BW20030812002039 20030812T131838Z UTC
( BW)(SUMITOMO-MITSUI-BNKG)(SBK) Statement re Progress Report on
Strengthening the Financial Base of the Bank - Part 2
Business Editors
UK REGULATORY NEWS
TOKYO--(BUSINESS WIRE)--Aug. 12, 2003--
(Millions of local currency, except Indonesia (in Billions))
(*5)
Operating Net Consolidated
Company Name Main Business Income /
Profit Equity
Method
[Sumitomo Mitsui Banking Corporation]
--------------------------------------------------------------------------------------------------- ------- ------------
Sumitomo Mitsui
Banking
Corporation
Europe
Limited Commercial Banking business 0.6 0.5 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
Manufacturers
Bank Commercial Banking business 1.2 0.7 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
Sumitomo Mitsui
Banking
Corporation of
Canada Commercial Banking business 1.0 0.5 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
Banco Sumitomo
Mitsui
Brasileiro S.A. Commercial Banking business 18.1 12.9 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
PT Bank Sumitomo
Mitsui
Indonesia Commercial Banking business 26.5 18.4 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
SMBC Leasing and
Finance, Inc. Leasing business 4.5 1.8 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
SMBC Capital
Markets, Inc. Investment and derivative business 67.6 43.3 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
SMBC Capital
Markets Limited Investment and derivative business 0.5 0.3 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
Sumitomo Mitsui
Finance
Australia
Limited Finance business 1.6 1.2 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
SMBC Securities,
Inc. Securities business 0.1 0.0 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
SFVI Limited Investment business 2.0 2.0 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
Sakura Capital
Funding
(Cayman)
Limited Finance business 0.0 0.0 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
Sakura Finance
(Cayman)
Limited Finance business 0.0 0.0 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
Sumitomo Finance
International
plc Investment business 1.2 1.2 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
SMBC
International
Finance N.V. Finance business 0.0 0.0 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
BSL Leasing Co., Equity
Ltd. Leasing business 10.0 6.7 Method
---------------- ---------------------------------------------------------------------------------- ------- ------------
[ SMBC Leasing Company, Limited ]
--------------------------------------------------------------------------------------------------- ------- ------------
SMBC Leasing
(Singapore) Pte
Ltd. Leasing business (0.8) (0.8) Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
SMBC Leasing
(Hong Kong)
Limited Leasing business 0.8 0.8 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
SMBC Leasing
(Thailand) Co.,
Ltd. Leasing business 3.5 2.4 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
SMBC Leasing
(Guangzhou)
Co., Ltd. Leasing business 0.2 0.1 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
SMBC Leasing
(Malaysia) Sdn.
Bhd. Leasing business 0.1 0.1 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
SMBC Leasing
(UK) Limited Leasing business 0.0 0.0 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
P.T. EXIM SB
Leasing Leasing business 0.0 0.0 Consolidated
---------------- ---------------------------------------------------------------------------------- ------- ------------
(*1) Only the subsidiaries and affiliates which borrowed over one
hundred million yen from Sumitomo Mitsui Financial Group or
Sumitomo Mitsui Banking Corporation are indicated in these tables.
Financial data of foreign subsidiaries and affiliates are denoted
by local currency (in millions, except Indonesia (in billions)).
(*2) Including bonds and commercial papers.
(*3) Including guarantees.
(*4) Indicated as the combined basis of SMFG and SMBC.
(*5) Based on Sumitomo Mitsui Financial Group's consolidated financial
results.
(*6) For the companies reporting Operating Losses, Net Losses or
Retained Losses, projection of income and position in the group
strategy of SMFG and SMBC are described in the next page.
(*7) Meiko National Securities Co.,Ltd and Financial Link Company,
Limited and two other companies become consolidated companies through
acquisition, and nine newly established companies, including Sumitomo
Mitsui Banking Corporation Europe Limited are consolidated from the
FY02 period.
Twenty three companies formerly excluded from the scope of
consolidation are consolidated again from FY02 period.
SAKURA INVESTMENT MANAGEMENT CO.,LTD and four companies were merged,
Sumitomo Mitsui Finance Australia (Securities) Limited and five
companies were liquidated, SB AUTO SERVICE CO., LTD. was sold, and
they were unconsolidated from the FY02 interim period.
SMFG Finance (Cayman) Limited and SMFC Holdings (Cayman) Limited,
newly established, and NEC Leasing, Ltd, newly acquired through share
acquisition, are accounted as affiliates by equity method since this
consolidated fiscal year. Sumitomo Mitsui Asset Management, Ltd is
accounted as an affiliate by equity method due to its share
acquisition of SAKURA INVESTMENT MANAGEMENT CO, LTD through the merger
between the two, since this consolidated fiscal year. In addition,
affiliates such as Awagin Lease company, Limited and other eight
companies, previously consolidated, has been accounted as affiliates
by equity method since this consolidated fiscal year.
Meiko National Securities and one other company, being consolidated
subsidiaries through acquisition, is excluded from the list of
affiliates under equity method. Bangkok SMBC Systems Ltd. and one
other company, repudiated, has already been excluded from the list of
affiliates under equity method.
Details of (*5)
Strategic
position within
Company name Earnings projections group
------------------------------------ -------------------------------------------------------------- -----------------
Investment
company
strategically
created with
Daiwa Securities
Daiwa SB Investments Ltd. 100 million yen of net income in FY2003 group
------------------------------------ -------------------------------------------------------------- -----------------
Kansai Bank's
subsidiary for
holding and
managing the
bank's real
The Kangin Service Company, Limited Secure positive bottom line in FY2003 estate
------------------------------------ -------------------------------------------------------------- -----------------
Net loss of 2.8 billion yen in FY2002 (year-over-year increase Internet
The Japan Net Bank, Limited of 2.6 billion yen). Striving to go into black at early date. specialized bank
------------------------------------ -------------------------------------------------------------- -----------------
Sumigin Guarantee Company, Limited became its wholly-ownd
subsidiary in March 2002. Expected to be in black on SMBC's housing
consolidated basis in FY2004, and currently progressing loan guarantee
SMBC Guarantee Co., Ltd. nearly in line with targets. subsidiary
------------------------------------ -------------------------------------------------------------- -----------------
Subsidiary
providing
services to
The SB Card Business Company, SMBC's card
Limited Secure positive bottom line in FY2003 holders
------------------------------------ -------------------------------------------------------------- -----------------
Group's lone
consumer loan
Currently in red due to start-up costs. Aiming for black ink specialized
At-loan Co., Ltd. at early date by increasing outstanding loan balance. company
------------------------------------ -------------------------------------------------------------- -----------------
Strategic
subsidiary for
promoting active
Expected to be in black in FY2003 thanks to increase in equity
management fees from establishment of new funds, and decrease investment in
SMBC Capital Co., Ltd. in amount of write-offs of invested stocks. growth companies
------------------------------------ -------------------------------------------------------------- -----------------
SMBC's finance
SMBC Mortgage Co., Ltd. Secure positive bottom line in FY2003 subsidiary
------------------------------------ -------------------------------------------------------------- -----------------
SMBC's finance
Secure positive bottom line in FY2003 (new company name SMBC and factoring
Sakura Finance Service Co., Ltd. Finance Service Co., Ltd. after merger on April 1, 2003) subsidiary
------------------------------------ -------------------------------------------------------------- -----------------
Strategic
subsidiary that
coordinates
financial
services such as
outsourcing of
settlement
operations and
fund
administration
Expected to go into black in FY2003 thanks to contracts with SMBC and
Financial Link Company, Limited awarded. group companies
------------------------------------ -------------------------------------------------------------- -----------------
Sakura Friend Securities and Meiko National Securities merged
in April 2003 to form SMBC Friend Securities Co., Ltd. Net
loss (but secured ordinary profit) in FY2002 due to merger-
related extraordinary losses. Aiming for net income in FY2003 SMBC's retail
as ordinary profit expected to rise thanks to keeping down securities
Sakura Friend Securities Co., Ltd. expenses as a merger effect. subsidiary
------------------------------------ -----------------
SMBC's retail
securities
Meiko National Securities Co., Ltd. subsidiary
----------------------------------------------------------------------------------------------------- -----------------
Created from merger of five asset management subsidiaries of
SMBC, Mitsui Mutal Life Insurance Company, Sumitomo Life
Insurance Company and Mitsui Sumitmo Insurance Co., Ltd in SMBC's affiliated
December 2002. FY2002 net loss (but achieved ordinary company in the
Sumitomo Mitsui Asset Management profit). Aiming for positive bottom line by increasing field of asset
Company, Ltd. ordinary profit by keeping down expenses as a merger effect. management
------------------------------------ -------------------------------------------------------------- -----------------
One of core
players of
SMBC's Internet
Achieved ordinary profit in FY2002 but negative bottom line. strategy,
Strengthening earnings power by keeping down expenses and engaged in
other measures to expand ordinary profit in order to achieve retail
DLJdirect SFG Securities Inc. positive bottom line. securities
------------------------------------ -------------------------------------------------------------- -----------------
Earnings power incrasing with operation starting to move on Core company in
full-scale basis and improving level of services. Aiming for defined
positive bottom line at early date but depreciation of contribution
initial systems investment drag on earnings and expected to pension plan
Japan Pension Navigator Co., Ltd. remain in red for some time to come. business
------------------------------------ -------------------------------------------------------------- -----------------
SPC of SMBC
Space Service LLC. Flat Leasing Company
------------------------------------ -------------------------------------------------------------- -----------------
Affiliate of SMBC
The Awagin Lease Company, Limited Go into black in FY2003 Leasing Company
------------------------------------ -------------------------------------------------------------- -----------------
Net income in fiscal year ended Dec,2002. Aiming to maintain Investment
Sumitomo Finance International plc black figure in fiscal year ended Dec,2003. company
------------------------------------ -------------------------------------------------------------- -----------------
Overseas
sbusidiary of
SMBC Leasing (Singapore) Pte Ltd. Secure positive bottom line in fiscal year ended Dec. 2003. SMBC Leasing
------------------------------------ -------------------------------------------------------------- -----------------
Overseas
sbusidiary of
SMBC Leasing (Hong Kong) Limited Secure positive bottom line in fiscal year ended Dec. 2003. SMBC Leasing
------------------------------------ -------------------------------------------------------------- -----------------
Overseas
sbusidiary of
SMBC Leasing (Guangzhou) Co., Ltd. Secure positive bottom line in fiscal year ended Dec. 2003. SMBC Leasing
------------------------------------ -------------------------------------------------------------- -----------------
Overseas
sbusidiary of
P.T.EXIM SB Leasing Concentrate on recovering loans with a view to liquidation SMBC Leasing
------------------------------------ -------------------------------------------------------------- -----------------
(Table 10) Loans and Bills Discounted
[Sumitomo Mitsui Banking Corporation (Non-conconsolidated)]
(Balance) (Billions
of yen)
Mar.31,02 Mar.31,03 Mar.31,03
actual plan actual
(A) (B) (C)
----------------------------------------------------- ------------------------------- ----------- ----------- ---------
Domestic including Impact Loans 55,302.2 53,942.2 54,208.0
------------------------------- ----------- ----------- ---------
excluding Impact Loans 53,879.6 52,519.6 53,330.9
---------------------------------------------------- ------------------------------- ----------- ----------- ---------
Small and Medium- including Impact Loans 26,412.3 25,982.3 24,037.3
------------------------------- ----------- ----------- ---------
sized enterprises *1 excluding Impact Loans 25,970.1 25,540.1 23,731.4
---------------------------------------------------- ------------------------------- ----------- ----------- ---------
Loans with guarantee of Credit Guarantee Corporation 2,435.5 2,135.5 1,975.5
------------------------------------------------------------------------------------ ----------- ----------- ---------
Individuals (excluding business loans) 12,493.0 13,143.0 12,775.1
------------------------------------------------------------------------------------ ----------- ----------- ---------
Housing Loans 10,810.8 11,460.8 11,161.4
---------------------------------------------------- ------------------------------- ----------- ----------- ---------
Others 16,396.9 14,816.9 17,395.6
----------------------------------------------------- ------------------------------- ----------- ----------- ---------
Overseas 4,626.2 4,126.2 3,074.4
----------------------------------------------------- ------------------------------- =========== =========== =========
Total 59,928.4 58,068.4 57,282.4
------------------------------------------------------------------------------------- ----------- ----------- ---------
(Adjusted basis ) (Billions
of yen)
Mar.31,03 Mar.31,03
plan actual
(B)-(A)+(a) (C)-(A)+(b)
----------------------------------------------------- ------------------------------- ----------- ----------- ---------
Domestic including Impact Loans (480.0) 1,698.4
------------------------------- ----------- ----------- ---------
excluding Impact Loans (480.0) 2,243.9
---------------------------------------------------- ------------------------------- ----------- ----------- ---------
Small and Medium- including Impact Loans 70.0 (866.0)
------------------------------- ----------- ----------- ---------
sized enterprises *1 excluding Impact Loans 70.0 (729.7) #1
----------------------------------------------------- ------------------------------- ----------- ----------- ---------
*1 Small and Medium-sized enterprises = Loans to following
enterprises.
-Wholesaling enterprise whose capital is Y100 mil. or less or number
of employees is 100 or less
-Services enterprise whose capital is Y50 mil. or less or number of
employees is 100 or less
-Retailing enterprise whose capital is Y 50mil. or less or number of
employees is 50 or less
-Other enterprise whose capital is Y300 mil. or less or number of
employees is 300 or less
-Unincorporated enterprise
(Factors for reduction in loans) (Billions of
yen)
FY02 Plan (a) FY02 Actual (b)
----------------- ----------------------
Small and Medium- Small and
Medium-
sized enterprises sized
enterprises
------------------------------------------------------------------------------ -------- -------------------------------
Direct Write-offs *1 + 253.6 + 11.6
------------------------------------------------------------------------------ -------- -------- ----------------------
Secondary losses on loans sold to CCPC *2 + 104.7 + 104.7
------------------------------------------------------------------------------ -------- -------- ----------------------
Sales and securitization of loans *3 + 880.0 + 500.0 + 891.4 + 312.0
------------------------------------------------------------------------------ -------- -------- ----------------------
Direct reduction *4 + 434.2 + 326.8
---------------------------------------------------------------------------- - -------- -------- ----------------------
Sales of loans to RCC *5 + 99.8 + 63.2
---------------------------------------------------------------------------- - -------- -------- ----------------------
Bulk-sales and others *6 + 321.9 + 296.3
---------------------------------------------------------------------------- - -------- -------- ----------------------
Others *7 + 687.0 + 394.4
============================================================================ = ======== ======== ======================
Total + 880.0 + 500.0 + 2,792.6 + 1,509.0
------------------------------------------------------------------------------ -------- -------- ----------------------
*1 Direct write-offs which are allowed to be tax deductible.
*2 Losses due to the disposition of collaterals of loans sold to CCPC,
etc.
*3 Mainly sales and securitization of normal loans.
*4 Of those reduced in this fiscal year.
*5 Losses due to the sales of loans to the specific bank defined in
Article 53 of Financial Reconstruction Law.
*6 Losses due to bulk-sales of problem assets and other credit costs.
*7 Amount of credit given that are virtually equivalent to that of
loan, such as private placement etc.
(Table 13) The Results of Asset Audits in compliance with Article 3.2 of
the Financial Revitalization Law
(Billions of
yen)
------------------------------------------------------------------ ------------- ------------ ------------- ------------
Mar. 31, 02 Mar. 31, 02 Mar. 31, 03 Mar. 31, 03
*1 *1 *2 *3
Non- Consolidated Non- Consolidated
consolidated consolidated
------------------------------------------------------------------ ------------- ------------ ------------- ------------
Bankrupt and Quasi-Bankrupt Assets 493.5 638.2 524.9 656.0
------------------------------------------------------------------ ------------- ------------ ------------- ------------
Doubtful Assets 2,970.2 3,263.4 2,129.5 2,340.2
------------------------------------------------------------------ ------------- ------------ ------------- ------------
Substandard Loans 2,436.3 2,666.1 2,606.9 2,857.6
================================================================== ============= ============ ============= ============
Sub-total 5,900.0 6,567.7 5,261.3 5,853.8
------------------------------------------------------------------ ------------- ------------ ------------- ------------
Normal Assets 60,558.9 61,896.4 57,313.4 59,330.5
================================================================== ============= ============ ============= ============
Total 66,458.9 68,464.1 62,574.7 65,184.3
------------------------------------------------------------------ ------------- ------------ ------------- ------------
*1 The numbers of FY01 are those of former Sumitomo Mitsui Banking
Corporation.
*2 The numbers of FY02 of non-consolidated are those of Sumitomo
Mitsui Banking Corporation.
*3 The numbers of FY02 of consolidated are those of Sumitomo Mitsui
Financial Group.
Reserve for Possible Loan Losses (Billions of
yen)
-------------------------------------------------------------------------------- ------------ ------------- ------------
Mar. 31, 02 Mar. 31, 02 Mar. 31, 03 Mar. 31, 03
*1 *1 *2 *3
Non- Consolidated Non- Consolidated
consolidated consolidated
------------------------------------------------------------------ ------------- ------------ ------------- ------------
General Reserve 872.3 929.5 1,113.2 1,173.9
------------------------------------------------------------------ ------------- ------------ ------------- ------------
Specific Reserve 1,084.1 1,214.7 950.0 1,058.0
------------------------------------------------------------------ ------------- ------------ ------------- ------------
Loan Loss Reserve for Specific Overseas Countries 15.4 15.4 11.6 11.6
================================================================== ============= ============ ============= ============
Sub-total 1,971.8 2,159.6 2,074.8 2,243.5
------------------------------------------------------------------ ------------- ------------ ------------- ------------
Reserve for Possible Losses on Loans Sold to CCPC 80.6 86.4 17.2 20.7
------------------------------------------------------------------ ------------- ------------ ------------- ------------
Total 2,052.4 2,246.0 2,092.0 2,264.2
------------------------------------------------------------------ ------------- ------------ ------------- ------------
*1 The numbers of FY01 are those of former Sumitomo Mitsui Banking
Corporation.
*2 The numbers of FY02 of non-consolidated are those of Sumitomo
Mitsui Banking Corporation.
*3 The numbers of FY02 of consolidated are those of Sumitomo Mitsui
Financial Group.
(Table 14) Risk-Monitored Loans
(Billions of yen)
------------------------------------------------------------------------------------------------------------------
Mar. 31, 02*1 Mar. 31, 02*1 Mar. 31, 03*2 Mar. 31, 03*3
Non- Consolidated Non-consolidated Consolidated
consolidated
------------------------------------------------------------------------------------------------------------------
Bankrupt Loans (A) 195.7 227.5 172.4 201.4
------------------------------------------------------------------------------------------------------------------
Non-Accrual Loans (B) 3,184.5 3,599.8 2,390.2 2,710.2
------------------------------------------------------------------------------------------------------------------
Past Due Loans (3 Months or more) (C) 92.3 102.8 114.7 130.3
------------------------------------------------------------------------------------------------------------------
Restructured Loans (D) 2,344.0 2,554.3 2,492.2 2,728.8
----------------------------------------------------------------------------------------------------------------
(1)Reduction of the original
interest rate 506.0 510.6 523.5 559.5
----------------------------------------------------------------------------------------------------------------
(2)Forbearance of interest
payments 3.5 33.5 8.0 33.2
----------------------------------------------------------------------------------------------------------------
(3)Loans to supported companies 16.2 16.2 --- ---
----------------------------------------------------------------------------------------------------------------
(4)Forbearance of principal
repayments 1,809.5 1,977.7 1950.6 2,121.9
----------------------------------------------------------------------------------------------------------------
(5)Others 8.8 16.3 10.1 14.2
------------------------------------------------------------------------------------------------------------------
Total (E)=(A)+(B)+(C)+(D) 5,816.5 6,484.4 5,169.5 5,770.7
------------------------------------------------------------------------------------------------------------------
Direct Reduction 1,373.7 1,768.8 925.5 1,273.4
------------------------------------------------------------------------------------------------------------------
Ratio (E)/ Total Loans 9.7% 10.2% 9.0% 9.4%
------------------------------------------------------------------------------------------------------------------
*1 The numbers of FY01 are those of former Sumitomo Mitsui Banking
Corporation.
*2 The numbers of FY02 of non-consolidated are those of Sumitomo
Mitsui Banking Corporation.
*3 The numbers of FY02 of consolidated are those of Sumitomo Mitsui
Financial Group.
(Table 15) Disposition of Problem Assets
(Billions of yen)
----------------------------------------------------------------------------------
FY01 *2 FY02 *3
Actual Actual
----------------------------------------------------------------------------------
Credit Cost (A) 1,038.6 836.4
---------------------------------------------------------------------------------
Transfer to Specific Reserve 663.2 375.4
---------------------------------------------------------------------------------
Write-off of loans and other related losses (C) 342.9 449.7
--------------------------------------------------------------------------------
Write-off of loans 271.9 259.7
--------------------------------------------------------------------------------
Losses on Sales of Loans to CCPC 8.4 16.4
--------------------------------------------------------------------------------
Losses on Sales of Loans to RCC *1 2.7 22.0
--------------------------------------------------------------------------------
Losses on Bulk Sales 47.9 126.9
--------------------------------------------------------------------------------
Losses on Debt Forgiveness 12.0 24.7
---------------------------------------------------------------------------------
Transfer to Reserve for Possible Losses from Loans
Sold to CCPC 37.0 15.2
---------------------------------------------------------------------------------
Transfer to Reserve for Supporting Specific
Borrowers --- ---
---------------------------------------------------------------------------------
Transfer to Loan Loss Reserve for Specific Overseas
Countries (4.5) (3.9)
----------------------------------------------------------------------------------
Transfer to General Reserve for Possible Loan Losses
(B) 504.5 238.1
----------------------------------------------------------------------------------
Total (A)+(B) 1,543.1 1,074.5
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
Direct Write-off of loans already reserved (D) 573.7 1,131.7
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
Gross Direct Write-offs (C) + (D) 916.6 1,581.4
----------------------------------------------------------------------------------
*1 Losses due to the sales of loans to the specific bank defined in
Article 53 of Financial Reconstruction Law.
*2 The numbers of FY01 are those of former Sumitomo Mitsui Banking
Corporation.
*3 The numbers of FY02 include those of Sumitomo Mitsui Banking
Corporation before the merger (From and including April 1, 2002 to and
including March 16, 2003).
----------------------------------------------------------------------------------
FY01 *2 FY02 *3
Actual Actual
----------------------------------------------------------------------------------
Credit Cost (A) 1,176.0 950.3
---------------------------------------------------------------------------------
Transfer to Specific Reserve 681.5 408.0
---------------------------------------------------------------------------------
Write-off of loans and other related losses (C) 460.4 529.5
--------------------------------------------------------------------------------
Write-off of loans 380.0 339.9
--------------------------------------------------------------------------------
Losses on Sales of Loans to CCPC 9.8 17.1
--------------------------------------------------------------------------------
Losses on Sales of Loans to RCC *1 3.0 22.0
--------------------------------------------------------------------------------
Losses on Bulk Sales 55.6 125.8
--------------------------------------------------------------------------------
Losses on Debt Forgiveness 12.0 24.7
---------------------------------------------------------------------------------
Transfer to Reserve for Possible Losses from Loans
Sold to CCPC 38.7 16.7
---------------------------------------------------------------------------------
Transfer to Reserve for Supporting Specific
Borrowers --- ---
---------------------------------------------------------------------------------
Transfer to Loan Loss Reserve for Specific Overseas
Countries (4.6) (3.9)
----------------------------------------------------------------------------------
Transfer to General Reserve for Possible Loan Losses
(B) 527.4 250.6
----------------------------------------------------------------------------------
Total (A)+(B) 1,703.4 1,200.9
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
Direct Write-off of loans already reserved (D) 681.8 1,280.9
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
Gross Direct Write-offs (C) + (D) 1,142.2 1,810.4
----------------------------------------------------------------------------------
*1 Losses due to the sales of loans to the specific bank defined in
Article 53 of Financial Reconstruction Law.
*2 The numbers of FY01 are those of former Sumitomo Mitsui Banking
Corporation.
*3 The numbers of FY02 are those of Sumitomo Mitsui Financial Group
(consolidated).
(Table 17) Bankruptcies in FY2002 *1
[Sumitomo Mitsui Banking Corporation (Non-conconsolidated)] (Billions
of yen)
----------------------------------------------------------------------------------------- ------------- ------ ---------
Internal Grading One Year Internal Grading Six Month
Before the Before the
Bankruptcy Bankruptcy
------------------------- ------------------------------
Internal Number of Outstanding Number of Outstanding
Grading Bankruptcies Exposure Bankruptcies Exposure
---------- ------------- ----------- ------------- ----------------
1 0 0.0 0 0.0
---------- ------------- ----------- ------------- ----------------
2 0 0.0 0 0.0
---------- ------------- ----------- ------------- ----------------
3 0 0.0 0 0.0
---------- ------------- ----------- ------------- ----------------
4A 0 0.0 0 0.0
---------- ------------- ----------- ------------- ----------------
4B 2 3.1 1 0.2
---------- ------------- ----------- ------------- ----------------
4C 7 2.5 6 2.3
---------- ------------- ----------- ------------- ----------------
5A 17 6.0 14 5.3
---------- ------------- ----------- ------------- ----------------
5B 23 5.1 18 3.4
---------- ------------- ----------- ------------- ----------------
5C 34 5.7 27 4.0
---------- ------------- ----------- ------------- ----------------
6 39 4.0 36 3.5
---------- ------------- ----------- ------------- ----------------
7 181 106.4 150 83.3
---------- ------------- ----------- ------------- ----------------
8 87 95.7 104 96.7
---------- ------------- ----------- ------------- ----------------
9 30 53.9 66 84.6
---------- ------------- ----------- ------------- ----------------
No Grading
*2 49 5.8 47 4.9
========== ============= =========== ============= ================
Total 469 288.2 469 288.2
---------- ------------- ----------- ------------- ----------------
*1 Bankruptcies with credit amount less than 50 million yen are
excluded.
*2 "No Grading" includes individuals and companies without financial
data.
(Reference) Problem Assets Based on the Financial Reconstruction Law
(Billions of yen)
------------------- ------------------- --------------------
Mar. 31, 03
------------------- ------------------- --------------------
Bankrupt and Quasi-Bankrupt Assets 524.9
--------------------------------------- --------------------
Doubtful Assets 2,129.5
------------------- ------------------- --------------------
Substandard Loans 2,606.9
------------------- ------------------- --------------------
Normal Assets 57,313.4
------------------- ------------------- --------------------
Total 62,574.7
------------------- ------------------- --------------------
(Table 18) Unrealized Gains(Losses). (as of Mar. 31, 03)
[ Sumitomo Mitsui Banking Corporation ( Non-consolidated ) ]
Securities (Billions of yen)
Outstanding Net Unrealized Gains(Losses)
-----------------------------------
Balance Gains Losses
========================================================================================================================
Securities *1,*2 286.2 3.8 3.9 0.1
-----------------------------------------------------------------------------------------------------
Held-to- Bond 261.0 2.8 2.8 ---
-----------------------------------------------------------------------------------------------------
maturity Stock --- --- --- ---
-----------------------------------------------------------------------------------------------------
purpose Other 25.2 1.0 1.1 0.1
--------------------------------------------------------------------------------------------------------
Money Held in Trust *1 --- --- --- ---
========================================================================================================================
Securities *1,*2 1,200.7 (20.4) 0.6 21.0
-----------------------------------------------------------------------------------------------------
Subsidiaries, Bond --- --- --- ---
-----------------------------------------------------------------------------------------------------
etc. Stock 345.4 (20.4) 0.6 21.0
-----------------------------------------------------------------------------------------------------
Other 855.3 --- --- ---
--------------------------------------------------------------------------------------------------------
Money Held in Trust *1 --- --- --- ---
========================================================================================================================
Securities *1,*2 22,227.7 (17.8) 257.7 275.5
-----------------------------------------------------------------------------------------------------
Other Bond 14,463.4 108.7 112.4 3.7
-----------------------------------------------------------------------------------------------------
Securities Stock 3,162.8 (152.3) 105.3 257.6
-----------------------------------------------------------------------------------------------------
Other 4,601.5 25.8 40.0 14.2
--------------------------------------------------------------------------------------------------------
Money Held in Trust *1 23.0 0.0 0.5 0.5
------------------------------------------------------------------------------------------------------------------------
Others (Billions of yen)
------------------------------------------------------------------------------------------------------------------------
Net Unrealized Gains(Losses)
-----------------------------------
Book Value Market Value Gains Losses
========================================================================================================================
Premises used in Business *3 341.1 344.9 3.8 12.6 8.8
------------------------------------------------------------------------------------------------------------------------
Other Premises --- --- --- --- ---
========================================================================================================================
Other Assets --- --- --- --- ---
------------------------------------------------------------------------------------------------------------------------
*1 Unrealized gains(losses) are calculated as follows;
Securities and Money Held in Trust with market value: Market
prices as of balance sheet date. But for the stocks in the "Other
Securities", unrealized gains(losses) are based on the average
market price during the final month of the interim period.
*2 Securities include following items, which are not categorized as
"Securities" in the balance sheet. Negotiable certificates of
deposit included in item "Deposits with Banks" and commercial
papers as well as claims on loan trust included in item
"Commercial Papers and Other Purchased".
*3 Based on revaluation of land at fair value as of March 31, 1998
and March 31, 2002 under the Revaluation Act of Land
Properties and the law concerning amendment of the Law.
Book Value: Book value after the revaluation.
Market Value: Market value as of March 31, 2003.
(Table 18) Unrealized Gains(Losses). (as of March 31,2003)
[ Sumitomo Mitsui Financial Group ( consolidated ) ]
Securities (Billions of yen)
----------------------------------------------------------------------------------------------------------------------
Outstanding Net Unrealized Gains(Losses)
---------------------------------------------------
Balance Gains Losses
========================================================================================================================
Securities *1,*2 387.5 5.9 6.0 0.1
----------------------------------------------------------------------------------------------------
Held-to- Bond 334.5 4.9 4.9 ---
----------------------------------------------------------------------------------------------------
maturity Stock --- --- --- ---
----------------------------------------------------------------------------------------------------
purpose Other 53.0 1.0 1.1 0.1
-------------------------------------------------------------------------------------------------------
Money Held in Trust *1 --- --- --- ---
========================================================================================================================
Securities *1,*2 196.3 --- --- ---
----------------------------------------------------------------------------------------------------
Subsidiaries, Bond --- --- --- ---
----------------------------------------------------------------------------------------------------
etc. Stock 188.5 --- --- ---
----------------------------------------------------------------------------------------------------
Other 7.8 --- --- ---
-------------------------------------------------------------------------------------------------------
Money Held in Trust *1 --- --- --- ---
========================================================================================================================
Securities *1,*2 23,599.6 (30.6) 272.9 303.6
----------------------------------------------------------------------------------------------------
Other Bond 15,312.1 111.2 117.1 5.9
----------------------------------------------------------------------------------------------------
Securities Stock 3,284.4 (165.4) 113.0 278.4
----------------------------------------------------------------------------------------------------
Other 5,003.1 23.6 42.9 19.3
-------------------------------------------------------------------------------------------------------
Money Held in Trust *1 23.0 0.0 0.5 0.5
------------------------------------------------------------------------------------------------------------------------
Others (Billions of yen)
-----------------------------------------------------------------------------------------------------------------------
Net Unrealized Gains(Losses)
--------------------------------------------
Book Value Market Value Gains Losses
=======================================================================================================================
Premises used in Business *3 348.1 350.5 2.4 12.6 10.2
-----------------------------------------------------------------------------------------------------------------------
Other Premises --- --- --- --- ---
=======================================================================================================================
Other Assets --- --- --- --- ---
-----------------------------------------------------------------------------------------------------------------------
*1 Unrealized gains(losses) are calculated as follows;
Securities and Money Held in Trust with market value: Market
prices as of balance sheet date. But for the stocks in the "Other
Securities", unrealized gains(losses) are based on the average
market price during the final month of the interim period.
*2 Securities include following items, which are not categorized as
"Securities" in the balance sheet. Negotiable certificates of
deposit included in item "Deposits with Banks" and commercial
papers as well as claims on loan trust included in item
"Commercial Papers and Other Purchased".
*3 Based on revaluation of land at fair value as of March 31, 1998
and March 31, 1999 and March 31, 2002 under the Revaluation Act
of Land Properties and the law concerning amendment of the Law.
Book Value: Book value after the revaluation.
Market Value: Market value as of March 31, 2003.
(Table 19) Derivatives and Foreign Forward Contracts
[ Sumitomo Mitsui Financial Group ( consolidated ) ]
(Billions of Yen)
---------------------------------------------------------------------------------------------------------------------
Contract Amount or Credit Risk Equivalent Amount
Nominal Principal Amount
---------------------------------------------------------------------------------
Mar.31, 02 *2 Mar. 31, 03 Mar.31, 02 *2 Mar.31, 03
---------------------------------------------------------------------------------------------------------------------
Financial Futures Contracts 118,364.9 203,563.1 --- ---
---------------------------------------------------------------------------------------------------------------------
Interest Rate Swap 202,263.5 225,782.9 3,155.1 4,004.7
---------------------------------------------------------------------------------------------------------------------
Currency Swap 12,024.7 12,914.9 900.4 871.9
---------------------------------------------------------------------------------------------------------------------
Foreign Exchange Forward Contracts 42,393.4 38,376.9 1,292.2 950.6
---------------------------------------------------------------------------------------------------------------------
Interest Rate Options (Buy) 4,660.3 4,300.9 55.1 63.6
---------------------------------------------------------------------------------------------------------------------
Currency Options (Buy) 3,745.9 3,214.5 118.1 105.8
---------------------------------------------------------------------------------------------------------------------
Other Derivative Instruments 21,230.1 24,482.6 31.8 49.5
---------------------------------------------------------------------------------------------------------------------
Effect of Master Netting Agreements --- --- (2,806.5) (2,882.5)
=====================================================================================================================
Total 404,682.8 512,635.8 2,746.3 3,163.6
---------------------------------------------------------------------------------------------------------------------
*1 Figures given above were computed according to capital adequacy
guidelines set by the BIS. Followings were also added.
-Listed transactions
-Options (sell)
-Transactions for which the original contract has a maturity of 14
days or less
*2 The numbers of FY01 are those of former Sumitomo Mitsui Banking
Corporation (consolidated)
(Table 20) Credit Portfolio (as of Mar. 31, 03)
[ Sumitomo Mitsui Banking Corporation (Non-consolidated) ]
(Billions of Yen)
---------------------------------------------------------------------------------------------------------------------
Counterparty Counterparty with Others *2 Total
with rating rating equivalent to
equivalent to BB/Ba or lower
BBB/Baa or higher
---------------------------------------------------------------------------------------------------------------------
Credit Risk Equivalent 379.5 2.6 8.5 390.6
---------------------------------------------------------------------------------------------------------------------
Credit Cost 0.3 0.0 0.1 0.4
---------------------------------------------------------------------------------------------------------------------
Amount of Credit Risk 1.7 0.1 0.4 2.2
---------------------------------------------------------------------------------------------------------------------
*1 Tentative calculation for inerest rate and foreign currency related
derivative transactions with financial institutions located in Tokyo,
New York, Hong Kong and Singapore by the Treasury Unit.
*2 Corporations without credit ratings by rating agencies.
Short Name: Sumitomo Mitsui Bnkg
Category Code: STR
Sequence Number: 00008298
Time of Receipt (offset from UTC): 20030812T110613+0100
--30--KO/uk*
CONTACT: Sumitomo Mitsui Bnkg
KEYWORD: UNITED KINGDOM JAPAN INTERNATIONAL EUROPE ASIA PACIFIC
INDUSTRY KEYWORD: BANKING
SOURCE: Sumitomo Mitsui Bnkg
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