FINANCIAL SERVICES. Foreign Banks in Japan Survey 2012

Transcription

1 FINANCIAL SERVICES Foreign s in Japan Survey 2012

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3 About KPMG Global Leadership in Financial Services KPMG is a global network of professional firms providing Audit, Tax and Advisory services and industry insight to assist financial institutions manage risks and operate in the dynamic and challenging environment in which they do business. We have 145,000 professionals working in 152 countries worldwide. We use our expertise and insight to cut through complexity and deliver informed perspectives and clear solutions that our clients and stakeholders value. Our client focus, our commitment to excellence, our global mindset and consistent delivery have built trusted relationships, which are at the core of our business and reputation. KPMG Japan KPMG Japan consist of 10 member firms with 6,500 professionals, providing audit, tax and advisory services. With a single management structure over these firms, KPMG Japan can deploy experienced professionals efficiently and rapidly, wherever the client is located. KPMG Financial Services Japan is a cross-functional organization within KPMG Japan and includes over 1,100 Japanese and foreign-certified CPAs, actuaries, and financial and tax advisors with extensive experience in banking, securities, insurance and asset management industries in Japan. Having served as auditor to some of the world s largest Japanese financial institutions, KPMG Japan is increasingly advising financial services clients on issues ranging from tax planning to business and finance transformation, and compliance with critical new regulations. We provide a broad array of services as described in the KPMG Japan - Our Services section of this publication. We believe in our commitment to the industry and our passion in serving our clients to the very best of our ability. We welcome the opportunity to discuss how KPMG Japan member firms can assist you. Should you require further information about KPMG Financial Services Japan, please contact your primary service professional at KPMG or Mr. Hiroyuki Takanami, Head of Financial Services in Japan, at: KPMG AZSA LLC Tel : (81 3) Financial Services Fax: (81 3) Tokyo Sankei Building financialservices@jp.kpmg.com 1-7-2, Otemachi, Chiyoda-ku, Tokyo, Japan KPMG KPMG AZSA AZSA LLC, LLC, a limited a limited liability liability audit audit corporation corporation incorporated incorporated under under the Japanese the Japanese Certified Certified Public Public Accountants Accountants Law and Law a and member a member firm of firm the of KPMG the KPMG network network of independent of independent member member firms firms affiliated affiliated with with KPMG KPMG International International Cooperative Cooperative ( KPMG ( KPMG International ), International ), a Swiss a Swiss entity. entity. All rights All rights reserved. reserved.

4 Contents About KPMG Foreign s: About this Survey 3 Summary of Financial Highlights 5 Financial Highlights by 6 Rankings by Total Assets 16 Rankings by Ordinary Earnings (Loss) 17 Rankings by Expense/Income Ratio 18 KPMG Japan - Our Services 19

5 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 represent English translations of the 31 March 2012 condensed balance sheets for the fifty-nine foreign banks registered in Japan and their related condensed statements of income for the year ended 31 March Among the fifty-nine 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 requirements of the ing Law of Japan. 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 bank s webpage, with the exception of certain information voluntarily provided by the bank survey participants. We wish to thank the survey bank participants for their valued contribution. There may be revisions to the published financial information subsequent to 31 March Items of Note Changes in foreign banks during the year During the year, the number of foreign banks in Japan decreased by one, with the closure of Dexia Credit Local, to fifty-nine banks. Other Foreign banks are required to provide information about nonperforming 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 non-performing loans section is blank for banks that did not present such information. The accounting standards for financial instruments require that all available-for-sale securities be valued at fair value with the change in fair value reflected as a separate component of equity, unrealized gains (losses) on available-forsale securities, net of tax. This item is blank for banks that did not present unrealized gains (losses) on available-for-sale securities on their balance sheets. The banks are listed in alphabetical order and include rankings of the banks by total assets, by ordinary earnings (loss), and by expense/ income ratio. In accordance with the ing Law of Japan, the foreign bank s 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 practices. 3 Foreign s in Japan Survey 2012

6 Page Page 6 Australia and New Zealand ing Group Limited 11 Intesa Sanpaolo S.p.A. 6 Banco Bilbao Vizcaya Argentaria, S.A. 11 Itaú Unibanco S.A. 6 BANCO DO BRASIL S.A. 11 JPMorgan Chase, N.A 6 BANGKOK BANK PUBLIC COMPANY LIMITED 11 KOOKMIN BANK 7 of America, N.A. 11 Korea Development, The 7 BANK OF CHINA LIMITED 11 Korea Exchange 7 BANK OF COMMUNICATIONS 12 Lloyds TSB plc 7 BANK OF INDIA 12 Mega International Commercial Co., Ltd. 7 BANK OF NEW YORK MELLON, THE 12 Metropolitan and Trust Company 7 of Nova Scotia, The 12 National Australia Limited 7 BANK OF TAIWAN 13 National of Pakistan 7 BARCLAYS BANK PLC 13 Oversea-Chinese ing Corp Ltd. 8 BNP PARIBAS 13 PHILIPPINE NATIONAL BANK 8 CHANG HWA COMMERCIAL BANK, LTD. 13 PT. Negara Indonesia (Persero) Tbk 8 China Construction 13 Rabobank Nederland 8 CHINATRUST COMMERCIAL BANK 13 ROYAL BANK OF CANADA 9 Citibank Japan Ltd. 13 Royal of Scotland plc, The 9 COMMERZBANK AG 13 Shinhan Japan 9 Commonwealth of Australia 14 Société Générale 9 Crédit Agricole Corporate and Investment 14 Standard Chartered 9 CREDIT SUISSE AG 14 State of India 9 DBS BANK LTD. 14 State Street and Trust Company 9 DEPFA BANK plc 15 UBS AG 9 Deutsche AG 15 UniCredit AG 10 FIRST COMMERCIAL BANK 15 UNION DE BANQUES ARABES ET FRANCAISES 10 Hana 15 UNITED OVERSEAS BANK LTD. 10 Hongkong and Shanghai ing Corporation Limited, The 15 Wells Fargo, National Association 10 INDUSTRIAL AND COMMERCIAL BANK OF CHINA 15 WestLB AG 11 Industrial of Korea 15 WOORI BANK 11 ING N.V. 4 Foreign s in Japan Survey 2012

7 Summary of Financial Highlights Financial statements (millions of yen) Note (*) : Average of two banks - Citibank Japan Ltd. and Shinhan Japan. Total of the fifty-nine banks as of 3/31/12 Average as of 3/31/12 5 Foreign s in Japan Survey 2012 Total of the sixty banks as of 3/31/11 Average as of 3/31/11 Assets Cash on hand and due from banks 7,639, ,484 7,542, ,708 Call loans 2,543,937 43,118 2,657,724 44,295 Securities purchased under agreements to resell 778,718 13, Cash collateral paid for security borrowing 2,813,592 47,688 1,600,946 26,682 Monetary claims purchased 62,003 1,051 98,059 1,634 Specific transaction accounts assets 2,387,656 40,469 2,836,121 47,269 Money in trusts 1, Securities 5,099,851 86,438 6,470, ,847 Loans and discounts 4,780,330 81,023 5,222,580 87,043 Foreign exchange accounts 844,367 14, ,939 12,832 Sundry accounts 1,895,938 32,135 2,043,367 34,056 Property, plant and equipment 37, , Intangible assets 9, , Deferred tax assets 33, , Customers' liability under guarantees and acceptances 1,061,924 17, ,309 14,338 Reserve for loan losses (65,377) (1,108) (61,907) (1,032) Allowance for losses on investment (14,241) (241) (12,619) (210) Head office and branches 6,354, ,707 5,709,286 95,155 Total assets 36,263, ,636 35,830, ,174 Liabilities Deposits 9,842, ,830 8,842, ,383 Negotiable certificates of deposit sold 903,120 15, ,650 11,811 Call money 2,276,208 38,580 2,353,419 39,224 Securities sold under agreements to repurchase 262,185 4,444 9, Cash collateral received for security lending 113,946 1,931 30, Commercial paper 215,299 3, ,421 5,140 Specific transaction accounts liabilities 1,206,835 20,455 1,212,687 20,211 Borrowed money 2,402,948 40,728 2,393,992 39,900 Foreign exchange accounts 332,365 5, ,956 4,149 Sundry accounts 2,731,142 46,291 2,292,735 38,212 Bonus allowance 5, , Retirement benefit obligation 15, , Deferred tax liabilities 1, 's liability under guarantees and acceptances 1,061,924 17, ,309 14,338 Head office and branches 14,509, ,923 16,259, ,994 Sub-total 35,881, ,154 35,546, ,434 Capital stock 138,100 69,050* 138,100 69,050* Capital surplus/ reserve 136,100 68,050* 136,100 68,050* Legal earned reserve and retained earnings/ (deficit) 105,820 1,794 23, Unrealized gains on available-for-sale securities 14, Deferred hedge losses (11,723) (199) (13,835) (231) Total liabilities 36,263, ,636 35,830, ,174 Income statement Ordinary income: Income on operating funds 267,434 4, ,388 4,523 Including: [Interest on loans] [101,514] [1,721] [105,542] [1,759] [Interest and dividends on securities] [30,908] [524] [44,288] [738] Commission income 72,868 1,235 77,998 1,300 Specific transaction accounts income 26, , Other operating income 101,108 1, ,401 2,123 Other ordinary income 9, , Total ordinary income 477,206 8, ,902 8,398 Ordinary expenses: Funding cost 147,130 2, ,637 2,527 Including: [Interest on deposits] [47,908] [812] [42,251] [704] Commission expenses 21, , Specific transaction accounts losses 8, , Other operating expenses 42, ,075 2,185 General and administrative expenses 180,945 3, ,576 3,160 Other ordinary expenses 17, , Total ordinary expenses 418,315 7, ,456 8,641 Ordinary earnings (loss) 58, (14,568) (243) Extraordinary profits 1, , Extraordinary losses 7, , Earnings before income taxes 52, , Income taxes-current 23, , Income taxes-deferred 3, , Net earnings (loss) 25, (31,122) (519)

8 Financial Highlights by Financial statements (millions of yen) Australia and New Zealand ing Group Limited Banco Bilbao Vizcaya Argentaria, S.A. BANCO DO BRASIL S.A. BANGKOK BANK PUBLIC COMPANY LIMITED of America, N.A. BANK OF CHINA LIMITED BANK OF COMMUNICATIONS BANK OF INDIA BANK OF NEW YORK MELLON, THE of Nova Scotia, The BANK OF TAIWAN Assets Cash on hand and due from banks 676, ,541 16,313 30,825 61,919 7,757 8, ,076 3,093 2, ,774 Call loans , ,642 - Securities purchased under agreements to resell Cash collateral paid for security borrowing ,583 Monetary claims purchased 17, Specific transaction accounts assets , ,750 Money in trusts Securities - 8, ,264 8,496 3, , ,252 Loans and discounts 44,365 64, ,708 31,624 44, ,589 76,721 96,199 7,890 50,723 38, ,958 Foreign exchange accounts 8,975 1,068 2, ,393 9,595 20,601 2,078 1, Sundry accounts 12, ,869 1,204 36,190 8, ,413 Property, plant and equipment , , , Intangible assets Deferred tax assets , , Customers' liability under guarantees and acceptances 47,410 7,086 6, ,896 30,215 6,069 9,256 5,954 5, Reserve for loan losses (388) (495) (79) (1,741) - (3,165) (738) (2,933) (60) - (2,044) (78) Allowance for losses on investment Head office and branches 444, , , , , , ,553 Total assets 1,251,751 81, ,885 52, ,054 1,254, , , ,496 63,102 67,319 2,971,595 Liabilities Deposits 661, ,625 5,859 86, ,792 16,557 67,019 93,976 2,616 7, ,315 Negotiable certificates of deposit sold Call money 16, ,400-32, ,639 7,665-5,136 35, ,742 Securities sold under agreements to repurchase Cash collateral received for security lending Commercial paper Specific transaction accounts liabilities ,750 Borrowed money , , ,200-46,013 Foreign exchange accounts 0-1, ,847 19, , Sundry accounts 15, , ,827 9,176 1,117 1, , ,057 Bonus allowance Retirement benefit obligation ,280 Deferred tax liabilities 's liability under guarantees and acceptances 47,410 7,086 6, ,896 30,215 6,069 9,256 5,954 5, Head office and branches 507,734 73,021 43,528 36,793 59, ,337 97,219 27,102 72,085 44,285 27,856 2,440,858 Sub-total 1,249,415 81, ,107 55, ,246 1,247, , , ,791 61,066 71,833 2,966,395 Capital stock Capital surplus/ reserve Legal earned reserve 1, , ,318 2, , ,000 Retained earnings/ (deficit) ,547 (4,381) (510) 4,498 1,028 6, ,177 (4,638) 1,078 Unrealized gains (losses) on available-for-sale securities (188) 2,060 Deferred hedge gains/ (losses) (36) - - (32) - 61 Total liabilities 1,251,751 81, ,885 52, ,054 1,254, , , ,496 63,102 67,319 2,971,595 Income statement Ordinary income: Income on operating funds 5,867 1,259 4,674 1,036 1,204 13,698 4,099 2, ,581 8,615 Including: [Interest on loans] [822] [1,066] [2,955] [992] [750] [10,208] [831] [2,480] [161] [436] [618] [1,161] [Interest and dividends on securities] [-] [168] [-] [-] [2] [294] [134] [155] [-] [73] [920] [1,746] Commission income ,191 1, ,149 Specific transaction accounts income ,761 Other operating income 6, , ,491 3, ,131 1, ,064 Other ordinary income Total ordinary income 13,272 1,667 6,268 1,555 5,117 18,507 4,577 4,264 1,887 1,830 2,296 23,590 Ordinary expenses: Funding cost 7, , ,529 2,164 1, ,256 Including:[Interest on deposits] [6,307] [0] [567] [5] [131] [406] [18] [1,043] [14] [0] [21] [732] Commission expenses ,852 Specific transaction accounts losses Other operating expenses , General and administrative expenses 3, , ,313 1, , ,537 Other ordinary expenses Total ordinary expenses 11,498 1,229 5,663 1,201 4,843 14,306 3,182 2,246 2, ,339 18,733 Ordinary earnings (loss) 1, ,201 1,395 2,018 (494) 1,337 (43) 4,856 Extraordinary profits Extraordinary losses , Earnings (loss) before income taxes 1, ,201 1,421 2,117 (558) 250 (43) 4,856 Income taxes-current , (162) 1 1 1,576 Income taxes-deferred 28 (14) (9) - - (170) (41) Net earnings (loss) 1, , ,169 (354) 64 (44) 3,130 Notes on non-performing loans: rupt loans ,133 - Non-accrual loans , Past due loans (3 months or more) Restructured loans - 4, ,000 2,105 - Total non-performing loans 107 4,308-4, ,000 4,266 - BARCLAYS BANK PLC 6 Foreign s in Japan Survey Foreign s in Japan Survey 2012

9 Financial statements (millions of yen) BNP PARIBAS CHANG HWA COMMERCIAL BANK, LTD. China Construction CHINATRUST COMMERCIAL BANK Citibank Japan Ltd. COMMERZBANK AG Commonwealth of Australia Crédit Agricole Corporate and Investment Assets Cash on hand and due from banks 592,883 2,451 1, ,926,826 1,760 62, , , , ,762 Call loans 18, ,474-37,256 27, , ,568 Securities purchased under agreements to resell , Cash collateral paid for security borrowing ,038-50, ,403 Monetary claims purchased 4, , ,293 Specific transaction accounts assets , , ,142 Money in trusts Securities 454,552-10, ,775 41, , , ,987 90,233-72,169 Loans and discounts 363,366 13,934 69,315 26, , ,601 10, ,182 42,890 51,915 19, ,046 Foreign exchange accounts ,377 1, , ,536 Sundry accounts 274, ,936 4, ,015 5, ,969 70,284 Property, plant and equipment , Intangible assets , Deferred tax assets 1, , ,761 Customers' liability under guarantees and acceptances 250, , ,197 5, , ,944 48,290 Reserve for loan losses (1,237) (316) (2,307) (377) (4,388) - (18) (7,211) - (1,421) (187) (1,223) Allowance for losses on investment Head office and branches 437,543 12, , ,499 36, ,220 66,828 2, ,943 Total assets 2,397,063 28, ,414 27,416 4,336, , ,803 1,720, , ,491 52,029 2,537,073 Liabilities Deposits 303,462 5,668 36,686 2,510 3,510,460 4,843 26, , ,614 1, ,251 Negotiable certificates of deposit sold 590, , , Call money 222,976 18,900 69,000 21, , , , ,000 Securities sold under agreements to repurchase , Cash collateral received for security lending , Commercial paper , Specific transaction accounts liabilities , , ,721 Borrowed money 328, ,600 3, ,290 52,500-21, ,324 Foreign exchange accounts 1, , ,730 Sundry accounts 421, , ,796 13, ,550 2, , ,979 Bonus allowance Retirement benefit obligation 2, , Deferred tax liabilities 's liability under guarantees and acceptances 250, , ,197 5, , ,944 48,290 Head office and branches 265,698 5, ,575 2, , , , , ,062 13,000 1,382,435 Sub-total 2,386,124 30, ,730 26,994 4,071, , ,954 1,716, , ,019 54,985 2,539,368 Capital stock , Capital surplus/ reserve , Legal earned reserve 2, ,000 1, ,897 1, ,000 Retained earnings/ (deficit) 8,755 (1,494) (2,266) , , (2,460) (1,633) Unrealized gains (losses) on available-for-sale securities (116) - 4, (3,212) Deferred hedge gains/ (losses) (210) - (75) - (4) (754) 550 Total liabilities 2,397,063 28, ,414 27,416 4,336, , ,803 1,720, , ,491 52,029 2,537,073 Income statement Ordinary income: Income on operating funds 20, , ,159 5,251 1,963 12,457 2,329 2, ,668 Including: [Interest on loans] [11,835] [275] [1,107] [479] [4,227] [1,704] [255] [7,129] [580] [884] [508] [3,357] [Interest and dividends on securities] [3,003] [-] [242] [-] [5,044] [204] [470] [1,378] [109] [1,224] [-] [3,000] Commission income 3, ,530 1, , ,444 Specific transaction accounts income , ,161 Other operating income 3, , ,882 Other ordinary income Total ordinary income 27, , ,908 6,410 2,074 16,981 2,844 2,127 1,054 24,280 Ordinary expenses: Funding cost 16, , ,435 3, ,672 1,014 1, ,533 Including:[Interest on deposits] [2,145] [14] [136] [1] [6,377] [35] [100] [1,188] [325] [1] [-] [797] Commission expenses 2, , , Specific transaction accounts losses Other operating expenses 1, ,148 General and administrative expenses 5, ,911 1, ,425 1, ,314 Other ordinary expenses , Total ordinary expenses 26, , ,060 5,474 1,537 18,079 2,885 1,539 1,310 18,391 Ordinary earnings (loss) , (1,098) (40) 588 (255) 5,888 Extraordinary profits Extraordinary losses Earnings (loss) before income taxes , (1,108) (42) 588 (255) 5,888 Income taxes-current (118) , ,209 Income taxes-deferred , (1,740) (1,443) Net earnings (loss) (79) 1, (1,143) (43) 79 (256) 3,121 Notes on non-performing loans: rupt loans , Non-accrual loans , ,797-13, Past due loans (3 months or more) Restructured loans Total non-performing loans , ,185-13, CREDIT SUISSE AG DBS BANK LTD. DEPFA BANK plc Deutsche AG 8 Foreign s in Japan Survey Foreign s in Japan Survey 2012

10 Financial statements (millions of yen) FIRST COMMERCIAL BANK Hana Hongkong and Shanghai ing Corporation Limited, The INDUSTRIAL AND COMMERCIAL BANK OF CHINA Assets Cash on hand and due from banks 1, ,449 3, ,279 5,605 15,811 45, ,855 16,107 Call loans - - 1, , ,717 - Securities purchased under agreements to resell Cash collateral paid for security borrowing , Monetary claims purchased , Specific transaction accounts assets , , Money in trusts Securities ,688 22,814-25, ,574 2,463 19, Loans and discounts 27,005 9, , ,476 31, ,763 56,051-22,110 80,069 31,589 56,160 Foreign exchange accounts 651 7,239 70,451 60,516 23, ,173 7, ,999 5,589 Sundry accounts ,538 1, , , ,341 2,228 Property, plant and equipment , Intangible assets Deferred tax assets 350-2, , Customers' liability under guarantees and acceptances ,092 2, ,920-4, ,341 Reserve for loan losses (229) (145) (156) (1,493) (600) (87) (124) - (410) (1,165) (612) (1,490) Allowance for losses on investment Head office and branches 1,375 16, , ,220 15,525 92,775 11, , ,390 7,729 13,261 40,125 Total assets 30,643 34,248 1,561, ,512 71, ,773 79, ,164 2,934,398 90, , ,829 Industrial of Korea ING N.V. Intesa Sanpaolo S.p.A. Itaú Unibanco S.A. JPMorgan Chase, N.A KOOKMIN BANK Liabilities Deposits 4,812 14, , ,735 42,412 36,234 2,173 16, ,868 25,675 25,926 62,708 Negotiable certificates of deposit sold , ,120 - Call money 23,200 6,000 1,356 97,333 4,500 15, ,574 8,000-1,000 Securities sold under agreements to repurchase ,905 - Cash collateral received for security lending , , Commercial paper ,332-69, Specific transaction accounts liabilities , , Borrowed money - 4,100 62,500-13,232 67, ,200 74,252 18,486 Foreign exchange accounts 11-19,760 1, , ,150 Sundry accounts ,120 5, , , ,266 Bonus allowance Retirement benefit obligation , Deferred tax liabilities 's liability under guarantees and acceptances ,092 2, ,920-4, ,341 Head office and branches 5,649 8, ,252 31,289 10, ,429 64, ,769 1,241,684 10,369 8,854 26,725 Sub-total 33,830 33,144 1,566, ,792 70, ,206 73, ,891 2,928,547 89, , ,888 Capital stock Capital surplus/ reserve Legal earned reserve 242 1,064 2, ,668 2, , ,229 2,011 Retained earnings/ (deficit) (3,429) 39 (7,569) 3, ,898 3,256 (1,747) (900) 475 (744) 934 Unrealized gains (losses) on available-for-sale securities - 22 (35) (257) (4) Deferred hedge gains/ (losses) Total liabilities 30,643 34,248 1,561, ,512 71, ,773 79, ,164 2,934,398 90, , ,829 Income statement Ordinary income: Income on operating funds ,046 9,559 2,091 6,227 1, ,762 3,087 2,114 2,405 Including: [Interest on loans] [548] [353] [4,010] [2,434] [1,140] [3,627] [1,060] [-] [110] [2,958] [772] [1,509] [Interest and dividends on securities] [-] [-] [1,668] [989] [-] [98] [-] [-] [1,401] [69] [694] [23] Commission income , , , Specific transaction accounts income - - 6, Other operating income 7 6 3, , Other ordinary income ,722 Total ordinary income 794 1,092 24,605 10,388 2,511 8,235 1,389 1,440 23,189 3,449 3,201 4,956 Ordinary expenses: Funding cost ,120 4, , , ,483 1,110 Including:[Interest on deposits] [7] [177] [6,358] [3,672] [250] [196] [34] [207] [204] [336] [63] [693] Commission expenses 3 7 1, , Specific transaction accounts losses , Other operating expenses , General and administrative expenses ,900 1, , , Other ordinary expenses , Total ordinary expenses ,238 8,085 1,213 4,713 1,035 1,446 17,695 1,552 2,686 2,390 Ordinary earnings (loss) ,367 2,302 1,298 3, (6) 5,493 1, ,565 Extraordinary profits Extraordinary losses 5 0 5, Earnings (loss) before income taxes (3,757) 2,302 1,301 3, (11) 5,364 1, ,567 Income taxes-current , , , Income taxes-deferred (118) - (2,938) (443) Net earnings (loss) (819) 1, , (15) 2,924 1, ,401 Notes on non-performing loans: rupt loans Non-accrual loans 421* , Past due loans (3 months or more) Restructured loans ,506 1, ,245 Total non-performing loans ,420 1, ,197-4,935 Note (*) : Also include JPY 171 million, which was separately disclosed as "Defacto rupt Loans" by the bank. Korea Development, The Korea Exchange 10 Foreign s in Japan Survey Foreign s in Japan Survey 2012

11 Financial statements (millions of yen) Lloyds TSB plc Mega International Commercial Co., Ltd. Metropolitan and Trust Company National Australia Limited National of Pakistan Oversea-Chinese ing Corp Ltd. PHILIPPINE NATIONAL BANK PT. Negara Indonesia (Persero) Tbk Rabobank Nederland ROYAL BANK OF CANADA Assets Cash on hand and due from banks 3,093 9,451 1,140 16,422 37,361 2,313 1,342 4, ,768 74, , ,351 Call loans - 4, ,206 - Securities purchased under agreements to resell Cash collateral paid for security borrowing , ,250 - Monetary claims purchased ,069 - Specific transaction accounts assets , ,940 - Money in trusts Securities - 1, ,023-4, , ,553 24,770 Loans and discounts 7,649 69, ,232 3,053 65, ,334 6, , ,284 Foreign exchange accounts ,519 5, ,597 59,780 Sundry accounts 303 2, , ,826 13, ,574 2,273 Property, plant and equipment , Intangible assets ,627 Deferred tax assets Customers' liability under guarantees and acceptances ,241 1, ,018 1,478 Reserve for loan losses - (896) (2) (176) (20) (287) (9) (472) - - (7,976) (3,252) Allowance for losses on investment (14,234) - Head office and branches 17,230 12, ,152 29,704 1, ,950 26,011 48, ,683 - Total assets 28,617 99,514 2, ,245 77, ,573 2,063 31, , ,164 1,343, ,107 Liabilities Deposits 21,013 27, ,881 73, , ,656 91, ,068 Negotiable certificates of deposit sold ,000 - Call money - 4, ,000 2,600 Securities sold under agreements to repurchase ,325 Cash collateral received for security lending Commercial paper ,994 - Specific transaction accounts liabilities , ,896 - Borrowed money , ,000 2,500 68,863 38,462 Foreign exchange accounts 3 6, , Sundry accounts 256 1, , ,573 38, ,231 9,166 Bonus allowance Retirement benefit obligation , Deferred tax liabilities 's liability under guarantees and acceptances ,241 1, ,018 1,478 Head office and branches 7,664 57, ,329 2, , , , , ,299 - Sub-total 29,045 98,436 1, ,077 77, , , , ,615 1,343, ,953 Capital stock ,000 Capital surplus/ reserve ,000 Legal earned reserve ,030 } 13, Retained earnings/ (deficit) (1,184) 268 1,282 (332) , (836) Unrealized gains (losses) on available-for-sale securities (7) 34 (9) Deferred hedge gains/ (losses) (1,281) - Total liabilities 28,617 99,514 2, ,245 77, ,573 2,063 31, , ,164 1,343, ,107 Income statement Ordinary income: Income on operating funds 717 1, , , ,133 2,675 16,163 9,523 Including: [Interest on loans] [167] [1,634] [4] [237] [14] [1,040] [14] [539] [287] [0] [5,157] [3,387] [Interest and dividends on securities] [-] [10] [-] [133] [-] [737] [-] [189] [-] [320] [1,584] [453] Commission income , Specific transaction accounts income , Other operating income , Other ordinary income , Total ordinary income 2,634 1,967 1,301 6, , ,128 25,849 3,161 23,683 10,488 Ordinary expenses: Funding cost , ,181 1,751 11,609 4,595 Including:[Interest on deposits] [357] [37] [0] [3,661] [0] [2] [0] [128] [7] [0] [598] [4,428] Commission expenses Specific transaction accounts losses Other operating expenses , , ,922 0 General and administrative expenses 1, , , ,493 4,211 Other ordinary expenses , Total ordinary expenses 2,084 1, , , ,628 2,503 27,952 9,601 Ordinary earnings (loss) (584) , (4,269) 887 Extraordinary profits Extraordinary losses Earnings (loss) before income taxes (585) , (4,348) 887 Income taxes-current Income taxes-deferred 32 (111) 0 (781) (31) Net earnings (loss) (382) , (4,351) 52 Notes on non-performing loans: rupt loans Non-accrual loans ,766 1,877 Past due loans (3 months or more) Restructured loans ,207 Total non-performing loans - 1, ,766 5,089 Royal of Scotland plc, The Shinhan Japan 12 Foreign s in Japan Survey Foreign s in Japan Survey 2012

12 Financial statements (millions of yen) Société Générale Standard Chartered State of India State Street and Trust Company UBS AG UniCredit AG UNION DE BANQUES ARABES ET FRANCAISES UNITED OVERSEAS BANK LTD. Wells Fargo, National Association Assets Cash on hand and due from banks 225, ,593 17,168 99, ,039 2,812 9,629 13,394 16,042 9,724 2,614 Call loans 335, , Securities purchased under agreements to resell 174, Cash collateral paid for security borrowing , Monetary claims purchased ,763 - Specific transaction accounts assets , Money in trusts Securities 248, ,534 7, , ,999 32,835-43,352 - Loans and discounts 106,869 46, , ,679 73,840 3,098 22, ,298 33,429 Foreign exchange accounts 2,002 53,256 33, , ,814 1,263 4, ,479 Sundry accounts 8,630 79,768 1,771 65, ,604 3, , Property, plant and equipment Intangible assets Deferred tax assets , Customers' liability under guarantees and acceptances 2, ,450 13, ,087-9,055-3,267 Reserve for loan losses (2,870) (188) (2,824) - (149) (8,768) - (70) (3) - (498) Allowance for losses on investment - - (7) Head office and branches 419, ,039 4,005 1, ,328 94, ,564 14,275 Total assets 1,520,667 1,039, , ,285 3,000, ,029 43,355 70,465 29, ,333 68,076 Liabilities Deposits 184, ,188 39, ,636 5,473 5,246 1,362-1,020 27,615 Negotiable certificates of deposit sold - 145, Call money 338, ,518 6,900 6, ,000-4,000 16, ,000 Securities sold under agreements to repurchase 254, Cash collateral received for security lending Commercial paper 5,000 59, , Specific transaction accounts liabilities , Borrowed money 12,500 5,815 39,644-93, , ,100 Foreign exchange accounts 0 24, ,445-1,197 2,367 15, Sundry accounts 62,585 86,699 3,011 70, ,911 3, , Bonus allowance Retirement benefit obligation Deferred tax liabilities 's liability under guarantees and acceptances 2, ,450 13, ,087-9,055-3,267 Head office and branches 658,636 58,489 73,165 91,810 2,027, ,472 21,978 41,608 4, , Sub-total 1,520,122 1,040, , ,159 3,001, ,253 42,901 68,620 29, ,395 65,841 Capital stock Capital surplus/ reserve Legal earned reserve 1,265 1, ,855 1, ,000 2,000 Retained earnings/ (deficit) (1,927) (2,351) 704 (1,226) (3,666) 3, , Unrealized gains (losses) on available-for-sale securities 1, (34) - 4 (46) ,117 - Deferred hedge gains/ (losses) (9,985) - Total liabilities 1,520,667 1,039, , ,285 3,000, ,029 43,355 70,465 29, ,333 68,076 Income statement Ordinary income: Income on operating funds 6,169 4,990 4, ,977 2, , ,424 1,753 Including: [Interest on loans] [2,478] [1,024] [2,960] [-] [2,140] [2,081] [78] [600] [-] [3,076] [1,256] [Interest and dividends on securities] [1,037] [368] [347] [-] [629] [25] [4] [607] [-] [1,357] [-] Commission income 405 2, , Specific transaction accounts income , Other operating income 1,351 1, , , Other ordinary income Total ordinary income 7,926 9,815 5, ,739 2, ,825 1,069 9,581 2,193 Ordinary expenses: Funding cost 4,050 3,060 2, ,970 1, , Including:[Interest on deposits] [633] [2,393] [576] [-] [2,244] [29] [3] [4] [-] [13] [234] Commission expenses , Specific transaction accounts losses , Other operating expenses ,520 0 General and administrative expenses 2,879 6, ,150 1, , Other ordinary expenses , Total ordinary expenses 8,029 9,986 3, ,658 3, , ,507 1,182 Ordinary earnings (loss) (103) (170) 1, ,080 (1,083) (12) 1, ,011 Extraordinary profits Extraordinary losses Earnings (loss) before income taxes (103) (170) 1,772 (85) 1,064 (1,089) (24) 1, ,012 Income taxes-current (490) Income taxes-deferred 2, (9) 7 3,400 (256) 2 - (9) - - Net earnings (loss) (1,760) (1,078) 961 (93) (2,342) (940) (28) ,005 Notes on non-performing loans: rupt loans - - 2, Non-accrual loans , Past due loans (3 months or more) Restructured loans 5, , Total non-performing loans 5, , , WestLB AG WOORI BANK 14 Foreign s in Japan Survey Foreign s in Japan Survey 2012

13 Rankings by Total Assets Rank Total assets ( millions) Rank Total assets ( millions) 1 4,336,501 Citibank Japan Ltd. 2 3,000,234 UBS AG 3 2,971,595 BARCLAYS BANK PLC 4 2,934,398 JPMorgan Chase, N.A 5 2,537,073 Deutsche AG 6 2,397,063 BNP PARIBAS 7 1,720,526 Crédit Agricole Corporate and Investment 8 1,561,102 Hongkong and Shanghai ing Corporation Limited, The 9 1,520,667 Société Générale 10 1,343,264 Royal of Scotland plc, The 11 1,254,421 BANK OF CHINA LIMITED 12 1,251,751 Australia and New Zealand ing Group Limited 13 1,039,348 Standard Chartered ,417 Rabobank Nederland ,164 ROYAL BANK OF CANADA ,354 CREDIT SUISSE AG ,773 ING N.V ,512 INDUSTRIAL AND COMMERCIAL BANK OF CHINA ,245 National Australia Limited ,107 Shinhan Japan ,289 COMMERZBANK AG ,699 BANK OF COMMUNICATIONS ,803 Commonwealth of Australia ,414 China Construction ,885 BANCO DO BRASIL S.A ,333 WestLB AG ,496 BANK OF NEW YORK MELLON, THE ,054 of America, N.A ,822 State of India ,029 UniCredit AG ,285 State Street and Trust Company ,491 DBS BANK LTD ,164 Itaú Unibanco S.A ,829 Korea Exchange ,118 BANK OF INDIA ,033 Korea Development, The ,573 Oversea-Chinese ing Corp Ltd ,514 Mega International Commercial Co., Ltd ,937 KOOKMIN BANK 40 81,961 Banco Bilbao Vizcaya Argentaria, S.A ,314 Intesa Sanpaolo S.p.A ,710 National of Pakistan 43 71,467 Industrial of Korea 44 70,465 UNITED OVERSEAS BANK LTD ,076 WOORI BANK 46 67,319 BANK OF TAIWAN 47 63,102 of Nova Scotia, The 48 52,112 BANGKOK BANK PUBLIC COMPANY LIMITED 49 52,029 DEPFA BANK plc 50 43,355 UNION DE BANQUES ARABES ET FRANCAISES 51 34,248 Hana 52 31,974 PT. Negara Indonesia (Persero) Tbk 53 30,643 FIRST COMMERCIAL BANK 54 29,959 Wells Fargo, National Association 55 28,743 CHANG HWA COMMERCIAL BANK, LTD ,617 Lloyds TSB plc 57 27,416 CHINATRUST COMMERCIAL BANK 58 2,691 Metropolitan and Trust Company 59 2,063 PHILIPPINE NATIONAL BANK 16 Foreign s in Japan Survey 2012

14 Rankings by Ordinary Earnings (Loss) Rank Ordinary Earnings (Loss) ( millions) 1 5,888 Deutsche AG 2 5,847 Citibank Japan Ltd. 3 5,493 JPMorgan Chase, N.A 4 4,856 BARCLAYS BANK PLC 5 4,220 Rabobank Nederland 6 4,201 BANK OF CHINA LIMITED 7 3,522 ING N.V. 8 2,565 Korea Exchange 9 2,302 INDUSTRIAL AND COMMERCIAL BANK OF CHINA 10 2,018 BANK OF INDIA 11 1,897 KOOKMIN BANK 12 1,774 Australia and New Zealand ing Group Limited 13 1,687 State of India 14 1,395 BANK OF COMMUNICATIONS 15 1,367 Hongkong and Shanghai ing Corporation Limited, The 16 1,337 of Nova Scotia, The 17 1,298 Industrial of Korea 18 1,209 UNITED OVERSEAS BANK LTD. 19 1,080 UBS AG 20 1,011 WOORI BANK COMMERZBANK AG China Construction Shinhan Japan Oversea-Chinese ing Corp Ltd BNP PARIBAS ROYAL BANK OF CANADA BANCO DO BRASIL S.A DBS BANK LTD Mega International Commercial Co., Ltd Lloyds TSB plc Rank Ordinary Earnings (Loss) ( millions) Commonwealth of Australia Korea Development, The FIRST COMMERCIAL BANK Banco Bilbao Vizcaya Argentaria, S.A Hana BANGKOK BANK PUBLIC COMPANY LIMITED Intesa Sanpaolo S.p.A Metropolitan and Trust Company PHILIPPINE NATIONAL BANK of America, N.A National of Pakistan Wells Fargo, National Association CHANG HWA COMMERCIAL BANK, LTD PT. Negara Indonesia (Persero) Tbk WestLB AG CHINATRUST COMMERCIAL BANK 47 5 State Street and Trust Company 48 (6) Itaú Unibanco S.A. 49 (12) UNION DE BANQUES ARABES ET FRANCAISES 50 (40) CREDIT SUISSE AG 51 (43) BANK OF TAIWAN 52 (103) Société Générale 53 (170) Standard Chartered 54 (255) DEPFA BANK plc 55 (494) BANK OF NEW YORK MELLON, THE 56 (584) National Australia Limited 57 (1,083) UniCredit AG 58 (1,098) Crédit Agricole Corporate and Investment 59 (4,269) Royal of Scotland plc, The 17 Foreign s in Japan Survey 2012

15 Rankings by Expense/Income Ratio Rank Expense/ Income Ratio Rank Expense/ Income Ratio % of Nova Scotia, The % FIRST COMMERCIAL BANK % KOOKMIN BANK % Korea Exchange % Industrial of Korea % BANK OF INDIA % WOORI BANK % UNITED OVERSEAS BANK LTD % ING N.V % National of Pakistan % Oversea-Chinese ing Corp Ltd % CHANG HWA COMMERCIAL BANK, LTD % Hana % State of India % BANK OF COMMUNICATIONS % China Construction % Mega International Commercial Co., Ltd % PHILIPPINE NATIONAL BANK % DBS BANK LTD % Banco Bilbao Vizcaya Argentaria, S.A % Commonwealth of Australia % Intesa Sanpaolo S.p.A % Metropolitan and Trust Company % Deutsche AG % JPMorgan Chase, N.A % BANGKOK BANK PUBLIC COMPANY LIMITED % BANK OF CHINA LIMITED % INDUSTRIAL AND COMMERCIAL BANK OF CHINA % Lloyds TSB plc % ROYAL BANK OF CANADA % BARCLAYS BANK PLC % Wells Fargo, National Association % Rabobank Nederland % Korea Development, The % COMMERZBANK AG % Australia and New Zealand ing Group Limited % PT. Negara Indonesia (Persero) Tbk % BANCO DO BRASIL S.A % Shinhan Japan % Citibank Japan Ltd % Hongkong and Shanghai ing Corporation Limited, The % of America, N.A % UBS AG % BNP PARIBAS % CHINATRUST COMMERCIAL BANK % State Street and Trust Company % WestLB AG % Itaú Unibanco S.A % Société Générale % UNION DE BANQUES ARABES ET FRANCAISES % CREDIT SUISSE AG % Standard Chartered % BANK OF TAIWAN % Crédit Agricole Corporate and Investment % National Australia Limited % Royal of Scotland plc, The % DEPFA BANK plc % BANK OF NEW YORK MELLON, THE % UniCredit AG 18 Foreign s in Japan Survey 2012

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