securities.’
‘Trading securities’ are reported at fair value on the consoli-
dated balance sheet with unrealized holding gains and losses
reported as part of net income. Securities classified as ‘held-to-
maturity securities’ and ‘other securities’ are carried either at
acquisition cost or at amortized cost and are reported on the
consolidated balance sheet. Effective fiscal 2001, ‘other securi-
ties’ will be reported at fair value on the consolidated balance
sheet with the difference between the fair value and acquisition
cost reported on a net-of-tax basis, as ‘net unrealized gains
(losses) on valuation,’ which is a component of stockholders’
equity.
Net unrealized gains (losses) on ‘held-to-maturity securities’
and ‘other securities’ are as shown in the table below. The mar-
ket value of stocks held by the bank in ‘other securities’ is based
on average market prices in the one month before the fiscal
year-end.
Net unrealized gains (losses) on securities at the end of
fiscal 2000 showed a net gain. This was because an unrealized
loss of about one trillion yen from the end of the previous fiscal
year due to the large decline in stock prices, was offset by a
gain on valuation of foreign stocks, Japanese government bonds
and other bonds held by subsidiaries.
(For details of the transfer of unrealized gains (losses) on
securities at the time of the merger, see 1. Adjustments for
Merger Accounting [SMBC’s Unrealized Gains (Losses)
(Nonconsolidated)] on page 68.)
Unrealized Gains (Losses) on Securities (Before Adjustments for the Merger Accounting)
March 31
Held-to-maturity securities
Other securities
Stocks
Bonds
Others
Total
Stocks
Bonds
Others
2001
Billions of yen
Net unrealized
gains (losses)
(a)
¥00(0.1)
51.7
(156.5)
83.1
125.1
51.7
(156.5)
83.1
125.1
(a) – (b)
./
./
./
./
./
¥(1,127.8)
(1,071.2)
83.9
(140.4)
Unrealized
gains
¥000.0
387.7
166.7
85.9
135.1
387.8
166.7
85.9
135.2
Unrealized
losses
¥00(0.1)
(336.0)
(323.2)
(2.8)
(10.0)
(336.1)
(323.2)
(2.8)
(10.1)
Net unrealized
gains (losses)
(b)
./
./
./
./
./
¥1,179.5
914.7
(0.8)
265.5
2000
Unrealized
gains
./
./
./
./
./
¥1,553.7
1,242.3
34.2
277.3
Unrealized
losses
./
./
./
./
./
¥(374.3)
(327.5)
(35.0)
(11.8)
Notes: 1. The figures above include unrealized gains (losses) on negotiable certificates of deposit in ‘cash and due from banks’ and commercial papers as
well as claims on loan trust in ‘commercial paper and other debt purchased.’ Net unrealized gain as well as unrealized gain on them was ¥0.1
billion.
2. Fair value is calculated by using the market price at the fiscal year-end as for bonds and others, and by using the average market price in the
one month before the fiscal year-end as for stocks.
3. The amount equivalent to net unrealized gains (losses) on ‘other securities’ (including ‘other money held in trust’) was a net gain of ¥27.6 billion
at the fiscal year-end.
59
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited) and Subsidiaries
3. Capital Ratio (BIS Guidelines)
The Bank’s capital ratio (BIS Guidelines) decreased 1.22% from
the end of the previous term, to 11.31%.
Total capital, which constitutes the numerator in the capital
ratio calculation equation, decreased ¥266.6 billion from the
previous fiscal year, to ¥3,834.3 billion, mainly because the
balance of qualifying subordinated debt was reduced as part of
initiatives to lower costs of capital. The denominator, risk-
adjusted assets, increased ¥1,169.8 billion, to ¥33,891.4
Consolidated Capital Ratio
March 31
Tier I capital:
Tier II capital:
Common stockholders’ equity
Minority interests
Subtotal (A)
45% of unrealized gains on land
General reserve for possible loan losses
Qualifying subordinated debt
Subtotal
billion, owing to several factors including an increase in the
number of consolidated companies and the translation effect of
a weaker yen.
In fiscal 2000, Sakura Bank did not mark ‘other securities’ to
market. Consequently, total capital of the Bank does not take
into consideration unrealized gains (losses) on valuation of ‘other
securities.’
Billions of yen
2001
2000
1999
¥02,112.5
383.9
¥02,121.4
319.2
¥02,093.3
303.6
¥02,496.4
¥02,440.6
¥02,396.8
¥00,046.7
163.2
1,141.8
¥00,351.7
227.3
1,382.2
¥00,053.2
242.7
1,428.9
¥01,351.6
¥01,661.3
¥01,724.8
Tier II capital included as qualifying capital (B)
¥01,351.6
¥01,661.3
¥01,724.8
Deductions:
Total capital:
Risk-adjusted assets:
(C)
(A) + (B) – (C) = (D)
On-balance-sheet
Off-balance-sheet
Asset equivalent of market risk
Subtotal (E)
¥00,013.8
¥03,834.3
¥31,812.6
1,924.7
154.1
¥00,391.0
¥04,100.9
¥30,676.7
1,824.2
220.7
¥00,391.0
¥04,120.6
¥30,629.5
2,518.1
251.7
¥33,891.4
¥32,721.6
¥33,399.3
Capital ratio (BIS guidelines) = (D) / (E) x 100
11.31%
12.53%
12.33%
60
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited) and Subsidiaries
3. Capital Ratio (BIS Guidelines)
The Bank’s capital ratio (BIS Guidelines) decreased 0.66% from
the end of the previous term, to 10.94%.
Total capital, which serves as the numerator in the capital
ratio calculation equation, decreased ¥198.3 billion from the
end of the previous fiscal year, to ¥4,150.0 billion. Contributing
factors include the fact that from fiscal 2000 investments in
affiliates engaged in finance business are taken as items for
deductions and that the general reserve for possible loan losses
included in Tier 2 capital is decreased. The denominator, risk-
adjusted assets, increased ¥448.5 billion, to ¥37,925.2 billion,
owing to factors including the translation effect of a weaker yen.
In fiscal 2000, Sumitomo Bank did not mark ‘other securi-
ties’ to market. Consequently, total capital of the Bank does not
take into consideration unrealized gains (losses) on valuation of
‘other securities.’
Consolidated Capital Ratio
March 31
Tier I capital:
Tier II capital:
Common stockholders’ equity
Minority interests
Subtotal (A)
45% of unrealized gains on land
General reserve for possible loan losses
Qualifying subordinated debt
Subtotal
Billions of yen
2001
2000
1999
¥01,652.1
606.1
¥01,625.0
578.9
¥01,582.4
597.8
¥02,258.3
¥02,203.9
¥02,180.2
¥00,122.2
232.7
1,653.2
¥00,126.1
365.4
1,652.9
¥00,128.6
348.1
1,625.4
¥02,008.1
¥02,144.4
¥02,102.0
Tier II capital included as qualifying capital (B)
¥01,995.4
¥02,144.4
¥02,102.0
Deductions:
Total capital:
Risk-adjusted assets:
(C)
(A) + (B) – (C) = (D)
On-balance-sheet
Off-balance-sheet
Asset equivalent of market risk
Subtotal (E)
¥00,103.6
¥04,150.0
¥34,609.0
3,096.3
219.9
¥00,000— ¥00,039—
¥04,282.3
¥04,348.3
¥35,546.5
¥34,744.7
3,180.3
2,510.9
357.1
221.1
¥37,925.2
¥37,476.7
¥39,083.9
Capital ratio (BIS guidelines) = (D) / (E) x 100
10.94%
11.60%
10.95%
61
Nonconsolidated Financial Review
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited)
1. Operating Results
As a result of an ¥18.5 billion increase in gross banking profit
and a ¥23.5 billion decrease in expenses (excluding non-
recurring losses) and bond issue costs, banking profit (excluding
transfer to general reserve for possible loan losses) increased
¥41.9 billion from fiscal 1999, to ¥355.4 billion in fiscal 2000,
ended March 31, 2001.
Operating profit, which is computed by adjusting banking
profit by non-recurring gains (losses) such as total credit cost
and gains (losses) on stocks, was ¥190.7 billion. Total credit
cost, including transfer to general reserve for possible loan
losses, was ¥261.1 billion. This was brought about by factors
involving the continued worsening of corporate financial results
amid the prolonged economic recession, the continued deteriora-
tion of assets as collateral and acceleration in the disposal of
problem assets in advance of the merger. Gains (losses) on
2. Income Analysis
Gross Banking Profit
Gross banking profit increased ¥18.5 billion from the previous
fiscal year, to ¥730.4 billion. This was largely because domestic
net fees and commissions rose ¥6.7 billion, due to an increase
in income from investment trust sales commissions, and
because international net trading income increased ¥10.1
billion, primarily attributable to improved profit on dealing.
Expenses
Expenses (excluding non-recurring losses) decreased ¥22.8
billion from the previous fiscal year, to ¥375.0 billion. This was
mainly due to a wide-ranging and drastic cost review that
stocks decreased ¥290.3 billion from the previous year to ¥51.5
billion.
Net income, after adjustments for operating profit, extra-
ordinary gains (losses) and income taxes, increased ¥25.1 billion
from the previous fiscal year, to ¥82.2 billion. Net income was
¥108.5 billion lower than operating profit, mainly because ¥36.4
billion was appropriated for amortization of net transition obliga-
tion from initial application of the new accounting standard for
employee retirement benefits, and because ¥55.1 billion was
recognized as ‘income taxes, deferred’ under tax-effect account-
ing. In particular, a ¥5.6 billion reduction in deferred tax assets
was associated with the lowering of the effective statutory tax
rate, affected by the establishment of the Osaka Prefectural
Government’s ordinance concerning the special treatment for the
standard of enterprise taxes to the banking industry.
resulted in a ¥15.1 billion reduction in non-personnel expenses,
fully absorbing merger-related costs. It was also due to the ¥6.1
billion decrease in personnel expenses resulting from the
reduction in the number of employees.
Banking Profit
As a result of the above, fiscal 2000 banking profit (excluding
transfer to general reserve for possible loan losses) increased
¥41.9 billion from the previous fiscal year, to ¥355.4 billion. With
a ¥56.0 billion reversal of the general reserve for possible loan
losses, banking profit (including transfer to general reserve for
possible loan losses) increased ¥83.3 billion, to ¥411.4 billion.
Banking Profit
Years ended March 31
Gross banking profit
Gross banking profit (excluding net gains (losses) on bonds)
Net interest income
Net fees and commissions
Net trading income
Net other operating income
Gross domestic banking profit
Gross international banking profit
Transfer to general reserve for possible loan losses
Bond issue costs
Expenses (excluding non-recurring losses)
Personnel expenses
Non-personnel expenses
Taxes
Banking profit
Banking profit (excluding transfer to general reserve for possible loan losses)
Banking profit (excluding transfer to general reserve for possible loan losses
and net gains (losses) on bonds)
62
Billions of yen
2000
¥711.9
709.4
609.3
60.1
8.1
34.4
665.6
46.3
¥,(14.6)
0.7
397.8
161.7
216.1
19.9
¥328.1
313.5
2001
¥730.4
722.4
598.7
69.3
20.8
41.6
676.3
54.1
¥,(56.0)
—
375.0
155.6
201.0
18.3
¥411.4
355.4
Increase/
decrease
¥)18.5
13.0
(10.6)
9.2
12.7
7.2
10.7
7.8
¥(41.4)
(0.7)
(22.8)
(6.1)
(15.1)
(1.6)
¥)83.3
41.9
347.5
311.0
36.5
Nonconsolidated Financial Review
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited)
1. Operating Results
As a result of a ¥50.2 billion increase in gross banking profit and
an ¥8.0 billion decrease in expenses (excluding non-recurring
losses) and bond issue costs, banking profit (excluding transfer
to general reserve for possible loan losses) increased ¥58.3
billion from fiscal 1999, to ¥447.7 billion in fiscal 2000, ended
March 31, 2001.
Operating profit, which is computed by adjusting banking
profit by non-recurring gains (losses) such as total credit cost
and gains (losses) on stocks, was ¥168.4 billion. Total credit
cost, including transfer to general reserve for possible loan
losses, amounted to ¥558.0 billion. It is partly because loan
forgiveness in favor of borrowers increased, and partly because
provision for workout of problem assets in the next couple of
fiscal years was reserved, and also because asset qualities and
collateral values deteriorated more seriously than expected.
2. Income Analysis
Gross Banking Profit
Gross banking profit increased ¥50.2 billion from the previous
fiscal year, to ¥772.8 billion. This was largely because domestic
net fees and commissions rose ¥6.2 billion, due to increased earn-
ings generated from electronic banking and exchange transac-
tions. It also reflected a ¥7.1 billion increase in net gains on bonds
in other operating income. Moreover, international net interest
income increased ¥33.5 billion, which was mainly attributable to
dividends received from overseas subsidiaries and affiliates.
Expenses
Expenses (excluding non-recurring losses) decreased ¥4.7
billion from the previous fiscal year, to ¥325.1 billion. This was
mainly due to a ¥3.6 billion decrease in personnel expenses as
Banking Profit
Years ended March 31
Gross banking profit
Gross banking profit (excluding net gains (losses) on bonds)
Net interest income
Net fees and commissions
Net trading income
Net other operating income
Gross domestic banking profit
Gross international banking profit
Transfer to general reserve for possible loan losses
Bond issue costs
Expenses (excluding non-recurring losses)
Personnel expenses
Non-personnel expenses
Taxes
Banking profit
Banking profit (excluding transfer to general reserve for possible loan losses)
Banking profit (excluding transfer to general reserve for possible loan losses
and net gains (losses) on bonds)
Gains (losses) on stocks decreased ¥226.8 billion from the
previous fiscal year to ¥259.9 billion.
Net income, after adjustments for operating profit, extra-
ordinary gains (losses) and income taxes, increased ¥6.9 billion
from the previous fiscal year, to ¥55.7 billion. Net income was
¥112.7 billion lower than operating profit, partly because ¥20.2
billion was appropriated for amortization of net transition obliga-
tion from initial application of the new accounting standard for
employee retirement benefits, but mainly because ¥70.6 billion in
expenses was recognized as ‘income taxes, deferred’ under tax-
effect accounting. In particular, a ¥26.4 billion reduction in
deferred tax assets was associated with the lowering of the
effective statutory tax rate, affected by the establishment of the
Osaka Prefectural Government’s ordinance concerning the spe-
cial treatment for the standard of enterprise taxes to the banking
industry.
the number of personnel was reduced. It was also due to a ¥0.6
billion reduction in non-personnel expenses, with merger-related
costs fully absorbed through the integration and effective opera-
tion of domestic and overseas branches, and administration
bases.
Banking Profit
As a result of the above, fiscal 2000 banking profit (excluding
transfer to general reserve for possible loan losses) increased
¥58.3 billion from fiscal 1999, to ¥447.7 billion. With the
¥132.6 billion reversal of the general reserve for possible loan
losses, banking profit, including transfer to general reserve for
possible loan losses, increased ¥229.7 billion, to ¥580.3 billion.
2001
¥)772.8
772.0
642.0
81.4
74.6
(25.3)
583.0
189.9
¥(132.6)
—
325.1
138.4
169.6
17.2
¥)580.3
447.7
Billions of yen
2000
¥722.6
726.5
604.7
69.3
33.3
15.3
565.2
157.4
¥038.9
3.3
329.8
142.0
170.2
17.6
¥350.6
389.4
Increase/
decrease
¥)050.2
45.5
37.3
12.1
41.3
(40.6)
17.8
32.5
¥(171.5)
(3.3)
(4.7)
(3.6)
(0.6)
(0.4)
¥)229.7
58.3
446.8
393.4
53.4
63
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited)
Non-recurring Gains (Losses) (Including Disposal of
Problem Assets)
Non-recurring losses amounted to ¥220.6 billion. This was
mainly due to ¥317.1 billion disposal of problem assets (total
credit cost, including transfer to general reserve for possible
loan losses, was ¥261.1 billion), accompanying ¥51.5 billion
gains on sale of stocks. (For the disposal and the disclosed
amount of problem assets, see Asset Quality on page 10.)
Extraordinary Gains (Losses)
Extraordinary losses reached ¥51.7 billion. This primarily
reflected a loss of ¥16.1 billion on disposition of premises and
equipment, because of factors such as losses on the sale of idle
real estate as part of restructuring, and the cost of disposing of
branches as a result of integration. Another important factor
was the appropriation of ¥36.4 billion for amortization of net
transition obligation from initial application of the new accounting
standard for employee retirement benefits from the fiscal year.
Operating Profit and Net Income
As a result of the above, operating profit increased ¥30.8 billion
from the previous fiscal year, to ¥190.7 billion. Net income, the
amount after adjusting operating profit for extraordinary gains
(losses) and income taxes, increased ¥25.1 billion from the
previous fiscal year, to ¥82.2 billion.
Due to the establishment of the Osaka Prefectural
Government’s ordinance concerning the special treatment for
the standard of enterprise taxes to the banking industry in June
2000, the impact of a ¥5.6 billion decrease in deferred tax
assets caused an increase in deferred income taxes and a
decrease in net income by the same amount.
Operating Profit and Net Income
Years ended March 31
Banking profit (excluding transfer to general reserve for possible loan losses)
Transfer to general reserve for possible loan losses
Banking profit (including transfer to general reserve for possible loan losses)
Non-recurring gains (losses)
Total credit cost
Write-off of loans
Transfer to specific reserve
Transfer to reserve for losses on loans sold
Losses on loans sold to CCPC
Losses on sale of delinquent loans
Losses on financial support for associated companies
Transfer to loan loss reserve for specific overseas countries
Gains (losses) on stocks
Gains on sale of stocks
Losses on sale of stocks
Losses on devaluation of stocks
Operating profit
Extraordinary gains (losses)
Gains (losses) on disposition of premises and equipment
Amortization of net transition obligation from initial application of the new
accounting standard for employee retirement benefits
Income taxes, current
Income taxes, deferred
Effect of introduction of enterprise taxes to banking industries by
Tokyo Metropolitan Government
Effect of introduction of enterprise taxes to banking industries by
Osaka Prefectural Government
Net income
Note: Total credit cost includes transfer to general reserve for possible loan losses.
64
Billions of yen
2000
¥313.5
(14.6)
¥328.1
(168.2)
449.9
130.5
194.7
55.5
37.1
14.2
35.2
(2.6)
341.8
406.3
29.9
34.6
¥159.9
(5.9)
(6.1)
—
4.0
93.0
35.8
—
57.1
2001
¥355.4
(56.0)
¥411.4
(220.6)
261.1
240.5
9.8
33.9
20.4
8.5
—
4.0
51.5
160.7
28.9
80.3
¥190.7
(51.7)
(16.1)
36.4
1.8
55.1
—
5.6
82.2
Increase/
decrease
¥(041.9
(41.4)
¥(083.3
(52.4)
(188.8)
110.0
(184.9)
(21.6)
(16.7)
(5.7)
(35.2)
6.6
(290.3)
(245.6)
(1.0)
45.7
¥(030.8
(45.8)
(10.0)
36.4
(2.2)
(37.9)
(35.8)
5.6
25.1
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited)
Non-recurring Gains (Losses) (Including Disposal of
Problem Assets)
Non-recurring losses amounted to ¥411.9 billion. This was
mainly due to ¥690.6 billion disposal of problem assets (total
credit cost, including transfer to general reserve for possible
loan losses was, ¥558.0 billion), accompanying ¥259.9 billion
gains on sale of stocks. (For the disposal and the disclosed
amount of problem assets, see Asset Quality on page 10.)
Extraordinary Gains (Losses)
Extraordinary losses amounted to ¥34.4 billion. This primarily
reflected a loss of ¥14.5 billion on disposition of premises and
equipment, such as the sale of company housing and other
properties and the disposal of branches as part of restructuring.
Another important factor was the appropriation of ¥20.2 billion
for amortization of net transition obligation from initial
Operating Profit and Net Income
application of the new accounting standard for employee
retirement benefits from the fiscal year.
Operating Profit and Net Income
As a result of the above, operating profit decreased ¥8.1 billion
from the previous fiscal year, to ¥168.4 billion. Net income, the
amount after adjusting operating profit for extraordinary gains
(losses) and income taxes, increased ¥6.9 billion, to ¥55.7
billion.
Due to the establishment of the Osaka Prefectural
Government’s ordinance concerning the special treatment for
the standard of enterprise taxes to the banking industry in June
2000, the impact of a ¥26.4 billion decrease in deferred tax
assets caused an increase in deferred income taxes and a
decrease in net income by the same amount.
Years ended March 31
Banking profit (excluding transfer to general reserve for possible loan losses)
Transfer to general reserve for possible loan losses
Banking profit (including transfer to general reserve for possible loan losses)
Non-recurring gains (losses)
Total credit cost
Write-off of loans
Transfer to specific reserve
Transfer to reserve for losses on loans sold
Losses on loans sold to CCPC
Losses on sale of delinquent loans
Transfer to loan loss reserve for specific overseas countries
Gains (losses) on stocks
Gains on sale of stocks
Losses on sale of stocks
Losses on devaluation of stocks
Operating profit
Extraordinary gains (losses)
Gains (losses) on disposition of premises and equipment
Amortization of net transition obligation from initial application of the new
accounting standard for employee retirement benefits
Income taxes, current
Income taxes, deferred
Effect of introduction of enterprise taxes to banking industries by
Tokyo Metropolitan Government
Effect of introduction of enterprise taxes to banking industries by
Osaka Prefectural Government
Net income
Note: Total credit cost includes transfer to general reserve for possible loan losses.
Billions of yen
2000
¥389.4
38.9
¥350.6
(174.1)
680.7
347.4
253.1
17.3
7.7
19.6
(3.1)
486.7
551.2
35.2
29.4
¥176.5
(28.0)
(6.9)
—
6.6
93.0
34.3
—
48.8
2001
¥447.7
(132.6)
¥580.3
(411.9)
558.0
500.9
146.7
19.1
11.4
16.6
(4.0)
259.9
335.5
37.8
37.8
¥168.4
(34.4)
(14.5)
20.2
7.8
70.6
—
26.4
55.7
Increase/
decrease
¥0)58.3
(171.5)
¥)229.7
(237.8)
(122.7)
153.5
(106.4)
1.8
3.7
(3.0)
(0.9)
(226.8)
(215.7)
2.6
8.4
¥00(8.1)
(6.4)
(7.6)
20.2
1.2
(22.4)
(34.3)
26.4
6.9
65
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited)
3. Assets, Liabilities and Stockholders’ Equity
Assets
Notwithstanding efforts to increase prime assets, including loans to
individuals and small and medium-sized corporations, such factors
as a slowdown in demand for funds by large and medium-sized
enterprises and the negative effect of the disposal of problem
assets led loans and bills discounted to decrease ¥1,364.5 billion
from the end of the previous fiscal year, to ¥30,575.5 billion.
Meanwhile, securities increased ¥3,288.1 billion, to ¥10,199.7
billion, mainly because of a purchase of bonds for additional contri-
bution of collateral with the introduction of RTGS (real-time gross
settlement).
Assets, Liabilities and Stockholders’ Equity
Liabilities
Deposits decreased ¥931.5 billion from the end of the previous
fiscal year, to ¥28,872.2 billion, while negotiable certificates of
deposit increased ¥1,122.9 billion, to ¥4,661.8 billion under the cir-
cumstances where corporations turned sensitive to interest rates.
Stockholders’ Equity
Stockholders’ equity increased ¥28.9 billion from the end of the
previous fiscal year, to ¥2,281.2 billion. The total number of shares
issued at the end of the fiscal year consisted of 4,118 million
shares of common stock and 802 million shares of preferred
stock. Stockholders’ equity (excluding preferred stock and accom-
panying capital surplus) per share increased ¥7.05, to ¥358.43.
March 31
Assets
Loans and bills discounted
Securities
Liabilities
Deposits
Negotiable certificates of deposit
Stockholders’ equity
Billions of yen
2001
2000
¥48,461.8
30,575.5
10,199.7
46,180.6
28,872.2
4,661.8
2,281.2
¥46,559.5
31,940.0
6,911.6
44,307.2
29,803.7
3,538.9
2,252.3
Increase/
decrease
¥(1,902.3
(1,364.5)
3,288.1
1,873.4
(931.5)
1,122.9
28.9
4. Unrealized Gains (Losses) on Securities (Before Adjustments for the Merger Accounting)
Unrealized gains (losses) on the valuation of securities at the end
of fiscal 2000 came to a net loss of ¥342.4 billion, a drop of
about one trillion yen from the end of the previous fiscal year,
reflecting the large decline in stock prices. For the calculation of
stocks in ‘other securities,’ the average market price in the one
month before the end of the fiscal year is used, but if calculated
using fiscal year-end prices, net unrealized losses on valuation
would be ¥247.5 billion. However, since all of gross unrealized
losses on the valuation of ‘other securities’ held by the former
Sakura Bank at the time of the merger were disposed of and only
the net unrealized gains were transferred to the new bank, the
new bank recorded a net gain on valuation of approximately ¥200
billion at April 1, 2001. (For details, see 1. Adjustments for
Merger Accounting [SMBC’s Unrealized Gains (Losses)
(Nonconsolidated)] on page 68.)
Unrealized Gains (Losses) on Securities (Before Adjustments for the Merger Accounting)
March 31
Held-to-maturity securities
Stocks of subsidiaries and affiliates
Other securities
Stocks
Bonds
Others
Total
Stocks
Bonds
Others
2001
Billions of yen
Net unrealized
gains (losses)
(a)
¥00—
4.2
(346.6)
(355.7)
21.4
(12.3)
(342.4)
(351.5)
21.4
(12.3)
(a) – (b)
./
./
./
./
./
./
¥(1,005.2)
(1,034.4)
49.3
(20.0)
Unrealized
gains
¥00—
5.8
157.8
130.3
24.0
3.5
163.6
136.0
24.0
3.5
Unrealized
losses
¥00—
(1.5)
(504.4)
(486.0)
(2.6)
(15.8)
(506.0)
(487.5)
(2.6)
(15.8)
Net unrealized
gains (losses)
(b)
./
./
./
./
./
./
¥662.8
682.9
(27.9)
7.7
2000
Unrealized
gains
./
./
./
./
./
./
¥1,103.9
1,075.6
7.3
21.0
Unrealized
losses
./
./
./
./
./
./
¥(441.1)
(392.7)
(35.1)
(13.3)
5. Dividend Policy
With respect to the interest of shareholders, the Bank subscribes
to a fundamental policy of issuing appropriate dividends, with the
specific view of enriching capital and preserving sound manage-
ment. As for year-end dividends, the Bank issued dividends per
common share at ¥6.00 (including ¥3.00 of delivered money due
66
to the merger) and dividends per preferred share for series II at
¥15.00 (including ¥7.50 of delivered money due to the merger),
and at ¥13.70 (including ¥6.85 of delivered money due to the
merger) for series III (Type 2), the same as the previous term.
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited)
3. Assets, Liabilities and Stockholders’ Equity
Assets
Loans and bills discounted decreased ¥186.2 billion from the end
of the previous fiscal year, to ¥31,172.3 billion, under the circum-
stances where large corporations in domestic and overseas mar-
kets continuously reduce interest-bearing liabilities. Meanwhile,
securities increased ¥7,878.1 billion, to ¥16,860.3 billion, mainly
because of a purchase of bonds for additional contribution of collat-
eral with the introduction of RTGS (real-time gross settlement) and
an effect of a change in accounting of repurchase agreement
transactions associated with the application of a new accounting
standard for financial instruments.
Assets, Liabilities and Stockholders’ Equity
March 31
Assets
Loans and bills discounted
Securities
Liabilities
Deposits
Negotiable certificates of deposit
Stockholders’ equity
Liabilities
Deposits increased ¥2,780.8 billion, from the end of the previous
fiscal year, to ¥30,169.0 billion. This result reflected the string of
monetary easing measures taken by the Bank of Japan since the
beginning of the year, making funds of individuals and corporations
flow in liquid deposits.
Stockholders’ Equity
Stockholders’ equity increased ¥38.1 billion from the end of the
previous fiscal year, to ¥1,918.7 billion. The total number of shares
issued at the end of fiscal 2000 comprised 3,141 million shares of
common stock and 167 million shares of preferred stock. Stock-
holders’ equity (excluding preferred stock and accompanying
capital surplus) per share increased ¥12.12 to ¥451.35.
Billions of yen
2001
2000
¥65,265.6
31,172.3
16,860.3
63,346.9
30,169.0
7,026.6
1,918.7
¥51,089.3
31,358.5
8,982.2
49,208.7
27,388.2
6,841.6
1,880.6
Increase/
decrease
¥14,176.3
(186.2)
7,878.1
14,138.2
2,780.8
185.0
38.1
4. Unrealized Gains (Losses) on Securities (Before Adjustments for the Merger Accounting)
Unrealized gains (losses) on the valuation of securities at the end
of fiscal 2000 came to a slight net loss of ¥89.6 billion, because
net unrealized gains (losses) on valuation of stocks significantly
dropped by about one trillion yen from the end of the previous
fiscal year, reflecting the large decline in stock prices, while being
offset by net unrealized gains on valuation of bonds. For the
calculation of stocks in ‘other securities,’ the average market
price in the one month before the end of the fiscal year is used,
but if calculated using fiscal year-end prices, net unrealized losses
on valuation of securities would be limited to ¥10.6 billion. How-
ever, since all of gross unrealized losses on ‘other securities’
(including ‘other money held in trust’) held by the former Sakura
Bank at the time of the merger were disposed of and only the net
unrealized gains were transferred to the new bank, the new bank
shows a net gain on valuation of approximately ¥200 billion as of
April 1, 2001. (For details, see 1. Adjustments for Merger
Accounting [SMBC’s Unrealized Gains (Losses) (Nonconsolidated)]
on page 68.)
Unrealized Gains (Losses) on Securities (Before Adjustments for the Merger Accounting)
March 31
Held-to-maturity securities
Stocks of subsidiaries and affiliates
Other securities
Stocks
Bonds
Others
Total
Stocks
Bonds
Others
Net unrealized
gains (losses)
(a)
¥00(0.1)
(6.3)
(83.2)
(162.3)
80.9
(1.9)
(89.6)
(168.6)
80.9
(1.9)
2001
(a) – (b)
./
./
./
./
./
./
¥0,(991.0)
(1,073.1)
81.5
0.6
Unrealized
gains
¥000.0
0.5
244.6
154.7
83.5
6.4
245.1
155.2
83.5
6.4
Billions of yen
Net unrealized
gains (losses)
(b)
./
./
./
./
./
./
¥901.4
904.5
(0.6)
(2.5)
2000
Unrealized
gains
./
./
./
./
./
./
¥1,259.3
1,221.9
33.7
3.6
Unrealized
losses
¥00(0.1)
(6.8)
(327.8)
(317.1)
(2.6)
(8.2)
(334.7)
(323.9)
(2.6)
(8.3)
Unrealized
losses
./
./
./
./
./
./
¥(357.9)
(317.5)
(34.3)
(6.2)
5. Dividend Policy
With respect to the interest of shareholders, the Bank subscribes
to a fundamental policy of issuing appropriate dividends with the
specific view of enriching capital and preserving sound
management.
In view of enriching capital by appropriate retained earnings,
at fiscal year-end, the Bank issued dividends per common share
at ¥6.00, and dividends per preferred share for First series Type
I at ¥10.50 and at ¥28.50 for Second series Type I, the same as
the previous term.
67
Total Combined Figures of the Former Sakura Bank and Sumitomo Bank
Sumitomo Mitsui Banking Corporation
1. Adjustments for Merger Accounting
Prior to the succession of Sakura’s assets, liabilities and capital
accompanying the April 1 merger, the Bank applied certain
accounting to strengthen the financial base of the bank.
First, the unrealized losses on Sakura’s securities classified
as ‘other securities’ (including ‘other money held in trust’) were
revaluated at fair value and transferred to SMBC. The same
treatment was applied to land, which had been revaluated at fair
value before. Also, Sakura’s net transition obligation on
employee retirement benefits was fully provisioned prior to the
merger.
Since this accounting treatment increased deferred tax
assets, the result was that ¥427.0 billion was deducted from the
stockholders’ equity of the former Sakura Bank before its
transfer to SMBC
The financial positions of the new bank, SMBC, on the date
of the merger were as follows.
SMBC’s Assets, Liabilities and Stockholders’ Equity (Nonconsolidated)
Assets
Securities
Premises and equipment
Deferred tax assets
Liabilities
Reserve for employee retirement benefit
Stockholders’ equity
Capital stock
Capital surplus
Earned surplus reserve
Land revaluation excess
Retained earnings
Former Sakura Bank
Adjustments for
March 31, 2001 merger accounting
¥48,461.8
10,199.7
286.4
524.1
46,180.6
14.1
2,281.2
1,042.7
899.5
131.3
42.7
165.0
¥(216.8)
(456.3)
(29.2)
268.7
210.2
210.2
(427.0)
(518.8)
91.8
—
—
—
Billions of yen
Amounts to be
succeeded (A)
¥48,245.0
9,743.4
257.2
792.8
46,390.8
224.3
1,854.2
523.9
991.3
131.3
42.7
165.0
Former Sumitomo Bank (B) SMBC (A) + (B)
March 31, 2001
April 1, 2001
¥65,265.7
16,860.3
585.4
550.5
63,347.0
(59.4)
1,918.7
752.8
643.1
107.9
166.9
248.0
¥113,451.3
26,603.7
842.6
1,343.3
109,678.4
164.9
3,772.9
1,276.7
1,634.4
239.2
209.6
413.0
SMBC’s Unrealized Gains (Losses) (Nonconsolidated)
Former Sakura Bank
March 31, 2001
Unrealized
gains (losses)
Gains
Losses
Billions of yen
Former Sumitomo Bank
March 31, 2001
SMBC
April 1, 2001
Unrealized
Unrealized
gains (losses) Gains
Losses
gains (losses) Gains
Losses
6.2
¥00(0.1) ¥000.0 ¥00(0.1) ¥00(0.1) ¥000.0 ¥00(0.1)
(8.3)
505.2 (304.8)
387.8 (294.0)
(2.6)
107.5
(8.2)
9.9
511.4 (313.2)
(4.4)
./
(2.1)
200.4
93.8
104.9
1.7
198.2
(3.6)
(71.4)
(6.8)
(304.8)
(294.0)
(2.6)
(8.2)
(311.7)
(4.4)
./
0.5
300.6
210.7
83.5
6.4
301.1
0.3
./
(6.3)
(4.2)
(83.3)
80.9
(1.8)
(10.6)
(4.1)
(71.4)
0.8
./
Disposal of
unrealized
losses
./
./
¥(456.3)
(437.8)
(2.6)
(15.9)
(456.3)
(0.0)
(29.2)
¥000— ¥000— ¥(000—
(1.5)
(456.3)
(437.8)
(2.6)
(15.9)
(457.8)
(0.0)
./
4.2
(251.7)
(260.7)
21.4
(12.4)
(247.5)
0.5
(29.2)
5.7
204.6
177.1
24.0
3.5
210.3
0.5
./
(210.2)
(145.4)
(64.8)
./
./
./
./
./
./
(210.2)
(130.2)
(145.4)
(64.8)
(80.7)
(49.5)
./
./
./
./
./
./
(130.2)
(80.7)
(49.5)
./
./
./
./
./
./
Held-to-maturity securities
Stocks of subsidiaries and affiliates
Other securities
Stocks
Bonds
Other
Total
Money held in trust
Land
Unrecognized net obligation on
employee retirement benefit
Net obligation from change of
accounting standard
Actuarial differences
SMBC’s Consolidated Capital Ratio (BIS Guidelines)
10.8%
68
Sumitomo Mitsui Banking Corporation
2. Financial Results and Problem Assets (Combined)
Consolidated
Number of Consolidated Subsidiaries and Affiliates Accounted for by the Equity Method
March 31
Consolidated subsidiaries
Subsidiaries and affiliates accounted for by the equity method
2001
149
41
2000
126
70
Income Summary
Years ended March 31
Consolidated gross profit
Net interest income
Net fees and commissions
Net trading income
Net other operating income
General and administrative expenses
Total credit cost
Write-off of loans
Transfer to specific reserve
Transfer to general reserve for possible loan losses
Other
Gains (losses) on stocks
Net income (loss) from unconsolidated entities by the equity method
Other income (expenses)
Operating profit
Extraordinary gains (losses)
Income before income taxes and minority interests
Income taxes, current
Income taxes, deferred
Minority interests in net income
Net Income
2001
¥1,837.9
1,323.5
316.3
109.0
89.0
¥0,940.9
992.9
814.4
258.5
(209.5)
129.5
¥0,468.5
44.4
77.7
¥0,494.6
(89.1)
405.5
65.5
198.2
(9.3)
132.4
Billions of yen
2000
¥1,746.7
1,307.1
265.7
63.4
110.6
¥0,953.6
1,260.2
585.5
457.5
17.5
199.6
¥0,858.5
(37.0)
19.3
¥0,373.8
(31.1)
342.6
58.6
170.6
11.1
124.5
Increase/
decrease
23
(29)
Increase/
decrease
¥(091.2
16.4
50.6
45.6
(21.6)
¥0(12.7)
(267.3)
228.9
(199.0)
(227.0)
(70.1)
¥(390.0)
81.4
58.4
¥)120.8
(58.0)
62.9
6.9
27.6
(20.4)
7.9
Note: Consolidated gross profit = (Interest income – Interest expenses) + (Fees and commissions (income) – Fees and commissions (expenses)) + (Trading
profits – Trading losses) + (Other operating income – Other operating expenses)
Assets, Liabilities and Stockholders’ Equity
March 31
Assets
Loans and bills discounted
Securities
Liabilities
Deposits (excluding negotiable certificates of deposit)
Minority interests
Stockholders’ equity
Note: For figures after adjustments for the merger accounting, see page 68.
Billions of yen
2001
2000
¥119,242.7
65,537.1
27,312.5
114,239.1
63,049.1
990.6
4,013.0
¥102,263.1
65,274.1
15,897.6
97,351.6
58,588.0
898.6
4,012.9
Increase/
decrease
¥16,979.6
263.0
11,414.9
16,887.5
4,461.1
92.0
0.1
Problem Assets, Risk-Monitored Loans and Reserve for Possible Loan Losses
March 31
Total of problem assets (based on Financial Reconstruction Law)
Bankrupt and quasi-bankrupt assets (Hatan kousei tou saiken)
Doubtful assets (Kiken saiken)
Substandard assets (Youkanri saiken)
Risk-monitored loans
Reserve for possible loan losses
General reserve
Specific reserve
Loan loss reserve for specific overseas countries
2001
¥3,355.0
777.3
2,166.4
411.2
¥3,256.4
¥1,268.9
395.9
853.0
20.0
Billions of yen
2000
¥0,000./
./
./
./
¥3,864.8
¥1,632.7
592.7
1,019.2
20.8
Increase/
decrease
¥0,00./
./
./
./
¥(608.4)
¥(363.8)
(196.8)
(166.2)
(0.8)
69
Sumitomo Mitsui Banking Corporation
Nonconsolidated
Operating Profit and Net Income
Years ended March 31
Banking profit (excluding transfer to general reserve for possible loan losses)
Transfer to general reserve for possible loan losses
Banking profit (including transfer to general reserve for possible loan losses)
Non-recurring gains (losses)
Total credit cost
Write-off of loans
Transfer to specific reserve
Transfer to reserve for losses on loans sold
Losses on loans sold to CCPC
Losses on sale of delinquent loans
Losses on financial support for associated companies
Transfer to loan loss reserve for specific overseas countries
Gains (Losses) on stocks
Gains on sale of stocks
Losses on sale of stocks
Losses on devaluation of stocks
Operating profit
Extraordinary gains (losses)
Gains (Losses) on disposition of premises and equipment
Amortization of net transition obligation from initial application of the new accounting
standard for employee retirement benefits
Income taxes, current
Income taxes, deferred
Effect of introduction of enterprise taxes to banking industries by
Tokyo Metropolitan Government
Effect of introduction of enterprise taxes to banking industries by
Osaka Prefectural Government
Net income
Note: Total credit cost includes transfer to general reserve for possible loan losses.
Assets, Liabilities and Stockholders’ Equity
Billions of yen
2000
¥0,702.9
24.2
¥0,678.7
(342.3)
1,130.6
477.8
447.8
72.8
44.8
33.8
35.2
(5.8)
828.4
957.5
65.1
64.0
¥0,336.4
(33.8)
(13.1)
—
10.6
186.0
70.1
—
105.9
2001
¥803.1
(188.6)
¥991.7
(632.5)
819.1
741.4
156.5
52.9
31.7
25.1
—
0
311.4
496.2
66.8
118.1
¥359.2
(86.1)
(30.5)
56.5
9.5
125.7
—
32.0
137.8
Increase/
decrease
¥)100.2
(212.8)
¥)313.0
(290.2)
(311.5)
263.6
(291.3)
(19.9)
(13.1)
(8.7)
(35.2)
5.8
(517.0)
(461.3)
1.7
54.1
¥)022.8
(52.3)
(17.4)
56.5
(1.1)
(60.3)
(70.1)
32.0
31.9
March 31
Assets
Loans and bills discounted
Securities
Liabilities
Deposits
Negotiable certificates of deposit
Stockholders’ equity
Billions of yen
2001
2000
¥113,727.5
61,747.9
27,060.0
109,527.6
59,041.3
11,688.5
4,199.9
¥97,648.8
63,298.5
15,893.8
93,515.9
57,191.9
10,380.6
4,132.9
Increase/
decrease
¥16,078.7
(1,550.6)
11,166.2
16,011.7
1,849.4
1,307.9
67.0
Note: For figures after adjustments for the merger accounting, see page 68.
Problem Assets, Risk-Monitored Loans and Reserve for Possible Loan Losses
March 31
Total of problem assets (based on Financial Reconstruction Law)
Bankrupt and quasi-bankrupt assets (Hatan kousei tou saiken)
Doubtful assets (Kiken saiken)
Substandard assets (Youkanri saiken)
Risk-monitored loans
Reserve for possible loan losses
General reserve
Specific reserve
Loan loss reserve for specific overseas countries
70
2001
¥2,822.5
589.9
1,943.1
289.4
¥2,732.6
¥1,095.8
367.8
708.1
20.0
Billions of yen
2000
¥3,640.5
585.5
2,232.0
823.0
¥3,556.5
¥1,569.5
556.4
993.1
20.0
Increase/
decrease
¥(818.0)
4.4
(288.9)
(533.6)
¥(823.9)
¥(473.7)
(188.6)
(285.0)
(0.0)
Consolidated Balance Sheets
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited and Subsidiaries)
March 31, 2001 and 2000
Assets
Cash and due from banks (Note 9, 34)
Call loans and bills bought
Commercial paper and other debt purchased (Note 34)
Trading assets (Notes 2, 9, 34, 35)
Money held in trust (Note 34)
Securities (Notes 3, 9, 34)
Loans and bills discounted (Notes 4, 9, 33)
Foreign exchanges (Note 5)
Other assets (Notes 6, 9)
Premises and equipment (Notes 7, 9)
Deferred tax assets (Note 30)
Customers’ liabilities for acceptances and guarantees (Note 18)
Reserve for possible loan losses (Note 8)
Millions of yen
Millions of
U.S. dollars (Note 1)
2001
2000
2001
¥ 2,896,268 ¥ 2,168,836
182,712
42,256
1,425,028
72,581
6,928,746
32,333,211
316,395
2,747,979
855,726
611,694
1,492,628
(682,188)
368,425
90,519
577,578
22,208
10,466,528
32,906,703
268,669
1,359,442
883,059
558,234
1,964,073
(512,023)
$ 23,375
2,973
730
4,661
179
84,475
265,590
2,168
10,972
7,127
4,505
15,852
(4,132)
Total assets
¥51,849,687 ¥48,495,608
$418,480
Liabilities, minority interests and stockholders’ equity
Liabilities
Deposits (Notes 9, 10)
Call money and bills sold (Notes 9, 11)
Commercial paper
Trading liabilities (Notes 12, 35)
Borrowed money (Notes 9, 13)
Foreign exchanges (Note 5)
Bonds (Note 14)
Convertible bonds (Note 15)
Other liabilities (Notes 9, 16)
Reserve for employee retirement benefit (Note 31)
Reserve for possible losses on loans sold
Other reserves (Note 17)
Deferred tax liabilities (Note 30)
Deferred tax liabilities for land revaluation
Acceptances and guarantees (Note 18)
Total liabilities
Minority interests
Stockholders’ equity
Capital stock (Note 19)
Common stock
Preferred stock:
Series II
Series III (Type-2)
Capital surplus (Note 19)
Land revaluation excess
Retained earnings (Note 20)
Foreign currency translation adjustments
Treasury stock
Parent bank stock held by subsidiaries
Total stockholders’ equity
¥36,625,010 ¥33,738,616
2,579,499
467,268
360,706
1,508,783
29,346
1,053,354
95
4,553,878
41,366
95,992
513
271
45,494
1,492,628
4,608,193
1,141,697
201,407
1,138,305
37,094
1,133,368
—
2,296,793
31,716
70,627
643
369
40,654
1,964,073
¥49,289,955 ¥45,967,816
¥00,383,922 ¥00,319,237
$295,601
37,192
9,214
1,625
9,187
299
9,147
—
18,537
255
570
5
2
328
15,852
$397,820
$003,098
¥00,640,129 ¥00,639,934
$005,166
2,577
400,000
899,521
63,056
196,060
(20,939)
(42)
(4,552)
2,772
400,000
899,521
69,333
198,161
—
(10)
(1,157)
¥02,175,809 ¥02,208,554
20
3,228
7,260
508
1,582
(169)
(0)
(36)
$017,561
$418,480
71
Total liabilities, minority interests and stockholders’ equity
¥51,849,687 ¥48,495,608
See accompanying notes to consolidated financial statements.
Consolidated Statements of Income
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited and Subsidiaries)
Years ended March 31, 2001 and 2000
Millions of yen
Millions of
U.S. dollars (Note 1)
2001
2000
2001
¥ 800,818
134,621
172,389
209,261
26,807
97,621
332,094
—
¥ 767,063
117,759
514,118
186,213
17,484
99,261
455,196
3
¥1,773,614
¥2,157,102
¥0,246,224
103,636
87,979
61,863
—
55,471
490,621
16,870
578,896
2
¥0,170,171
84,923
490,455
66,414
994
67,883
487,472
224,003
438,643
0
¥1,641,567
¥2,030,963
¥0,132,046
¥0,126,139
8,091
69,900
5,115
7,831
74,247
(18,521)
$06,463
1,086
1,391
1,688
216
787
2,680
—
$14,314
$01,987
836
710
499
—
447
3,959
136
4,672
0
$13,249
$01,065
65
564
41
¥ 48,939
¥ 062,581
$ 394
Yen
U.S. dollars
¥9.22
9.21
¥12.58
—
$0.07.
0.07.
Income
Interest income:
Interest on loans and discounts
Interest and dividends on securities
Other interest income (Note 21)
Fees and commissions
Trading profits
Other operating income (Note 22)
Other income (Note 23)
Transfer from other reserves (Note 24)
Total income
Expenses
Interest expenses:
Interest on deposits
Interest on borrowings, bonds and rediscounts
Other interest expenses (Note 25)
Fees and commissions
Trading losses
Other operating expenses (Note 26)
General and administrative expenses (Note 27)
Transfer to reserve for possible loan losses
Other expenses (Note 28)
Transfer to other reserves (Note 29)
Total expenses
Income before income taxes and minority interests
Income taxes (Note 30):
Current
Deferred
Minority interests in net income (loss)
Net income
Per share of common stock:
Net income
Net income—diluted
See accompanying notes to consolidated financial statements.
72
Consolidated Statements of Retained Earnings
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited and Subsidiaries)
Years ended March 31, 2001 and 2000
Balance at beginning of year (Note 20)
Increase:
Transfer from land revaluation excess
Increase of retained earnings due to exclusion in affiliates
under the equity method
Decrease:
Dividends paid
Delivered money due to merger
Decrease of retained earnings due to consolidation of
additional subsidiaries
Decrease of retained earnings due to the merger of
consolidated subsidiaries
Net income
Balance at end of year (Note 20)
See accompanying notes to consolidated financial statements.
Millions of yen
2001
2000
¥198,161
¥164,329
Millions of
U.S. dollars (Note 1)
2001
$1,599
6,759
2,115
938
—
35,705
17,853
30,182
—
—
682
5,177
48,939
—
62,581
54
7
288
144
—
41
394
¥196,060
¥198,161
$1,582
73
Consolidated Statements of Cash Flows
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited and Subsidiaries)
Years ended March 31, 2001 and 2000
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation of premises and equipment
Amortization of goodwill
Net (income) loss from nonconsolidated entities accounted for by the equity method
Net change in reserve for possible loan losses
Net change in reserve for possible losses on loans sold
Net change in reserve for employee retirement benefit
Interest income
Interest expenses
Net gains on securities
Net (income) loss from money held in trust
Net exchange (gains) losses
Net losses from disposition of premises and equipment
Net change in trading assets
Net change in trading liabilities
Net change in payable on trading contracts
Net change in loans and bills discounted
Net change in deposits
Net change in borrowed money (excluding subordinated debt)
Net change in deposits with banks (except for demand deposits with the Bank of Japan)
Net change in call loans and bills bought
Net change in pledged money for securities borrowing transactions
Net change in call money and bills sold
Net change in commercial paper
Net change in pledged money for securities lending transactions
Net change in foreign exchanges (Assets)
Net change in foreign exchanges (Liabilities)
Net change in bonds (excluding subordinated bonds)
Interest received
Interest paid
Other, net
Subtotal
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchases of securities
Proceeds from sale of securities
Proceeds from maturity of securities
Purchases of money held in trust
Proceeds from sale of money held in trust
Purchases of premises and equipment
Proceeds from sale of premises and equipment
Purchases of subsidiaries stocks
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issuance of subordinated debt
Repayment of subordinated debt
Proceeds from issuance of subordinated bonds
Repayment of subordinated bonds, convertible bonds and notes
Dividends paid
Proceeds from issuance of subsidiaries’ stocks paid by minority stockholders
Dividends paid to minority stockholders
Purchases of treasury stock
Proceeds from sale of treasury stock
Net cash used in financing activities
Effects of exchange rate changes on cash and cash equivalents
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Change in cash and cash equivalents due to the inclusion of
subsidiaries in consolidation
Change in cash and cash equivalents due to the exclusion of
subsidiaries from consolidation
Cash and cash equivalents at end of year
See accompanying notes to consolidated financial statements.
74
Millions of yen
Millions of
U.S. dollars (Note 1)
2001
2000
2001
¥ 132,046
35,123
7,077
(7,883)
(231,386)
(27,006)
(15,319)
(1,107,828)
437,840
(82,439)
(536)
(48,638)
18,810
873,036
(189,217)
(588,359)
1,390,760
417,630
(409,051)
(902,846)
(211,068)
680,428
2,019,431
675,474
(797,435)
61,228
7,474
200,967
1,149,235
(439,998)
181,585
¥)03,229,136
(10,663)
¥)03,218,472
¥(16,532,695)
9,537,615
3,944,752
(9,171)
60,289
(118,836)
60,584
(2,684)
¥0(3,060,146)
¥(00,112,283
(319,774)
149,500
(332,631)
(35,705)
14,000
(7,474)
(808)
586
¥00,(420,024)
830
¥00,(260,867)
¥(01,408,146
¥(0,126,139
35,029
5,330
1,487
11,419
(19,539)
(3,614)
(1,398,941)
745,550
(346,591)
625
145,561
12,209
(542)
(194)
408,834
503,351
415,842
(214,107)
(247,833)
(162,311)
(335,705)
253,678
(99,731)
(34,993)
(7,101)
6,994
155,486
1,625,911
(1,005,204)
325,421
¥(0,902,462
(13,719)
¥(0,888,743
¥(7,671,286)
5,672,199
1,535,603
(31,319)
113,981
(54,707)
67,918
—
¥0,(367,609)
¥(00000,0—.
(15,000)
136,088
(103,257)
(30,182)
—
(9,767)
(25)
18
¥00,(22,124)
3,614
¥(0,502,623
¥0(,905,496
$ 1,065
283
57
(63)
(1,867)
(217)
(123)
(8,941)
3,533
(665)
(4)
(392)
151
7,046
(1,527)
(4,748)
11,224
3,370
(3,301)
(7,286)
(1,703)
5,491
16,298
5,451
(6,436)
494
60
1,622
9,275
(3,551)
1,465
$(026,062
(86)
$(025,976
$(133,435)
76,978
31,838
(74)
486
(959)
488
(21)
$0(24,698)
$(000,906
(2,580)
1,206
(2,684)
(288)
112
(60)
(6)
4
$00(3,390)
6
$00(2,105)
$(011,365
90
83
0
—
¥(01,147,369
(57)
¥)1,408,146
—
$0(09,260
Notes to Consolidated Financial Statements
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited and Subsidiaries)
Years ended March 31, 2001 and 2000
Years ended March 31, 1999 and 1998
1. Basis of Consolidated Financial Statements and
Summary of Significant Accounting Policies
significant influence over operations are to be accounted for by
the equity method.
(1) Basis of consolidated financial statements
Sumitomo Mitsui Banking Corporation (formerly The Sakura Bank,
Limited) (the “Bank”), a Japanese corporation, maintains its record
and prepares its financial statements in Japanese yen.
The accompanying consolidated financial statements have
been prepared on the basis of accounting principles and practices
generally accepted in Japan and in conformity with the “Regulation
for consolidated financial statements,” which may differ to some
degree from accounting principles and practices generally
accepted in countries and jurisdictions other than Japan, and are
compiled from the consolidated financial statements as required
by the Securities and Exchange Law of Japan.
Certain reclassifications and rearrangements have been made
to present the accompanying consolidated financial statements in
a form which is familiar to readers outside Japan. In addition, the
accompanying notes include information which is not required
under accounting principles and practices generally accepted in
Japan, but is presented herein as additional information.
References to fiscal 2000 and fiscal 1999 are to the Bank’s
fiscal years ended March 31, 2001 and 2000, respectively.
As permitted by the Securities and Exchange Law of Japan,
amounts less than one million yen have been omitted. As a result,
the totals in Japanese yen shown in the financial statements do not
necessarily agree with the sum of the individual amounts.
The U.S. dollar amounts shown in the accompanying consoli-
dated financial statements and notes thereto represent the arith-
metical results of translating original Japanese yen amounts of
respective account balances to U.S. dollars on a basis of ¥123.90
to US$1, the exchange rate prevailing as of March 31, 2001. The
inclusion of such U.S. dollar amounts is solely for convenience and
not intended to imply that yen amounts have been or could have
been converted, realized or settled in U.S. dollars at that or at any
other rate.
(2) Principles of consolidation
The consolidated financial statements of the Bank include
accounts of the Bank and its significant subsidiaries. Major
consolidated subsidiaries for fiscal 2000 are listed below:
Name
Sakura Securities Co., Ltd.
Manufacturers Bank
Sakura Finance International Limited
Sakura Finance Australia Limited
Location
Tokyo
Los Angeles
London
Sydney
Percentage
Ownership
100%
100%
100%
100%
Under the control and influence concept, those companies in
which the Bank, directly or indirectly, is able to exercise control
over operations are to be fully consolidated and those companies
in which the Bank, directly or indirectly, is able to exercise
The number of consolidated subsidiaries and affiliates as of
March 31, 2001 and 2000, was as follows:
Consolidated subsidiaries
Subsidiaries and affiliates accounted
for by the equity method
2001
65
12
2000
51
32
The net decrease in the number of consolidated subsidiaries and
equity method subsidiaries and affiliates listed above is mainly due
to stock sales or mergers whereby consolidation or equity method
accounting for certain subsidiaries or affiliates was no longer
required. The decrease was partially offset by the establishment of
new subsidiaries, the purchase of additional stock or the injection
of capital that required their consolidation or the equity method of
accounting.
All significant intercompany transactions, account balances
and unrealized profits and losses have been eliminated in
consolidation.
The financial statements of consolidated subsidiaries, whose
fiscal year-ends are principally December 31, are included in the
consolidated financial statements on the basis of their respective
fiscal years after making appropriate adjustments for significant
transactions during the periods from their respective year-ends to
the date of the consolidated financial statements.
Any difference between the cost of an investment in a consoli-
dated subsidiary and the Bank’s share of the underlying equity in
the net assets fair value of the consolidated subsidiary is charged
or credited to income, as the case may be, in the year incurred.
(3) Translation of foreign currency financial statements
(i) The financial statements of foreign consolidated subsidiaries
and affiliates are translated into Japanese yen at exchange
rates as of the balance sheet date, except for stockholders’
equity, which is translated at the historical exchange rate. In
accordance with the revised accounting standard for foreign
currency translation, the presentation of Foreign currency
translation adjustments is changed from Assets to
Stockholders’ equity and Minority interests.
(a) Foreign currency denominated assets and liabilities and the
accounts of overseas branches are translated into Japa-
nese yen at the exchange rates prevailing at the balance
sheet date, except that certain assets and liabilities are
translated at the relevant historical exchange rates.
(b) Foreign currency accounts held by consolidated foreign
subsidiaries are translated into the currency of the
subsidiary at the respective year-end exchange rates.
(ii)
(4) Valuation of trading account activities
Trading account positions representing earnings or losses derived
from trades made for the purpose of seeking to capture gains
75
arising from short-term changes in interest rates, currency
exchange rates, or market prices of securities and other market-
related indices or from gaps among markets are included in
trading assets and trading liabilities on a trade date basis.
Trading securities and monetary claims purchased for trading
purposes recorded in these accounts are stated at market value
and financial derivatives related to trading transactions are stated
at the amounts that would be settled if they were terminated at the
end of the fiscal year.
Trading profits and trading losses include interest received and
paid, the amount of increase/decrease in evaluation gains/losses
on the balance sheet date for securities and monetary claims, and
the amount of increase/decrease of evaluation gains/losses
incurred from the estimated settlement price assuming settlement
in cash on the balance sheet date for derivatives, compared with
that at the end of the previous term.
(5) Valuation of securities
Prior to April 1, 2000, securities, including stocks, corporate
bonds, and Japanese national and local government bonds, were
stated at moving-average cost.
Securities included in money held in trust were also recorded
at moving-average cost.
Effective April 1, 2000, as for securities other than those in
trading portfolio, debt securities that the Bank and consolidated
subsidiaries have the intent and ability to hold to maturity (held-to-
maturity securities) are carried at amortized cost, using the
moving-average method.
Investments in nonconsolidated subsidiaries and affiliates that
are not accounted for by the equity method are carried at cost,
using the moving-average method.
Securities excluding those classified as trading securities,
held-to-maturity or investments in nonconsolidated subsidiaries and
affiliates are defined as other securities. Debt securities in other
securities are carried at amortized cost, using the moving-average
method. Equity securities in other securities are carried at cost,
using the moving-average method.
Valuation of securities held in individually managed money
trusts for asset management purposes are determined by the
same method as above.
(6) Valuation of derivatives for nontrading purposes
Derivative financial instruments other than those held for trading
purposes are accounted for by the market value method.
(7) Hedge accounting
In accordance with the Industry Audit Committee Report No. 15
‘Temporary Treatment for Accounting and Auditing of Application of
Accounting Standard for Financial Instruments in Banking Industry’
issued by JICPA in 2000, the Bank applies hedge accounting,
abiding by the following requirements:
(i) Loans, deposits and other interest-bearing assets and
liabilities as a whole shall be recognized as the hedged
portfolio.
(ii) Derivatives as hedging instruments shall effectively reduce
the interest rate exposure of the hedged portfolio.
(iii) Effectiveness of hedging activities shall be evaluated on a
quarterly basis.
Certain derivatives are recorded on a cost basis using the
short-cut method for interest rate swaps in view of consis-
tency with the risk management policy.
The subsidiaries use the deferred hedge accounting or the
short-cut method for interest rate swaps.
Net of deferred unrealized gains and losses from hedging
instruments is reported in other liabilities. Deferred unrealized
losses and unrealized gains from hedging instruments are
¥191,628 million ($1,546 million) and ¥208,232 million ($1,680
million), respectively.
(8) Depreciation method
Premises and equipment are stated at cost less accumulated
depreciation.
The depreciation of premises and equipment of the Bank is
computed by the declining balance method (except for that of
buildings, which is computed by the straight-line method.)
Depreciation of buildings (which were acquired on or before
March 31, 1998), building fixtures and structures were computed
by the declining balance method before this term. The Bank
reviewed the actual condition of buildings and related assets and
observed that they had been consistently used for branch offices
and other purposes over a long period of time. As a result, the
Bank found that the straight-line method, which calculates level
depreciation charges over their useful lives, was a more reason-
able method to reflect profit and loss for each accounting term
more properly. Accordingly, we have changed the depreciation
method to the straight-line method from this fiscal year. As a result
of this change, Income before income taxes for this fiscal year
increased by ¥1,482 million ($11 million) from the corresponding
amount that would have been recorded if the declining balance
method was adopted.
The estimated useful lives of major items are as follows:
10 to 50 years
5 to 20 years
Buildings
Equipment
Depreciation of premises and equipment of subsidiaries is
computed mainly by the straight-line method based on estimated
useful life.
Capitalized software for internal use is depreciated by the
straight-line method based on useful life estimated by the Bank
and subsidiaries (mainly five years). Capitalized software for
internal use is included in other assets.
76
(9) Accounting for leases
All leases by the Bank and its domestic consolidated subsidiaries
have been accounted for as operating leases. Under Japanese
accounting standards for leases, if financing leases where the
ownership of the property is deemed to transfer to the lessee are
capitalized, while other financing leases can be accounted for as
operating leases if necessary information is disclosed in the notes
to the lessee’s consolidated financial statements.
(10) Reserve for possible loan losses
The reserve for possible loan losses of the Bank has been
established based on the Bank’s internal rules for establishing a
reserve for possible loan losses.
liability for lump-sum payments is stated at the amount which
would be required to be paid by the Bank if all eligible employees
voluntarily retired at the balance sheet date.
In addition, the Bank has defined benefit pension plans which
substantially cover all employees. Annual contributions, which con-
sist of normal costs and amortization of prior service costs, are
included in general and administrative expenses.
Effective April 1, 2000, a new accounting standard for pension
plans and severance indemnity plans, reserve for employee retire-
ment benefit is recorded based on an actuarial computation, which
uses the present value of the projected benefit obligation and
pension assets, due to employee’s credited years of services at
the balance sheet date.
Customers are initially classified into ten categories, in accor-
Prior service cost and unrecognized net actuarial differences
dance with the Bank’s own credit rating system. Based on the
results of the self-assessment, those customers are classified
into five categories: such as “Normal Borrowers,” “Borrowers
Requiring Caution,” “Potentially Bankrupt Borrowers,” “Effectively
Bankrupt Borrowers” and “Bankrupt Borrowers,” as defined by the
report of JICPA.
The reserve for possible loan losses was calculated based
on the specific actual past loss ratio for Normal Borrowers and
Borrowers Requiring Caution categories as a general reserve, and
the fair value of the collateral for collateral-dependent loans and
other factors of solvency for other self-assessment categories for
a specific reserve. For collateral or guaranteed claims of Effec-
tively Bankrupt Borrowers and Bankrupt Borrowers, the amount
exceeding the estimated value of collateral or guarantees was
deducted, as deemed uncollectible, directly from those claims.
The deducted amount was ¥1,121,687 million ($9,053 million)
and ¥1,125,967 million for fiscal 2000 and fiscal 1999,
respectively.
For foreign claims, there is a reserve for loans to restructuring
countries which has been established based on losses estimated
by considering political and economic situations in those
countries.
All claims are being assessed by the branches and credit
supervision divisions based on the Bank’s internal rules for the self-
assessment of asset quality. The Assets Review and Inspection
Division, which is independent from branches and credit super-
vision divisions, conducts audits of these assessments.
The consolidated subsidiaries provide reserves for possible
loan losses at the amounts considered reasonable in accordance
with local accounting standards and are based on prior experience
with loan losses.
(11) Reserve for employee retirement benefit
Under the terms of the Bank’s retirement plan, substantially all
employees are entitled to a lump-sum payment at the time of
retirement. The amount of reserve for employee retirement benefit
is, in general, based on length of service, basic salary at the time
of retirement and reason for retirement. Prior to April 1,2000, the
are amortized as follows respectively.
Prior service cost:
Amortized by the straight-line basis over the prescribed
years within the average remaining service period
(primarily 11 years) of active employees.
Unrecognized net actuarial differences:
Amortized from the next fiscal year by the straight-line basis
over the prescribed years within the average remaining
service period (primarily 11 years) of active employees.
Unrecognized net obligation from initial application of the new
accounting standard of ¥193,823 million ($1,564 million) is amor-
tized using the straight-line method over mainly five years.
Due to the new accounting standard, Income before income
taxes and minority interests for the year ended March 31, 2001
has decreased compared with prior accounting method by
¥29,590 million ($238 million).
(12) Reserve for possible losses on loans sold
Reserve for possible losses on loans sold to the Cooperative
Credit Purchasing Company, Limited (CCPC), is made to provisions
in amounts which it views to be necessary based on estimates of
possible losses it may sustain in the future on loans sold to the
CCPC, taking into account of the value of real estate collateral
securing these loans.
(13) Land revaluation excess
Under the Law of Land Revaluation, effective on March 31, 1998,
the Bank elected the one-time revaluation for its own-use land to
current value based on real estate appraisal information as of
March 31, 1998. Continuous readjustment is not permitted unless
the value of the land subsequently declines significantly such that
the amount of the decline in value should be removed from the
land revaluation excess account and deferred tax liabilities. The
amount equivalent to the tax on the revaluation is provided as
deferred tax liability for land revaluation, and the remaining amount
after the deferred tax liability is included in stockholders’ equity as
land revaluation excess.
77
The details of the one-time revaluation were as follows:
The date of land revaluation: March 31, 1998
The revaluation of land used for banking business was rationally
dividends on preferred shares, divided by the weighted average
number of outstanding shares of common stock during the
respective year.
made, reflecting appropriate adjustments for land shape, timing of
the appraisal, etc., based on the appraisal reports for real estate
issued by real estate appraisers under the Law of Land Revaluation.
The excess of book value over current value was ¥35,942
million ($290 million) as of March 31, 2001 and ¥29,181 million
as of March 31, 2000.
(14) Income taxes
Deferred income taxes relating to temporary differences between
financial and tax reporting have been recognized.
(15) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and demand
deposits with the Bank of Japan.
The assets and liabilities of the newly consolidated company
due to acquisition of stocks of The Minato Bank, Ltd. and net
expenditure of cash and cash equivalents due to the acquisition of
The Minato Bank, Ltd. is as follows:
Assets (including ¥1,806,408 million of loans)
Liabilities
Minority interests
Goodwill
Cost of investment of The Minato Bank, Ltd.
Cash and cash equivalents of The Minato Bank, Ltd.
Net: Expenditure for acquisition of
The Minato Bank, Ltd.
Millions of yen
¥2,342,587
(2,264,968)
(46,981)
3,359
33,997
32,972
1,024
(16) Appropriation of retained earnings
Cash dividends are recorded in the financial year that the relevant
proposed appropriation of retained earnings is approved by the
Board of Directors and/or at the General Meeting of Shareholders.
(17) Net income per share
Net income per share calculations represent net income less
The calculation considers the dilutive effect of common
stock equivalents, which includes preferred shares and certain
convertible bonds, assuming that all convertible bonds and
preferred shares were converted into common stock. Diluted net
income per common share is to be appropriately adjusted for
free distributions of common stock. For fiscal 1999, however,
diluted net income per common share is not applicable because
it is anti-dilutive.
(18) Differences between the accounting principles and
practices adopted in the accompanying consolidated
financial statements and International Accounting
Standards
The accompanying consolidated financial statements conform with
accounting principles and practices generally accepted in Japan.
Such principles and practices differ from International Accounting
Standards in several respects, such as methods for valuation of
securities, hedge accounting and accounting for leases, among
others.
(19) New accounting standard for financial instruments
Effective April 1, 2000, a new accounting standard for financial
instruments was adopted in Japan. Accordingly, the valuation
methods of securities and derivatives, excluding those in the trad-
ing portfolio, have been changed, and hedge accounting has been
adopted. As a result, Income before income taxes and minority
interests has increased ¥36,146 million ($291 million) compared
with the prior accounting method. Income and expenses relating to
derivative transactions that meet the criteria for hedge accounting
are presented net by account, which represents a change from the
prior accounting that presented net by transaction. As a result,
Income and expenses for 2001 have decreased ¥155,585 million
($1,255 million), though Income before income taxes and minority
interests did not change.
2. Trading Assets
Trading assets as of March 31, 2001 and 2000, consisted of the following:
Trading securities
Derivatives of trading securities
Securities related to trading transactions
Trading-related financial derivatives
Other trading assets*
Total
Millions of yen
2001
2000
¥541,360
—
5,403
108,374
422,439
¥ 466,397
273
40,793
112,225
805,338
¥577,578
¥1,425,028
Millions of
U.S. dollars
2001
$0,333
—
43
874
3,409
$4,661
* Other trading assets includes commercial paper and other debt purchased related to trading transactions.
78
3. Securities
Securities as of March 31, 2001 and 2000, consisted of the following:
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Total
Millions of yen
2001
2000
¥04,903,153
20,769
588,893
3,899,246
1,054,465
¥1,870,908
137,619
448,294
3,515,820
956,102
¥10,466,528
¥6,928,746
Millions of
U.S. dollars
2001
$39,573
167
4,752
31,470
8,510
$84,475
Japanese stocks and other include investments in unconsolidated
subsidiaries and affiliates of ¥3,784 million ($30 million) and
¥27,425 million as of March 31, 2001 and 2000, respectively.
Securities of ¥292,171 million ($2,358 million), which are used
for securities lending transactions for consumption are included in
securities, other assets and trading assets as of March 31, 2001.
4. Loans and Bills Discounted
Loans and bills discounted as of March 31, 2001 and 2000, consisted of the following:
Bills discounted
Loans on bills
Loans on deeds
Overdrafts
Financing receivables, including leasing
Total
“Non-accrual Loans” includes loans classified as “Potentially Bank-
rupt Borrowers” and “Effectively Bankrupt Borrowers” under the
Bank’s self-assessment guidelines. Accrual interest receivable for
these categories is not recognized on an accrual basis for
accounting purposes.
Loans and bills discounted includes loans held by the Bank and
its consolidated subsidiaries to borrowers in bankruptcy totaling
¥197,398 million ($1,593 million) and ¥176,313 million as of
March 31, 2001 and 2000, respectively, as well as Non-accrual
Loans held by the Bank and its consolidated subsidiaries totaling
¥1,041,951 million ($8,409 million) and ¥1,274,607 million as of
March 31, 2001 and 2000, respectively.
In addition to “Non-accrual Loans” as defined, certain other
loans classified as “Borrowers Requiring Caution” under the Bank’s
self-assessment guidelines include “Past due loans (3 months or
more).”
Millions of yen
2001
2000
¥00,738,621
3,490,209
22,543,959
6,119,474
14,437
¥ 585,254
3,469,320
21,817,990
6,440,517
20,127
¥32,906,703
¥32,333,211
Millions of
U.S. dollars
2001
$005,961
28,169
181,952
49,390
116
$265,590
“Past due loans (3 months or more)” consist of loans for which
the principal and/or interest is three months or more past due but
exclude “Bankrupt Loans” and “Non-accrual Loans.” The balances
of Past due loans (3 months or more) as of March 31, 2001 and
2000, were ¥75,870 million ($612 million) and ¥39,777 million,
respectively.
“Restructured loans” are loans in which the Bank and its sub-
sidiaries are relaxing lending conditions, such as reduction of the
original interest rate, forbearance of interests payments or princi-
pal repayments to support the borrowers’ reorganization, but
exclude “Bankrupt Loans,” “Non-accrual Loans” or “Past due loans
(3 months or more).” The outstanding balances of restructured
loans as of March 31, 2001 and 2000, were ¥151,413 million
($1,222 million) and ¥170,741 million, respectively.
79
5. Foreign Exchanges
Foreign exchange assets and foreign exchange liabilities as of March 31, 2001 and 2000, consisted of the following:
Assets:
Due from foreign banks
Foreign bills bought
Foreign bills receivable
Total
Liabilities:
Due to foreign banks
Foreign bills sold
Foreign bills payable
Total
6. Other Assets
Other assets as of March 31, 2001 and 2000, consisted of the following:
Prepaid expenses
Accrued income
Other
Total
7. Premises and Equipment
Premises and equipment as of March 31, 2001 and 2000, consisted of the following:
Land*
Building
Equipment
Other
Total
Accumulated depreciation
Net book value
* Land includes land revaluation excess with related taxes referred to in Note 1 (13).
Millions of yen
2001
2000
¥ 32,427
150,719
85,522
¥ 14,786
217,114
84,493
¥268,669
¥316,395
¥ 28,272
2,254
6,566
¥ 17,321
3,066
8,958
¥037,094
¥ 29,346
Millions of yen
2001
2000
¥0,050,025
369,163
940,254
¥ 68,333
557,122
2,122,524
¥1,359,442
¥2,747,979
Millions of yen
2001
2000
¥0,483,335
277,874
222,702
334,879
¥1,318,791
435,732
¥ 495,244
268,480
212,059
301,508
¥1,277,293
421,566
¥0,883,059
¥ 855,726
Millions of
U.S. dollars
2001
$0,261
1,216
690
$2,168
$0,228
18
52
$0,299
Millions of
U.S. dollars
2001
$00,403
2,979
7,588
$10,972
Millions of
U.S. dollars
2001
$03,901
2,242
1,797
2,702
$10,643
3,516
$07,127
80
8. Reserve for Possible Loan Losses
Reserve for possible loan losses as of March 31, 2001 and 2000, consisted of the following:
General reserve
Specific reserve
Total
9. Assets Pledged as Collateral
Assets pledged as collateral as of March 31, 2001 and 2000, consisted of the following:
Millions of yen
2001
2000
¥163,151
348,872
¥227,338
454,849
¥512,023
¥682,188
Assets pledged as collateral:
Cash and due from banks
Trading assets
Securities
Loans and bills discounted
Other assets
Premises and equipment
Liabilities corresponding to assets pledged as collateral:
Deposits
Call money and bills sold
Borrowed money
Other liabilities
Millions of yen
2001
2000
¥ 000,001
3,037
1,932,374
701,282
58,620
559
¥00000,0—.
—
654,854
1,122,063
39,308
1,414
¥0,062,243
2,116,699
68,774
17,928
¥0,078,711
945,700
96,754
72,706
Millions of
U.S. dollars
2001
$1,316
2,815
$4,132
Millions of
U.S. dollars
2001
$00,000
24
15,596
5,660
473
4
$00,502
17,083
555
144
In addition, securities with a balance of ¥3,096,063 million
($24,988 million) and ¥1,107,597 million, loans and bills dis-
counted of ¥397,546 million ($3,208 million) and ¥9,627 million,
cash and due from banks of ¥3 million ($0 million) and ¥— million
and other assets of ¥10 million ($0 million) and ¥97,638 million
are pledged as collateral for cash settlement and replacement of
initial margins of futures markets and so on as of March 31, 2001
and 2000, respectively.
The following items are included in premises and equipment and other assets, respectively as of March 31, 2001.
Surety deposits and intangible:
Initial margins of futures markets in other assets:
¥70,421 million ($568 million)
¥03,006 million ($24 million)
10. Deposits
Deposits as of March 31, 2001 and 2000, consisted of the following:
Current deposits
Ordinary deposits
Deposits at notice
Time deposits
Negotiable certificates of deposit
Other deposits
Total
Millions of yen
2001
2000
¥02,440,824
9,425,381
3,923,656
13,972,593
4,621,021
2,241,531
¥ 1,947,618
8,902,508
3,981,865
13,137,772
3,512,634
2,256,217
¥36,625,010
¥33,738,616
Millions of
U.S. dollars
2001
$019,699
76,072
31,667
112,773
37,296
18,091
$295,601
81
11. Call Money and Bills Sold
Call money and Bills sold as of March 31, 2001 and 2000, consisted of the following:
Call money
Bills sold
Total
12. Trading Liabilities
Trading liabilities as of March 31, 2001 and 2000, consisted of the following:
Trading securities sold for short sales
Derivatives of trading securities
Securities related to trading transaction sold for short sales
Derivatives of securities related to trading transactions
Trading-related financial derivatives
Total
13. Borrowed Money
Borrowed money as of March 31, 2001 and 2000, consisted of the following:
Bills rediscounted
Borrowings from the Bank of Japan and other financial institutions
Subordinated debt
Other
Total
Millions of yen
2001
2000
¥3,320,493
1,287,700
¥2,283,799
295,700
¥4,608,193
¥2,579,499
Millions of yen
2001
2000
¥003,914
—
3,756
—
193,736
¥146,536
256
—
3
213,909
¥201,407
¥360,706
Millions of yen
2001
2000
¥0,020,465
478,748
503,364
135,726
¥ 23,053
559,519
716,237
209,972
¥1,138,305
¥1,508,783
Millions of
U.S. dollars
2001
$26,799
10,393
$37,192
Millions of
U.S. dollars
2001
$0,031
—
30
—
1,563
$1,625
Millions of
U.S. dollars
2001
$0,165
3,863
4,062
1,095
$9,187
The repayment schedule within five years on borrowed money as of March 31, 2001, is shown as follows:
Millions of yen
One year or less
One to two years
Two to three years
Three to four years
Four to five years
¥296,200
¥80,670
¥70,546
¥139,777
¥167,847
One year or less
One to two years
Two to three years
Three to four years
Four to five years
$2,390
$651
$569
$1,128
$1,354
Millions of U.S. dollars
14. Bonds
Bonds as of March 31, 2001 and 2000, consisted of the following:
Subordinated bonds
Other
Total
Millions of yen
2001
2000
¥0,758,426
374,942
¥0,877,767
175,586
¥1,133,368
¥1,053,354
Millions of
U.S. dollars
2001
$6,121
3,026
$9,147
The redemption schedule within five years on bonds as of March 31, 2001, is shown as follows:
Millions of yen
One year or less
One to two years
Two to three years
Three to four years
Four to five years
¥1,079
¥ —
¥29,039
¥170,539
¥126,453
One year or less
One to two years
Two to three years
Three to four years
Four to five years
$8
$ —
$234
$1,376
$1,020
Millions of U.S. dollars
82
15. Convertible Bonds
Convertible bonds as of March 31, 2001 and 2000, consisted of the following:
2.625% U.S. dollar convertible bonds due 2003
Total
16. Other Liabilities
Other liabilities as of March 31, 2001 and 2000, consisted of the following:
Accrued expenses
Unearned income
Income taxes payable
Trading account payable
Pledged money for securities lending transactions
Other
Total
Millions of yen
2001
¥ —
¥ —
2000
¥95
¥95
Millions of yen
2001
2000
¥0,170,796
95,407
11,673
400,651
283,686
1,334,578
¥ 202,906
97,681
8,325
988,801
1,081,122
2,175,041
¥2,296,793
¥4,553,878
Other includes delivered money due to merger of ¥17,853 million ($144 million) as of March 31, 2001.
17. Other Reserves
Other reserves as of March 31, 2001 and 2000, consisted of the following:
Reserve for contingent liabilities from financial futures transactions
Reserve for contingent liabilities from securities transactions
Total
18. Acceptances and Guarantees
Acceptances and guarantees as of March 31, 2001 and 2000, consisted of the following:
Millions of yen
2001
¥009
633
¥643
2000
¥009
503
¥513
Acceptances
Letters of credit
Guarantees
Total
Millions of yen
2001
2000
¥0,017,939
183,423
1,762,710
¥ 31,909
178,131
1,282,586
¥1,964,073
¥1,492,628
Millions of
U.S. dollars
2001
$ —
$ —
Millions of
U.S. dollars
2001
$01,378
770
94
3,233
2,289
10,771
$18,537
Millions of
U.S. dollars
2001
$0
5
$5
Millions of
U.S. dollars
2001
$00,144
1,480
14,226
$15,852
All contingent liabilities arising in connection with customers’
foreign trade and other transactions are classified under
acceptances and guarantees. A contra account, customers’
liabilities for acceptances and guarantees, is classified as an asset
representing the Bank and its subsidiaries’ right of indemnity from
customers.
83
19. Capital Stock and Capital Surplus
The authorized number of shares of capital stock (common stock
and preferred stock) as of March 31, 2001, was as follows:
(i) 10,000,000 thousand common shares, voting and ranking
equally with any other class of shares, except preferred
shares, with respect to payment of dividends and distributions
on liquidation or closing of the Bank.
(ii) 1,027,577 thousand preferred shares, nonvoting and ranking
prior to common shares with respect to payment of dividends
and distributions on liquidation or closing of the Bank. The
dividend rate, redemption and conversion rights, if any, are to
be determined prior to issuance by the Board of Directors.
The Bank is authorized to repurchase, at management’s
discretion, up to 350 million shares of the Bank’s stock for
the purpose of canceling shares by crediting them against
retained earnings.
The changes in the capital stock and capital surplus accounts for the years ended March 31, 2001 and 2000, were as follows:
Millions of yen
Common stock
Preferred stock
Capital surplus
Shares
(thousands)
Stated
value
Shares
(thousands)
Stated
value
4,083,121
34,175
¥631,399
8,535
811,307
(8,535)
¥411,307
(8,535)
4,117,297
780
639,934
195
802,772
(195)
402,772
(195)
Stated
value
¥899,521
—
899,521
—
4,118,077 ¥640,129
802,577 ¥402,577
¥899,521
— $005,166
— $003,249
$007,260
Unless previously converted at the option of Series II preferred
stockholders, all outstanding Series II preferred shares will be
mandatorily exchanged for fully paid shares of common stock of
the Bank on October 1, 2001, at the number of common shares
calculated by dividing ¥2,000 by the average market price per
share during a certain period immediately preceding October 1,
2001.
The Series III preferred stockholders are entitled to priority as
to the payment of dividends and as to distributions on liquidation
of the Bank, ranking equally with Series II preferred shares, to
common stock of the Bank, to receive noncumulative dividends of
¥13.70 and a distribution of ¥1,000 per preferred share. Series III
preferred shares are convertible on or after October 1, 2002, and
up to and including September 30, 2009, at the option of stock-
holders, into fully paid shares of common stock of the Bank.
The Bank has the following stock option plan for the Bank’s direc-
tors and certain employees:
A plan provides for granting options to directors and certain
employees to purchase up to 279 thousand shares of the Bank’s
common stock in the period from June 30, 2001 to June 29,
2009. The issue price of the stock is ¥674 per share.
Another plan provides for granting options to directors and
certain employees to purchase up to 291 thousand shares of the
Bank’s common stock in the period from June 30, 2002 to June
29, 2010. The issue price of the stock is ¥772 per share.
March 31, 1999
Conversion of preferred stocks
March 31, 2000
Conversion of preferred stocks
March 31, 2001
Millions of U.S. dollars
Under the Japanese Commercial Code (the “Code”), at least 50%
of the issue price of new shares, with a minimum of the par value
thereof, is required to be designated as stated capital. The portion
which is to be designated as stated capital is determined by
resolution of the Board of Directors. Proceeds in excess of the
amounts designated as stated capital have been credited to
capital surplus.
(i)
(ii)
Under the Code,
the Bank may, by resolution of the stockholders, transfer a
portion of retained earnings available for dividends to the
capital stock account, and
the Bank may, by resolution of the Board of Directors, issue
new shares of common stock to the existing stockholders
without consideration to the extent that the amount calculated
by multiplying the number of outstanding shares after the issu-
ance by par value per share does not exceed the stated capi-
tal, or that the amount calculated by dividing the total amount
of stockholders’ equity by the number of outstanding shares
after the issuance shall not be less than ¥50. These issuances
of the new shares are treated as stock splits.
Holders of Series II preferred shares issued on October 1,
1996, are entitled to priority as to the payment of dividends and
as to distributions on liquidation of the Bank to common stock of
the Bank, to receive noncumulative dividends of ¥15 and a
distribution of ¥2,000 per preferred share.
Series II preferred shares are convertible on or after October
1, 1997, and up to and including September 30, 2001, at the
option of the stockholders, into fully paid shares of common stock
of the Bank at an initial exchange price of ¥1,122.
84
20. Retained Earnings
Earned surplus reserve as of March 31, 2001 and 2000, is included in retained earnings. The changes for the years ended March 31,
2001 and 2000, were as follows:
Balance at beginning of year
Appropriation of retained earnings
Balance at end of year
Millions of yen
2001
2000
¥198,161
(2,100)
¥196,060
¥164,329
33,832
¥198,161
Millions of
U.S. dollars
2001
$1,599
(16)
$1,582
Under the Banking Law of Japan, an amount equivalent to at least
20% of any distribution of profits must be appropriated as an
earned surplus reserve until such reserve equals 100% of stated
capital. This reserve is not available for dividends, but may be
used to reduce a deficit by resolution of the stockholders or may
be transferred to the capital stock account by resolution of the
Board of Directors.
21. Other Interest Income
The composition of other interest income for the years ended March 31, 2001 and 2000, was as follows:
Deposits with banks
Interest rate swaps
Other
Total
Millions of yen
2001
2000
¥100,750
—
71,638
¥172,389
¥ 25,884
371,105
117,128
¥514,118
Millions of
U.S. dollars
2001
$0,813
—
578
$1,391
Income and expenses relating to derivative transactions that meet the criteria for hedge accounting are presented net by account, which
represents a change from the prior accounting that presented net by transaction.
22. Other Operating Income
Other operating income for the years ended March 31, 2001 and 2000, was as follows:
Gains on foreign exchange transactions
Gains on sales of bonds
Gains on redemption of bonds
Other
Total
23. Other Income
Other income for the years ended March 31, 2001 and 2000, was as follows:
Gains on sales of stocks
Gains on money held in trust
Gains on disposition of premises and equipment
Collection of written-off claims
Net income from nonconsolidated entities by the equity method
Gains on exemption of obligation
Gains on securities contributed to employee retirement benefit trust
Gains on stock-related derivative transactions
Other
Total
Millions of yen
2001
¥17,015
16,043
310
64,251
¥97,621
2000
¥31,714
22,206
3,690
41,650
¥99,261
Millions of yen
2001
2000
¥175,756
942
3,957
1,947
7,883
44,525
29,602
43,661
23,815
¥332,094
¥427,122
471
7,754
1,848
—
—
—
—
17,998
¥455,196
Millions of
U.S. dollars
2001
$137
129
2
518
$787
Millions of
U.S. dollars
2001
$1,418
7
31
15
63
359
238
352
192
$2,680
85
24. Transfer from Other Reserves
Transfer from other reserves for the years ended March 31, 2001 and 2000, was as follows:
Reserve for contingent liabilities from securities transactions.
Total
25. Other Interest Expenses
Other interest expenses for the years ended March 31, 2001 and 2000, was as follows:
Convertible bonds
Interest rate swaps
Other
Total
Millions of yen
2001
¥ —
¥ —
2000
¥3
¥3
Millions of yen
2001
2000
¥00,002
18,606
69,371
¥87,979
¥ 17
370,907
119,530
¥490,455
Millions of
U.S. dollars
2001
$ —
$ —
Millions of
U.S. dollars
2001
$000
150
559
$710
Income and expenses relating to derivative transactions that meet the criteria for hedge accounting are presented net by account, which
represents a change from the prior accounting that presented net by transaction.
26. Other Operating Expenses
Other operating expenses for the years ended March 31, 2001 and 2000, was as follows:
Losses on sales of bonds
Losses on redemption of bonds
Losses on devaluation of bonds
Other
Total
Millions of yen
2001
2000
¥04,710
2,290
395
48,074
¥55,471
¥15,510
6,262
475
45,635
¥67,883
27. General and Administrative Expenses
General and administrative expenses for the years ended March 31, 2001 and 2000, was as follows:
Salaries and welfare expenses
Retirement benefits
Depreciation
Rent and lease expenses
Taxes and public impositions
Other
Total
Millions of yen
2001
2000
¥218,548
21,689
35,123
44,785
24,314
146,160
¥221,317
32,611
35,029
44,793
25,430
128,289
¥490,621
¥487,472
Millions of
U.S. dollars
2001
$038
18
3
388
$447
Millions of
U.S. dollars
2001
$1,763
175
283
361
196
1,179
$3,959
Other includes cost of research and development of ¥212 million ($1 million) and ¥225 million for fiscal 2000 and 1999, respectively.
86
28. Other Expenses
Other expenses for the years ended March 31, 2001 and 2000, was as follows:
Write-offs of loans
Losses on sales of stocks and other securities
Losses on devaluation of stocks and other securities
Losses on money held in trust
Losses on disposition of premises and equipment
Losses on disposal of loans at a subsidiary
Amortization of unrecognized net transition obligation for employee
retirement benefit
Other
Millions of yen
2001
2000
¥257,762
44,653
57,621
405
22,767
40,354
¥146,374
50,925
33,255
1,097
19,964
—
39,135
116,196
—
187,026
Millions of
U.S. dollars
2001
$2,080
360
465
3
183
325
315
937
Total
¥578,896
¥438,643
$4,672
Other includes provisions for possible losses on loans sold of ¥55,905 million and equity in losses of affiliates of ¥1,487 million for fiscal
1999.
29. Transfer to Other Reserves
Transfer to other reserves for the years ended March 31, 2001 and 2000, was as follows:
Reserve for contingent liabilities from financial futures transactions
Reserve for contingent liabilities from securities transactions
Total
30. Income Taxes
The Bank is subject to a number of taxes based on income such
as corporation tax, inhabitants tax, and enterprise tax which, in the
aggregate, resulted in a normal Japanese statutory tax rate of
approximately 39.62% for fiscal 2000, and 42.05% for fiscal
1999.
The actual effective tax rates for fiscal 2000 and 1999, as
shown below, differed from the normal Japanese statutory rate
due to a number of factors, including, among others, (1) certain
expenses permanently not deductible for tax purposes, (2) the new
Income taxes (corporation, inhabitants and enterprise) (a)
Income before income taxes and minority interests (b)
Actual effective tax rates ((a) / (b))
Millions of yen
2001
¥ —
2
¥ )2
2000
¥ 0
—
¥ 0
Millions of
U.S. dollars
2001
$ —
0
$ )0
establishment of Tokyo Metropolitan Government’s ordinance con-
cerning the special treatment for the standard of enterprise taxes
to banking industries, (3) the new establishment of the Osaka
Prefectural Government’s ordinance concerning the special treat-
ment for the standard of enterprise taxes to banking industries,
(4) different tax rates for the subsidiaries outside Japan, (5) valua-
tion allowance for deferred income tax assets and (6) dividend
excluded from taxable income in fiscal 1999.
Millions of yen
2001
2000
¥077,991
¥132,046
59.0%.
¥082,079
¥126,139
65.0%.
Millions of
U.S. dollars
2001
$0,629
$1,065
59.0%.
87
The tax effects of significant temporary differences and loss carryforwards, which resulted in deferred tax assets and liabilities at March
31, 2001 and 2000, were as follows:
Deferred tax assets:
Reserve for possible loan losses
Net operating loss carryforwards
Other*
Subtotal
Valuation allowance
Total
Deferred tax liabilities:
Gains on securities contributed to employee retirement benefit trust
Reserve for losses on overseas investments
Other
Total
Net deferred tax assets
Millions of yen
2001
2000
Millions of
U.S. dollars
2001
¥397,704
120,891
92,703
¥611,300
(34,317)
¥440,289
90,826
88,352
¥619,467
(7,749)
¥576,982
¥611,718
¥011,604
—
7,513
19,117
¥00000—.
24
271
295
¥557,864
¥611,423
$3,209
975
748
$4,933
(276)
$4,656
$0,093
—
60
154
$4,502
* The following items are included in Other of Deferred tax assets for the year ended March 31, 2001.
Reserve for possible losses on loans sold
Reserve for employee retirement benefit
Losses on devaluation of stocks and other securities
¥27,783 ($224 million)
26,437 ($213 million)
15,697 ($126 million)
Due to the establishment of the Tokyo Metropolitan Government’s
ordinance concerning the special treatment for the standard of
enterprise taxes to banking industries on March 31, 2000, the nor-
mal statutory tax rate for the computation of deferred tax assets
and liabilities decreased from 42.05% to 39.62%. This change
decreased the amount of deferred tax assets by ¥35,791 million
and increased deferred tax in fiscal 1999 by the same amount.
The amount of deferred tax liabilities for land revaluation
decreased by ¥1,968 million as a result of the revaluation and
increased the land revaluation excess by the same amount.
Due to the establishment of the Osaka Prefectural
Government’s ordinance concerning the special treatment for the
standard of enterprise taxes to banking industries on June 9,
2000, the normal statutory tax rate for the computation of
deferred tax assets and liabilities decreased from 39.62% to
39.20%. This change decreased the amount of deferred tax
assets and deferred tax liabilities for land revaluation by ¥5,616
million ($45 million) and ¥294 million ($2 million), respectively.
Enterprise taxes other than those relating to income are
included in other expenses. Effective April 1, 2000, the Special
Ordinance Concerning Taxation Standard for Enterprise Taxes in
Relation to Banks in the Tokyo Metropolis (Tokyo Metropolis
Ordinance 145 of April 1, 2000) was enacted, and enterprise
taxes in Tokyo, which were included in income taxes, current for
the prior period, are now included in other expenses in the amount
of ¥8,733 million ($70 million).
31. Reserve for Employee Retirement Benefit
(1) Outline of retirement benefit
The Bank and consolidated subsidiaries in Japan have contributory
funded defined benefit pension plans, such as contributory pension
plans, qualified pension plans and lump-sum severance indemnity
plans. They may grant additional benefit in cases where certain
requirements are met when employees retire.
The Bank contributed certain marketable equity securities to
an employee retirement benefit trust.
At March 31, 2001, the Bank and The Minato Bank, Ltd. have
contributed funded defined benefit pension plans. Sakura Friend
Securities Co., Ltd. and SAKURA K.C.S. Corporation have qualified
pension plans. The Bank and most subsidiaries in Japan have
lump-sum severance indemnity plans.
88
(2) Projected benefit obligation
Information on projected benefit obligation and others at March 31, 2001 is shown as follows:
Projected benefit obligation
Pension assets
Unfunded projected benefit obligation
Unrecognized net transition obligation
Unrecognized actuarial differences
Unrecognized prior service cost
Net amount recorded on the consolidated balance sheets
Reserve for employee retirement benefit
(3) Pension expenses
Service cost
Interest cost on projected benefit obligation
Expected return on plan assets
Amortization of net transition obligation
Other
Pension expenses
Millions of yen
2001
¥(645,033)
390,318
¥(254,714)
153,676
70,985
(1,664)
¥0(31,716)
(31,716)
Millions of yen
2001
¥16,535
21,114
(20,536)
39,164
2,681
¥58,959
Millions of
U.S. dollars
2001
$(5,206)
3,150
$(2,055)
1,240
572
(13)
$0)(255)
(255)
Millions of
U.S. dollars
2001
$133
170
(165)
316
21
$475
(4) Assumptions
The principal assumptions used in determining benefit obligation and pension expenses at or for the year ended March 31, 2001, were as
follows:
Discount rate
Expected rate of return on plan assets
Term to amortize prior service cost
Term to amortize actuarial differences
Term to amortize net transition obligation
2001
1.7% to 3.5%
2.0% to 5.6%
Mainly 11 years
Mainly 11 years
Mainly 5 years
The estimated amount of all retirement benefits to be paid at the future retirement date is allocated equally to each service year using the
estimated number of total service years.
32. Leases
Financing leases where the ownership of the property is not deemed to transfer to the lessee as of March 31, 2001 and 2000, consisted of
the following:
(i) As lessee
Acquisition cost, accumulated depreciation and net balance of the leased property as of March 31, 2001 and 2000, were as follows:
Acquisition cost
Accumulated depreciation
Net balance
Acquisition cost includes the imputed interest expense portion because of its immateriality.
Millions of yen
2001
¥10,527
4,216
¥06,311
2000
¥7,078
5,324
¥1,754
Millions of
U.S. dollars
2001
$84
34
$50
89
Obligations as of March 31, 2001 and 2000, were as follows:
Due within one year
Due after one year
Total
Millions of yen
2001
¥2,553
3,757
¥6,311
2000
¥1,060
693
¥1,754
Millions of
U.S. dollars
2001
$20
30
$50
The amount of obligations includes the imputed interest expenses portion because of its immateriality.
Total lease payments were ¥2,183 million ($17 million) and ¥1,847 million, and depreciation was ¥2,183 million ($17 million) and
¥1,847 million for the years ended March 31, 2001 and 2000, respectively. Depreciation was calculated based on the straight-line
method with zero residual value.
(ii) As lessor
Acquisition cost, accumulated depreciation and net balance of the leased property as of March 31, 2001 and 2000, were as follows:
Acquisition cost
Accumulated depreciation
Net balance
Future lease payment receivables as of March 31, 2001 and 2000, were as follows:
Due within one year
Due after one year
Total
Millions of yen
2001
2000
¥187,912
93,908
¥143,665
74,077
¥094,004
¥069,587
Millions of yen
2001
2000
¥034,949
78,938
¥113,887
¥31,004
63,428
¥94,432
Millions of
U.S. dollars
2001
$1,516
757
$0,758
Millions of
U.S. dollars
2001
$282
637
$919
The amount of future lease payment receivables includes the imputed interest income portion, because of its immateriality.
Total lease revenues were ¥32,980 million ($266 million) and ¥23,585 million, and depreciation was ¥25,416 million ($205 million)
and ¥14,642 million for the years ended March 31, 2001 and 2000, respectively.
Operating leases as of March 31, 2001 and 2000, consisted of the following:
(i) As lessee
The minimum rental commitments under noncancellable operating leases as of March 31, 2001 and 2000, were as follows:
Due within one year
Due after one year
Total
Millions of yen
2001
¥1,124
6,533
¥7,657
2000
¥ 1,344
8,693
¥10,038
Millions of
U.S. dollars
2001
$09
52
$61
(ii) As lessor
There were no minimum rental commitments receivable under noncancelable operating leases as of March 31, 2001 and 2000.
33. Loan Commitments
Commitment line contracts on overdrafts and loans are agree-
ments to lend to customers when they apply for borrowing, to a
prescribed amount, as long as there is no violation of any condi-
tion established in the contracts. The amount of unused commit-
ments was ¥6,912,401 million ($55,790 million), and the amount
of unused commitments whose original contract terms are within
one year or unconditionally cancelable at any time was
¥6,322,207 million ($51,026 million) as of March 31, 2001. Since
many of these commitments are expected to expire without being
drawn upon, the total amount of unused commitments does not
90
necessarily represent actual future cash flow requirements. Many
of these commitments have clauses that the Bank and consoli-
dated subsidiaries can reject an application from customers or
reduce the contract amounts in case economic conditions are
changed, the Bank and consolidated subsidiaries need to secure
claims and other events occur. In addition, the Bank and
consolidated subsidiaries request the customers to pledge
collateral such as premises and securities at the conclusion of the
contracts, and take necessary measures such as grasping cus-
tomers’ financial positions, revising contracts when the need
arises and securing claims after the conclusion of the contracts.
34. Market Value of Marketable Securities
(1) Securities
The market value of marketable securities as of March 31, 2001, was as follows:
In addition to securities in the consolidated balance sheets, trading securities, securities related to trading transactions, negotiable certificates of deposit
and commercial paper within trading assets, negotiable certificates of deposit in cash and due from banks, and commercial paper within commercial paper
and other debt purchased are included in the following amounts:
(a) Securities classified as trading
March 31, 2001
Securities classified as trading
March 31, 2001
Securities classified as trading
(b) Bonds classified as held-to-maturity with market value
Millions of yen
Consolidated balance
sheet amount
¥469,204
Gains included in
profit/loss
¥244
Millions of U.S. dollars
Consolidated balance
sheet amount
$3,786
Gains included in
profit/loss
$1
March 31, 2001
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
March 31, 2001
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
Consolidated balance
sheet amount
Market value
Millions of yen
Net unrealized
gains (losses)
Unrealized gains
Unrealized losses
¥14,295
—
—
—
¥14,295
¥14,298
—
—
—
¥14,298
¥2
—
—
—
¥2
¥2
—
—
—
¥2
¥0
—
—
—
¥0
Consolidated balance
sheet amount
Market value
Net unrealized
gains (losses)
Unrealized gains
Unrealized losses
Millions of U.S. dollars
$115
—
—
—
$115
$115
—
—
—
$115
$0
—
—
—
$0
$0
—
—
—
$0
$0
—
—
—
$0
Note: Market value is calculated by using market prices at fiscal year-end.
91
(c) Other securities with market value
Market value is not reflected in the consolidated financial statements.
Summary information on other securities that have market value are shown in the following table:
March 31, 2001
Stocks
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
March 31, 2001
Stocks
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
Consolidated balance
sheet amount
¥3,782,106
5,182,955
4,888,857
16,589
277,507
899,034
Market value
¥3,420,904
5,207,684
4,908,522
16,977
282,184
882,663
Millions of yen
Net unrealized
gains (losses)
¥(361,202)
24,728
19,664
387
4,676
(16,371)
Unrealized gains
Unrealized losses
¥139,239
27,743
22,294
387
5,061
3,560
¥500,442
3,014
2,629
0
385
19,931
¥9,864,096
¥9,511,251
¥(352,844)
¥170,544
¥523,388
Consolidated balance
sheet amount
Market value
Net unrealized
gains (losses)
Unrealized gains
Unrealized losses
Millions of U.S. dollars
$30,525
41,831
39,458
133
2,239
7,256
$79,613
$27,610
42,031
39,616
137
2,277
7,123
$76,765
$(2,915)
199
158
3
37
(132)
$(2,847)
$1,123
223
179
3
40
28
$1,376
$4,039
24
21
0
3
160
$4,224
Note: For the Bank’s stocks, market value is based on the average market price during one month before the fiscal year-end, and for the others the market
prices at the balance sheet date.
(d) Bonds sold during fiscal 2000 that are classified as held-to-maturity
There are no corresponding items.
(e) Other securities sold during fiscal 2000
March 31, 2001
Other securities
March 31, 2001
Other securities
(f) Securities with no available market value
March 31, 2001
Bonds classified as held-to-maturity:
Nonlisted foreign securities
Other securities:
Nonlisted bonds
Nonlisted stocks (except OTC stocks)
Nonlisted foreign securities
(g) Change of classification of securities
There are no corresponding items.
92
Millions of yen
Sales amount
Gains on sale
Losses on sale
¥9,773,852
¥192,631
¥42,095
Millions of U.S. dollars
Sales amount
Gains on sale
Losses on sale
$78,885
$1,554
$339
Millions of yen
Millions of
U.S. dollars
Consolidated balance
sheet amount
Consolidated balance
sheet amount
¥007,094
$0,057
315,565
117,140
63,341
2,546
945
511
(h) Redemption schedule on other securities with maturities and bonds classified as held-to-maturity
Millions of yen
1 year or less
1 to 5 years
5 to 10 years
Over 10 years
¥2,428,170
2,372,038
2,749
53,382
406,355
¥2,031,335
1,612,608
46,824
371,903
277,212
¥0,994,009
859,706
15,843
118,459
151,917
¥059,300
58,800
—
500
147,428
¥2,834,526
¥2,308,547
¥1,145,927
¥206,728
1 year or less
1 to 5 years
5 to 10 years
Over 10 years
Millions of U.S. dollars
$19,597
19,144
22
430
3,279
$16,394
13,015
377
3,001
2,237
$22,877
$18,632
$8,022
6,938
127
956
1,226
$9,248
$0,478
474
—
4
1,189
$1,668
March 31, 2001
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
March 31, 2001
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
(2) Money held in trust
(a) Money held in trust classified as trading
There are no corresponding items.
(b) Money held in trust classified as held-to-maturity
There are no corresponding items.
(c) Other money held in trust (money held in trust that are classified neither as trading nor as held-to-maturity)
Market value is not reflected on consolidated financial statements.
Summary information on other money held in trust that have market value are shown in the following table:
March 31, 2001
Other money held in trust
March 31, 2001
Other money held in trust
Consolidated balance
sheet amount
Market value
Millions of yen
Net unrealized
gains (losses)
Unrealized gains
Unrealized losses
¥22,208
¥22,677
¥468
¥494
¥25
Millions of U.S. dollars
Consolidated balance
sheet amount
Market value
Net unrealized
gains (losses)
Unrealized gains
Unrealized losses
$179
$183
$3
$3
$0
Note: Market value is calculated by using market prices at fiscal year-end.
93
(3) Net unrealized gains (losses) on other securities and other money held in trust
If other securities and other money held in trust were evaluated by market value, net unrealized gains (losses) on valuation would be as
shown in the following table:
March 31, 2001
Difference (Market value – Balance sheet amount)
Other securities
Other money held in trust
(+) Deferred tax assets
Net unrealized gains (losses) on valuation (before following adjustment)
(–) Minority interests
(+) Parent company’s share in net unrealized gains (losses) on valuation of other
securities held by affiliates accounted for by the equity method
Millions of yen
2001
¥(352,375)
(352,844)
468
138,131
(214,244)
(2,173)
(42)
Millions of
U.S. dollars
2001
$(2,844)
(2,847)
3
1,114
(1,729)
(17)
(0)
Net unrealized gains (losses) on valuation
¥(212,113)
$(1,711)
(Appendix) Previous Year’s Information on Market Value of Marketable Securities
(1) Securities
The market value of marketable securities as of March 31, 2000, was as follows:
March 31, 2000
Bonds
Stocks
Others
Total
Book value
Market value
¥ 485,177
3,361,262
461,115
¥ 460,384
3,977,851
461,187
Millions of yen
Net unrealized
gains (losses)
¥ (24,793)
616,588
72
Unrealized gains
Unrealized losses
¥ 3,490
1,011,530
14,540
¥ 28,284
394,941
14,468
¥4,307,555
¥4,899,422
¥591,866
¥1,029,561
¥437,694
Notes: 1. Figures in the above table are for marketable securities listed on securities exchanges. The fair market value of listed bonds is calculated mainly
using the closing prices on the Tokyo Stock Exchange at the consolidated balance sheet date or the prices calculated under the yield published
on the Japan Securities Dealers Association’s Indication Chart in most cases. Other listed securities are calculated primarily using the closing
price on the Tokyo Stock Exchange at the balance sheet date. Others are mainly foreign bonds.
2. Listed below are figures calculated to correspond to the fair market value of unlisted securities if it is possible to calculate.
March 31, 2000
Bonds
Stocks
Others
Total
Book value
Market value
¥1,571,230
¥1,569,330
37,807
100,291
101,720
101,176
¥1,709,330
¥1,772,226
Millions of yen
Net unrealized
gains (losses)
¥ (1,900)
63,913
884
¥62,896
Unrealized gains Unrealized losses
¥ 5,331
71,806
2,756
¥79,894
¥ 7,231
7,893
1,872
¥16,998
Values of non-listed securities are calculated using the Japan Securities Dealers Association’s figures for securities traded over the counter,
using the prices calculated under the yield published on the Japan Securities Dealers Association’s Indication Chart for public bonds, and using
standard prices for the beneficiary certificate of securities investment trusts. Others are mainly beneficiary certificates of securities investment
trusts.
3. Securities excluded from the above information on values of the consolidated balance sheet are principally as follows:
March 31, 2000
Bonds
Stocks
Others
Millions of yen
Book value
¥400,413
116,750
394,696
4. Figures on trading account securities and securities related to trading transactions are omitted from the above tables because those securities
are valued at market prices and evaluation gains (losses) are stated in the consolidated statements of income.
94
(2) Money held in trust
March 31, 2000
Money held in trust
Book value
Market value
Millions of yen
Net unrealized
gains (losses)
Unrealized gains
Unrealized losses
¥72,581
¥72,887
¥305
¥542
¥237
Notes: The market value represents the prices that the fiduciaries of money held in trust calculated in accordance with the following methods:
1. The fair market value of listed securities is calculated mainly using the closing prices on the Tokyo Stock Exchange at the consolidated balance
sheet date.
2. Values of non-listed stocks are calculated using the Japan Securities Dealers Association’s figures for securities traded over the counter.
35. Derivative Transactions
(1) Interest Rate Transactions
March 31, 2001
Listed transactions:
Futures contracts:
Sold
Bought
Options:
Sold
Bought
Unlisted transactions:
Forward rate agreement:
Sold
Bought
Swaps:
Millions of yen
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
¥ 0,059,123
262,802
¥0000000—.
—
¥0,00(431)
2,151
¥(00(431)
2,151
2,029,981
622,669
—
—
825
519
655
258
1,039,613
1,629,713
10,000
—
344
(1,589)
344
(1,589)
Receivable fixed rate/Payable floating rate
Receivable floating rate/Payable fixed rate
Receivable floating rate/Payable floating rate, etc.
43,061,905
40,592,544
2,160,512
25,195,263
24,860,084
769,755
755,835
(773,704)
(17,494)
755,835
(773,704)
(17,494)
Others:
Sold
Bought
Total
3,267,592
2,444,194
2,954,530
2,191,101
23,119
27,933
(6,253)
19,066
¥ / ¥ /
¥0(30,380)
¥(21,161)
95
(continued)
March 31, 2001
Listed transactions:
Futures contracts:
Sold
Bought
Options:
Sold
Bought
Unlisted transactions:
Forward rate agreement:
Sold
Bought
Swaps:
Receivable fixed rate/Payable floating rate
Receivable floating rate/Payable fixed rate
Receivable floating rate/Payable floating rate, etc.
Others:
Sold
Bought
Total
Millions of U.S. dollars
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
$000,477
2,121
$,0000—.
—
$0,00(3)
17
$(000(3)
17
16,384
5,025
8,390
13,153
347,553
327,623
17,437
26,372
19,727
—
—
80
—
203,351
200,646
6,212
23,846
17,684
6
4
2
(12)
6,100
(6,244)
(141)
186
225
5
2
2
(12)
6,100
(6,244)
(141)
(50)
153
$ /
$ , /
$0,(245)
$0,(170)
Notes: 1. The above transactions are valuated by market value and the valuated gains (losses) are accounted for in the consolidated statements of
income.
Derivative transactions to which hedge accounting method was applied are not included in the figures above.
2. Market value of transactions listed on exchange is calculated mainly using the closing prices on the Tokyo International Financial Futures
Exchange and others.
Market value of OTC transactions is calculated mainly using discounted present value and option pricing models.
3. Others consists of cap, floor and swaption transactions.
(2) Currency Derivatives
March 31, 2001
Unlisted transactions:
Currency swaps
Total
March 31, 2001
Unlisted transactions:
Currency swaps
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
¥4,309,192
¥3,169,586
¥0,000,00/.
¥0,000,00/.
¥1,482
¥1,482
¥1,482
¥1,482
Millions of U.S. dollars
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
$34,779
$25,581
$0),,00/.
$0,000/.
$11
$11
$11
$11
Notes: 1. The above transactions are valuated by market value and the valuated gains (losses) are accounted for in the consolidated statements of
income.
2. Market value is calculated mainly discounted present value.
96
(continued)
3. Currency swaps whose profit and loss are recognized on accrual basis based on ‘Temporary Treatment of Auditing on Continuous Adoption of
the Accounting Standard for Foreign Currency Transactions in Banking Industry’ (published by JICPA, April 2000) are excluded from the previous
table.
The contract amount to currency swaps which are recognized on accrual basis are as follows:
March 31, 2001
Unlisted transactions:
Currency swaps
March 31, 2001
Unlisted transactions:
Currency swaps
Contract
amount
Millions of yen
Market value
Net valuated
gains (losses)
¥1,833,414
¥(69,269)
¥(69,269)
Millions of U.S. dollars
Contract
amount
Market value
Net valuated
gains (losses)
$14,797
$(559)
$(559)
4. Forward foreign exchange and currency options which are of the following types are not included in the figures above:
1) Those that are revaluated at year-end and the revaluated gains (losses) are accounted for in the consolidated statements of income.
2) Those that were allotted to financial assets/liabilities by foreign currency and whose market values are already reflected in the amount of the
financial assets/liabilities on the consolidated balance sheets.
3) Those that were allotted to financial assets/liabilities by foreign currency and the financial assets/liabilities that are allotted to are eliminated in
the process of consolidation.
The contract amount of currency and foreign exchange related transactions which are revaluated at the consolidated balance sheet date are as
follows:
March 31, 2001
Unlisted transactions:
Forward foreign exchange contracts:
Sold
Bought
Currency options:
Sold
Bought
(3) Bond Derivatives
March 31, 2001
Listed transactions:
Futures contracts:
Sold
Bought
Total
Millions of yen
Contract
amount
Millions of
U.S. dollars
Contract
amount
¥4,296,653
5,633,384
694,904
689,497
$34,678
45,467
5,608
5,564
Millions of yen
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
¥00,188
23,066
¥ /
¥ —
—
¥ /
¥0)(6)
112
¥106
¥0)(6)
112
¥106
97
(continued)
March 31, 2001
Listed transactions:
Futures contracts:
Sold
Bought
Total
Millions of U.S. dollars
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
$001
186
$ /
$ —
—
$ /
$(0)
0
$(0
$(0)
0
$(0
Notes: 1. The above transactions are valuated by market value and the valuated gains (losses) are accounted for in the consolidated statements of
income.
Derivative transactions to which hedge accounting method was applied are not included in the figures above.
2. Market value of transactions listed on exchange is calculated mainly using the closing prices on the Tokyo Stock Exchange Market.
(4) Credit Derivative Transactions
March 31, 2001
Unlisted transactions:
Others:
Sold
Bought
Total
March 31, 2001
Unlisted transactions:
Others:
Sold
Bought
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
¥147
147
¥ /
¥ —
—
¥ /
¥(4)
6
¥(2
¥(4)
6
¥(2
Millions of U.S. dollars
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
$1
1
$/
$ —
—
$ /
$(0)
0
$(0
$(0)
0
$(0
Notes: 1. The above transactions are valuated by market value and the valuated gains (losses) are accounted for in the consolidated statements of
income.
2. Market value is calculated based on factors such as price of the relevant commodity and contract term using discounted present value and
option pricing models.
98
(Appendix) Previous Year’s Information on Derivative Transactions
Outstanding derivative financial instruments as of March 31, 2000, were as follows:
(1) Interest Rate-Related Transactions
March 31, 2000
Listed transactions:
Futures contracts:
Sold
Bought
Options:
Sold
Call
Option premiums
Put
Option premiums
Bought
Call
Option premiums
Put
Option premiums
Unlisted transactions:
Swaps:
Millions of yen
Contract amount
Total
Over
one year
Market value
Unrealized
gains (losses)
¥ 9,784,429
5,657,962
¥ 670,310
249,452
¥9,765,752
5,651,207
¥ 18,677
(6,754)
13,776,338
3,441
12,329,538
2,609
6,025,776
1,059
5,323,445
1,720
—
—
—
—
556
2,884
1,786
822
407
1,581
(652)
(139)
Receivable fixed rate/Payable floating rate
Receivable floating rate/Payable fixed rate
Receivable floating rate/Payable floating rate, etc.
34,478,328
24,638,127
25,024
15,236,759
8,588,126
17,796
573,908
(267,975)
(135)
573,908
(267,975)
(135)
Others:
Sold
Option premiums
Bought
Option premiums
Total
Notes: 1. Market values
609,287
2,688
123,982
1,429
599,271
113,966
1,148
1,539
827
(603)
¥ /
¥ /
¥ /
¥321,572
The market values listed represent the closing prices on the Tokyo International Financial Futures Exchange and other exchanges at the
consolidated balance sheet date.
The market values of unlisted transactions are calculated by using mainly the discounted present value or option pricing model.
2. Option premiums shown in this table are accounted for on the consolidated balance sheets.
3. “Others” consists of cap, floor and swaption transactions.
4. The market value and unrealized gains (losses) on interest swap transaction at March 31, 2000, include ¥343,651 million of accrued swap
interest that was stated in the consolidated statements of income.
99
5. Details of interest rate swap notional amounts according to time to maturity are as follows:
March 31, 2000
Receivable fixed rate/Payable floating rate
Receivable floating rate/Payable fixed rate
Millions of yen
One year
or less
More than one year
to three years
Over
three years
Total
¥19,241,568
¥12,494,950
¥2,741,809
¥34,478,328
16,050,001
5,586,090
3,002,035
24,638,127
Receivable floating rate/Payable floating rate, etc.
7,227
4,350
13,446
25,024
6. Derivative financial products transactions that are included in the trading account are not shown above because those transactions were valued
at their fair market prices and evaluation gains (losses) was included in the consolidated statements of income.
Contract amount included in the trading account are as follows:
Millions of yen
Contract
amount
Market value
¥ 422,513
¥ 422,244
585,857
583,533
1,891,590
260
2,560,186
446
736,133
173
1,332,250
279
23
231
27
126
678,521
1,324,902
678,458
1,325,226
34,706,694
32,590,848
1,636,745
3,411,883
9,329
3,077,923
4,886
385,949
(506,149)
(13,467)
21,935
58,646
March 31, 2000
Listed transactions:
Futures contracts:
Sold
Bought
Options:
Sold
Call
Option premiums
Put
Option premiums
Bought
Call
Option premiums
Put
Option premiums
Unlisted transactions:
Forward rate agreements:
Sold
Bought
Swaps:
Receivable fixed rate/Payable floating rate
Receivable floating rate/Payable fixed rate
Receivable floating rate/Payable floating rate, etc.
Others:
Sold
Option premiums
Bought
Option premiums
100
(2) Currency and Foreign Exchange-Related Transactions
March 31, 2000
Unlisted transactions:
Currency swaps:
U.S. dollar
Others
Notes: 1. Market values
Millions of yen
Contract amount
Total
Over
one year
Market value
Unrealized
gains (losses)
¥2,779,199
1,866,061
913,137
¥1,179,058
935,342
243,715
¥(54,273)
(43,375)
(10,897)
¥(54,273)
(43,375)
(10,897)
The market values are calculated by using discounted present value.
2. The market value or unrealized loss for currency swap transactions at March 31, 2000, includes ¥6,647 million (losses) of accrued swap inter-
est that was stated in the consolidated statements of income.
3. Derivative financial products transactions that are included in the trading account are not shown above because those transactions were valued
at their fair market prices and evaluation gains (losses) was included in the consolidated statements of income.
Contract amount included in the trading account is as follows:
March 31, 2000
Unlisted transactions:
Currency swaps:
U.S. dollar
German mark
Others
Millions of yen
Contract
amount
Market value
¥3,887,543
2,599,267
554,556
733,720
¥ (5,539)
(15,018)
(2,833)
12,312
4. Forward foreign exchange contracts, currency options and other currency-related derivative financial instruments are not shown here because
they were revalued at the consolidated balance sheet date and their gains (losses) were included in the consolidated statements of income, or
because they are reflected on the consolidated balance sheets as foreign currency denominated monetary assets and liabilities.
Contract amount of currency and foreign exchange related derivative financial instruments revalued at the consolidated balance sheet date are
as follows:
March 31, 2000
Listed transactions:
Currency futures:
Sold
Bought
Unlisted transactions:
Forward foreign exchange contracts:
Sold
Bought
Currency options:
Sold
Call
Option premiums
Put
Option premiums
Bought
Call
Option premiums
Put
Option premiums
Millions of yen
Contract
amount
¥ 356
20
¥2,185,551
3,697,674
188,930
4,105
170,453
3,600
156,601
2,368
178,950
4,473
101
(3) Equity-Related Transactions
March 31, 2000
Unlisted transactions:
Options:
Sold
Call
Option premiums
Put
Option premiums
Bought
Call
Option premiums
Put
Option premiums
Equity-related swaps
Total
Notes: 1. Market values
Millions of yen
Contract amount
Total
Over
one year
Market value
Unrealized
gains (losses)
¥ 198
1
—
198
1
—
897,438
¥ /
¥—
—
—
—
—
¥ /
¥ 0
¥ 1
—
0
—
(0)
—
(18,554)
—
(18,554)
¥ /
¥(18,554)
Market values are calculated by using the pricing method, based on the closing prices on the Tokyo Stock Exchange at the consolidated
balance sheet date.
2. Option premiums shown in this table are accounted for on the consolidated balance sheets.
3. Derivative financial products transactions that are included in trading account are not shown here because those transactions were valued at
their fair market prices and evaluation gains (losses) was included in the consolidated statements of income.
Contract amount included in trading account is as follows:
Millions of yen
Contract
amount
Market value
¥ 1,536
101
¥1,530
101
11,740
36
21,880
26
4,578
53
1,902
53
37
31
97
30
March 31, 2000
Listed transactions:
Stock index futures contracts:
Sold
Bought
Stock index options:
Sold
Call
Option premiums
Put
Option premiums
Bought
Call
Option premiums
Put
Option Premiums
102
(4) Bond-Related Transactions
March 31, 2000
Listed transactions:
Futures contracts:
Sold
Bought
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Unrealized
gains (losses)
¥74,904
—
¥ /
¥—
—
¥ /
¥76,182
—
¥ /
¥(1,277)
—
¥(1,277)
Notes: 1. The market values listed represent the closing prices on the Tokyo Stock Exchange and other exchanges at the consolidated balance sheet
date.
2. Derivative financial products transactions that are included in the trading account are not shown above because those transactions were valued
at their fair market prices and evaluation gains (losses) was included in the consolidated statements of income.
Contract amount included in the trading account is as follows:
March 31, 2000
Listed transactions:
Futures contracts:
Sold
Bought
Futures options:
Sold
Call
Option premiums
Put
Option premiums
Bought
Call
Option premiums
Put
Option premiums
Unlisted transactions:
Options:
Sold
Call
Option premiums
Put
Option premiums
Bought
Call
Option premiums
Put
Option premiums
Millions of yen
Contract
amount
Market value
¥28,726
35,094
¥28,818
35,147
838
5
8,580
11
4,477
16
37,370
90
—
—
21,670
251
29,272
167
7,837
51
2
7
11
14
—
118
106
14
103
36. Segment Information
(1) Business segment information
Some of the consolidated subsidiaries are engaged in securities,
trust, leasing and other businesses in addition to the commercial
(2) Geographic segment information
banking business. As those activities are not deemed material,
business segment information has not been disclosed.
Year ended
March 31, 2001
Operating income
Customers
Intersegment
Domestic
Americas
Europe
Millions of yen
Asia and
Oceania
Subtotal
Interarea
elimination
Consolidated
total
¥01,410,422
111,842
¥0,164,903
111,432
¥0,047,571
17,058
¥0,100,284 ¥01,723,182
278,864
38,530
¥,00000,0—. ¥01,723,182
—
(278,864)
Total
Operating expenses
1,522,264
1,771,347,019
276,336
259,322
64,630
74,385
138,815
133,426
2,002,047
1,814,154
(278,864)
(274,848)
1,723,182
1,539,306
Operating profit
Millions of U.S. dollars
¥00,175,245
$ 0,001,414
¥0,017,013
$0,000,137
¥000(9,755) ¥0,005,388 ¥00,187,892
$00000,(78) $0,000,043 $00,001,516
¥0,00(4,016) ¥00,183,876
$0,000,0(32) $ 1,484
Assets
Millions of U.S. dollars
¥47,434,438
$ 0,382,844
¥2,322,229
$ 18,742
¥1,279,831
$ 10,329
¥2,920,478 ¥53,956,977
$ 23,571 $00,435,488
¥(2,107,290) ¥51,849,687
$0,0(17,007) $ 418,480
Year ended
March 31, 2000
Operating income
Customers
Intersegment
Total
Operating expenses
Domestic
Americas
Europe
Millions of yen
Asia and
Oceania
Subtotal
Interarea
elimination
Consolidated
total
¥ 1,808,407
77,421
¥ 129,272
23,014
¥ 90,029
21,863
¥ 119,786
15,752
¥ 2,147,495
138,052
¥ —
(138,052)
¥ 2,147,495
—
1,885,829
1,772,018
152,286
143,625
111,893
109,852
135,539
122,775
2,285,548
2,148,272
(138,052)
(137,274)
2,147,495
2,010,998
Operating profit
¥ 113,810
¥ 8,661
¥ 2,040
¥ 12,764
¥ 137,276
¥ (778)
¥ 136,497
Assets
¥44,745,840
¥2,319,292
¥1,062,201
¥3,070,871
¥51,198,205
¥(2,702,596)
¥48,495,608
Notes: 1. The geographic segmentation is decided based on the degrees of following factors: geographic proximity, similarity of economic activities and
relationship of business activities among regions.
2. Americas includes the United States, Canada and others; Europe includes the United Kingdom, Germany and others; Asia and Oceania includes
Singapore, Hong Kong, Australia and others except Japan.
3. (a) As shown in Notes to consolidated financial statements, the Bank changed the depreciation method from the declining balance method to the
straight-line method from this fiscal year. Consequently, operating profit increased by ¥1,482 million ($11 million) in Japan, compared with
the prior accounting method.
(b) As shown in Notes to consolidated financial statements, accounting standard for employee retirement benefit was applied from the fiscal
year ended March 31, 2001. Consequently, operating profit increased by ¥9,558 million ($77 million) in Japan, compared with the prior
accounting method.
(c) As shown in Notes to consolidated financial statements, accounting standard for financial instruments was applied from the fiscal year ended
March 31, 2001, and the method to evaluate securities and derivatives and the method of hedge accounting were changed.
Consequently, operating profit increased by ¥35,427 million ($285 million) in Japan, by ¥572 million ($4 million) in Americas, and by ¥31
million ($0 million) in Europe, and by ¥114 million ($0 million) in Asia and Oceania, compared with prior accounting method.
Effective April 1, 2000, income and expenses relating to derivative transactions that meet the criteria for hedge accounting are presented net
by account, which has been changed from prior accounting that presented net by transaction. As a result, operating income and expenses
decreased by ¥132,394 million ($1,068 million) in Japan, by ¥4,340 million ($35 million) in Americas, by ¥14,269 million ($115 million) in
Europe, and by ¥4,580 million ($36 million) in Asia and Oceania for 2001 compared with the prior accounting method.
(d) As shown in Notes to consolidated financial statements, enterprise tax other than relating to pre-tax income was included in operating
expenses. Effective April 1, 2000, the Special ordinance concerning taxation standard for enterprise taxes in relation to banks in the Tokyo
Metropolis (Tokyo Metropolis Ordinance 145 of April 1, 2000) was enacted, and the enterprise tax in Tokyo, which was not included in
operating expenses for prior period, was included in operating expenses in Japan by the amount of ¥8,733 million ($70 million) for 2001.
Operating income or expenses represent total income or expenses
excluding Gains or losses on dispositions of premises and equip-
ment, Collection of written-off claims, Transfer to (from) Other
reserves, Gains on exemption of obligation, Losses on disposal of
loans at a subsidiary and Amortization of unrecognized net transi-
tion obligation for employee retirement benefit.
104
(3) Operating income from overseas operations
(i) Operating income from overseas operations
(ii) Consolidated operating income
(i) / (ii)
Millions of yen
2001
2000
¥0,312,760
1,723,182
18.2%.
¥0,339,087
2,147,495
15.7%.
Millions of
U.S. dollars
2001
$02,524
13,907
18.2%.
From fiscal 1999, operating income from overseas operations is listed in place of operating income from international operations to
express foreign trading activities more correctly. Operating income from overseas operations comprises transactions at the Bank’s over-
seas branches and income from overseas consolidated subsidiaries. The composition of this substantial volume of transactions is not
broken down by counterparty and, therefore, data by region and country have not been included.
37. Subsequent Events
The Bank merged with The Sumitomo Bank, Limited and transferred its assets, liabilities, all the claims and obligations and employees to
The Sumitomo Bank, Limited as of April 1, 2001.
105
Independent Certified Public Accountants’ Report
106
Nonconsolidated Balance Sheets
(Supplemental Information)
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited)
March 31, 2001 and 2000
Assets
Cash and due from banks
Call loans and bills bought
Commercial paper and other debt purchased
Trading assets
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Premises and equipment
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Millions of yen
2001
2000
¥02,730,973 ¥ 2,095,204
197,492
640
1,104,111
72,381
6,911,602
31,939,952
316,149
1,156,771
317,774
583,559
2,524,300
(660,454)
86,437
3,097
565,596
22,208
10,199,669
30,575,498
262,590
992,360
286,354
524,199
2,637,631
(424,799)
Millions of
U.S. dollars
2001
$022,041
697
25
4,564
179
82,321
246,775
2,119
8,009
2,311
4,230
21,288
(3,428)
Total assets
¥48,461,818 ¥46,559,485
$391,136
Liabilities and stockholders’ equity
Liabilities
Deposits
Call money and bills sold
Commercial paper
Trading liabilities
Borrowed money
Foreign exchanges
Bonds
Convertible bonds
Other liabilities
Reserve for employee retirement benefit
Reserve for possible losses on loans sold
Other reserves
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Stockholders’ equity
Capital stock:
Common stock
Preferred stock
Capital surplus
Earned surplus reserve
Land revaluation excess
Retained earnings
Total stockholders’ equity
¥33,534,079 ¥33,342,655
2,558,919
451,000
161,238
1,953,529
30,218
270,000
95
2,856,182
32,099
94,853
9
32,092
2,524,300
4,600,490
1,136,800
172,176
1,596,797
38,368
470,000
—
1,885,491
14,054
67,163
9
27,524
2,637,631
$270,654
37,130
9,175
1,389
12,887
309
3,793
—
15,217
113
542
0
222
21,288
¥46,180,587 ¥44,307,196
$372,724
¥00,640,129 ¥00,639,934
402,772
899,521
124,120
48,908
137,032
402,577
899,521
131,261
42,690
165,051
¥02,281,230 ¥02,252,289
$005,166
3,249
7,260
1,059
344
1,332
$018,411
Total liabilities and stockholders’ equity
¥48,461,818 ¥46,559,485
$391,136
Notes: 1. Translation into U.S. dollars has been made on the basis of ¥123.90 to US$1, the effective exchange rate at March 31, 2001.
2. Amounts less than one million have been omitted.
107
Nonconsolidated Statements of Income
(Supplemental Information)
Sumitomo Mitsui Banking Corporation (Formerly The Sakura Bank, Limited)
Years ended March 31, 2001 and 2000
Income
Interest income:
Interest on loans and discounts
Interest and dividends on securities
Other interest income
Fees and commissions
Trading profits
Other operating income
Other income
Total income
Expenses
Interest expenses:
Interest on deposits
Interest on borrowings, bonds and rediscounts
Other interest expenses
Fees and commissions
Trading losses
Other operating expenses
General and administrative expenses
Transfer to reserve for possible loan losses
Other expenses
Transfer to other reserves
Total expenses
Income before income taxes
Income taxes:
Current
Deferred
Net income
Per share of common stock:
Net income
Net income—diluted
Millions of yen
2001
2000
Millions of
U.S. dollars
2001
¥ 733,568
130,003
152,935
111,790
20,776
49,455
243,304
¥ 729,354
111,654
497,809
102,556
8,498
57,954
423,100
¥1,441,834
¥1,930,928
¥0,239,280
97,255
81,409
42,512
—
7,810
380,520
(43,728)
497,715
—
¥0,166,591
81,685
482,863
42,441
412
24,231
430,417
155,208
393,004
0
¥1,302,774
¥1,776,858
¥0,139,060
¥0,154,069
¥0,001,767
55,131
¥0,003,986
92,965
¥0,082,160
¥0,057,117
$05,920
1,049
1,234
902
167
399
1,963
$11,637
$01,931
784
657
343
—
63
3,071
(352)
4,017
—
$10,514
$01,122
$00,014
444
$00,663
Yen
U.S. dollars
¥17.28
17.24.
¥11.24
—
$0.13
0.13.
Notes: 1. Translation into U.S. dollars has been made on the basis of ¥106.15 to US$1, the effective exchange rate at March 31, 2001.
2. Amounts less than one million have been omitted.
108
Consolidated Balance Sheets
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited) and Subsidiaries
March 31, 2001 and 2000
Assets
Cash and due from banks (Note 9)
Deposits with banks (Notes 9, 30)
Call loans and bills bought
Receivables under resale agreements
Commercial paper and other debt purchased (Notes 9, 30)
Trading assets (Notes 3, 4, 9, 30)
Money held in trust (Note 30)
Securities (Notes 4, 9, 30)
Loans and bills discounted (Notes 5, 9)
Foreign exchanges
Other assets (Notes 4, 6, 9, 27)
Premises and equipment (Notes 7, 9)
Lease assets (Note 8)
Deferred tax assets
Goodwill
Customers’ liabilities for acceptances and guarantees (Note 16)
Reserve for possible loan losses
Total assets
Liabilities, minority interests and stockholders’ equity
Liabilities
Deposits (Notes 9, 10)
Call money and bills sold (Note 9)
Payables under repurchase agreements (Note 9)
Commercial paper
Trading liabilities (Notes 9, 11)
Borrowed money (Notes 9, 12)
Foreign exchanges
Bonds (Note 13)
Convertible bonds (Note 14)
Pledged money for securities lending transactions
Other liabilities (Note 15)
Reserve for employee retirement benefit (Note 27)
Reserve for possible losses on loans sold
Other reserves
Deferred tax liabilities
Deferred tax liabilities for land revaluation (Note 17)
Acceptances and guarantees (Notes 9, 16)
Total liabilities
Minority interests (Note 18)
Stockholders’ equity (Note 19)
Millions of yen
Millions of
U.S. dollars (Note 1)
2001
2000
2001
3,755,464
139,189
2,905,306
168,497
1,913,404
52,912
16,845,970
32,630,388
470,092
4,297,808
683,833
827,134
598,280
6,224
1,987,164
(756,830)
¥ 4,868,132 ¥ 1,323,157
2,642,560
252,075
—
178,331
1,745,425
109,039
8,968,853
32,940,880
362,889
2,425,278
680,334
823,859
704,881
—
1,560,437
(950,499)
¥67,392,974 ¥53,767,504
5,332,877
5,262,187
594,456
1,068,607
2,322,477
213,813
2,061,693
101,106
4,607,098
3,116,359
7,972
74,639
8
24,271
103,401
1,987,164
¥38,071,013 ¥35,231,324
2,745,132
—
192,507
952,649
2,518,700
163,951
1,566,242
101,106
3,288,365
2,782,112
49,715
116,240
8
3,585
111,692
1,560,437
¥64,949,149 ¥51,383,774
¥00,606,673 ¥00,579,371
$007,007
30,310
1,123
23,449
1,360
15,443
427
135,964
263,361
3,794
34,688
5,519
6,676
4,829
50
16,038
(6,108)
$543,930
$307,272
43,042
42,471
4,798
8,625
18,745
1,726
16,640
816
37,184
25,152
64
602
0
196
835
16,038
$524,206
$004,896
Preferred stock, no par value; authorized 970,000 thousand shares
and issued 167,000 thousand shares in 2001 and 2000
Common stock, par value ¥50; authorized 7,500,000 thousand shares
and issued 3,141,062 thousand shares in 2001 and 2000
Capital surplus
Land revaluation excess (Note 17)
Retained earnings
Foreign currency translation adjustments
Treasury stock
Parent bank stock held by subsidiaries
Total stockholders’ equity
Total liabilities, minority interests and stockholders’ equity
See accompanying notes to consolidated financial statements.
¥00,250,500 ¥00,250,500
$002,022
502,348
643,080
167,613
319,924
(32,171)
(4)
(14,140)
502,348
643,080
168,119
253,573
—
(16)
(13,247)
¥01,837,151 ¥01,804,358
¥67,392,974 ¥53,767,504
4,054
5,190
1,353
2,582
(259)
(0)
(114)
$014,828
$543,930
110
Consolidated Statements of Income
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited) and Subsidiaries
Years ended March 31, 2001, 2000 and 1999
Millions of yen
Millions of
U.S. dollars (Note 1)
2001
2000
1999
2001
Income
Interest income:
Interest on loans and discounts
Interest and dividends on securities
Interest on receivables under resale agreements
Other interest income
Fees and commissions (Note 20)
Trading profits (Note 21)
Other operating income (Note 22)
Other income (Note 23)
Total income
Expenses
Interest expenses:
Interest on deposits
Interest on borrowings and rediscounts
Interest on payables under repurchase agreements
Other interest expenses
Fees and commissions (Note 20)
Trading losses (Note 21)
Other operating expenses (Note 24)
General and administrative expenses (Note 27)
Transfer to reserve for possible loan losses
Other expenses (Note 25)
Total expenses
Income (loss) before income taxes and minority interests
Income taxes (Note 26):
Current
Deferred
Minority interests in net income
Net income (loss)
Per share data:
¥0,858,927 ¥0,844,865 ¥1,044,429
185,039
—
475,792
212,090
107,402
615,925
188,119
193,828
10,861
264,438
202,836
84,376
552,060
560,256
162,129
—
521,036
182,637
69,760
589,638
643,550
¥2,727,586 ¥3,013,618 ¥2,828,799
¥0,397,616 ¥0,288,363 ¥0,537,301
118,313
—
393,401
33,634
81,847
466,419
523,937
654,245
778,729
74,574
22,224
180,092
33,918
2,146
505,193
450,268
32,103
755,978
79,239
—
506,712
36,775
22,853
510,433
466,140
245,182
641,414
¥2,454,118 ¥2,797,115 ¥3,587,829
¥0,273,468 ¥0,216,503 ¥0(759,030)
¥0,057,439 ¥0,050,794 ¥0,043,048
(231,468)
128,327
96,387
¥0,185,766 ¥0,147,182 ¥0(188,419)
1,721
4,231
7,444
¥ 83,469 ¥0,061,875 ¥0(568,889)
$ 6,932
1,564
88
2,134
1,637
681
4,456
4,522
$22,014
$03,209
602
179
1,454
274
17
4,077
3,634
259
6,102
$19,807
$02,207
$00,463
1,036
$01,499
34
$00,674
Yen
U.S. dollars (Note 1)
Net income (loss)
Net income—diluted
Declared dividends on common stock
Declared dividends on preferred stock (first series type I)
Declared dividends on preferred stock (second series type I)
¥25.50
24.93
6.00
10.50
28.50
¥18.61
18.17
6.00
10.50
28.50
¥(181.48)
.—
6.00
0.03
0.08
$0.21
0.20
0.05
0.08
0.23
See accompanying notes to consolidated financial statements.
111
Consolidated Statements of Stockholders’ Equity
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited) and Subsidiaries
Years ended March 31, 2001, 2000 and 1999
Millions of yen
Preferred
stock
Common
stock
Capital
surplus
Earned
surplus
reserve
Land
revaluation
excess
Retained
earnings
Foreign currency
translation
adjustments
Deduction*
Total
Balance at March 31, 1998
Preferred stock issued
Reclassification (Notes 17 and 19)
Increase due to change of
consolidation policy
Cash dividends paid
Net income
Change of treasury stock and
parent bank stock held by
subsidiaries
Balance at March 31, 1999
Transfer from land revaluation
excess to retained earnings
Change of effective tax rates
and others
Cash dividends paid
Net income
Change of treasury stock and
parent bank stock held by
subsidiaries
Balance at March 31, 2000
Transfer from land revaluation
excess to retained earnings
Change of effective tax rates
and others
Cash dividends paid
Net income
Adoption of revised accounting standard
for foreign currency translation
Change of treasury stock and
parent bank stock held by
subsidiaries
¥000,0—. ¥502,348 ¥392,580
— 250,500
250,500
—
—
¥(94,595
—
— (94,595)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
¥000,0—. ¥682,075 ¥00,00—. ¥00000(5) ¥1,671,593
501,000
165,289
—
165,289
—
94,595
—
—
—
—
—
24,170
— (22,772)
— (568,889)
—
—
—
—
—
—
24,170
(22,772)
(568,889)
—
—
—
(13,267)
(13,267)
¥250,500 ¥502,348 ¥643,080
¥(00,0—. ¥165,289 ¥209,178 ¥00,00—. ¥,(13,272) ¥1,757,123
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(3,152)
3,152
5,983
—
— (20,633)
61,875
—
—
—
—
—
—
—
—
—
—
—
—
9
—
5,983
(20,633)
61,875
9
¥250,500 ¥502,348 ¥643,080
¥(00,0—. ¥168,119 ¥253,573 ¥00,00—. ¥,(13,263) ¥1,804,358
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(5,281)
5,281
4,775
—
— (22,399)
83,469
—
—
—
—
—
— (32,171)
—
—
—
—
—
—
4,775
(22,399)
83,469
(32,171)
—
—
(880)
(880)
Balance at March 31, 2001
¥250,500 ¥502,348 ¥643,080
¥(000—. ¥167,613 ¥319,924 ¥(32,171) ¥(14,144) ¥1,837,151
Balance at March 31, 2000
Transfer from land revaluation
excess to retained earnings
Change of effective tax rates
and others
Cash dividends paid
Net income
Adoption of revised accounting standard
for foreign currency translation
Change of treasury stock and
parent bank stock held by
subsidiaries
Millions of U.S. dollars (Note 1)
Preferred
stock
Common
stock
Capital
surplus
Earned
surplus
reserve
Land
revaluation
excess
Retained
earnings
Foreign currency
translation
adjustments
Deduction*
Total
$2,022
$4,054
$5,190
$(0,0—.
$1,357
$2,047
$(0—.
$(107)
$14,563
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(42)
42
38
—
—
—
—
—
(181)
674
—
—
—
—
—
—
(259)
—
—
—
—
—
—
38
(181)
674
(259)
—
(7)
(7)
Balance at March 31, 2001
$2,022
$4,054
$5,190
$(0,0—.
$1,353
$2,582
$(259)
$(114)
$14,828
* Deduction includes treasury stock and parent bank stock held by subsidiaries.
See accompanying notes to consolidated financial statements.
112
Consolidated Statements of Cash Flows
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited) and Subsidiaries
Years ended March 31, 2001 and 2000
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation of premises and equipment
Depreciation of lease assets
Amortization of goodwill
Net (income) loss from nonconsolidated entities accounted for
by the equity method
Net change in reserve for possible loan losses
Net change in reserve for possible losses on loans sold
Net change in reserve for employee retirement benefit
Interest income
Interest expenses
Net gains on securities
Net (income) loss from money held in trust
Net exchange (gains) losses
Net losses from disposition of premises and equipment
Net losses from disposition of lease assets
Gain on sale of business operation
Loss from additional payment for pension liabilities
Net change in trading assets
Net change in trading liabilities
Net change in loans and bills discounted
Net change in deposits
Net change in negotiable certificates of deposit
Net change in borrowed money (excluding subordinated debt)
Net change in deposits with banks
Net change in call loans and receivables under resale agreements
Net change in pledged money for securities borrowing transactions
Net change in call money and payables under repurchase agreements
Net change in commercial paper
Net change in pledged money for securities lending transactions
Net change in foreign exchanges (assets)
Net change in foreign exchanges (liabilities)
Net change in bonds (excluding subordinated bonds)
Interest received
Interest paid
Other, net
Subtotal
Additional payment for pension liabilities
Income taxes paid
Net cash provided by operating activities
See accompanying notes to consolidated financial statements.
Millions of yen
Millions of
U.S. dollars (Note 1)
2001
2000
2001
¥ 273,468
26,140
268,700
1,571
¥(0,216,503
24,070
272,031
1
$ 2,207
211
2,169
13
(36,479)
(192,154)
(41,600)
(46,355)
(1,328,056)
674,508
(418,493)
(268)
(103,436)
15,097
3,575
—
—
(303,615)
433,148
350,155
2,687,498
154,263
(203,229)
(1,087,125)
(2,576,375)
(652,884)
3,166,244
401,621
1,318,733
(107,134)
49,833
478,453
1,211,640
(837,803)
25,236
35,549
(315,850)
(23,545)
(2,715)
(1,528,031)
874,315
(508,327)
760
73,864
8,306
33,342
(8,000)
21,460
826,416
(351,166)
2,514,357
271,528
1,061,647
(200,617)
(1,875,746)
235,178
137,396
(615,238)
(321,851)
1,154,362
30,430
22,124
524,910
1,430,203
(894,663)
(429,627)
(294)
(1,551)
(336)
(374)
(10,719)
5,444
(3,378)
(2)
(835)
122
29
—
—
(2,451)
3,496
2,826
21,691
1,245
(1,640)
(8,774)
(20,794)
(5,269)
25,555
3,241
10,643
(865)
402
3,862
9,779
(6,762)
204
¥3,604,878
—
(47,172)
¥2,693,381
(21,578)
(41,659)
$29,095
—
(381)
¥3,557,706
¥2,630,143
$28,714
113
(Continued)
Cash flows from investing activities
Purchases of securities
Proceeds from sale of securities
Proceeds from maturity of securities
Purchases of money held in trust
Proceeds from sale of money held in trust
Purchases of premises and equipment
Proceeds from sale of premises and equipment
Purchase of lease assets
Proceeds from sale of lease assets
Proceeds from sale of business operation
Proceeds from sale of subsidiaries
Millions of yen
Millions of
U.S. dollars (Note 1)
2001
2000
2001
¥(28,751,233) ¥(38,223,957)
29,463,927
6,821,306
(59,516)
34,750
(36,175)
11,365
(325,621)
16,304
8,000
—
12,151,611
12,930,322
(91,300)
148,488
(49,183)
21,260
(314,383)
35,590
—
5,083
$(232,052)
98,076
104,361
(737)
1,198
(397)
172
(2,537)
287
—
41
Net cash used in investing activities
¥0(3,913,743) ¥0(2,289,615)
$0(31,588)
Cash flows from financing activities
Proceeds from issuance of subordinated debt
Repayment of subordinated debt
Proceeds from issuance of subordinated bonds, convertible bonds
and notes
Repayment of subordinated bonds, convertible bonds and notes
Dividends paid
Dividends paid to minority stockholders
Purchases of treasury stock
Proceeds from sale of treasury stock
¥)00,010,000
(52,000)
¥)00,005,000
(47,000)
$)00,0081
(420)
104,500
(143,550)
(22,406)
(192)
(541)
548
149,150
(23,000)
(20,640)
(333)
(714)
717
843
(1,159)
(181)
(1)
(4)
5
Net cash (used in) provided by financing activities
¥00,(103,642) ¥)00,063,179
$00,0(836)
Effects of exchange rate changes on cash and due from banks
¥)00,002,525
¥00,00(9,226)
$)00,0020
Net change in cash and due from banks
¥00,(457,154) ¥)00,394,481
$00(3,690)
Cash and due from banks at beginning of year
¥(01,323,157
¥00),928,701
$)010,680
Change in cash and due from banks due to
newly consolidated subsidiaries
Decrease of cash and due from banks caused from exception
of consolidation
2,129
—
—
(25)
17
—
Cash and due from banks at end of year
¥(00,868,132
¥(01,323,157
$(007,007
See accompanying notes to consolidated financial statements.
114
Consolidated Statement of Cash Flows
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited) and Subsidiaries
Year ended March 31, 1999
Cash flows from operating activities
Net loss
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization
Transfer to reserve for possible loan losses
Write-off of loans
Losses on sale of loans and loans sold
Securities gains, net
Deferred income taxes
Minority interests in net income
Net change in trading assets and liabilities
Net change in accrual and other, net
Net cash provided by operating activities
Cash flows from investing activities
Net change in deposits with banks
Net change in call loans
Net change in commercial paper and other debt purchased
Net change in money held in trust
Net change in loans and bills discounted
Proceeds from sale of securities
Proceeds from maturity of securities
Purchases of securities
Purchases of premises and equipment
Purchases of lease assets
Other, net
Net cash provided by investing activities
Cash flows from financing activities
Net change in deposits
Net change in call money
Net change in commercial paper and borrowed money
Proceeds from issuance of preferred stock
Proceeds from issuance of subordinated debt
Proceeds from issuance of preferred securities
Dividends paid
Other, net
Net cash used in financing activities
Effect of increase in consolidated subsidiaries
Effects of exchange rate changes on cash and due from banks
Net change in cash and due from banks
Cash and due from banks at beginning of year
Cash and due from banks at end of year
See accompanying notes to consolidated financial statements.
Millions of yen
1999
¥0,(568,889)
299,820
654,245
369,481
179,204
(87,778)
(237,489)
1,721
150,384
539,138
¥,1,299,837
¥,1,608,594
587,175
55,801
131,564
1,748,431
7,290,157
654,920
(7,229,552)
(64,249)
(278,528)
218,901
¥,4,723,214
¥(4,246,208)
(1,442,174)
(1,891,537)
501,000
150,829
340,000
(22,772)
(101,110)
¥(6,711,972)
¥00002,699
¥00,(44,549)
¥0,(730,771)
¥,1,576,972
¥(0,846,201
115
Notes to Consolidated Financial Statements
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited) and Subsidiaries
March 31, 2001, 2000 and 1999
Years Ended March 31, 1999 and 1998
1. Basis of Financial Statements
Sumitomo Mitsui Banking Corporation (formerly The Sumitomo
Bank, Limited) (the “Bank”), a Japanese corporation, maintains its
records and prepares its financial statements in Japanese yen.
The Bank and its consolidated domestic subsidiaries maintain
their accounts and records in accordance with accounting prin-
ciples and prevailing practices generally accepted in Japan, which
are different from accounting and disclosure requirements of
international accounting standards.
The accounts of overseas consolidated subsidiaries are based
on their accounting records maintained in conformity with gener-
ally accepted accounting principles and the practices prevailing in
the respective countries of domicile.
In preparing the accompanying consolidated financial state-
ments, certain reclassifications have been made in the consoli-
dated financial statements issued domestically in order to present
them in a form which is more familiar to readers outside Japan.
The consolidated statements of stockholders’ equity for 2001,
2000 and 1999 have been prepared for the purpose of inclusion
in the accompanying consolidated financial statements, although
such statements were not required for domestic purposes and
were not filed with the regulatory authorities.
Amounts less than one million yen have been omitted. As a
result, the totals in Japanese yen shown in the financial statements
do not necessarily agree with the sum of the individual amounts.
For the convenience of the readers, the accompanying U.S.
dollar financial statements have been translated from Japanese
yen, as a matter of arithmetical computation only, at the rate of
¥123.90 to US$1, the exchange rate prevailing at March 31,
2001. The translations should not be construed as a representa-
tion that Japanese yen have been or could have been converted
into U.S. dollars at that rate.
2. Significant Accounting Policies
(1) Consolidation
The consolidated financial statements include the accounts of the
Bank and its significant subsidiaries. All significant intercompany
balances and transactions have been eliminated.
Effective April 1, 1998, a new accounting standard on con-
solidated financial statements (the “New Standard”) has been
adopted in Japan. The New Standard requires a company to
consolidate any subsidiaries of which the company substantially
controls the operations, even if it is not a majority owned subsid-
iary. Control exists where the company has (a) the power to
appoint or remove the majority of the numbers of the board of
directors or equivalent governing body; or (b) the power to cast
the majority votes at meetings of the board of directors or
equivalent governing body, etc.
The consolidated financial statements include the accounts of
consolidated subsidiaries, of which the fiscal year-ends on or after
December 31. In case that these subsidiaries have a significant
116
transaction during the period from their fiscal year-end to March
31, the Bank makes an adjustment to the consolidated financial
statements to be comprehensive.
In the elimination of investments in subsidiaries, the assets
and liabilities of the subsidiaries, including the portion attributable
to minority shareholders, are evaluated using the fair value at the
time the Bank acquired control of the respective subsidiaries.
Goodwill on The Sumitomo Credit Service Company, Ltd. is
amortized using the straight-line method over five years. Goodwill
on the other entities is charged or credited to income directly.
Investments in major affiliates are accounted for by the equity
method. Net income (loss) from such investments were ¥36,479
million ($294 million) recorded as other income and ¥(35,549)
million recorded as other expense for 2001 and 2000,
respectively.
(2) Statements of cash flows
For the purposes of the consolidated statements of cash flows,
cash and cash equivalents represent cash and due from banks.
Starting from fiscal 1999, the definition of due from banks has
been changed to include all non-interest bearing deposits.
The Bank prepared the 2001 and 2000 consolidated state-
ments of cash flows as required by and in accordance with the
“Standards for Preparation of Consolidated Cash Flow Statements,
etc.,” effective from the year ended March 31, 2000.
The 1999 consolidated statement of cash flows, which was
voluntarily prepared for the purpose of inclusion in the consoli-
dated financial statements in a form familiar to readers outside
Japan, has not been restated. One of the significant differences
between the consolidated statements of cash flows in 2001 and
2000 and in 1999 is the use of pretax income in 2001 and 2000
instead of net income in 1999.
Additionally, some of the classification of activities, such as
loans (previously classified as investing) and deposits (previously
classified as financing), were changed to operating activities.
(3) Trading assets and liabilities
Financial instruments, such as derivatives and trading securities,
which are held for the short term in anticipation of market gains,
are recorded at fair value. Such gains and losses are included in
trading profits or losses on the consolidated statements of
income.
Trading assets and liabilities are accounted for based on
trading date.
(4) Securities
Prior to April 1, 2000, securities, including stocks, corporate
bonds, and Japanese national and local government bonds, were
stated at moving-average cost.
Securities included in money held in trust were also recorded
at moving-average cost.
Effective April 1, 2000, as for securities other than those in
trading portfolio, debt securities that the Bank and consolidated
subsidiaries have the intent and ability to hold to maturity (held-to-
maturity securities) are carried at amortized cost using the
moving-average method.
Investments in nonconsolidated subsidiaries and affiliates that
are not accounted for by the equity method are carried at cost us-
ing the moving-average method.
Securities excluding those classified as trading securities,
held-to-maturity or investments in nonconsolidated subsidiaries and
affiliates are defined as other securities. Debt securities in other
securities are carried at amortized cost using the moving-average
method. Equity securities in other securities are carried at cost
using the moving-average method.
Securities held by the consolidated overseas subsidiaries are
carried at cost (amortized cost) using primarily the specific
identification method.
Securities included in money held in trust are carried in the
same manner.
(5) Derivative transactions
Derivative transactions, excluding those classified as trading
derivatives, are carried at fair value, though some consolidated
overseas subsidiaries account for derivative transactions in
accordance with local accounting standards.
(6) Hedge accounting
In accordance with the Industry Audit Committee Report No. 15
‘Temporary Treatment for Accounting and Auditing of Application of
Accounting Standard for Financial Instruments in Banking Industry’
issued by JICPA in 2000, the Bank applies hedge accounting,
abiding by the following requirements:
(i) Loans, deposits and other interest-bearing assets and
liabilities as a whole shall be recognized as the hedged
portfolio.
(ii) Derivatives as hedging instruments shall effectively reduce
the interest rate exposure of the hedged portfolio.
(iii) Effectiveness of hedging activities shall be evaluated on a
quarterly basis.
Certain derivatives managed by some foreign branches are
recorded on a cost basis using the short-cut method for interest
rate swaps in view of consistency with the risk management
policy.
In accordance with the Industry Audit Committee Report
No. 19 ‘Temporary Treatment for Accounting and Auditing of
Application of Accounting Standard for Financial Instruments in
Leasing Industry’ issued by JICPA in 2000, one of the consolidated
domestic subsidiaries in the leasing industry applies a deferred
hedge accounting related to portfolio hedge on liabilities. Deriva-
tive transactions, such as interest rate swaps, are used in these
hedging activities, and the contract amount is ¥564,560 million
($4,557 million), the fair value is ¥(12,688) million ($(102) million)
and net unrealized loss is ¥(12,688) million ($(102) million) at
March 31, 2001.
Other domestic subsidiaries use the deferred hedge
accounting or the short-cut method for interest rate swaps.
Net of deferred unrealized gains and losses from hedging
instruments is reported in other liabilities. Deferred unrealized
losses and unrealized gains from hedging instruments at March
31, 2001 are ¥668,099 million ($5,392 million) and ¥680,130
million ($5,489 million), respectively.
(7) Nonaccrual loans
Loans are generally placed on nonaccrual status when such loans
are classified as Bankrupt and Effectively Bankrupt and Potentially
Bankrupt by the self-assessment rule (see (10) Reserve for
possible loan losses).
(8) Premises and equipment
Premises and equipment are generally stated at cost less accumu-
lated depreciation. The Bank computes depreciation for premises
using the straight-line method over the estimated useful lives of
the respective assets. The depreciation for equipment is com-
puted using the declining-balance method over the estimated
useful lives of the respective assets.
Depreciation of premises and equipment owned by consolidated
domestic subsidiaries is mainly computed using the declining-
balance method, while depreciation of those owned by consolidated
overseas subsidiaries is mainly computed using the straight-line
method over the estimated useful lives of respective assets.
(9) Software costs
Capitalized software for internal use is depreciated using the
straight-line method over its estimated useful lives (mainly five
years) at the Bank and consolidated domestic subsidiaries, and
included in other assets.
(10) Reserve for possible loan losses
Reserve for possible loan losses of the Bank and its major con-
solidated subsidiaries is provided based on the internal rules for
write-offs and reserves for loans.
Based on the self-assessment rule for the credit quality of the
assets (“self-assessment rule”), the Bank and its major consoli-
dated subsidiaries classify a borrower into one of the following five
risk categories according to the borrower’s credit risk: Bankrupt
Borrowers who are legally bankrupt, Effectively Bankrupt Borrowers
who are regarded as substantially in the same situation as legally
bankrupt borrowers, Potentially Bankrupt Borrowers who are not
currently in the status of bankrupt but are likely to become bank-
rupt in future, Borrowers Requiring Caution or Normal Borrowers.
For collateral and/or guaranteed loans of Bankrupt Borrowers
and Effectively Bankrupt Borrowers, the Bank recognizes a portion
exceeding the appraised value of collateral of and/or the amount
117
deemed collectible from guarantees of those loans as irrecover-
able, and writes off the portion. For the years ended March 31,
2001 and 2000, the Bank and the consolidated subsidiaries made
such write-offs of ¥887,791 million ($7,165 million) and
¥978,443 million, respectively.
For loans of Bankrupt Borrowers and Effectively Bankrupt
Borrowers, the Bank provides specific reserves. The amounts of
the specific reserves are calculated by deducting the disposal
value of collateral and/or the amount deemed collectible from
guarantees, from the book balances of those loans which remain
after the write-offs.
The Bank also provides specific reserves for loans of Poten-
tially Bankrupt Borrowers based on the estimated amount of
recoveries from the collateral and/or guarantees and other
pertinent indicators specific to the borrowers.
assets, due to employee’s credited years of services at the bal-
ance sheet date. Unrecognized net actuarial gain or loss is amor-
tized from the next fiscal year using the straight-line method over
certain years (mainly 10 years) within the average remaining ser-
vice period of active employees. Unrecognized net obligation from
initial application of the new accounting standard of ¥105,290
million ($850 million) is amortized using the straight-line method
over five years.
Due to the new accounting standard, Income before income
taxes and minority interests for the year ended March 31, 2001,
has increased compared with prior accounting method by
¥11,266 million ($91 million).
Prepaid pension cost is reported in Other assets at March 31,
2001.
The Bank also provides general reserves for loans of
(13) Translation of foreign currencies
Borrowers Requiring Caution and Normal Borrowers. The ratio of
the general reserves is determined based on the Bank's loan loss
experiences and economic conditions.
The Bank provides additional reserve for the loans originated
in certain countries based on management’s assessment of
economic or political conditions of such countries.
Reserve for possible loan losses of other consolidated subsid-
iaries is provided for general claims by the amount deemed
necessary based on the historical loan-loss ratio, and for doubtful
claims by the amount deemed uncollectible based on respective
assessments.
(11) Reserve for possible losses on loans sold
Reserve for possible losses on loans sold provides for contingent
losses arising from decline of market value of underlying collateral
for loans sold to the Cooperative Credit Purchasing Company,
Limited.
(12) Reserve for employee retirement benefit
Under the terms of the Bank’s retirement plan, substantially all
employees are entitled to a lump-sum payment at the time of
retirement. The amount of reserve for employee retirement benefit
is, in general, based on length of service, basic salary at the time
of retirement and reason for retirement. Prior to April 1, 2000, the
liability for lump-sum payments is stated at the amount which
would be required to be paid by the Bank if all eligible employees
voluntarily retired at the balance sheet date.
In addition, the Bank has defined benefit pension plans which
substantially cover all employees. Annual contributions, which con-
sist of normal costs and amortization of prior service costs, are
included in general and administrative expenses.
Effective April 1, 2000, a new accounting standard for
employee’s severance and retirement benefits was adopted in
Japan. Reserve for employee retirement benefit (prepaid pension
cost) is recorded based on an actuarial computation, which uses
the present value of the projected benefit obligation and pension
(ii)
(i) The foreign currency financial statements are translated
into Japanese yen at the exchange rate prevailing at
respective year-ends, except for the stockholders’ equity
accounts, which are translated at historical rates.
(a) Foreign currency assets and liabilities of the Bank are
translated into Japanese yen at the exchange rate pre-
vailing at the date of the consolidated balance sheets,
except for certain special investment accounts as
approved by the Japanese regulatory authorities,
which are translated at their historical rates.
(b) Foreign currency accounts held by the consolidated
subsidiaries are translated into the currency of the
subsidiary at the exchange rate prevailing at the
respective year-ends.
Effective April 1, 2000, consolidated domestic subsidiaries
adopt the revised ‘Accounting Standards for Foreign Currency
Transactions’ (issued by the Business Accounting Deliberation
Council in October 1999). As a result, Income before income
taxes and minority interests for 2001 has decreased compared
with prior accounting method by ¥48 million.
In accordance with the revision of the accounting standard,
the presentation of Foreign currency translation adjustments is
changed from Assets to Stockholders’ equity and Minority interests.
As a result, Assets decreased by ¥32,778 million ($264 million),
Stockholders’ equity decreased by ¥32,171 million ($259 million),
and Minority interests decreased by ¥607 million ($5 million) at
March 31, 2001 compared with prior accounting method.
(14) Lease transactions
Financing leases where the ownership of the property is deemed
to be transferred to the lessee are capitalized, while other financ-
ing leases are allowed to be accounted for in the same manner as
operating leases.
Lease assets are depreciated using the straight-line method
over the lease term with estimated salvage value.
118
Lease-related income is recognized on a straight-line basis
over the full term of the lease, based on the contractual amount of
lease fees per month.
(15) Amounts per share
Net income (loss) per share is computed by deducting dividends
for preferred stock from net income (loss), divided by the
weighted average number of shares of common stock, excluding
treasury stock and parent bank stock held by subsidiaries,
outstanding during each fiscal year.
Declared dividends represent the cash dividends declared
applicable to respective years, including dividends to be paid after
the end of the year.
(16) Reclassifications
Certain prior year’s amounts have been reclassified in conformity
with the 2001 presentation. These changes had no impact on
previously reported results of operations or stockholders’ equity.
(17) New accounting standard for financial instruments
Effective April 1, 2000, a new accounting standard for financial
instruments was adopted in Japan. Accordingly, the valuation
methods of securities and derivatives, excluding those in the trad-
ing portfolio, have been changed, and hedge accounting has been
adopted. As a result, Income before income taxes and minority
interests for 2001 has increased ¥20,738 million ($167 million)
compared with the prior accounting method and Income and
expenses relating to derivative transactions that meet the criteria
for hedge accounting are presented net by account, which repre-
sents a change from the prior accounting that presented net by
transaction. As a result, income and expenses for 2001 have
decreased by ¥493,177 million ($3,980 million) though Income
before income taxes and minority interests did not change.
In addition, certain transactions under resale agreements and
repurchase agreements are considered as financing activities, not
as purchasing or selling activities, and reported in Receivables
under resale agreements and Payables under repurchase agree-
ments. As a result, the amount of Securities increased by
¥1,610,677 million ($13,000 million) at March 31, 2001 com-
pared with the prior treatment as purchasing or selling activities.
3. Trading Assets
Trading assets at March 31, 2001 and 2000, consisted of the following:
Trading securities
Derivatives of trading securities
Derivatives of securities related to trading transactions
Trading-related financial derivatives
Other trading assets*
Millions of yen
2001
2000
¥ 247,429
19
18
914,197
751,740
¥ 301,522
18
57
591,008
852,817
¥1,913,404
¥1,745,425
* Other trading assets includes commercial paper and other debt purchased related to trading transactions.
4. Securities
Securities at March 31, 2001 and 2000, consisted of the following:
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks*
Other*
Millions of yen
2001
2000
¥10,691,292
322,120
666,286
3,042,388
2,123,883
¥3,488,594
358,977
714,032
3,396,547
1,010,700
¥16,845,970
¥8,968,853
Millions of
U.S. dollars
2001
$ 1,997
0
0
7,379
6,067
$15,443
Millions of
U.S. dollars
2001
$086,290
2,600
5,378
24,555
17,141
$135,964
* Japanese stocks and other include investments in nonconsolidated subsidiaries and affiliates of ¥197,762 million ($1,596 million) and ¥178,896 million
at March 31, 2001 and 2000, respectively.
Securities of ¥1,956,646 million ($15,792 million), which are used for security lending transactions for consumption, are included in
the accounts of Securities, Other assets and Trading assets at March 31, 2001.
119
5. Loans and Bills Discounted
Loans and bills discounted at March 31, 2001 and 2000, consisted of the following:
Bills discounted
Loans on notes and deeds
Overdrafts
Millions of yen
2001
2000
¥01,474,217
26,332,159
5,824,011
¥00,448,000
24,414,229
8,078,649
¥32,630,388
¥32,940,880
The following summarizes the non-accrual loans of the Bank and consolidated subsidiaries at March 31, 2001 and 2000.
Bankrupt loans
Non-accrual loans
Total non-accrual loans
Millions of yen
2001
2000
¥1,875,729
1,535,566
¥0,087,296
1,661,933
¥1,611,295
¥1,749,230
Millions of
U.S. dollars
2001
$013,827
212,528
47,006
$263,361
Millions of
U.S. dollars
2001
$17,611
12,394
$13,005
In addition to the non-accrual loans, the Bank and consolidated
subsidiaries also classify loans overdue by three months or longer
as substandard loans, and such loan balances at March 31, 2001
and 2000 were ¥49,909 million ($403 million) and ¥79,208
million, respectively.
Restructured loans are loans for which the Bank and the
consolidated subsidiaries have adjusted the terms of the loans in
favor of borrowers as a means of financial assistance. These
restructured loans are also classified as substandard and
amounted to ¥128,581 million ($1,038 million) and ¥374,880
million at March 31, 2001 and 2000, respectively.
6. Other Assets
Other assets at March 31, 2001 and 2000, consisted of the following:
Accrued income and prepaid expenses
Securities in custody
Other
7. Premises and Equipment
Premises and equipment at March 31, 2001 and 2000, consisted of the following:
Land*
Buildings
Equipment and others
Total
Accumulated depreciation
Net book value
* Land includes land revaluation excess with related taxes referred to in Note 17.
Millions of yen
2001
2000
¥1,295,002
1,111,612
2,891,193
¥0,501,086
704,390
1,219,801
¥4,297,808
¥2,425,278
Millions of yen
2001
2000
¥0,416,299
286,758
323,721
¥0,428,300
282,938
331,076
¥1,026,779
(342,946)
¥1,042,315
(361,980)
¥0,683,833
¥0,680,334
Millions of
U.S. dollars
2001
$12,381
8,972
23,335
$34,688
Millions of
U.S. dollars
2001
$3,360
2,314
2,613
$8,287
(2,768)
$5,519
120
8. Lease Assets
Lease assets at March 31, 2001 and 2000, were as follows:
Equipment and others
Accumulated depreciation
9. Assets Pledged as Collateral
Assets pledged as collateral at March 31, 2001 and 2000, were as follows:
Assets pledged as collateral:
Cash and due from banks and Deposits with banks
Commercial paper and other debt purchased
Trading assets
Securities
Loans and bills discounted
Premises and equipment
Other assets
Liabilities corresponding to assets pledged as collateral:
Deposits
Call money and bills sold
Payables under repurchase agreements
Trading liabilities
Borrowed money
Acceptances and guarantees
Millions of yen
2001
2000
¥2,131,697
(1,304,562)
¥2,148,685
(1,324,826)
¥0,827,134
¥0,823,859
Millions of yen
2001
2000
¥ 660,462
—
1,143,569
7,103,992
1,671,141
—
2,255
¥0,000,699
3,944,800
5,262,187
22,740
107,769
42,373
¥0,000,0—.
10,615
—
803,881
1,532,634
471
—
¥0,168,240
1,495,300
—
5,473
24,354
36,303
Millions of
U.S. dollars
2001
$17,205
(10,529)
$06,676
Millions of
U.S. dollars
2001
$00,488
—
9,230
57,336
13,488
—
18
$00,006
31,839
42,471
184
870
342
Premises and equipment include surety deposits and intangible
of ¥70,478 million ($569 million) and ¥72,244 million at March
31, 2001 and 2000, respectively. Other assets include initial
margins of futures markets of ¥17,539 million ($142 million) and
¥7,301 million and pledged money for securities borrowing trans-
actions of ¥823,711 million ($6,648 million) and ¥170,826 million
at March 31, 2001 and 2000, respectively.
In addition to the assets presented above, the following assets were pledged as collateral for exchange settlements, initial margins of
future markets and certain other purposes at March 31, 2001 and 2000:
Cash and due from banks and Deposits with banks
Trading assets
Securities
Loans and bills discounted
Other assets (Securities in custody)
10. Deposits
Deposits at March 31, 2001 and 2000, consisted of the following:
Current deposits
Savings deposits
Deposits at notice
Time deposits
Other deposits
Negotiable certificates of deposit
Millions of yen
2001
2000
¥0,062,978
3,072
3,549,337
120,089
263,550
¥052,799
—
799,307
—
26,115
Millions of yen
2001
2000
¥01,983,588
8,169,611
6,469,731
12,290,315
2,131,815
7,025,950
¥01,750,499
7,721,902
4,397,254
12,666,726
1,825,681
6,869,258
¥38,071,013
¥35,231,324
Millions of
U.S. dollars
2001
$00,508
25
28,647
969
2,127
Millions of
U.S. dollars
2001
$016,010
65,937
52,217
99,195
17,206
56,707
$307,272
121
11. Trading Liabilities
Trading liabilities at March 31, 2001 and 2000, consisted of the following:
Trading securities sold for short sales
Derivatives of trading securities
Derivatives of securities related to trading transactions
Trading-related financial derivatives
12. Borrowed Money
Borrowed money at March 31, 2001 and 2000, consisted of the following:
Bills rediscounted
Subordinated debt obligation
Borrowings from the Bank of Japan and other financial institutions
Millions of yen
2001
2000
¥1,014,326
0
9
1,054,270
¥1,068,607
¥327,165
17
26
625,440
¥952,649
Millions of yen
2001
2000
¥1,034,817
642,315
1,645,344
¥0,022,027
684,151
1,812,521
¥2,322,477
¥2,518,700
Millions of
U.S. dollars
2001
$7,116
0
0
8,509
$8,625
Millions of
U.S. dollars
2001
$17,281
5,184
13,280
$18,745
The repayment schedule within five years on borrowed money at March 31, 2001, is shown as follows:
Millions of yen
One year or less
One to two years
Two to three years
Three to four years
Four to five years
¥1,385,271
¥311,718
¥209,824
¥128,587
¥185,927
One year or less
One to two years
Two to three years
Three to four years
Four to five years
$11,181
$2,516
$1,693
$1,038
$1,501
Millions of U.S. dollars
13. Bonds
Bonds included subordinated bonds of ¥1,082,130 million ($8,734 million) and ¥1,067,255 million at March 31, 2001 and 2000,
respectively.
The redemption schedule within five years on bonds (including convertible bonds) at March 31, 2001, is shown as follows:
Millions of yen
One year or less
One to two years
Two to three years
Three to four years
Four to five years
¥160,010
¥66,366
¥94,965
¥220,297
¥525,847
One year or less
One to two years
Two to three years
Three to four years
Four to five years
$1,291
$536
$766
$1,778
$4,244
Millions of U.S. dollars
14. Convertible Bonds
Convertible bonds at March 31, 2001 and 2000, consisted of the following:
Convertible bonds payable in U.S. dollars:
31/8% due 2004, convertible into common stock at ¥3,606.90 per share
¥001,106
¥001,106
Convertible bonds payable in Japanese yen:
3/8% due 2001, convertible into common stock at ¥1,239.00 per share
100,000
100,000
¥101,106
¥101,106
Millions of yen
2001
2000
Millions of
U.S. dollars
2001
$629
807
$816
Convertible bonds payable in Japanese yen (3/8% due 2001)
(the “Bonds”) were mandatorily converted to common stock of the
Bank at May 31, 2001. Consequently, common stock and capital
surplus increased by ¥50,045 million and ¥49,954 million,
respectively, and the number of common shares issued increased
by 91,324 thousand. The conversion price of the Bonds was
adjusted to ¥1,095 per share in accordance with the terms and
conditions of the Bonds at May 31, 2001.
122
15. Other Liabilities
Other liabilities at March 31, 2001 and 2000, consisted of the following:
Accrued expenses and unearned income
Income taxes
Employees’ deposits
Trading-related accounts payable
Financial derivatives
Other
16. Acceptances and Guarantees
Acceptances and guarantees at March 31, 2001 and 2000, consisted of the following:
Acceptances
Letters of credit
Guarantees
Millions of yen
2001
2000
¥1,216,473
40,110
41,657
—
488,138
2,329,977
¥0,283,443
17,206
43,832
607,318
—
1,830,310
¥3,116,359
¥2,782,112
Millions of yen
2001
2000
¥0,019,941
580,140
1,387,081
¥0,019,276
525,101
1,016,059
¥1,987,164
¥1,560,437
Millions of
U.S. dollars
2001
$11,747
324
336
—
3,940
18,805
$25,152
Millions of
U.S. dollars
2001
$00,161
4,682
11,195
$16,038
Guarantees and standby letters of credit are conditional com-
mitments issued by the Bank to guarantee the performance of a
customer to a third party. The Bank is obliged to pay the third
party upon presentation of a claim that meets the conditions of the
commitment. The Bank also issues letters of credit for import
transactions in international operations. These contingent liabilities
are accounted for in acceptances and guarantees, with a
corresponding amount recorded in customers’ liabilities for
acceptances and guarantees.
17. Land Revaluation Excess
Pursuant to the Enforcement Ordinance for the Law concerning
land revaluation (the “Law”), effective March 31, 1998, the Bank
and one of its domestic banking subsidiaries recorded their own
land at fair value at March 31, 1998 and March 31, 1999,
respectively. According to the Law, net unrealized gains are
reported in a separate component of stockholders’ equity net of
applicable income taxes as Land revaluation excess, and the
18. Minority Interests
SB Treasury Company, L.L.C., a subsidiary of the Bank, issued
noncumulative preferred securities, totaling $1.8 billion in February
1998. SB Equity Securities (Cayman), Limited, a subsidiary of the
Bank, issued floating noncumulative preferred securities, totaling
19. Stockholders’ Equity
Under the Banking Law of Japan, the Bank is required to appropri-
ate as an earned surplus reserve an amount equal to at least 20
percent of cash disbursements in each period until the earned sur-
plus reserve equals 100 percent of the common stock. The capital
related deferred tax liabilities are reported in liabilities as deferred
tax liabilities for land revaluation. According to the Law, the Bank
is not permitted to revalue the land at any time, even if the fair
value of the land declines. Such unrecorded revaluation losses at
March 31, 2001 and 2000, were ¥72,126 million ($582 million)
and ¥56,692 million, respectively.
¥340 billion in March 1999. Both subsidiaries are consolidated
and the preferred securities are accounted for as minority
interests.
surplus and earned surplus reserve are not available for distribu-
tion as dividends but may be used to reduce a deficit by resolution
of the stockholders or may be capitalized by resolution of the
Board of Directors.
123
In accordance with a disclosure requirement effective from
the year ended March 31, 1999, the earned surplus reserve is
included in retained earnings.
The Commercial Code of Japan provides that at least one half
of the proceeds from shares issued at prices in excess of par
value be included in common stock. In conformity therewith, the
Bank has divided the paid-in amount of the stock issued upon con-
version of bonds and notes into common stock equally between
common stock and capital surplus.
In accordance with the Law concerning Emergency Measures
for the Early Strengthening of the Functions of the Financial
System, the Bank issued a series of noncumulative preferred
stock in the aggregate amount of ¥501 billion (the first issuance
of 67 million shares at ¥201 billion and the second issuance of
100 million shares at ¥300 billion). All of the preferred stocks
were subscribed by The Resolution and Collection Bank, Limited,
on March 30, 1999. The noncumulative preferred stocks are
redeemable at the option of the Bank at any time. The initial ¥201
billion in Preferred stock is convertible into common stock of the
Bank at any time from May 1, 2002 until February 26, 2009, while
the subsequent ¥300 billion in Preferred stock is convertible into
common stock of the Bank at any time from August 1, 2005 until
February 26, 2009, in each case subject to certain adjustments to
the conversion period.
20. Fees and Commissions
Fees and commissions for the years ended March 31, 2001 and 2000, consisted of the following:
Fees and commissions (income)
Deposits and loans
Remittances and transfers
Securities-related business
Agency
Safe deposits
Guarantees
Credit card business
Other
Fees and commissions (expenses)
Remittances and transfers
Other
Millions of yen
2001
2000
¥202,836
24,150
51,091
6,291
9,049
2,771
12,313
66,110
31,058
¥033,918
11,873
22,045
¥182,637
20,013
47,162
6,639
8,351
2,820
12,175
62,499
22,974
¥036,775
12,033
24,741
21. Trading Income
Trading income for the years ended March 31, 2001 and 2000, consisted of the following:
Trading profits
Gains on trading securities
Gains on securities related to trading transactions
Gains on trading-related financial derivatives
Other
Trading losses
Losses on trading securities
Losses on securities related to trading transactions
Losses on trading-related financial derivatives
Other
124
Millions of yen
2001
2000
¥84,376
10,358
606
70,436
2,974
¥02,146
190
—
1,166
789
¥69,760
36,460
—
30,063
3,235
¥22,853
6,839
944
14,590
479
Millions of
U.S. dollars
2001
$1,637
195
412
51
73
22
99`
534
251
$0,274
96
178
Millions of
U.S. dollars
2001
$681
84
5
568
24
$917
2
—
9
6
22. Other Operating Income
Other operating income for the years ended March 31, 2001, 2000 and 1999, consisted of the following:
Gains on foreign exchange transactions
Gains on sale of bonds
Gains on redemption of bonds
Lease-related income
Other
Millions of yen
2001
2000
1999
¥874,789
29,963
—
482,433
34,873
¥027,854
38,202
4,565
483,612
35,403
¥011,588
110,753
3,803
467,129
22,651
¥552,060
¥589,638
¥615,925
23. Other Income
Other income for the years ended March 31, 2001, 2000 and 1999, consisted of the following:
Gains on sale of stocks and other securities
Net income from nonconsolidated entities by equity method
Gains on securities contributed to employee retirement benefit trust
Gains on money held in trust
Gains on disposition of premises and equipment
Collection of written-off claims
Gains on sales of majority interest of the Sumitomo Bank
of California and Banca del Gottardo
Gain on sale of business operation
Other
Millions of yen
2001
2000
1999
¥475,976
36,479
24,006
1,199
963
627
¥589,185
—
—
1,528
1,710
979
¥013,265
—
—
1,716
69,168
2,453
—
—
21,003
—
8,000
42,146
78,440
—
23,074
Millions of
U.S. dollars
2001
$0,039
242
—
3,894
281
$4,456
Millions of
U.S. dollars
2001
$3,842
294
194
10
8
5
—
—
169
24. Other Operating Expenses
Other operating expenses for the years ended March 31, 2001, 2000 and 1999, consisted of the following:
¥560,256
¥643,550
¥188,119
$4,522
Losses on sale of bonds
Losses on redemption of bonds
Losses on devaluation of bonds
Lease-related expenses
Other
Millions of yen
2001
2000
1999
¥821,835
1,192
1,640
417,847
62,677
¥033,793
15,251
986
421,338
39,063
¥030,654
8,593
5,661
402,818
18,691
¥505,193
¥510,433
¥466,419
Millions of
U.S. dollars
2001
$0,176
10
13
3,372
506
$4,077
125
25. Other Expenses
Other expenses for the years ended March 31, 2001, 2000 and 1999, consisted of the following:
Write-off of loans
Losses on sale of stocks and other securities
Losses on devaluation of stocks and other securities
Losses on money held in trust
Losses on disposition of premises and equipment
Losses on sale of loans to the Cooperative Credit Purchasing Co., Ltd.
Transfer to reserve for possible losses on loans sold
Losses on delinquent loans sold
Additional contribution to pension fund
Amortization of unrecognized net transition obligation
for employee retirement benefit
Other
Millions of yen
2001
2000
1999
¥556,661
39,819
41,172
930
16,060
11,388
19,409
26,761
—
¥439,122
37,071
36,522
2,288
10,016
7,692
18,407
23,065
21,460
¥369,481
30,336
33,891
5,253
7,547
60,269
79,169
105,293
22,660
21,058
22,717
—
45,767
—
64,829
Millions of
U.S. dollars
2001
$4,493
321
332
8
130
92
157
216
—
170
183
¥755,978
¥641,414
¥778,729
$6,102
26. Income Taxes
Effective April 1, 1998, a new accounting standard for income
taxes accounting was adopted in Japan. According to this new
standard, income taxes consist of current and deferred
corporation, inhabitant and enterprise taxes.
On March 30, 2000, the Tokyo Metropolitan Government
passed and established the Special Ordinance Concerning
Taxation Standards for Enterprise Taxes in Relation to Banks in the
Tokyo Metropolis (Tokyo Metropolitan Ordinance 145 of April 1,
2000). The measure has changed the effective statutory tax rate
used by the Bank to calculate deferred tax assets and liabilities
from 41.98% in the year ended March 31, 1999, to 39.83%.
As a result of this change, deferred tax assets decreased by
¥34,218 million at March 31, 2000, and an equivalent increased
income taxes deferred for the year ended March 31, 2000.
Further, as deferred tax liabilities for land revaluation decreased
by ¥5,980 million due to this change, land revaluation excess
increased by the same amount.
On June 9, 2000, the Osaka Prefecture Government promul-
gated the Special Ordinance Concerning Taxation Standards for
Enterprise Taxes in Relation to Banks in Osaka Prefecture (Osaka
Prefectural Ordinance 131 of June 9, 2000), which applies in
business years starting on or after April 1, 2001. The effect of
this measure is to change the effective statutory tax rate used by
the Bank to calculate deferred tax assets and liabilities from
39.83% to 38.05%.
As a result of this change, deferred tax assets decreased by
¥24,802 million ($200 million) at March 31, 2001, and an equiva-
lent increased in income taxes deferred for the year ended March
31, 2001. Further, as deferred tax liabilities for land revaluation
decreased by ¥4,795 million ($39 million) due to this change, land
revaluation excess increased by the same amount at March 31,
2001.
Enterprise taxes other than those relating to income are
included in Other expenses. Effective April 1, 2000, the Special
Ordinance Concerning Taxation Standard for Enterprise Taxes in
Relation to Banks in the Tokyo Metropolis (Tokyo Metropolis
Ordinance 145 of April 1, 2000) was enacted, and the enterprise
taxes in Tokyo, which were included in Income taxes current for
prior periods, are included in Other expenses by the amount of
¥8,100 million ($65 million) for the year ended March 31, 2001.
126
Significant components of deferred tax assets and liabilities at March 31, 2001 and 2000, were as follows:
Deferred tax assets:
Reserve for possible loan losses
Write-off of loans
Net operating loss carryforwards
Reserve for possible losses on loans sold
Other
Subtotal
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Undistributed earnings of subsidiaries
Leveraged lease
Gains on securities contributed to employee retirement benefit trust
Other
Total deferred tax liabilities
Net deferred tax assets
Millions of yen
2001
2000
Millions of
U.S. dollars
2001
¥312,336
190,414
102,585
28,543
80,127
¥714,008
(40,310)
¥346,890
208,099
59,510
46,389
96,989
¥757,879
(28,744)
¥673,697
¥729,135
¥144,246
34,803
9,153
11,483
¥0))))00—.
18,705
—
9,134
¥199,687
¥027,839
¥574,009
¥701,295
$2,521
1,537
828
230
647
$5,763
(326)
$5,437
$7,357
281
74
92
$7,804
$4,633
A reconciliation of the effective income tax rate reflected in the accompanying consolidated statements of income to the statutory tax
rate for the years ended March 31, 2001 and 2000, was as follows:
Statutory tax rate
Deferred tax liabilities for undistributed earnings of subsidiaries
Change of tax rate
Loss from unconsolidated entities by equity method
Other
Effective income tax rate
27. Employee Retirement Benefit
(1) Outline of retirement benefit
The Bank and consolidated subsidiaries in Japan have contributory
funded defined benefit pension plans such as contributory pension
plans, qualified pension plans and lump-sum severance indemnity
plans. They may grant additional benefits in cases where certain
requirements are met when employees retire.
The Bank and a consolidated subsidiary in Japan contributed
certain marketable equity securities to an employee retirement
2001
39.83%
16.77
9.07
.—
2.26
67.93
2000
41.98%
.—
15.80
6.89
3.31
67.98
benefit trust. Gains on securities contributed to the employee
retirement benefit trust of ¥24,006 million ($194 million) is in-
cluded in Other income.
At March 31, 2001, the Bank and the Bank of Kansai, Ltd.,
have contributed funded defined benefit pension plans. SB Leas-
ing, Limited and The Sumitomo Credit Service Company, Limited
have qualified pension plans. The Bank and most subsidiaries in
Japan have severance indemnity plans.
127
(2) Projected benefit obligation
March 31
Projected benefit obligation
Pension assets
Unfunded projected benefit obligation
Unrecognized net transition obligation
Unrecognized actuarial differences
Net amount recorded on the consolidated balance sheet
Prepaid pension cost (other assets)
Reserve for employee retirement benefit
(3) Pension expenses
Year ended March 31
Service cost
Interest cost on projected benefit obligation
Expected return on plan assets
Amortization of net transition obligation
Other
Pension expenses
Millions of yen
2001
¥(495,409)
410,572
¥0(84,836)
85,988
50,585
¥(051,737
59,710
(7,972)
Millions of yen
2001
¥12,922
16,485
(15,646)
21,058
1,533
¥36,352
Millions of
U.S. dollars
2001
$(3,999)
3,314
$0,(685)
695
408
$0,)418
482
(64)
Millions of
U.S. dollars
2001
$104
133
(126)
170
12
$293
(4) Assumptions
The principal assumptions used in determining benefit obligation and pension expenses at or for the year ended March 31, 2001, were as
follows:
Discount rate
Expected rate of return on plan assets
Term to amortize actuarial differences
Term to amortize net transition obligation
2001
3.5%
1.5% to 5.0%
Mainly 10 years
5 years
The estimated amount of all retirement benefits to be paid at the future retirement date is allocated equally to each service year using the
estimated number of total service years.
28. Lease Transactions
(1) Financing leases
Financing leases without transfer of ownership at March 31, 2001 and 2000, consisted of the following:
(a) Lessee side
March 31, 2001
Equipment
Other
March 31, 2000
Equipment
Other
128
Millions of yen
Accumulated
depreciation
Net book value
Acquisition cost
Accumulated
depreciation
Net book value
Millions of U.S. dollars
¥3,613
3
¥6,701
0
¥3,617
¥6,702
$83
0
$83
$29
0
$29
$54
0
$54
Acquisition cost
¥10,315
4
¥10,320
Millions of yen
Accumulated
depreciation
¥2,350
—
¥2,350
Acquisition cost
¥6,321
—
¥6,321
Net book value
¥3,970
—
¥3,970
Future minimum lease payments excluding interests at March 31, 2001 and 2000, were as follows:
Due within one year
Due after one year
Millions of yen
2001
¥1,886
5,003
¥6,890
2000
¥1,144
2,920
¥4,064
Millions of
U.S. dollars
2001
$15
41
$56
Total lease expenses for the years ended March 31, 2001 and
2000, were ¥1,332 million ($11 million) and ¥1,190 million,
respectively.
Depreciation expense for the years ended March 31, 2001
and 2000 amounted to ¥1,242 million ($10 million) and ¥1,106
million, respectively. Depreciation is calculated using the straight-
line method over the lease term of the respective assets.
The difference between the minimum lease payments and the
acquisition costs of the lease assets represents interest expense.
The allocation of such interest expense over the lease term is
computed using the effective interest method. Interest expense for
the years ended March 31, 2001 and 2000 amounted to ¥101
million ($1 million) and ¥78 million, respectively.
(b) Lessor side
March 31, 2001
Equipment
Other
March 31, 2000
Equipment
Other
Millions of yen
Accumulated
depreciation
Acquisition cost
Net book value
Acquisition cost
¥1,873,952 ¥1,179,276
120,946
231,447
¥694,675
110,500
$15,125
1,868
Millions of U.S. dollars
Accumulated
depreciation
$09,518
976
Net book value
$5,607
892
¥2,105,399 ¥1,300,222
¥805,176
$16,993
$10,494
$6,499
Millions of yen
Accumulated
depreciation
Acquisition cost
Net book value
¥1,917,876
215,680
¥1,207,576
114,937
¥710,300
100,743
¥2,133,557
¥1,322,514
¥811,043
Future lease payments receivable excluding interests at March 31, 2001 and 2000, were as follows:
Due within one year
Due after one year
Millions of yen
2001
2000
¥255,827
580,905
¥258,438
586,246
¥836,733
¥844,684
Millions of
U.S. dollars
2001
$2,065
4,688
$6,753
Lease income for the years ended March 31, 2001 and 2000,
were ¥327,731 million ($2,645 million) and ¥334,157 million,
respectively.
Depreciation expense for the years ended March 31, 2001
and 2000, amounted to ¥265,216 million ($2,141 million) and
¥270,809 million, respectively. Depreciation is calculated using
the straight-line method over the lease term of the respective
assets without salvage values.
The difference between the minimum lease payments receiv-
able and the acquisition costs of the lease assets represents inter-
est income. The allocation of such interest income over the lease
term is computed using the effective interest method. Interest
income for the years ended March 31, 2001 and 2000, were
¥63,694 million ($514 million) and ¥63,593 million, respectively.
129
(2) Operating leases
Operating leases at March 31, 2001 and 2000, consisted of the following:
(a) Lessee side
Future minimum lease payments at March 31, 2001 and 2000, were as follows:
Due within one year
Due after one year
(b) Lessor side
Future lease payment receivables at March 31, 2001 and 2000, were as follows:
Due within one year
Due after one year
Millions of yen
2001
2000
¥08,031
44,184
¥52,216
¥07,758
50,143
¥57,901
Millions of yen
2001
¥0,334
990
¥1,325
2000
¥207
787
¥994
Millions of
U.S. dollars
2001
$065
356
$421
Millions of
U.S. dollars
2001
$03
8
$11
29. Loan Commitments
Commitment line contracts on overdrafts and loans are agree-
ments to lend to customers when they apply for borrowing, to a
prescribed amount, as long as there is no violation of any condi-
tion established in the contracts. The amount of unused commit-
ments was ¥17,349,040 million ($140,025 million), and the
amount of unused commitments whose original contract terms
are within one year or unconditionally cancellable at any time was
¥15,538,193 million ($125,409 million) at March 31, 2001.
Since many of these commitments are expected to expire without
being drawn upon, the total amount of unused commitments does
not necessarily represent actual future cash flow requirements.
Many of these commitments have clauses that the Bank and con-
solidated subsidiaries can reject an application from customers or
reduce the contract amounts in case economic conditions are
changed, the Bank and consolidated subsidiaries need to secure
claims or other events occur. In addition, the Bank and its consoli-
dated subsidiaries request the customers to pledge collateral
such as premises and securities at the conclusion of the con-
tracts, and take necessary measures such as grasping custom-
ers’ financial positions, revising contracts when need arises and
securing claims after the conclusion of the contracts.
30. Market Value of Marketable Securities
(1) Securities
The market value of marketable securities at March 31, 2001, was as follows:
In addition to Securities in the consolidated balance sheets, trading securities, negotiable certificates of deposit and commercial paper within Trading
assets, negotiable certificates of deposit in Deposits with banks, and commercial papers and claims on loan trust within Commercial paper and other debt
purchased are included in the following amounts:
(a) Securities classified as trading
March 31, 2001
Securities classified as trading
March 31, 2001
Securities classified as trading
130
Millions of yen
Consolidated balance
sheet amount
¥998,998
Millions of U.S. dollars
Consolidated balance
sheet amount
$8,063
Gains included in
profit/loss
¥713
Gains included in
profit/loss
$6
(b) Bonds classified as held-to-maturity with market value
March 31, 2001
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
March 31, 2001
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
Consolidated balance
sheet amount
Market value
¥00,114
—
—
18,451
¥18,565
¥00,114
—
—
18,367
¥18,482
Millions of yen
Net unrealized
gains (losses)
¥(00
—
—
(83)
¥(82)
Unrealized gains
Unrealized losses
¥00
—
—
46
¥47
¥000
—
—
130
¥130
Consolidated balance
sheet amount
Market value
Net unrealized
gains (losses)
Unrealized gains
Unrealized losses
Millions of U.S. dollars
$001
—
—
149
$150
$001
—
—
148
$149
$(0
—
—
(1)
$(1)
$0
—
—
0
$0
$0
—
—
1
$1
Note: Market value is calculated by using market prices at fiscal year-end.
(c) Other securities with market value
March 31, 2001
Stocks
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
March 31, 2001
Stocks
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
Consolidated balance
sheet amount
Market value
¥02,738,365 ¥02,581,842
¥11,453,252 ¥11,536,374
10,752,965
271,306
512,103
¥01,399,155 ¥01,524,294
10,691,178
260,232
501,842
Millions of yen
Net unrealized
gains (losses)
¥(156,523)
¥)083,122
61,787
11,073
10,261
¥)125,139
Unrealized gains
Unrealized losses
¥166,678
¥085,908
64,163
11,077
10,667
¥135,120
¥323,201
¥002,785
2,375
3
406
¥009,981
¥15,590,773 ¥15,642,511
¥0(51,738
¥387,707
¥335,969
Consolidated balance
sheet amount
$022,101
$092,440
86,289
2,101
4,050
$011,293
Market value
$020,838
$093,110
86,787
2,190
4,133
$012,303
$125,834
$126,251
Millions of U.S. dollars
Net unrealized
gains (losses)
Unrealized gains
Unrealized losses
$(1,263)
$(0,670
498
89
83
$(1,010
$(0,417
$1,345
$0,693
518
89
86
$1,091
$3,129
$2,608
$0,023
20
0
3
$0,081
$2,712
Note: Market value is calculated by using the market prices at fiscal year-end for bonds and others, and by using the average market price during one
month before the fiscal year-end for stocks.
(d) Bonds sold during fiscal 2000 that are classified as held-to-maturity
There are no corresponding items.
131
(e) Other securities sold during fiscal 2000
Year ended March 31, 2001
Other securities
Year ended March 31, 2001
Other securities
(f) Securities with no available market value
March 31, 2001
Bonds classified as held-to-maturity
Nonlisted foreign securities
Other
Other securities
Nonlisted foreign securities
Nonlisted bonds
Nonlisted stocks (excluding OTC stocks)
Other
(g) Change of classification of securities
There are no corresponding items.
Millions of yen
Sales amount
Gains on sales
Losses on sales
¥12,148,851
¥501,662
¥41,367
Millions of U.S. dollars
Sales amount
Gains on sales
Losses on sales
$98,054
$4,049
$334
Millions of yen
Consolidated balance
sheet amount
Millions of
U.S. dollars
Consolidated balance
sheet amount
¥031,163
5,091
¥668,428
226,332
112,592
224,483
$0,252
41
$5,395
1,827
909
1,812
(h) Redemption schedule of other securities with maturities and bonds classified as held-to-maturity
Millions of yen
1 year or less
1 to 5 years
5 to 10 years
Over 10 years
¥4,829,489
4,676,663
22,556
130,269
¥0,445,721
¥4,668,333
4,248,153
54,534
365,646
¥1,079,457
¥2,178,313
1,766,475
244,466
167,370
¥0,148,466
¥003,563
—
563
3,000
¥352,019
¥5,275,210
¥5,747,790
¥2,326,779
¥355,582
1 year or less
1 to 5 years
5 to 10 years
Over 10 years
Millions of U.S. dollars
$38,979
37,746
182
1,051
$03,597
$37,678
34,287
440
2,951
$08,713
$17,581
14,257
1,973
1,351
$01,198
$42,576
$46,391
$18,779
$0,029
—
5
24
$2,841
$2,870
March 31, 2001
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
March 31, 2001
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Total
132
(2) Money held in trust
(a) Money held in trust classified as trading
March 31, 2001
Money held in trust
March 31, 2001
Money held in trust
(b) Money held in trust classified as held-to-maturity
There are no corresponding items.
Millions of yen
Consolidated balance
sheet amount
¥2,467
Millions of U.S. dollars
Consolidated balance
sheet amount
$20
Gains included in
profit/loss
—
Gains included in
profit/loss
—
(c) Other money held in trust (money held in trust that is classified neither as trading nor as held-to-maturity)
March 31, 2001
Other money held in trust
March 31, 2001
Other money held in trust
Consolidated balance
sheet amount
Market value
Millions of yen
Net unrealized
gains (losses)
Unrealized gains
Unrealized losses
¥50,444
¥46,335
¥(4,108)
¥317
¥4,426
Millions of U.S. dollars
Consolidated balance
sheet amount
Market value
Net unrealized
gains (losses)
Unrealized gains
Unrealized losses
$407
$374
$(33)
$3
$36
Note: Market value is calculated by using market prices at the fiscal year-end.
(3) Net unrealized gains (losses) on other securities and other money held in trust
March 31, 2001
Net unrealized gains (losses)
Other securities
Other money held in trust
(–) Deferred tax liabilities
Net unrealized gains (losses), net of taxes (before following adjustments)
(–) Minority interests
(+) Parent company’s interest in net unrealized gains (losses) on valuation of other
securities held by affiliates accounted for by the equity method
Net unrealized gains, net of taxes
Note: The above figures were not reflected in the consolidated financial statements.
Millions of yen
2001
¥47,629
51,738
(4,108)
¥18,371
¥29,257
¥01,713
¥00,013
¥27,557
Millions of
U.S. dollars
2001
$384
417
(33)
$148
$236
$014
$000
$222
133
(Appendix) Previous Year’s Information on Market Value of Marketable Securities
(1) Securities
The following table represents market value and unrealized gains or losses on listed securities held by the Bank and the consolidated
subsidiaries at March 31, 2000.
March 31, 2000
Securities:
Japanese bonds
Japanese stocks
Other
Total
Consolidated
balance sheet
amount
Market
value
Millions of yen
Net
unrealized
gains (losses)
Unrealized
gains
Unrealized
losses
¥0,877,620
3,131,298
521,933
¥0,871,538
3,987,659
786,986
¥000(6,081)
856,360
265,053
¥0,022,187
1,178,416
274,936
¥028,269
322,055
9,883
¥4,530,852
¥5,646,185
¥1,115,332
¥1,475,540
¥360,208
Notes: 1. Japanese bonds include national government bonds, local government bonds and corporate bonds.
2. Market values for securities listed on exchanges are the closing prices on the Tokyo Stock Exchange or on other exchanges, or are calculated
on the earnings yield of the quotation of over-the-counter issues released by the Securities Dealers Association of Japan.
3. The estimated value of unlisted securities is summarized as follows:
March 31, 2000
Securities:
Japanese bonds
Japanese stocks
Other
Total
Consolidated
balance sheet
amount
Market
value
Millions of yen
Net
unrealized
gains (losses)
Unrealized
gains
Unrealized
losses
¥3,169,079
¥3,174,359
34,181
66,800
92,557
67,264
¥05,279
58,376
464
¥12,030
63,839
2,331
¥06,750
5,463
1,867
¥3,270,060
¥3,334,181
¥64,120
¥78,201
¥14,081
The estimated market value equivalents of unlisted securities are calculated as follows:
Japanese over-the-counter securities: Based on purchase prices released by the Securities Dealers Association of Japan.
Public bonds: Based on the earnings yield of the quotation of over-the-counter issues released by the Securities Dealers Association of Japan.
Beneficial securities of securities investment trust: Based on the reference price.
U.S. over-the-counter securities: Based on NASDAQ purchasing price of the National Association of Securities Dealers.
4. The following represents the book values of major non-marketable securities, which have not been included in the market value information on
marketable securities:
March 31, 2000
Securities:
Japanese bonds
Japanese stocks
Other
Millions of yen
Consolidated
balance sheet amount
¥514,905
231,067
421,966
5. Trading securities, which are accounted for in the trading accounts, are not included in the above amounts because revaluated gains (losses) are
accounted for in the consolidated statements of income.
(2) Money held in trust
March 31, 2000
Money held in trust
Consolidated
balance sheet
amount
Market
value
Millions of yen
Net
unrealized
gains (losses)
Unrealized
gains
Unrealized
losses
¥109,039
¥108,980
¥(59)
¥0
¥59
Notes: 1. Market values for securities listed on exchanges are the closing prices on the Tokyo Stock Exchange or on other exchanges, or are calculated
based on the earnings yield of the quotation of over-the-counter issues released by the Securities Dealers Association of Japan.
2. Over-the-counter stocks are valued by the purchase prices released by the Securities Dealers Association of Japan.
134
31. Derivative Transactions
(1) Interest Rate Derivatives
March 31, 2001
Transactions listed on exchange
Interest rate futures:
Sold
Bought
Interest rate options:
Sold
Bought
Over-the-counter transactions
Forward rate agreements:
Sold
Bought
Interest rate swaps:
Receivable fixed rate/payable floating rate
Receivable floating rate/payable fixed rate
Receivable floating rate/payable floating rate
Swaptions:
Sold
Bought
Caps:
Sold
Bought
Floors:
Sold
Bought
Other:
Sold
Bought
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
¥001,101,977 ¥00,017,858
485,657
5,697,426
¥0,000,(437) ¥0,000,(437)
8,991
8,991
¥000,248,680 ¥000000,0—. ¥0,000,0(10) ¥0,000,0(10)
6
109,340
—
6
¥006,884,618 ¥000000,0—. ¥0,000,(649) ¥0,000,(649)
841
1,777,431
841
—
¥135,767,183 ¥83,730,613
40,064,077
39,778,519
3,359,612
65,115,663
64,847,289
5,165,148
¥0,0(69,662) ¥0,0(69,662)
1,573,923
(1,644,551)
(1,674)
1,573,923
(1,644,551)
(1,674)
¥000,400,466 ¥00,248,801
240,727
326,828
¥0,0(12,247) ¥0)0(12,247)
6,547
6,547
¥003,207,128 ¥02,358,919
1,535,957
2,107,655
¥0,00(4,459) ¥0,00(4,459)
4,673
4,673
¥000,151,911 ¥00,140,436
230,219
283,412
¥0,00(2,833) ¥0,00(2,833)
5,098
5,098
¥000,032,799 ¥00,029,850
93,760
141,681
¥0,000,)099
490
¥000,00099
490
.
. ¥0,0(63,553) ¥0,0(63,553)
135
March 31, 2001
Transactions listed on exchange
Interest rate futures:
Sold
Bought
Interest rate options:
Sold
Bought
Over-the-counter transactions
Forward rate agreements:
Sold
Bought
Interest rate swaps:
Receivable fixed rate/payable floating rate
Receivable floating rate/payable fixed rate
Receivable floating rate/payable floating rate
Swaptions:
Sold
Bought
Caps:
Sold
Bought
Floors:
Sold
Bought
Other:
Sold
Bought
Total
Millions of U.S. dollars
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
$0,008,894
45,984
$000,144
3,920
$00,00(4)
72
$00,00(4)
72
$0,002,007
882
$00000—.
—
$00,00(0)
0
$00,00(0)
0
$0,055,566
14,346
$1,095,780
525,550
523,384
41,688
$00000—.
—
$675,792
323,358
321,053
27,116
$00,00(5)
7
$0,0(562)
12,703
(13,273)
(14)
$00,00(5)
7
$00,(562)
12,703
(13,273)
(14)
$0,003,232
2,638
$002,008
1,943
$00,0(99)
53
$00,0(99)
53
$0,025,885
17,011
$019,039
12,397
$00,0(36)
38
$00,0(36)
38
$0,001,226
2,287
$001,133
1,858
$00,0(23)
41
$00,0(23)
41
$0,000,265
1,144
$000,241
757
$00,00)1
4
$00,00(1
4
.
.
$00,(513)
$00,(513)
Notes: 1. The above transactions are valuated at market value and the valuated gains (losses) are accounted for in the consolidated statements of income.
Derivative transactions to which the hedge accounting method is applied are not included in the amounts above.
Some consolidated overseas subsidiaries account for interest rate derivatives in accordance with local accounting standards and such
transactions are not included in the figures above, of which their net unrealized gains amount to ¥2,848 million ($23 million).
2. Market value of transactions listed on exchange is calculated mainly using the closing prices on the Tokyo International Financial Futures
Exchange and others.
Market value of OTC transactions is calculated mainly using discounted present value and option pricing models.
136
(2) Currency Derivatives
March 31, 2001
Over-the-counter transactions
Currency swaps
Forward foreign exchange
Currency options
Sold
Bought
Other
Total
March 31, 2001
Over-the-counter transactions
Currency swaps
Forward foreign exchange
Currency options
Sold
Bought
Other
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
¥10,574,656
787,136
¥4,808,279
187,702
¥(69,281)
(13,451)
¥(69,281)
(13,451)
19,804
22,702
—
.
6,453
5,554
—
(1,583)
1,466
—
(1,583)
1,466
—
.
¥(82,850)
¥(82,850)
Millions of U.S. dollars
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
$85,348
6,353
$38,808
1,515
$(559)
(109)
$(559)
(109)
160
183
—
.
52
45
—
(13)
12
—
(13)
12
—
.
$(669)
$(669)
Notes: 1. The above transactions are valuated at market value and the valuated gains (losses) are accounted for in the consolidated statements of income.
Derivative transactions to which the hedge accounting method is applied are not included in the amounts above.
Some consolidated overseas subsidiaries account for currency derivatives in accordance with local accounting standards and such transactions
are not included in the figures above, of which their net unrealized gains amount to ¥650 million ($5 million).
2. Market value is calculated mainly using discounted present value.
3. Forward foreign exchange and currency options which are of the following types are not included in the figures above:
1) Those that are revaluated at fiscal year-end and the revaluated gains (losses) are accounted for in the consolidated statement of income.
2) Those that are allotted to financial assets/liabilities by foreign currency and whose market values are already reflected in the amount of the
financial assets/liabilities on the consolidated balance sheet.
3) Those that are allotted to financial assets/liabilities by foreign currency and the financial assets/liabilities are eliminated in the process of
consolidation.
The contract amount of currency derivatives which are revaluated at the consolidated balance sheet date are as follows:
March 31, 2001
Transactions listed on exchange
Currency futures:
Sold
Bought
Currency options:
Sold
Bought
Over-the-counter transactions:
Forward foreign exchange
Currency options:
Sold
Bought
Other:
Sold
Bought
Millions of yen
Millions of
U.S. dollars
Contract amount
Contract amount
¥0000000—.
—
$000)0—.
—
—
—
—
—
¥48,193,991
$388,975
1,877,037
1,606,427
15,150
12,966
—
—
—
—
137
(3) Stock Derivatives
March 31, 2001
Transactions listed on exchange
Stock price index futures:
Sold
Bought
Stock price index options:
Sold
Bought
Over-the-counter transactions
Equity options:
Sold
Bought
Stock price index swaps
Other:
Sold
Bought
Total
March 31, 2001
Transactions listed on exchange
Stock price index futures:
Sold
Bought
Stock price index options:
Sold
Bought
Over-the-counter transactions
Equity options:
Sold
Bought
Stock price index swaps
Other:
Sold
Bought
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
¥03,039
—
¥00,0—.
—
¥00,137
—
¥00,137
—
¥0000—.
—
¥0000—.
—
¥0000—.
—
¥0000—.
—
¥0000—.
—
¥0000—.
—
¥0000—.
—
¥0000—.
—
¥45,202
¥16,039
¥00(805)
¥00(805)
¥79,457
34,947
¥61,219
—
¥10,685
(1,072)
¥10,685
(1,072)
¥08,944
¥08,944
Millions of U.S. dollars
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
$025
—
$,0—.
—
$,0—.
—
$365
$641
282
$,0—.
—
$,0—.
—
$,0—.
—
$129
$494
—
$01
—
$,—.
—
$,—.
—
$,(6)
$86
(9)
$72
$01
—
$,—.
—
$,—.
—
$,(6)
$86
(9)
$72
Notes: 1. The above transactions are valuated at market value and the valuated gains (losses) are accounted for in the consolidated statements of income.
Derivative transactions to which the hedge accounting method is applied are not included in the amounts above.
2. Market value of transactions listed on exchange is calculated mainly using the closing prices on the Tokyo Stock Exchange.
Market value of OTC transactions is calculated mainly using discounted present value and option pricing models.
138
(4) Bond Derivatives
March 31, 2001
Transactions listed on exchange
Bond futures:
Sold
Bought
Bond futures options:
Sold
Bought
Over-the-counter transactions
Bond options:
Sold
Bought
Other:
Sold
Bought
Total
March 31, 2001
Transactions listed on exchange
Bond futures:
Sold
Bought
Bond futures options:
Sold
Bought
Over-the-counter transactions
Bond options:
Sold
Bought
Other:
Sold
Bought
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
¥02,000
—
¥02,000
—
¥0000—.
—
¥0000—.
—
¥21,981
25,457
¥19,850
18,562
¥0000—.
—
¥0000—.
—
¥08
—
¥,—
—
¥00
0
¥,—
—
¥08
¥08
—
¥,—
—
¥00
0
¥,—
—
¥08
Millions of U.S. dollars
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
$016
—
$0,—.
—
$177
206
$0,—.
—
$016
—
$0,—.
—
$160
150
$0,—.
—
$,0
—
$—
—
$,0
0
$—
—
$,0
$,0
—
$—
—
$,0
0
$—
—
$,0
Notes: 1. The above transactions are valuated at market value and the valuated gains (losses) are accounted for in the consolidated statements of income.
Derivative transactions to which the hedge accounting method is applied are not included in the amounts above.
2. Market value of transactions listed on exchange is calculated mainly using the closing prices on the Tokyo Stock Exchange.
Market value of OTC transactions is calculated mainly using option pricing models.
139
(5) Commodity Derivatives
March 31, 2001
Over-the-counter transactions
Commodity options:
Sold
Bought
Total
March 31, 2001
Over-the-counter transactions
Commodity options:
Sold
Bought
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
¥2,707
2,707
¥2,707
2,707
¥56
(4)
¥51
¥56
(4)
¥51
Millions of U.S. dollars
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
$22
22
$22
22
$0
(0)
$0
$0
(0)
$0
Notes: 1. The above transactions are valuated at market value and the valuated gains (losses) are accounted for in the consolidated statement of income.
Derivative transactions to which the hedge accounting method is applied are not included in the amounts above.
2. Market value is calculated based on factors such as price of the relevant commodity and contract term.
(6) Credit Derivative Transactions
March 31, 2001
Over-the-counter transactions
Credit default options:
Sold
Bought
Other:
Sold
Bought
Total
March 31, 2001
Over-the-counter transactions
Credit default options:
Sold
Bought
Other:
Sold
Bought
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
¥42,389
55,966
¥33,782
43,746
¥0,(366)
465
¥0,(366)
465
¥32,669
62,942
¥14,500
58,978
¥(8,276)
7,334
¥(8,276)
7,334
¥0,(842)
¥0,(842)
Millions of U.S. dollars
Contract amount
Total
Over
one year
Market value
Net valuated
gains (losses)
$342
452
$264
508
$273
353
$117
476
$0(3)
4
$(67)
59
$0(7)
$0(3)
4
$(67)
59
$0(7)
Notes: 1. The above transactions are valuated at market value and the valuated gains (losses) are accounted for in the consolidated statements of income.
Derivative transactions to which the hedge accounting method is applied are not included in the amounts above.
2. Market value is calculated based on factors such as price of the relevant commodity and contract term.
3. ‘Sold’ represents transactions in which the credit risk is accepted; ‘Bought’ represents transactions in which the credit risk is transferred.
140
(Appendix) Previous Year’s Information on Derivative Transactions
Notes: 1. Contract amount lists notional amount for swaps or contract value for futures, options and other derivatives. Option premiums accounted for in
the consolidated balance sheets are denoted by brackets ([ ]).
2. Market values of contracts listed on exchanges are based on the closing prices on the relevant exchanges.
(1) Interest Rate Derivatives
March 31, 2000
Transactions listed on exchange
Interest rate futures:
Sold
Bought
Interest rate options:
Sold
Call
Put
Bought
Call
Put
Millions of yen
Contract amount
Total
Over
one year
Market value
Unrealized
gains (losses)
¥11,123,048
10,099,803
¥52,429
—
¥11,074,094
10,058,766
¥048,953
(41,036)
¥00,00000—.
[—]
—
[—]
—
[—]
—
[—]
¥0000—.
¥00,00000—.
¥000,0—.
—
—
—
—
—
—
—
—
—
141
(continued)
March 31, 2000
Over-the-counter transactions
Forward rate agreements:
Sold
Bought
Interest rate swaps:
Receivable fixed rate/payable floating rate
Receivable floating rate/payable fixed rate
Receivable floating rate/payable floating rate
Swaptions:
Sold
Call
Put
Bought
Call
Put
Caps:
Sold
Bought
Floors:
Sold
Bought
Other:
Sold
Bought
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Unrealized
gains (losses)
¥00,002,160
1,506
¥0000000—.
—
¥48,250,014
27,361,147
20,031,787
508,746
¥22,256,360
11,051,720
10,429,396
427,421
¥002,111
1,510
¥125,780
499,210
(372,856)
(395)
¥000,049
4
¥125,780
499,210
(372,856)
(395)
¥00,098,150
[3,309]
2,546
[—]
19,356
[266]
2,546
[—]
¥00,076,931
[67]
249,635
[1,913]
¥00,055,026
[1,543]
2,054
[5]
¥0000000—.
[—]
—
[—]
¥00,048,200
—
11,356
—
¥00,032,658
200,907
¥00,047,088
1,031
¥0000000—.
—
¥000,956
¥002,353
(88)
88
156
(68)
(110)
(68)
¥000,493
¥000(426)
1,132
(780)
¥002,025
¥000(481)
10
5
¥000,0—.
¥00,00—.
—
—
¥134,332
Notes: 1. Regarding over-the-counter transactions, market value calculation is based on net present value or option pricing model.
2. A swaption call is defined as a right to carry out an interest rate swap with a floating receivable rate and a fixed payable rate. A swaption put is
defined as a right to carry out an interest rate swap with a fixed receivable rate and a floating payable rate.
3. The market value or unrealized gains (losses) for interest rate swaps, excluding trading transactions, includes ¥205,785 million of accrued
interest, which has been accounted for in the consolidated statements of income.
142
4. Derivative transactions, which are classified as trading transactions, are not included in the figures on the previous page because revaluated
gains (losses) are accounted for in the consolidated statements of income. Figures on trading transactions are as follows:
March 31, 2000
Transactions listed on exchange
Interest rate futures:
Sold
Bought
Interest rate options:
Sold
Call
Put
Bought
Call
Put
Over-the-counter transactions:
Forward rate agreements:
Sold
Bought
Interest rate swaps:
Receivable fixed rate/payable floating rate
Receivable floating rate/payable fixed rate
Receivable floating rate/payable floating rate
Swaptions:
Sold
Call
Put
Bought
Call
Put
Caps:
Sold
Bought
Floors:
Sold
Bought
Other:
Sold
Bought
Millions of yen
Contract amount
Market value
¥000,376,132
¥0,376,065
2,993,460
2,993,271
¥00000000—.
[—]
—
[—]
—
[—]
—
[—]
¥000000—.
—
—
—
¥004,459,803
¥4,459,860
463,020
462,888
¥123,131,402
¥000(5,904)
62,619,490
56,298,809
3,358,339
705,951
(708,757)
(1,964)
¥000,125,840
[1,495]
¥000(3,131)
173,210
[1,623]
118,000
[2,841]
143,939
[555]
(2,516)
(143)
646
¥003,262,039
[15,723]
¥00(10,897)
1,834,494
[7,413]
9,546
¥000,284,086
[3]
¥000(2,020)
329,676
[1,706]
3,597
¥000,045,730
[349]
¥00000079
125,263
[—]
(198)
143
(2) Currency Derivatives
March 31, 2000
Over-the-counter transactions
Currency swaps:
US$
£Stg.
Euro
Other
Other:
US$
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Unrealized
gains (losses)
¥2,854,232
2,207,137
86,458
5,043
555,592
¥1,541,624
1,254,151
59,235
—
228,236
¥0,(883)
(2,309)
1,216
15
193
¥0,(883)
(2,309)
1,216
15
193
1,092
.
—
68
68
¥0,(815)
Notes: 1. Market value calculation is based on net present value.
2. The market value or unrealized gains (losses) for currency swaps and other transactions, excluding trading transactions, includes ¥6,731 million
of accrued interest, which has been accounted for in the consolidated statements of income.
3. Derivative transactions in trading account are not included in the figures above because revaluated gains (losses) are accounted for in the
consolidated statements of income. Contract amounts are as follows:
March 31, 2000
Over-the-counter transactions
Currency swaps:
US$
Euro
SFr
Other
Forward foreign exchange:
Currency options:
Millions of yen
Contract amount
Market value
¥9,046,598
7,919,579
343,486
3,171
780,360
¥0,565,868
¥0,005,557
¥(64,124)
(64,433)
39
200
68
¥(16,132
¥0(1,321)
144
4. Forward foreign exchange and currency options which are revaluated at the end of fiscal year and revaluated gains (losses) are accounted for in
the consolidated statements of income are not included in the figures on the previous page.
The contracts so treated are as follows:
March 31, 2000
Transactions listed on exchange
Currency futures:
Sold
Bought
Currency options:
Sold
Call
Put
Bought
Call
Put
Over-the-counter transactions
Foward foreign exchange:
Currency options:
Sold
Bought
Other:
Sold
Bought
Millions of yen
Contract amount
¥00,000,0—.
—
.
¥00,000,0—.
[—]
—
[—]
—
[—]
—
[—]
¥41,745,624
1,179,988
(14,341)
964,387
(17,199)
¥00,000,0—.
—
145
(3) Stock Derivatives
March 31, 2000
Transactions listed on exchange
Stock price index futures:
Sold
Bought
Stock price index options:
Sold
Call
Put
Bought
Call
Put
Over-the-counter transactions
Equity options:
Sold
Call
Put
Bought
Call
Put
Stock price index swaps:
Stock price index receivable/interest floating rate payable
Stock price index payable/interest floating rate receivable
Other:
Sold
Bought
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Unrealized
gains (losses)
¥—
—
¥—
[—]
—
[—]
—
[—]
—
[—]
¥—
[—]
—
[—]
—
[—]
—
[—]
¥—
—
—
[—]
58
[22]
¥—
—
¥—
—
—
—
¥—
—
—
—
¥—
—
—
—
¥—
—
¥(—
—
¥—
¥—
—
—
—
—
—
—
¥—
¥—
—
—
—
¥—
—
—
9
—
—
—
¥—
—
—
(13)
¥(13)
Notes: 1. For over-the-counter transactions, market value calculation is based on net present value or option pricing model.
146
2. Derivative transactions, which are classified as trading transactions, are not included in the figures on the previous page because revaluated
gains (losses) are accounted for in the consolidated statements of income. Figures on trading transactions are as follows:
March 31, 2000
Transactions listed on exchange
Stock price index futures:
Sold
Bought
Stock price index options:
Sold
Call
Put
Bought
Call
Put
Over-the-counter transactions
Equity options:
Sold
Call
Put
Bought
Call
Put
Stock price index swaps
Other:
Sold
Bought
Millions of yen
Contract amount
Market value
¥00000—.
48,554
¥000,0—.
51,294
¥00000—.
[—]
—
[—]
1,858
[49]
—
[—]
¥000,0—.
—
67
—
¥074,558
¥0(8,824)
14,135
95
36,269
1,197
22,497
(170)
¥126,759
¥00,(905)
—
[—]
—
[—]
—
—
147
(4) Bond Derivatives
March 31, 2000
Transactions listed on exchange
Bond futures:
Sold
Bought
Bond futures options:
Sold
Call
Put
Bought
Call
Put
Over-the-counter transactions
Bond options:
Sold
Call
Put
Bought
Call
Put
Other:
Sold
Call
Put
Bought
Call
Put
Total
Millions of yen
Contract amount
Total
Over
one year
Market value
Unrealized
gains (losses)
¥416,719
47,866
¥0000—.
—
¥419,622
48,035
¥(2,902)
168
¥000,0—.
[—]
—
[—]
—
[—]
—
[—]
¥000,0—.
[—]
—
[—]
—
[—]
—
[—]
¥000,0—.
[—]
—
[—]
—
[—]
—
[—]
¥0000—.
¥000,0—.
¥000—.
—
—
—
—
—
—
—
—
—
¥0000—.
¥000,0—.
¥000—.
—
—
—
—
—
—
—
—
—
¥0000—.
¥000,0—.
¥000—.
—
—
—
—
—
—
—
—
—
¥(2,734)
Note: Derivative transactions, which are classified as trading transactions, were not included in the figures above because revaluated gains (losses) are
accounted for in the consolidated statements of income. Figures on trading transactions are on the following page.
148
March 31, 2000
Transactions listed on exchange
Bond futures:
Sold
Bought
Bond futures options:
Sold
Call
Put
Bought
Call
Put
Over-the-counter transactions
Bond options:
Sold
Call
Put
Bought
Call
Put
Other:
Sold
Bought
Millions of yen
Contract amount
Market value
¥6,548
4,804
¥0,0—.
[—]
—
[—]
—
[—]
—
[—]
¥0,0—.
[—]
—
[—]
—
[—]
—
[—]
¥6,575
4,862
¥0,0—.
—
—
—
¥0,0—.
—
—
—
¥0,0—.
—
¥0,0—.
—
(5) Commodity Derivatives
There are no corresponding items.
(6) Credit Derivative Transactions
All credit derivative transactions other than trading transactions are treated in the same way as guarantees and have been excluded from
the following table.
The transactions which are classified as trading transactions are recorded at estimated market value and related gains and losses are
included in trading profits or losses on the consolidated statements of income.
The contract amounts of derivative transactions included in trading transactions are as follows:
March 31, 2000
Over-the-counter transactions
Sold
Bought
Millions of yen
Contract amount
Market value
¥015,828
117,465
¥00(25)
9,890
Notes: 1. Market value is calculated based on the price of the reference assets or components such as the contract term.
2. “Sold” represents transactions in which the Bank accepts the credit risk, and “Bought” represents transactions in which the Bank transfers the
credit risk.
149
32. Segment Information
(1) Business segment information
Year ended March 31, 2001
Banking business
Leasing
Other
Total
Elimination
Consolidated
Millions of yen
I. Operating income
(1) External customers
(2) Intersegment
Total
Operating expenses
Operating profit
II. Assets
Depreciation
Capital expenditure
¥01,843,146 ¥0,516,850 ¥0,365,998 ¥02,725,995 ¥000)000—. ¥02,725,995
—
(190,901)
190,901
111,435
75,387
4,078
¥01,918,534 ¥0,520,929 ¥0,477,434 ¥02,916,897 ¥0,(190,901) ¥02,725,995
2,415,254
1,731,682
2,545,968
(130,713)
314,034
500,251
¥00,186,851 ¥00,20,677 ¥0,163,399 ¥00,370,929 ¥0,0(60,187) ¥00,310,741
¥66,438,599 ¥1,535,527 ¥4,544,442 ¥72,518,569 ¥(5,125,594) ¥67,392,974
360,752
346,493
317,022
271,022
360,752
346,493
34,981
64,749
8,748
10,721
—
—
Year ended March 31, 2000
Banking business
Leasing
Other
Total
Elimination
Consolidated
Millions of yen
I. Operating income
(1) External customers
(2) Intersegment
Total
Operating expenses
Operating profit
II. Assets
Depreciation
Capital expenditure
¥02,208,367 ¥0,522,953
4,869
36,596
¥0,271,602 ¥03,002,923
141,398
99,933
¥[0,000,0—. ¥03,002,923
—
(141,398)
¥02,244,963 ¥0,527,822
506,429
2,062,769
¥0,371,535 ¥03,144,322 ¥0,(141,398) ¥03,002,923
2,765,637
2,901,481
(135,843)
332,282
¥00,182,194 ¥0,021,393
¥0,039,253 ¥00,242,841 ¥0,00(5,555) ¥00,237,285
¥52,348,529 ¥1,479,808 ¥4,548,267 ¥58,376,605 ¥(4,609,101) ¥53,767,504
45,077
33,033
329,348
272,749
4,989
4,581
379,415
310,363
—
—
379,415
310,363
Year ended March 31, 2001
Banking business
Leasing
Other
Total
Elimination
Consolidated
Millions of U.S. dollars
I. Operating income
(1) External customers
(2) Intersegment
Total
Operating expenses
Operating profit
II. Assets
Depreciation
Capital expenditure
$014,876
609
$015,485
13,977
$04,172
32
$04,204
4,037
$02,954
899
$03,853
2,534
$022,002
1,540
$023,542
20,548
$0,,,00—.
(1,540)
$0(1,540)
(1,054)
$022,002
—
$022,002
19,494
$001,508
$00,167
$01,319
$002,994
$0,0(486)
$002,508
$536,228
0282
0523
$12,393
2,559
2,187
$36,678
71
87
$585,299
2,912
2,797
$(41,369)
—
—
$543,930
2,912
2,797
Notes: 1. The business segmentation is determined based on the Bank’s internal administrative purposes.
2. “Other” includes securities, credit card, investment banking, loans and venture capital etc.
3. Impact on application of new accounting standards is as follows:
(a) Accounting standard for employee retirement benefit
As shown in Notes to consolidated financial statements, accounting standard for retirement benefits was applied from the fiscal year ended
March 31, 2001. Consequently, operating profit increased by ¥10,533 million ($85 million) in banking business, decreased by ¥62 million
($1 million) in leasing, and decreased by ¥110 million ($1 million) in other for 2001 compared with prior accounting method.
(b) Accounting standard for financial instruments
As shown in Notes to consolidated financial statements, accounting standard for financial instruments was applied from the fiscal year ended
March 31, 2001, and the method to evaluate securities and derivatives and the method of hedge accounting were changed. Consequently,
operating profit increased by ¥21,019 million ($170 million) in banking business, decreased by ¥161 million ($1 million) in leasing and by
¥119 million ($1 million) in other for 2001 compared with prior accounting method.
Effective April 1, 2000, income and expenses relating to derivative transactions that met the criteria for hedge accounting were presented
net by account, which was changed from prior accounting that presented net by transaction. As a result, operating income and expenses
150
decreased by ¥475,321 million ($3,836 million) in banking business, by ¥5,864 million ($47 million) in leasing, and by ¥11,993 million ($97
million) in other for 2001 compared with prior accounting method.
(c) Accounting standard for foreign currency transactions
As shown in Notes to consolidated financial statements, domestic consolidated subsidiaries (excluding a domestic banking subsidiary)
applied the revised accounting standard for foreign currency transactions from 2001. Consequently, operating profit decreased by ¥40
million in leasing and by ¥7 million in other for 2001 compared with prior accounting method.
(d) Taxation standard for enterprise tax
As shown in Notes to consolidated financial statements, enterprise tax other than relating to pre-tax income was included in operating
expenses. Effective April 1, 2000, the Special ordinance concerning taxation standard for enterprise taxes in relation to banks in the Tokyo
Metropolis (Tokyo Metropolis Ordinance 145 of April 1, 2000) was enacted, and the enterprise tax in Tokyo, which was not included in
operating expenses for prior period, was included in operating expenses in banking business by the amount of ¥8,100 million ($65 million)
for 2001.
4. Operating income represents total income excluding gains on disposition of premises and equipment, collection of written-off claims, gain on
sale of business operation and reversals of other reserves.
Operating expenses represent total expenses excluding losses on disposition of premises and equipment, amortized cost of unrecognized net
transition obligation for employee retirement benefit and other extraordinary expenses.
(2) Geographic segment information
Millions of yen
Year ended March 31, 2001
Japan
The Americas
Europe
Asia and Oceania
Total
Elimination
Consolidated
I. Operating income
(1) External customers
(2) Intersegment
Total
Operating expenses
Operating profit
¥02,075,857 ¥0,354,622 ¥0,168,645 ¥0,126,870 ¥02,725,995 ¥00,0000—. ¥02,725,995
—
40,438
(274,417)
274,417
116,616
53,979
63,382
¥02,192,474 ¥0,408,602 ¥0,232,028 ¥0,167,308 ¥03,000,413 ¥0,(274,417) ¥02,725,995
2,415,254
137,464
2,632,669
2,015,569
(217,414)
249,594
230,040
¥00,176,904 ¥0,159,007 ¥0,001,988 ¥0,029,843 ¥00,367,744 ¥0,0(57,002) ¥00,310,741
II. Assets
¥60,600,462 ¥5,051,346 ¥2,575,486 ¥2,300,560 ¥70,527,854 ¥(3,134,879) ¥67,392,974
Millions of yen
Year ended March 31, 2000
Japan
The Americas
Europe
Asia and Oceania
Total
Elimination
Consolidated
I. Operating income
(1) External customers
(2) Intersegment
¥02,388,478
86,088
¥0,296,813
53,410
¥0,128,364
54,999
¥0,189,267
28,352
¥03,002,923
222,851
¥[0,000,0—.
(222,851)
¥03,002,923
—
Total
Operating expenses
Operating profit
¥02,474,567
2,344,476
¥0,350,224
264,258
¥0,183,363
168,449
¥0,217,619
206,969
¥03,225,775
2,984,153
¥0,(222,851)
(218,516)
¥03,002,923
2,765,637
¥00,130,090
¥0,085,966
¥0,014,914
¥0,010,650
¥00,241,621
¥0,00(4,335)
¥00,237,285
II. Assets
¥49,196,165
¥4,039,567
¥1,756,961
¥2,647,550
¥57,640,245
¥(3,872,740)
¥53,767,504
Year ended March 31, 2001
Japan
The Americas
Europe
Asia and Oceania
Total
Elimination
Consolidated
Millions of U.S. dollars
I. Operating income
(1) External customers
(2) Intersegment
Total
Operating expenses
Operating profit
$016,755
940
$017,695
16,267
$02,862
436
$03,298
2,015
$01,361
512
$01,873
1,857
$01,024
326
$01,350
1,109
$022,002
2,214
$024,216
21,248
$000,0—.
(2,214)
$0(2,214)
(1,754)
$022,002
—
$022,002
19,494
$001,428
$01,283
$00,016
$00,241
$002,968
$00,(460)
$002,508
II. Assets
$489,108
$40,769
$20,787
$18,568
$569,232
$(25,302)
$543,930
151
Notes: 1. The geographic segmentation is decided based on the degrees of following factors: geographic proximity, similarity of economic activities and
relationship of business activities among regions.
2. The Americas includes the United States, Brazil and others; Europe includes the United Kingdom, France and others; Asia and Oceania includes
Hong Kong, Singapore and others except Japan.
3. (a) Accounting standard for employee retirement benefit
As shown in Notes to consolidated financial statements, accounting standard for retirement benefits was applied from the fiscal year ended
March 31, 2001. Consequently, operating profit increased by ¥10,360 million ($84 million) in Japan for 2001 compared with prior
accounting method.
(b) Accounting standard for financial instruments
As shown in Notes to consolidated financial statements, accounting standard for financial instruments was applied from the fiscal year ended
March 31, 2001, and the method to evaluate securities and derivatives and the method of hedge accounting were changed. Consequently,
operating profit increased by ¥22,556 million ($182 million) in Japan, by ¥3,304 million ($27 million) in the Americas, and by ¥731 million
($6 million) in Asia and Oceania and decreased by ¥5,853 million ($47 million) in Europe, for 2001 compared with prior accounting method.
Effective April 1, 2000, income and expenses relating to derivative transactions that meet the criteria for hedge accounting are presented
net by account, which has been changed from prior accounting that presented net by transaction. As a result, operating income and
expenses decreased by ¥220,611 million ($1,781 million) in Japan, by ¥134,827 million ($1,088 million) in the Americas, by ¥58,364 million
($471 million) in Europe, and by ¥79,374 million ($641 million) in Asia and Oceania for 2001 compared with the prior accounting method.
(c) Accounting standard for foreign currency transactions
As shown in Notes to consolidated financial statements, domestic consolidated subsidiaries (excluding a domestic banking subsidiary)
applied the revised accounting standard for foreign currency transactions from 2001. Consequently, operating profit decreased by ¥48
million in Japan for 2001 compared with prior accounting method.
(d) Taxation standard for enterprise tax
As shown in Notes to consolidated financial statements, enterprise tax other than relating to pre-tax income was included in operating
expenses. Effective April 1, 2000, the Special ordinance concerning taxation standard for enterprise taxes in relation to banks in the Tokyo
Metropolis (Tokyo Metropolis Ordinance 145 of April 1, 2000) was enacted, and the enterprise tax in Tokyo, which was not included in
operating expenses for prior period, was included in operating expenses in Japan by the amount of ¥8,100 million ($65 million) for 2001.
4. Operating income represents total income excluding gains on disposition of premises and equipment, recoveries of written-off claims, gain on
sale of business operation and reversals of other reserves.
Operating expenses represent total expenses excluding losses on disposition of premises and equipment, amortized cost of unrecognized net
transition obligation for employee retirement benefit and other extraordinary expenses.
(3) Operating income from overseas operations
Operating income from overseas operations (A)
Consolidated operating income (B)
(A) / (B)
Millions of yen
2001
2000
¥0,650,138
2,725,995
23.9%.
¥0,614,445
3,002,923
20.5%.
Millions of
U.S. dollars
2001
$05,247
22,002
23.9%.
Note: The above table shows operating income from transactions of the Bank’s overseas branches and overseas consolidated subsidiaries, excluding
internal income.
152
33. Subsequent Event
(1) Appropriations of retained earnings
The following appropriations of retained earnings of the Bank at March 31, 2001, were approved by the ordinary general meeting of
shareholders held on June 28, 2001.
Cash dividends, ¥3.00 per share on common stock
¥5.25 per share on preferred stock (first series type 1)
¥14.25 per share on preferred stock (second series type 1)
Millions of yen
¥9,423
351
1,425
Millions of
U.S. dollars
$76
3
12
(2) Merger with The Sakura Bank, Limited
On April 1, 2001, The Sumitomo Bank, Limited merged with The
Sakura Bank, Limited (“Sakura”) and succeeded its assets, liabili-
ties, all the claims, obligations and employees, and changed its
corporate name to Sumitomo Mitsui Banking Corporation.
Upon the merger;
(a) The Bank issued 2,470,846,767 par value common stocks
(par value of ¥50 per share) and allotted these common
stocks to each of Sakura’s shareholder listed in Sakura’s final
shareholders’ registration on the day immediately preceding
the appointed date of merger in the ratio of 1 to 0.6 of
Sakura’s common stock to the Bank’s common stock.
(b) The Bank issued 2,577,000 non-par-value Type VI preferred
stocks and allotted these preferred stocks to each share-
holder listed in Sakura’s final shareholders’ registration of
preferred stock (Series-II) on the day immediately preceding
the appointed date of merger in the ratio of 1 to 1 of Sakura’s
preferred stock (Series-II) to the Bank’s Type VI preferred
stock.
(c) The Bank issued 800,000,000 non-par-value Type V preferred
stocks and allotted these preferred stocks to each share-
holder listed in Sakura’s final shareholders’ registration of
preferred stock (Series-III (Type 2)) on the day immediately
preceding the appointed date of merger in the ratio of 1 to 1
of Sakura’s preferred stock (Series-III (Type 2)) to the Bank’s
Type V preferred stock.
(d) The Bank’s preferred stock increased by ¥400,309 million to
¥650,809 million, common stock increased by ¥123,542
million to ¥625,890 million, capital surplus increased by
¥991,326 million to ¥1,634,407 million, earned surplus
reserve increased by ¥131,261 million to ¥239,121 million,
land revaluation excess increased by ¥42,690 million to
¥209,583 million and retained earnings increased by
¥165,051 million to ¥413,077 million.
153
34. Parent Company
Nonconsolidated Balance Sheets
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited)
March 31, 2001 and 2000
Assets
Cash and due from banks
Deposits with banks
Call loans and bills bought
Receivables under resale agreements
Commercial paper and other debt purchased
Trading assets
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Premises and equipment
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Millions of yen
2001
2000
¥ 0,835,448
3,702,608
125,531
2,597,816
77,362
1,842,889
52,912
16,860,309
31,172,382
460,908
3,417,288
585,395
550,472
3,655,396
(671,042)
¥ 1,280,533
2,502,386
202,615
—
84,494
1,445,843
108,888
8,982,244
31,358,560
352,971
1,540,495
591,187
624,585
2,923,570
(909,039)
Millions of
U.S. dollars
2001
$ 06,743
29,884
1,013
20,967
624
14,874
427
136,080
251,593
3,720
27,581
4,725
4,443
29,503
(5,416)
Total assets
¥65,265,680
¥51,089,338
$526,761
Liabilities and stockholders’ equity
Liabilities
Deposits
Call money and bills sold
Payables under repurchase agreements
Commercial paper
Trading liabilities
Borrowed money
Foreign exchanges
Bonds
Convertible bonds
Other liabilities
Reserve for employee retirement benefit
Reserve for possible losses on loans sold
Other reserves
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Stockholders’ equity
¥37,195,694
5,330,519
4,857,211
500,400
1,008,330
2,388,329
212,344
1,000,607
101,106
6,923,707
—
70,809
8
102,506
3,655,396
¥34,229,831
2,739,363
—
110,200
603,424
2,461,252
165,145
432,343
101,106
5,173,303
46,764
111,588
8
110,798
2,923,570
¥63,346,972
¥49,208,701
$300,207
43,023
39,203
4,039
8,138
19,276
1,714
8,076
816
55,881
—
572
0
827
29,503
$511,275
Preferred stock, no par value; authorized 970,000 thousand shares
and issued 167,000 thousand shares in 2001 and 2000
Common stock, par value ¥50 per share; authorized 7,500,000 thousand shares
and issued 3,141,062 thousand shares in 2001 and 2000
Capital surplus
Earned surplus reserve
Land revaluation excess
Retained earnings
Total stockholders’ equity
Total liabilities and stockholders’ equity
¥00,250,500
¥00,250,500
$002,022
502,348
643,080
107,859
166,893
248,026
502,348
643,080
103,319
167,379
214,008
4,054
5,190
871
1,347
2,002
¥01,918,707
¥01,880,637
¥65,265,680
¥51,089,338
$015,486
$526,761
Note: Translation into U.S. dollars has been made on the basis of ¥123.90 to US$1, the effective exchange rate at March 31, 2001.
154
Nonconsolidated Statements of Income
Sumitomo Mitsui Banking Corporation (Formerly The Sumitomo Bank, Limited)
Years ended March 31, 2001, 2000 and 1999
Income
Interest income:
Interest on loans and discounts
Interest and dividends on securities
Interest on receivables under resale agreements
Other interest income
Fees and commissions
Trading profits
Other operating income
Other income
Total income
Expenses
Interest expenses:
Interest on deposits
Interest on borrowings and rediscounts
Interest on payables under repurchase agreements
Other interest expenses
Fees and commissions
Trading losses
Other operating expenses
General and administrative expenses
Transfer to reserve for possible loan losses
Other expenses
Total expenses
Income (loss) before income taxes
Income taxes:
Current
Deferred
Net income (loss)
Millions of yen
2001
2000
1999
¥0,778,683
218,173
1,614
260,699
119,990
74,609
24,021
373,042
¥0,766,285
142,745
—
507,548
106,565
34,227
61,072
565,902
¥0,971,144
175,223
—
499,542
104,338
37,156
115,264
170,659
¥1,850,834
¥2,184,348
¥2,073,328
¥0,398,203
118,481
7,512
93,500
38,575
—
49,272
331,467
5,653
674,115
¥0,282,160
110,299
—
420,641
37,306
944
49,091
350,791
292,209
492,402
¥0,506,237
122,861
—
413,916
43,159
542
69,729
366,369
566,279
617,656
¥1,716,783
¥2,035,847
¥2,706,752
¥0,134,051
¥0,148,500
¥0(633,423)
¥0,007,759
70,616
¥0,006,634
93,047
¥0,020,812
(280,112)
¥ 55,675
¥0,048,818
¥0(374,123)
Millions of
U.S. dollars
2001
$06,285
1,761
13
2,104
968
602
194
3,011
$14,938
$03,214
956
61
755
311
—
398
2,675
45
5,441
$13,856
$01,082
$00,063
570
$ 449
Per share data:
Net income (loss)
Net income—diluted
Declared dividends on common stock
Declared dividends on preferred stock (first series type I)
Declared dividends on preferred stock (second series type I)
¥00016.59
16.25
6.00
10.50
28.50
¥000,14.41
14.12
6.00
10.50
28.50
¥0,(119.11)
.—
6.00
0.03
0.08
$000.13
0.13
0.05
0.08
0.23
Yen
U.S. dollars
155
Report of Independent Public Accountants
To The Board of Directors of
Sumitomo Mitsui Banking Corporation
We have audited the accompanying consolidated balance sheets of Sumitomo Mitsui Banking Corporation (formerly The
Sumitomo Bank, Limited) and subsidiaries as of March 31, 2001 and 2000, and the related consolidated statements of
income, stockholders’ equity, and cash flows for each of the three years in the period ended March 31, 2001, expressed in
Japanese yen. Our audits were made in accordance with generally accepted auditing standards in Japan and, accordingly,
included such tests of the accounting records and such other auditing procedures as we considered necessary in the
circumstances.
In our opinion, the consolidated financial statements referred to above present fairly the consolidated financial position of
Sumitomo Mitsui Banking Corporation and subsidiaries as of March 31, 2001 and 2000, and the consolidated results of their
operations and their cash flows for each of the three years in the period ended March 31, 2001 in conformity with accounting
principles generally accepted in Japan applied on a consistent basis during the periods, except as noted in the following
paragraph.
As explained in Note 2, effective April 1, 2000, Sumitomo Mitsui Banking Corporation and subsidiaries prospectively adopted
new Japanese accounting standards for employees’ severance and retirement benefits, financial instruments and foreign
currency translation.
Also, in our opinion, the U.S. dollar amounts in the accompanying consolidated financial statements have been translated from
Japanese yen on the basis set forth in Note 1.
As explained in Note 33 (2), The Sumitomo Bank, Limited merged with The Sakura Bank, Limited on April 1, 2001.
Tokyo, Japan
June 28, 2001
Statement on Accounting Principles and Auditing Standards
This statement is to remind users that accounting principles and auditing standards and their application in practice may vary among nations
and therefore could affect, possibly materially, the reported financial position and results of operations. The accompanying financial state-
ments are prepared based on accounting principles generally accepted in Japan, and the auditing standards and their application in practice
are those generally accepted in Japan. Accordingly, the accompanying consolidated financial statements and the auditors’ report presented
above are for users familiar with Japanese accounting principles, auditing standards and their application in practice.
156
Summary of Significant Differences Between Japanese GAAP and U.S. GAAP
The consolidated financial statements of the Bank and its consolidated subsidiaries presented in this annual report conform with Japanese
Generally Accepted Accounting Principles (GAAP). Such principles vary from U.S. GAAP in the following significant respects.
Japanese GAAP
U.S. GAAP
Consolidated subsidiaries
The consolidated financial statements include all enterprises that
are controlled by the parent, irrespective of the percentage of the
voting shares owned.
Accounting for sales of loans with recourse
Under Japanese GAAP, certain loan participations which meet
specified criteria are allowed to be recorded as sales.
Accounting for derivatives and hedging activities
Under the new Japanese GAAP effective April 1, 2000, derivative
instruments are carried at fair value with changes included in the
current period income unless certain hedge accounting criteria
are met. In general, if derivative instruments are used as hedges
and meet certain hedging criteria, a company defers recognition
of gains or losses resulting from changes in fair value of deriva-
tive instruments as either an asset or liability until the related
losses or gains on the hedged items are recognized.
Securities
Under the new Japanese GAAP effective April 1, 2000, debt secu-
rities that the Bank has the intent and ability to hold to maturity
(held-to-maturity securities) are carried at amortized cost. Trading
securities are carried at market value with gains or losses in-
cluded in the current period income. Other securities (available-
for-sale securities) can be carried at cost (effective April 1, 2001,
other securities should be carried at fair value with unrealized
gains or losses recorded directly to equity, net of taxes).
Loan fees
Loan origination fees are recognized when income is received.
Statement of Financial Accounting Standards (“SFAS”) No. 94
requires, with a few exceptions, a parent company to consolidate
all of its majority-owned subsidiaries with more than 50% of
outstanding voting shares.
SFAS No. 140 specifies that sale of assets such as loans refers
to an outright sale with legal title passing to the purchaser. A
transfer of assets qualifying as a sale with recourse under SFAS
No. 140 would result in the recording of an estimated liability.
Derivative instruments are currently classified into trading and
hedging instruments. Derivative instruments for a trading purpose
and a hedging purpose are recorded at fair value and on an
accrual basis, respectively. Under SFAS No. 133 and No. 137
effective all fiscal years beginning after June 15, 2000, derivative
instruments are recorded at fair value with changes recognized
currently in earnings unless precise hedge accounting criteria are
met.
Under SFAS No. 115, debt securities intended to be held to matu-
rity are carried at amortized cost. Equity securities and debt
securities available for sale are carried at fair values with unreal-
ized gains and losses reported as comprehensive income in the
stockholders’ equity section. Trading securities are carried at
market value with gains and losses included in the current period
income.
Loan origination fees are deferred and recognized over the life of
the loan.
Accrued interest on non-performing loans
The Bank places into the nonaccrual status the loans which
management assessed as “Bankrupt” and “Effectively Bankrupt”
and “Potentially Bankrupt.”
Loans are generally placed on nonaccrual status when they
become 90 days past due or when they are deemed uncollectible
based on management’s assessment.
157
Restructured loans
Discounted present value is not used to measure impairment of
a loan. Reserve for restructured loans is computed based on
historical loss experience.
Earned surplus reserve
An amount equivalent to at least 20% of cash disbursements,
such as dividend distribution, must be appropriated as earned
surplus reserve in the retained earnings.
Leases
Unless transfer of ownership occurs, financing leases may be
accounted for as operating leases accompanied with sufficient
footnote disclosure.
Land revaluation excess
Land which had been recorded at cost was revalued at fair value.
The resulting gains were recorded in land revaluation excess in
the stockholders’ equity section.
Guarantees
Guarantees, including standby letters of credit and the related
reimbursement obligations of customers, are included on the face
of the financial statements and assets of equal amounts.
Directors’ bonuses
Directors’ bonuses are charged directly to earned surplus.
Comprehensive income
Reporting of other comprehensive income not included in net
income is not required.
SFAS No. 114 requires that impaired loans be measured based
on the present value of expected future cash flows discounted at
the loan’s effective interest rate or, as is practically expedient, at
the loan’s observable market price or the fair value of the
collateral if the loan is collateral-dependent.
Earned surplus reserve are not provided for under U.S. GAAP.
Leases are classified as either capital or operating, based on
specified criteria. A lease which transfers substantially all of the
benefits and risks of ownership to the lessee is reported as a
capital lease. Other leases are accounted for as operating leases.
Such land revaluation excess is not permissible.
Such guarantees and reimbursement obligations are disclosed in
the footnotes and not included in the balance sheet.
Directors’ compensation is generally expensed on an accrual
basis.
SFAS No. 130 requires the reporting of the revenues, expenses,
gains and losses that are not included in net income as
comprehensive income.
158
Supplemental Data (Consolidated)
INCOME ANALYSIS
Formerly The Sakura Bank, Limited and Subsidiaries
Operating Income, Classified by Domestic and Overseas Operations
Years ended March 31
2001
2000
2001
2000
2001
2000
2001
2000
Domestic operations
Overseas operations
Elimination
Total
Millions of yen
Interest income
Interest expenses
Net interest income
Fees and commissions (income)
Fees and commissions (expenses)
Net fees and commissions
Trading profits
Trading losses
Net trading income
Other operating income
Other operating expenses
Net other operating income
¥853,796 ¥1,103,878 ¥324,675 ¥360,523 ¥070,643 ¥065,459 ¥1,107,828 ¥1,398,941
743,919
655,022
463,441 280,097 344,461
16,061
44,578
640,437
437,710
670,118
223,203
630,592
65,590
5,052
63,983
1,476
¥198,328 ¥0,174,558 ¥010,933 ¥011,655 ¥00000—. ¥000,0—. ¥0,209,261 ¥0,186,213
66,414
119,799
61,863
147,397
57,180
141,147
61,651
112,907
4,683
6,250
4,763
6,891
—
—
—
—
¥122,550 ¥0,010,464 ¥004,257 ¥007,020 ¥00000—. ¥000,0—. ¥0,026,807 ¥0,017,484
994
16,490
—
26,807
—
22,550
71
10,392
—
4,257
923
6,097
—
—
—
—
¥189,471 ¥0,092,997 ¥008,150 ¥006,264 ¥00000—. ¥000,0—. ¥0,097,621 ¥0,099,261
67,883
31,378
55,471
42,149
54,880
34,590
64,984
28,012
591
7,558
2,898
3,365
—
—
—
—
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan.
Overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. Interest expenses are shown after deduction of an amount equivalent to interest expenses on money held in trust (2001, ¥130 million; 2000,
¥1,631 million).
3. As for interest income and interest expenses, internal transactions between domestic operations and overseas operations are shown in the
elimination column. As for fees and commissions (income) (expenses), trading profits and trading losses, and other operating income and other
operating expenses, internal transactions between domestic operations and overseas operations are excluded.
4. Due to application of the new accounting standard, interest income and interest expenses relating to derivative transactions that meet the
criteria for hedge accounting are presented net by account, which has been changed from prior accounting that presented net by transaction.
As a result, interest income and interest expenses for the year ended March 31, 2001 have decreased by ¥155,585 million, respectively.
Average Balance of Interest-Earning Assets and Interest-Bearing Liabilities, Interest and Yields
Domestic Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans and bills bought
Deposits with banks
Interest-bearing liabilities
Deposits
Negotiable certificates of deposit
Call money and bills sold
Commercial paper
Borrowed money
Millions of yen
Average balance
Interest
Earnings yield
2001
2000
2001
2000
2001
2000
¥39,629,986 ¥38,274,476
30,837,811
6,796,661
118,381
269,204
30,544,153
7,697,365
226,077
708,029
¥853,796 ¥1,103,878
658,031
107,583
291
7,801
667,713
125,971
2,451
36,306
2.15% 2.88%
2.18
1.63
1.08
5.12
2.13
1.58
0.24
2.89
¥38,203,911 ¥36,650,560
29,182,025
2,691,051
2,330,833
267,443
2,145,204
28,234,447
3,479,955
3,129,943
441,024
2,005,986
¥223,203 ¥0,463,441
99,523
4,170
6,441
1,094
45,061
108,285
10,506
9,283
2,976
41,005
0.58% 1.26%
0.38
0.30
0.29
0.67
2.04
0.34
0.15
0.27
0.40
2.10
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan.
2. As a general rule, average balances are calculated using average daily balances. For domestic consolidated subsidiaries except financial
business, however, an average balance based on the balances at the end of each semi-annual period is used.
3. Interest-earning assets are shown after deduction of the average balance of non-interest earning deposits with banks (2001, ¥334,599 million;
2000, ¥376,853 million) and interest-bearing liabilities are shown after deduction of an amount equivalent to the average balance of money held
in trust (2001, ¥50,636 million; 2000, ¥133,392 million) and interest (2001, ¥123 million; 2000, ¥1,626 million).
160
INCOME ANALYSIS
Formerly The Sumitomo Bank, Limited and Subsidiaries
Operating Income, Classified by Domestic and Overseas Operations
Years ended March 31
Interest income
Interest expenses
Net interest income
Fees and commissions (income)
Fees and commissions (expenses)
Net fees and commissions
Trading profits
Trading losses
Net trading income
Other operating income
Other operating expenses
Net other operating income
Domestic operations
Overseas operations
Elimination
Total
2001
2000
2001
2000
2001
2000
2001
2000
Millions of yen
¥959,017 ¥1,052,708 ¥481,206 ¥530,614 ¥(112,168) ¥(55,291) ¥1,328,056 ¥1,528,031
873,073
654,958
476,516 423,726 451,858
78,756
57,480
576,191
(55,804)
(56,363)
673,943
654,113
306,021
652,996
(55,300)
9
¥176,645 ¥0,165,029 ¥026,275 ¥019,744 ¥000,0(84) ¥0(2,136) ¥0,202,836 ¥0,182,637
36,775
145,861
29,802
146,843
33,918
168,918
30,170
134,858
4,246
22,029
8,430
11,313
(1,825)
(310)
(130)
45
¥043,914 ¥0,028,625 ¥045,207 ¥045,772 ¥00(4,744) ¥0(4,638) ¥0,084,376 ¥0,069,760
22,853
46,907
(4,744)
—
4,745
39,168
2,146
43,060
2,146
82,229
937
27,687
26,553
19,219
(4,638)
—
¥538,282 ¥0,568,113 ¥013,937 ¥022,061 ¥000,(158) ¥0,0(535) ¥0,552,060 ¥0,589,638
510,433
79,204
37,293
(23,356)
467,982
70,299
505,193
46,867
497,156
70,956
13,352
8,709
(75)
(460)
(81)
(76)
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan. Overseas
operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located overseas.
2. Interest expenses are shown after deduction of an amount equivalent to interest expenses on money held in trust (2001, ¥565 million; 2000,
¥1,242 million).
3. Internal transactions between domestic operations and overseas operations are shown in the elimination column.
4. Due to application of the new accounting standard, interest income and interest expenses relating to derivative transactions that meet the criteria
for hedge accounting are presented net by account, which has been changed from prior accounting that presented net by transaction. As a result,
interest income and interest expenses for the year ended March 31, 2001 have decreased by ¥493,177 million, respectively.
Average Balance of Interest-Earning Assets and Interest-Bearing Liabilities, Interest and Yields
Domestic Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans and bills bought
Receivables under resale agreements
Deposits with banks
Interest-bearing liabilities
Deposits
Negotiable certificates of deposit
Call money and bills sold
Payables under repurchase agreements
Commercial paper
Borrowed money
Bonds
Average balance
Interest
Earnings yield
2001
2000
2001
2000
2001
2000
Millions of yen
¥43,761,247 ¥39,967,136
30,585,767
7,751,326
257,639
—
1,026,205
29,640,322
11,520,742
343,620
278,995
1,569,608
¥42,156,287 ¥39,427,381
25,410,496
5,658,239
3,541,425
—
366,793
3,947,864
336,515
25,058,159
5,347,869
4,026,447
2,579,529
413,450
3,649,186
887,721
¥959,017 ¥1,052,708
650,841
119,432
3,953
633,924
198,736
4,439
1,137
97,378
2.19% 2.63%
2.14
1.73
1.29
— 0.41
6.20
2.13
1.54
1.53
.—
3.59
36,865
¥306,021 ¥0,476,516
119,424
8,815
6,021
0.73% 1.21%
0.56
0.29
0.29
— 0.29
0.42
2.71
1.90
0.47
0.16
0.17
.—
0.27
2.74
1.83
978
108,178
6,155
140,304
15,329
11,703
7,512
1,754
98,826
16,844
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan.
2. As a general rule, average balances are calculated using average daily balances. For some consolidated subsidiaries, however, an average
balance based on the balances at the end of each week, month or semi-annual period is used.
3. Money held in trust is not included in interest-earning assets, and accordingly the amounts of interest-bearing liabilities are shown after deduction
of amounts equivalent to the average balance of money held in trust (2001, ¥85,524 million; 2000, ¥108,483 million) and corresponding
interest (2001, ¥565 million; 2000, ¥1,242 million).
161
Formerly The Sakura Bank, Limited and Subsidiaries
Overseas Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans and bills bought
Deposits with banks
Interest-bearing liabilities
Deposits
Negotiable certificates of deposit
Call money and bills sold
Commercial paper
Borrowed money
Average balance
Interest
Earnings yield
2001
2000
2001
2000
2001
2000
Millions of yen
¥5,460,757
3,978,439
220,734
48,826
1,103,360
¥5,142,279
4,243,255
217,170
54,068
530,360
¥5,422,693
3,143,698
47,442
99,410
10,583
1,308,437
¥4,821,896
2,568,758
50,869
56,430
—
1,332,204
¥324,675
183,555
13,768
3,154
69,658
¥280,097
130,135
2,511
4,510
704
58,742
¥360,523
159,127
11,847
2,695
24,740
5.94% 7.01%
4.61
6.23
6.45
6.31
3.75
5.45
4.98
4.66
¥344,461
69,334
3,793
2,340
5.16% 7.14%
4.13
5.29
4.53
— 6.65 —
4.48
2.69
7.45
4.14
3.84
51,248
Notes: 1. Overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. As a general rule, average balances are calculated using average daily balances. For subsidiaries with a head office located overseas, however,
an average balance based on the balances at the end of semi-annual period is used.
3. Interest-earning assets are shown after deduction of the average balance of non-interest earning deposits with banks (2001, ¥4,073 million;
2000, ¥7,737 million) and interest-bearing liabilities are shown after deduction of an amount equivalent to the average balance of money held in
trust (2001, ¥139 million; 2000, ¥67 million) and interest (2001, ¥7 million; 2000, ¥5 million).
Total of Domestic and Overseas Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans and bills bought
Deposits with banks
Interest-bearing liabilities
Deposits
Negotiable certificates of deposit
Call money and bills sold
Commercial paper
Borrowed money
Millions of yen
Average balance
Interest
Earnings yield
2001
2000
2001
2000
2001
2000
¥42,752,740 ¥40,653,736
32,859,959
6,770,728
156,842
522,943
32,589,813
7,789,349
256,702
1,553,926
¥1,107,828 ¥1,398,941
764,328
117,759
2,735
25,884
795,443
134,621
5,374
100,750
2.59% 3.44%
2.44
1.72
2.09
6.48
2.32
1.73
1.74
4.94
¥41,560,846 ¥39,249,060
31,520,040
2,667,332
2,350,306
267,443
1,608,315
31,173,079
3,491,797
3,210,861
451,608
1,514,119
¥1,437,710 ¥0,743,919
162,312
7,859
8,312
1,094
43,580
233,379
12,845
13,563
3,679
43,922
1.05% 1.89%
0.74
0.36
0.42
0.81
2.90
0.51
0.29
0.35
0.40
2.70
Notes: 1. The amounts shown in the total column exclude internal transactions between domestic operations and overseas operations.
2. Interest-earning assets are shown after deduction of the average balance of non-interest earning deposits with banks (2001, ¥338,672 million;
2000, ¥384,590 million) and interest-bearing liabilities are shown after deduction of an amount equivalent to the average balance of money held
in trust (2001, ¥50,775 million; 2000, ¥133,459 million) and interest (2001, ¥130 million; 2000, ¥1,631 million).
162
Formerly The Sumitomo Bank, Limited and Subsidiaries
Overseas Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans and bills bought
Receivables under resale agreements
Deposits with banks
Interest-bearing liabilities
Deposits
Negotiable certificates of deposit
Call money and bills sold
Payables under repurchase agreements
Commercial paper
Borrowed money
Bonds
Average balance
Interest
Earnings yield
2001
2000
2001
2000
2001
2000
Millions of yen
¥8,543,552
5,140,836
799,311
72,783
249,572
1,940,830
¥7,694,131
5,520,504
155,435
110,934
349,206
8,248
244,530
1,265,359
¥7,512,428
5,605,366
644,374
58,404
—
946,961
¥5,635,880
4,047,646
178,330
62,856
—
70,598
242,133
977,033
¥481,206
273,251
51,620
2,667
9,723
120,780
¥423,726
234,585
7,681
3,872
14,712
475
13,297
43,501
¥530,614
243,195
42,839
1,617
5.63% 7.06%
5.32
6.46
3.66
— 3.90
6.22
4.34
6.65
2.77
.—
5.05
47,796
¥451,858
151,248
9,200
2,586
5.51% 8.02%
4.25
4.94
3.49
— 4.21
5.77
5.44
3.44
3.74
5.16
4.11
.—
5.71
5.04
3.96
4,031
12,194
38,696
Notes: 1. Overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. For some consolidated subsidiaries, an average balance based on the balance at the end of each week, month, or semi-annual period is used.
Total of Domestic and Overseas Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans and bills bought
Receivables under resale agreements
Deposits with banks
Interest-bearing liabilities
Deposits
Negotiable certificates of deposit
Call money and bills sold
Payables under repurchase agreements
Commercial paper
Borrowed money
Bonds
Average balance
Interest
Earnings yield
2001
2000
2001
2000
2001
2000
Millions of yen
¥50,855,990 ¥45,951,745
34,686,573
8,393,160
316,043
—
1,952,501
33,344,068
12,317,862
416,403
528,568
3,500,912
¥48,400,855 ¥43,534,455
29,436,514
5,836,546
3,604,281
—
437,391
2,685,437
1,311,007
30,568,412
5,503,275
4,137,382
2,928,735
421,698
2,456,627
2,150,889
¥1,328,056 ¥1,528,031
839,295
162,129
5,570
851,820
193,828
7,106
10,861
217,874
2.61% 3.33%
2.55
1.57
1.71
— 2.05
6.22
2.42
1.93
1.76
.—
4.32
84,335
¥0,673,943 ¥0,873,073
270,347
18,016
8,607
374,606
23,010
15,575
22,224
2,229
56,768
60,182
1.39% 2.01%
1.23
0.42
0.38
— 0.76
0.53
2.31
2.80
0.92
0.31
0.24
.—
1.15
2.44
3.41
5,010
65,621
44,709
Notes: 1. The amounts shown in the total column exclude internal transactions between domestic operations and overseas operations.
2. Money held in trust is not included in interest-earning assets, and accordingly the amounts of interest-bearing liabilities are shown after deduction
of amounts equivalent to the average balance of money held in trust (2001, ¥85,524 million; 2000, ¥108,483 million) and corresponding
interest (2001, ¥565 million; 2000, ¥1,242 million).
163
Formerly The Sakura Bank, Limited and Subsidiaries
Fees and Commissions
Years ended March 31
Fees and commissions (income)
Deposits and loans
Remittances and transfers
Securities-related business
Agency
Safe deposits
Guarantees
Fees and commissions (expenses)
Remittances and transfers
Millions of yen
Domestic operations
Overseas operations
Total
2001
2000
2001
2000
2001
2000
¥198,328 ¥174,558 ¥10,933 ¥11,655
2,999
1,473
367
246
5
1,682
10,861
51,380
25,108
3,336
2,961
13,664
9,296
49,343
20,920
3,489
3,080
11,325
4,601
1,537
83
59
5
149
¥057,180 ¥061,651 ¥04,683 ¥04,763
136
10,538
10,174
868
¥209,261 ¥186,213
12,296
50,816
21,288
3,735
3,085
13,007
15,463
52,918
25,191
3,396
2,967
13,813
¥061,863 ¥066,414
10,311
11,407
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan.
Overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. The amounts shown in the above table exclude internal transactions between domestic operations and overseas operations.
Trading Income
Years ended March 31
Trading profits
Gains on trading securities
Gains on securities related to
trading transactions
Gains on trading-related
financial derivatives
Other
Trading losses
Losses on trading securities
Losses on securities related to
trading transactions
Losses on trading-related
financial derivatives
Other
Millions of yen
Domestic operations
Overseas operations
Total
2001
2000
2001
2000
2001
2000
¥22,550 ¥10,464
1,819
5,163
¥4,257
2,182
¥7,020
1,831
¥26,807
7,345
¥17,484
3,650
1
—
2,026
—
2,028
—
15,988
1,396
7,060
1,583
—
48
5,185
4
15,988
1,445
12,246
1,588
¥0000—. ¥00,071
—
—
¥000—.
—
¥0,923
—
¥0000—.
—
¥00,994
—
—
—
—
71
—
—
—
—
—
923
—
—
—
—
—
994
—
—
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan.
Overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. The amounts shown in the above table exclude internal transactions between domestic operations and overseas operations.
164
Formerly The Sumitomo Bank, Limited and Subsidiaries
Fees and Commissions
Years ended March 31
2001
2000
2001
2000
2001
2000
2001
2000
Domestic operations
Overseas operations
Elimination
Total
Millions of yen
Fees and commissions (income)
Deposits and loans
Remittances and transfers
Securities-related business
Agency
Safe deposits
Guarantees
Credit card
Fees and commissions (expenses)
Remittances and transfers
¥176,645 ¥165,029 ¥26,275 ¥19,744
10,497
3,980
660
148
6
1,147
—
15,562
4,583
3
914
0
1,526
—
8,588
46,508
6,287
8,134
2,770
10,870
66,110
9,515
43,182
6,624
8,202
2,813
12,514
62,499
¥0(84) ¥(2,136) ¥202,836 ¥182,637
20,013
47,162
6,639
8,351
2,820
12,175
62,499
24,150
51,091
6,291
9,049
2,771
12,313
66,110
—
—
(645)
—
—
(1,487)
—
—
(0)
—
—
—
(84)
—
¥029,802 ¥030,170 ¥04,246 ¥08,430
1,843
10,385
10,190
1,487
¥(130) ¥(1,825) ¥033,918 ¥036,775
12,033
11,873
(0)
—
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan.
Overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. Internal transactions between domestic operations and overseas operations are shown in the elimination column.
Trading Income
Years ended March 31
Trading profits
Gains on trading securities
Gains on securities related to
trading transactions
Gains on trading-related
financial derivatives
Other
Trading losses
Losses on trading securities
Losses on securities related to
trading transactions
Losses on trading-related
financial derivatives
Other
Domestic operations
Overseas operations
Elimination
Total
2001
2000
2001
2000
2001
2000
2001
2000
Millions of yen
¥43,914
2,831
¥28,625 ¥45,207 ¥45,772 ¥(4,744) ¥(4,638)
—
33,683
7,526
2,776
—
¥84,376
10,358
¥69,760
36,460
599
—
7
—
—
—
606
—
37,508
2,974
24,451
1,398
37,672
—
10,250
1,837
(4,744)
—
(4,638)
—
70,436
2,974
30,063
3,235
¥04,745
0
¥00,937 ¥02,146 ¥26,553 ¥(4,744) ¥(4,638)
—
6,839
190
—
—
¥02,146
190
¥22,853
6,839
—
937
—
6
—
—
—
944
4,744
—
—
—
1,166
789
19,228
479
(4,744)
—
(4,638)
—
1,166
789
14,590
479
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan.
Overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. Internal transactions between domestic operations and overseas operations are shown in the elimination column.
165
DEPOSITS
Formerly The Sakura Bank, Limited and Subsidiaries
Deposits and Negotiable Certificates of Deposit
Year-End Balance
March 31
Liquid deposits
Fixed-term deposits
Other
Subtotal
Negotiable certificates of deposit
Billions of yen
Domestic operations
Overseas operations
Total
2001
2000
2001
2000
2001
2000
¥13,500.8
13,757.5
1,752.1
¥29,010.5
¥04,574.6
¥13,026.3
12,959.2
1,710.4
¥27,696.1
¥03,479.3
¥2,777.2
215.0
1.1
¥2,993.4
¥0,046.3
¥2,342.6
178.5
8.6
¥2,529.8
¥0,033.2
¥16,278.0
13,972.6
1,753.3
¥32,003.9
¥04,621.0
¥15,369.0
13,137.7
1,719.1
¥30,225.9
¥03,512.6
Total
¥33,585.1
¥31,175.4
¥3,039.8
¥2,563.1
¥36,625.0
¥33,738.6
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan,
overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
3. Fixed-term deposits = Time deposits + Installment savings
LOANS
Loan Portfolio, Classified by Industry
March 31
Domestic operations
Manufacturing
Agriculture, forestry, fisheries and mining
Construction
Wholesale and retail
Finance and insurance
Real estate
Transportation, communications and other public enterprises
Services
Municipalities
Other
Subtotal
Overseas operations
Public sector
Financial institutions
Commerce and industry
Other
Subtotal
Total
Billions of yen
Percent
2001
2000
2001
2000
¥04,208.5
143.3
1,656.7
4,549.2
2,080.3
4,822.1
1,663.5
3,009.5
274.5
7,703.2
¥04,003.6
211.9
1,632.2
4,457.0
2,111.0
4,256.3
1,660.7
3,214.6
332.4
7,554.4
13.98% 13.60%
0.48
5.50
15.11
6.91
16.01
5.52
10.00
0.91
25.58
0.72
5.55
15.14
7.17
14.46
5.64
10.92
1.13
25.67
¥30,111.1
¥29,434.5
100.00% 100.00%
¥0,0063.9
146.6
2,478.6
106.2
¥00,051.4
144.1
2,595.1
107.9
2.29%
5.25
88.66
3.80
1.78%
4.97
89.53
3.72
¥02,795.5
¥02,898.6
100.00% 100.00%
¥32,906.7
¥32,333.2
Note: Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan, overseas
operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located overseas.
166
DEPOSITS
Formerly The Sumitomo Bank, Limited and Subsidiaries
Deposits and Negotiable Certificates of Deposit
Year-End Balance
March 31
Liquid deposits
Fixed-term deposits
Other
Subtotal
Negotiable certificates of deposit
Billions of yen
Domestic operations
Overseas operations
Total
2001
2000
2001
2000
2001
2000
¥10,729.9
11,929.5
2,108.1
¥24,767.5
¥06,900.8
¥10,138.9
12,288.0
1,818.1
¥24,245.1
¥06,764.8
¥5,893.0
360.7
23.6
¥6,277.4
¥0,125.0
¥3,730.6
378.6
7.5
¥4,116.9
¥0,104.3
¥16,622.9
12,290.3
2,131.8
¥31,045.0
¥07,025.9
¥13,869.6
12,666.7
1,825.6
¥28,362.0
¥06,869.2
Total
¥31,668.4
¥31,010.0
¥6,402.5
¥4,221.3
¥38,071.0
¥35,231.3
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan,
overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
3. Fixed-term deposits = Time deposits
LOANS
Loan Portfolio, Classified by Industry
March 31
Domestic operations
Manufacturing
Agriculture, forestry, fisheries and mining
Construction
Wholesale and retail
Finance and insurance
Real estate
Transportation, communications and other public enterprises
Services
Municipalities
Other
Billions of yen
Percent
2001
2000
2001
2000
¥03,633.5
68.3
1,622.8
3,649.1
2,160.4
5,019.3
1,420.4
4,418.0
81.8
6,925.9
¥03,596.7
70.5
1,722.3
3,671.7
2,116.7
4,910.5
1,231.9
4,883.4
104.2
7,056.2
12.53% 12.25%
0.24
5.60
12.58
7.45
17.31
4.90
15.23
0.28
23.88
0.24
5.87
12.50
7.21
16.72
4.20
16.63
0.35
24.03
Subtotal
¥28,999.9
¥29,364.5
100.00% 100.00%
Overseas operations
Public sector
Financial institutions
Commerce and industry
Other
Subtotal
Total
¥00,203.4
158.7
3,260.4
7.7
¥00,159.6
213.8
3,191.6
11.1
5.61%
4.37
89.81
0.21
4.46%
5.98
89.25
0.31
¥03,630.3
¥03,576.2
100.00% 100.00%
¥32,630.3
¥32,940.8
Note: Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan, overseas
operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located overseas.
167
Formerly The Sakura Bank, Limited and Subsidiaries
Risk-Monitored Loans
March 31
Bankrupt loans
Non-accrual loans
Past due loans (3 months or more)
Restructured loans
Total
SECURITIES
Year-End Balance
March 31
Domestic operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Securities lent
Subtotal
Overseas operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Securities lent
Subtotal
Total
Billions of yen
2001
2000
¥0,197.4
1,042.0
75.9
151.4
¥0,176.3
1,274.6
39.7
170.7
¥1,466.6
¥1,661.4
Billions of yen
2001
2000
¥04,903.1
20.7
588.8
3,899.2
838.7
—
¥10,250.8
¥0,0000—
—
—
—
215.7
—
¥0,0215.7
¥10,466.5
¥1,870.9
137.6
448.2
3,515.8
730.7
17.9
¥6,721.3
¥0000—
—
—
—
207.4
—
¥0,207.4
¥6,928.7
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan.
Overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. Foreign bonds and foreign stocks are included in other.
3. Securities lent in 2001 are included in each type of securities by the classification above.
4. The amounts shown in the above table exclude internal transactions between domestic operations and overseas operations.
168
Formerly The Sumitomo Bank, Limited and Subsidiaries
Risk-Monitored Loans
March 31
Bankrupt loans
Non-accrual loans
Past due loans (3 months or more)
Restructured loans
Total
SECURITIES
Year-End Balance
March 31
Domestic operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Subtotal
Overseas operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Subtotal
Total
Billions of yen
2001
2000
¥0,075.7
1,535.6
49.9
128.6
¥0,087.2
1,661.9
79.2
374.8
¥1,789.8
¥2,203.3
Billions of yen
2001
2000
¥10,616.2
322.1
666.2
3,042.3
1,122.5
¥15,769.6
¥00,075.0
—
—
—
1,001.3
¥01,076.3
¥16,845.9
¥3,488.5
358.9
713.5
3,392.5
393.8
¥8,347.4
¥0000—
—
0.4
4.0
616.8
¥0,621.3
¥8,968.8
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan.
Overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. Foreign bonds and foreign stocks are included in other.
3. Due to the change of accounting method for certain transactions under resale and repurchase agreements, the amounts of Japanese
government bonds for domestic operations increased by ¥1,610.6 billion.
169
TRADING ASSETS AND LIABILITIES
Formerly The Sakura Bank, Limited and Subsidiaries
Year-End Balance
March 31
Trading assets:
Trading securities
Derivatives of trading securities
Securities related to trading transactions
Trading-related financial derivatives
Other trading assets
Millions of yen
Domestic operations
Overseas operations
Total
2001
2000
2001
2000
2001
2000
¥515,510 ¥1,300,937 ¥62,067 ¥124,091
30,491
—
40,793
52,805
—
11,502
—
—
83,770
420,238
435,906
273
—
59,419
805,338
29,858
—
5,403
24,603
2,201
¥577,578 ¥1,425,028
466,397
273
40,793
112,225
805,338
41,360
—
5,403
108,374
422,439
Trading liabilities:
¥128,601 ¥0,236,276 ¥72,805 ¥124,430
¥201,407 ¥0,360,706
Trading securities sold for
short sales
Derivatives of trading securities
Securities related to trading transactions sold for short sales
Derivatives of securities related
to trading transactions
Trading-related financial derivatives
114
—
—
142,910
256
—
3,800
—
3,756
3,625
—
—
3,914
—
3,756
146,536
256
—
—
128,486
3
93,105
—
—
65,249 120,804
—
193,736
3
213,909
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan.
Overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. The amounts shown in the above table exclude internal transactions between domestic operations and overseas operations.
170
TRADING ASSETS AND LIABILITIES
Formerly The Sumitomo Bank, Limited and Subsidiaries
Year-End Balance
March 31
Trading assets:
Trading securities
Derivatives of trading securities
Derivatives of securities related
to trading transactions
Trading-related financial derivatives
Other trading assets
Domestic operations
Overseas operations
Elimination
Total
2001
2000
2001
2000
2001
2000
2001
2000
Millions of yen
¥1,818,583 ¥1,344,608 ¥103,182 ¥430,919
92,317 259,135
—
155,111
19
42,387
18
—
¥(8,361) ¥(30,101) ¥1,913,404 ¥1,745,425
301,522
18
247,429
19
—
—
—
—
18
911,865
751,568
57
476,401
825,743
—
—
10,693 144,709
27,074
171
—
(8,361)
—
—
(30,101)
—
18
914,197
751,740
57
591,008
852,817
Trading liabilities:
¥0,972,437 ¥0,496,184 ¥104,531 ¥486,567
¥(8,361) ¥(30,101) ¥1,068,607 ¥0,952,649
Trading securities sold for
short sales
Derivatives of trading securities
Derivatives of securities related
to trading transactions
Trading-related financial derivatives
14,326
0
9
958,100
937
17
— 326,227
—
—
—
—
—
—
14,326
0
327,165
17
26
—
495,202 104,531 160,340
—
—
(8,361)
—
(30,101)
9
1,054,270
26
625,440
Notes: 1. Domestic operations refers to the operations of the Bank (except for overseas branches) and its consolidated subsidiaries within Japan.
Overseas operations refers to the operations of the overseas branches of the Bank and its consolidated subsidiaries with a head office located
overseas.
2. Internal transactions between domestic operations and overseas operations are shown in the elimination column.
171
Supplemental Data (Nonconsolidated)
INCOME ANALYSIS
Formerly The Sakura Bank, Limited
Gross Banking Profit, Classified by Domestic and International Operations
Interest expenses
79,035
220,375
339,438
509,596
Years ended March 31
Interest income
Net interest income
Fees and commissions (income)
Fees and commissions (expenses)
Net fees and commissions
Trading profits
Trading losses
Net trading income
Other operating income
Other operating expenses
Net other operating income
Gross banking profit
Gross banking profit rate (%)
Domestic operations
International operations
Total
2001
2000
2001
2000
2001
2000
Millions of yen
¥669,088
¥832,456
¥348,079
¥506,823
590,052
¥095,040
36,368
58,671
¥003,373
—
3,373
¥030,298
6,135
24,162
612,081
¥087,163
35,163
52,000
¥001,167
382
785
¥017,214
16,491
723
8,641
(2,772)
¥016,749
6,143
10,606
¥017,402
—
17,402
¥019,157
1,675
17,481
¥015,392
7,278
8,114
¥007,330
30
7,300
¥040,739
7,056
33,683
¥1,016,508
[660]
417,814
[660]
598,693
¥1,338,818
[461]
729,509
[461]
609,308
¥0,111,790
42,512
69,277
¥0,020,776
—
20,776
¥0,049,455
7,810
41,644
¥102,556
42,441
60,114
¥008,498
412
8,085
¥057,954
23,547
34,406
¥676,260
¥665,589
¥054,131
¥046,325
¥0,730,392
¥711,915
1.94%
1.90%
0.89%
0.86%
1.79%
1.77%
Notes: 1. Domestic operations include yen-denominated transactions by domestic branches, while international operations include foreign-currency-
denominated transactions by domestic branches and operations by overseas branches. Yen-denominated nonresident transactions and Japan
offshore banking accounts are included in international operations.
2. Interest expenses are shown after deduction of an amount equivalent to interest expenses on money held in trust (2001, ¥130 million; 2000,
¥1,631 million).
3. Figures in brackets indicate interest payments between domestic and international operations.
4. Gross banking profit rate = Gross banking profit/average balance of interest-earning assets x 100
The Average Balance of Interest-Earning Assets and Interest-Bearing Liabilities, Interest and Yields
Domestic Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans
Bills bought
Deposits with banks
Interest-bearing liabilities
Deposits
Negotiable certificates of deposit
Call money
Bills sold
Commercial paper
Borrowed money
Bonds
Average balance
Interest
Earnings yield
2001
2000
2001
2000
2001
2000
Millions of yen
¥34,841,034 ¥34,852,646
28,855,023
5,882,989
76,285
28,454
8,868
27,921,156
6,684,363
22,116
18,628
8,349
¥33,977,837 ¥33,884,278
[183,908]
27,660,195
2,690,916
2,106,478
136,361
267,443
809,422
141,284
[261,686]
25,326,957
3,478,211
2,758,205
309,568
441,024
679,491
419,589
¥669,088
577,839
84,922
62
65
29
¥179,035
[660]
39,837
10,501
6,154
579
2,976
19,530
6,114
¥832,456
592,848
71,373
58
7
32
¥220,375
[461]
49,438
4,169
3,240
64
1,094
22,920
1,987
1.92% 2.38%
2.07
1.27
0.28
0.35
0.35
2.05
1.21
0.07
0.02
0.36
0.23% 0.65%
0.15
0.30
0.22
0.18
0.67
2.87
1.45
0.17
0.15
0.15
0.04
0.40
2.83
1.40
Notes: 1. Interest-earning assets are shown after deduction of the average balance of non-interest earning deposits with banks (2001, ¥329,881 million;
2000, ¥371,348 million). Interest-bearing liabilities are shown after deduction of an amount equivalent to the average balance of money held in
trust (2001, ¥50,636 million; 2000, ¥125,958 million) and interest (2001, ¥121 million; 2000, ¥821 million).
2. Figures in brackets indicate the amounts resulting from lending and borrowing activities between domestic and international operations.
172
INCOME ANALYSIS
Formerly The Sumitomo Bank, Limited
Gross Banking Profits, Classified by Domestic and International Operations
Years ended March 31
Interest income
Interest expenses
Net interest income
Fees and commissions (income)
Fees and commissions (expenses)
Net fees and commissions
Trading profits
Trading losses
Net trading income
Other operating income
Other operating expenses
Net other operating income
Gross banking profit
Gross banking profit rate (%)
Millions of yen
Domestic operations
International operations
Total
2001
2000
2001
2000
2001
2000
¥632,210
¥757,299
¥630,186
¥659,318
113,065
242,028
507,292
569,889
519,145
¥084,001
29,677
54,324
¥005,806
—
5,806
¥012,141
8,461
3,679
¥582,955
515,271
¥075,810
27,700
48,109
¥004,174
—
4,174
¥024,948
27,330
(2,381)
¥565,173
122,893
¥035,989
8,898
27,091
¥068,802
—
68,802
¥011,890
40,821
(28,931)
¥189,856
89,429
¥030,755
9,605
21,149
¥030,052
944
29,108
¥036,124
18,420
17,703
¥157,391
¥1,259,171
[3,225]
617,132
[3,225]
642,038
¥0,119,990
38,575
81,415
¥0,074,609
—
74,609
¥0,024,021
49,272
(25,251)
¥0,772,811
¥1,416,579
[38]
811,878
[38]
604,700
¥106,565
37,306
69,259
¥034,227
944
33,282
¥061,072
45,750
15,321
¥722,565
1.50%
1.59%
1.82%
1.80%
1.58%
1.63%
Notes: 1. Domestic operations include yen-denominated transactions by domestic branches, while international operations include foreign-currency-
denominated transactions by domestic branches and operations by overseas branches. Yen-denominated nonresident transactions and Japan
offshore banking accounts are included in international operations.
2. Interest expenses are shown after deduction of an amount equivalent to interest expenses on money held in trust (2001, ¥565 million; 2000,
¥1,222 million).
3. Figures in brackets indicate interest payments between domestic and international operations. In addition, the figures for 2001 in brackets
include effect of an application of a new accounting standard on financial instruments, effective April 1, 2000, which requires that income and
expenses on derivatives for hedge be presented by net method instead of gross method.
4. Gross banking profit rate = Gross banking profit/average balance of interest-earning assets x 100
The Average Balance of Interest-Earning Assets and Interest-Bearing Liabilities, Interest and Yields
Domestic Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans
Receivables under resale agreements
Bills bought
Deposits with banks
Interest-bearing liabilities
Deposits
Negotiable certificates of deposit
Call money
Payables under repurchase agreements
Bills sold
Commercial paper
Borrowed money
Bonds
Average balance
2001
2000
¥38,740,834 ¥35,397,481
27,384,887
10,804,411
3,435
277,192
263,432
3,373
28,019,739
7,199,331
391
—
170,746
3,311
¥36,168,247 ¥32,504,927
[15,641]
21,958,363
5,651,266
3,297,640
—
200,921
267,406
820,000
242,329
[329,404]
21,768,745
5,335,742
3,335,588
2,579,529
642,732
353,806
1,015,688
728,269
Millions of yen
Interest
Earnings yield
2001
¥632,210
[2,326]
525,950
100,759
30
1,130
813
1
¥113,065
[899]
40,310
15,300
6,513
5,368
1,462
1,567
20,427
14,769
2000
¥757,299
2001
1.63% 2.13%
2000
1.92
537,952
0.93
89,385
37
0.88
— 0.40
0.30
82
0.04
2
1.91
1.24
9.55
.—
0.04
0.09
0.31% 0.74%
¥242,028
[38]
44,183
8,782
3,595
0.18
0.28
0.19
— 0.20
0.22
0.44
2.01
2.02
118
515
24,275
5,038
0.20
0.15
0.10
.—
0.05
0.19
2.96
2.07
Notes: 1. Money held in trust is not included in interest-earning assets, and accordingly the amounts of interest-bearing liabilities are shown after deduction
of amounts equivalent to the average balance of money held in trust (2001, ¥79,410 million; 2000, ¥100,294 million) and corresponding
interest (2001, ¥248 million; 2000, ¥746 million).
2. Figures in brackets indicate the amounts resulting from lending and borrowing activities between domestic and international operations. In addi-
tion, the figures for 2001 in brackets include effect of an application of a new accounting standard on financial instruments, effective April 1,
2000, which requires that income and expenses on derivatives for hedge be presented by net method instead of gross method.
3. Bond interest includes amortization of discounts of bonds.
173
Formerly The Sakura Bank, Limited
International Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans
Bills bought
Deposits with banks
Interest-bearing liabilities
Deposits
Negotiable certificates of deposit
Call money
Bills sold
Commercial paper
Borrowed money
Bonds
Average balance
Interest
Earnings yield
2001
2000
2001
2000
2001
2000
Millions of yen
¥6,028,024
[261,686]
3,119,422
767,292
75,217
—
1,492,222
¥5,360,655
[183,908]
3,443,140
855,816
49,376
—
502,282
¥5,681,458
4,076,775
47,442
129,120
—
—
1,239,812
—
¥4,722,198
3,389,244
49,663
101,411
—
—
1,166,971
—
¥348,079
[660]
150,813
45,080
4,788
—
96,976
¥339,438
186,430
2,511
6,668
—
—
55,230
—
¥506,823
[461]
133,934
40,280
2,505
—
24,956
¥509,596
110,144
2,838
4,701
—
—
47,676
—
5.77% 9.45%
4.83
5.87
6.36
.—
6.49
3.88
4.70
5.07
.—
4.96
5.97% 10.79%
4.57
5.29
5.16
.—
.—
4.45
.—
3.24
5.71
4.63
.—
.—
4.08
.—
Notes: 1. Interest-earning assets are shown after deduction of the average balance of non-interest earning deposits with banks (2001, ¥8,790 million;
2000, ¥13,242 million), interest-bearing liabilities are shown after deduction of an amount equivalent to the average balance of money held in
trust (2001, ¥139 million; 2000, ¥7,500 million) and interest (2001, ¥8 million; 2000, ¥809 million).
2. Figures in brackets indicate the amounts resulting from lending and borrowing activities between domestic and international operations.
3. The average balance of foreign currency denominated transactions by domestic branches in international operations is calculated by the monthly
current method (under which the TT middle rate at the end of the previous month is applied to non-exchange transactions of the month
concerned).
Total of Domestic and International Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans
Bills bought
Deposits with banks
Interest-bearing liabilities
Deposits
Negotiable certificates of deposit
Call money
Bills sold
Commercial paper
Borrowed money
Bonds
Average balance
Interest
Earnings yield
2001
2000
2001
2000
2001
2000
Millions of yen
¥40,607,371 ¥40,029,393
32,298,163
6,738,805
125,662
28,454
511,151
31,040,579
7,451,656
97,333
18,628
1,500,572
¥1,016,508 ¥1,338,818
726,783
111,654
2,563
7
24,988
728,652
130,003
4,851
65
97,005
¥39,397,609 ¥38,422,568
31,049,440
2,740,580
2,207,889
136,361
267,443
1,976,394
141,284
29,403,732
3,525,653
2,887,325
309,568
411,024
1,919,304
419,589
¥1,417,814 ¥0,729,509
159,583
7,008
7,941
64
1,094
70,596
1,987
226,267
13,012
12,823
579
2,976
74,761
6,114
2.50% 3.34%
2.35
1.74
4.98
0.35
6.46
2.25
1.65
2.03
0.02
4.88
1.06% 1.89%
0.76
0.36
0.44
0.18
0.67
3.89
1.45
0.51
0.25
0.35
0.04
0.40
3.57
1.40
Notes: 1. Interest-earning assets are shown after deduction of the average balance of non-interest earning deposits with banks (2001, ¥338,672 million;
2000, ¥384,590 million). Interest-bearing liabilities are shown after deduction of an amount equivalent to the average balance of money held in
trust (2001, ¥50,775 million; 2000, ¥133,459 million) and interest (2001, ¥130 million; 2000, ¥1,631 million).
2. The amounts resulting from lending and borrowing activities between domestic and international operations are offset.
174
Average balance
Interest
Earnings yield
2001
2000
2001
2000
2001
2000
Millions of yen
Formerly The Sumitomo Bank, Limited
International Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans
Receivables under resale agreements
Bills bought
Deposits with banks
¥10,405,393
[329,404]
4,398,567
1,379,176
92,473
38,209
—
3,485,713
¥8,713,177
[15,641]
4,965,293
1,167,250
100,758
—
—
1,915,905
Interest-bearing liabilities
¥39,772,930
¥8,687,325
Deposits
Negotiable certificates of deposit
Call money
Payables under repurchase agreements
Bills sold
Commercial paper
Borrowed money
Bonds
7,875,662
129,420
162,395
42,859
2,276
—
1,409,212
—
6,536,656
173,795
106,601
—
910
—
1,712,602
—
¥1,630,186
[899]
246,542
117,414
5,347
484
—
216,811
¥1,507,292
[2,326]
334,960
7,631
7,392
2,144
53
—
81,064
—
6.05% 7.56%
¥659,318
[38]
223,218
53,359
4,995
5.60
8.51
5.78
— 1.26
.—
—
6.21
84,452
4.49
4.57
4.95
.—
.—
4.40
¥569,889
5.19% 6.56%
220,241
8,952
4,779
4.25
5.89
4.55
— 5.00
2.34
27
.—
—
5.75
76,988
.—
—
3.36
5.15
4.48
.—
2.99
.—
4.49
.—
Notes: 1. Money held in trust is not included in interest-earning assets, and accordingly the amounts of interest-bearing liabilities are shown after deduction
of amounts equivalent to the average balance of money held in trust (2001, ¥6,109 million; 2000, ¥7,255 million) and corresponding interest
(2001, ¥317 million; 2000, ¥475 million).
2. Figures in brackets indicate the amounts resulting from lending and borrowing activities between domestic and international operations. In addi-
tion, the figures for 2001 in brackets include effect of an application of a new accounting standard on financial instruments, effective April 1,
2000, which requires that income and expenses on derivatives for hedge be presented by net method instead of gross method.
3. The average balance of foreign currency denominated transactions by domestic branches in international operations is calculated by the monthly
current method (under which the TT middle rate at the end of the previous month is applied to non-exchange transactions of the month
concerned).
Total of Domestic and International Operations
Years ended March 31
Interest-earning assets
Loans and bills discounted
Securities
Call loans
Receivables under resale agreements
Bills bought
Deposits with banks
Interest-bearing liabilities
Deposits
Negotiable certificates of deposit
Call money
Payables under repurchase agreements
Bills sold
Commercial paper
Borrowed money
Bonds
Average balance
Interest
Earnings yield
2001
2000
2001
2000
2001
2000
Millions of yen
¥48,816,823 ¥44,095,017
32,985,032
8,366,581
101,150
—
170,746
1,919,216
31,783,455
12,183,588
95,909
315,402
263,432
3,489,086
¥45,611,774 ¥41,176,612
28,495,019
5,825,062
3,404,242
—
201,832
267,406
2,532,603
242,329
29,644,408
5,465,162
3,497,983
2,622,388
645,008
353,806
2,424,901
728,269
¥1,259,171 ¥1,416,579
761,170
142,745
5,032
2.57% 3.21%
2.43
1.79
5.60
— 0.51
0.30
82
6.21
84,455
2.30
1.70
4.97
.—
0.04
4.40
¥1,617,132 ¥0,811,878
264,425
17,735
8,375
1.35% 1.97%
1.26
0.41
0.39
— 0.28
0.23
0.44
4.18
2.02
0.92
0.30
0.24
.—
0.07
0.19
3.99
2.07
145
515
101,263
5,038
772,492
218,173
5,378
1,614
813
216,812
375,271
22,932
13,906
7,512
1,516
1,567
101,491
14,769
Notes: 1. Money held in trust is not included in interest-earning assets, and accordingly the amounts of interest-bearing liabilities are shown after deduction
of amounts equivalent to the average balance of money held in trust (2001, ¥85,519 million; 2000, ¥107,550 million) and corresponding
interest (2001, ¥565 million; 2000, ¥1,222 million).
2. The amounts resulting from lending and borrowing activities between domestic and international operations are offset.
3. Bond interest includes amortization of discounts of bonds.
175
Formerly The Sakura Bank, Limited
Breakdown of Interest Income and Interest Expenses
Domestic Operations
Years ended March 31
Interest income
Loans and bills discounted
Securities
Call loans
Bills bought
Deposits with banks
Effect of a change in accounting standard
Interest expenses
Deposits
Negotiable certificates of deposit
Call money
Bills sold
Commercial paper
Borrowed money
Bonds
Effect of a change in accounting standard
Volume-related
increase/decrease
Millions of yen
Rate-related
increase/decrease
Net
increase/decrease
2001
2000
2001
2000
2001
2000
¥00,(277)
(19,300)
10,063
(64)
(3)
(1)
—
¥(00,606
(3,963)
838
1,186
155
940
(3,729)
4,053
—
¥(24,498)
(18,735)
3,801
115
15
(133)
—
¥(00,246
6,731
874
(6,916)
(727)
(670)
(1,893)
642
—
¥(83,816)
4,291
3,485
68
61
(0)
—
¥(62,671)
(5,637)
5,492
1,727
359
941
340
73
—
¥(18,105
(12,531)
(17,995)
(330)
(16)
68
—
¥(99,126)
(55,668)
(14,410)
(12,081)
(1,152)
(994)
464
(479)
—
¥(163,368)
(15,009)
13,548
4
57
(2)
(79,274)
¥(141,339)
(9,601)
6,331
2,914
514
1,882
(3,389)
4,127
(79,274)
¥0(6,393)
(31,266)
(14,193)
(215)
(1)
(64)
—
¥(98,879)
(48,936)
(13,535)
(18,997)
(1,879)
(1,665)
(1,428)
162
—
Notes: 1. Volume/rate variance is prorated according to changes in volume and rate.
2. Effect of a change in accounting standard is due to an application of a new accounting standard on financial instruments, effective April 1, 2000,
which requires that income and expenses on derivatives for hedge be presented by net method instead of gross method.
3. Each figure for 2001 in the columns of volume-related increase/decrease as well as rate-related increase/decrease does not include effect of a
change in accounting standard.
International Operations
Years ended March 31
Interest income
Loans and bills discounted
Securities
Call loans
Bills bought
Deposits with banks
Effect of a change in accounting standard
Interest expenses
Deposits
Negotiable certificates of deposit
Call money
Bills sold
Commercial paper
Borrowed money
Bonds
Effect of a change in accounting standard
Volume-related
increase/decrease
Millions of yen
Rate-related
increase/decrease
Net
increase/decrease
2001
2000
2001
2000
2001
2000
¥(57,773
(13,445)
(4,470)
1,535
—
62,287
—
¥(90,535
25,368
(123)
1,387
—
—
3,085
—
—
¥(199,898)
(70,581)
(4,302)
(888)
—
(19,310)
—
¥(253,154)
(71,736)
(9,103)
(3,310)
—
—
7,690
—
—
¥(143,831)
30,324
9,270
748
—
9,732
—
¥000,638
(32,125)
(2,061)
(743)
—
(3,434)
—
¥(158,743) ¥(199,260)
(102,707)
(6,364)
(1,631)
—
(22,745)
—
16,878
4,799
2,283
—
72,019
(72,686)
¥(188,006) ¥(104,639
(33,774)
(2,266)
(2,164)
—
—
(3,766)
—
—
50,916
(203)
579
—
—
4,468
—
—
¥(170,157) ¥(148,514)
(105,510)
(11,369)
(5,475)
—
—
3,923
—
—
76,285
(326)
1,967
—
—
7,554
—
(72,686)
Notes: 1. Volume/rate variance is prorated according to changes in volume and rate.
2. Effect of a change in accounting standard is due to an application of a new accounting standard on financial instruments, effective April 1, 2000,
which requires that income and expenses on derivatives for hedge be presented by net method instead of gross method.
3. Each figure for 2001 in the columns of volume-related increase/decrease as well as rate-related increase/decrease does not include effect of a
change in accounting standard.
176
Formerly The Sumitomo Bank, Limited
Breakdown of Interest Income and Interest Expenses
Domestic Operations
Years ended March 31
Interest income
Loans and bills discounted
Securities
Call loans
Bills bought
Deposits with banks
Effect of a change in accounting standard
Interest expenses
Deposits
Negotiable certificates of deposit
Call money
Bills sold
Commercial paper
Borrowed money
Bonds
Effect of a change in accounting standard
Volume-related
increase/decrease
Millions of yen
Rate-related
increase/decrease
Net
increase/decrease
2001
2000
2001
2000
2001
2000
¥(67,889
(12,192)
37,318
54
66
0
—
¥(25,349
(378)
(516)
41
582
209
5,000
9,857
—
¥0(16,531
(16,751)
49,228
7
1,166
(19)
—
¥(013,938
6,487
(731)
(1,985)
(56)
889
(2,636)
2,466
—
¥(87,740) ¥(133,379)
(39,260)
(69,039)
20
(1,849)
(31)
—
190
(25,944)
(61)
664
(1)
—
¥(125,088) ¥(116,848)
(56,011)
(19,811)
27
(683)
(50)
—
(12,002)
11,373
(6)
730
(1)
(105,237)
¥(49,074) ¥(133,548)
(37,460)
(23,800)
(11,607)
(640)
(1,315)
342
751
—
(3,494)
7,033
2,876
761
842
(8,848)
(127)
—
¥(128,962) ¥(119,610)
(30,972)
(24,531)
(13,593)
(696)
(425)
(2,294)
3,218
—
(3,873)
6,517
2,917
1,344
1,051
(3,848)
9,730
(105,237)
Notes: 1. Volume/rate variance is prorated according to changes in volume and rate.
2. Effect of a change in accounting standard is due to an application of a new accounting standard on financial instruments, effective April 1, 2000,
which requires that income and expenses on derivatives for hedge be presented by net method instead of gross method.
3. Each figure for 2001 in the columns of volume-related increase/decrease as well as rate-related increase/decrease does not include effect of a
change in accounting standard.
International Operations
Years ended March 31
Interest income
Loans and bills discounted
Securities
Call loans
Bills bought
Deposits with banks
Effect of a change in accounting standard
Interest expenses
Deposits
Negotiable certificates of deposit
Call money
Bills sold
Commercial paper
Borrowed money
Bonds
Effect of a change in accounting standard
Volume-related
increase/decrease
Millions of yen
Rate-related
increase/decrease
Net
increase/decrease
2001
2000
2001
2000
2001
2000
¥142,202
(27,465)
11,140
(433)
—
88,138
—
¥077,781
50,304
(2,496)
2,538
33
—
(15,117)
—
—
¥(228,482)
(110,110)
(10,750)
(5,130)
—
14,361
—
¥(205,233)
(104,773)
(14,539)
(1,322)
16
—
13,730
—
—
¥187,857 ¥)115,272
(31,964)
(1,916)
(986)
—
(7,475)
—
50,790
52,913
785
—
44,219
—
¥0(29,132) ¥(113,209)
(142,074)
(12,667)
(6,116)
—
6,885
—
23,324
64,054
352
—
132,358
(359,193)
¥218,815 ¥(097,108
(45,632)
(3,626)
(735)
(2)
—
(7,238)
—
—
64,414
1,175
74
(6)
—
19,193
—
—
¥0(62,596) ¥(108,125)
(150,406)
(18,166)
(2,058)
14
—
6,492
—
—
114,719
(1,321)
2,613
26
—
4,075
—
(359,193)
Notes: 1. Volume/rate variance is prorated according to changes in volume and rate.
2. Effect of a change in accounting standard is due to an application of a new accounting standard on financial instruments, effective April 1, 2000,
which requires that income and expenses on derivatives for hedge be presented by net method instead of gross method.
3. Each figure for 2001 in the columns of volume-related increase/decrease as well as rate-related increase/decrease does not include effect of a
change in accounting standard.
177
Formerly The Sakura Bank, Limited
Total of Domestic and International Operations
Years ended March 31
Interest income
Loans and bills discounted
Securities
Call loans
Bills bought
Deposits with banks
Effect of a change in accounting standard
Interest expenses
Deposits
Negotiable certificates of deposit
Call money
Bills sold
Commercial paper
Borrowed money
Bonds
Effect of a change in accounting standard
Volume-related
increase/decrease
Millions of yen
Rate-related
increase/decrease
Net
increase/decrease
2001
2000
2001
2000
2001
2000
¥(19,078
(28,877)
12,227
(690)
(3)
61,736
—
¥(18,088
(8,863)
2,356
2,769
155
940
(2,083)
4,053
—
¥(102,138)
(62,042)
3,336
543
15
(21,824)
—
¥0(51,510)
(1,790)
(2,682)
(10,413)
(727)
(670)
4,178
642
—
¥(189,426) ¥(101,755)
(71,931)
(23,894)
(2,390)
(16)
(984)
—
30,747
6,120
2,978
61
10,280
—
¥(177,821) ¥(194,123)
(152,656)
(22,222)
(14,058)
(1,152)
(994)
(1,683)
(479)
—
75,547
3,647
2,111
359
941
6,248
73
—
¥(322,310) ¥(203,893)
(133,974)
(20,558)
(1,846)
(1)
(22,809)
—
1,869
18,348
2,287
57
72,017
(151,961)
¥(311,694) ¥(245,634)
(154,446)
(24,904)
(24,472)
(1,879)
(1,665)
2,495
162
—
66,684
6,004
4,881
514
1,882
4,164
4,127
(151,961)
Notes: 1. Volume/rate variance is prorated according to changes in volume and rate.
2. Effect of a change in accounting standard is due to an application of a new accounting standard on financial instruments, effective April 1, 2000,
which requires that income and expenses on derivatives for hedge be presented by net method instead of gross method.
3. Each figure for 2001 in the columns of volume-related increase/decrease as well as rate-related increase/decrease does not include effect of a
change in accounting standard.
Fees and Commissions
Years ended March 31
Fees and commissions (income)
Deposits and loans
Remittances and transfers
Securities-related business
Agency
Safe deposits
Guarantees
Fees and commissions (expenses)
Remittances and transfers
Trading Income
Years ended March 31
Trading profits
Gains on trading securities
Gains on securities related to trading transactions
Gains on trading-related financial derivatives
Other
Trading losses
Losses on trading securities
Losses on securities related to trading transactions
Losses on trading-related financial derivatives
Other
Note: Gains and losses are netted against each other.
178
Millions of yen
Domestic operations
International operations
Total
2001
2000
2001
2000
2001
2000
¥95,040
10,229
41,423
8,733
2,992
2,871
1,188
¥36,368
7,367
¥87,163
8,968
41,197
9,146
3,171
2,949
976
¥35,163
7,166
¥16,749
3,521
9,282
8
76
0
1,758
¥06,143
3,503
¥15,392
2,489
9,159
5
73
0
3,468
¥111,790 ¥102,556
11,457
50,356
9,151
3,245
2,949
4,445
13,750
50,705
8,741
3,068
2,871
2,947
¥07,278
2,952
¥042,512 ¥042,441
10,118
10,871
Millions of yen
Domestic operations
International operations
Total
2001
2000
2001
2000
2001
2000
¥3,373
2,436
—
—
937
¥,0,0—.
—
—
—
—
¥1,167
—
—
—
1,167
¥0,382
341
40
—
—
¥17,402
0
—
17,402
—
¥0,,00—.
—
—
—
—
¥7,330
—
—
7,330
—
¥0,030
—
30
—
—
¥20,776
2,436
—
17,402
937
¥00,,0—.
—
—
—
—
¥8,498
—
—
7,330
1,167
¥0,412
341
71
—
—
Formerly The Sumitomo Bank, Limited
Total of Domestic and International Operations
Years ended March 31
Interest income
Loans and bills discounted
Securities
Call loans
Bills bought
Deposits with banks
Effect of a change in accounting standard
Interest expenses
Deposits
Negotiable certificates of deposit
Call money
Bills sold
Commercial paper
Borrowed money
Bonds
Effect of a change in accounting standard
Volume-related
increase/decrease
Millions of yen
Rate-related
increase/decrease
Net
increase/decrease
2001
2000
2001
2000
2001
2000
¥159,556
(28,327)
68,035
(270)
66
88,014
—
¥093,625
11,053
(1,153)
236
674
209
(4,402)
9,857
—
¥0(67,584)
(80,902)
39,017
(5,136)
1,166
14,244
—
¥0(39,967)
(19,531)
(3,672)
(2,841)
(54)
889
10,264
2,466
—
¥149,792
39,649
7,393
615
664
44,342
—
¥178,386
99,792
6,350
5,294
696
842
4,630
(127)
—
¥(161,746)
(117,183)
(71,495)
(953)
(1,849)
(7,409)
—
¥(190,040)
(161,847)
(39,025)
(12,810)
(628)
(1,315)
(6,066)
751
—
¥(157,408) ¥(229,330)
(198,086)
(32,478)
(6,089)
(683)
6,835
—
11,321
75,428
345
730
132,357
(466,757)
¥(194,746) ¥(227,007)
(181,378)
(42,698)
(15,651)
(682)
(425)
4,197
3,218
—
110,846
5,196
5,531
1,370
1,051
227
9,730
(466,757)
Notes: 1. Volume/rate variance is prorated according to changes in volume and rate.
2. Effect of a change in accounting standard is due to an application of a new accounting standard on financial instruments, effective April 1, 2000,
which requires that income and expenses on derivatives for hedge be presented by net method instead of gross method.
3. Each figure for 2001 in the columns of volume-related increase/decrease as well as rate-related increase/decrease does not include effect of a
change in accounting standard.
Fees and Commissions
Years ended March 31
Fees and commissions (income)
Deposits and loans
Remittances and transfers
Securities-related business
Agency
Safe deposits
Guarantees
Fees and commissions (expenses)
Remittances and transfers
Trading Income
Years ended March 31
Trading profits
Gains on trading securities
Gains on securities related to trading transactions
Gains on trading-related financial derivatives
Other
Trading losses
Losses on trading securities
Losses on securities related to trading transactions
Losses on trading-related financial derivatives
Other
Note: Gains and losses are netted against each other.
Millions of yen
Domestic operations
International operations
Total
2001
2000
2001
2000
2001
2000
¥84,001
4,376
38,781
5,799
6,775
2,729
1,045
¥29,677
8,149
¥75,810
4,380
35,337
6,162
6,782
2,774
806
¥27,700
7,651
¥35,989
19,145
12,152
39
949
—
2,598
¥08,898
3,523
¥30,755
15,014
11,480
153
1,200
—
2,276
¥119,990 ¥106,565
19,394
46,818
6,315
7,982
2,774
3,082
23,522
50,934
5,839
7,724
2,729
3,643
¥09,605
4,176
¥038,575 ¥037,306
11,827
11,672
Millions of yen
Domestic operations
International operations
Total
2001
2000
2001
2000
2001
2000
¥5,806
2,831
—
—
2,974
¥0,0—.
—
—
—
—
¥4,174
2,776
—
—
1,398
¥0,0—.
—
—
—
—
¥68,802.
—
606
68,196
—
¥0000—.
—
—
—
—
¥30,052
—
—
30,052
—
¥0,0944
—
944
—
—
¥74,609
2,831
606
68,196
2,974
¥00,0—.
—
—
—
—
¥34,227
2,776
—
30,052
1,398
¥00,944
—
944
—
—
179
Formerly The Sakura Bank, Limited
Net Other Operating Income
Years ended March 31
Gains and losses on bonds
Gains and losses on foreign exchange transactions
Total
Millions of yen
Domestic operations
International operations
Total
2001
¥04,145
/
¥24,162
2000
¥677
/
¥039
2001
2000
2001
2000
¥03,800
15,393
¥01,817
31,963
¥07,945
15,393
¥02,495
31,963
¥17,481
¥33,683
¥41,644
¥33,722
General and Administrative Expenses
Years ended March 31
2001
2000
1999
1998
1997
Millions of yen
Salaries and related expenses
Retirement pay
Transfer to reserve for retirement allowance
Retirement benefit cost
Welfare expenses
Depreciation
Rent and lease expenses
Building and maintenance expenses
Supplies expenses
Water, lighting and heating expenses
Traveling expenses
Communication expenses
Publicity and advertising expenses
Taxes, other than income taxes
Other
¥128,175
—
—
17,269
18,908
24,651
55,694
1,795
4,699
4,245
1,556
4,981
3,138
18,334
97,070
¥135,833
26,944
3,813
—
32,415
28,562
62,089
1,268
5,333
4,392
1,659
5,055
4,074
19,899
99,073
¥149,571
16,510
4,190
—
33,978
31,163
59,531
1,548
6,347
4,655
1,930
5,256
5,498
23,827
102,462
¥166,392
16,785
5,142
—
34,880
31,176
38,528
2,922
6,513
4,773
2,195
5,446
4,572
34,824
102,619
¥174,845
18,345
5,976
—
36,143
33,386
38,457
2,166
6,630
4,908
2,207
5,046
4,328
29,117
100,771
Total
¥380,520
¥430,417
¥446,473
¥456,774
¥462,330
180
Formerly The Sumitomo Bank, Limited
Net Other Operating Income
Domestic operations
International operations
Total
Millions of yen
Years ended March 31
2001
2000
2001
2000
2001
2000
Gains and losses on bonds
Gains and losses on foreign exchange transactions
¥4,223
/
¥(2,889)
/
¥0(3,373)
(25,651)
¥,(1,060)
18,919
¥)00,849
(25,651)
¥,(3,950)
18,919
Total
¥3,679
¥(2,381)
¥(28,931)
¥17,703
¥(25,251)
¥15,321
General and Administrative Expenses
Years ended March 31
2001
2000
1999
1998
1997
Millions of yen
Salaries and related expenses
Retirement pay
Transfer to reserve for retirement allowance
Retirement benefit cost
Welfare expenses
Depreciation
Rent and lease expenses
Building and maintenance expenses
Supplies expenses
Water, lighting and heating expenses
Traveling expenses
Communication expenses
Publicity and advertising expenses
Taxes, other than income taxes
Other
¥113,829
/
/
13,873
15,943
17,337
35,022
1,344
5,311
4,306
2,235
7,770
3,700
17,199
93,592
¥117,345
12,180
3,373
/
30,350
15,873
39,099
1,099
5,441
4,554
1,962
6,767
2,300
17,647
92,796
¥127,237
6,424
3,449
/
32,392
16,759
40,556
1,484
5,857
4,927
2,341
7,261
3,590
20,545
93,541
¥138,294
6,853
3,534
/
30,967
22,598
41,310
1,755
6,142
5,597
2,967
7,354
5,110
21,909
93,225
¥139,007
4,906
3,289
/
27,901
29,993
39,288
1,896
5,936
5,536
2,826
7,002
4,800
19,747
86,134
Total
¥331,467
¥350,791
¥366,369
¥387,623
¥378,269
181
DEPOSITS
Formerly The Sakura Bank, Limited
Deposits and Negotiable Certificates of Deposit
Year-End Balance
March 31
Domestic operations
Liquid deposits
Fixed-term deposits
Other
Subtotal
Negotiable certificates of deposit
2001
2000
1999
1998
1997
Billions of yen
¥12,635.6
42.9%
11,670.5
39.7%
503.3
1.7%
¥24,809.5
84.3%
¥04,615.4
15.7%
¥13,047.4
43.7%
12,575.3
42.1%
734.5
2.5%
¥26,357.3
88.3%
¥03,505.6
11.7%
¥11,357.6
38.1%
14,910.8
50.1%
730.8
2.5%
¥26,999.2
90.7%
¥02,783.3
9.3%
¥10,952.3
37.5%
14,483.3
49.5%
674.2
2.3%
¥26,109.9
89.3%
¥03,128.2
10.7%
¥10,836.5
37.5%
13,732.3
47.6%
1,000.5
3.5%
¥25,569.3
88.6%
¥03,303.3
11.4%
Total
¥29,424.9
¥29,863.0
¥29,782.6
¥29,238.1
¥28,872.7
International operations
Liquid deposits
Fixed-term deposits
Other
Subtotal
Negotiable certificates of deposit
Total
Grand total
¥02,730.6
66.5%
182.6
4.4%
1,149.3
28.0%
¥04,062.7
98.9%
¥000,46.3
1.1%
¥02,310.9
66.4%
179.0
5.1%
956.3
27.5%
¥03,446.3
99.0%
¥00,033.2
1.0%
¥01,651.5
51.9%
176.0
5.5%
1,283.8
40.3%
¥03,111.4
97.8%
¥000,71.5
2.2%
¥04,817.7
67.5%
407.2
5.7%
1,490.7
20.9%
¥06,715.8
94.0%
¥00,426.8
6.0%
¥05,889.9
62.7%
844.0
9.0%
2,261.0
24.1%
¥08,995.0
95.7%
¥0,0402.7
4.3%
¥04,109.1
¥03,479.6
¥03,182.9
¥07,142.6
¥09,397.8
¥33,534.0
¥33,342.6
¥32,965.6
¥36,380.7
¥38,270.5
Notes: 1. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
2. Fixed-term deposits = Time deposits + Installment savings
3. Percentages indicate the composition ratio.
182
DEPOSITS
Formerly The Sumitomo Bank, Limited
Deposits and Negotiable Certificates of Deposit
Year-End Balance
March 31
Domestic operations
Liquid deposits
Fixed-term deposits
Other
Subtotal
Negotiable certificates of deposit
2001
2000
1999
1998
1997
Billions of yen
¥10,533.1
37.0%
10,847.5
38.1%
217.5
0.7%
¥21,598.2
75.8%
¥06,893.3
24.2%
¥09,975.4
35.5%
11,051.2
39.4%
317.3
1.1%
¥21,344.0
76.0%
¥06,728.3
24.0%
¥08,335.4
31.8%
11,996.8
45.8%
370.6
1.4%
¥20,702.9
79.0%
¥05,512.1
21.0%
¥07,527.9
30.7%
12,527.7
51.1%
420.5
1.7%
¥20,476.2
83.5%
¥04,048.0
16.5%
¥06,966.3
29.8%
12,246.2
52.4%
404.1
1.8%
¥19,616.7
84.0%
¥03,732.9
16.0%
Total
¥28,491.5
¥28,072.3
¥26,215.1
¥24,524.2
¥23,349.6
International operations
Liquid deposits
Fixed-term deposits
Other
Subtotal
Negotiable certificates of deposit
Total
Grand total
¥06,057.1
69.6%
611.7
7.0%
1,902.0
21.9%
¥08,570.8
98.5%
¥00,133.2
1.5%
¥03,738.4
60.7%
819.6
13.3%
1,486.0
24.2%
¥06,044.1
98.2%
¥00,113.3
1.8%
¥03,448.0
50.8%
419.2
6.2%
2,653.4
39.1%
¥06,520.7
96.1%
¥00,265.4
3.9%
¥07,330.8
57.0%
1,460.6
11.4%
3,255.8
25.2%
¥12,047.3
93.6%
¥00,818.4
6.4%
¥08,536.4
51.8%
2,571.2
15.6%
3,673.8
22.3%
¥14,781.5
89.7%
¥01,702.6
10.3%
¥08,704.1
¥06,157.4
¥06,786.1
¥12,865.7
¥16,484.1
¥37,195.6
¥34,229.8
¥33,001.3
¥37,390.0
¥39,833.8
Notes: 1. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
2. Fixed-term deposits = Time deposits
3. Percentages indicate the composition ratio.
183
Formerly The Sakura Bank, Limited
Average Balance
Years ended March 31
Domestic operations
Liquid deposits
Fixed-term deposits
Other
Subtotal
2001
2000
1999
1998
1997
Billions of yen
¥12,379.4
12,681.9
265.6
¥12,309.4
15,081.1
269.6
¥10,213.1
15,320.9
241.0
¥10,185.0
14,879.7
237.9
¥09,423.5
15,284.6
245.3
¥25,326.9
¥27,660.1
¥25,775.1
¥25,302.6
¥24,953.5
Negotiable certificates of deposit
¥03,478.2
¥02,690.9
¥02,814.7
¥03,680.5
¥02,885.5
Total
¥28,805.1
¥30,351.1
¥28,589.8
¥28,983.2
¥27,839.1
International operations
Liquid deposits
Fixed-term deposits
Other
Subtotal
¥02,767.7
204.2
1,104.7
¥02,149.8
221.0
1,018.3
¥03,325.3
447.8
1,680.0
¥06,089.6
469.7
2,314.3
¥06,443.2
655.0
2,530.9
¥04,076.7
¥03,389.2
¥05,453.3
¥08,873.7
¥09,629.2
Negotiable certificates of deposit
¥00,047.4
¥00,049.6
¥00,201.9
¥00,421.4
¥0,0356.2
Total
Grand total
¥04,124.2
¥03,438.9
¥05,655.2
¥09,295.2
¥09,985.5
¥32,929.3
¥33,790.0
¥34,245.1
¥38,278.4
¥37,824.6
Notes: 1. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
2. Fixed-term deposits = Time deposits + Installment savings
3. The average balance of foreign currency-denominated transactions by domestic branches in international operations is calculated by the monthly
current method.
Balance of Deposits, Classified by Depositor
March 31
Individual deposits
Corporate deposits
Total
Billions of yen
2001
2000
1999
1998
1997
¥14,796.7
57.4%
10,996.3
42.6%
¥15,071.2
55.6%
12,014.4
44.4%
¥15,352.7
56.1%
12,018.0
43.9%
¥15,317.4
57.4%
11,357.2
42.6%
¥15,056.6
56.9%
11,420.1
43.1%
¥25,793.1
¥27,085.7
¥27,370.7
¥26,674.7
¥26,476.7
Notes: 1. Figures are before adjustment on inter-office accounts in transit.
2. Negotiable certificates of deposit are not included.
3. Accounts at overseas branches and Japan offshore banking accounts are excluded.
4. Percentages indicate the composition ratio.
184
Formerly The Sumitomo Bank, Limited
Average Balance
Years ended March 31
Domestic operations
Liquid deposits
Fixed-term deposits
Other
Subtotal
2001
2000
1999
1998
1997
Billions of yen
¥10,298.3
11,282.2
188.0
¥10,011.5
11,772.2
174.6
¥07,418.9
12,755.3
179.9
¥06,583.0
12,309.7
217.1
¥05,863.4
12,572.1
235.8
¥21,768.7
¥21,958.3
¥20,354.2
¥19,109.8
¥18,671.5
Negotiable certificates of deposit
¥05,335.7
¥05,651.2
¥05,780.9
¥05,401.6
¥03,785.7
Total
¥27,104.4
¥27,609.6
¥26,135.1
¥24,511.5
¥22,457.2
International operations
Liquid deposits
Fixed-term deposits
Other
Subtotal
¥05,195.0
779.2
1,901.3
¥03,783.8
878.8
1,873.9
¥05,560.4
1,100.9
2,843.1
¥08,868.0
2,309.7
3,419.0
¥08,302.2
2,845.7
3,800.0
¥07,875.6
¥06,536.6
¥09,504.5
¥14,596.8
¥14,948.0
Negotiable certificates of deposit
¥00,129.4
¥00,173.7
¥00,446.2
¥01,502.8
¥01,504.1
Total
Grand total
¥08,005.0
¥06,710.4
¥09,950.8
¥16,099.6
¥16,452.1
¥35,109.5
¥34,320.0
¥36,086.0
¥40,611.1
¥38,909.4
Notes: 1. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
2. Fixed-term deposits = Time deposits
3. The average balance of foreign currency-denominated transactions by domestic branches in international operations is calculated by the monthly
current method.
Balance of Deposits, Classified by Depositor
March 31
Individual deposits
Corporate deposits
Total
Billions of yen
2001
2000
1999
1998
1997
¥13,512.7
58.8%
9,477.3
41.2%
¥13,124.9
57.6%
9,672.4
42.4%
¥12,639.4
56.0%
9,913.9
44.0%
¥12,392.1
56.3%
9,624.4
43.7%
¥11,241.4
53.0%
9,952.8
47.0%
¥22,990.0
¥22,797.3
¥22,553.3
¥22,016.5
¥21,194.2
Notes: 1. Figures are before adjustment on inter-office accounts in transit.
2. Negotiable certificates of deposit are not included.
3. Accounts at overseas branches and Japan offshore banking accounts are excluded.
4. Percentages indicate the composition ratio.
185
Formerly The Sakura Bank, Limited
Balance of Investment Trusts, Classified by Customer
March 31
Individual
Corporate
Total
2001
¥605.9
103.0
¥708.9
Billions of yen
2000
¥479.9
136.9
¥616.8
1999
¥13.9
37.5
¥051.4
Note: Balance of investment trusts is recognized on a contract basis and measured according to each fund’s net asset balance at the fiscal year-end.
Balance of Time Deposits, Classified by Maturity
March 31
Less than three months
Fixed interest rates
Floating interest rates
Three–six months
Fixed interest rates
Floating interest rates
Six months–one year
Fixed interest rates
Floating interest rates
One–two years
Fixed interest rates
Floating interest rates
Two–three years
Fixed interest rates
Floating interest rates
Three years or more
Fixed interest rates
Floating interest rates
Total
Fixed interest rates
Floating interest rates
Note: The figures above do not include installment savings.
2001
2000
1999
1998
1997
Billions of yen
¥06,221.4
6,062.4
0.3
¥01,950.6
1,939.2
0.0
¥02,689.1
2,685.9
0.0
¥00,520.8
520.2
0.1
¥00,276.6
276.3
0.1
¥00,194.4
184.5
0.0
¥11,853.1
11,668.7
0.7
¥06,821.1
6,651.0
0.4
¥01,849.7
1,839.7
0.2
¥02,572.8
2,565.8
2.1
¥00,725.1
724.3
0.5
¥00,681.6
680.6
0.9
¥00,103.8
92.8
0.1
¥12,754.3
12,554.5
4.4
¥07,744.5
7,571.6
0.3
¥02,154.9
2,146.7
0.1
¥02,990.6
2,984.0
3.6
¥01,277.7
1,276.0
0.6
¥00,771.7
771.3
0.4
¥00,147.2
135.0
0.1
¥15,086.8
14,884.9
5.3
¥06,927.8
6,626.4
0.4
¥02,308.4
2,196.3
0.2
¥03,258.2
3,245.1
3.2
¥01,028.6
1,020.1
1.4
¥01,200.8
1,199.2
0.5
¥00,166.4
163.1
—
¥14,890.5
14,450.5
6.0
¥06,361.7
5,685.7
0.7
¥02,404.1
2,311.2
0.3
¥03,728.8
3,641.4
5.2
¥01,030.0
1,029.6
0.3
¥00,868.5
867.2
1.3
¥00,177.3
148.6
—
¥14,570.6
13,684.0
7.8
186
Formerly The Sumitomo Bank, Limited
Balance of Investment Trusts, Classified by Customer
March 31
Individual
Corporate
Total
2001
¥586.2
62.8
¥649.1
Billions of yen
2000
¥398.3
49.6
¥448.0
1999
¥58.0
19.8
¥77.8
Note: Balance of investment trusts is recognized on a contract basis and measured according to each fund’s net asset balance at the fiscal year-end.
Balance of Time Deposits, Classified by Maturity
March 31
Less than three months
Fixed interest rates
Floating interest rates
Three–six months
Fixed interest rates
Floating interest rates
Six months–one year
Fixed interest rates
Floating interest rates
One–two years
Fixed interest rates
Floating interest rates
Two–three years
Fixed interest rates
Floating interest rates
Three years or more
Fixed interest rates
Floating interest rates
Total
Fixed interest rates
Floating interest rates
Note: The figures above do not include installment savings.
2001
2000
1999
1998
1997
Billions of yen
¥04,303.8
4,080.0
—
¥02,127.1
2,085.3
—
¥02,870.5
2,867.6
—
¥01,102.2
1,100.3
—
¥00,675.2
667.0
5.0
¥00,380.3
347.6
—
¥11,459.2
11,148.0
5.0
¥04,578.2
3,848.3
0.7
¥02,143.8
2,097.8
0.8
¥03,231.8
3,226.4
1.2
¥00,785.7
774.8
2.7
¥00,768.6
765.2
2.3
¥00,362.4
330.6
0.0
¥11,870.8
11,043.3
7.8
¥05,293.5
4,929.7
0.3
¥01,982.5
1,964.5
0.4
¥02,914.7
2,901.3
10.3
¥01,263.7
1,248.7
6.9
¥00,594.1
590.5
2.5
¥00,366.3
340.3
0.0
¥12,415.1
11,975.3
20.6
¥05,980.1
5,272.7
0.2
¥02,696.8
1,982.2
0.5
¥02,948.0
2,945.5
0.7
¥00,879.5
874.2
3.6
¥01,060.3
1,051.5
1.9
¥00,422.3
393.1
0.0
¥13,987.3
12,519.4
7.1
¥07,807.5
5,273.8
0.6
¥02,001.4
1,981.7
0.4
¥03,060.5
3,048.1
1.2
¥00,758.4
727.6
1.7
¥00,672.6
670.0
2.4
¥00,515.3
515.3
—
¥14,816.0
12,216.9
6.5
187
LOANS
Formerly The Sakura Bank, Limited
Balance of Loans and Bills Discounted
Year-End Balance
March 31
Domestic operations
Loans on notes
Loans on deeds
Overdrafts
Bills discounted
Subtotal
International operations
Loans on notes
Loans on deeds
Overdrafts
Bills discounted
Subtotal
Total
Average Balance
Years ended March 31
Domestic operations
Loans on notes
Loans on deeds
Overdrafts
Bills discounted
Subtotal
International operations
Loans on notes
Loans on deeds
Overdrafts
Bills discounted
Subtotal
Total
2001
2000
1999
1998
1997
Billions of yen
¥02,798.4
17,830.4
6,294.4
638.5
¥03,004.0
18,543.1
6,728.7
560.3
¥03,113.6
18,545.5
6,621.4
425.6
¥03,061.9
17,620.7
7,291.7
741.4
¥03,547.4
17,698.0
7,807.2
847.5
¥27,561.8
¥28,836.3
¥28,706.3
¥28,715.8
¥29,900.3
¥00,331.5
2,652.4
27.6
1.9
¥00,359.7
2,714.0
21.6
8.1
¥00,370.9
3,183.9
24.4
5.5
¥00,704.6
5,609.4
40.0
13.7
¥01,009.6
5,814.8
84.6
24.5
¥03,013.6
¥03,103.5
¥03,584.9
¥06,367.8
¥06,933.5
¥30,575.4
¥31,939.9
¥32,291.2
¥35,083.7
¥36,833.9
2001
2000
1999
1998
1997
Billions of yen
¥02,920.4
18,175.6
6,282.7
542.2
¥03,092.0
18,467.1
6,749.7
546.0
¥03,202.9
18,218.4
7,618.7
719.2
¥03,423.5
17,566.6
7,763.6
872.5
¥03,786.5
17,460.3
7,893.1
956.9
¥27,921.1
¥28,855.0
¥29,759.3
¥29,626.4
¥30,097.0
¥00,330.8
2,757.6
24.9
5.9
¥00,364.1
3,048.3
22.5
8.0
¥00,564.4
4,551.2
35.6
10.3
¥00,958.4
6,394.1
74.3
21.8
¥01,181.4
5,563.2
100.6
26.0
¥03,119.4
¥03,443.1
¥05,161.6
¥07,448.7
¥06,871.4
¥31,040.5
¥32,298.1
¥34,921.0
¥37,075.1
¥36,968.4
Note: The average balance of foreign currency-denominated transactions by domestic branches in international operations is calculated by the monthly
current method.
188
LOANS
Formerly The Sumitomo Bank, Limited
Balance of Loans and Bills Discounted
Year-End Balance
March 31
Domestic operations
Loans on notes
Loans on deeds
Overdrafts
Bills discounted
Subtotal
International operations
Loans on notes
Loans on deeds
Overdrafts
Bills discounted
Subtotal
Total
Average Balance
Years ended March 31
Domestic operations
Loans on notes
Loans on deeds
Overdrafts
Bills discounted
Subtotal
International operations
Loans on notes
Loans on deeds
Overdrafts
Bills discounted
Subtotal
Total
2001
2000
1999
1998
1997
Billions of yen
¥04,090.2
16,949.5
5,549.1
466.2
¥02,496.0
16,657.0
7,697.9
440.3
¥02,985.4
16,647.4
7,571.7
493.1
¥03,726.0
15,433.8
7,839.3
711.3
¥03,957.3
14,517.0
7,535.0
760.3
¥27,055.2
¥27,291,4
¥27,697.8
¥27,710.6
¥26,769.8
¥00,696.9
3,198.8
221.4
—
¥00,617.4
3,123.2
326.4
—
¥01,017.0
4,322.3
679.5
—
¥01,463.5
5,556.2
1,196.1
3.7
¥01,676.4
5,717.4
2,425.5
10.9
¥04,117.1
¥04,067.1
¥06,019.0
¥08,219.6
¥09,830.3
¥31,172.3
¥31,358.5
¥33,716.8
¥35,930.3
¥36,600.1
2001
2000
1999
1998
1997
Billions of yen
¥03,309.9
16,855.3
6,815.7
403.8
¥02,801.8
16,612.8
8,154.4
450.6
¥03,638.6
16,145.1
8,460.6
605.6
¥03,994.6
14,898.3
7,954.2
728.5
¥04,118.6
14,156.0
7,353.6
745.8
¥27,384.8
¥28,019.7
¥28,850.1
¥27,575.7
¥26,374.1
¥00,721.2
3,401.9
275.2
—
¥00,795.2
3,634.8
535.2
—
¥01,315.0
5,018.6
1,023.4
1.2
¥01,787.0
6,212.3
2,033.7
11.8
¥01,797.5
5,565.5
2,579.3
9.3
¥04,398.5
¥04,965.2
¥07,358.4
¥10,044.9
¥09,951.7
¥31,783.4
¥32,985.0
¥36,208.6
¥37,620.6
¥36,325.9
Note: The average balance of foreign currency-denominated transactions by domestic branches in international operations is calculated by the monthly
current method.
189
Formerly The Sakura Bank, Limited
Balance of Loans and Bills Discounted, Classified by Purpose
March 31
Funds for capital investment
Funds for working capital
Total
Note: Percentages indicate the composition ratio.
Breakdown of Loan Collateral
March 31
Securities
Commercial claims
Commercial goods
Real estate
Other
Subtotal
Guanranteed
Unsecured
Total
Billions of yen
2001
2000
1999
1998
1997
¥12,673.7
41.5%
17,901.7
58.5%
¥13,014.9
40.7%
18,925.0
59.3%
¥12,904.5
40.0%
19,386.7
60.0%
¥13,291.4
37.9%
21,792.3
62.1%
¥12,833.1
34.8%
24,000.7
65.2%
¥30,575.4
¥31,939.9
¥32,291.2
¥35,083.7
¥36,833.9
Billions of yen
2001
2000
1999
1998
1997
¥00,349.8
654.9
14.4
5,519.7
176.0
¥00,466.0
726.2
5.8
5,969.0
363.9
¥00,474.6
771.6
11.0
6,558.9
244.0
¥00,512.0
886.8
8.0
7,446.4
218.7
¥00,604.1
1,259.1
14.7
7,848.2
166.6
¥06,714.9
¥07,531.0
¥08,060.2
¥09,072.1
¥09,892.8
¥13,982.7
9,877.8
¥14,575.1
9,833.7
¥14,444.2
9,786.7
¥14,868.8
11,142.7
¥14,541.6
12,399.4
¥30,575.4
¥31,939.9
¥32,291.2
¥35,083.7
¥36,833.9
Balance of Loans and Bills Discounted, Classified by Maturity
March 31
One year or less
Floating interest rates
Fixed interest rates
One–three years
Floating interest rates
Fixed interest rates
Three–five years
Floating interest rates
Fixed interest rates
Five–seven years
Floating interest rates
Fixed interest rates
More than seven years
Floating interest rates
Fixed interest rates
No designated term
Floating interest rates
Fixed interest rates
Total
Billions of yen
2001
2000
1999
1998
1997
¥06,087.7
/
/
¥06,587.7
/
/
¥06,528.4
/
/
¥10,162.5
/
/
¥13,217.4
/
/
4,731.2
3,249.8
1,481.3
2,875.1
2,010.7
864.3
1,492.2
803.0
689.1
8,860.8
7,075.1
1,785.7
6,528.2
6,527.1
1.0
4,421.1
2,218.4
2,202.6
3,076.9
2,107.5
969.3
1,453.5
842.2
611.3
9,394.8
8,390.9
1,003.9
7,005.6
7,004.9
0.7
4,730.3
2,705.5
2,024.7
3,306.5
2,232.8
1,073.6
1,495.6
932.1
563.5
9,339.5
8,189.8
1,149.7
6,890.6
6,889.6
1.0
6,182.4
4,665.1
1,517.3
3,495.1
2,583.8
911.2
1,821.5
1,395.5
426.0
6,093.1
4,304.8
1,788.3
7,328.9
7,327.9
1.0
5,761.7
3,683.6
2,078.0
2,829.3
1,714.1
1,115.2
1,555.8
1,244.0
311.7
5,606.5
4,738.0
868.4
7,863.0
7,861.6
1.4
¥30,575.4
¥31,939.9
¥32,291.2
¥35,083.7
¥36,833.9
Note: Loans with a maturity of one year or less are not classified by floating or fixed interest rates.
190
Formerly The Sumitomo Bank, Limited
Balance of Loans and Bills Discounted, Classified by Purpose
March 31
Funds for capital investment
Funds for working capital
Total
Note: Percentage indicates the composition ratio.
Breakdown of Loan Collateral
March 31
Securities
Commercial claims
Commercial goods
Real estate
Other
Subtotal
Guanranteed
Unsecured
Total
Billions of yen
2001
2000
1999
1998
1997
¥11,694.2
37.5%
19,478.1
62.5%
¥11,701.4
37.3%
19,657.0
62.7%
¥12,226.5
36.3%
21,490.3
63.7%
¥11,964.3
33.3%
23,965.9
66.7%
¥11,790.6
32.2%
24,809.4
67.8%
¥31,172.3
¥31,358.5
¥33,716.8
¥35,930.3
¥36,600.1
Billions of yen
2001
2000
1999
1998
1997
¥00,610.8
638.7
1.3
4,899.4
379.6
¥00,404.3
671.9
2.6
5,086.5
564.4
¥00,554.8
673.8
3.5
5,477.6
424.4
¥00,654.3
1,087.0
4.5
6,321.3
328.2
¥00,818.3
861.5
9.4
7,012.4
295.3
¥06,529.9
¥06,729.9
¥07,134.3
¥08,395.5
¥08,997.0
¥10,923.8
13,718.5
¥11,344.3
13,284.2
¥12,150.3
14,432.1
¥13,639.6
13,895.1
¥13,078.0
14,524.9
¥31,172.3
¥31,358.5
¥33,716.8
¥35,930.3
¥36,600.1
Balance of Loans and Bills Discounted, Classified by Maturity
March 31
One year or less
Floating interest rates
Fixed interest rates
One–three years
Floating interest rates
Fixed interest rates
Three–five years
Floating interest rates
Fixed interest rates
Five–seven years
Floating interest rates
Fixed interest rates
More than seven years
Floating interest rates
Fixed interest rates
No designated term
Floating interest rates
Fixed interest rates
Total
Billions of yen
2001
2000
1999
1998
1997
¥10,269.3
/
/
¥07,465.4
/
/
¥09,182.7
/
/
¥11,276.5
/
/
¥11,458.9
/
/
5,889.3
3,243.2
2,646.1
3,451.9
2,246.7
1,205.2
1,375.7
1,134.3
241.4
4,415.3
4,063.1
352.2
5,770.5
5,770.5
—
4,882.9
2,747.0
2,135.8
3,764.2
2,056.0
1,708.1
1,402.8
925.7
477.0
5,818.8
4,347.3
1,471.5
8,024.2
8,024.2
—
5,920.4
3,239.3
2,681.1
3,852.5
2,111.0
1,741.4
1,516.3
1,089.8
426.4
4,993.4
3,844.7
1,148.6
8,251.3
8,251.3
—
5,775.3
3,257.7
2,517.6
3,507.7
2,241.6
1,266.0
1,690.1
1,326.6
363.5
4,642.6
3,573.2
1,069.3
9,037.9
9,037.9
—
5,422.6
3,289.6
2,133.0
3,767.2
2,569.4
1,197.8
1,592.8
1,243.3
349.5
4,397.7
3,594.8
802.9
9,960.6
9,960.6
—
¥31,172.3
¥31,358.5
¥33,716.8
¥35,930.3
¥36,600.1
Note: Loans with a maturity of one year or less are not classified by floating or fixed interest rates.
191
Formerly The Sakura Bank, Limited
Loan Portfolio, Classified by Industry
March 31
Domestic offices
Manufacturing
Agriculture, forestry, fisheries and mining
Construction
Wholesale and retail
Finance and insurance
Real estate
Transportation, communications and other public enterprises
Services
Municipalities
Other
Subtotal
Overseas offices
Public sector
Financial institutions
Commerce and industry
Other
Subtotal
Total
2001
2000
1999
1998
1997
Billions of yen
¥03,904.9
13.9%
129.9
0.5%
1,392.4
5.0%
4,119.6
14.7%
2,534.1
9.0%
4,664.2
16.6%
1,590.1
5.7%
2,616.7
9.3%
222.3
0.8%
6,843.3
24.5%
¥28,017.9
100.0%
¥000,60.7
2.4%
111.2
4.3%
2,320.5
90.7%
65.0
2.6%
¥02,557.5
100.0%
¥03,915.3
13.4%
208.7
0.7%
1,554.5
5.3%
4,342.4
14.8%
2,533.8
8.7%
4,397.1
15.0%
1,635.0
5.6%
3,026.5
10.4%
332.3
1.1%
7,298.4
25.0%
¥29,244.6
100.0%
¥00,048.4
1.8%
144.3
5.4%
2,432.4
90.2%
69.9
2.6%
¥02,695.3
100.0%
¥03,738.5
12.8%
226.7
0.8%
1,530.7
5.2%
4,451.6
15.3%
2,624.3
9.0%
4,426.7
15.2%
1,355.0
4.6%
3,383.0
11.6%
307.1
1.0%
7,134.2
24.5%
¥29,178.1
100.0%
¥00,077.9
2.5%
215.0
6.9%
2,450.4
78.7%
369.5
11.9%
¥03,113.0
100.0%
¥03,889.2
13.3%
230.4
0.8%
1,589.6
5.4%
4,787.8
16.3%
2,727.4
9.3%
4,633.3
15.8%
1,253.6
4.3%
3,386.3
11.6%
240.1
0.8%
6,564.7
22.4%
¥29,303.1
100.0%
¥00,186.8
3.2%
385.2
6.7%
4,733.4
81.9%
475.0
8.2%
¥05,780.6
100.0%
¥04,080.2
13.4%
251.9
0.8%
1,689.1
5.5%
5,231.6
17.1%
3,076.5
10.1%
4,453.1
14.6%
1,480.4
4.9%
3,697.2
12.1%
219.5
0.7%
6,351.0
20.8%
¥30,531.0
100.0%
¥00,174.8
2.8%
607.4
9.6%
5,370.3
85.2%
150.1
2.4%
¥06,302.8
100.0%
¥30,575.4
¥31,939.9
¥32,291.2
¥35,083.7
¥36,833.9
Notes: 1. Japan offshore banking accounts are included in the overseas offices’ accounts.
2. Percentages indicate the composition ratio.
192
Formerly The Sumitomo Bank, Limited
Loan Portfolio, Classified by Industry
March 31
Domestic offices
Manufacturing
Agriculture, forestry, fisheries and mining
Construction
Wholesale and retail
Finance and insurance
Real estate
Transportation, communications and other public enterprises
Services
Municipalities
Other
Subtotal
Overseas offices
Public sector
Financial institutions
Commerce and industry
Other
Subtotal
Total
2001
2000
1999
1998
1997
Billions of yen
¥03,550.4
12.9%
58.9
0.2%
1,536.7
5.6%
3,511.4
12.8%
2,316.0
8.4%
4,557.9
16.6%
1,392.0
5.1%
4,103.6
14.9%
81.8
0.3%
6,424.2
23.2%
¥27,533.2
100.0%
¥00,203.2
5.6%
267.5
7.4%
3,167.6
87.0%
0.6
0.0%
¥03,639.0
100.0%
¥03,503.0
12.6%
62.5
0.2%
1,643.5
5.9%
3,529.7
12.7%
2,325.1
8.4%
4,318.3
15.6%
1,213.1
4.4%
4,481.3
16.1%
104.2
0.4%
6,564.6
23.7%
¥27,745.9
100.0%
¥00,159.3
4.4%
289.0
8.0%
3,162.6
87.6%
1.5
0.0%
¥03,612.6
100.0%
¥03,450.4
12.2%
97.5
0.3%
1,537.6
5.4%
3,605.2
12.7%
2,059.1
7.3%
4,198.7
14.8%
1,183.7
4.2%
4,635.1
16.4%
106.5
0.4%
7,467.0
26.3%
¥28,341.3
100.0%
¥00,193.9
3.6%
419.6
7.8%
4,753.8
88.4%
8.1
0.2%
¥05,375.4
100.0%
¥03,407.0
11.9%
76.2
0.3%
1,584.5
5.6%
3,665.4
12.8%
2,193.2
7.7%
4,001.6
14.0%
1,295.8
4.5%
4,985.6
17.5%
78.9
0.3%
7,241.8
25.4%
¥28,530.3
100.0%
¥00,241.3
3.3%
609.3
8.2%
6,537.8
88.4%
11.3
0.2%
¥07,399.9
100.0%
¥03,402.7
12.3%
67.9
0.2%
1,541.6
5.6%
3,601.8
13.0%
2,047.0
7.4%
3,796.2
13.8%
1,219.0
4.4%
4,884.7
17.7%
96.3
0.4%
6,971.5
25.2%
¥27,629.2
100.0%
¥00,339.7
3.8%
760.7
8.5%
7,852.7
87.5%
17.7
0.2%
¥08,970.9
100.0%
¥31,172.3
¥31,358.5
¥33,716.8
¥35,930.3
¥36,600.1
Notes: 1. Japan offshore banking accounts are included in the overseas offices’ accounts.
2. Percentages indicate the composition ratio.
193
Formerly The Sakura Bank, Limited
Loans to Individuals and Small and Medium-Sized Corporations
March 31
2001
2000
1999
1998
1997
Total domestic loans (A)
Loans to small and medium-sized corporations, etc. (B)
(B) / (A)
¥28,017.9
20,804.3
74.25%
¥29,244.6
21,260.0
72.69%
¥29,178.1
20,367.2
69.80%
¥29,303.1
20,679.8
70.57%
¥30,531.0
21,341.4
69.90%
Billions of yen
Notes: 1. The figures above are shown after deduction of loans at overseas branches and of Japan offshore banking accounts.
2. Small and medium-sized corporations, etc., are defined as companies having capital of not more than ¥300 million (¥100 million in wholesale,
and ¥50 million in retail and services business categories), or companies and individuals with not more than 300 full-time employees (100 in
wholesale, and 50 in retail and 100 in services business categories).
Pursuant to the partial revision of Small and Medium Enterprise Basic Law effective December 3, 1999, the coverage of ‘small and medium-sized
corporations’ was expanded, and the figures of (B) as of March 31, 2001 and 2000 are shown based on the new definition.
Consumer Loans Outstanding
March 31
Consumer loans
Housing loans
Breakdown of Reserve for Possible Loan Losses
Billions of yen
2001
2000
1999
1998
1997
¥7,931.0
6,695.4
¥7,974.6
6,612.7
¥7,687.7
6,173.1
¥7,279.5
5,676.9
¥6,998.5
5,304.8
Year ended March 31, 2001
General reserve for possible loan losses
Specific reserve for estimated loan losses
on certain doubtful loans
For nonresident loans
Reserve for possible losses on specific overseas loans
Total
Year ended March 31, 2000
General reserve for possible loan losses
Specific reserve for estimated loan losses
on certain doubtful loans
For nonresident loans
Reserve for possible losses on specific overseas loans
Total
Balance at beginning
of the fiscal year
Increase during
the fiscal year
Decrease during the fiscal year
Objectives
Others
Balance at end
of the fiscal year
Billions of yen
¥197.2
[1.5]
¥142.8
¥0,0—.
¥197.2*
¥142.8
454.0
270.3
193.4
260.5*
270.3
32.9
7.6
[(0.0)]
¥658.9
[1.5]
20.0
11.6
11.0
21.9*
—
7.6*
20.0
11.6
¥424.8
¥193.4
¥465.4
¥424.8
Balance at beginning
of the fiscal year
Increase during
the fiscal year
Decrease during the fiscal year
Objectives
Others
Balance at end
of the fiscal year
Billions of yen
¥209.7
[3.6]
¥198.8
¥0,0—.
¥209.7*
¥198.8
511.8
454.0
226.6
285.1*
454.0
49.4
10.2
[(0.0)]
¥731.9
[3.6]
32.9
7.6
16.5
32.9*
—
10.2*
32.9
7.6
¥660.4
¥226.6
¥505.2
¥660.4
* Transfer from reserves by reversal or origination method
Note: Figures in brackets [ ] indicate foreign exchange translation adjustments.
194
Formerly The Sumitomo Bank, Limited
Loans to Individuals and Small and Medium-Sized Corporations
March 31
2001
2000
1999
1998
1997
Total domestic loans (A)
Loans to small and medium-sized corporations, etc. (B)
(B) / (A)
¥27,533.2
19,666.9
71.42%
¥27,745.9
20,199.1
72.80%
¥28,341.3
20,173.9
71.18%
¥28,530.3
21,175.9
74.22%
¥27,629.2
20,652.1
74.75%
Billions of yen
Notes: 1. The figures above are shown after deduction of loans at overseas branches and of Japan offshore banking accounts.
2. Small and medium-sized corporations, etc., are defined as companies having capital of not more than ¥300 million (¥100 million in wholesale,
and ¥50 million in retail and services business categories), or companies with not more than 300 full-time employees (100 in wholesale, and 50
in retail and 100 in services business categories) and individuals.
Pursuant to the partial revision of Small and Medium Enterprise Basic Law effective December 3, 1999, the coverage of ‘small and medium-sized
corporations’ was expanded, and the figures of (B) as of March 31, 2001 and 2000 are shown based on the new definition.
Consumer Loans Outstanding
March 31
Consumer loans
Housing loans
Breakdown of Reserve for Possible Loan Losses
Billions of yen
2001
2000
1999
1998
1997
¥5,553.6
5,095.7
¥5,708.8
5,216.8
¥5,842.0
5,316.3
¥5,730.7
5,169.2
¥5,426.9
4,834.8
Year ended March 31, 2001
General reserve for possible loan losses
Specific reserve for estimated loan losses
on certain doubtful loans
For nonresident loans
Reserve for possible losses on specific overseas loans
Total
Year ended March 31, 2000
General reserve for possible loan losses
Specific reserve for estimated loan losses
on certain doubtful loans
For nonresident loans
Reserve for possible losses on specific overseas loans
Total
Balance at beginning
of the fiscal year
Increase during
the fiscal year
Decrease during the fiscal year
Objectives
Others
Balance at end
of the fiscal year
Billions of yen
¥362.0
[(4.4)]
544.3
[(5.2)]
40.4
[(5.0)]
12.3
[—]
¥918.7
[(9.6)]
¥225.0
¥0,0—
¥362.0*
¥225.0
437.7
253.3
291.0*
437.7
22.6
8.4
16.1
24.3*
—
12.3*
22.6
8.4
¥671.0
¥253.3
¥665.3
¥671.0
Balance at beginning
of the fiscal year
Increase during
the fiscal year
Decrease during the fiscal year
Objectives
Others
Balance at end
of the fiscal year
Billions of yen
¥0,315.2
[3.4]
714.4
[4.3]
27.2
[3.7]
15.4
[—]
¥1,045.1
[7.7]
¥357.5
¥0,0—.
¥315.2*
¥357.5
539.1
428.3
286.0*
539.1
35.4
12.3
7.3
—
19.9*
15.4*
35.4
12.3
¥909.0
¥428.3
¥616.8
¥909.0
* Transfer from reserves by reversal or origination method
Note: Figures in brackets [ ] indicate foreign exchange translation adjustments.
195
Formerly The Sakura Bank, Limited
Write-Off of Loans
Years ended March 31
Write-off of loans
Specific Overseas Loans
March 31
Indonesia
Russia
Other countries
Total
Ratio of the total amounts to total assets
Number of countries
Risk-Monitored Loans
Billions of yen
2001
2000
1999
1998
1997
¥240.5
¥113.3
¥149.3
¥011.8
¥010.7
Billions of yen
2001
2000
1999
1998
1997
¥124.2
0.1
3.3
4 countries
¥116.2
0.1
5.9
8 countries
¥178.2
0.1
6.8
8 countries
¥,000/
1.6
1.7
7 countries
¥0,00/
0.1
17.3
9 countries
¥127.7
0.26%
6
¥122.3
0.26%
10
¥185.2
0.39%
10
¥003.4
0.01%
8
¥017.4
0.03%
10
Billions of yen
March 31
2001
2000
1999
1998
1997
Bankrupt loans (a)
Non-accrual loans (b)
Renegotiated loans (c)
Loans to borrowers who are financially assisted by the Bank (d)
Subtotal (previous standard) (a) + (b) + (c) + (d)
Past due loans (3 months or more) (e)
Restructured loans (f)
¥0,174.8
849.9
/
/
/
65.7
124.6
¥0,156.6
1,067.7
/
/
/
35.2
412.7
¥0,165.1
994.8
/
/
¥0,402.8
592.4
143.7
1.0
¥0,355.8
829.1
244.2
346.3
/
¥1,140.0
¥1,775.5
58.9
541.6
216.7
263.3
/
/
Total (new standard) (a) + (b) + (e) + (f)
¥1,215.1
¥1,672.3
¥1,760.5
¥1,475.4
¥00000/
Problem Assets Based on the Financial Reconstruction Law
March 31
Bankrupt and quasi-bankrupt assets (Hatan kousei tou saiken)
Doubtful assets (Kiken saiken)
Substandard assets (Youkanri saiken)
Total of problem assets
Normal assets (Seijou saiken)
Total
Billions of yen
2001
2000
1999
¥00,390.9
679.7
190.3
¥00,394.7
880.8
448.0
¥00,390.2
809.2
600.6
¥01,260.9
¥01,723.5
¥01,800.0
32,302.5
33,184.9
33,896.7
¥33,563.4
¥34,908.4
¥35,696.7
196
Formerly The Sumitomo Bank, Limited
Write-Off of Loans
Years ended March 31
Write-off of loans
Specific Overseas Loans
March 31
Indonesia
Algeria
Iran
Other countries
Total
Ratio of the total amounts to total assets
Number of countries
Risk-Monitored Loans
Billions of yen
2001
2000
1999
1998
1997
¥500.9
¥347.3
¥305.0
¥066.0
¥130.2
Billions of yen
2001
2000
1999
1998
1997
¥60.3
4.3
—
0.5
4 countries
¥65.1
0.10%
6
¥59.7
4.3
0.7
0.4
7 countries
¥65.3
0.13%
10
¥69.5
4.7
4.7
3.7
13 countries
¥82.7
0.16%
16
¥0,/
4.9
/
0.2
4 countries
¥05.2
0.00%
5
¥0,/
4.8
/
0.7
4 countries
¥05.6
0.00%
5
Billions of yen
March 31
2001
2000
1999
1998
1997
Bankrupt loans (a)
Non-accrual loans (b)
Renegotiated loans (c)
Loans to borrowers who are financially assisted by the Bank (d)
Subtotal (previous standard) (a) + (b) + (c) + (d)
Past due loans (3 months or more) (e)
Restructured loans (f)
¥0,060.8
1,357.6
/
/
/
37.5
61.6
¥0,073.0
1,436.0
/
/
/
40.3
334.7
¥0,115.4
1,524.2
/
/
¥0,257.8
544.7
84.9
117.6
¥0,190.4
616.6
104.6
162.4
/
¥1,005.2
¥1,074.2
82.4
237.6
311.2
355.1
/
/
Total (new standard) (a) + (b) + (e) + (f)
¥1,517.5
¥1,884.0
¥1,959.8
¥1,469.1
¥0,000,/
Problem Assets Based on the Financial Reconstruction Law
March 31
Bankrupt and quasi-bankrupt assets (Hatan kousei tou saiken)
Doubtful assets (Kiken saiken)
Substandard assets (Youkanri saiken)
Total of problem assets
Normal assets (Seijou saiken)
Total
Billions of yen
2001
2000
1999
¥00,199.0
1,263.5
99.1
¥00,190.8
1,351.2
375.0
¥00,217.3
1,476.3
320.1
¥01,561.6
¥01,917.0
¥02,013.7
33,855.3
32,849.8
35,421.0
¥35,416.9
¥34,766.8
¥37,434.7
197
SECURITIES
Formerly The Sakura Bank, Limited
Average Balance of Trading Securities
Years ended March 31
2001
2000
Japanese government bonds
Japanese local government bonds
Japanese government-guaranteed bonds
Total
¥276.8
3.6
6.0
¥286.5
¥233.3
8.5
46.0
¥287.9
Balance of Securities
Year-End Balance
March 31
Domestic operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Securities lent
Other
1998
¥82.3
0.3
3.5
¥86.2
1997
¥68.9
0.2
0.1
¥69.3
Billions of yen
1999
¥083.0
4.5
78.6
¥166.3
Billions of yen
2001
2000
1999
1998
1997
¥04,669.0
5.3
458.0
3,994.8
—
107.6
¥1,844.4
134.6
414.9
3,546.3
15.7
123.1
¥1,404.5
121.4
381.0
3,291.0
18.2
162.3
¥1,193.2
175.3
462.7
3,395.0
17.2
221.1
¥1,322.1
188.7
573.1
3,761.0
15.4
187.3
Subtotal
¥09,234.9
¥6,079.2
¥5,378.8
¥5,464.8
¥6,047.9
International operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Foreign bonds
Foreign stocks
Subtotal
Total
¥0,0000— ¥0,000,0— ¥0,000,0— ¥0,000,0— ¥0,000,0—
—
—
—
1,014.1
815.2
198.8
—
—
—
964.7
811.5
153.1
—
—
—
984.5
772.4
212.0
—
—
—
838.7
656.0
182.6
—
—
—
832.3
664.4
167.8
¥00,964.7
¥0,832.3
¥0,838.7
¥0,984.5
¥1,014.1
¥10,199.6
¥6,911.6
¥6,217.5
¥6,449.3
¥7,062.1
Notes: 1. Japanese stocks include treasury stocks.
2. Securities lent in 2001 are included in each type of securities by the classification above.
198
SECURITIES
Formerly The Sumitomo Bank, Limited
Average Balance of Trading Securities
Years ended March 31
Japanese government bonds
Japanese local government bonds
Japanese government-guaranteed bonds
Total
Balance of Securities
Year-End Balance
March 31
Domestic operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
2001
¥138.8
0
0
¥138.9
2000
¥098.9
13.4
0
¥112.4
Billions of yen
1999
¥080.2
27.8
0
¥108.1
1998
¥65.9
0.5
0
¥66.5
1997
¥23.6
0.6
0
¥24.3
2001
2000
1999
1998
1997
Billions of yen
¥10,602.0
317.8
537.4
3,172.7
20.4
¥3,447.2
357.0
616.8
3,427.2
37.5
¥1,374.3
359.5
592.4
3,017.9
62.2
¥1,854.7
328.5
597.2
3,025.1
59.9
¥0,819.5
499.4
829.4
2,863.9
138.5
Subtotal
¥14,650.5
¥7,885.9
¥5,406.5
¥5,865.6
¥5,150.8
International operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Foreign bonds
Foreign stocks
Subtotal
Total
¥0,0000—
—
—
—
2,209.7
1,442.2
767.5
¥0000—
—
—
—
1,096.2
497.7
598.4
¥0000—
—
—
—
1,273.3
677.6
595.7
¥0000—
—
—
—
1,391.2
616.7
774.5
¥0000—
—
—
—
853.4
400.8
452.6
¥02,209.7
¥1,096.2
¥1,273.3
¥1,391.2
¥0,853.4
¥16,860.3
¥8,982.2
¥6,679.8
¥7,256.9
¥6,004.3
Notes: 1. Japanese stocks include treasury stocks.
2. Securities lent are included in each type of securities by the classification above.
199
Formerly The Sakura Bank, Limited
Average Balance
Years ended March 31
Domestic operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Subtotal
International operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Foreign bonds
Foreign stocks
Subtotal
Total
2001
2000
1999
1998
1997
Billions of yen
¥2,520.8
101.1
414.3
3,523.9
124.1
¥1,931.3
139.7
381.4
3,282.4
148.0
¥1,657.9
64.0
389.6
3,337.9
173.7
¥1,269.8
162.0
521.3
3,726.3
194.3
¥1,336.7
190.9
625.3
3,797.4
177.6
¥6,684.3
¥5,882.9
¥5,623.3
¥5,873.9
¥6,128.1
¥0,000—
—
—
—
767.2
600.3
166.9
¥000,0—
—
—
—
855.8
679.4
176.3
¥000,0—
—
—
—
945.8
728.8
217.0
¥000,0—
—
—
—
1,101.4
901.9
199.4
¥000,0—
—
—
—
842.3
665.3
177.0
¥0,767.2
¥0,855.8
¥0,945.8
¥1,101.4
¥0,842.3
¥7,451.6
¥6,738.8
¥6,569.2
¥6,975.4
¥6,970.5
Notes: 1. Japanese stocks include treasury stocks.
2. Securities lent are included in each type of securities by the classification above.
3. The average balance of foreign currency denominated transactions by domestic branches in international operations is calculated by the monthly
current method.
Balance of Securities Held, Classified by Maturity
March 31
One year or less
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
One–three years
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
Three–five years
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
200
2001
2000
1999
1998
1997
Billions of yen
¥2,343.9
2.2
22.4
358.6
354.1
/
¥0,639.7
—
126.3
125.7
106.6
/
¥0,833.7
0
198.9
138.1
109.9
/
¥441.8
0.2
57.7
197.2
183.5
0.6
¥200.8
2.2
65.6
209.1
181.7
0.9
¥581.5
0
148.3
55.9
33.6
0.6
¥076.8
0.4
81.4
252.3
212.2
0.0
¥172.8
2.7
89.4
259.8
235.2
2.2
¥279.7
—
78.7
73.5
41.9
3.1
¥051.7
0.1
67.8
357.7
262.9
2.0
¥199.7
0.7
161.4
203.5
175.5
0.6
¥472.6
2.5
83.6
59.7
33.4
0.3
¥227.3
0.1
70.9
85.7
69.8
0.8
¥130.3
0.6
214.9
389.5
315.3
1.2
¥448.8
3.0
157.7
197.1
171.9
1.2
Formerly The Sumitomo Bank, Limited
Average Balance
Years ended March 31
Domestic operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Subtotal
International operations
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Foreign bonds
Foreign stocks
Subtotal
Total
2001
2000
1999
1998
1997
Billions of yen
¥06,571.0
326.0
593.6
3,275.0
38.6
¥3,023.0
354.4
601.1
3,175.4
45.2
¥1,762.2
375.8
580.8
3,008.3
61.0
¥1,509.0
380.9
643.1
2,963.6
83.0
¥0,729.4
632.1
936.2
2,825.4
130.8
¥10,804.4
¥7,199.3
¥5,788.3
¥5,579.8
¥5,254.2
¥0,0000—
—
—
—
1,379.1
759.2
619.8
¥000,0—
—
—
—
1,167.2
581.8
585.4
¥000,0—
—
—
—
1,401.3
696.7
704.5
¥000,0—
—
—
—
1,012,1
494,1
517,9
¥000,0—
—
—
—
753.1
312.8
440.3
¥01,379.1
¥1,167.2
¥1,401.3
¥1,012,1
¥0,753.1
¥12,183.5
¥8,366.5
¥7,189.7
¥6,592,0
¥6,007.3
Notes: 1. Japanese stocks include treasury stocks.
2. Securities lent are included in each type of securities by the classification above.
3. The average balance of foreign currency denominated transactions by domestic branches in international operations is calculated by the monthly
current method.
Balance of Securities Held, Classified by Maturity
March 31
One year or less
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
One–three years
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
Three–five years
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
2001
2000
1999
1998
1997
Billions of yen
¥4,676.5
22.5
109.7
112.0
107.0
/
¥3,496.1
30.3
93.2
551.9
551.6
/
¥0,673.7
24.1
169.3
305.1
304.9
/
¥0,745.7
24.7
252.3
88.0
84.8
—
¥1,314.8
43.6
170.2
141.1
135.9
0.0
¥0,405.0
20.2
64.4
89.1
89.1
0.0
¥134.7
30.2
57.8
180.5
180.2
0.0
¥118.5
55.8
369.0
106.2
97.9
0.0
¥246.3
32.6
91.1
142.7
142.5
0.0
¥028.4
17.1
67.0
202.3
200.3
0.0
¥342.3
71.3
217.6
79.9
76.2
0.0
¥466.2
68.5
134.0
71.5
66.4
0.0
¥108.6
7.8
104.2
46.7
46.6
—
¥216.5
58.6
153.4
208.6
131.8
0.0
¥229.0
78.7
231.1
105.0
96.6
0.5
201
Formerly The Sakura Bank, Limited
(Continued)
March 31
Five–seven years
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
Seven–10 years
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
More than 10 years
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
No designated term
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Foreign bonds
Foreign stocks
Securities lent
Total
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Foreign bonds
Foreign stocks
Securities lent
2001
2000
1999
1998
1997
Billions of yen
¥0,076.1
2.9
54.1
60.8
33.3
/
¥0,775.4
0.0
56.0
85.8
65.6
/
¥0,000—
—
—
146.5
141.7
/
¥0,000—
—
—
3,994.8
156.5
—
153.1
/
¥4,669.0
5.3
458.0
3,994.8
1,072.3
811.5
153.1
/
¥0,172.4
2.9
74.4
41.2
14.3
—
¥0,447.7
129.0
59.7
103.0
75.8
—
¥0,000—
—
9.0
181.0
175.2
—
¥0,000—
—
—
3,546.3
167.8
—
167.8
13.4
¥1,844.4
134.6
414.9
3,546.3
955.4
664.4
167.8
15.7
¥0,078.0
0.0
74.2
52.5
18.6
0.7
¥0,797.0
118.2
48.0
134.2
103.5
—
¥0,000—
—
9.0
45.8
44.3
—
¥0,000—
—
—
3,291.0
182.6
—
182.6
12.2
¥1,404.5
121.4
381.0
3,291.0
1,001.0
656.0
182.6
18.2
¥0,158.7
8.5
76.8
53.0
20.3
0.6
¥0,310.3
163.3
56.2
92.0
52.9
1.4
¥0,000—
—
16.6
221.2
221.0
—
¥0,000—
—
—
3,395.0
218.2
6.1
212.0
12.1
¥1,193.2
175.3
462.7
3,395.0
1,205.6
772.4
212.0
17.2
¥0,358.9
—
40.0
53.2
22.9
0.6
¥0,156.6
184.9
74.3
101.5
60.3
1.4
¥0,000—
—
15.1
175.0
174.8
—
¥0,000—
—
—
3,761.0
199.1
—
198.8
10.1
¥1,322.1
188.7
573.1
3,761.0
1,201.5
815.2
198.8
15.4
Notes: 1. Japanese stocks include treasury stocks.
2. Securities lent in 2001 are included in each type of securities by the classification above.
202
Formerly The Sumitomo Bank, Limited
(Continued)
March 31
Five–seven years
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
Seven–10 years
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
More than 10 years
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other
Foreign bonds
Securities lent
No designated term
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Foreign bonds
Foreign stocks
Securities lent
Total
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other
Foreign bonds
Foreign stocks
Securities lent
2001
2000
1999
1998
1997
Billions of yen
¥00,406.0
55.6
33.8
38.3
35.7
/
¥01,349.5
184.5
128.2
100.8
91.4
/
¥0,0000—
0.5
3.0
351.4
351.4
/
¥0,0000—
—
—
3,172.7
770.3
—
767.5
/
¥10,602.0
317.8
537.4
3,172.7
2,230.1
1,442.2
767.5
/
¥0,513.2
25.7
44.6
35.3
34.4
—
¥0,468.4
241.9
85.1
63.3
57.9
—
¥0000—
0.5
—
95.3
95.3
—
¥0000—
—
—
3,427.2
621.3
—
598.4
—
¥3,447.2
357.0
616.8
3,427.2
1,133.8
497.7
598.4
0.0
¥0,351.4
26.6
29.4
30.8
30.6
—
¥0,523.2
213.5
44.9
156.2
134.8
—
¥0000—
0.5
—
90.7
90.7
—
¥0000—
—
—
3,017.9
628.1
0.5
595.7
—
¥1,374.3
359.5
592.4
3,017.9
1,335.5
677.6
595.7
0.0
¥0,137.3
33.6
46.8
22.5
22.4
—
¥0,874.3
137.3
131.6
59.3
56.1
—
¥0,006.0
0.5
—
203.4
188.5
—
¥0000—
—
—
3,025.1
812.0
6.6
774.5
—
¥1,854.7
328.5
597.2
3,025.1
1,451.1
616.7
774.5
0.0
¥0,148.5
53.0
62.8
43.2
21.7
—
¥0,113.6
300.6
277.6
34.5
29.9
—
¥00,03.0
0.5
—
67.7
67.7
—
¥0000—
—
—
2,863.9
485.4
6.2
452.6
—
¥0,819.5
499.4
829.4
2,863.9
991.4
400.8
452.6
0.5
Notes: 1. Japanese stocks include treasury stocks.
2. Securities lent in 2001 are included in each type of securities by the classification above.
203
CAPITAL RATIO
Formerly The Sakura Bank, Limited
Nonconsolidated Capital Ratio
March 31
Tier I capital:
Tier II capital:
Deductions:
Total capital:
Risk-adjusted assets:
Common stockholders’ equity
Other
Subtotal (A)
45% of unrealized gains on land
General reserve for possible loan losses
Qualifying subordinated debt
Subtotal (B)
(C)
(A) + (B) – (C) = (D)
On-balance-sheet
Off-balance-sheet
Asset equivalent of market risk
Subtotal (E)
Billions of yen
2001
2000
1999
¥02,238.5
285.5
¥02,185.5
285.4
¥02,162.2
286.2
¥02,524.0
¥02,470.9
¥02,448.4
¥00,031.5
142.8
1,111.0
¥00,336.4
198.8
1,286.8
¥00,037.8
213.4
1,333.1
¥01,285.4
¥01,522.0
¥01,584.4
¥00,016.9
3,792.5
29,547.5
2,157.6
135.4
¥00,390.9
3,992.0
29,627.5
2,151.8
137.9
¥00,390.9
4,031.9
29,586.3
2,817.4
156.9
¥31,840.6
¥31,917.3
¥32,560.7
Capital ratio (BIS guidelines) = (D) / (E) x 100
11.91%
12.50%
12.38%
204
CAPITAL RATIO
Formerly The Sumitomo Bank, Limited
Nonconsolidated Capital Ratio
March 31
Tier I capital:
Tier II capital:
Deductions:
Total capital:
Risk-adjusted assets:
Common stockholders’ equity
Other
Subtotal (A)
45% of unrealized gains on land
General reserve for possible loan losses
Qualifying subordinated debt
Subtotal (B)
(C)
(A) + (B) – (C) = (D)
On-balance-sheet
Off-balance-sheet
Asset equivalent of market risk
Subtotal (E)
Billions of yen
2001
2000
1999
¥01,738.9
567.0
¥01,700.0
531.0
¥01,670.2
556.7
¥02,305.9
¥02,231.1
¥02,226.9
¥00,121.2
224.9
1,651.8
¥00,125.1
357.5
1,651.1
¥00,127.6
318.7
1,623.3
¥01,997.9
¥02,133.9
¥02,069.6
¥00,058.7
4,245.1
32,166.2
3,654.5
125.3
¥00,053.7
4,311.2
31,682.4
2,787.0
110.3
¥00,035.7
4,260.8
32,400.6
3,173.6
105.4
¥35,946.1
¥34,579.8
¥35,679.7
Capital ratio (BIS guidelines) = (D) / (E) x 100
11.80%
12.46%
11.94%
205
RATIOS
Formerly The Sakura Bank, Limited
Yield/Interest Rate
Years ended March 31
Domestic operations
Interest-earning assets (A)
Interest-bearing liabilities (B)
(A) – (B)
International operations
Interest-earning assets (A)
Interest-bearing liabilities (B)
(A) – (B)
Total
Interest-earning assets (A)
Interest-bearing liabilities (B)
(A) – (B)
Income Ratio
Years ended March 31
Operating profit to total assets
Operating profit to stockholders’ equity
Net income to total assets
Net income to stockholders’ equity
2001
2000
1.92%
1.19
0.73
5.77
6.73
(0.96)
2.50
2.00
0.50
2001
0.42%
12.29
0.18
4.86
2.38%
1.67
0.71
9.45
11.75
(2.30)
3.34
2.92
0.42
2000
0.36%
10.45
0.13
3.23
Percent
1999
2.33%
1.99
0.34
9.44
10.01
(0.57)
3.58
3.43
0.15
Percent
1999
.—
.—
.—
.—
1998
1997
2.39%
2.01
0.38
7.31
7.30
0.01
3.59
3.33
0.26
1998
.—
.—
.—
.—
2.44%
2.06
0.38
7.70
7.47
0.23
3.80
3.48
0.32
1997
0.11%
4.34
0.10
3.73
Notes: 1. Operating profit (net income) to total assets = Operating profit (net income) / Average balance of total assets excluding customers’ liabilities for
acceptances and guarantees x 100
2. Operating profit (net income) to stockholders’ equity = (Operating profit (net income) – Preferred dividends) / {(Stockholders’ equity at beginning
of the fiscal year – Number of shares of preferred stock outstanding at beginning of the fiscal year x issue price) + (Stockholders’ equity at end
of the fiscal year – Number of shares of preferred stock outstanding at end of the fiscal year x Issue price)} divided by 2 x 100
3. Figures for 1999 and 1998 are not shown due to operating loss (net loss).
206
RATIOS
Formerly The Sumitomo Bank, Limited
Yield/Interest Rate
Years ended March 31
Domestic operations
Interest-earning assets (A)
Interest-bearing liabilities (B)
(A) – (B)
International operations
Interest-earning assets (A)
Interest-bearing liabilities (B)
(A) – (B)
Total
Interest-earning assets (A)
Interest-bearing liabilities (B)
(A) – (B)
Income Ratio
Years ended March 31
Operating profit to total assets
Operating profit to stockholders’ equity
Net income to total assets
Net income to stockholders’ equity
2001
2000
1.63%
1.07
0.56
6.05
5.69
0.36
2.57
2.06
0.51
2.13%
1.60
0.53
7.56
7.14
0.42
3.21
2.77
0.44
2001
0.32%
11.78
0.10
3.72
2000
0.36%
12.69
0.10
3.32
Percent
1999
2.51%
2.04
0.47
6.75
6.51
0.24
3.57
3.25
0.32
Percent
1999
.—
.—
.—
.—
1998
1997
2.71%
2.38
0.33
6.05
5.82
0.23
3.87
3.64
0.23
1998
.—
.—
.—
.—
2.90%
2.55
0.35
6.07
5.57
0.50
4.14
3.76
0.38
1997
0.10%
2.89
0.07
1.98
Notes: 1. Operating profit (net income) to total assets = Operating profit (net income) / Average balance of total assets excluding customers’ liabilities for
acceptances and guarantees x 100
2. Operating profit (net income) to stockholders’ equity = (Operating profit (net income) – Preferred dividends) / {(Stockholders’ equity at beginning
of the fiscal year – Number of shares of preferred stock outstanding at beginning of the fiscal year x issue price) + (Stockholders’ equity at end
of the fiscal year – Number of shares of preferred stock outstanding at end of the fiscal year x Issue price)} divided by 2 x 100
3. Figures for 1999 and 1998 are not shown due to operating loss (net loss).
207
Formerly The Sakura Bank, Limited
Loan-Deposit Ratio
March 31
Domestic operations
Loan amount (A)
Deposit amount (B)
Loan-deposit ratio (%)
2001
2000
1999
1998
1997
Millions of yen
¥27,561,843 ¥28,836,371 ¥28,706,315 ¥28,715,881 ¥29,900,344
28,872,715
29,424,953
29,238,110
29,782,688
29,863,033
(A) / (B)
Ratio by average balance for the fiscal year
93.66%
96.93%
96.56%
95.07%
96.38%
104.09%
98.21%
102.21%
103.56%
108.11%
International operations
Loan amount (A)
Deposit amount (B)
Loan-deposit ratio (%)
¥03,013,655 ¥03,103,581 ¥03,584,947 ¥06,367,890 ¥06,933,593
9,397,824
4,109,126
7,142,659
3,479,621
3,182,933
(A) / (B)
Ratio by average balance for the fiscal year
73.34%
75.63%
89.19%
100.12%
112.63%
91.27%
89.15%
80.13%
73.78%
68.81%
Total
Loan amount (A)
Deposit amount (B)
Loan-deposit ratio (%)
¥30,575,498 ¥31,939,952 ¥32,291,263 ¥35,083,771 ¥36,833,937
38,270,539
33,534,079
32,965,621
36,380,770
33,342,655
(A) / (B)
Ratio by average balance for the fiscal year
91.17%
94.26%
95.79%
95.58%
97.95%
101.97%
96.43%
96.85%
96.24%
97.73%
Note: Deposits include negotiable certificates of deposit.
Securities-Deposit Ratio
March 31
Domestic operations
Securities amount (A)
Deposit amount (B)
Securities-deposit ratio (%)
2001
2000
1999
1998
1997
Millions of yen
¥09,234,938 ¥06,079,295 ¥05,378,859 ¥05,464,860 ¥06,047,999
28,872,715
29,424,953
29,238,110
29,782,688
29,863,033
(A) / (B)
Ratio by average balance for the fiscal year
31.38%
23.20%
20.35%
19.38%
18.06%
19.66%
18.69%
20.26%
20.94%
22.01%
International operations
Securities amount (A)
Deposit amount (B)
Securities-deposit ratio (%)
¥00,964,730 ¥00,832,307 ¥00,838,710 ¥00,984,512 ¥01,014,157
9,397,824
4,109,126
7,142,659
3,182,933
3,479,621
(A) / (B)
Ratio by average balance for the fiscal year
23.47%
18.60%
23.91%
24.88%
26.35%
16.72%
13.78%
11.84%
10.79%
8.43%
Total
Securities amount (A)
Deposit amount (B)
Securities-deposit ratio (%)
¥10,199,669 ¥06,911,602 ¥06,217,570 ¥06,449,372 ¥07,062,157
38,270,539
33,534,079
32,965,621
36,380,770
33,342,655
(A) / (B)
Ratio by average balance for the fiscal year
30.41%
22.62%
20.72%
19.94%
18.86%
19.18%
17.72%
18.22%
18.45%
18.42%
Note: Deposits include negotiable certificates of deposit.
208
Formerly The Sumitomo Bank, Limited
Loan-Deposit Ratio
March 31
Domestic operations
Loan amount (A)
Deposit amount (B)
Loan-deposit ratio (%)
2001
2000
1999
1998
1997
Millions of yen
¥27,055,225 ¥27,291,435 ¥27,697,845 ¥27,710,654 ¥26,769,806
23,349,654
28,491,587
26,215,137
24,524,245
28,072,348
(A) / (B)
Ratio by average balance for the fiscal year
94.95%
101.03%
97.21%
101.48%
105.65%
110.38%
112.99%
112.50%
114.64%
117.44%
International operations
Loan amount (A)
Deposit amount (B)
Loan-deposit ratio (%)
¥04,117,157 ¥04,067,125 ¥06,019,012 ¥08,219,648 ¥09,830,305
16,484,173
12,865,798
8,704,106
6,786,172
6,157,482
(A) / (B)
Ratio by average balance for the fiscal year
47.30%
54.94%
66.05%
73.99%
88.69%
73.94%
63.88%
62.39%
59.63%
60.48%
Total
Loan amount (A)
Deposit amount (B)
Loan-deposit ratio (%)
¥31,172,382 ¥31,358,560 ¥33,716,858 ¥35,930,302 ¥36,600,112
39,833,827
37,195,694
33,001,309
37,390,044
34,229,831
(A) / (B)
Ratio by average balance for the fiscal year
83.80%
90.52%
91.61%
96.11%
102.16%
100.33%
96.09%
92.63%
91.88%
93.36%
Note: Deposits include negotiable certificates of deposit.
Securities-Deposit Ratio
March 31
Domestic operations
Securities amount (A)
Deposit amount (B)
Securities-deposit ratio (%)
2001
2000
1999
1998
1997
Millions of yen
¥14,650,585 ¥07,885,988 ¥05,406,537 ¥05,865,650 ¥05,150,899
23,349,654
28,491,587
24,524,245
26,215,137
28,072,348
(A) / (B)
Ratio by average balance for the fiscal year
51.42%
39.86%
28.09%
26.07%
20.62%
22.14%
23.91%
22.76%
22.05%
23.39%
International operations
Securities amount (A)
Deposit amount (B)
Securities-deposit ratio (%)
¥02,209,724 ¥01,096,256 ¥01,273,355 ¥01,391,280 ¥00,853,410
16,484,173
12,865,798
8,704,106
6,786,172
6,157,482
(A) / (B)
Ratio by average balance for the fiscal year
25.38%
17.22%
17.80%
17.39%
18.76%
14.08%
10.81%
6.28%
5.17%
4.57%
Total
Securities amount (A)
Deposit amount (B)
Securities-deposit ratio (%)
¥16,860,309 ¥08,982,244 ¥06,679,892 ¥07,256,931 ¥06,004,310
39,833,827
37,195,694
37,390,044
33,001,309
34,229,831
(A) / (B)
Ratio by average balance for the fiscal year
45.32%
34.70%
26.24%
24.37%
20.24%
19.92%
19.40%
16.23%
15.07%
15.43%
Note: Deposits include negotiable certificates of deposit.
209
CAPITAL
Formerly The Sakura Bank, Limited
Changes in Capital Stock
Fiscal year 1995
Fiscal year 1996
Fiscal year 1998
Millions of yen
Capital
stock
¥0,524,445
599,445
1,042,706
Capital
increase
¥050,035
75,000
443,260
Notes
Conversion of convertible bonds ¥50,035 million
Allotment to third parties ¥75,000 million
Allotment to third parties ¥443,260 million
Changes in Number of Shares Outstanding
Thousands of shares
Number of
shares outstanding
Number of
shares issued
Notes
Fiscal year 1995
Common stock
Preferred stock
(Series I)
Fiscal year 1996
Common stock
Preferred stock
(Series I)
Preferred stock
(Series II)
Fiscal year 1997
Common stock
Preferred stock
(Series I)
Preferred stock
(Series II)
Fiscal year 1998
Common stock
Preferred stock
(Series II)
Preferred stock
(Series III (type 2))
Fiscal year 1999
Common stock
Preferred stock
(Series II)
Preferred stock
3,424,,163
48,710
108,637
(1,290)
Conversion of convertible bonds (April 1, 1995–March 31, 1996)
Conversion of preferred stock (April 1, 1995–March 31, 1996)
3,424,163
48,710
—
—
75,000
75,000
Allotment to third parties
(Issue price ¥2,000/Capitalized amount ¥1,000)
3,747,134
—
322,971
(48,710)
26,883
(48,117)
4,083,121
335,987
11,307
(15,576)
800,000
800,000
4,117,297
2,772
34,176
(8,535)
Conversion of preferred stock (April 1, 1997–March 31, 1998)
Allotment to third parties
(Issue price ¥315/Capitalized amount ¥158)
Conversion of preferred stock (April 1, 1998–March 31, 1999)
Allotment to third parties
(Issue price ¥1,000/Capitalized amount ¥500)
Conversion of preferred stock (April 1, 1999–March 31, 2000)
Conversion of preferred stock (April 1, 2000–March 31, 2001)
(Series III (type 2))
800,000
—
Fiscal year 2000
Common stock
Preferred stock
(Series II)
Preferred stock
(Series III (type 2))
4,118,077
2,577
780
(195)
800,000
—
Balance of Outstanding Convertible Bonds
There is no corresponding item.
210
CAPITAL
Formerly The Sumitomo Bank, Limited
Changes in Capital Stock
Millions of yen
Capital
stock
Capital
increase
Fiscal year 1989
¥0,344,228
¥087,655
Fiscal year 1990
501,825
157,596
Fiscal year 1991
Fiscal year 1993
Fiscal year 1998
502,323
502,348
752,848
498
25
250,500
Changes in Number of Shares Outstanding
Thousands of shares
Number of
shares outstanding
Number of
shares issued
Fiscal year 1989
2,829,209
50,000
3,032
252,379
Fiscal year 1990
3,140,610
169,744
196
141,460
435
15
—
3,141,046
3,141,062
3,141,062
Fiscal year 1991
Fiscal year 1993
Fiscal year 1998
Common stock
Preferred stock
Notes
Public offering ¥82,900 million
Conversion of convertible bonds ¥4,755 million
Rights offering (at a price over par-value but less than market value)
¥157,312 million
Conversion of convertible bonds ¥283 million
Conversion of convertible bonds ¥498 million
Conversion of convertible bonds ¥25 million
Allotment to third parties ¥250,500 million
Notes
Public offering (October 1)
Conversion of convertible bonds (April 1, 1989–March 31, 1990)
Allocation of bonus stock (May 19)
Rights offering (April 1)
Conversion of convertible bonds (April 1, 1990–March 31, 1991)
Allocation of bonus stock (May 18)
Conversion of convertible bonds (April 1, 1991–March 31, 1992)
Conversion of convertible bonds (April 1, 1993–March 31, 1994)
(first series type I)
67,000
67,000
Preferred stock
(second series type I)
100,000
100,000
Allotment to third parties
(Issue price ¥3,000/capitalized amount ¥1,500)
Allotment to third parties
(Issue price ¥3,000/capitalized amount ¥1,500)
Balance of Outstanding Convertible Bonds
Type and issue date
US$ convertible bonds
January 30, 1989
Yen convertible bonds*
June 26, 1996
Issue
amount
Interest
rate
Maturity
Outstanding
balance at
March 31, 2001
Conversion price
(May 31, 2001)
US$300 million
3.125%
March 31, 2004
US$8,660,000
¥3,606.90
¥100 billion
0.375%
May 31, 2001
¥100 billion
¥1,095.00
* Yen convertible bonds were converted into common stock at May 31, 2001.
211
Formerly The Sakura Bank, Limited
Total Outstanding Shares
March 31, 2001
Common stock
Preferred stock (Series II)
Preferred stock (Series III (Type 2))
Total
Stock exchange listings
4,118,077,946
2,577,000
800,000,000
4,920,654,946
Registered, par value (¥50)
Registered, non par value
Registered, non par value
Common stocks of the Bank had been listed on Tokyo Stock Exchange (First section), Osaka
Securities Exchange (First section), Sapporo Stock Exchange, Frankfurt Stock Exchange, SWX Swiss
Exchange, Paris Bourse, and London Stock Exchange, but were delisted due to merger etc.
Number of Shares, Classified by Type of Shareholders
a. Common Stock
March 31, 2001
Japanese government and local government
Financial institutions
Securities companies
Other institutions
Foreign institutions
[Individuals]
Individuals and others
Total
Less than one unit (shares)
Number of
shareholders
Number of
share units held
6
266
57
5,713
625
[35]
71,938
78,605
/
7,264
1,364,639
117,178
1,459,200
790,115
[119]
360,605
4,099,001
19,076,946
Percentage
of total
0.18%
33.29
2.86
35.60
19.27
[0.00]
8.80
100.00
.0/
Notes: 1. Of 79,008 shares in treasury stock, 79 units are included in ‘individuals and others’ and the remaining 8 shares are included in ‘less than
one unit’.
2. ‘Other institutions’ and ‘less than one unit’ include 33 units and 1,617 shares held by the Securities Custody Association, respectively.
3. One unit consists of 1,000 shares
b. Preferred Stock (Series II)
March 31, 2001
Financial institutions
c. Preferred Stock (Series III (Type 2))
March 31, 2001
Financial institutions
Number of
shareholders
1
Number of
shareholders
1
Number of
share units held
2,577
Number of
share units held
800,000
Percentage
of total
100.00%
Percentage
of total
100.00%
212
Formerly The Sumitomo Bank, Limited
Total Outstanding Shares
March 31, 2001
Common stock
Preferred stock (first series type I)
Preferred stock (second series type I)
Total
June 29, 2001
Common stock
Preferred stock (first series type I)
Preferred stock (second series type I)
Preferred stock (type V)
Preferred stock (type VI)
Total
3,141,062,101
67,000,000
100,000,000
3,308,062,101
5,703,233,046
67,000,000
100,000,000
800,000,000
2,577,000
6,672,810,046
Registered, par value (¥50)
Registered, non par value
Registered, non par value
Registered, par value (¥50)
Registered, non par value
Registered, non par value
Registered, non par value
Registered, non par value
Note: Upon merger, the Bank issued 2,470,846,767 shares of common stock, 800,000,000 shares of preferred stock (type V), and 2,577,000 shares of
preferred stock (type VI) on April 2, 2001. And Yen convertible bonds were converted into 91,324,178 shares of common stock on May 31, 2001.
Stock exchange listings
Tokyo Stock Exchange (First Section)
Osaka Securities Exchange (First Section)
Nagoya Stock Exchange (First Section)
Sapporo Stock Exchange
London Stock Exchange
Number of Shares, Classified by Type of Shareholders
a. Common Stock
March 31, 2001
Japanese government and local government
Financial institutions
Securities companies
Other institutions
Foreign institutions
[Individuals]
Individuals and others
Total
Less than one unit (shares)
Number of
shareholders
Number of
share units held
2
358
50
3,705
730
[24]
45,147
49,992
/
4,108
1,164,676
28,548
1,407,011
345,908
[93]
179,799
3,130,050
11,012,101
Percentage
of total
10.13%
37.21
0.91
44.95
11.05
[0.00]
5.75
100.00%
/
Notes: 1. Of 9,501 shares in treasury stock, 9 units are included in ‘individuals and others’ and the remaining 501 shares are included in ‘less than one
unit.’
2. ‘Other institutions’ and ‘less than one unit’ include 230 units and 3,650 shares held by the Securities Custody Association, respectively.
3. One unit consists of 1,000 shares
b. Preferred Stock (First Series Type I)
March 31, 2001
Financial institutions
c. Preferred Stock (Second Series Type I)
March 31, 2001
Financial institutions
Number of
shareholders
1
Number of
shareholders
1
Number of
share units held
67,000
Number of
share units held
100,000
Percentage
of total
100.00%
Percentage
of total
100.00%
213
Formerly The Sakura Bank, Limited
Number of Shares of Voting Stock
March 31, 2001
Shares without voting rights
Treasury stock
Other
Shares less than one unit
Shares with voting rights
802,577,000
7,518,000
4,091,483,000
19,076,946
Notes: 1. ‘Other’ of ‘shares with voting rights’ includes 33,000 shares held by the Securities Custody Association.
2. ‘Shares less than one unit’ includes 8 shares of the Bank’s treasury stock, 496 shares held by The Minato Bank, Ltd., 357 shares held by Sakura
Mortgage Co., Ltd., 800 shares held by Sakura Friend Securities Co., Ltd., and 1,617 shares held by Securities Custody Association as follows:
Number of Shares of Treasury Stock
March 31, 2001
Holder of treasury stock
The Sakura Bank, Limited
The Minato Bank, Limited
Sakura Mortgage Co., Ltd.
Sakura Friend Securities Co., Ltd.
Total
Number of shares held in the name of
Holder
Others
Total
Percentage of total
shares issued
72,000
6,623,000
487,000
336,000
7,518,000
—
—
—
—
—
72,000
6,623,000
487,000
336,000
7,518,000
0.00%
0.16%
0.01%
0.00%
0.18%
Note: The above figures do not include 7,000 shares held in the Bank’s nominee name. They are included in ‘other’ of ‘shares with voting rights’ in the
schedule above.
214
Formerly The Sumitomo Bank, Limited
Number of Shares of Voting Stock
March 31, 2001
Shares without voting rights
Treasury stock
Other
Shares less than one unit
Shares with voting rights
167,000,000
8,321,000
3,121,729,000
11,012,101
Notes: 1. ‘Other’ of ‘shares with voting rights’ and ‘shares less than one unit’ include 230,000 shares and 3,650 shares held by the Security Custody Asso-
ciation, respectively.
2. ‘Shares less than one unit’ includes 501 shares of the Bank’s treasury stock and cross-holding shares held by the Bank’s consolidated
subsidiaries, as follows:
March 31, 2001
SB Leasing Company, Limited
Sumigin General Finance Company Limited
The Bank of Kansai, Ltd.
The Sumitomo Credit Service Company, Limited
Number of shares held
384
36
179
270
Number of Shares of Treasury Stock
March 31, 2001
Holder of treasury stock
The Sumitomo Bank, Limited
SB Leasing Company, Limited
Sumigin General Finance Company Limited
The Bank of Kansai, Ltd.
Daiwa Securities SB Capital Markets Co. Ltd.
The Sumitomo Credit Service Company, Limited
Total
Number of shares held in the name of
Holder
Others
Total
Percentage of total
shares issued
4,000
2,276,000
1,567,000
1,114,000
2,046,000
1,314,000
8,321,000
—
—
—
—
—
—
—
4,000
2,276,000
1,567,000
1,114,000
2,046,000
1,314,000
8,321,000
0.00%
0.07
0.04
0.03
0.06
0.04
0.26%
Note: The above figures do not include 5,000 shares held in the Bank’s nominee name. They are included in ‘other’ of ‘shares with voting rights’ in the
schedule above.
215
Formerly The Sakura Bank, Limited
Principal Shareholders
a. Common Stock
March 31, 2001
Shareholders
Nippon Life Insurance Company
The Taiyo Mutual Life Insurance Company
Mitsui Mutual Life Insurance Company
Japan Trustee Services Bank, Ltd. (Trust account)
The Chase Manhattan Bank, N.A. London (Standing Proxy:The Fuji Bank, Limited)
Toyota Mortor Corporation
The Nomura Securities Co., Ltd.
The Dai-ichi Mutual Life Insurance Company
State Street Bank and Trust Company (Standing Proxy:The Fuji Bank, Limited)
The Toyo Trust and Banking Co., Ltd. (Trust account)
Mitsui Fudosan Co., Ltd.
The Mitsubishi Trust and Banking Corporation (Trust account)
Morgan Stanley & Co. International Limited (Standing Proxy: Morgan Stanley Dean Witter & Co.)
Mitsui & Co., Ltd.
Composite Trust Trustee The Sakura Trust & Banking Co., Ltd. (Entrust TOSHIBA CORPORATION)
The Tokyo Electric Power Company, Incorporated
Nippon Life Insurance Company (Special account for pensions)
Mitsui Marine and Fire Insurance Co., Ltd
UBS AG London Asia Equities (Standing Proxy: UBS Warburg (Japan) Limited)
The Chuo Mitsui Trust and Banking Company, Limited
The Sakura Bank Employee Shareholders’ Association
Boston Deposit BSDT Treaty Clients Omnibus (Standing Proxy: The Bank of Tokyo–Mitsubishi, Ltd.)
The Dowa Fire & Marine Insurance Co., Ltd
Chase Nominees REBGI Treaty Jasdec Lending (Standing Proxy: The Bank of Tokyo–Mitsubishi, Ltd.)
The Chuo Mitsui Trust and Banking Company, Limited (Pension trust account)
Toray Industries, Inc.
Oji Paper Co.,Ltd.
Nippon Mitsubishi Oil Corporation
Mitsui Chemicals, Inc.
The Chase Manhattan Bank NA London SL Omnibus Account (Standing Proxy: The Fuji Bank, Limited)
b. Preferred Stock (Series II)
March 31, 2001
Shareholder
Sakura Finance (Bermuda) Trust
c. Preferred Stock (Series III) (Type 2)
March 31, 2001
Shareholder
The Resolution and Collection Corporation
216
Number of
shares held
(thousands)
147,758
147,752
127,752
99,921
94,505
89,588
83,290
65,855
64,526
59,855
56,557
54,958
50,579
50,277
48,756
46,107
45,435
45,046
36,840
35,324
33,601
31,862
31,815
31,108
29,263
27,129
27,115
24,363
21,405
21,256
Percentage
of total
shares issued
3.58
3.58
3.10
2.42
2.29
2.17
2.02
1.59
1.56
1.45
1.37
1.33
1.22
1.22
1.18
1.11
1.10
1.09
0.89
0.85
0.81
0.77
0.77
0.75
0.71
0.65
0.65
0.59
0.51
0.51
Number of
shares held
(thousands)
Percentage
of total
shares issued
2,577
100.00%
Number of
shares held
(thousands)
800,000
Percentage
of total
shares issued
100.00%
Formerly The Sumitomo Bank, Limited
Principal Shareholders
a. Common Stock
As of March 31, 2001
Shareholders
Sumitomo Life Insurance Company
Japan Trustee Services Bank, Ltd. (Trust account)
Nippon Life Insurance Company
Matsushita Electric Industrial Co., Ltd.
The Mitsubishi Trust and Banking Corporation (Trust account)
Sanyo Electric Co., Ltd.
Sumitomo Corporation
The Sumitomo Trust and Banking Co., Ltd.
Kubota Corporation
Kajima Corporation
The Sumitomo Marine and Fire Insurance Company, Limited
Takeda Chemical Industries, Ltd.
Sumitomo Chemical Company, Limited
The Taiyo Mutual Life Insurance Co.
Kondo Cotton Spinning Co., Ltd.
Nippon Steel Corporation
The Toyo Trust and Banking Co., Ltd. (Trust account)
Sumitomo Metal Industries, Ltd.
Nippon Sheet Glass Company, Limited
Shionogi & Co., Ltd.
The Kansai Electric Power Company, Incorporated
Mizuho Trust & Banking Co., Ltd. (Trust account)
The Dai-ichi Mutual Life Insurance Company
NEC Corporation
Bridgestone Corporation
Daiwa Securities Group Inc.
Chuo Mitsui Trust and Banking Company, Limited (Tokkin trust trustee)
The Nomura Trust and Banking Co., Ltd. (Investment trust account)
The Chase Manhattan Bank NA London
The Dai-ichi Mutual Life Insurance Company (Special account)
b. Preferred Stock (First Series Type I)
March 31, 2001
Shareholder
The Resolution and Collection Corporation
c. Preferred Stock (Second Series Type I)
March 31, 2001
Shareholder
The Resolution and Collection Corporation
Number of
shares held
(thousands)
149,001
127,500
124,890
103,570
69,997
62,337
52,008
51,352
39,499
39,387
38,802
38,218
33,581
33,558
31,596
31,411
28,333
26,929
24,219
22,911
22,711
22,507
21,735
19,817
19,771
18,769
18,545
17,788
17,751
17,626
Percentage
of total
shares issued
4.74%
4.05
3.97
3.29
2.22
1.98
1.65
1.63
1.25
1.25
1.23
1.21
1.06
1.06
1.00
1.00
0.90
0.85
0.77
0.72
0.72
0.71
0.69
0.63
0.62
0.59
0.59
0.56
0.56
0.56
Number of
shares held
(thousands)
67,000
Number of
shares held
(thousands)
100,000
Percentage
of total
shares issued
100.00%
Percentage
of total
shares issued
100.00%
217
Formerly The Sakura Bank, Limited
Per Share Data
Years ended March 31
Dividends on common share
[Interim dividends on common share]
Net income (loss)
Stockholders’ equity
Payout ratio (%)
2001
2000
¥006.00
[3.00]
17.28
358.43
34.71%
¥006.00
[3.00]
11.24
351.38
53.42%
Yen
1999
¥007.25
[4.25]
(97.62)
343.09
.—%
1998
1997
¥008.50
[4.25]
(62.92)
332.07
.—%
¥008.50
[4.25]
14.10
380.72
60.27%
Notes: 1. Dividends per share (interim dividends per share) are common stock dividends. (Dividends for 2001 is calculated by assuming delivered money
due to merger is in place of year-end dividends.)
2. Net income (loss) per share is computed by deducting preferred dividends (including delivered money due to merger as for the year ended March
31, 2001) from net income (loss), divided by the weighted average number of shares of common stock outstanding during the fiscal year.
3. Stockholders’ equity per share is computed by deducting the number of shares of preferred stock outstanding at fiscal year-end multiplied by the
issue price from shareholders’ equity, divided by the number of shares of common stock outstanding at fiscal year-end.
Common Stock Price Range
Years ended March 31
Highest
Lowest
Highest
Lowest
2001
¥858
477
2000
¥1,045
358
Yen
1999
¥0,404
165
Yen
1998
¥0,975
325
1997
¥1,250
600
March 2001
February 2001
January 2001
December 2000
November 2000
October 2000
¥710
477
¥740
635
¥743
646
¥714
644
¥823
629
¥858
766
Notes: 1. The above figures are stock prices quoted at the Tokyo Stock Exchange (First Section).
2. Preferred stock (Series II) and preferred stock (Series III (Type 2)) is not listed on exchange, nor registered with the Securities Dealers
Association of Japan as trading securities on the over-the-counter market.
218
Formerly The Sumitomo Bank, Limited
Per Share Data
Years ended March 31
Dividends on common share
[Interim dividends on common share]
Net income (loss)
Stockholders’ equity
Payout ratio (%)
2001
2000
¥006.00
[3.00]
16.59
451.35
36.15%
¥006.00
[3.00]
14.41
439.23
41.63%
Yen
1999
¥006.00
[3.00]
(119.11)
428.35
.—%
1998
1997
¥008.50
[4.25]
(197.93)
362.30
.—%
¥008.50
[4.25]
11.24
568.73
75.59%
Notes: 1. Net income (loss) per share is computed by deducting preferred dividends from net income (loss), divided by the weighted average number of
shares of common stock outstanding during the fiscal year.
2. Stockholders’ equity per share is computed by deducting the number of shares of preferred stock outstanding at end of the fiscal year multiplied
by the issue price from stockholders’ equity, divided by the number of shares of common stock outstanding at end of the fiscal year.
Common Stock Price Range
Years ended March 31
Highest
Lowest
Highest
Lowest
2001
¥1,640
867
2000
¥1,902
1,271
Yen
1999
¥1,710
860
Yen
1998
1997
¥1,950
1,100
¥2,260
1,220
March 2001
February 2001
January 2001
December 2000
November 2000
October 2000
¥1,195
867
¥1,248
1,070
¥1,270
1,087
¥1,212
1,100
¥1,385
1,077
¥1,448
1,284
Notes: 1. The above figures are stock prices quoted at the Tokyo Stock Exchange (First Section).
2. Preferred stock (first series type I) and preferred stock (second series type I) are not listed on exchange, nor registered with the Securities
Dealers Association of Japan as trading securities on the over-the-counter market.
219
OTHERS
Formerly The Sakura Bank, Limited
Employees
March 31
Number of employees
Average age (years–months)
Average length of employment (years–months)
Average monthly salary (yen)
2001
2000
1999
1998
1997
13,632
38–7
16–10
¥515,897
14,930
37–11
16–2
¥502,428
16,330
38–0
16–5
¥502,574
17,420
38–0
16–5
¥496,583
18,733
37–5
15–11
¥488,753
Note: Temporary, part-time and overseas local staff are excluded from the above calculations.
Number of Offices
March 31
Domestic network:
Main offices and branches
Sub-branches
Agency
Overseas network:
Branches
Sub-branches
Representative offices
Total
2001
2000
1999
1998
1997
323
32
4
16
2
3
380
381
40
4
18
2
6
451
414
50
7
18
2
12
503
432
56
7
23
2
15
535
439
61
9
24
3
17
553
Note: ‘Main offices and branches’ includes International Business Operations Dept. (2001, 2 branches; 2000, 2 branches; 1999, 2 branches; 1998, 2
branches; 1997, 2 branches) and Specialized deposit account branch (2001, 4 branches: 2000, 2 branches), and ATM administration branch
(2001, 1 branch; 2000, 1 branch).
Automated Service Centers
March 31
Automated service centers
2001
1,485
2000
1,046
1999
504
1998
478
1997
472
220
OTHERS
Formerly The Sumitomo Bank, Limited
Employees
March 31
Number of employees
Average age (years–months)
Average length of employment (years–months)
Average monthly salary (yen)
2001
2000
1999
1998
1997
13,526
37–5
15–5
¥504,168
14,394
36–11
14–11
¥493,991
14,995
37–0
15–2
¥488,834
15,111
37–0
15–2
¥493,658
15,563
36–9
14–11
¥491,301
Note: Temporary, part-time and overseas local staff are excluded from the above calculations.
Number of Offices
March 31
Domestic network:
Main offices and branches
Sub-branches
Agency
Overseas network:
Branches
Sub-branches
Representative offices
Total
2001
2000
1999
1998
1997
270
47
1
17
3
16
354
285
47
1
18
3
17
371
286
52
1
21
4
17
381
305
55
1
37
5
20
423
310
40
1
39
2
25
417
Note: ‘Main offices and branches’ includes specialized deposit account branch (2001, 8 branches; 2000, 8 branches; 1999, 2 branches).
Automated Service Centers
March 31
Automated service centers
2001
000346
2000
463
1999
513
1998
478
1997
445
221
Formerly The Sakura Bank, Limited
Domestic Exchange Transactions
Years ended March 31
2001
2000
Billions of yen
1999
1998
1997
Exchange for remittance
Destined for various parts of the country:
Number of accounts (thousands)
Amount
Received from various parts of the country:
139,818
¥367,882.4
161,329
¥0,330,932.6
165,185
¥0,434,924.7
166,545
¥0,457,657.4
164,287
¥0,433,520.9
Number of accounts (thousands)
Amount
121,137
526,742.4
153,883
558,293.3
155,487
712,307.1
155,844
713,346.2
153,128
659,570.8
Collection
Destined for various parts of the country:
Number of accounts (thousands)
Amount
Received from various parts of the country:
5,103
¥014,212.5
5,542
¥0,14,142.2
6,199
¥0,15,927.2
6,981
¥0,18,739.2
7,165
¥0,18,656.2
Number of accounts (thousands)
Amount
745
2,440.8
765
2,040.3
828
1,901.3
896
2,253.3
951
2,222.2
Total
¥911,278.3
¥905,408.5
¥1,165,060.5
¥1,191,996.3
¥1,113,970.2
Foreign Exchange Transactions
Years ended March 31
Outward exchanges:
Foreign bills sold
Foreign bills bought
Incoming exchanges:
Foreign bills payable
Foreign bills receivable
Total
2001
2000
1999
1998
1997
Millions of U.S. dollars
$385,950
61,227
$0,418,646
58,931
$413,983
62,923
$0,488,918
78,110
$0,457,172
65,812
$454,809
14,190
$0,557,928
16,481
$483,395
16,435
$0,555,470
37,219
$0,560,660
59,033
$916,177
$1,051,988
$976,737
$1,159,719
$1,142,678
Note: The above figures include foreign exchange transactions by overseas branches.
Breakdown of Collateral for Customers’ Liabilities for Acceptances and Guarantees
March 31
Securities
Commercial claims
Commercial goods
Real estate
Other
Subtotal
Guaranteed
Unsecured
Total
222
Billions of yen
2001
2000
1999
¥0,003.2
253.8
6.5
30.5
12.9
¥0,003.0
156.6
4.4
40.1
10.1
¥0,011.2
154.3
5.7
49.7
15.4
¥0,307.0
¥0,214.4
¥0,236.5
396.6
1,933.8
371.6
1,938.1
468.5
2,251.6
¥2,637.6
¥2,524.3
¥2,956.7
Formerly The Sumitomo Bank, Limited
Domestic Exchange Transactions
Years ended March 31
2001
2000
Billions of yen
1999
1998
1997
Exchange for remittance
Destined for various parts of the country:
Number of accounts (thousands)
Amount
Received from various parts of the country:
210,761
¥418,710.3
216,051
¥430,898.0
209,683
¥424,602.4
185,004
¥432,219.3
167,409
¥405,531.6
Number of accounts (thousands)
Amount
120,318
357,069.1
113,405
326,166.3
109,098
350,240.0
107,100
411,147.9
102,541
407,441.1
Collection
Destined for various parts of the country:
Number of accounts (thousands)
Amount
Received from various parts of the country:
2,190
¥005,478.0
2,324
¥005,787.8
2,361
¥006,381.4
2,615
¥007,585.0
2,552
¥007,378.2
Number of accounts (thousands)
Amount
2,233
8,061.4
2,217
7,691.3
2,431
9,129.0
2,535
10,460.6
3,048
9,348.8
Total
¥789,319.0
¥770,543.5
¥790,352.9
¥861,412.8
¥829,699.9
Foreign Exchange Transactions
Years ended March 31
Outward exchanges:
Foreign bills sold
Foreign bills bought
Incoming exchanges:
Foreign bills payable
Foreign bills receivable
Total
2001
2000
1999
1998
1997
Millions of U.S. dollars
$436,562
139,033
$337,735
105,431
$493,705
303,917
$499,041
271,235
$0,542,337
317,368
$316,992
10,044
$902,633
$280,984
7,571
$731,724
$157,285
7,103
$962,011
$201,530
11,399
$0,220,467
14,646
$983,207
$1,094,819
Note: The above figures include foreign exchange transactions by overseas branches.
Breakdown of Collateral for Customers’ Liabilities for Acceptances and Guarantees
March 31
Securities
Commercial claims
Commercial goods
Real estate
Other
Subtotal
Guaranteed
Unsecured
Total
Billions of yen
2001
2000
1999
¥0,001.6
4.1
1.4
21.2
19.7
¥0,002.6
13.4
2.2
19.4
18.2
¥00,01.8
17.3
0.4
32.0
1.8
¥00,48.2
¥00,56.1
¥00,53.5
187.9
3,419.1
831.0
2,036.4
286.8
2,784.1
¥3,655.3
¥2,923.5
¥3,124.5
223
Corporate Data
Organization
Directors, Executive Officers and Auditors
Principal Subsidiaries and Affiliates
International Directory
226
228
230
233
225
Organization
(As of June 30, 2001)
Corporate Staff Unit
Public Relations Dept.
Corporate Citizenship Dept.
Corporate Planning Dept.
Investor Relations Dept.
Financial Research Dept.
Financial Accounting Dept.
Subsidiaries and Affiliates Dept.
Portfolio Management Dept.
Equity Portfolio Management Dept.
Corporate Risk Management Dept.
Market Risk Management Dept.
Risk Management Systems Dept.
Credit Risk Management Dept.
General Affairs Dept.
Kobe General Affairs Dept.
Legal Dept.
Customer Relations Dept.
Human Resources Dept.
Training Institute
Counseling Dept.
Human Resources Development Dept.
Shareholders'
Meeting
Board of
Directors
Management
Committee
Corporate Auditors/
Board of Corporate Auditors
Office of Corporate Auditors
226
Corporate Services Unit
Administrative Services Dept.
Secretariat
IT Planning Dept.
Systems Development Dept.Ⅰ
Systems Development Dept.Ⅱ
International and Market Systems Dept.
Operations Planning Dept.
International and Market Operations Dept.
Settlement and Clearing Services Dept.
e-Business Planning Dept.
Electronic Commerce Banking Dept.
Global Cash Management Dept.
e-Business Patent Dept.
Corporate Research Dept.
Credit Administration Dept.
Operations
Supporting Dept.
Loan Administration
and Operations Dept.
Consumer Loan
Administration and
Operations Dept.
International Business
Operations Dept.
Capital Markets and
Treasury Operations Dept.
Corporate Accounting
Operations Dept.
Internal Audit Unit
Audit Dept.
Audit Dept. for the Americas
Audit Dept. for Europe
Inspection Dept.
Credit Review Dept.
Consumer Banking Unit
Planning Dept., Consumer Banking Unit
Subsidiaries and Affiliates Dept., Consumer Banking Unit
Sales Channel Planning Dept., Consumer Banking Unit
Branch Banking Dept., Consumer Banking Unit
Products and Marketing Dept., Consumer Banking Unit
Private Banking Dept.
Asset Management Services Dept., Consumer Banking Unit
Consumer Business Dept.
Consumer Loan Business Dept.
Investment Products Business Dept., Consumer Banking Unit
Operations and Systems Dept., Consumer Banking Unit
Credit Dept., Consumer Banking Unit
Middle Market Banking Unit
Planning Dept., Middle Market Banking Unit
Operations and Systems Dept., Middle Market Banking Unit
Business Promotion Dept., Middle Market Banking Unit
International Business Promotion Dept., Middle Market Banking Unit
New Business Promotion Dept., Middle Market Banking Unit
Public Institutions Banking Dept.
Kobe Public Institutions Banking Dept.
Business Owner Banking Dept.
Credit Dept.Ⅰ, Middle Market Banking Unit
Credit Dept.Ⅱ, Middle Market Banking Unit
Credit Dept.Ⅲ, Middle Market Banking Unit
Credit Supervision Dept.Ⅰ, Middle Banking Unit
Credit Supervision Dept.Ⅱ, Middle Banking Unit
Corporate Banking Unit
Planning Dept., Corporate Banking Unit
Credit Dept.Ⅰ, Corporate Banking Unit
Credit Dept.Ⅱ, Corporate Banking Unit
Credit Dept.Ⅲ, Corporate Banking Unit
International Banking Unit
Planning Dept., International Banking Unit
Operations and Systems Dept., International Banking Unit
Global Institutional Banking Dept.
Global Investors Services Dept.
Credit Dept., International Banking Unit
Treasury Unit
Planning Dept., Treasury Unit
Treasury Dept.
International Treasury Dept.
Trading Dept.
Treasury Marketing Dept.
Investment Banking Unit
Planning Dept., Investment Banking Unit
Structured Finance Credit Dept.
Asset Management Planning Dept., Investment Banking Unit
Structured Finance Dept.
Financial Solutions Dept., Investment Banking Unit
Derivatives and Financial Engineering Dept.
Syndications Dept.
M&A Advisory Services Dept.
Corporate Finance Services Dept.
Block Consumer Business Office
Branch
Public Institutions Operating Office
Consumer Investment Services Office
Consumer Loan Promotion Office
Call Center
Middle Market Banking Division
Corporate Business Office
Public Institutions Business Office
Business Support Office
Tokyo Corporate Banking DivisionⅠ
Tokyo Corporate Banking DivisionⅡ
Osaka Corporate Banking Division
Nagoya Corporate Banking Division
Corporate Banking Dept.
Asia Pacific Division
Asia Pacific Dept.
The Americas Division
Planning Dept., The Americas Division
Credit Dept., The Americas Division
Europe Division
Planning Dept., Europe Division
Credit Dept., Europe Division
Global Client Business Dept.
Branch/Representative Office in Asia Pacific
Departments of the Americas Division
Departments of Europe Division
e-Business, Media and Telecom Dept.
227
Directors, Executive Officers and Auditors
(As of June 30, 2001)
BOARD OF DIRECTORS
Chairman of the Board
President
Deputy Presidents
Senior Managing Directors
Akishige Okada
Yoshifumi Nishikawa*
Youhei Shiraga*
Akio Asuke*
Hirokazu Ishikawa*
Shunichi Okuyama*
Tsutomu Sakuma*
Hidemitsu Nakao*
Michiyoshi Kuriyama*
Takeharu Nagata*
Hidenori Hiramatsu*
Tadashi Inoue*
Keizo Ogawa*
Masayuki Oku*
Hideharu Kadowaki*
Takemasa Tsukamoto*
Managing Directors
Teisuke Kitayama*
Ryuzo Kodama*
Shigetada Takahashi*
Kenjiro Noda*
Tadashi Hirota*
Mutsuhiko Matsumoto*
Toichiro Mizushima*
Kakuei Miyagi*
Yoshiaki Yamauchi
Yoichiro Yamakawa
Hiroshi Sakuma
Nagayuki Yoshida
Hiroshi Kii
Toyosaburo Hirano
Tomoyuki Watanabe
Gaishi Hiraiwa
Katsuya Onishi
Josei Itoh
Yasutaka Okamura
Directors
CORPORATE AUDITORS
Corporate Auditors
228
General Affairs Dept., Kobe General Affairs Dept., Legal Dept.,
Customer Relations Dept., Human Resources Dept., Human
Resources Development Dept., Administrative Services Dept.
and Treasury Unit
Deputy President stationed at Osaka and Investment Banking Unit
Corporate Banking Unit
International Banking Unit
Human Resources Dept. and Human Resources Development Dept.
Consumer Banking Unit
Middle Market Banking Unit
Corporate Research Dept., Credit Administration Dept., Credit
Dept. II, Corporate Banking Unit and Credit Dept. III, Corporate
Banking Unit
Audit Dept., Audit Dept. for the Americas, Audit Dept. for Europe,
Inspection Dept. and Credit Review Dept.
Middle Market Banking Unit (stationed at Osaka)
Middle Market Banking Unit (stationed at Kobe)
Public Relations Dept., Corporate Planning Dept., Financial
Accounting Dept., Subsidiaries and Affiliates Dept. and e-Business
Planning Dept.
Portfolio Management Dept., Corporate Risk Management Dept.
and Credit Risk Management Dept.
IT Planning Dept., Systems Development Dept. I, Systems
Development Dept. II, International and Market Systems Dept.,
Operations Planning Dept. and Electronic Commerce Banking
Dept.
Corporate Planning Dept., Financial Accounting Dept. and
Subsidiaries and Affiliates Dept.
Head of The Americas Division
Credit Dept. I, Middle Market Banking Unit and Credit Supervision
Dept. II, Middle Market Banking Unit (Tokyo)
Head of Tokyo Corporate Banking Division I
Credit Dept. II, Middle Market Banking Unit and Credit Supervision
Dept. I, Middle Market Banking Unit
Consumer Banking Unit
Planning Dept., Middle Market Banking Unit, Business Promotion
Dept., Middle Market Banking Unit, Public Institutions Banking
Dept., Kobe Public Institutions Banking Dept. and Business Owner
Banking Dept.
Head of Tokyo Middle Market Banking Division III
*Executive Officers
EXECUTIVE OFFICERS
Managing Directors
Directors
Ryoji Miura
Kouichi Yanagimura
Jumpei Ishii
Koji Ishida
Takao Umino
Morio Kusunoki
Kiyoshi Shibuya
Koichi Tsukihara
Shinpei Nihei
Masahide Hirasawa
Mitsuaki Yahagi
Yasufumi Kitamoto
Shiro Kawajiri
Yasuyuki Kimoto
Daisuke Saji
Hideaki Shigi
Kuniaki Tsuyada
Kenjiro Nakano
Shigeru Nishiyama
Koichi Maeda
Hitoshi Yoshimatsu
Shigenobu Aikyo
Hitoshi Inuga
Osamu Endo
Sadao Kobayashi
Jun Suzuki
Shuntaro Higashi
Kengo Miyauchi
Hiromichi Miyauchi
Kozo Yoneda
Shigeo Imafuku
Yusaku Omori
Nobuyuki Kameoka
Hiroaki Shukuzawa
Hirosumi Tsusue
Akira Matsumoto
Fuminori Yoshitake
Kohei Katsukawa
Kazuhisa Kishikawa
Hiroki Nishio
Hajime Yamashita
Yoshihiro Yoshimura
Head of Tokyo Corporate Banking Division II
General Manager, Human Resources Dept.
Head of Tokyo Middle Market Banking Division V
General Manager, Corporate Planning Dept.
Deputy Head of The Americas Division
Credit Dept. III, Middle Market Banking Unit, Credit Supervision
Dept. II (Osaka), Middle Market Banking Unit
Credit Dept. III, Corporate Banking Unit,
General Manager, Credit Dept. III, Corporate Banking Unit
Head of Osaka Corporate Banking Division
Head of Tokyo Middle Market Banking Division IV
General Manager, General Affairs Dept.
Investment Banking Unit
General Manager, Credit Risk Management Dept.
IT Planning Dept., Systems Development Dept. I, Systems
Development Dept. II, International and Market Systems Dept.
and Operations Planning Dept.
Head of Europe Division
Head of Tokyo Middle Market Banking Division II
Head of Kanagawa & Tokai Middle Market Banking Division
Head of Tokyo Middle Market Banking Division I
General Manager, Planning Dept., Investment Banking Unit
Credit Dept. II, Corporate Banking Unit
General Manager, Tokyo Corporate Banking Dept. X
General Manager, Singapore Branch
General Manager, Planning Dept., Middle Market Banking Unit
Head of Kobe Middle Market Banking Division
Head of Nagoya Corporate Banking Division
Head of Asia Pacific Division
General Manager, Tokyo Corporate Banking Dept. VII
General Manager, Planning Dept., International Banking Unit
General Manager, Credit Dept. I, Middle Market Banking Unit
Head of Osaka Middle Market Banking Division I
General Manager, Tokyo Corporate Banking Dept. II
General Manager, Credit Dept. II, Corporate Banking Unit
General Manager, Credit Review Dept.
General Manager, Credit Dept. I, Corporate Banking Unit
General Manager, Planning Dept., Treasury Unit
General Manager, Tokyo Corporate Banking Dept. III
General Manager, Audit Dept.
General Manager, Business Promotion Dept., Middle Market
Banking Unit
Head of Osaka Middle Market Banking Division II
General Manager, Planning Dept., Consumer Banking Unit
General Manager, Planning Dept., Corporate Banking Unit
Head of Regional Cities Corporate Banking Division
General Manager, Bangkok Branch, Chonburi Branch and Ayudhya
Branch
229
Principal Subsidiaries and Affiliates
(As of July 1, 2001)
DOMESTIC
Company Name
Principal Subsidiaries
SMBC Business Service Co., Ltd.
SMBC International Business Co., Ltd.
SMBC Property Research Service Co., Ltd.
SMBC Green Service Co., Ltd.
SMBC International Operations Co., Ltd.
SMBC Center Service Co., Ltd.
SMBC Delivery Service Co., Ltd.
SMBC Consumer Loan Operations Co., Ltd.
SMBC Loan Adviser Co., Ltd.
SMBC Learning Support Co., Ltd.
Sakura Staff Service Co., Ltd. (Note 1)
IZUMI OFFICE SERVICE CO., LTD. (Note 1)
Sakura Office Service Co., Ltd. (Note 1)
Issued
Capital
Percentage of Parent
(Millions of yen) Company’s Ownership*
Established
Main Business
40
20
30
30
40
100
30
30
10
10
30
30
30
100
100
100
100
100
100
100
100
100
100
100
100
100
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
September 24, 1976 Banking clerical work
September 28, 1983 Banking clerical work
February 1, 1984
Banking clerical work
March 15, 1990
Banking clerical work
December 21, 1994
Banking clerical work
October 16, 1995
Banking clerical work
January 31, 1996
Banking clerical work
November 7, 1997
Banking clerical work
April 1, 1998
Consulting and agency services for consumer
loans
May 27, 1998
Seminar organizer
November 24, 1972
Temporary manpower service
July 15, 1982
Temporary manpower service
January 7, 1985
Temporary manpower service
October 3, 1994
Disposal of real estate collateral
October 7, 1994
Disposal of real estate collateral
June 6, 1996
Commercial banking
March 11, 1999
Servicer
August 16, 2000
Factoring
Sakura Total Maintenance Co., Ltd. (Note 2)
300
100
Sumigin Total Maintenance Company, Limited (Note 2)
300
THE WAKASHIO BANK, LTD.
SMBC Business Servicing Co., Ltd.
Sakura Factors Co., Ltd.
20,831
500
3,000
100
100
100
100
Sakura Guarantee Co., Ltd.
15,220
99.13
(0.45)
July 14, 1976
Credit guarantee
SAKURA INVESTMENT MANAGEMENT CO., LTD.
1,280
96.10
(0)
September 27, 1993 Investment advisory and investment trust
management
Sumigin General Finance Company, Limited
71,705
80.68 (18.46) December 5, 1972
Mortgage securities, factoring and loans
The Sakura Loan Partner, Limited (Note 3)
10,000
70
(0)
June 8, 2000
Loans
SAKURA CARD CO., Ltd.
7,438
68.25 (27.25) February 23, 1983
Credit card services
The Japan Net Bank, Limited
20,000
60
(0)
September 19, 2000 Commercial banking via Internet
The Bank of Kansai, Ltd.
THE MINATO BANK, LTD.
32,500
49.98 (18.98)
July 1, 1922
Commercial banking
24,779
48.54
(1.76) September 6, 1949
Commercial banking
Sumitomo Mitsui Card Company, Limited
Mitsui Finance Service Co., Ltd.
4,115
1,100
46.88 (34.11) December 26, 1967 Credit card services
43.63 (34.54) December 22, 1979 Collecting agent and factoring
Sakura Finance Service Co., Ltd.
200
39.98 (10.47)
July 12, 1979
Collecting agent and factoring
SMBC Capital Co., Ltd.
2,500
39.80 (60.20) August 1, 1995
Venture capital
Sakura Friend Securities Co., Ltd.
26,139
37.47
(6.27) April 20, 1932
Securities
SB Leasing Company, Limited (Note 4)
30,100
37.48 (47.67) September 2, 1968
Leasing
Sakura Mortgage Co., Ltd.
18,182
29.45 (10.68) October 14, 1983
Mortgage securities
The Japan Research Institute, Limited
Sakura KCS Corporation
Sakura Information Systems Co., Ltd.
SUMIGIN GUARANTEE COMPANY, LIMITED
2,000
2,054
600
350
5
5
5
5
(47.72) February 20, 1969
Economic research, system engineering, data
processing and management consulting
(47.89) March 29, 1969
System engineering and data processing
(64.46) November 29, 1972
System engineering and data processing
(75)
June 30, 1984
Credit guarantee
SMBC Consulting Co., Ltd.
1,100
4.54 (77.27) May 1, 1981
Management consulting
* ( ) indicates the percentage of ownership by subsidiaries and affiliated companies excluding the parent company.
230
Issued
Capital
Percentage of Parent
Company Name
(Millions of yen) Company’s Ownership*
Established
Main Business
SMBC Property Management Service Co., Ltd.
SMBC Loan Servicer Co., Ltd.
SAKURA LEASING CO., LTD.
Principal Affiliates
12
500
208
0
0
0
(100)
(100)
(100)
January 23, 1998
Management of real estate for rent
July 28, 1999
March 23, 1988
Servicer
Leasing
Daiwa Securities SMBC Co. Ltd.
205,600
40
(0)
February 5, 1999
Wholesale securities
Daiwa SB Investments Ltd.
2,000
30.39 (13.57) April 1, 1999
Investment advisory and investment trust
Japan Pension Navigator Co., Ltd.
2,500
30
(0)
September 21, 2000 Operation and administration of defined
contribution pension plans
DLJdirect SFG Securities Inc.
3,000
21.25
(0)
March 24, 1999
Securities via Internet
Meiko National Securities Co., Ltd.
27,270
19.86
(7.51) March 2, 1948
Securities
QUOQ Inc.
1,000
5
(34.85) April 5, 1978
Purchase of monetary assets and credit
guarantee
Notes: 1. Sakura Staff Service Co., Ltd., IZUMI OFFICE SERVICE CO., LTD., and Sakura Office Service Co., Ltd., will merge into SMBC Staff Services Co., Ltd., in
October 2001.
2. Sakura Total Maintenance Co., Ltd., and Sumigin Total Maintenance Company, Limited, will merge into SMBC Total Maintenance Co., Ltd., in August 2001.
3. The Sakura Loan Partner, Limited, will change its name to At-Loan Co., Ltd., in August 2001.
4. SB Leasing Company, Limited, will change its name to SMBC Leasing Company Limited, in September 2001.
OVERSEAS
Company Name
Principal Subsidiaries
Country
Issued Capital
Percentage of Parent
Company’s Ownership*
Established
Main Business
Sumitomo Mitsui Finance Australia Limited Australia
A$62.5 million 100
(0)
June 29, 1984
Finance
PT Bank Sumitomo Mitsui Indonesia
Indonesia Rp1,502.4 billion
97.63 (0)
August 22, 1989
Commercial banking
SMBC Capital India Limited
Sakura Finance Hong Kong Limited
Sakura Finance Asia Limited
India
P.R.C.
P.R.C.
Rs230 million
75
US$21,000 100
US$65.5 million 100
Sakura Finance Australia Limited
Australia
A$54 million 100
Sakura Merchant Bank (Singapore) Limited Singapore
S$4 million 100
(0)
(0)
(0)
(0)
(0)
October 21, 1995
Leasing
July 25, 1973
Finance
October 17, 1977
Finance
March 27, 1986
April 18, 1990
Finance
Finance
Thai Sakura Finance Company
Thai Sakura Securities Company
Bangkok SMBC Systems Ltd.
Thailand
Thailand
Thailand
B150 million
99.99 (0)
January 18, 1972
Finance
B195 million
99.99 (0)
March 1, 2000
Securities
B20 million
10
(36)
January 11, 1991
Development and sales of software,
and computation
SMBC Management Service Co., Ltd.
Thailand
B64 million
SBCS Co., Ltd.
SMSB
Thailand
Thailand
B140 million
B64 million
SB Leasing (Singapore) Pte. Ltd.
Singapore
S$7.5 million
Sumitomo Mitsui Finance Australia
(Securities) Limited
Australia
A$100,000
SB Leasing (Hong Kong) Limited
Hong Kong
HK$70 million
SB Leasing (Thailand) Co., Ltd.
SB Leasing (Guangzhou) Co., Ltd.
Thailand
P.R.C.
B60 million
US$10 million
SB Leasing (Malaysia) Sdn. Bhd.
Malaysia
MYR250,000
10
10
10
0
0
0
0
0
0
Manufacturers Bank
U.S.A.
US$80.8 million 100
Sumitomo Mitsui Banking Corporation
of Canada
Canada
C$121.87 million 100
(90)
(90)
(90)
(100)
(100)
November 28, 1996 Consulting
March 2, 1989
Consulting
August 1, 2000
Consulting
May 7, 1980
Leasing
April 29, 1987
Securities
(100)
September 26, 1989 Leasing
(49)
February 28, 1996
Leasing
(100)
September 26, 1996 Leasing
(48.99) November 26, 1996 Leasing
(0)
(0)
June 26, 1962
Commercial banking
April 1, 2001
Commercial banking
* ( ) indicates the percentage of ownership by subsidiaries and affiliated companies excluding the parent company.
231
Company Name
Country
Issued Capital
Percentage of Parent
Company’s Ownership*
Established
Main Business
Banco Sumitomo Mitsui Brasileiro S.A.
Brazil
$R116.3 million 100
(0)
October 6, 1958
Commercial banking
SMBC Finance (Bermuda) Limited
Bermuda
US$12,000 100
SMBC Capital Markets, Inc
SMBC Leasing and Finance, Inc.
SMBC Securities, Inc.
SMBC Financial Services, Inc.
U.S.A.
U.S.A.
U.S.A.
U.S.A.
SFVI Limited
Sakura Preferred Capital (Cayman),
Limited
Sumitomo Finance (Asia) Limited
British Virgin
Islands
British West
Indies
British West
Indies
US$100
99.90 (0.10) December 4, 1986
Investments and derivatives
US$1,620
97.84 (2.16) November 9, 1990
Leasing
US$100
99.90 (0.10) August 8, 1990
Securities
US$300 100
US$300 100
(0)
(0)
(0)
August 8, 1990
Investments
May 10, 1985
Investments
July 30, 1997
Investments
¥10 million 100
(0)
November 12, 1998 Long- and mid-term finance
US$35 million 100
(0)
September 26, 1973 Investments
Sakura Capital Funding (Cayman) Limited British West
US$100,000 100
(0)
July 15, 1992
Long- and mid-term finance
Sakura Finance (Cayman) Limited
Indies
British West
Indies
US$100,000 100
(0)
February 11, 1991
Long- and mid-term finance
Sumitomo Mitsui Finance Dublin Limited
Ireland
US$12 million 100
September 29, 1989 Finance
US$297 million 100
April 18, 1995
US$300 million
0
(100)
April 18, 1995
Derivatives
Derivatives
(0)
(0)
SMBC Capital Markets Limited
SMBC Derivative Products Limited
Sakura Finance International Limited
Sakura Trust International Limited
Sumitomo Finance International plc
SMBC International Finance N.V.
U.K.
U.K.
U.K.
U.K.
U.K.
Netherlands
Antilles
£100 million 100
£250,000 100
£200 million 100
US$200,000 100
Sumitomo Mitsui Finanz (Deutschland) GmbH Germany
DM50,000 100
Submarine Curaçao N.V.
Netherlands
US$17,000
40
(0)
(0)
(0)
(0)
(0)
(0)
September 13, 1973 Securities
May 25, 1984
Trustee business and fiscal agency business
July 1, 1991
Investments
June 25, 1990
Loans
June 14, 1985
June 26, 1996
Leasing
Finance
Principal Affiliates
P.T. Exim SB Leasing
Indonesia
Rp50.0 billion
SMBC Metro Investment Corp.
Philippines
P600 million
P.T. Perjahl Leasing Indonesia
Indonesia Rp25,001 million
P.R.C.
US$5 million
10
40
25
25
(40)
March 16, 1985
Leasing
(0)
(0)
(0)
August 9, 1995
Investments and loans
August 28, 1975
Leasing
September 25, 1985 Leasing
China United International Leasing
Co., Ltd.
China International Finance Company
Limited (Shenzhen)
Bangkok SMBC Leasing Co., Ltd.
Bangkok SMBC Consulting Company
Limited
P.R.C.
Y100 million
25
(0)
December 8, 1986
Loans
Thailand
Thailand
B60 million
B5 million
10
10
(30)
(35)
July 16, 1987
Leasing
April 21, 1997
Investments and consulting
* ( ) indicates the percentage of ownership by subsidiaries and affiliated companies excluding the parent company.
232
International Directory
(As of July 2, 2001)
ASIA, OCEANIA
Branches and Representative
Offices
Hong Kong Branch
7th, 8th Floor, One International Finance
Centre, 1 Harbour View Street, Central,
Hong Kong Special Administrative Region,
The People’s Republic of China
Tel: 852 (2206) 2000
Fax: 852 (2206) 2888
Shanghai Branch
30F, HSBC Tower, 101 Yin Cheng East
Road, Pudong New Area, Shanghai,
The People’s Republic of China
Tel: 86 (21) 6841-5000
Fax: 86 (21) 6841-0144
Tianjin Branch
Room No.1210,Tianjin International
Building, No.75 Nan Jing Lu,Tianjin,
The People’s Republic of China
Tel: 86 (22) 2330-3334
Fax: 86 (22) 2331-3834
Guangzhou Branch
31F, Office Tower, CITIC Plaza,
233 Tianhe North Road, Guangzhou,
The People’s Republic of China
Tel: 86 (20) 8752-0168
Fax: 86 (20) 8752-0672
Yangpu Branch
Yangpu Land Development Co., Ltd. Office,
Yangpu Economic Development Zone,
Hainan, The People’s Republic of China
Tel: 86 (890) 882-2701
Fax: 86 (890) 882-2706
Suzhou Branch
10th Floor-D, Kings Tower, 12 Shishan
Road, Suzhou New District, Suzhou,
Jiangsu, The People’s Republic of China
Tel: 86 (512) 825-8205
Fax: 86 (512) 825-6121
General Representative Office in China
2902, Jing Guang Centre, Hujialou,
Chaoyang District, Beijing,
The People’s Republic of China
Tel: 86 (10) 6597-3351
Fax: 86 (10) 6597-3002
Labuan Branch
Level 12 (B&C), Main Office Tower,
Financial Park Labuan, Jalan Merdeka,
87000 Labuan, Federal Territory, Malaysia
Tel: 60 (87) 410955
Fax: 60 (87) 410959
Dalian Representative Office
Room No. 703, Dalian Civil Aviation Hotel,
143 Zhong Shan Lu, Dalian,
The People’s Republic of China
Tel: 86 (411) 363-7611
Fax: 86 (411) 363-7615
Labuan Branch Kuala Lumpur
Marketing Office
Letter Box No. 25, 29th Floor,
UBN Tower, 10, Jalan P. Ramlee,
50250 Kuala Lumpur, Malaysia
Tel: 60 (3) 2026-8392
Fax: 60 (3) 2026-8395
Chongqing Representative Office
3F, Holiday Inn Yangtze Chongqing,
15 Nan Ping Bei Lu, Chongqing,
The People’s Republic of China
Tel: 86 (23) 6280-3394
Fax: 86 (23) 6280-3748
Shenyang Representative Office
Room No. 606, Gloria Plaza Hotel
Shenyang, No. 32 Yingbin Street,
Shenhe District, Shenyang,
The People’s Republic of China
Tel: 86 (24) 2252-8310
Fax: 86 (24) 2252-8769
Taipei Representative Office
Area B, 11th Floor Hung Kuo Building,
167 Tun Hua North Road, Taipei, Taiwan
Tel: 886 (2) 2719-1911
Fax: 886 (2) 2712-0439
Seoul Branch
Young Poong Bldg. 7F, 33, Seorin-Dong,
Chongro-ku, Seoul, 110-752, Korea
Tel: 82 (2) 732-1801
Fax: 82 (2) 399-6330
Singapore Branch
3 Temasek Avenue, #06-01, Centennial
Tower, Singapore 039190, Singapore
Tel: 65-882-0000/0001
Fax: 65-887-0220/0330
Kuala Lumpur Representative Office
Letter Box No. 25, 29th Floor,
UBN Tower, 10, Jalan P. Ramlee,
50250 Kuala Lumpur, Malaysia
Tel: 60 (3) 2026-8392
Fax: 60 (3) 2026-8395
Jakarta Representative Office
Summitmas II, 8th Floor, JI. Jendral.
Sudirman Kav. 61-62, Jakarta 12190,
Indonesia
Tel: 62 (21) 525-1733
Fax: 62 (21) 525-1770
Ho Chi Minh Representative Office
Unit C, 4th Floor, OSIC Building,
8 Nguyen Hue Street, District 1,
Ho Chi Minh City, Vietnam
Tel: 84 (8) 8231244
Fax: 84 (8) 8231241
Yangon Representative Office
Room No. 603-604, 6th Floor,
FMI Centre, 380 Bogyoke Aung San Street,
Yangon, Myanmar
Tel: 95 (1) 248060
Fax: 95 (1) 248061
Bangkok Branch
Boon-Mitr Building, 138 Silom Road,
Bangkok 10500, Thailand
Tel: 66 (2) 353-8000
Fax: 66 (2) 353-8100
233
Ayudhya Branch
3rd Floor, Bank of Asia Building,
5-255, Pailing, Ayudhya District,
Ayudhya Province, Thailand
Tel: 66 (35) 245842
Fax: 66 (35) 212547
Chonburi Branch
6th Floor, Bangkok Bank Building,
98, Sukhumvit Road, Sriracha District,
Chonburi Province, Thailand
Tel: 66 (38) 770584~7
Fax: 66 (38) 770588
Manila Representative Office
20th Floor, Rufino Pacific Tower,
6784 Ayala Avenue, Makati City,
Metro Manila, The Philippines
Tel: 63 (2) 841-0098/9
Fax: 63 (2) 811-0877
Mumbai Branch
15th Floor, Jolly Maker Chambers No. 2,
225, Nariman Point, Mumbai 400021, India
Tel: 91 (22) 288-0025
Fax: 91 (22) 288-0026
New Delhi Branch
Dr. Gopal Das Bhawan, Ground Floor,
28 Barakhamba Road, New Delhi
110001, India
Tel: 91 (11) 373-7637~41
Fax: 91 (11) 373-7642
Subsidiaries
Sumitomo Mitsui Finance Australia
Limited
Level 40, The Chifley Tower 2, Chifley
Square, Sydney, NSW 2000, Australia
Tel: 61 (2) 9376-1800
Fax: 61 (2) 9376-1863
PT Bank Sumitomo Mitsui Indonesia
Summitmas II, 10th Floor JI. Jendral
Sudirman Kav. 61-62, Jakarta 12190,
Indonesia
Tel: 62 (21) 522-7011
Fax: 62 (21) 522-7022
SMBC Capital India Limited
21, Mittal Chambers, 228 Nariman Point,
Mumbai-400021, India
Tel: 91 (22) 288-4361
Fax: 91 (22) 288-4367
SMBC Metro Investment Corp.
20th Floor, Rufino Pacific Tower, 6784
Ayala Avenue, Makati City, Metro Manila,
The Philippines
Tel: 63 (2) 811-0845~52
Fax: 63 (2) 811-0876~77
Sakura Finance Hong Kong Limited
Level 24, One Pacific Place,
88 Queensway, Hong Kong
Sakura Finance Asia Limited
Level 24, One Pacific Place,
88 Queensway, Hong Kong
Tel: 852 (2864) 9300
Fax: 852 (2861) 2316
Sakura Finance Australia Limited
Level 40, The Chifley Tower 2, Chifley
Square, Sydney, NSW 2000, Australia
Sakura Merchant Bank (Singapore)
Limited
3 Temasek Avenue, #06-01 Centennial
Tower, Singapore 039190, Singapore
Thai Sakura Finance Company
14th Floor, Ramaland Building, 952 Rama
IV Road, Bangrak, Bangkok 10500,
Thailand
Tel: 66 (2) 632-9610
Fax: 66 (2) 632-9611
Thai Sakura Securities Company
12th Floor, Ramaland Building, 952 Rama
IV Road, Bangrak, Bangkok 10500,
Thailand
P.T. Perjahl Leasing Indonesia
Mid Plaza Building LT 9, JI. Jendral
Sudirman Kav. 10-11, Jakarta 10220,
Indonesia
Tel: 62 (21) 570-6221, 6225
Fax: 62 (21) 570-6199
China United International Leasing
Co., Ltd.
Room 3303, Office Tower, CITIC Plaza,
233 Tianhe North Road, Guangzhou,
The People’s Republic of China
Tel: 86 (20) 8752-0177
Fax: 86 (20) 8752-0399
China International Finance Company
Limited (Shenzhen)
33F International Financial Building,
23 Jian She Road, Shenzhen,
The People’s Republic of China
Tel: 86 (755) 225-1059
Fax: 86 (755) 223-7566
Bangkok SMBC Leasing Co., Ltd.
19th Fl. Sathorn City Tower, 175 South
Sathorn Road, Bangkok, Thailand
Tel: 66 (2) 679-6161
Fax: 66 (2) 679-6160
Bangkok SMBC Systems Ltd.
19th Floor, Q, House Sathorn Building, 11
South Sathorn Road, Bangkok, Thailand
Tel: 66 (2) 679-1878~80
Fax: 66 (2) 679-1882
SMBC Management Service Co., Ltd.
7th Floor Unit B, Boon-Mitr Building,
138 Silom Road, Suriyawongse, Bangrak,
Bangkok 10500, Thailand
Tel: 66 (2) 632-9610
Fax: 66 (2) 632-9611
Bangkok SMBC Consulting Company
Limited
11th Floor, Ramaland Building, 952 Rama
IV Road, Bangrak, Bangkok 10500,
Thailand
Tel: 66 (2) 632-9210
SBCS Co., Ltd.
7th Floor Unit A3 and B5-6, Boon-Mitr
Building, 138 Silom Road, Suriyawongse,
Bangrak, Bangkok 10500, Thailand
Tel: 66 (2) 237-6295~8
Fax: 66 (2) 237-6299
234
AMERICAS
Branches and Representative
Offices
New York Branch
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-4000
Fax: 1 (212) 593-9522
Cayman Branch
P.O. Box 694, Edward Street, George
Town, Grand Cayman, Cayman Islands
Chicago Branch
Sears Tower, Suite 4010, 233 South
Wacker Drive, Chicago, IL 60606, U.S.A.
Tel: 1 (312) 876-0525
Fax: 1 (312) 876-6436
Los Angeles Branch
777 South Figueroa Street, Suite 2600,
Los Angeles, CA 90017, U.S.A.
Tel: 1 (213) 955-0800
Fax: 1 (213) 623-6832
San Francisco Branch
555 California Street, Suite 3350,
San Francisco, CA 94104, U.S.A.
Tel: 1 (415) 616-3000
Fax: 1 (415) 397-1475
Seattle Representative Office
1201 Third Avenue, Suite 5320,
Seattle, WA 98101, U.S.A.
Tel: 1 (206) 625-1010
Fax: 1 (206) 623-8551
Subsidiaries
Manufacturers Bank
515 South Figueroa Street, Los Angeles,
CA 90071, U.S.A.
Tel: 1 (213) 489-6200
Fax: 1 (213) 489-6254
SMSB
7th Floor Unit B6, Boon-Mitr Building,
138 Silom Road, Suriyawongse, Bangrak,
Bangkok 10500, Thailand
SB Leasing (Singapore) Pte. Ltd.
1 Shenton Way, #19-05, Singapore
068803, Singapore
Tel: 65-224-2955
Fax: 65-225-3570
Sumitomo Mitsui Finance Australia
(Securities) Limited
Level 40, The Chifley Tower 2, Chifley
Square, Sydney, NSW 2000, Australia
SB Leasing (Hong Kong) Limited
21st Floor, World-wide House, 2104B,
19 Des Voeux Road, Central, Hong Kong
Tel: 852 (2523) 4155
Fax: 852 (2845) 9246
SB Leasing (Thailand) Co., Ltd.
19th Floor, Ramaland Building, 952 Rama
IV Road, Suriyawong, Bangrak, Bangkok
10500,
Thailand
Tel: 66 (2) 632-9250
Fax: 66 (2) 632-9258
SB Leasing (Guangzhou) Co., Ltd.
Room 1211-1212, Metro Plaza, 183, Tian
He Bei Lu, Guangzhou,
The People’s Republic of China
Tel: 86 (20) 8755-0021
Fax: 86 (20) 8755-0422
SB Leasing (Malaysia) Sdn. Bhd.
Letter Box No.58, 11th Floor,
UBN Tower, 10 Jalan P. Ramlee,
50250 Kuala Lumpur, Malaysia
Tel: 60 (3) 2026-2619
Fax: 60 (3) 2026-2627
SMBC Capital Markets Limited
Hong Kong Branch
7th, 8th Floor, One International Finance
Centre, 1 Harbour View Street, Central,
Hong Kong Special Administrative Region,
The People’s Republic of China
Tel: 852 (2532) 8500
Fax: 852 (2532) 8505
Sumitomo Mitsui Banking Corporation
of Canada
Ernst & Young Tower, Suite 1400,
P.O. Box 172, Toronto Dominion Centre,
Toronto, Ontario M5K 1H6, Canada
Tel: 1 (416) 368-4766
Fax: 1 (416) 367-3565
Banco Sumitomo Mitsui Brasileiro
S.A.
Av. Paulista, 37-12˚ andar Paraiso,
São Paulo, Brazil
Tel: 55 (11) 3178-8000
Fax: 55 (11) 289-1668
SMBC Capital Markets, Inc.
277 Park Avenue, New York
NY 10172, U.S.A.
Tel: 1 (212) 224-5000
Fax: 1 (212) 224-5111
SMBC Leasing and Finance, Inc.
277 Park Avenue, New York
NY 10172, U.S.A.
Tel: 1 (212) 224-5200
Fax: 1 (212) 224-5222
SMBC Securities, Inc.
277 Park Avenue, New York
NY 10172, U.S.A.
Tel: 1 (212) 224-5300
Fax: 1 (212) 224-5333
235
Sumitomo Finance International plc
Temple Court, 11 Queen Victoria Street,
London EC4N 4UQ, U.K.
Tel: 44 (20) 7842-3000
Fax: 44 (20) 7842-3090
Sumitomo Mitsui Finanz
(Deutschland) GmbH
Prinzenalee 7, 40549 Düsseldorf,
Federal Republic of Germany
Principal Affiliate
P.T. Exim SB Leasing
Summitmas I, 8th Floor, JI. Jend.
Sudirman Kav. 61-62, Jakarta 12069,
Indonesia
Tel: 62 (21) 520-1265
Fax: 62 (21) 520-0154
EUROPE, MIDDLE-EAST, AFRICA
Branches and Representative
Offices
London Branch
Temple Court, 11 Queen Victoria Street,
London EC4N 4TA, U.K.
Tel: 44 (20) 7786-1000
Fax: 44 (20) 7236-0049
Düsseldorf Branch
Prinzenallee 7, 40549 Düsseldorf,
Federal Republic of Germany
Tel: 49 (211) 3619223
Fax: 49 (211) 3619236
Brussels Branch
Avenue des Arts, 58, Bte. 18,
1000 Brussels, Belgium
Tel: 32 (2) 551-5000
Fax: 32 (2) 513-4100
Paris Branch
20, Rue de la Ville l’Evêque,
75008 Paris, France
Tel: 33 (1) 44 (71) 40-00
Fax: 33 (1) 44 (71) 40-50
Madrid Representative Office
Serrano 16, 28001 Madrid, Spain
Tel: 34 (91) 576-6196
Fax: 34 (91) 577-7525
Bahrain Representative Office
No. 406 & 407 (Entrance 3, 4th Floor)
Manama Centre, Government Road,
Manama, State of Bahrain
Tel: 973 223211
Fax: 973 224424
Tehran Representative Office
4th Floor, 80 Nezami Gangavi Street,
Vali-e-Asr Avenue, Tehran 14348,
Islamic Republic of Iran
Tel: 98 (21) 879-4586
Fax: 98 (21) 879-4569
Tashkent Representative Office
International Banking and
Finance Center 1, Turab Tura Street,
700003, Tashkent, Uzbekistan
236
Cairo Representative Office
12th Floor, Nile Tower Building,
21-23 Giza Street, Giza, Cairo, Arab
Republic of Egypt
Tel: 20 (2) 570-3644
Fax: 20 (2) 570-3655
Johannesburg Representative Office
Suite No. 2, Ground Floor, Gleneagles
Building, Fairway Office Park, 52
Grosvenor Road, Bryanston, Sandton,
South Africa (Postal address: Private Bag
x134 Bryanston 2021, South Africa)
Tel: 27 (11) 706-8675
Fax: 27 (11) 706-4927
Subsidiaries
Sumitomo Mitsui Finance Dublin
Limited
La Touche House, International Finance
Services Centre, Custom House Docks,
Dublin 1, Ireland
Tel: 353 (1) 670-0066
Fax: 353 (1) 670-0353
SMBC Capital Markets Limited
Temple Court, 11 Queen Victoria Street,
London EC4N 4TA, U.K.
Tel: 44 (20) 7786-1400
Fax: 44 (20) 7248-5905
SMBC Derivative Products Limited
Temple Court, 11 Queen Victoria Street,
London EC4N 4TA, U.K.
Tel: 44 (20) 7786-1400
Fax: 44 (20) 7248-5905
Sakura Finance International Limited
Temple Court, 11 Queen Victoria Street,
London EC4N 4TA, U.K.
Tel: 44 (20) 7842-3000
Fax: 44 (20) 7842-3340
Sakura Trust International Limited
Temple Court, 11 Queen Victoria Street,
London EC4N 4TA, U.K.
Tel: 44 (20) 7248-3076
Fax: 44 (20) 7329-4934
http://www.smbc.co.jp/
SUMITOMO MITSUI BANKING CORPORATION 2001
3
Pr inted i n Ja pa n