Foreign Banks in Japan Survey 2016

Transcription

1 Foreign s in Japan Survey 2016 kpmg.com/jp/fsj-en

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3 Foreign s in Japan Survey About KPMG KPMG Global Financial Services KPMG Global Financial Services provides professional services to clients who can benefit from the collective knowledge and capabilities of our 155 member firms across the globe. KPMG Global Financial Services has more than 34,000 partners and professionals across our global network, providing audit, tax and advisory services to the retail banking, corporate and investment banking, investment management and insurance sectors. Financial Services in Japan KPMG Financial Services in Japan, with over 1,200 audit, tax and advisory professionals servicing the financial services industry, has a long history of assisting both Japanese and foreign financial institutions to achieve their business objectives, in the Japanese market and beyond. KPMG in Japan leverages the scope and strength of KPMG Global Financial Services practice, offering professional services to a number of major organizations in the financial services industry in areas such as capital and liquidity management, risk management, transaction and post-acquisition assistance, as well as dealing with the changing regulatory landscape across multiple time zones and several languages. We believe our commitment to the industry and our passion in serving our clients to the very best of our ability help make us stand out. We would welcome the opportunity to discuss how KPMG can service you to achieve your business objectives. Should you require further information about our Financial Services practice, please contact your primary service professional at KPMG or Mr. Hiroyuki Yamada, Head of KPMG Financial Services Japan, at: KPMG AZSA LLC Financial Services OTEMACHI FINANCIAL CITY South Tower 1-9-7, Otemachi, Chiyoda-ku, Tokyo, Japan Tel: (81 3) Fax: (81 3) financialservices@jp.kpmg.com

4 2 Foreign s in Japan Survey 2016 Contents About KPMG 1 Foreign s: About this Survey 3 Items of Note 3 Summary of s 4 Summary of Financial Highlights 5 Financial Highlights by 6 Ranking by Total Assets 16 Ranking by Ordinary Earnings (Losses) 17 Ranking by Expense/Income Ratio 18 KPMG Japan Our Services 19

5 Foreign s in Japan Survey Foreign s About this Survey KPMG is delighted to release our annual survey of the published financial statements of foreign banks operating in Japan. The financial information included in this survey represents the English translation of the condensed balance sheets of fifty-five foreign banks registered in Japan and their related condensed statements of income as of and for the year ended March 31, Among the fifty-five foreign banks, Citibank Japan Ltd. and Shinhan Japan are incorporated locally, while the remaining foreign banks operate as branches in Japan. The condensed financial statements are prepared and published in accordance with the ing Act of Japan requirements. Similar to previous surveys, all financial information is extracted principally from publicly available information, specifically The Nikkan Kogyo Shimbun, Fuji Sankei Business i. and the respective banks webpage, with the exception of certain information voluntarily provided by banking survey participants. We wish to thank the survey participants for their valuable contribution. Please note there may be revisions to the published financial information subsequent to March 31, The banks are listed in alphabetical order and include rankings by total assets, by ordinary earnings (losses), and by expense/income ratio. In accordance with the ing Act of Japan, the foreign banks financial statements are presented in millions of yen. This survey is part of a comprehensive series of publications issued globally by KPMG s Financial Services practice. Items of Note Changes in foreign banks during the year During the year ended March 31, 2016, the number of foreign banks in Japan has decreased by one to fifty-five as a result of the merger of two banks. The change in foreign banks operating in Japan is as follows: Change of name by merger KEB Hana (Changed after the merger of Korea Exchange and Hana ) Other Foreign banks are required to provide information about non-performing loans in the notes to their financial statements. Certain banks did not present this information, indicating that there were no non-performing loans to be reported. For comparison purposes, the nonperforming loans section is left blank for those banks that did not present such information. Effective April 1, 2014, branches of foreign banks are required to retain assets of JPY 2,000 million in Japan as Brought-in capital in the balance sheet. The concept of Brought-in capital was newly established as a replacement for Legal earned reserve, and the outstanding balance of Legal earned reserve as of March 31, 2014 was fully transferred to the Brought-in capital. However, if Legal earned reserve of a branch as of March 31, 2014 was less than JPY 2,000 million, a transitional provision permits the branch to fulfill the requirement by March 31, Accordingly, branches of foreign banks that have Brought-in capital less than JPY2,000 million as of March 31, 2016 are in a transition process and are required to increase the Brought-in capital to the required amount by March 31, 2017.

6 4 Foreign s in Japan Survey 2016 Summary of s Page Page AGRICULTURAL BANK OF CHINA LIMITED 6 ING N.V. 11 Australia and New Zealand ing Group Limited 6 Intesa Sanpaolo S.p.A. 11 Banco Bilbao Vizcaya Argentaria 6 Itaú Unibanco S.A. 11 BANCO DO BRASIL S.A. 6 JPMorgan Chase, N.A 11 Bangkok Public Company Limited 7 KEB Hana 11 of America, N.A. 7 Kookmin 12 BANK OF CHINA LIMITED 7 Korea Development, The 12 of Communications 7 Mega International Commercial Co.,Ltd 12 of India 7 Metropolitan and Trust Company 12 of New York Mellon, The 7 National Australia Limited 13 of Taiwan 7 National of Pakistan 13 Barclays PLC 8 Oversea-Chinese ing Corporation Limited 13 BNP PARIBAS 8 PHILIPPINE NATIONAL BANK 13 Chang Hwa Commercial 8 PT. Negara Indonesia (Persero) Tbk 13 China Construction 8 Royal of Canada 13 Citibank Japan Ltd. 9 Royal of Scotland plc, The 13 COMMERZBANK AKTIENGESELLSCHAFT 9 Shinhan Japan 14 Commonwealth of Australia 9 Société Générale 14 Crédit Agricole Corporate and Investment 9 Standard Chartered 14 CREDIT SUISSE AG 9 State of India 14 CTBC Co., Ltd. 9 State Street and Trust Company 15 DBS BANK LTD. 9 UBS AG 15 DEPFA BANK plc 10 UniCredit AG 15 Deutsche AG 10 Union de Banques Arabes et Françaises 15 First Commercial 10 UNITED OVERSEAS BANK 15 Hongkong and Shanghai ing Corporation 10 Wells Fargo, National Association 15 Limited, The INDUSTRIAL AND COMMERCIAL BANK OF 11 WOORI BANK 15 CHINA LIMITED Industrial of Korea 11

7 Foreign s in Japan Survey Summary of Financial Highlights Financial statements Total of the fifty-five banks as of 3/31/16 Average as of 3/31/16 Total of the fifty-six banks as of 3/31/15 Average as of 3/31/15 Balance Sheet Assets Cash on hand and due from banks 25,503, ,707 21,631, ,282 Call loans 1,384,786 25,178 2,413,759 43,103 Securities purchased under agreements to resell 1,121,214 20, ,620 16,315 Cash collateral paid for security borrowing 2,943,078 53,511 2,109,053 37,662 Monetary claims purchased 146,618 2, ,569 3,421 Specific transaction accounts assets 1,258,230 22,877 1,698,491 30,330 Money in trusts 1, , Securities 1,943,704 35,340 2,258,704 40,334 Loans and discounts 6,800, ,636 7,108, ,941 Foreign exchange accounts 1,050,366 19,098 1,304,163 23,289 Sundry accounts 2,404,137 43,712 2,923,351 52,203 Property, plant and equipment 31, , Intangible assets 8, , Prepaid pension expense Deferred tax assets 26, , Customers' liability under guarantees and acceptances 1,157,966 21,054 1,321,701 23,602 Reserve for loan losses (41,301) (751) (40,425) (722) Allowance for losses on investment (13) (0) (56) (1) Head office and branches interoffice receivables 5,962, ,408 8,734, ,975 Total assets 51,703, ,072 52,645, ,100 Liabilities and Net assets Deposits 11,712, ,962 13,312, ,721 Negotiable certificates of deposit sold 421,850 7, ,558 15,278 Call money 1,485,720 27,013 2,199,934 39,285 Securities sold under agreements to repurchase 7, , Cash collateral received for security lending 25, Commercial paper 368,515 6, ,564 12,278 Specific transaction accounts liabilities 1,258,463 22,881 1,555,340 27,774 Borrowed money 3,195,303 58,096 3,875,007 69,197 Foreign exchange accounts 1,076,137 19,566 1,092,240 19,504 Sundry accounts 3,178,432 57,790 4,104,581 73,296 Bonus allowance 5, , Retirement benefit obligation 12, , Deferred tax liabilities 2, , 's liability under guarantees and acceptances 1,157,966 21,054 1,321,201 23,593 Head office and branches interoffice payables 27,209, ,721 23,089, ,315 Sub-total 51,119, ,442 52,125, ,814 Capital stock 138,100 69, ,100 69,050 Capital surplus/ reserve 136,100 68, ,100 68,050 Brought-in capital 134,043 2, ,156 2,225 Legal earned reserve 2,000 1, ,000 1,000 Retained earnings (deficit) 165,587 3, ,054 2,126 Unrealized gains (losses) on available-for-sale securities 6, , Deferred hedge gains (losses) 2, (212) (4) Total liabilities and Net assets 51,703, ,072 52,645, ,100 Income statement Ordinary income: Income on operated funds 303,905 5, ,216 5,986 Including:[Interest on loans] [140,850] [2,561] [133,001] [2,375] [Interest and dividends on securities] [10,021] [182] [11,917] [213] Commission income 73,415 1,335 78,576 1,403 Specific transaction accounts income 29, ,289 2,987 Other operating income 102,910 1,871 87,510 1,563 Other ordinary income 13, , Total ordinary income 522,958 9, ,476 12,187 Ordinary expenses: Funding cost 190,226 3, ,540 3,331 Including:[Interest on deposits] [53,169] [967] [52,556] [939] Commission expenses 14, , Specific transaction accounts losses , Other operating expenses 29, ,295 3,077 General and administrative expenses 162,495 2, ,992 3,196 Other ordinary expenses 10, , Total ordinary expenses 407,732 7, ,728 10,138 Ordinary earnings (losses) 115,204 2, ,724 2,049 Extraordinary profits 42, Extraordinary losses 2, , Earnings (losses) before income taxes 155,409 2, ,057 2,001 Income taxes-current 48, , Income taxes-deferred 7, , Net earnings (losses) 99,338 1,806 62,446 1,115 * 1 * 1 * 3 * 1 Note ( * 1) : Average of two banks - which are incorporated in Japan Note ( * 2) : Average of fifty-three banks Note ( * 3) : Average of fifty-four banks

8 6 Foreign s in Japan Survey 2016 Foreign s in Japan Survey Financial Highlights by Financial statements AGRICULTURAL BANK OF CHINA LIMITED Australia and New Zealand ing Group Limited Banco Bilbao Vizcaya Argentaria BANCO DO BRASIL S.A. Bangkok Public Company Limited of America, N.A. BANK OF CHINA LIMITED of Communications of India of New York Mellon, The of Taiwan Balance Sheet Assets Cash on hand and due from banks 50,705 1,299,762 2,052 38,764 21,829 1,272, , ,331 76, ,203 2,469 Call loans 26, ,594-93,030 16, ,266 Securities purchased under agreements to resell ,550 - Cash collateral paid for security borrowing ,637 - Monetary claims purchased - 6, Specific transaction accounts assets , Money in trusts Securities 42,972-5,872 12, ,575 1,570-31,706 Loans and discounts 48, ,679 42, ,042 32, , , , ,101 2,025 29,745 Foreign exchange accounts 4,087 8, , , ,440 86,262 1, Sundry accounts 6,452 66, , ,225 12,159 4,593 1,122 1, Property, plant and equipment , , Intangible assets Prepaid pension expense Deferred tax assets , , Customers' liability under guarantees and acceptances - 27,847 8,635 1, ,383 32,669 4,958 30, Reserve for loan losses (102) (321) - (9) (812) - (5,333) (551) (9,456) (3) (651) Allowance for losses on investment Head office and branches interoffice receivables 418, , , ,593 74, ,210 61,830 5, Total assets 597,882 2,082,490 59, ,439 94,889 1,881,940 1,459,831 1,275, ,409 1,649,854 83,451 Liabilities and Net assets Deposits , ,448 36, , ,300 54, ,807 68,070 2,448 Negotiable certificates of deposit sold 10, , ,319 2, Call money 1,685 15,344-3, , ,727 1,126-46,841 Securities sold under agreements to repurchase Cash collateral received for security lending Commercial paper 31, ,935 11, Specific transaction accounts liabilities Borrowed money 412, , ,441 73, Foreign exchange accounts - 0-4, ,337 62, ,725 - Sundry accounts 5,191 67, , ,652 16,144 5,605 2,136 1,522 1,686 Bonus allowance , Retirement benefit obligation Deferred tax liabilities 's liability under guarantees and acceptances - 27,847 8,635 1, ,383 32,669 4,958 30, Head office and branches interoffice payables 129, ,524 48,562 5,307 54,940 1,082, , ,720 41,634 1,501,620 29,471 Sub-total 591,456 2,073,741 57, ,113 92,199 1,880,284 1,429,012 1,264, ,705 1,644,617 80,497 Capital stock Capital surplus/ reserve Brought-in capital 1,500 2,000 1,500 2,621 6,503 2,000 16,000 2,000 2,071 2,048 3,000 Legal earned reserve Retained earnings (deficit) 4,615 6, ,710 (3,813) (343) 14,793 8,615 8,514 3,188 (70) Unrealized gains (losses) on available-for-sale securities (27) (6) Deferred hedge gains (losses) Total liabilities and Net assets 597,882 2,082,490 59, ,439 94,889 1,881,940 1,459,831 1,275, ,409 1,649,854 83,451 Income statement Ordinary income: Income on operated funds 12,931 8, ,405 1,199 4,451 31,512 11,473 7,702 7,209 2,507 Including:[Interest on loans] [665] [3,559] [843] [7,457] [1,000] [3,465] [18,941] [3,409] [6,632] [107] [761] [Interest and dividends on securities] [792] [-] [128] [-] [1] [-] [37] [368] [89] [-] [1,513] Commission income 28 1, , ,386 3,419 1, Specific transaction accounts income Other operating income 277 8, , , , Other ordinary income Total ordinary income 13,250 18,334 1,098 13,427 2,112 9,182 35,764 14,453 8,688 8,629 3,734 Ordinary expenses: Funding cost 8,933 8, , ,906 16,812 7,941 3,458 2,855 1,060 Including:[Interest on deposits] [0] [6,140] [-] [1,533] [64] [36] [1,121] [986] [2,121] [33] [4] Commission expenses , Specific transaction accounts losses Other operating expenses , General and administrative expenses 893 4, , ,945 2,746 1, , Other ordinary expenses , Total ordinary expenses 9,905 12,717 1,233 9,510 1,340 8,156 24,266 9,198 9,089 5,151 2,244 Ordinary earnings (losses) 3,345 5,616 (134) 3, ,026 11,498 5,255 (401) 3,477 1,489 Extraordinary profits Extraordinary losses Earnings (losses) before income taxes 3,345 5,616 (134) 3, ,026 11,498 5,254 (401) 3,392 1,489 Income taxes-current 1,083 1, , ,694 1,598 1,346 1, Income taxes-deferred (1,535) 28 - Net earnings (losses) 2,262 3,602 (135) 2, ,091 3,572 (212) 1,850 1,126 Information on non-performing loans: rupt loans , Non-accrual loans , Past due loans (3 months or more) , Restructured loans , , Total non-performing loans , ,

9 8 Foreign s in Japan Survey 2016 Foreign s in Japan Survey Financial statements Barclays PLC BNP PARIBAS Chang Hwa Commercial China Construction Citibank Japan Ltd. COMMERZBANK AKTIENGESELLSCHAFT Commonwealth of Australia Crédit Agricole Corporate and Investment CREDIT SUISSE AG CTBC Co., Ltd. DBS BANK LTD. Balance Sheet Assets Cash on hand and due from banks 122,080 3,822,207 6, ,955 1,942, , ,329 1,490, ,620 3,045 2,929 Call loans ,684 14, Securities purchased under agreements to resell , Cash collateral paid for security borrowing 362, , ,286-36, Monetary claims purchased - 128, , Specific transaction accounts assets 117, , , Money in trusts , Securities 466, ,533-6, ,874 5, , ,433 60, Loans and discounts 594, ,120 34, , , ,451 98, ,688 76, , ,999 Foreign exchange accounts 2,377 17, ,499 6, , , Sundry accounts 66, , , ,894 17,794 3,688 19,197 8, Property, plant and equipment Intangible assets , , Prepaid pension expense Deferred tax assets 145 1, , Customers' liability under guarantees and acceptances - 183, , ,109 9, ,079-1,512 - Reserve for loan losses (99) (562) (356) (864) (981) - (316) (204) - (265) (1,809) Allowance for losses on investment Head office and branches interoffice receivables 186, , ,175-69,886 1, , ,217-1,543 Total assets 1,916,835 5,424,359 41,483 1,709,532 3,404, , ,250 2,802,678 1,041, , ,135 Liabilities and Net assets Deposits 57,534 1,213,823 9,882 28,003 1,985,244 5,983 1,861 1,179, ,371 30,434 - Negotiable certificates of deposit sold - 304, Call money ,000 5,100-2,811-4,851 1, ,000 10,400 - Securities sold under agreements to repurchase , Cash collateral received for security lending , Commercial paper , , Specific transaction accounts liabilities 117, , , Borrowed money 5, , , , ,707 12,500 17,500 - Foreign exchange accounts - 3, , , Sundry accounts 118, , , ,969 6,692 15,430 10, ,869 1, Bonus allowance Retirement benefit obligation 528 2, , Deferred tax liabilities , 's liability under guarantees and acceptances - 183, , ,109 9, ,079-1,512 - Head office and branches interoffice payables 1,612,711 2,603,267 24, , , ,127 1,001, , ,950 Sub-total 1,911,693 5,408,458 39,847 1,696,013 3,128, , ,395 2,789,944 1,030, , ,422 Capital stock , Capital surplus/ reserve , Brought-in capital 2,000 2,000 2,000 2,421-2,000 2,094 2,897 2,000 1,500 2,000 Legal earned reserve , Retained earnings (deficit) 2,592 13,799 (363) 11,151 29,159 1,412 1,257 8,989 7,163 1,643 1,713 Unrealized gains (losses) on available-for-sale securities (4) - - Deferred hedge gains (losses) (410) (70) - (95) - (201) , Total liabilities and Net assets 1,916,835 5,424,359 41,483 1,709,532 3,404, , ,250 2,802,678 1,041, , ,135 Income statement Ordinary income: Income on operated funds 3,375 13, ,381 20,056 3,696 5,599 12,198 5,732 2,143 3,431 Including:[Interest on loans] [611] [7,679] [692] [11,593] [6,956] [2,596] [2,728] [4,725] [1,008] [2,142] [3,405] [Interest and dividends on securities] [74] [27] [-] [74] [469] [70] [547] [317] [(13)] [-] [24] Commission income 2,737 4, ,265 1, , Specific transaction accounts income 1, Other operating income 15,748 18, , Other ordinary income , Total ordinary income 23,465 36, ,831 53,298 5,645 5,798 17,020 5,885 2,478 3,453 Ordinary expenses: Funding cost 13,056 20, ,610 7, ,153 5,596 1, ,918 Including:[Interest on deposits] [37] [6,174] [10] [228] [7,689] [-] [41] [1,879] [285] [50] [-] Commission expenses 1, , Specific transaction accounts losses Other operating expenses ,212-2 General and administrative expenses 4,478 6, ,316 45,206 1, ,974 2, Other ordinary expenses Total ordinary expenses 19,372 27, ,044 55,723 3,609 2,847 10,299 5,431 1,393 2,788 Ordinary earnings (losses) 4,092 8, ,786 (2,424) 2,036 2,951 6, , Extraordinary profits , Extraordinary losses Earnings (losses) before income taxes 4,092 8, ,786 39,345 2,034 2,951 6, , Income taxes-current 936 3, ,616 12,832 1, Income taxes-deferred (3) (69) 682 2, (47) (174) Net earnings (losses) 2,595 4, ,062 25,655 1,040 1,870 4, Information on non-performing loans: rupt loans Non-accrual loans - 2, , Past due loans (3 months or more) Restructured loans Total non-performing loans - 2, ,

10 10 Foreign s in Japan Survey 2016 Foreign s in Japan Survey Financial statements DEPFA BANK plc Deutsche AG Balance Sheet First Commercial Hongkong and Shanghai ing Corporation Limited, The INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED Industrial of Korea ING N.V. Intesa Sanpaolo S.p.A. Itaú Unibanco S.A. Assets Cash on hand and due from banks 3, ,005 6,698 1,127,955 1,332,201 2, ,503 36,813 2,153 2,475,570 14,943 Call loans , , ,952 - Securities purchased under agreements to resell , Cash collateral paid for security borrowing - 1, ,046,156 - Monetary claims purchased , Specific transaction accounts assets - 137, , ,452 - Money in trusts Securities - 31,429-47,376 30,982-15, , Loans and discounts - 236,238 36, , ,139 16, ,321 54,118-16,727 59,724 Foreign exchange accounts - 60, ,782 62,903 23, , ,849 24,716 Sundry accounts , ,124 6, , ,632 3,719 Property, plant and equipment , Intangible assets Prepaid pension expense Deferred tax assets , Customers' liability under guarantees and acceptances , , ,216-2,621 8,909 Reserve for loan losses - (1,015) (521) (90) (562) (525) (154) (124) - (50) (1,171) Allowance for losses on investment Head office and branches interoffice receivables - 249, , ,602 15,969 10,025 5,148 10,085 11,226 19,608 Total assets 4,182 1,673,008 43,792 1,857,534 2,393,531 58,192 1,098, ,643 13,014 5,728, ,797 Liabilities and Net assets Deposits - 301,877 7, , ,002 34,740 72,330 1,848 10, ,110 34,292 Negotiable certificates of deposit sold , ,800 Call money ,900-7, Securities sold under agreements to repurchase Cash collateral received for security lending Commercial paper ,521-26, Specific transaction accounts liabilities - 122, , ,717 - Borrowed money - 44,000-30,000 18,000 2,000 13, ,730 Foreign exchange accounts - 86, ,822 21, , Sundry accounts , ,672 99, , ,908 3,808 Bonus allowance Retirement benefit obligation Deferred tax liabilities 's liability under guarantees and acceptances , , ,216-2,621 8,909 Head office and branches interoffice payables - 627,150 10, ,820 1,336,750 18, ,214 89, ,938,848 52,607 Sub-total 1,069 1,667,199 43,157 1,857,204 2,374,867 56,027 1,087,555 98,225 11,272 5,726, ,875 Capital stock Capital surplus/ reserve Brought-in capital 2,000 2,000 2,000 2,000 2,000 2,000 2,568 2,736 4,825 2,000 3,511 Legal earned reserve Retained earnings (deficit) 1,113 2,578 (1,364) (1,674) 17, ,511 2,680 (3,083) (1,877) 411 Unrealized gains (losses) on available-for-sale securities (494) ,248 - Deferred hedge gains (losses) - 1, Total liabilities and Net assets 4,182 1,673,008 43,792 1,857,534 2,393,531 58,192 1,098, ,643 13,014 5,728, ,797 Income statement Ordinary income: Income on operated funds 136 7, ,216 17,843 1,492 6, ,067 1,730 Including:[Interest on loans] [60] [5,313] [844] [2,018] [3,915] [566] [4,392] [517] [-] [434] [1,131] [Interest and dividends on securities] [-] [717] [-] [292] [1,177] [-] [19] [-] [-] [435] [3] Commission income 4 6, ,150 1, , , Specific transaction accounts income , ,458 - Other operating income 806 6, , , Other ordinary income , Total ordinary income ,630 1,014 14,301 27,086 2,023 7, ,708 3,003 Ordinary expenses: Funding cost 118 5, ,115 17, , , Including:[Interest on deposits] [-] [493] [11] [602] [12,590] [88] [67] [0] [160] [329] [189] Commission expenses 4 1, Specific transaction accounts losses Other operating expenses - 2, ,011 - General and administrative expenses 812 6, ,246 1, , ,483 1,097 Other ordinary expenses Total ordinary expenses , ,916 19, , ,282 1,863 Ordinary earnings (losses) 11 4, ,384 7,892 1,277 2, (256) 1,426 1,140 Extraordinary profits Extraordinary losses Earnings (losses) before income taxes 11 4, ,510 7,892 1,297 2, (358) 1,426 1,181 Income taxes-current 1 1, , Income taxes-deferred (63) Net earnings (losses) 10 2, ,430 4, , (359) 1, Information on non-performing loans: rupt loans Non-accrual loans - - * , Past due loans (3 months or more) - 4, Restructured loans ,838 Total non-performing loans - 4, ,020 2, ,842 Note ( * ) Also includes JPY 155 million, which was separately disclosed as De facto rupt Loans by the bank. JPMorgan Chase, N.A KEB Hana

11 12 Foreign s in Japan Survey 2016 Foreign s in Japan Survey Financial statements Kookmin Korea Development, The Mega International Commercial Co.,Ltd Metropolitan and Trust Company National Australia Limited National of Pakistan Oversea-Chinese ing Corporation Limited PHILIPPINE NATIONAL BANK PT. Negara Indonesia (Persero) Tbk Royal of Canada Royal of Scotland plc, The Balance Sheet Assets Cash on hand and due from banks 4,543 1,205 71,051 2,074 75,348 32,920 5,404 2,126 4, , ,060 Call loans - 10, ,136 Securities purchased under agreements to resell Cash collateral paid for security borrowing Monetary claims purchased Specific transaction accounts assets ,663 Money in trusts Securities - 11,872 1, ,836-10, , Loans and discounts 12,761 41, , , ,074 19,776 13,080-6,330 Foreign exchange accounts , ,420 2, ,250 Sundry accounts , , ,595 6,794 Property, plant and equipment Intangible assets Prepaid pension expense Deferred tax assets Customers' liability under guarantees and acceptances , , ,728 Reserve for loan losses (1,980) (594) (482) (2) (234) (24) (463) (4) (53) - (12) Allowance for losses on investment Head office and branches interoffice receivables 21,697 7,106 3, ,229 9, ,138 7, ,978 Total assets 38, , ,355 2, ,839 47,274 52,635 23,124 36, , ,039 Liabilities and Net assets Deposits 18, , ,144 40, ,886 2,690 18,109 Negotiable certificates of deposit sold - 25, Call money , Securities sold under agreements to repurchase Cash collateral received for security lending Commercial paper - 2, Specific transaction accounts liabilities ,664 Borrowed money - 66, , Foreign exchange accounts 0-25, , ,221 Sundry accounts , , ,233 14,357 9,291 Bonus allowance Retirement benefit obligation Deferred tax liabilities 's liability under guarantees and acceptances , , ,728 Head office and branches interoffice payables 14,958 22, , ,289 2,527 47,815 19,955 23, , ,841 Sub-total 34, , , ,152 44,622 49,875 21,484 33, , ,730 Capital stock Capital surplus/ reserve Brought-in capital 2,952 2,000 2,000 2,000 2,000 2,180 2,000 1,500 2,118 2,000 2,000 Legal earned reserve Retained earnings (deficit) 1, , (312) Unrealized gains (losses) on available-for-sale securities (5) - Deferred hedge gains (losses) (378) Total liabilities and Net assets 38, , ,355 2, ,839 47,274 52,635 23,124 36, , ,039 Income statement Ordinary income: Income on operated funds 1,209 2,160 2, , , ,349 3,198 5,061 Including:[Interest on loans] [788] [1,137] [2,794] [2] [827] [15] [993] [776] [844] [-] [448] [Interest and dividends on securities] [-] [418] [5] [-] [-] [71] [93] [-] [304] [(61)] [-] Commission income Specific transaction accounts income Other operating income Other ordinary income 2, Total ordinary income 3,874 3,625 3, , ,325 1,381 1,687 3,891 5,582 Ordinary expenses: Funding cost 364 1, , ,473 3,746 Including:[Interest on deposits] [210] [92] [30] [0] [2,778] [14] [-] [0] [10] [-] [7] Commission expenses (0) Specific transaction accounts losses Other operating expenses General and administrative expenses , ,935 Other ordinary expenses Total ordinary expenses 984 3,077 1, , ,289 1,533 2,479 6,408 Ordinary earnings (losses) 2, , , ,412 (825) Extraordinary profits Extraordinary losses Earnings (losses) before income taxes 2, , , ,412 (1,729) Income taxes-current Income taxes-deferred Net earnings (losses) 2, , ,331 (1,732) Information on non-performing loans: rupt loans Non-accrual loans Past due loans (3 months or more) Restructured loans Total non-performing loans ,

12 14 Foreign s in Japan Survey 2016 Foreign s in Japan Survey Financial statements Shinhan Japan Société Générale Standard Chartered State of India State Street and Trust Company UBS AG UniCredit AG Union de Banques Arabes et Françaises UNITED OVERSEAS BANK Wells Fargo, National Association WOORI BANK Balance Sheet Assets Cash on hand and due from banks 111,194 1,142,513 1,209,278 22,524 1,278, , ,635 7,305 47,706 43,665 7,151 Call loans 3, , Securities purchased under agreements to resell Cash collateral paid for security borrowing , Monetary claims purchased Specific transaction accounts assets , Money in trusts Securities 22,821 75,753 83,543 17, , Loans and discounts 364,810 63, , , ,198 5, ,807-13,086 Foreign exchange accounts 44,196 1, , , , ,853 12,495 Sundry accounts 2,839 11,382 68,315 3,550 53, , Property, plant and equipment 820 1, Intangible assets Prepaid pension expense Deferred tax assets 99-1,114 1, , Customers' liability under guarantees and acceptances 3,731 1, ,203 21, ,249-2,165 2,298 Reserve for loan losses (3,223) (767) (588) (5,037) - (27) - - (110) - (795) Allowance for losses on investment (13) Head office and branches interoffice receivables - 224, ,923 5,701 7, ,223 3, ,643 Total assets 550,708 1,811,444 1,955, ,661 1,339,643 2,129, ,365 29,114 97,407 50,019 38,125 Liabilities and Net assets Deposits 481, , ,882 76, , ,986-26,834 Negotiable certificates of deposit sold - 2, , Call money - 70, ,526 36,100-20, , Securities sold under agreements to repurchase Cash collateral received for security lending Commercial paper - 16, , Specific transaction accounts liabilities , Borrowed money 20,183 40,710 11, ,967-65, ,000 Foreign exchange accounts 1, , ,289-2, , Sundry accounts 5,187 13,968 59,807 2,614 53, , Bonus allowance Retirement benefit obligation Deferred tax liabilities 's liability under guarantees and acceptances 3,731 1, ,203 21, ,249-2,165 2,298 Head office and branches interoffice payables - 1,277, , ,622 1,285,001 1,452, ,464 10,544 69,128 4,690 4,450 Sub-total 512,946 1,808,140 1,953, ,809 1,338,615 2,130, ,871 27,130 95,340 48,074 36,125 Capital stock 15, Capital surplus/ reserve 15, Brought-in capital - 2,013 2,000 2,000 2,000 2,855 2,682 2,000 1,948 2,000 2,000 Legal earned reserve Retained earnings (deficit) 7,735 (60) (972) (3,655) 811 (16) 119 (54) 0 Unrealized gains (losses) on available-for-sale securities 26 1,351 (310) Deferred hedge gains (losses) - - (181) Total liabilities and Net assets 550,708 1,811,444 1,955, ,661 1,339,643 2,129, ,365 29,114 97,407 50,019 38,125 Income statement Ordinary income: Income on operated funds 9,640 4,073 6,944 9, , Including:[Interest on loans] [7,924] [1,169] [3,047] [6,636] [-] [2,163] [397] [0] [249] [-] [477] [Interest and dividends on securities] [289] [688] [188] [460] [-] [-] [-] [0] [406] [-] [-] Commission income 2,948 1,343 2,202 1, , Specific transaction accounts income , Other operating income , ,530 1, Other ordinary income Total ordinary income 13,527 5,878 11,049 11,034 1,365 16,632 1, ,754 1, Ordinary expenses: Funding cost 2,567 1,272 3,237 5, , Including:[Interest on deposits] [2,449] [410] [2,030] [536] [-] [1,525] [0] [0] [8] [-] [109] Commission expenses Specific transaction accounts losses Other operating expenses General and administrative expenses 4,328 2,046 5,675 1,182 1,123 10, , Other ordinary expenses , Total ordinary expenses 7,355 3,934 9,112 10,098 1,144 12,638 1, ,448 1, Ordinary earnings (losses) 6,171 1,943 1, , Extraordinary profits Extraordinary losses Earnings (losses) before income taxes 6,171 1,943 1, , Income taxes-current 2, , Income taxes-deferred 57 (229) 360 (755) (4) 1, Net earnings (losses) 4,084 1,910 1, , (71) 61 Information on non-performing loans: rupt loans Non-accrual loans 2,489 2, Past due loans (3 months or more) , Restructured loans 2, , Total non-performing loans 5,707 2, ,

13 16 Foreign s in Japan Survey 2016 Ranking by Total Assets Rank Total assets Rank Total assets 1 5,728,192 JPMorgan Chase, N.A ,365 UniCredit AG 2 5,424,359 BNP PARIBAS ,409 of India 3 3,404,342 Citibank Japan Ltd ,839 National Australia Limited 4 2,802,678 Crédit Agricole Corporate and ,135 DBS BANK LTD. Investment 5 2,393,531 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED ,355 Mega International Commercial Co.,Ltd 6 2,129,298 UBS AG ,797 KEB Hana 7 2,082,490 Australia and New Zealand ing ,644 Korea Development, The Group Limited 8 1,955,855 Standard Chartered ,392 CTBC Co., Ltd. 9 1,916,835 Barclays PLC ,643 Intesa Sanpaolo S.p.A. 10 1,881,940 of America, N.A ,407 UNITED OVERSEAS BANK 11 1,857,534 Hongkong and Shanghai ing 39 94,889 Bangkok Public Company Corporation Limited, The Limited 12 1,811,444 Société Générale 40 83,451 of Taiwan 13 1,709,532 China Construction 41 59,753 Banco Bilbao Vizcaya Argentaria 14 1,673,008 Deutsche AG 42 58,192 Industrial of Korea 15 1,649,854 of New York Mellon, The 43 52,635 Oversea-Chinese ing Corporation Limited 16 1,459,831 BANK OF CHINA LIMITED 44 50,019 Wells Fargo, National Association 17 1,339,643 State Street and Trust Company 45 47,274 National of Pakistan 18 1,275,149 of Communications 46 43,792 First Commercial 19 1,098,635 ING N.V ,483 Chang Hwa Commercial 20 1,041,802 CREDIT SUISSE AG 48 38,787 Kookmin ,209 COMMERZBANK 49 38,125 WOORI BANK AKTIENGESELLSCHAFT ,882 AGRICULTURAL BANK OF CHINA LIMITED 50 36,276 PT. Negara Indonesia (Persero) Tbk ,015 Royal of Canada 51 29,114 Union de Banques Arabes et Françaises ,708 Shinhan Japan 52 23,124 PHILIPPINE NATIONAL BANK ,661 State of India 53 13,014 Itaú Unibanco S.A ,250 Commonwealth of Australia 54 4,182 DEPFA BANK plc ,039 Royal of Scotland plc, The 55 2,697 Metropolitan and Trust Company ,439 BANCO DO BRASIL S.A.

14 Foreign s in Japan Survey Ranking by Ordinary Earnings (Losses) Rank Ordinary Earnings (Losses) Rank Ordinary Earnings (Losses) 1 11,498 BANK OF CHINA LIMITED 29 1,084 CTBC Co., Ltd. 2 8,635 BNP PARIBAS 30 1,026 of America, N.A. 3 7,892 INDUSTRIAL AND COMMERCIAL State of India BANK OF CHINA LIMITED 4 7,786 China Construction Bangkok Public Company Limited 5 6,721 Crédit Agricole Corporate and UniCredit AG Investment 6 6,171 Shinhan Japan Oversea-Chinese ing Corporation Limited 7 5,616 Australia and New Zealand ing DBS BANK LTD. Group Limited 8 5,255 of Communications First Commercial 9 4,426 Deutsche AG Korea Development, The 10 4,092 Barclays PLC Chang Hwa Commercial 11 3,994 UBS AG National of Pakistan 12 3,916 BANCO DO BRASIL S.A CREDIT SUISSE AG 13 3,477 of New York Mellon, The UNITED OVERSEAS BANK 14 3,345 AGRICULTURAL BANK OF CHINA Intesa Sanpaolo S.p.A. LIMITED 15 2,951 Commonwealth of Australia State Street and Trust Company 16 2,889 Kookmin PT. Negara Indonesia (Persero) Tbk 17 2,384 Hongkong and Shanghai ing WOORI BANK Corporation Limited, The 18 2,318 ING N.V Union de Banques Arabes et Françaises 19 2,036 COMMERZBANK PHILIPPINE NATIONAL BANK AKTIENGESELLSCHAFT 20 1,943 Société Générale Metropolitan and Trust Company 21 1,936 Standard Chartered Wells Fargo, National Association 22 1,743 National Australia Limited DEPFA BANK plc 23 1,642 Mega International Commercial 51 (134) Banco Bilbao Vizcaya Argentaria Co.,Ltd 24 1,489 of Taiwan 52 (256) Itaú Unibanco S.A. 25 1,426 JPMorgan Chase, N.A 53 (401) of India 26 1,412 Royal of Canada 54 (825) Royal of Scotland plc, The 27 1,277 Industrial of Korea 55 (2,424) Citibank Japan Ltd. 28 1,140 KEB Hana

15 18 Foreign s in Japan Survey 2016 Ranking by Expense/Income Ratio Rank Expense/ Income Ratio Rank Expense/ Income Ratio % Kookmin % AGRICULTURAL BANK OF CHINA LIMITED % First Commercial % UBS AG % Industrial of Korea % BNP PARIBAS % Chang Hwa Commercial % Deutsche AG % National of Pakistan % DBS BANK LTD % Oversea-Chinese ing Corporation % Standard Chartered Limited % Mega International Commercial % UNITED OVERSEAS BANK Co.,Ltd % Commonwealth of Australia % Barclays PLC % Shinhan Japan % Hongkong and Shanghai ing Corporation Limited, The % CTBC Co., Ltd % State Street and Trust Company % UniCredit AG % WOORI BANK % of New York Mellon, The % Korea Development, The % of Taiwan % Union de Banques Arabes et Françaises % Crédit Agricole Corporate and % of America, N.A. Investment % KEB Hana % Metropolitan and Trust Company % Bangkok Public Company % PT. Negara Indonesia (Persero) Limited Tbk % of Communications % State of India % Royal of Canada % CREDIT SUISSE AG % COMMERZBANK % PHILIPPINE NATIONAL BANK AKTIENGESELLSCHAFT % Société Générale % JPMorgan Chase, N.A % BANK OF CHINA LIMITED % Wells Fargo, National Association % Australia and New Zealand ing % DEPFA BANK plc Group Limited % ING N.V % Citibank Japan Ltd % BANCO DO BRASIL S.A % of India % INDUSTRIAL AND COMMERCIAL % Banco Bilbao Vizcaya Argentaria BANK OF CHINA LIMITED % Intesa Sanpaolo S.p.A % Royal of Scotland plc, The % China Construction % Itaú Unibanco S.A % National Australia Limited

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