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Analyst Meeting Analyst Meeting Presentation Material Presentation Material December 2, 2004 Mitsui Trust Financial Group Agenda . Management Strategies Management Direction Recomposition of Revenue Structure Thorough Low Cost
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group
・ ・ ・ ・Final Disposal of NPLs ・ ・ ・ ・Reduction of Equity Portfolio
Management Direction
～ ～ ～ ～Enhancement of Profitability～ ～ ～ ～
*1 Gross operating profit
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Mitsui Trust Financial Group
*1 Financial intermediary business from
household to corporate sector and bond investments
Full FY3/05 Planned FY3/04 Actual FY3/03 Actual
Corporate loans Bond investment, etc.
Loans to individuals
(Housing loans, etc.)
Real estate non-recourse loans Asset management
—Investment trust & variable annuity sales
—Real estate —Stock transfer agency —Pension/Securities, etc. Alternative investments
0% 13% 2% 22% 14% 5% 23% 2% 16% 8% 25%
Strategic Products [Composition of gross operating profit] Recomposition of Revenue Structure 1H.FY3/05 Actual
17% 29% 9%
1H.FY3/05: Weight of strategic products relative to total revenues exceeded 50%
1% 1%
Conventional Banking Business *1
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Mitsui Trust Financial Group
Full FY Planned
Contents Enhancing housing loans New housing loan origination of
¥300.1bn
[Initial target: ¥300bn] Revise full FY target upward to
¥630bn
[Initial target: ¥600bn] Enhancing of real estate business Revenues of ¥11.2bn [Initial target: ¥8.0bn] Revise full FY target upward to
¥22.0bn
[Initial target: ¥19.0bn]
Strengthening investment trust & variable annuity sales
Revenues of ¥12.4bn [Initial target: ¥10.0bn] Revise full FY target upward to
¥24.5bn
[Initial target: ¥20.0bn] Enhancing real estate asset finance End balance of ¥927.0bn [Initial target: ¥900bn] Revise full FY target upward to
¥1.05trn
[Initial target: ¥1trn]
Recomposition of Revenue Structure
Reducing funding (time deposits) costs 10bp decline (Managerial basis, avg. balance basis)
[Initial target: 10bp decline from 1H.FY3/04]
Planning full FY decline of 10bp from last FY, as initially targeted
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Mitsui Trust Financial Group
87.0 77.7 69.6 67.4 55.4 62.5 96.0 92.8 87.4 76.1 67.9 0.0 50.0 100.0 150.0 200.0
3/00 3/01 3/02 3/03 3/04 3/05 Personnel Non-personnel Taxes
190.0 178.4 163.6 149.4 128.0 115.0
(Planned) (Yen bn)
[Initial target: ¥(3.7)bn]
Revise full FY target to
¥(13.0)bn reduction
[Initial target: ¥(6.0)bn reduction]
Reducing
expenses
54% 52% 50% 44% 41% 37%
OHR
Full FY Planned
Contents
Thorough Low Cost Operations (CMTB+MATB)
7,852 7,362 6,787 6,021
5,037
5,236 166 149 119
67
68 72 2,000 4,000 6,000 8,000
3/00 3/01 3/02 3/03 3/04 9/04
50 100 150 200
# of employees(left) # of branches(right) (people) (branches)
# of Employees: MTH+CMTB+MATB # of branches: CMTB
As of
Number of Employees & Branches
Achieved 41% [1H.FY3/04 actual: 46%] Full FY plan: 37% [Targeting below 40%] Declining OHR
Operating Expenses
28.1 23.7 34.0 31.1 0.0 20.0 40.0 60.0 80.0 1H.FY3/04 1H.FY3/05
Personnel Non-personnel Taxes
64.7 57.7
(Yen bn)
Operating Expenses (CMTB+MATB)
FY
MTH: Mitsui Trust Holdings CMTB: Chuo Mitsui T/B MATB: Mitsui Asset T/B
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Mitsui Trust Financial Group
Full FY Planned
Contents NPLs ratio *1 Halve NPLs ratio from 9.2% (at 3/02) Actual: 3.9% Achieved 6 months ahead of deadline set by FSA Revise full end-FY estimate to
[Initial estimate: approx. 3.8%] Credit costs *1 Actual: ¥21.7bn [Initial estimate: ¥24.0bn] Full FY estimate: ¥40.0bn [No revision]
Strengthen Financial Base
Reduction of equity portfolio*2 Reduction of DTAs*3
Further reduction: To approx. 70% of Tier1 Further reduction: To 30% level of Tier1 Equity portfolio relative to Tier1: 80% [End-3/04 actual: 95%] DTAs relative to Tier1: 40% [End-3/04 actual: 49%]
*1 CMTB, Non-consolidated *2 MTH, Consolidated *3 Deferred Tax Assets. MTH, Consolidated
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Mitsui Trust Financial Group
1H.FY3/05 Highlights & Full FY3/05 Outlook
Yen bn
CMTB+MATB
1H.Actual Full FY Outlook
Combined totals 1H.FY3/04 1H.FY3/05 Change FY3/04 FY3/05 Change Gross operating profit *1
141.4 140.2 (1.1) 309.3 315.0 5.7
Operating expenses [minus]
64.7 57.7 (7.0) 128.0 115.0 (13.0)
Overhead ratio
46% 41% (5)% 41% 37% (5)%
Pre-provision profit *2
76.6 82.5 5.8 181.2 200.0 18.7
Net stock related profit
38.2 18.8 (19.4) 39.7 16.0 (23.7)
Recurring profit
74.0 71.8 (2.1) 126.8 160.0 33.1
Deffered income taxes [minus]
23.8 33.8 10.0 66.9 58.0 (8.9)
(Interim) Net income
54.2 35.1 (19.0) 83.3 90.0 6.6
Credit costs [minus]
32.4 21.7 (10.7) 58.3 40.0 (18.3)
MTH, Consolidated 1H.FY3/04 1H.FY3/05 Change FY3/04 FY3/05 Change Recurring profit
48.0 76.4 28.4 105.3 165.0 59.6
(Interim) Net income
22.4 35.3 12.8 50.7 85.0 34.2
ROE *3
13% 19%
*3 Outstanding of capital is average balance
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Mitsui Trust Financial Group
Revenues by Business Unit (Yen bn) Total of CMTB & MATB 1H.Actual Full FY Outlook Revenues "Gross operating profit" 1H.FY3/041H.FY3/05 Change FY3/04 FY3/05 Change Banking business
104.0 87.5 (16.5) 222.6 210.0 (12.6)
Financing business 3 a/c total
55.0 73.3 18.3 139.6 152.0 12.4
a Loans to individuals, Non-recourse loans
20.4 23.6 3.2 45.6 50.5 4.9
b Alternative investments
4.0 1.8 1.4 2.7 6.5 3.8
Net bond related profit
28.2 (11.2) (39.4) 34.7 1.0 (33.7)
Asset management business
37.4 52.7 15.2 86.6 105.0 18.4 6.5 12.4 5.9 15.3 24.5 9.2
Real estate
6.0 11.2 5.2 13.6 22.0 8.4
Stock transfer agency
7.9 8.1 0.2 15.0 16.5 1.5
Pension
12.5 12.4 (0.1) 25.4 25.5 0.1
Securities
1.1 4.2 3.1 7.8 8.0 0.2
Others
3.3 4.1 0.8 9.4 8.5 (0.9)
Revenues "Gross operating profit" total
141.4 140.2 (1.1) 309.3 315.0 5.7
Operating expenses
64.7 57.7 (7.0) 128.0 115.0 (13.0)
Pre-provision profit
76.6 82.5 5.8 181.2 200.0 18.7
CMTB MATB
Sales of investment trusts& variable annuities
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group Composition of loans to individuals and real estate non- recourse loans: Reached 38% at 9/04→Planned up to 40% at 3/05 Credit loss rate of loans to individuals: Stable at 0.01% Real estate non-recourse loans: No defaults
10%
5% 5% 9% 30% 26% 28% 28%
28%
60%
62%
63% 67% 69% 0% 20% 40% 60% 80% 100%
As of 3/03 9/03 3/04 9/04 3/05
Real estate non-recourse loans Loans to individuals
（Planned）
33%
Recomposition of Loan Portfolio
37%
40% 31%
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Mitsui Trust Financial Group
2,615.9 2,712.2 2,791.7 2,991.7 2,410.4 2,180.4 1,784.4 1,917.7 2,055.8 1,000 1,500 2,000 2,500 3,000
As of 3/03 9/03 3/04 9/04 3/05
（Yen bn） Loans to individuals Of which, housineg loans
1H.FY3/05: New housing loan origination of
¥300.1bn is a record high
Growth rate of 6% in 1H.FY3/05 is top among major banks in Japan *1
Loans to Individuals
“Route sales (channels with real estate agents and developers) ” strategy brings in successful differentiation with competitors
Number of Housing Loan Origination
1,848 2,128 1,309 6,976 7,456 10,549 616 633 693
4,000 8,000 12,000 16,000 1H.FY3/03 1H.FY3/04 1H.FY3/05 Over the counter, etc. Client companies channel Real estate brokers channel
9,517 10,217 12,474 (Planned) （Number of loans)
Before housing loans securitization
(managerial accounting basis)
[After securitization 2,550.4] [After securitization 1,894.0] [After securitization 2.492.8] [After securitization 1,881.5 ]
(85% of all) (73% of all) (73% of all)
*1Our survey. Before housing loans securitization
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Mitsui Trust Financial Group
Plan to increase to ¥1.05trn by end-FY
474.9 823.2 927.0 1,050.0
300 600 900 1,200 As of 3/03 9/03 3/04 9/04 3/05 (Planned)
（Yen bn） Real Estate Asset Finance
Fund investment type: Real estate fund investment, Securitization type: Off-balance real estate of corporations Development type: Build new office buildings and large condominiums REIT type: Loans to REIT (to investment company)
22% 34% 27% 22% 29% 43% 49% 11% 12% 15% 18% 18% 0% 25% 50% 75% 100% 3/03 3/04 9/04
Fund investment type Securitization type Development type REIT type
50% 53% 53% 17% 17% 14% 13% 14% 16% 20% 17% 16% 0% 25% 50% 75% 100% As of 3/03 3/04 9/04
Highly commercial areas in Tokyo (Chiyoda, Minato, Chuo, Shinjuku, Shibuya) Other areas in Tokyo Other local areas
Real Estate Non-recourse Loans by Areas (Loan balance basis)
Real Estate Non-recourse Loans by Type (Loan balance basis) Real Estate Non-recourse Loans by Area (Loan balance basis)
New loans in 1H.FY3/05: ¥316.5bn
Growth of fund investment type significant
As of
Other areas in metropolitan (Kanto)
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Mitsui Trust Financial Group
There is a clear sign of bottom out in loan volume.
3/01 9/01 3/02 9/02 3/03 9/03 3/04 9/04
10.9 10.7 10.2 9.9 10.2 9.9 10.0 10.0
10.9 10.6 10.0 9.6 9.6 9.3 9.1 8.8 8.0 8.5 9.0 9.5 10.0 10.5 11.0
Loan end balance, 3 a/c total
Adjusted loan end balance
（After adjustment of NPLs off-balancing, housing loan securitizations）
（Yen trn） Trend of Loan End Balance
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Mitsui Trust Financial Group
a b c:b-a 1H. FY3/04 1H. FY3/05 Chg. 1 Average yield 1.20% 1.09% (0.10)% 2 Loans and bills discounted 1.56% 1.39% (0.17)% Securities 0.61% 0.65% 0.04% 3 Average yield on procured funds 0.42% 0.36% (0.06)% 4 Deposits 0.30% 0.23% (0.07)% Yield margin (1-3) 0.77% 0.73% (0.04)% Yield margin (2-4) 1.25% 1.16% (0.09)%
0.36
0.25 0.30 0.35 0.40
9/03 10 11 12 1/04 2 3 4 5 6 7 8 9
Yields on Time Deposits
（Managerial accounting basis, monthly average, stock basis)
Down approx.10bp in 1 yr.
(%)
Declining trend of funding costs continues
CMTB: Banking a/c [domestic] Yields
As of
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Mitsui Trust Financial Group
Alternative Investments
Diversifying asset management & reallocating risk capital allowed by reduction of equity portfolio, etc. Risk control is thoroughly considered
Pursuit for new business
Establishment of joint venture engaged in small business lending, with Nissin Co., Ltd. Combination of Mitsui Trust’s brand value and Nissin’s expertise in small business lending Continue to seek new opportunities
complement our businesses and create synergies, in various business areas.
Alternative Investments: Actual & Planned
(Yen bn) Actual Actual Planned Planned
FY3/04 1H. 2H. FY3/04 End balance
350.0 610 800.0 800.0
a Average balance
80.0 470.0 700.0 585.0
b Returns*1
4.7 3.2 8.4 11.6
b/a Rate of returns
5.9% 1.4% 2.4% 2.0%
*1 Gross basis (before considering funding costs)
Foreign investment trusts Credit linked notes RMBS Fund investments Repackaging of bonds Real estate equity investments,
etc.
Types of Alternative Investments
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group 429.8
By ①Further enhancing consultation capability and ②Introducing new products, Achieved 1H. profit of ¥12.4bn. Planned full FY profit: ¥24.5bn, YoY increase of ¥9.2bn, or up 60%
Growth of Investment Trust & Variable Annuity Sales Fees
2.6 5.1 15.3
12.4 6.5 1.7 1.2
24.5
6 12 18 24 FY3/02 3/03 3/04 3/05
(Estimate)
■ 1H.FY □ Full FY (Yen bn) 391.0 402.7 451.2 506.6 601.3 0.0 27.1 94.9 203.3 350.8 250 500 750 1,000 As of 9/02 3/03 9/03 3/04 9/04
Variable annuities Investment trusts
(Yen bn)
Balance of Investment Trusts & Variable Annuities
Sales Fees of Investment Trusts & Variable Annuities
(Yen bn) CMTB 1H.Actual Full FY Outlook 1H.FY3/04 1H.FY3/05 Chg. FY3/04 FY3/05 Chg. Investment trust related
3.1 4.0 0.9 6.7 8.0 1.3
Variable annuity related
3.3 8.3 5.0 8.5 16.5 8.0
Total
6.5 12.4 5.9 15.3 24.5 9.2 391.0 546.2 709.9 952.2
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Mitsui Trust Financial Group
1,008.6 1,154.5 1,485.4 1,763.5
500 1,000 1,500 2,000
As of 3/03 9/03 3/04 9/04
Balance of Securitized Real Estate
(Yen bn)
Due to expansion of real estate market and strengthened sales forces, gained a record high interim revenues, since establishment of Chuo Mitsui in 2000. With competitive advantage in real estate fund business, surely acquiring business chance in the trend of real estate becoming financial products
Growth of Real Estate Related Revenues
Increase in brokerage fees related to funds & investors Securitization related revenues showing steady increase
Revenues of Real Estate Sector
(Yen bn) CMTB 1H.Actual Full FY Outlook 1H.FY3/04 1H.FY3/05 Chg. FY3/04 FY3/05 Chg. Brokerage and other
4.8 9.2 4.4 10.5 17.5 7.0
Securitization related
1.2 2.0 0.8 3.1 4.5 1.4
Total
6.0 11.2 5.2 13.6 22.0 8.4
8.7 9.5 13.6
11.2 6.0 4.3 3.8
22.0
6 12 18 24 FY3/02 3/03 3/04 3/05
(Estimate)
■ 1H.FY □ Full FY
(Yen bn)
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Mitsui Trust Financial Group
(As of 9/04)
Increase revenues by increasing no. of shareholders under administration, by capturing external conditions (unwinding of cross
shareholdings increase no. of individual shareholders)
Increase no. of shareholders under administration by utilizing trust agent function with SMBC (Sumitomo Mitsui Banking Corporation) 1H.FY3/05: Due to 3 large contracts, no. of shareholders under administration increased by over 500,000.
(As of 9/04)
A 26.6% CMTB 26.1% B 14.9% D 15.8% C 16.6%
A 31.0% CMTB 25.4% B 11.3% D 19.7% C 12.7%
Industry Position
Revenues of Stock Transfer Agency Sector
(Yen bn) CMTB
Full FY Outlook 1H.FY3/04 1H.FY3/05 Chg. FY3/04 FY3/05 Chg. Fees received
12.7 14.0 1.3 24.6 27.0 2.4
Fees paid (Minus)
4.8 5.9 1.1 9.6 10.5 0.9
Total
7.9 8.1 0.2 15.0 16.5 1.5
A 29.5% CMTB 28.2% B 15.1% D 12.1% C 15.0%
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Mitsui Trust Financial Group
41.8 84.8 123.9 214.2 309 270 205 222
60 120 180 240 As of 3/03 9/03 3/04 9/04
100 200 300 400
Trusted amount
(Asset Administration Business)
（Yen bn） （No. of thousand people）
Asset Administration Business on DC Pension
Promote cross-selling of highly profitable alternative productss etc. by utilizing competitive advantage of asset management expertise and high quality consultation Amended investment advisory law enabled entry to advisory business →Began non-discretionary advisory services on investment trust for pension funds and individual investors
6,679.7 6,939.6 6,756.2 6,729.0
6,000 6,500 7,000 7,500 8,000 3/03 9/03 3/04 9/04
(Yen bn)
Effect of "Daiko Henjo" to bottom out this FY
（Balance of Pension Assets & Discretionary Assets under Management, book value basis) As of
Balance of Entrusted Pension Assets & Discretionary Assets under Management
Clients‘ evaluation of asset managers ・Among trust banks: Ranked No.1 for 4 consecutive years ・Among all institions: No. 4 (Up 1 rank from previous evaluation)
Source: Newsletter on Pensions & Investment
(Yen bn) MATB 1H.Actual Full FY outlook 1H. FY3/04 1H. FY3/05 Chg. FY3/04 FY3/05 Chg. Fees received
13.2 15.8 2.6 28.5 31.0 2.5
Fees paid (Minus)
0.7 3.4 2.7 3.1 5.5 2.4
Total
12.5 12.4 (0.1) 25.4 25.5 0.1 Revenues of Pension Operations Sector
(Yen bn) MATB 1H.Actual Full FY outlook 1.H FY3/04 1H. FY3/05 Chg. FY3/04 FY3/05 Chg. Fees received
1.2 5.7 4.5 10.8 11.0 0.2
Fees paid (Minus)
0.1 1.5 1.4 3.0 3.0 0.0
Total
1.1 4.2 3.1 7.8 8.0 0.2 Revenues of Securities Sector
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Mitsui Trust Financial Group
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Mitsui Trust Financial Group
FY3/05 Estimate: Credit costs to decline for 6 consecutive years, to approx. 20% of pre-provision profit
Credit Costs & Pre-provision Profit (CMTB+MATB)
200.0 168.0 58.3 121.5 180.3 248.2 540.5 181.2 189.3 166.8 161.5 162.6 164.4 20% 32% 64% 103% 110% 154% 324%
200 400 600 FY3/99 3/00 3/01 3/02 3/03 3/04 3/05 0% 100% 200% 300%
Credit costs(1) Pre-provision profit (2) (1) / (2)
（Yen bn） （Outlook）
Breakdown of Credit Costs
(Yen bn) CMTB 1H.Actual Full FY Outlook 1H.FY3/04 1H.FY3/05 Chg. FY3/04 FY3/05 Chg. New NPLs costs
23.0 10.3 (12.7) 42.4
Off-balance costs
20.3 16.1 (4.2) 45.2 (10.9) (4.7) 6.2 (29.3)
Total
32.4 21.7 (10.7) 58.3 40.0 (18.3) Amount of Off-balance
(Yen bn) CMTB 1H.Actual Full FY Outlook Off-balance 1H.FY3/04 1H.FY3/05 Chg. FY3/04 FY3/05 Chg. Amount
69.1 128.3 59.2 198.3 230.0 31.7
Transfer to the general reserve New NPL costs:
Off-balance costs:
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Mitsui Trust Financial Group
Balance of “Other” Special Mention Loans (Banking a/c + Trust a/c)
1,372.9 993.2 527.4 560.1
400 800 1,200 1,600 As of 2/03 3/03 3/04 9/04 Yen bn)
183.0 283.1 291.7 452.7 170.0 180.8 184.9 410.6 504.2
250 500 750 1,000 As of 3/02 3/03 3/04 9/04 3/05
Close Observation Risky & (Virtual) Bankruptcy
9.2% 7.0% 4.9% 3.9% 3.0%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% As of 3/02 3/03 3/04 9/04 3/05
（Yen bn) （Outlook）
702.3 468.0 280.0
（Outlook）
363.8 956.9
NPLs Balance (Banking a/c + Trust a/c)
Approx.
NPLs Ratio: 3.9%. Halved from FY3/02 ratio of 9.2%, 6 months ahead of the deadline set by FSA
Halved the NPLs ratio 6 months ahead of deadline set by FSA Migration on Special Mention Loans (Banking a/c + Trust a/c) NPLs Ratio (Banking a/c + trust a/c)
(70.9) (81.1) 13.8 208.7 (41.8) 741.0 712.3
(400) 400 800 3/04 Deterioration Deterioration Improv ement Normalization Repay ment 9/04 (Yen bn)
Net increase by deterioration: 166.9 Net decrease by improvement (incl. normalization): 67.3 Decrease by repayment w/o chg. of classification: 70.9
(To High Risk
(From Normal) (From High Risk or below ) (To Normal) (Repay ment w ithout change of classification)
As of
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Mitsui Trust Financial Group
The balance declined to 80% of Tier1 Capital at 9/04 Further reduction to approx. 70% of Tier1 Capital
*1 Acquisition cost basis, except for 3/03 figure (book value base, due to net unrealized losses)
785.7 762.6 535.4 477.3 344.9 444.1 559.1 593.6 80% 95% 227% 171%
250 500 750 1,000 As of 3/03 9/03 3/04 9/04 0% 60% 120% 180% 240% Equity Portfolio*1 (1) Tier1 (2) (1) / (2)
(Yen bn) Equity Portfolio & Tier1 （MTH, Consolidated)
0.2
21.9 26.7
90.1 100.0 (57.3) (78.3) (6.0) (100.0) (50.0) 0.0 50.0 100.0 150.0 As of 3/04 9/04
Total Of w hich, stocks Of w hich, securities Of w hich, others (Yen bn) Available-for-sale securities
Net Unrealized Gains of Securities Held （MTH, Consolidated）
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Mitsui Trust Financial Group
Balance of JGB Portfolio （excl. TB・FB）
1,760 1,720 1,280
1,000 1,500 2,000
9/30/03 3/31/04 9/30/04
(Yen bn)
2.5 5 7.5 10 9/30/03 3/31/04 9/30/04
(Yen bn) Risk Quantity per 10BPV （JGB excl. TB・FB）
Acquisition cost basis Change of risk quantity, when rate varies 10 basis points
Executed reduction of risk quantity Pursue profit opportunity by agile operation
As of As of
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Mitsui Trust Financial Group
593.6
242.9 344.6 323.0 276.7
344.9 444.1 559.1 40.9% 49.4% 72.7% 99.9% 200 400 600 800 As of 3/03 9/03 3/04 9/04 0% 25% 50% 75% 100%
DTAs (1) Tier1 (2) (1)/(2) Deferred Tax Assets (DTAs) & Tier1 （MTH, Consolidated)
(Yen bn)
In 1H.FY3/05, reduced ¥33.7bn, to 40% of Tier1 capital As of 3/05, estimated to be 30% level of Tier1 Capital (MTH, Consolidated)
*1 Estimation based on the scenario in our “Financial Health Improvement Plan” CMTB: Non-consolidated (Yen bn) As of 3/04 9/04 Chg. 1 Deferred tax assets 284.6 252.3 (32.2) Allow ance for possible loan losses 60.4 55.6 (4.7) Securities w rite-offs 31.8 30.5 (1.3) Unrealized losses on available-for-sale securities 5.5 5.1 (0.3) Reserve for retirement benefits 15.1 14.7 (0.3) Tax loss carryfow ards 270.3 250.7 (19.5) Others 18.7 18.7 (0.0) Valuation allow ance (Non-booked) (117.4) (123.2) (5.8) 2 Deferred tax liabilities 15.7 14.4 (1.2) Gains on establishment of retirement benefit trusts 12.9 11.6 (1.3) Unrealized gains on available-for-sale securities
2.7 2.8 0.1 1-2 Net deferred tax assets 268.9 237.9 (31.0)
(Yen bn) Estimated profit, based on our "Financial Health Improvement Plan"*1 Adjusted amount Estimated profit for DTAs Assumption for estimation 5 yrs total 5 yrs total Pre-provision profit 1,200.0 (553.0) 647.0 Approx. 130yen bn p.a. Net income before taxes 1,050.0 (594.0) a 456.0 Approx. 90yen bn p.a. Adjustment on tax account b 122.1 Taxable income before adjustments a+b 578.1 Approx. 115yen bn p.a.
Estimation of CMTB’s Taxable Income before Adjustments (5 Years Total)
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Mitsui Trust Financial Group
Continue to keep the 10% level
(Yen bn) End balance chg. [Risk assets chg.] Increase of high yield assets
+540 [+425]
Housing loans
+230 [+115]
Non-recourse loans
+120 [+120]
Alternative investments
+190 [+190]
Others
(193) [(193)]
Total
+347 [+232]
(Yen bn) a b c:b-a d:Estimate e:d-b MTH, Consolidated 3/04 9/04 Change 3/05 Change Tier1
559.1 593.6 34.5 630.0 36.4
Tier2
386.3 359.5 (26.8) 330.0 (29.5)
Risk-weighted assets
9,307.3 9,468.0 160.7 9,700.0 232.0
Capital adequacy ratio
10.14% 10.03% (0.11)%
Tier1 ratio
6.00% 6.27% 0.26%
Capital Adequacy Ratio (MTH, Consolidated)
30
Mitsui Trust Financial Group This material contains certain forward-looking statements. These statements are not guarantees of future performance, and involve risks and uncertainties. Actual results may differ from these forward-looking statements contained in the present material, due to various factors, including, but not limited, to changes in