BW20030528002055 20030528T131408Z UTC
( BW)(SUMITOMO-MITSUI-BNKG)(SBK) Final Results - Part 2
Business Editors
UK REGULATORY NEWS
TOKYO--(BUSINESS WIRE)--May 28, 2003--
( Supplemental Information )
Market Value Information on Securities
--------------------------------
(1) Securities
1. As of March 31, 2003
(Notes)
1. In addition to 'Securities' stated in the consolidated balance
sheet, the amounts below include trading securities, negotiable
certificates of deposit bought and commercial paper classified as
'Trading assets' negotiable certificates of deposit bought
classified as 'Cash and due from banks' and commercial paper and
beneficiary claim on loan trust classified as 'Commercial paper
and other debt purchased.'
2. Stocks of subsidiaries and affiliates that have market value are
presented in notes to nonconsolidated financial statements.
(1) Securities classified as trading purposes
As of and for the year ended March 31, (Millions of yen)
2003
-------------------------------------------------------------------------------------------------
Consolidated balance Valuation gain(loss) included in
sheet amount profit/loss during the year
-------------------------------------------------------------------------------------------------
Securities for trading
purposes 1,434,190 (1,096)
(2) Bonds classified as held-to-maturity
As of March 31, 2003 (Millions of
yen)
-------------------------------------------------------------------------------------------------
Consolidated Market Net unrealized Unrealized Unrealized
balance value gains gains losses
sheet (losses)
amount
-------------------------------------------------------------------------------------------------
Japanese government bonds 311,381 315,404 4,023 4,023 -
Japanese local government
bonds 23,091 23,920 828 828 -
Japanese corporate bonds - - - - -
Other 41,246 42,244 998 1,104 105
-------------------------------------------------------------------
Total 375,719 381,569 5,850 5,956 105
(Note) Market value is calculated using market prices at the year-end.
(3) Other securities which have market value
As of March 31, 2003 (Millions of
yen)
-------------------------------------------------------------------------------------------------
Acquisition Consolidated Net unrealized Unrealized Unrealized
cost balance gains gains losses
sheet (losses)
amount
-------------------------------------------------------------------------------------------------
Stocks 3,140,569 2,978,296 (162,273) 110,464 272,737
Bonds 14,024,014 14,135,179 111,164 117,093 5,928
Japanese government bonds 12,516,061 12,590,255 74,193 79,479 5,286
Japanese local government
bonds 342,798 352,112 9,314 9,415 101
Japanese corporate bonds 1,165,153 1,192,811 27,657 28,197 540
Other 4,476,699 4,500,337 23,637 42,900 19,262
-------------------------------------------------------------------
Total 21,641,283 21,613,812 (27,471) 270,458 297,929
(Notes)
1. Market value is calculated as follows:
Stocks Average market price during one month before the fiscal year-end
Bonds and other Market price at the fiscal year-end
2. Other securities with no market value are considered as impaired
if the market value decreases significantly below the acquisition
cost and such decline is not considered as recoverable. The market
value is recognized as the consolidated balance sheet amount and
the amount of write-down is accounted for as valuation loss
(impaired) for the current fiscal year. Valuation loss for this
fiscal year was 496,396 million yen. The rule for determining
'significant decline' is as follows and is based on the
classification of issuing company under self-assessment of assets.
Bankrupt/ Effectively bankrupt/ Potentially bankrupt issuers : Market value is lower than
acquisition cost
Issuers requiring caution : Market value is 30% or more
lower than acquisition cost
Normal issuers : Market value is 50% or more
lower than acquisition cost
Bankrupt issuers: Issuers that are legally bankrupt or formally declared bankrupt
Effectively bankrupt issuers: Issuers that are not legally bankrupt but regarded as
substantially bankrupt
Potentially bankrupt issuers: Issuers that are perceived to have a high risk of
falling into bankruptcy
Issuers requiring caution: Issuers that are identified for close monitoring
Normal issuers: Issuers other than the above four categories of issuers
(4) Bonds sold during the fiscal year that are classified as held-
to-maturity
There are no corresponding transactions.
(5) Other securities sold during the fiscal year
Year ended March 31, 2003 (Millions of yen)
------------------------------------------------------------------------------
Sales Gains Losses
amount on sales on sales
------------------------------------------------------------------------------
Other securities 37,709,925 232,122 190,364
(6) Securities which do not have market value
As of March 31, 2003 (Millions of yen)
------------------------------------------------------------------
Consolidated balance sheet amount
------------------------------------------------------------------------------
Bonds classified as held-to-
maturity
Unlisted foreign securities 652
Other 7,463
Other securities
Unlisted foreign securities 358,590
Unlisted bonds 1,176,885
Unlisted stocks (except OTC trading
stocks) 331,173
Other 137,045
(7) Change in classification of securities
There are no corresponding items.
(8) Redemption schedule of other securities that have maturities and bonds
classified as held-to-maturity
As of March 31, 2003 (Millions of
yen)
------------------------------------------------------------------------------
1 year or 1 to 5 years 5 to 10 over 10
less years years
------------------------------------------------------------------------------
Bonds 3,482,933 8,134,230 3,769,404 260,826
Japanese government bonds 3,303,625 6,306,161 3,034,984 256,865
Japanese local government
bonds 11,935 138,933 223,723 612
Japanese corporate bonds 167,372 1,689,135 510,695 3,349
Other 354,501 2,879,026 765,527 880,974
-------------------------------------------------
Total 3,837,434 11,013,257 4,534,931 1,141,800
2. As of March 31, 2002
(Notes)
1. Amounts for March 31, 2002 are those of former SMBC.
2. In addition to 'Securities' stated in the consolidated balance
sheet, the amounts below include trading securities, negotiable
certificates of deposit bought and commercial paper classified as
'Trading assets' negotiable certificates of deposit bought
classified as 'Cash and due from banks' and commercial paper and
beneficiary claim on loan trust classified as 'Commercial paper
and other debt purchased.'
(1) Securities classified as trading purposes
As of and for the year ended March 31, 2002 (Millions of yen)
-----------------------------------------------------------------------------------------------
Consolidated balance Valuation gain(loss) included in
sheet amount profit/loss during the fiscal year
-----------------------------------------------------------------------------------------------
Securities for trading
purposes 986,563 (15,011)
(2) Bonds classified as held-to-maturity
As of March 31, 2002 (Millions of
yen)
-----------------------------------------------------------------------------------------------
Consolidated Market Net unrealized Unrealized Unrealized
balance value gains gains losses
sheet (losses)
amount
-----------------------------------------------------------------------------------------------
Japanese government bonds 157,807 158,223 415 493 77
Japanese local government
bonds 23,330 23,089 (240) - 240
Japanese corporate bonds - - - - -
Other 32,980 33,697 717 769 52
-----------------------------------------------------------------
Total 214,118 215,011 892 1,262 370
(Note) Market value is calculated using market prices at the year-end.
(3) Other securities which have market value
As of March 31, 2002 (Millions of
yen)
-----------------------------------------------------------------------------------------------
Acquisition Consolidated Net unrealized Unrealized Unrealized
cost balance gains gains losses
sheet amount (losses)
-----------------------------------------------------------------------------------------------
Stocks 5,364,801 4,855,495 (509,305) 192,620 701,926
Bonds 11,265,202 11,301,661 36,459 58,810 22,351
Japanese government bonds 9,919,406 9,956,064 36,658 41,284 4,626
Japanese local government
bonds 468,707 476,721 8,013 9,887 1,873
Japanese corporate bonds 877,088 868,875 (8,212) 7,638 15,851
Other 3,039,987 3,017,326 (22,661) 8,610 31,271
-----------------------------------------------------------------
Total 19,669,991 19,174,483 (495,507) 260,042 755,549
(Notes)
1. Market value is calculated as follows:
Stocks Average market price during one month before the fiscal year-end
Bonds and other Market price at the fiscal year-end
2. Other securities with market value are considered as impaired if
the market value decreases significantly below the acquisition
cost and such decline is not considered as recoverable. The market
value is recognized as the consolidated balance sheet amount and
the amount of write-down is accounted for as valuation loss
(impaired) for the current consolidated fiscal year. Valuation
loss in the term was 114,804 million yen. The rule for determining
'significant decline' is as follows and is of issuing company
under self-assessment of assets. based on the classification
Bankrupt/ Effectively bankrupt/ Potentially bankrupt issuers: Market value is lower than
acquisition cost
Issuers requiring caution : Market value is 30% or more
lower than acquisition cost
Normal issuers : Market value is 50% or more
lower than acquisition cost
Bankrupt issuers: Issuers that are legally bankrupt or
formally declared bankrupt
Effectively bankrupt issuers: Issuers that are not legally bankrupt but regarded as
substantially bankrupt
Potentially bankrupt issuers: Issuers that are perceived to have a high risk of
falling into bankruptcy
Issuers requiring caution: Issuers that are identified for
close monitoring
Normal issuers: Issuers other than the above four
categories of issuers
(4) Bonds sold during this fiscal year that are classified as held-to-maturity
There are no corresponding transactions.
(5) Other securities sold during the fiscal year
Year ended March 31, 2002 (Millions of yen)
------------------------------------------------------------------------------
Sales Gains Losses
amount on sales on sales
------------------------------------------------------------------------------
Other securities 32,067,887 321,317 95,118
(6) Securities which do not have market value
As of March 31, 2002 (Millions of yen)
------------------------------------------------------------------------------
Consolidated balance sheet amount
------------------------------------------------------------------------------
Bonds classified as held-to-maturity
Unlisted foreign securities 13,080
Other 18,246
Other securities
Unlisted foreign securities 349,227
Unlisted bonds 561,512
Unlisted stocks (except OTC trading
stocks) 179,961
Other 109,478
(7) Change in classification of securities
There are no corresponding items.
(8) Redemption schedule of other securities that have maturities and bonds
classified as held-to-maturity
As of March 31, 2002 (Millions of
yen)
------------------------------------------------------------------------------
1 year or 1 to 5 years 5 to 10 over 10
less years years
------------------------------------------------------------------------------
Bonds 2,315,514 7,488,398 1,966,674 273,699
Japanese government bonds 2,179,224 6,340,438 1,324,773 269,435
Japanese local government
bonds 25,647 130,937 342,159 1,307
Japanese corporate bonds 110,643 1,017,022 299,741 2,956
Other 469,356 2,044,658 153,680 517,756
-------------------------------------------------
Total 2,784,871 9,533,057 2,120,354 791,456
[2] Money Held in Trust
1. As of March 31, 2003
(1) Money held in trust classified as trading
purposes
As of and for the year ended March 31, 2003 (Millions of yen)
------------------------------------------------------------------------------------------------
Consolidated balance Valuation gain(loss) included in
sheet amount profit/loss during the year
------------------------------------------------------------------------------------------------
Money held in trust for trading
purposes 1,629 12
(2) Money held in trust classified as held-to-maturity
There are no corresponding transactions.
(3) Other money held in trust (Money held in trust except for trading purposes and
held-to-maturity)
As of March 31, 2003 (Millions of
yen)
------------------------------------------------------------------------------------------------
Acquisition Consolidated Net Unrealized Unrealized
cost balance unrealized gains losses
sheet gains
amount (losses)
------------------------------------------------------------------------------------------------
Other money held in trust 23,044 23,000 (44) 510 555
(Note) Market value is calculated by using market prices at the consolidated fiscal
year-end.
2. As of March 31, 2002
(Note) Amounts for March 31, 2002 are those of former SMBC.
(1) Money held in trust classified as trading purposes
As of and for the year ended March 31, 2002 (Millions of yen)
------------------------------------------------------------------------------------------------
Consolidated balance Valuation gain(loss) included in
sheet amount profit/loss during the year
------------------------------------------------------------------------------------------------
Money held in trust for trading
purposes 3,715 -
(2) Money held in trust classified as held-to-maturity
There is no corresponding transaction.
(3) Other money held in trust (Money held in trust except for trading purposes and held-to-
maturity)
As of March 31, 2002 (Millions of
yen)
------------------------------------------------------------------------------------------------
Acquisition Consolidated Net Unrealized Unrealized
cost balance unrealized gains losses
sheet gains
amount (losses)
------------------------------------------------------------------------------------------------
Other money held in trust 33,969 30,144 (3,825) 135 3,960
(Notes) Consolidated balance sheet amount is calculated using the market price at the
consolidated fiscal year-end.
[3] Net Unrealized Gains (Losses) on Other Securities
1. As of March 31, 2003
Net unrealized gains (losses) on other securities that is reported on the consolidated
balance sheet is shown as follows:
As of March 31, 2003 (Millions of yen)
-------------------------------------------------------------------------------------------
Net unrealized gains (27,585)
Other securities (27,540)
Other money held in trust (44)
(+)Deferred tax assets 994
------------------------
Net unrealized gains (losses) on other securities (before following
adjustment) (26,590)
========================
(-)Minority interests (5,003)
(+)Parent company's share in net unrealized gains (losses)
on other securities held by affiliates accounted for
by the equity method 27
------------------------
Net unrealized gains (losses) on other securities (21,559)
(Note) Net unrealized gains (losses) included foreign currency
translation adjustments on non-marketable securities denominated
in foreign currency.
2. As of March 31, 2002
(Note) Amounts for March 31, 2002 are those of former SMBC.
Net unrealized gains (losses) on other securities that is reported on the consolidated
balance sheet is as follows:
As of March 31, 2002 (Millions of yen)
-------------------------------------------------------------------------------------------
Net unrealized gains (499,280)
Other securities (495,455)
Other money held in trust (3,825)
(+)Deferred tax assets 191,016
------------------------
Net unrealized gains (losses) on other securities (before following
adjustment) (308,264)
========================
(-)Minority interests (4,225)
(+)Parent company's share in net unrealized gains (losses) on other securities
held by affiliates accounted for by the equity
method (797)
------------------------
Net unrealized gains (losses) on other securities (304,837)
(Note)
Net unrealized gains (losses) include foreign currency translation
adjustments on securities which do not have market value denominated
in foreign currency.
Market Value Information on Derivative Transactions
-------------------------------------------------------------------
1. As of March 31, 2003
(1) Interest Rate Derivatives
As of March 31, 2003 (Millions of
yen)
--------------------------------------------------------------------------------------------
Contract
amount Market Valuation
value gains
(Over 1 year) (losses)
--------------------------------------------------------------------------------------------
Transactions listed on exchange
Interest rate futures
sold 59,749,099 4,547,691 (103,623) (103,623)
bought 57,633,988 5,676,922 109,474 109,474
Interest rate options
sold 1,230,739 - 76 76
bought 600,964 205,802 (99) (99)
Over-the-counter transactions
Forward rate agreements
sold 13,389,231 590,000 1,076 1,076
bought 3,469,855 455,000 (500) (500)
Interest rate swaps 305,031,482 214,079,553 250,498 250,498
Receivable fixed rate/Payable
floating rate 146,600,794 101,347,568 3,300,127 3,300,127
Receivable floating rate/Payable
fixed rate 139,298,388 98,710,883 (3,040,142) (3,040,142)
Receivable floating rate/Payable
floating rate 18,990,156 13,890,272 850 850
Interest rate swaption
sold 1,720,503 798,669 (35,707) (35,707)
bought 1,523,512 1,106,731 26,355 26,355
Caps
sold 5,352,002 3,331,808 (4,194) (4,194)
bought 3,616,992 2,536,627 6,682 6,682
Floors
sold 317,281 207,279 (7,673) (7,673)
bought 351,199 195,322 9,027 9,027
Other
sold 42,316 36,551 (6,526) (6,526)
bought 250,660 92,669 6,603 6,603
----------------------------------------------------
Total 251,467 251,467
(Notes)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. Derivative transactions to which 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. Such transactions are not included in the amounts
above, of which their net unrealized gains amount to 827 million
yen.
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.
(2) Currency Derivatives
As of March 31, 2003 (Millions of
yen)
--------------------------------------------------------------------------------------------
Contract
amount Market Valuation
value gains
(Over 1 year) (losses)
--------------------------------------------------------------------------------------------
Over-the-counter transactions
Currency swaps 16,433,656 8,831,238 (39,389) (39,389)
Currency swaptions
sold 330,238 330,238 (3,173) (3,173)
bought 865,005 865,005 13,724 13,724
Forward foreign exchange 2,935,846 547,699 1,518 1,518
Currency options
sold 56,586 13,166 (1,375) (1,375)
bought 60,441 21,575 1,585 1,585
Other
sold 15,310 2,855 153 153
bought - - - -
----------------------------------------------------
Total (26,956) (26,956)
(Notes)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. The derivative transactions to which hedge
accounting method is applied and the transactions shown in Notes 3
are not included in the amounts above. Some consolidated overseas
subsidiaries account for currency derivatives in accordance with
local accounting standards. Such transactions are not included in
the amounts above, of which their net unrealized losses amount to
293 million yen.
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 year-end and the revaluation gain
(loss) is accounted for in the consolidated statement 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 sheet.
3) Those that were 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:
As of March 31, 2003 (Millions of yen)
-------------------------------------------------------------------
Contract
amount
-------------------------------------------------------------------
Transactions listed on exchange
Currency futures
sold -
bought -
Currency options
sold -
bought -
Over-the-counter transactions
Forward foreign exchange 37,271,679
Currency options
sold 3,001,518
bought 3,195,840
(3) Equity Derivatives
As of March 31, 2003 (Millions of yen)
-------------------------------------------------------------------------------------------------
Contract
amount Market Valuation
value gains
(Over 1 year) (losses)
-------------------------------------------------------------------------------------------------
Transactions listed on exchange
Equity price index futures
sold - - - -
bought - - - -
Equity price index options
sold - - - -
bought - - - -
Over-the-counter transactions
Equity options
sold 0 - 0 0
bought 0 - (0) (0)
Equity price index swaps
Receivable equity index/Payable
floating rate - - - -
Receivable floating rate/Payable
equity index - - - -
Other
sold 477 - 0 0
bought 477 - 0 0
--------------------------------------------------------
Total 0 0
(Notes)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. Derivative transactions to which 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.
(4) Bond Derivatives
As of March 31, 2003 (Millions of
yen)
----------------------------------------------------------------------------------------------
Contract
amount Market
value Valuation
(Over 1 year) gains
(losses)
----------------------------------------------------------------------------------------------
Transactions listed on exchange
Bond futures
sold 119,032 - (388) (388)
bought 129,712 - (67) (67)
Bond futures options
sold 4,000 - (8) (8)
bought - - - -
Over-the-counter transactions
Bond options
sold 16,010 15,617 0 0
bought 4,719 3,125 0 0
----------------------------------------------------
Total (463) (463)
(Notes)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. Derivative transactions to which 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.
(5) Commodity Derivatives
As of March 31, 2003 (Millions of
yen)
----------------------------------------------------------------------------------------------
Contract Market
amount value Valuation
(Over 1 year) gains
(losses)
----------------------------------------------------------------------------------------------
Over-the-counter transactions
Commodity swaps
Receivable fixed price / Payable
floating price 31,049 27,358 (1,607) (1,607)
Receivable floating price / Payable
fixed price 31,049 27,358 2,376 2,376
Commodity options
sold 6,369 4,063 (1,493) (1,493)
bought 6,369 4,063 1,521 1,521
----------------------------------------------------
Total 797 797
(Notes)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. Derivative transactions to which 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. Commodity derivatives are transactions on oil and metal.
(6) Credit Derivative Transactions
As of March 31, 2003 (Millions of
yen)
----------------------------------------------------------------------------------------------
Contract
amount Market
value Valuation
gains
(Over 1 year) (losses)
----------------------------------------------------------------------------------------------
Over-the-counter transactions
Credit default options
sold 39,823 22,790 (1,767) (1,767)
bought 35,625 18,592 3,153 3,153
Other
sold 5,722 1,099 4,915 4,915
bought 86,567 79,546 276 276
----------------------------------------------------
Total 6,578 6,578
(Notes)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. Derivative transactions to which 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' are transactions in which SMBC accepts the credit risk,
'Bought are transactions in which SMBC transfers the credit risk.
2. As of March 31, 2002
(Note) Amounts for March 31, 2002 are those of former SMBC.
(1) Interest Rate Derivatives
As of March 31, 2002 (Millions of
yen)
-------------------------------------------------------------------------------------------
Contract Market Valuation gains
value (losses)
amount
(Over 1 year)
-------------------------------------------------------------------------------------------
Transactions listed on exchange
Interest rate futures
sold 8,943,374 542,286 3,429 3,429
bought 6,928,597 341,900 (3,190) (3,190)
Interest rate options
sold 574,331 - (22) (22)
bought 701,914 - 48 48
Over-the-counter transactions
Forward rate agreements
sold 9,174,207 580,000 13 13
bought 3,024,390 780,000 (248) (248)
Interest rate swaps 268,046,524 169,004,153 37,188 37,188
Receivable fixed rate/Payable
floating rate 128,429,893 79,655,118 2,593,978 2,593,978
Receivable floating rate/Payable
fixed rate 124,541,252 76,679,066 (2,548,948) (2,548,948)
Receivable floating rate/Payable
floating rate 14,722,791 12,361,681 (5,459) (5,459)
Swaption
sold 1,118,152 523,065 (21,895) (21,895)
bought 952,425 592,115 19,321 19,321
Cap
sold 5,446,040 4,319,041 (7,950) (7,950)
bought 4,622,975 3,586,333 11,040 11,040
Floor
sold 400,233 235,877 (9,240) (9,240)
bought 621,113 325,744 12,622 12,622
Other
sold 14,352 13,852 (9,170) (9,170)
bought 188,333 62,889 2,390 2,390
---------------------------------------------------
Total 34,335 34,335
(Note)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. Derivative transactions to which hedge
accounting method is applied are not included in the above
amounts. Certain consolidated overseas subsidiaries account for
interest rate derivatives in accordance with local accounting
standards and such transactions are not included in the above
amounts. Their net unrealized gain was 490 million yen.
2. Market values of transactions listed on exchange are calculated
primarily using the closing prices on the Tokyo International
Financial Futures Exchange and others. Market values of OTC
transactions are calculated primarily using discounted present
value and option pricing models.
(2) Currency Derivatives
As of March 31, 2002 (Millions of
yen)
-------------------------------------------------------------------------------------------
Contract
amount Market Valuation
value gains
(Over 1 year) (losses)
-------------------------------------------------------------------------------------------
Over-the-counter transactions
Currency swaps 15,732,720 8,809,028 (46,698) (46,698)
Forward foreign exchange 1,319,768 336,625 (2,439) (2,439)
Currency options
sold 11,641 2,362 (877) (877)
bought 10,956 4,209 931 931
Other
sold 293,341 293,341 (3,163) (3,163)
bought 457,727 457,727 6,145 6,145
---------------------------------------------------
Total (46,102) (46,102)
(Notes)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. Derivative transactions to which hedge
accounting method is applied and the transactions shown in Notes 3
are not included in the above amounts. Certain consolidated
overseas subsidiaries account for interest rate derivatives in
accordance with local accounting standards and such transactions
are not included in the above amounts. Their net unrealized gain
was 715 million yen.
2. Market value is calculated mainly using discounted present value.
3. The following types of forward foreign exchange and currency
options are not included in the above amounts.
a) Revaluated at fiscal year-end and valuation gain (loss) is recognized in the
consolidated statement of income
b) Embedded in foreign currency financial assets/liabilities and recognized in the
consolidated balance sheet
c) Embedded in foreign currency financial assets/liabilities and eliminated in the
process of consolidation
The contract amount of currency derivatives which are revaluated at the consolidated
balance sheet date are as follows:
As of March 31, 2002 (Millions of yen)
---------------------------------------------------------------
Contract amount
---------------------------------------------------------------
Transactions listed on exchange
Currency futures
sold -
bought -
Currency options
sold -
bought -
Over-the-counter transactions
Forward foreign exchange 42,123,544
Currency options
sold 3,161,699
bought 3,736,356
(3) Equity Derivatives
As of March 31, 2002 (Millions of
yen)
------------------------------------------------------------------------------------------
Contract
amount Market Valuation
value gains
(Over 1 year) (losses)
------------------------------------------------------------------------------------------
Transactions listed on exchange
Equity price index futures
sold 55 - 0 0
bought 211 - 0 0
Equity price index options
sold - - - -
bought - - - -
Over-the-counter transactions
Equity options
sold - - - -
bought - - - -
Equity swaps
Receivable equity
index/Payable floating rate - - - -
Payable equity
index/Receivable floating
rate 11,664 - 25 25
Other
sold 98,375 21,566 (4,531) (4,531)
bought 69,016 - 796 796
-----------------------------------------------------
Total (3,709) (3,709)
(Notes)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. Derivative transactions to which hedge
accounting method is applied are not included in the above
amounts.
2. Market values of transactions listed on exchange are calculated
primarily using the closing prices on the Tokyo Stock Exchange and
others. Market values of OTC transactions are calculated primarily
using discounted present value and option pricing models.
(4) Bond Derivatives
As of March 31, 2002 (Millions of yen)
-------------------------------------------------------------------------------------------------
Contract
amount Market Valuation
value gains
(Over 1 year) (losses)
-------------------------------------------------------------------------------------------------
Transactions listed on exchange
Bond futures
sold 13,300 - (78) (78)
bought 13,300 - 90 90
Bond futures options
sold - - - -
bought 5,000 - 11 11
Over-the-counter transactions
Bond options
sold 23,064 17,384 (11) (11)
bought 28,155 4,953 0 0
---------------------------------------------------------
Total 11 11
(Notes)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. Derivative transactions to which hedge
accounting method is applied are not included in the above
amounts.
2. Market values of transactions listed on exchange are calculated
primarily using the closing prices on the Tokyo Stock Exchange and
others. Market values of OTC transactions are calculated primarily
using option pricing models.
(5) Commodity Derivatives
As of March 31, 2002 (Millions of yen)
-------------------------------------------------------------------------------------------------
Contract
amount Market Valuation
value gains
(Over 1 year) (losses)
-------------------------------------------------------------------------------------------------
Over-the-counter transactions
Commodity swaps
Receivable fixed price/Payable
floating price 1,918 1,796 504 504
Receivable floating price/Payable
fixed price 1,918 1,796 (361) (361)
Commodity options
sold 5,026 4,469 (1,070) (1,070)
bought 5,026 4,469 1,107 1,107
---------------------------------------------------------
Total 180 180
(Notes)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. Derivative transactions to which hedge
accounting method is applied are not included in the above
amounts.
2. Market value is calculated based on factors such as price of the
relevant commodity and contract term.
3. Commodity derivatives are all oil related products.
(6) Credit Derivative Transactions
As of March 31, 2002 (Millions of yen)
-------------------------------------------------------------------------------------------------
Contract
amount Market Valuation
value gains
(Over 1 year) (losses)
-------------------------------------------------------------------------------------------------
Over-the-counter transactions
Credit default options
sold 51,166 43,807 (774) (774)
bought 49,684 37,903 1,428 1,428
Other
sold 16,354 14,514 (2,584) (2,584)
bought 223,044 80,496 14,895 14,895
---------------------------------------------------------
Total 12,965 12,965
(Notes)
1. The above transactions are valuated at market value and the
valuation gains (losses) are accounted for in the consolidated
statement of income. Derivative transactions to which hedge
accounting method is applied are not included in the above
amounts.
2. Market values are calculated based on factors such as price of the
relevant commodity and contract period.
3. Sold' represents transactions in which credit risk is accepted.
'Bought' represents transactions in which the credit risk is
transferred.
Related Party Transactions
There are no material transactions with related parties to be reported
for the fiscal year ended March 31, 2003.
There are no material transactions with related parties to be reported
for the fiscal year ended March 31, 2002.
Sumitomo Mitsui Banking Corporation (SMBC)
Nonconsolidated Financial Results for the Fiscal Year ended March 31,
2003
Parent Holding Company: Sumitomo Mitsui Financial Group, Inc. (URL:
http://www.smfg.co.jp)
Head Office: 1-2, Yurakucho 1-chome, Chiyoda-ku, Tokyo, Japan
Date of Approval by the Board of Directors: May 26, 2003
Date of General Meeting of Shareholders: June 27, 2003
Stock Exchange Listings: None
URL: http://www.smbc.co.jp
President: Yoshifumi Nishikawa
1. Financial Results (Fiscal Year ended March 31, 2003)
(1) Operating Results
Amounts less than one million yen have been omitted.
Ordinary Income Ordinary Profit (Loss) Net Income (Loss)
----------------------------------------------------------------------------------------------
Fiscal Year (Yen) (Yen) million (Yen)
million % % million %
ended March 31, 2003 146,251 - 68,763 - 183,040 -
ended March 31, 2002 SMBC 2,791,405 (15.1) (522,106) - (322,852) -
Wakashio 14,144 ( 7.8) 477 (50.6) 0 -
----------------------------------------------------------------------------------------------
Net Income Net Return on
(Loss) Income(Loss) Common Expenses to Deposits
per Share per Stockholders' Income Ratio
Share(diluted) Equity
---------------------------------------------------------------------------------------------
Fiscal Year (Yen) (Yen) (Yen)
% % million
ended March 31, 2003 68,437.74 66,527.24 36.7 53.0 58,610,731
ended March 31, 2002 SMBC (59.20) - (15.5) 118.7 61,051,813
Wakashio 0.82 - 0.0 96.6 460,193
---------------------------------------------------------------------------------------------
Notes: 1. Average number of common stock outstanding
for the fiscal year ended March 31, 2003: 2,674,559 shares
for the fiscal year ended March 31, 2002: (SMBC)
5,699,043,601 shares (Wakashio) 416,620 shares
2. There are changes in accounting methods.
3. Expenses to Income Ratio = Operating expenses / Operating
income X 100
4. Percentages shown in Operating Income, Ordinary Profit and
Net Income are the increase (decrease) from the previous
year. Percent change amounts for the fiscal year ended
March 31, 2003 are not available because these amounts do
not include former SMBC's profit (loss) for the term from
April 1, 2002 to March 16, 2003.
(2) Dividends (common stock)
Dividends per Share (Annual) Ratio of
---------------------------------- Dividends Dividend Dividends to
Interim Year End (Annual) Payout Ratio Stockholders'
Equity
------------------------------------------------------------------ -----------------
Fiscal Year (Yen) (Yen) (Yen) (Yen)
million % %
ended March 31,
2003 0.00 0.00 0.00 - - -
ended March 31,
2002 SMBC 4.00 0.00 4.00 22,835 - 1.2
Wakashio 0.00 0.00 0.00 - - -
-----------------------------------------------------------------------------------------------
(3) Financial Position
Stockholders' Stockholders' Stockholders' Capital Ratio
Total Assets Equity Equity to Total Equity per (BIS
Assets Share Guidelines)
-----------------------------------------------------------------------------------------------
(Yen) million (Yen) million % (Yen) %
March 31, 2003 (Preliminary)
97,891,161 2,279,223 2.3 17,846.95 10.49
March 31, 2002 SMBC 102,082,581 3,196,492 3.1 332.02 11.50
Wakashio 498,215 20,071 4.0 48,177.01 8.35
-----------------------------------------------------------------------------------------------
Notes: 1. Number of common stock outstanding
as of March 31, 2003: 54,811,805 shares
as of March 31, 2002: (SMBC) 5,708,989,836 shares
(Wakashio) 416,620 shares
2. Number of treasury stock
as of March 31, 2003: none
as of March 31, 2002: (SMBC) 434,559 shares
(Wakashio) none
3. Wakashio's nonconsolidated capital ratio is calculated
using the domestic standard.
Average number of shares outstanding during the year
SMBC For the Fiscal Year
ended March, 31, 2003
-------------------------------------------------
Common stock 2,674,559
-------------------------------------------------
Preferred stock (type 1) 2,753
-------------------------------------------------
Preferred stock (type 2) 4,109
-------------------------------------------------
Preferred stock (type 3) 32,876
-------------------------------------------------
For the Fiscal Year Former Wakashio For the Fiscal Year
Former SMBC ended March, 31, 2002 Bank ended March, 31,
2002
------------------------------------------------- ---------------------------------------
Common stock 5,699,043,601 Common stock 416,620
------------------------------------------------- ---------------------------------------
Preferred stock (first
series type 1) 67,000,000
-------------------------------------------------
Preferred stock (second
series type 1) 100,000,000
-------------------------------------------------
Preferred stock (type 5) 800,000,000
-------------------------------------------------
Preferred stock (type 6) 1,073,750
-------------------------------------------------
Number of shares as of year-end
SMBC As of March, 31, 2003
-------------------------------------------------
Common stock 54,811,805
-------------------------------------------------
Preferred stock (type 1) 67,000
-------------------------------------------------
Preferred stock (type 2) 100,000
-------------------------------------------------
Preferred stock (type 3) 800,000
-------------------------------------------------
Former SMBC As of March 31, 2002 Former Wakashio As of March 31, 2002
Bank
------------------------------------------------- ---------------------------------------
Common stock 5,708,989,836 Common stock 416,620
------------------------------------------------- ---------------------------------------
Preferred stock (first
series type 1) 67,000,000
-------------------------------------------------
Preferred stock (second
series type 1) 100,000,000
-------------------------------------------------
Preferred stock (type 5) 800,000,000
-------------------------------------------------
(Note) Number of shares outstanding changed during the fiscal year ended March 31, 2003 as follows:
Number of shares Issue price Total capitalized
issued amount
------------------------------------------------------------------------------------------
(Yen) million
Increase due to Common stock (Yen) 51,600
issuance of stock 2,325,000 per share 59,985
------------------------------------------------------------------------------------------
Common stock 52,070,185
---------------------------------------
Increase due to Preferred stock
merger (type 1) 67,000
---------------------------------------
Preferred stock
(type 2) 100,000 479,169
---------------------------------------
Preferred stock
(type 3) 800,000
------------------------------------------------------------------------------------------
Dividends per share and Total Dividends (For the fiscal year ended
March 31, 2003) (Yen)
Dividends per Share (Annual) Total Dividends
SMBC (Fiscal 2002) --------------------------------------------- (Annual)
Interim Year-end
-------------------------------------------------------------------------------------------
Common stock 0.00 0.00 0.00 -
-------------------------------------------------------------------------------------------
Preferred stock (first
series type 1) 0.00 0.00 0.00 -
-------------------------------------------------------------------------------------------
Preferred stock (second
series type 1) 0.00 0.00 0.00 -
-------------------------------------------------------------------------------------------
Preferred stock (type 5) 0.00 0.00 0.00 -
-------------------------------------------------------------------------------------------
(Reference) Former SMBC's Interim Dividends for Fiscal 2002
Dividends per Share (Annual) Dividends
Former SMBC --------------------------------------------- (Annual)
Interim Year-end
-------------------------------------------------------------------------------------
(Yen) (Yen) (Yen) (Yen) million
Common stock 19.17 19.17 109,449
--------------------------------------------------- -------------------
Preferred stock (type
1) 10.50 10.50 703
--------------------------------------------------- -------------------
Preferred stock (type
2) 28.50 28.50 2,850
--------------------------------------------------- -------------------
Preferred stock (type
3) 13.70 13.70 10,960
-------------------------------------------------------------------------------------
Dividends per Share (Annual) Dividends
Former SMBC (Fiscal 2001) --------------------------------------------- (Annual)
Interim Year-end
-------------------------------------------------------------------------------------------
(Yen) (Yen) (Yen) (Yen) million
Common stock 4.00 0.00 4.00 22,835
-------------------------------------------------------------------------------------------
Preferred stock (first
series type 1) 10.50 0.00 10.50 703
-------------------------------------------------------------------------------------------
Preferred stock (second
series type 1) 28.50 0.00 28.50 2,850
-------------------------------------------------------------------------------------------
Preferred stock (type 5) 13.70 0.00 13.70 10,960
-------------------------------------------------------------------------------------------
(Yen)
Former Wakashio (Fiscal Dividends per Share (Annual) Dividends
2001) --------------------------------------------- (Annual)
Interim Year-end
-------------------------------------------------------------------------------------------
Common stock 0.00 0.00 0.00 -
-------------------------------------------------------------------------------------------
Calculation for Indicies
Financial Results for the Fiscal Year ended March 31, 2003
- Return on Common Stockholders' Equity:
Net income - Preferred stock dividends
------------------------------------------------------------------------ X 100
{(Stockholders' equity at beginning of year - Number of preferred stocks
outstanding at beginning of year X Issue price) + (Stockholders'
equity at year-end - Number of preferred stocks outstanding at year-end
X Issue price)} / 2
--
- Dividend Payout Ratio:
Common stock dividends
----------------------------------------- X 100
Net income - Preferred stock dividends
- Ratio of Dividends to Stockholders' Equity:
Common stock dividends
------------------------------------------------------------------------------------ X 100
Stockholders' equity at year-end - Number of preferred stocks outstanding at year-
end X Issue price
(Note) From this fiscal year, SMBC applies 'Accounting Standard for
Earnings Per Share' (Financial Accounting Standards No.2) and
'Implementation Guidance for Accounting Standard for Earnings Per
Share' (Financial Accounting Standards Implementation Guidance
No.4).
NONCONSOLIDATED BALANCE SHEET
March 31, 2003 (Millions of yen)
-----------------------------------------------------------------------------------------------------------------------
Assets Liabilities
Cash and due from banks 3,288,593 Deposits 58,610,731
Cash 1,260,311 Current deposits 4,984,121
Due from banks 2,028,281 Ordinary deposits 26,158,050
Call loans 99,774 Savings deposits 1,244,425
Receivables under resale agreements 78,679 Deposits at notice 3,080,382
Receivables under securities borrowing Time deposits
transactions 1,981,243 18,951,501
Commercial paper and other debt Installment savings
purchased 92,436 6,500
Trading assets 3,950,372 Other deposits 4,185,749
Trading securities 95,512 Negotiable certificates of deposit 4,913,526
Derivatives of trading securities 81 Call money 2,686,456
Derivatives of securities related to Payables under repurchase agreements
trading transactions 121 4,124,094
Trading-related financial derivatives Payables under securities lending
2,646,077 transactions 4,777,187
Other trading assets 1,208,579 Bills sold 6,203,300
Money held in trust 24,628 Commercial paper 50,500
Securities 23,656,385 Trading liabilities 2,425,632
Japanese government bonds 12,349,063 Trading securities sold for short sales 3,267
Japanese local government bonds 294,274 Derivatives of trading securities 76
Corporate bonds Derivatives of securities related to
2,081,107 trading transactions 423
Stocks 3,508,151 Trading-related financial derivatives 2,421,864
Other securities 5,423,788 Borrowed money 2,795,160
Loans and bills discounted 57,282,365 Borrowings from finance companies 2,795,160
Bills discounted 649,636 Foreign exchanges 392,727
Loans on bills 7,210,655 Due to foreign banks, credit 296,106
Loans on deeds 40,896,218 Due to foreign banks, debit 47,648
Overdrafts 8,525,854 Foreign bills sold 19,259
Foreign exchanges 724,771 Foreign bills payable 29,712
Due from foreign bank, credit 72,425 Bonds 2,624,099
Due from foreign bank, debit 120,340 Due to trust account 5,953
Foreign bills bought 335,835 Other liabilities 1,428,432
Foreign bills receivable Domestic exchange settlement account,
196,168 credit 9,680
Other assets 1,848,486 Income taxes payable 3,739
Domestic exchange settlement account, Accrued expenses
debit 6,110 102,942
Prepaid expenses 10,609 Unearned income 44,493
Accrued income 155,140 Employees' deposits 47,491
Initial margins of futures markets Reserve for interest on installment
12,479 savings 6
Financial derivatives 994,511 Initial margins of futures markets 13
Deferred bond discounts 376 Variation margins of futures markets 33,802
Other 669,258 Financial derivatives 724,185
Premises and equipment 707,303 Deferred profit on hedge 155,786
Land, building and equipment 612,782 Other 306,290
Construction in progress 2,925 Reserve for employee bonuses 9,898
Surety deposits and intangible 91,594 Reserve for employee retirement benefits 72,816
Deferred tax assets Reserve for possible losses on loans
1,814,625 sold 17,169
Customers' liabilities for acceptances Other reserves
and guarantees 4,416,292 18
Reserve for possible loan losses Reserve for financial futures
(2,074,797) transaction liabilities 18
Deferred tax liabilities for land
revaluation 57,937
Acceptances and guarantees 4,416,292
----------------------------
Total liabilities 95,611,937
----------------------------
Stockholders' equity
Capital stock 559,985
Capital surplus 1,237,307
Capital reserve 879,693
Other capital surplus 357,614
Capital reserve reduction 357,614
Retained earnings 414,536
Voluntary reserves 221,548
Reserve for possible losses on
overseas investments 46
Voluntary earned reserve for
retirement allowances 1,656
Special voluntary earned reserves 219,845
Unappropriated retained earnings at end
of year 192,987
Net income 183,040
Land revaluation excess 85,259
Net unrealized losses on other
securities (17,864)
Total stockholders' equity 2,279,223
----------------------------
Total assets Total liabilities and stockholders'
97,891,161 equity 97,891,161
=========== ============================
Notes to Nonconsolidated Balance Sheet
1. Amounts less than one million yen have been omitted.
2. Transactions for trading purposes (seeking gains arising from
short-term changes in interest rates, currency exchange rates, or
market prices of securities and other market related indices or from
variation among markets) are included in 'Trading assets' or 'Trading
liabilities' on the balance sheet on a contract date basis. Securities
and monetary claims purchased for trading purposes are stated at the
fiscal year-end market value, and financial derivatives such as swaps,
futures and options are stated at amounts that would be settled if the
transactions were terminated at the balance sheet date.
3. Held-to-maturity debt securities are debt securities that Sumitomo
Mitsui Banking Corporation ('SMBC') has the positive intent and
ability to hold to maturity, and are carried at amortized cost using
the moving-average method. Investments in subsidiaries and affiliates
are carried at cost using the moving-average method. Securities other
than trading purpose securities, held-to-maturity debt securities and
investments in subsidiaries and affiliates are classified as 'other
securities' (available-for-sale securities). Stocks in other
securities that have market value are carried at the average market
prices during the final month of the fiscal year, and bonds and others
that have market prices are carried at their fiscal year-end market
prices (cost of securities sold is calculated using primarily the
moving-average method). Other securities with no market prices are
carried at cost or amortized cost using the moving-average method. Net
unrealized gains (losses) on other securities, net of income taxes,
are included in 'Stockholders' equity.'
4. Securities included in 'Money held in trust' are carried in the
same way as in Notes 2 and 3.
5. Derivatives excluding those classified as trading derivatives are
carried at fair value.
6. Premises and equipment owned by SMBC are depreciated using the
straight-line method for premises and the declining-balance method for
equipment. The estimated useful lives of major items are as follows:
Buildings: 7 to 50 years
Equipment: 2 to 20 years
The buildings (excluding equipment) that were acquired before March
31, 1998 had been depreciated using the declining-balance method. At
the merger with former SMBC, the method of depreciation was changed
from declining-balance method to straight-line method. This accounting
change increased Ordinary profit and Income before income taxes by 38
million yen as compared with the former manner.
7. Capitalized software for internal use is depreciated using the
straight-line method over its estimated useful life (five years).
8. Stock and bond issue cost is expensed as they are incurred. Bond
discounts are included in other assets and amortized using
straight-line method over the term of the bonds.
9. SMBC's assets and liabilities denominated in foreign currencies and
overseas branches' accounts are translated into Japanese yen primarily
at the exchange rate at the balance sheet date, except for stocks of
subsidiaries and affiliates which are translated at prevailing rates
at the time of acquisition. Formerly, SMBC applied the revised
accounting standards for foreign currency transactions ('Opinion
Concerning Revision of Accounting Standard for Foreign Currency
Transactions' issued by Business Accounting Deliberation Council on
October 22, 1999), except for the accounting treatment stipulated in
'Temporary Treatment of Accounting and Auditing Concerning Accounting
for Foreign Currency Transactions in Banking Industry' (JICPA Industry
Audit Committee Report No.20 'Former report'). From April 1, 2002,
SMBC applies the revised accounting standards for foreign currency
transactions, except for the treatment which the Former report is
applied, in accordance with the temporary treatment regulated by
'Treatment of Accounting and Auditing Concerning Accounting for
Foreign Currency Transactions in Banking Industry' (JICPA Industry
Audit Committee Report No.25). Pursuant to the temporary treatment,
'financial swap transactions' and 'treatment on internal contracts and
transactions among consolidated subsidiaries' were accounted for by
the former method. Also, foreign currency differences arising from
futures currency transactions are recognized on the balance sheet on a
net basis. Fund-related swap transactions are as follows:
(1) Principal amounts of credits and debts are reported on the balance
sheet in the net amount converted at the exchange rate at the fiscal
year-end.
(2) The difference between spot and forward rates are recorded as
interest income or expenses on an accrual basis for the period from
the spot foreign exchange settlement date to the forward foreign
exchange settlement date.
(3) Accrued income or accrued expenses are recognized at the fiscal
year-end. Fund-related swap transactions are foreign exchange
transactions that are contracted for the purpose of lending or
borrowing funds in different currencies. These transactions consist of
spot foreign exchange either bought or sold and forward foreign
exchange either bought or sold. The spot foreign exchange bought or
sold is the swap transaction for borrowing or lending the principal
amount. The forward foreign exchange bought or sold is the swap
transaction of the principal and corresponding interest to be paid or
received, the amount and due date of which are predetermined.
10. Reserve for possible loan losses of SMBC is provided as detailed
below in accordance with the internal standards for write-offs and
reserves. For claims on borrowers who have entered into bankruptcy,
special liquidation proceedings or similar legal proceedings
('bankrupt borrowers') or borrowers that are not legally or formally
insolvent but are regarded as substantially in the same situation
('effectively bankrupt borrowers'), a reserve is provided based on the
amount of claims, after the charge-off stated below, net of the
expected amount of recoveries from collateral and guarantees. For
claims on borrowers that are not currently in the status of bankrupt
but are likely to become bankrupt in the future, a reserve is provided
in the amount deemed necessary based on an overall solvency assessment
of the claims, net of the expected amount of recoveries from
collateral and guarantees. Pursuant to 'Audit considerations with
respect to the discounted cash flow method used to determine allowance
for credit losses by banks and other financial institutions' (issued
by JICPA on February 24, 2003), SMBC provides reserve for possible
loan losses using the Discounted Cash Flows method as follows for
loans to large borrowers classified as 'Past due loans (3 months or
more)' or 'Restructured loans':
(1) SMBC rationally estimates the cash flows of principal and
interest, and measures their present values by discounting the cash
flows using the initial contractual interest rate.
(2) SMBC recognizes the difference between the present value and its
book value as estimated losses and provides reserve for possible loan
losses. For other claims, a reserve is provided based on the
historical loan-loss ratio. For claims originated in specific
countries, an additional reserve is provided for by the amount deemed
necessary based on the assessment of political and economic
conditions. Branches and credit supervision departments assess all
claims in accordance with the internal rule for self- assessment of
assets, and the Credit Review Department, independent from these
operating sections, audits their assessment. The reserves are provided
based on the results of these assessments. For collateralized or
guaranteed claims on bankrupt borrowers and effectively bankrupt
borrowers, the amount exceeding the estimated value of collateral and
guarantees is deemed to be uncollectible and charged off against the
total outstanding amount of the claims. The amount of charge-off was
954,041 million yen.
11. Reserve for employee bonuses is provided, in provision for payment
of bonuses to employees, by the amount of estimated bonuses
attributable to this fiscal year.
12. Reserve for employee retirement benefits is provided, in provision
for payment of retirement benefits to employees, by the amount deemed
necessary, based on the projected retirement benefit obligation and
fair value of plan assets at the balance sheet date. Prior service
cost is amortized using the straight-line method over primarily 10
years within the employees' average remaining service period at
incurrence. Unrecognized net actuarial gain (loss) is amortized using
the straight-line method over primarily 10 years within the employees'
average remaining service period, commencing from the next fiscal year
of incurrence. Unrecognized net transition obligation from initial
application of the new accounting standard for employee retirement
benefits is amortized using the straight-line method over 5 years.
13. Reserve for possible losses on loans sold is provided for
contingent losses arising from decline of market value of underlying
collateral for loans sold to the Cooperative Credit Purchasing
Company, Limited. This reserve is provided in accordance with the
former Article 287-2 of the Commercial Code.
14. Financing leases, excluding those in which the ownership of the
property is transferred to the lessee, are accounted for in the same
manner as operating leases.
15. Pursuant to the temporary treatment regulated by 'Treatment for
Accounting and Auditing of Application of Accounting Standard for
Financial Instruments in Banking Industry' (JICPA Industry Audit
Committee Report No.24), SMBC applies 'the risk adjustment approach'
to hedging (Macro hedge) 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, abiding by the
following requirements:
(1) Loans, deposits and other interest-earning assets and
interest-bearing liabilities as a whole shall be recognized as the
hedged portfolio.
(2) Derivatives as the hedging instruments shall effectively reduce
the interest rate exposure of the hedged portfolio.
(3) Effectiveness of hedging activities shall be evaluated on a
quarterly basis.
SMBC applies deferred hedge accounting.
In order to hedge risk arising from volatility of exchange rates for
stocks of subsidiaries and affiliates and other securities (excluding
bonds) denominated in foreign currency, SMBC applies deferred hedge
accounting or fair value hedge accounting, on the conditions that the
hedged security is specified in advance and that enough on-balance
(actual) or off-balance (forward) liability exposure exists to cover
the cost of the hedged security in foreign currency base. Certain
interest swaps for the purpose of hedging are accrued and added to or
deducted from the interest on the assets or liabilities in view of
consistency with the risk management policy.
16. National and local consumption taxes are accounted for using the
tax-excluded method.
17. Other reserves required by special laws are reserve for contingent
liabilities from financial futures transaction (18 million yen) in
accordance with Article 82 of the Financial Futures Transaction Law.
18. 'Stocks' account included parent company's stocks of 1,440 million
yen.
19. Total value of investments in subsidiaries held by SMBC was
1,081,885 million yen.
20. Total value of due from a controlling shareholder was 256,659
million yen.
21. Total value of due to a controlling shareholder was 64,832 million
yen.
22. Total value of due from subsidiaries was 965,530 million yen.
23. Total value of due to subsidiaries was 2,110,162 million yen.
24. Accumulated depreciation of premises and equipment was 497,262
million yen.
25. Advanced depreciation of premises and equipment was 71,044 million
yen.
26. In addition to Premises and equipment, which is reported on the
balance sheet, some computers are used under lease contracts.
27. Bankrupt loans and non-accrual loans were 172,403 million yen and
2,390,173 million yen, respectively. These amounts include trust with
The Resolution and Collection Corporation, a measure regarded as
off-balancing, of 40,811 million yen. 'Bankrupt loans' are loans on
which SMBC does not currently accrue interest income, as substantial
doubt is judged to exist as to the ultimate collectability of either
principal or interest as they are past due for a considerable period
of time or for other reasons, and meet conditions defined in Article
96-1-3 and 96-1-4 of the Enforcement Ordinance No.97 of the Japanese
Corporate Tax Law, issued in 1965. Non-accrual loans are loans on
which SMBC does not currently accrue interest income, excluding
bankrupt loans and loans for which SMBC is forbearing interest
payments to support the borrowers' recovery from financial
difficulties.
28. Past due loans (3 months or more) totaled 114,756 million yen.
Past due loans (3 months or more) are loans other than 'Bankrupt
loans' and 'Non-accrual loans' on which the principal or interest is
past due for three months or more.
29. Restructured loans totaled 2,492,199 million yen. Restructured
loans are loans other than 'Bankrupt loans,' 'Non-accrual loans' and
'Past due loans (3 months or more) for which SMBC has relaxed lending
terms, such as reduction of the original interest rate, forbearance of
interest payments or principal repayments or has made agreements in
favor of borrowers such as debt forgiveness, to support the borrowers'
recovery from financial difficulties.
30. The total amount of bankrupt loans, non-accrual loans, past due
loans (3 months or more) and restructured loans was 5,169,531 million
yen. This amount includes trust with The Resolution and Collection
Corporation, a measure regarded as off-balancing, of 40,811 million
yen. The amounts of loans presented in Notes 27 to 30 are amounts
before deduction of reserve for possible loan losses.
31. Bills discounted are accounted for as financial transactions in
accordance with 'Treatment for Accounting and Auditing of Application
of Accounting Standard for Financial Instruments in Banking Industry'
(JICPA Industry Audit Committee Report No.24) issued by JICPA. SMBC
has rights to sell or pledge bank acceptance bought, commercial bills
discounted, documentary bills and foreign exchanges bought without
restrictions. The total face value was 985,472 million yen.
32. Assets pledged as collateral were as follows:
(Millions of yen)
Assets pledged
Cash and due from banks 105,888
Trading assets 988,846
Securities 11,309,257
Loans and bills discounted 4,738,320
Liabilities corresponding to assets pledged
Call money 1,700,000
Payables under repurchase agreements 4,106,910
Payables under securities lending
transactions 4,159,736
Bills sold 6,203,300
Acceptances and guarantees 96,270
In addition, cash and due from banks of 54,330 million yen, trading
assets of 13,937 million yen, securities of 4,647,739 million yen,
loans and bills discounted of 781,138 million yen were pledged as
collateral for cash settlements, variation margins of futures markets
and certain other purposes.
33. Net amount of deferred unrealized gains (losses) on hedging
instruments to which hedge accounting is applied is reported as
Deferred profit on hedge. Gross deferred unrealized losses and gross
deferred unrealized gains on hedging instruments are 937,683 million
yen and 1,093,469 million yen, respectively.
34. SMBC revaluated its own land for business activities in accordance
with the Law Concerning Land Revaluation (the Law) effective March 31,
1998 and the law concerning amendment of the Law effective March 31,
2001. The income taxes corresponded to the net unrealized gains are
deferred and reported in 'Liabilities' as 'Deferred tax liabilities
for land revaluation,' and the net unrealized gains, net of deferred
taxes, are reported as 'Land revaluation excess' in 'Stockholders'
equity.' Date of the revaluation: March 31,1998 and March 31, 2002
Method of revaluation (provided in Article 3-3 of the Law): Fair
values were determined by applying appropriate adjustments for land
shape and timing of appraisal to the values specified in Article 2-3,
2-4 or 2-5 of the Enforcement Ordinance of the Law concerning Land
Revaluation effective March 31, 1998.
35. The balance of subordinated debt included in 'Borrowed money' was
2,513,625 million yen.
36. The balance of subordinated bonds included in 'Bonds' was 634,859
million yen.
37. Net income per share was 68,437.74 yen.
From this fiscal year, SMBC applies 'Accounting Standard for Earnings
Per Share' (Financial Accounting Standards No.2) and 'Implementation
Guidance for Accounting Standard for Earnings Per Share' (Financial
Accounting Standards Implementation Guidance No.4). This accounting
change has no impact on net income per share.
38. Net assets increased by 124,744 million yen, recognizing at fair
value pursuant to the former Article 290-1-6 of the Commercial Code.
39. Market value and unrealized gains (losses) on securities are shown
as below:
In addition to 'Japanese government bonds,' 'Japanese local government
bonds,' 'Corporate bonds,' 'Stocks,' and 'Other securities,' the
amounts below also include negotiable certificates of deposit bought
classified as 'Due from banks,' 'Trading securities,' commercial paper
classified as 'Other trading assets,' and commercial paper and
beneficiary claim on loan trust classified as 'Debt purchased.' This
definition is applied up to Note 42.
(1) Securities classified as trading purposes (Millions of yen)
Balance sheet amount 1,304,092
Valuations gains (losses) included in profit/loss during
the fiscal year 414
(2) Bonds classified as held-to-maturity that have market value
(Millions of yen)
Balance sheet Market Net unrealized
amount value gains
(losses) Gains Losses
------------------------------------------------------------------------------------
Japanese government
bonds 261,027 263,844 2,816 2,816 -
Other 24,747 25,734 986 1,092 105
------------------------------------------------------------------------------------
Total 285,775 289,578 3,803 3,909 105
(3) Investments in subsidiaries or affiliates that have market value
(Millions of yen)
Balance sheet Market Net unrealized
amount value gains (losses)
--------------------------------------------------------------------
Stocks of subsidiaries 80,640 60,212 (20,428)
(4) Other securities that have market value (Millions of yen)
Acquisition Balance sheetNet unrealized
cost amount gains
(losses) Gains Losses
---------------------------------------------------------------------------------------------
Stocks 3,068,818 2,916,463 (152,354) 105,269 257,624
Bonds 13,185,483 13,294,195 108,712 112,417 3,705
Japanese government bonds 12,013,653 12,088,036 74,383 77,719 3,336
Japanese local government
bonds 285,316 294,274 8,957 9,041 84
Corporate bonds 886,513 911,885 25,371 25,656 284
Other 4,257,285 4,283,071 25,785 39,993 14,207
Change of purpose of holding - - 36 36 -
---------------------------------------------------------------------------------------------
Total 20,511,587 20,493,730 (17,820) 257,717 275,537
Net unrealized losses of 17,820 million yen shown above are included
in 'Net unrealized losses on other securities.' Other securities with
market value are considered as impaired if the market value decreases
significantly below the acquisition cost and such decline is not
considered as recoverable. The market value is recognized as the
balance sheet amount and the amount of write-down is accounted for as
valuation loss (impaired) for the current fiscal year. Valuation loss
for this fiscal year is 65 million yen. The rule for determining
'significant decline' is as follows and is based on the classification
of issuing company under self-assessment of assets.
Bankrupt/ Effectively bankrupt/ Potentially Market value is lower than acquisition cost
bankrupt issuers
Issuers requiring caution Market value has decreased 30% or more of the
acquisition cost
Normal issuers Market value has decreased 50% or more of the
acquisition cost
Bankrupt issuers: issuers that are legally bankrupt or formally
declared bankrupt Effectively bankrupt issuers: issuers that are not
legally bankrupt but regarded as substantially bankrupt Potentially
bankrupt issuers: issuers that are not bankrupt now, but are perceived
to have a high risk of falling into bankruptcy Issuers requiring
caution: issuers that are identified for close monitoring Normal
issuers: issuers excluding Bankrupt/ Effectively bankrupt/ Potentially
bankrupt issuers and Issuers requiring caution
40. The amount of other securities sold during this fiscal year is as follows:
(Millions of yen)
Sales amount Gains on sales Losses on sales
------------------------------------------------------------
1,141,376 4,758 10,149
41. Summary information on securities that have no market value is as follows:
(Millions of yen)
Balance sheet amount
-------------------------------------------------
Bonds classified as held-to-maturity
Unlisted foreign securities 404
Investments in subsidiaries or
affiliates
Stocks of subsidiaries 1,087,745
Stocks of affiliates 15,402
Other 16,933
Other securities
Unlisted bonds 1,169,222
Unlisted foreign securities 193,160
Unlisted stocks (excluding OTC
stocks) 246,305
Other 125,308
42. Redemption schedule of other securities that have maturities and
bonds classified as held-to-maturity is as follows:
(Millions of yen)
1 year or less More than 1 year More than 5 More than
to 5 years years 10 years
to 10 years
---------------------------------------------------------------------------------------------
Bonds 3,359,393 7,535,311 3,672,876 156,863
Japanese government bonds 3,224,334 5,978,363 2,991,982 154,383
Japanese local government
bonds 6,119 102,653 184,920 580
Japanese corporate bonds 128,939 1,454,295 495,973 1,900
Other 214,065 2,799,945 739,691 707,823
---------------------------------------------------------------------------------------------
Total 3,573,459 10,335,257 4,412,567 864,687
43. Information on money held in trust is as follows:
(1) Money held in trust classified as trading purposes
(Millions of yen)
Balance sheet amount 1,629
Valuation gains included in profit/loss during the
fiscal year 12
(2) Other money held in trust
(Millions of yen)
Acquisition Balance sheet Net unrealized
cost amount gains
(losses) Gains Losses
--------------------------------------------------------------
23,043 22,999 (44) 510 555
Net unrealized losses on other money held in trust of 44 million yen
shown above are included in 'Net unrealized losses on other
securities.'
44. 'Japanese Government Bonds' include 999 million yen of unsecured
loans of securities for which borrowers have the rights to sell or
pledge. 'Japanese Government Bonds' include 140 million yen of loaned
securities for which borrowers only have the rights to pledge and not
to sell. As for the unsecured borrowed securities by cash for which
SMBC has the rights to sell or pledge and for the securities which
SMBC purchased under resale agreements, that are permitted to sell or
pledge without restrictions, 2,064,696 million yen of securities are
pledged, 84,767 million yen of securities are held in hand as of the
balance sheet date.
45. Commitment line contracts on overdrafts and loans are agreements
to lend to customers to prescribed amount as long as there is no
violation of any condition established in the contracts. The amount of
unused commitments was 27,744,811 million yen, and the amount of
unused commitments whose original contract terms are within one year
or unconditionally cancelable at any time was 25,709,692 million yen.
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. Many of these
commitments have clauses that SMBC or its consolidated subsidiaries
can reject the application from customers or reduce the contract
amounts in the case of change in economic conditions, SMBC or its
consolidated subsidiaries need to secure claims, or other
circumstances. In addition, SMBC or its consolidated subsidiaries
request the customers to pledge collateral such as premises and
securities, and take necessary measures such as reviewing the
customers' financial positions during the contract period, revising
contracts when need arises, and securing claims.
46. Reserve for employee retirement benefits as of this fiscal
year-end and fair value of pension assets in employee retirement
benefits trust (excluding unrecognized actuarial net gains (losses))
that were deducted from reserve for employee retirement benefits are
shown as follows:
(Millions of yen)
Lump-sum Employee Total
payment plan pension fund
--------------------------------------------------------------------------------
Reserve for employee retirement benefits
(before deducting Plan assets in trust) (113,881) (153,317) (267,198)
Pension assets in retirement benefits
trust
(excluding unrecognized actuarial net
gain (loss)) 93,376 101,006 194,382
--------------------------------------------------------------------------------
Reserve for employee retirement benefits
(after deducting Plan assets in trust) (20,505) (52,311) (72,816)
Information on projected benefit obligation and others at this fiscal
year-end is shown as follows:
(Millions of yen)
Projected benefit obligation (1,104,255)
Fair value of pension assets 706,502
----------------------------------------------------
Unfunded projected benefit obligation (397,752)
Unrecognized net transition
obligation 40,335
Unrecognized net actuarial gain or
loss 337,302
Unrecognized prior service cost (net) (52,701)
----------------------------------------------------
Net amount recorded on the balance
sheet (72,816)
47. With the implementation of the 'Metropolitan ordinance regarding
the imposition of enterprise taxes through external standards taxation
on banks in Tokyo' (Tokyo Metropolitan Ordinance No.145, April 1,
2000) ('the metropolitan ordinance'), enterprise taxes that were
hitherto levied on income are now levied on gross banking profit. On
October 18, 2000, Sakura Bank and Sumitomo Bank filed a lawsuit with
the Tokyo District Court against the Tokyo metropolitan government and
the Governor of Tokyo seeking to void the metropolitan ordinance. They
won the case eventually entirely on March 26, 2002 with a decision of
the Tokyo District Court in the Bank's favor, on the grounds that the
metropolitan ordinance was illegal. The District Court ordered the
metropolitan government to return to the Banks advance tax payments of
16,633 million yen and also awarded to the Banks damages of 200
million yen. On March 29, 2002 the metropolitan government lodged an
appeal with the Tokyo High Court against the decision, and on April 9,
2002 the plaintiff banks at the first trial including former SMBC also
lodged an appeal. Former SMBC won the second-trial case eventually on
January 30, 2003 with a decision of the Tokyo High Court in SMBC's
favor, on the grounds that the metropolitan ordinance was illegal. The
High Court ordered the metropolitan government to return to SMBC
advance tax payments of 36,175 million yen. On February 10, 2003 the
metropolitan government lodged a final appeal with the Supreme Court
against the decision, and on February 13, 2003 the plaintiff banks at
the first trial including SMBC also lodged a final appeal. It is the
opinion of SMBC that the metropolitan ordinance is both
unconstitutional and illegal. SMBC has asserted this opinion in the
courts and the matter is still in litigation. The fact that during
this fiscal year SMBC has applied the same treatment as in the
previous year, accounting for enterprise taxes through external
standards taxation on banks in Tokyo in accordance with the
metropolitan ordinance, is because SMBC has deemed it appropriate at
this stage to continue with the same accounting treatment as before.
This accounting treatment does not constitute in any way an admission
on the part of SMBC either of the constitutionality or of the legality
of the metropolitan ordinance. With the implementation of the
metropolitan ordinance, enterprise taxes relating to banks in Tokyo
were recorded in 'Other expenses' in the amounts of 16,833 million yen
for the year ended March 31, 2001 (sum of Sakura Bank and Sumitomo
Bank), 19,862 million yen for the year ended March 31, 2002 and 1,439
million yen (18,269 million yen if the amount that former SMBC
recorded for the year ended March 16, 2003 is added) for the year
ended March 31, 2003. As a result, 'Ordinary profit' for the each
fiscal year decreased by the corresponding amount as compared with the
previous standards under which enterprise taxes were levied on income.
There is no impact on 'Income tax, current' as compared with the
previous standards under which enterprise taxes were levied on income.
Consequently, stockholders' equity decreased by 32,495 million yen.
Since the enterprise taxes in question are not included in the
calculations for accounting for tax effects, there was a decrease in
'Deferred tax assets' of 98,703 million yen as compared with the
amount that it would have been had the enterprise taxes been levied on
income instead of gross profits. There was also a decrease in
'Deferred tax liabilities for land revaluation' of 3,236 million yen,
and consequently stockholders' equity decreased by 95,467 million yen.
With the implementation of the 'Municipal Ordinance regarding the
imposition of enterprise taxes through external standards taxation on
banks in Osaka' (Osaka Municipal Ordinance No.131, June 9, 2000) ('the
municipal ordinance'), enterprise taxes which were hitherto levied on
income are now levied on gross banking profit. On April 4, 2002,
former SMBC filed a lawsuit with the Osaka District Court against the
Osaka municipal government and the Governor of Osaka seeking to void
the municipal ordinance. With the implementation of the 'Revision of
Municipal Ordinance regarding the imposition of enterprise taxes
through external standards taxation on banks in Osaka' (Osaka
Municipal Ordinance No.77, 2002) ('the revised municipal ordinance
2002') on May 30, 2002, and the implementation of the 'Revision of
Municipal Ordinance regarding the imposition of enterprise taxes
through external standards taxation on banks in Osaka' (Osaka
Municipal Ordinance No.14, 2003) ('the revised municipal ordinance
2003') on April 1, 2003, the special treatment regarding the tax basis
is to be applicable from the fiscal year starting on April 1, 2003.
The enterprise taxes which the banks should pay to Osaka municipal
government this term are subject to the supplementary provision 2 of
the revised municipal ordinance 2003, which provides the banks shall
pay the enterprise taxes based on the lesser of gross banking profit
or income. SMBC, therefore, filed and paid the enterprise taxes based
on income. The fact that SMBC filed and paid the enterprise taxes
according to the revised municipal ordinance does not constitute in
any way an admission on the part of SMBC either of the
constitutionality or of the legality of the revised municipal
ordinance 2002 and 2003 as well as the municipal ordinance. Since the
enterprise taxes in question are not included in the calculations for
accounting for tax effects, there was a decrease in 'Deferred tax
assets' of 48,699 million yen as compared with the amount that it
would have been included if the enterprise taxes had been levied on
income instead of gross profits. There was also a decrease in
'Deferred tax liabilities for land revaluation' of 1,575 million yen,
and consequently stockholders' equity decreased by 47,124 million yen.
48. With the implementation of the 'Revision of the Local Tax Law'
(Legislation No.9, 2003) on March 31, 2003, the tax basis of
enterprise taxes, which was stipulated as 'income and liquidation
income' by the 12th paragraph of Article 72 of the Local Tax Law
before the revision, is to be a combination of 'amount of added
value,' 'amount of capital' and 'income and liquidation income' from
the fiscal year starting April 1, 2004. The enterprise taxes that have
tax bases of the 'amount of added value' and the 'amount of capital'
are not pertinent to the enterprise taxes that have tax bases of
income-related amounts. The 'Revision of the Local Tax Law' also
stipulates that the metropolitan ordinance and the municipal ordinance
are to be abolished from the fiscal year starting April 1, 2004. In
connection with the 'Revision of the Local Tax Law,' the effective
statutory tax rate used in the calculations of deferred tax assets and
liabilities from the fiscal year starting April 1, 2004 increased from
38.62% to 40.46%, and, thus, there were an increase in 'Deferred tax
assets' of 67,657 million yen and a decrease in 'Income taxes,
deferred' of the same amount. There were also an increase in 'Deferred
tax liabilities for land revaluation' of 2,634 million yen and a
decrease in 'Land revaluation excess' of the same amount.
49. From this fiscal year, SMBC applies 'Accounting Standard for
Treasury Stock and Reversal of Legal Reserves' (Financial Accounting
Standards No.1). This accounting change has no impact on assets and
stockholders' equity as of this fiscal year-end.
50. In accordance with the amendment of the Ordinance of Banking Law,
presentation of financial statements was changed as follows: Prior to
April 2003, 'Stockholders' equity' was composed of three items
'Capital stock,' 'Legal reserves' and 'Retained earnings.' From this
fiscal year, it is composed of 'Capital stock,''Capital surplus' and
'Retained earnings.'
NONCONSOLIDATED STATEMENT OF INCOME
Year ended March 31, 2003 (Millions of yen)
---------------------------------------------------------------------------------
Ordinary income 146,251
Interest income 82,914
Interest on loans and discounts 34,190
Interest and dividends on securities 40,074
Interest on call loans 67
Interest on receivables under resale agreements 28
Interest on receivables under securities
borrowing transactions 28
Interest on bills bought 0
Interest on deposits with banks 458
Interest on interest rate swaps 4,791
Other interest income 3,275
Trust fees 5
Fees and commissions 31,783
Fees and commissions on domestic and foreign
exchanges 10,525
Other fees and commissions 21,257
Trading profits 11,704
Gains on trading securities 179
Gains on trading-related financial derivatives 11,440
Other trading income 85
Other operating income 14,702
Gains on foreign exchanges 12,369
Gains on sales of bonds 1,612
Gains on financial derivatives 394
Other 326
Other income 5,140
Gains on sales of stocks 3,145
Gains on money held in trust 75
Other 1,918
----------
Ordinary expenses 77,487
Interest expenses 16,122
Interest on deposits 6,102
Interest on negotiable certificates of deposit 174
Interest on call money 64
Interest on payables under repurchase agreements 454
Interest on payables under securities lending
transactions 1,828
Interest on bills sold 27
Interest on commercial paper 0
Interest on borrowed money 4,067
Interest on straight bonds 1,266
Amortization of bond discounts 1
Other interest expenses 2,134
Fees and commissions 8,338
Fees and commissions on domestic and foreign
exchanges 1,067
Other fees and commissions 7,270
Trading losses 103
Losses on securities related to trading
transactions 103
Other operating expenses 5,120
Losses on sales of bonds 5,040
Losses on redemption of bonds 1
Losses on devaluation of bonds 15
Other 63
General and administrative expenses 36,549
Other expenses 11,253
Write-offs of loans 320
Losses on sales of stocks 5,802
Losses on devaluation of stocks 1,076
Other 4,054
---------- -------------------
Ordinary profit 68,763
Extraordinary gains 40,016
Gains on disposition of premises and equipment 773
Collection of written-off claims 1,038
Other extraordinary gains 38,203
----------
Extraordinary losses 2,669
Losses on disposition of premises and equipment 1,819
Other extraordinary losses 850
---------- -------------------
Income before income taxes 106,109
Income taxes, Current 905
Deferred (77,836)
-------------------
Net income 183,040
Unappropriated retained earnings carried forward 0
Unappropriated retained earnings inherited due to merger 398
Transfer from land revaluation excess 9,547
-------------------
Unappropriated retained earnings at end of year 192,987
===================
Notes to Nonconsolidated Statement of Income
1. Amounts less than one million yen have been omitted.
2. Income on transactions with a controlling shareholder amounts to 82
million yen.
Expenses on transactions with a controlling shareholder amount to
342 million yen.
3. Income on transactions with subsidiaries amounts to 11,157 million
yen.
Expenses on transactions with subsidiaries amount to 9,531 million
yen.
4. Profits and losses on trading transactions are recognized on a
trade date basis, and recorded as 'Trading profits' and 'Trading
losses.' Both accounts include interest received or paid during
the fiscal year. The valuation differences of securities and money
claims between the previous fiscal year-end and this fiscal
year-end are recorded in the above-mentioned accounts. As for the
derivatives, assuming that the settlement will be made in cash,
valuation differences between this fiscal year-end and previous
fiscal year-end are recorded in the above-mentioned accounts.
5. 'Other' in 'Other income' includes gains on securities contributed
to the employee retirement benefits trust of 660 million yen.
6. 'Other' in 'Other expenses' includes enterprise taxes in Tokyo of
1,439 million yen.
7. 'Other extraordinary gains' represent reversal of reserve for
possible loan losses of 38,145 million yen and reversal of reserve
for possible losses on loans sold of 58 million yen.
8. 'Other extraordinary losses' include amortized cost of unrecognized
net obligation from initial application of the new accounting
standard for employee retirement benefits of 831 million yen.
NONCONSOLIDATED STATEMENT OF APPROPRIATION OF
RETAINED EARNINGS FOR THE YEAR ENDED MARCH 31, 2003 (PROPOSAL)
(Yen)
------------------------------------------------------------------------------
Appropriation of unappropriated retained
earnings
----------------------------------------
Unappropriated retained earnings at end of year 192,987,992,146
Transfer from voluntary reserves 7,660,191
Transfer from reserve for possible losses on overseas
investments 7,660,191
----------------
Total 192,995,652,337
Retained earnings to be appropriated 0
Retained earnings carried forward to next year 192,995,652,337
================
Appropriation of other capital surplus
----------------------------------------
Other capital surplus 357,614,600,000
Other capital surplus to be appropriated 0
Other capital surplus brought forward to next year 357,614,600,000
================
COMPARATIVE NONCONSOLIDATED BALANCE SHEETS (CONDENSED)
March 31 (Millions of yen)
-------------------------------------------------------
2003 2002 Difference
former former
(A) SMBC (B) Wakashio (A-(B+C))
(C)
-------------------------------------------------------------------------------------------------
Assets:
Cash and due from banks 3,288,593 5,458,430 62,301 (2,232,138)
Call loans 99,774 620,406 493 (521,125)
Receivables under resale agreements 78,679 432,730 - (354,051)
Receivables under securities borrowing
transactions 1,981,243 - - 1,981,243
Commercial paper and other debt purchased 92,436 146,650 - (54,214)
Trading assets 3,950,372 2,705,648 - 1,244,724
Money held in trust 24,628 33,858 - (9,230)
Securities 23,656,385 20,442,996 53,291 3,160,098
Loans and bills discounted 57,282,365 59,928,368 373,951 (3,019,954)
Foreign exchanges 724,771 779,142 206 (54,577)
Other assets 1,848,486 5,344,106 1,412 (3,497,032)
Premises and equipment 707,303 890,981 10,162 (193,840)
Deferred tax assets 1,814,625 1,741,114 - 73,511
Customers' liabilities for acceptances and
guarantees 4,416,292 5,529,996 1,339 (1,115,043)
Reserve for possible loan losses (2,074,797) (1,971,849) (4,943) (98,005)
----------- ------------ ----------- -----------------
Total assets 97,891,161 102,082,581 498,215 (4,689,635)
=========== ============ =========== =================
Liabilities:
Deposits 58,610,731 61,051,813 460,193 (2,901,275)
Negotiable certificates of deposit 4,913,526 6,577,539 8,500 (1,672,513)
Call money 2,686,456 3,883,991 - (1,197,535)
Payables under repurchase agreements 4,124,094 1,100,446 - 3,023,648
Payables under securities lending
transactions 4,777,187 - - 4,777,187
Bills sold 6,203,300 6,868,800 - (665,500)
Commercial paper 50,500 1,001,000 - (950,500)
Trading liabilities 2,425,632 1,797,086 - 628,546
Borrowed money 2,795,160 3,406,286 - (611,126)
Foreign exchanges 392,727 300,162 - 92,565
Bonds 2,624,099 2,133,754 - 490,345
Convertible bonds - 1,106 - (1,106)
Due to trust account 5,953 - - 5,953
Other liabilities 1,428,432 4,962,176 3,412 (3,537,156)
Reserve for employee bonuses 9,898 11,342 162 (1,606)
Reserve for employee retirement benefits 72,816 116,854 3,961 (47,999)
Reserve for possible losses on loans sold 17,169 80,576 574 (63,981)
Other reserves 18 18 - -
Deferred tax liabilities for land
revaluation 57,937 63,137 - (5,200)
Acceptances and guarantees 4,416,292 5,529,996 1,339 (1,115,043)
----------- ------------ ----------- -----------------
Total liabilities 95,611,937 98,886,088 478,144 (3,752,295)
----------- ------------ ----------- -----------------
Stockholders' equity:
Capital stock - 1,326,746 20,831 (1,347,577)
Legal reserves - 1,326,758 0 (1,326,758)
Land revaluation excess - 100,346 - (100,346)
Retained earnings - 740,874 0 (740,874)
Voluntary reserves - 221,560 - (221,560)
Unappropriated retained earnings at end
of year - 161,699 0 (161,699)
Net income (loss) - (322,852) 0 322,852
Other retained earnings - 357,614 - (357,614)
Net unrealized losses on other securities - (297,950) (759) 298,709
Treasury stock - (283) - 283
Total stockholders' equity - 3,196,492 20,071 (3,216,563)
Stockholders' equity:
Capital stock 559,985 - - 559,985
Capital surplus 1,237,307 - - 1,237,307
Capital reserve 879,693 - - 879,693
Other capital surplus 357,614 - - 357,614
Retained earnings 414,536 - - 414,536
Voluntary reserves 221,548 - - 221,548
Unappropriated retained earnings at end
of year 192,987 - - 192,987
Net income 183,040 - - 183,040
Land revaluation excess 85,259 - - 85,259
Net unrealized losses on other securities (17,864) - - (17,864)
----------- ------------ ----------- -----------------
Total stockholders' equity 2,279,223 - - 2,279,223
----------- ------------ ----------- -----------------
Total liabilities and stockholders' equity97,891,161 102,082,581 498,215 (4,689,635)
=========== ============ =========== =================
(Note) Amounts less than one million yen have been omitted.
COMPARATIVE NONCONSOLIDATED STATEMENT OF INCOME (CONDENSED)
(Millions of yen)
Year ended March 31
----------------------------------------------------------
2003 2002 Difference
former former
(A) SMBC (B) Wakashio (C) (A-(B+C))
--------------------------------------------------------------------------------------------------------
Ordinary income 146,251 2,791,405 14,144
Interest income 82,914 2,192,961 11,541
Interest on loans and discounts 34,190 1,256,848 10,767
Interest and dividends on securities 40,074 504,732 726
Trust fees 5 - -
Fees and commissions 31,783 239,645 830
Trading profits 11,704 121,414 -
Other operating income 14,702 150,886 1,465
Other income 5,140 86,498 306
Ordinary expenses 77,487 3,313,512 13,667
Interest expenses 16,122 716,677 1,014
Interest on deposits 6,102 323,249 937
Fees and commissions 8,338 74,373 589
Trading losses 103 125 -
Other operating expenses 5,120 60,445 868
General and administrative expenses 36,549 696,775 8,352
Other expenses 11,253 1,765,115 2,841
------------ ------------ ------------ -------------------
Ordinary profit (loss) 68,763 (522,106) 477
Extraordinary gains 40,016 26,783 459
Extraordinary losses 2,669 41,314 913
------------ ------------ ------------ -------------------
Income before income taxes 106,109 (536,637) 22
Income taxes, Current 905 32,737 22
Deferred (77,836) (246,522) -
------------ ------------ ------------ -------------------
Net income (loss) 183,040 (322,852) 0
Unappropriated retained earnings brought
forward 0 68,994 -
Unappropriated retained earnings inherited due
to merger 398 114,169 -
Transfer from land revaluation excess 9,547 59,967 -
Transfer from earned surplus reserve - 241,421 -
------------ ------------ ------------ -------------------
Unappropriated retained earnings at end of
year 192,987 161,699 0
============ ============ ============ ===================
(Notes)
1. Amounts less than one million yen have been omitted.
2. Differnce between 2003 and 2002 is not available because former
SMBC's profit (loss) for the term from April 1, 2002 to March 16,
2003 is not recognized on the statement of income for the year
ended
COMPARATIVE NONCONSOLIDATED STATEMENTS OF APPROPRIATION OF
RETAINED EARNINGS FOR THE YEAR ENDED MARCH 31, 2003 (PROPOSAL)
AND MARCH 31, 2002
(Millions of yen)
Year ended March 31
---------------------------------------------------
2003 2002 Difference
former former
(A) SMBC (B) Wakashio (A-(B+C))
(C)
----------------------------------------------------------------------------------------------------------
Appropriation of unappropriated
retained earnings
----------------------------------------------
Unappropriated retained earnings at end
of year 192,987 161,699 0 31,288
Transfer from voluntary reserves 7 12 - (5)
Transfer from reserve for possible losses on
overseas investments 7 12 - (5)
Total 192,995 161,711 0 31,284
Retained earnings to be
appropriated - 37,349 - (37,349)
Dividends on preferred stock (first
series type 1) - 703 - (703)
Dividends on preferred stock (second
series type 1) - 2,850 - (2,850)
Dividends on preferred stock
(type 5) - 10,960 - (10,960)
Dividends on common stock - 22,835 - (22,835)
Transfer to voluntary reserves - 0 - (0)
Transfer to reserve for losses on overseas
investments - 0 - (0)
Retained earnings brought forward to
next year 192,995 124,362 0 68,633
========= ============ ========== =================
Appropriation of other capital
surplus
----------------------------------
Other capital
surplus 357,614 - - 357,614
Other capital surplus to be
appropriated - - - -
Other capital surplus brought forward
to next year 357,614 - - 357,614
========= ============ ========== =================
(Note) Amounts less than one million yen have been omitted.
[REFERENCE]
STATEMENT OF TRUST ASSETS AND LIABILITIES
March 31, 2003 (Millions of yen)
--------------------------------------------------------------------------------------
Assets Liabilities
Loans and bills discounted Designated monetary
35,080 trusts 35,080
Loans on deeds 35,080 Monetary claims trusts 112,952
Monetary claims 125,942 Composit trusts 18,944
Other monetary claims 125,942
Due from banking account 5,953
----------- ------------------
Total assets 166,976 Total liabilities 166,976
=========== ==================
(Notes)
1. Amounts less than one million yen have been omitted.
2. SMBC has no co-operative trusts under other trust bank's
administration as of year-end.
3. SMBC does not deal with any trusts with principal indemnification.
Short Name: Sumitomo Mitsui Bnkg
Category Code: FR
Sequence Number: 00005202
Time of Receipt (offset from UTC): 20030528T101908+0100
--30--MH/uk* SDS/ny JK/ny
CONTACT: Sumitomo Mitsui Bnkg
KEYWORD: UNITED KINGDOM JAPAN INTERNATIONAL EUROPE ASIA PACIFIC
INDUSTRY KEYWORD: BANKING
SOURCE: Sumitomo Mitsui Bnkg
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