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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

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Form 6-K

 

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Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

For the month of January, 2005

 

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MITSUBISHI TOKYO FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

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4 -1, Marunouchi 2-chome, Chiyoda-ku

Tokyo 100-6326, Japan

(Address of principal executive offices)

 

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[Indicate by check mark whether the registrant files or

will file annual reports under cover Form 20-F or Form 40-F.]

 

Form 20-F      X        Form 40-F              

 

[Indicate by check mark whether the registrant by furnishing the information

contained in this Form is also thereby furnishing the information to the Commission

pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.]

 

Yes                  No      X    

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: January 31, 2005

 

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Consolidated Financial Information

<consistent with Japanese GAAP>

for the nine months ended December 31, 2004

 

Date:		January 31, 2005
Company name (code number):		Mitsubishi Tokyo Financial Group, Inc. (8306)
		(URL http://www.mtfg.co.jp)
Stock exchange listings:		Tokyo, Osaka, New York, London
Headquarters:		Tokyo
Representative:		Nobuo Kuroyanagi, President & CEO
For inquiry:		Katsuhiko Ishizuka, Chief Manager - Financial Policy Division
		(Phone) +81-3-3240-8211
Trading accounts:		Established
Audit corporation participation		None

 

1. Notes to consolidated financial information

(1)

Adoption of simplified accounting method:

The allowance for credit losses and the others partially adopt the simplified accounting methods.

The allowance for credit losses is stated based on the following:

For claims to debtors whose internal credit ratings are not changed from that as of the previous fiscal year, it is calculated using the loss ratios on the claims as of the previous fiscal year, etc.

For claims to debtors whose internal credit ratings are changed from that as of the previous fiscal year, it is calculated using the loss ratios on the claims as of the previous fiscal year based on the internal credit ratio as of

December 31, 2004, etc.

A part of assets is stated based on actual amounts as of the previous fiscal year, etc.

(2)

Change in accounting policies: None

(3)

Change in scope of consolidated and application of the equity method:

 

Consolidated subsidiaries:		Newly included: 7		Excluded: 8
Affiliated companies accounted for by the equity method:		Newly included: 1		Excluded: 1

 

2. Consolidated financial data for the nine months ended December 31, 2004

 

(1) Operating results

 

		(in millions of yen except per share data and percentages)
		For the nine months ended December 31,				For the year ended March 31, 2004
		2004		2003
Ordinary income		1,878,791		—		2,555,183
Change from the previous year		—		—		(7.8	)%
Ordinary profit		470,141		—		578,371
Change from the previous year		—		—		—
Net income		284,200		—		560,815
Change from the previous year		—		—		—
Net income per common share		43,068.96		—		87,156.63
Net income per common and common equivalent share		—		—		85,017.34

 

Note:

The above operating results for the nine months of the previous year and the percentage of fluctuation between the nine months of this year and that of the previous year are not disclosed since quarterly consolidated operating results have been prepared from this first year.

 

Qualitative information related to the operating results:

 

With respect to the financial and economic environment for the third quarter ended December 31, 2004, though overseas economies moved toward recovery in the first half of the current fiscal year, a certain degree of uncertainty prevailed over overseas economies in the latter part of the fiscal year as growth in the United States slowed, and due to measures taken in China to restrain investments and the sharp rise in crude oil prices. Similarly, the Japanese economy moved toward recovery led by exports and capital expenditures in the first part of the current fiscal year, but began slowing down in the latter part of the fiscal year and deflation continued.

Regarding the financial environment, in the EU, the European Central Bank’s policy rate remained at 2%. In the United States, the target for the federal funds rate was raised from 1.0% to 2.25 % between June and December 2004. In Japan, the Bank of Japan continued its current easy monetary policy and kept short-term interest rates at near zero percent. On the other hand, the yield on ten-year Japanese government bonds rose temporarily due to expectations of economic recovery to approximately 1.9%, before declining again to around 1.4%. In the foreign exchange markets, although the yen initially depreciated against the US dollar to around 115, in the latter part of the current fiscal year, the yen strengthened against the US dollar to around 102 as concerns rose over the US budget and current account deficit.

 

Amidst this environment, for the nine months ended December 31, 2004, MTFG’s ordinary profit was ¥470.1 billion and net income was ¥284.2 billion.

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(2) Financial condition

 

		(in millions of yen except per share data and percentages)
		As of December 31,					As of March 31, 2004
		2004			2003
Total assets		116,246,651			—		106,615,487
Shareholders’ equity		4,401,133			—		4,295,243
Shareholders’ equity as a percentage of total liabilities, minority interest and shareholders’ equity		3.8	%		—		4.0	%
Shareholders’ equity per common share		654,213.78			—		620,797.48

 

Note:

The above financial condition for the nine months of the previous year are not disclosed since quarterly consolidated financial condition have been prepared from this first year.

 

Qualitative information related to the financial condition:

 

Total assets increased by ¥9,631.1 billion from ¥106,615.4 billion at March 31, 2004 to ¥116,246.6 billion at December 31, 2004 and shareholders’ equity increased by ¥105.8 billion from ¥4,295.2 billion at March 31, 2004 to ¥4,401.1 billion at December 31, 2004.

Loans and bills discounted decreased by ¥458.9 billion from ¥46,590.1 billion at March 31, 2004 to ¥46,131.2 billion at December 31, 2004. The decrease primarily reflected the decrease in loans to the government and official institutions. On the other hand, domestic housing loans increased by ¥302.7 billion.

 

Investment securities increased by ¥6,688.8 billion from ¥28,329.5 billion at March 31, 2004 to ¥35,018.3 billion at December 31, 2004.

 

(Reference)

Earning projections for the fiscal year ending March 31, 2005

 

		(in millions of yen)
		Ordinary income		Ordinary profit		Net income
For the year ending March 31, 2005		2,450,000		640,000		340,000

 

Projected net income per common share for the year ending March 31, 2005 (yen): 51,225.18

 

Qualitative information related to the earning projections:

 

There are no changes to the full-year forecasts issued on November 24, 2004 for the fiscal year ending March 31, 2005.

 

This information contains forward-looking statements and other forward-looking information relating to the company and/or the group as a whole (the “forward-looking statements”). The forward-looking statements are not historical facts and include, reflect or are otherwise based upon, among other things, the company’s current estimations, projections, views, policies, business strategies, targets, expectations, assumptions and evaluations with respect to general economic conditions, its results of operations, its financial condition, its management in general and other future events. Accordingly, they are inherently susceptible to uncertainties, risks and changes in circumstances and are not guarantees of future performance.

 

Some forward-looking statements represent targets that the company’s management will strive to achieve through the successful implementation of the company’s business strategies. The company may not be successful in implementing its business strategy, and actual results may differ materially, for a wide range of possible reasons.

 

In light of the many risks, uncertainties and possible changes, you are advised not to put undue reliance on the forward-looking statements. The company is under no obligation – and expressly disclaims any obligation – to update or alter the forward-looking statements, except as may be required by any applicable laws and regulations or stock exchange rules.

 

For detailed information relating to uncertainties, risks and changes regarding the forward-looking statements, please see the company’s latest annual report and other disclosure documents.

---

(Attachment)

Mitsubishi Tokyo Financial Group, Inc.

 

1. Consolidated Balance Sheets

 

		As of December 31, 2004			As of March 31, 2004 (Reference)
(in millions of yen)
Assets:
Cash and due from banks		7,487,042			6,511,422
Call loans and bills bought		569,910			893,805
Receivables under resale agreements		1,339,595			1,336,995
Receivables under securities borrowing transactions		5,771,386			5,572,154
Commercial paper and other debt purchased		1,829,314			1,338,092
Trading assets		8,017,487			6,572,110
Money held in trust		466,447			469,377
Investment securities		35,018,376			28,329,543
Allowance for losses on investment securities		(1,396	)		(1,948	)
Loans and bills discounted		46,131,201			46,590,131
Foreign exchanges		653,777			559,382
Other assets		3,631,147			3,217,991
Premises and equipment		857,167			889,580
Deferred tax assets		602,438			711,680
Customers’ liabilities for acceptances and guarantees		4,637,823			4,457,806
Allowance for loan losses		(765,070	)		(832,638	)
Total assets		116,246,651			106,615,487
Liabilities:
Deposits		66,952,158			66,097,591
Negotiable certificates of deposit		3,052,037			2,819,588
Debentures		15,211			265,056
Call money and bills sold		10,774,081			6,879,141
Payables under repurchase agreements		5,805,682			3,316,268
Payables under securities lending transactions		4,403,291			3,415,952
Commercial paper		654,008			637,006
Trading liabilities		3,513,457			2,824,399
Borrowed money		1,240,273			1,342,691
Foreign exchanges		1,069,102			1,081,271
Short-term corporate bonds		690,900			340,200
Bonds and notes		3,993,704			3,734,610
Bonds with warrants		49,165			50,000
Due to trust account		1,344,756			1,380,268
Other liabilities		3,021,282			3,079,852
Reserve for employees’ bonuses		5,191			16,881
Reserve for employees’ retirement benefits		41,989			34,932
Reserve for expenses related to EXPO 2005 Japan		238			158
Reserves under special laws		1,345			1,160
Deferred tax liabilities		58,482			56,131
Deferred tax liabilities on land revaluation excess		133,750			138,926
Acceptances and guarantees		4,637,823			4,457,806
Total liabilities		111,457,937			101,969,895
Minority interest		387,580			350,347
Shareholders’ equity:
Capital stock		1,258,052			1,258,052
Capital surplus		829,937			931,309
Retained earnings		1,769,004			1,506,576
Land revaluation excess		150,862			158,044
Unrealized gains on securities available for sale		494,924			560,316
Foreign currency translation adjustments		(98,436	)		(115,424	)
Less treasury stock		(3,211	)		(3,631	)
Total shareholders’ equity		4,401,133			4,295,243
Total liabilities, minority interest and shareholders’ equity		116,246,651			106,615,487

---

Mitsubishi Tokyo Financial Group, Inc.

 

2. Consolidated Statements of Income

 

		For the nine months ended December 31, 2004		For the year ended March 31, 2004 (Reference)
(in millions of yen)
Ordinary income:
Interest income:		1,038,433		1,417,724
(Interest on loans and discounts)		630,337		873,427
(Interest and dividends on securities)		241,327		340,494
Trust fees		64,022		86,461
Fees and commissions		409,071		487,786
Trading profits		94,969		135,647
Other business income		158,144		243,377
Other ordinary income		114,149		184,186
Total ordinary income		1,878,791		2,555,183
Ordinary expenses:
Interest expense:		294,662		390,496
(Interest on deposits)		140,651		161,921
(Interest on debentures)		349		4,030
Fees and commissions		47,900		66,102
Trading losses		641		—
Other business expenses		86,662		152,803
General and administrative expenses		787,128		1,047,735
Other ordinary expenses		191,654		319,674
Total ordinary expenses		1,408,649		1,976,811
Ordinary profit		470,141		578,371
Special gains		65,691		339,286
Special losses		10,523		37,754
Income before income taxes and others		525,309		879,903
Income taxes-current		61,151		45,956
Income taxes-deferred		149,410		230,650
Minority interest		30,547		42,480
Net income		284,200		560,815

---

Mitsubishi Tokyo Financial Group, Inc.

(The Mitsubishi Trust and Banking Corporation)

 

3. Statement of Trust Assets and Liabilities

 

Statement of Trust Assets and Liabilities which is obtained by adding up Trust Assets under Service-Shared Co-Trusteeship

 

		As of December 31, 2004		As of March 31, 2004 (Reference)
(in millions of yen)
Assets:
Loans and bills discounted		623,898		735,872
Securities		25,244,782		26,511,148
Beneficiary rights to the trust		11,988,885		10,911,534
Securities held in custody accounts		3,993,525		4,241,080
Money claims		4,106,725		4,034,942
Premises and equipment		2,564,013		2,327,330
Surface rights		548		548
Lease rights		24,080		23,695
Other claims		2,876,142		1,768,093
Call loans		1,103,685		1,406,530
Due from banking account		1,846,963		1,702,841
Cash and due from banks		1,941,110		2,212,768
Total assets		56,314,361		55,876,387
Liabilities:
Money trusts		18,067,953		19,604,145
Pension trusts		8,227,555		8,274,971
Property formation benefit trusts		13,004		12,958
Loan trusts		622,785		792,932
Investment trusts		10,690,054		9,424,449
Money entrusted other than money trusts		2,076,495		2,010,336
Securities trusts		7,349,497		7,291,686
Money claim trusts		4,082,042		3,876,931
Land and fixtures trusts		100,709		127,435
Other trusts		5,084,264		4,460,539
Total liabilities		56,314,361		55,876,387

---

Mitsubishi Tokyo Financial Group, Inc.

 

4. Business segment information

 

<For the nine months ended December 31, 2004>

 

		(in millions of yen)
		Banking		Trust Banking		Securities		Other		Total		(Elimination)			Consolidated
Ordinary profit		381,976		63,824		10,926		228,921		685,648		(215,506	)		470,141

 

Notes:

 

1.

Ordinary profit is presented as counterparts of operating profit of companies in other industries.

2.

Other primarily includes credit card and leasing businesses.

3.

Other primarily includes dividend of 214,015 million yen from MTFG’s domestic banking subsidiary and trust banking subsidiary.

 

(Reference)

<For the year ended March 31, 2004>

 

		(in millions of yen)
		Banking		Trust Banking		Securities		Other		Total		(Elimination)			Consolidated
Ordinary profit		391,877		130,916		43,810		78,104		644,709		(66,337	)		578,371

 

Notes:

 

1.

Ordinary profit is presented as counterparts of operating profit of companies in other industries.

2.

Other primarily includes credit card and leasing businesses.

---

Mitsubishi Tokyo Financial Group, Inc.

 

5. Financial Results

 

		(in millions of yen)
		For the nine months ended December 31, 2004			For the year ended March 31, 2004
Gross profits		1,336,139			1,763,520
Net interest income		745,135			1,029,154
Trust fees		64,022			86,461
Credit costs for trust accounts (1)		(2,678	)		(10,045	)
Net fees and commissions		361,171			421,684
Net trading profits		94,327			135,647
Net other business income		71,481			90,573
Net gains (losses) on debt securities		37,503			(25,017	)
General and administrative expenses		749,108			980,438
Net business profits before credit costs for trust accounts and provision for formula allowance for loan losses		589,709			793,127
Provision for formula allowance for loan losses (2)		—			—
Net business profits*		587,030			783,081
Net non-recurring losses		(116,889	)		(204,710	)
Credit related costs (3)		(103,324	)		(156,963	)
Losses on loan charge-offs		(65,571	)		(70,472	)
Provision for specific allowance for loan losses		—			—
Losses on sales of loans to the Resolution and Collection Corporation		(1,112	)		(39,418	)
Other credit related costs		(36,641	)		(47,072	)
Net gains on equity securities		5,455			3,371
Gains on sales of equity securities		53,957			90,571
Losses on sales of equity securities		(14,969	)		(74,470	)
Losses on write down of equity securities		(33,532	)		(12,729	)
Other		(19,019	)		(51,118	)
Ordinary profit		470,141			578,371
Net special gains		55,167			301,531
Reversal of allowance for loan losses (4)		42,726			239,965
Income before income taxes and others		525,309			879,903
Income taxes-current		61,151			45,956
Income taxes-deferred		149,410			230,650
Minority interest		30,547			42,480
Net income		284,200			560,815
Note: *  Net business profits = The 2 Banks’ non-consolidated net business profits + Other consolidated entities' gross profits - Other consolidated entities' general and administrative expenses - Other consolidated entities' provision for formula allowance for loan losses - Inter-company transactions.
( Reference )
Total credit costs (1)+(2)+(3)+(4)		(63,276	)		72,955

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Mitsubishi Tokyo Financial Group, Inc.

 

Financial Results (The Bank of Tokyo-Mitsubishi, Ltd.)

 

		(in millions of yen)
		For the nine months ended December 31, 2004			For the year ended March 31, 2004
Gross profits		709,294			925,311
Net interest income		462,255			634,259
Net fees and commissions		134,495			153,396
Net trading profits		43,472			54,739
Net other business income		69,071			82,915
Net gains (losses) on debt securities		30,317			(32,316	)
General and administrative expenses		355,309			458,498
Net business profits before provision for formula allowance for loan losses		353,984			466,813
Provision for formula allowance for loan losses (1)		137,634			—
Net business profits		491,619			466,813
Net non-recurring losses		(210,666	)		(176,591	)
Credit related costs (2)		(193,036	)		(107,187	)
Losses on loan charge-offs		(23,985	)		(24,592	)
Provision for specific allowance for loan losses		(143,988	)		—
Losses on sales of loans to the Resolution and Collection Corporation		(1,112	)		(38,273	)
Other credit related costs		(23,949	)		(44,321	)
Net gains (losses) on equity securities		6,597			(20,916	)
Gains on sales of equity securities		44,398			85,756
Losses on sales of equity securities		(14,105	)		(59,515	)
Losses on write down of equity securities		(23,694	)		(47,156	)
Other		(24,227	)		(48,488	)
Ordinary profit		280,953			290,221
Net special gains		5,111			297,498
Reversal of allowance for loan losses (3)		—			242,574
Income before income taxes and others		286,065			587,719
Income taxes-current		7,186			44,462
Income taxes-deferred		106,053			183,503
Net income		172,825			359,754
(Reference)
Total credit costs (1)+(2)+(3)		(55,401	)		135,386

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Mitsubishi Tokyo Financial Group, Inc.

 

Financial Results (The Mitsubishi Trust and Banking Corporation)

 

		(in millions of yen)
		For the nine months ended December 31, 2004			For the year ended March 31, 2004
Gross profits		221,284			329,054
(Gross ordinary profit before trust accounts charge-offs)*		223,963			339,099
Net interest income		127,924			202,868
Trust fees		50,582			70,487
Credit costs for trust accounts** (1)		(2,678	)		(10,045	)
Net fees and commissions		37,519			44,201
Net trading profits		5,448			403
Net other business income		(190	)		11,093
Net gains on debt securities		7,355			7,723
General and administrative expenses		104,391			151,040
Net business profits before credit costs for trust accounts and provision for formula allowance for loan losses		119,571			188,059
Provision for formula allowance for loan losses (2)		—			17,479
Net business profits		116,892			195,493
Net non-recurring losses		(50,116	)		(56,979	)
Credit related costs (3)		(40,001	)		(37,090	)
Losses on loan charge-offs		(27,310	)		(10,293	)
Provision for specific allowance for loan losses		—			(20,074	)
Losses on sales of loans to the Resolution and Collection Corporation		—			131
Other credit related costs		(12,691	)		(6,853	)
Net losses on equity securities		(1,551	)		(335	)
Gains on sales of equity securities		9,022			23,284
Losses on sales of equity securities		(814	)		(15,226	)
Losses on write down of equity securities		(9,759	)		(8,393	)
Other		(8,562	)		(19,554	)
Ordinary profit		66,776			138,513
Net special gains (losses)		46,086			(7,215	)
Reversal of allowance for loan losses (4)		45,140			—
Income before income taxes and others		112,862			131,297
Income taxes-current		10,880			(32,920	)
Income taxes-deferred		43,128			41,436
Net income		58,853			122,781
Note:
*       Amounts before credit costs for loans in trusts with contracts for compensating the principal
**     Credit costs for loans in trusts with contracts for compensating the principal
(Reference)
Total credit costs (1)+(2)+(3)+(4)		2,460			(29,656	)

---

Mitsubishi Tokyo Financial Group, Inc.

 

6. Disclosed Claims under the Financial Reconstruction Law

 

Total of the 2 Banks [Banking and Trust accounts]

 

		(in millions of yen)
		As of December 31, 2004			As of March 31, 2004 (Reference)
Claims to bankrupt and substantially bankrupt debtors		148,541			140,428
Claims under high risk		847,584			541,309
Claims under close observation		344,980			737,350
Total (A)		1,341,105			1,419,088
Total claims (B)		48,313,578			48,306,522
Non-performing claims ratio (A) / (B)		2.77	%		2.93	%

 

The Bank of Tokyo-Mitsubishi, Ltd. [Banking accounts : Non-Consolidated]

 

		(in millions of yen)
		As of December 31, 2004			As of March 31, 2004 (Reference)
Claims to bankrupt and substantially bankrupt debtors		68,589			90,966
Claims under high risk		695,164			382,536
Claims under close observation		242,297			519,276
Total (A)		1,006,051			992,778
Total claims (B)		38,767,098			38,845,250
Non-performing claims ratio (A) / (B)		2.59	%		2.55	%

 

The Mitsubishi Trust and Banking Corporation [Banking accounts : Non-Consolidated]

 

		(in millions of yen)
		As of December 31, 2004			As of March 31, 2004 (Reference)
Claims to bankrupt and substantially bankrupt debtors		76,354			46,423
Claims under high risk		149,744			149,286
Claims under close observation		81,349			194,779
Total (A)		307,449			390,490
Total claims (B)		9,023,296			8,839,295
Non-performing claims ratio (A) / (B)		3.40	%		4.41	%

 

The Mitsubishi Trust and Banking Corporation [Trust accounts]

 

		(in millions of yen)
		As of December 31, 2004			As of March 31, 2004 (Reference)
Claims to bankrupt and substantially bankrupt debtors		3,597			3,038
Claims under high risk		2,675			9,486
Claims under close observation		21,332			23,294
Total (A)		27,605			35,819
Total claims (B)		523,183			621,976
Non-performing claims ratio (A) / (B)		5.27	%		5.75	%

 

The Mitsubishi Trust and Banking Corporation [Banking(Non-consolidated) and Trust accounts]

 

		(in millions of yen)
		As of December 31, 2004			As of March 31, 2004 (Reference)
Claims to bankrupt and substantially bankrupt debtors		79,952			49,462
Claims under high risk		152,420			158,773
Claims under close observation		102,682			218,074
Total (A)		335,054			426,309
Total claims (B)		9,546,479			9,461,271
Non-performing claims ratio (A) / (B)		3.50	%		4.50	%

 

Notes:

 

1.	The above figures are classified by the claims category under the Financial Reconstruction Law No. 4.

The results of the self-assessment are reflected except for a part of assets.

2.	“Total of the 2 Banks” stands for the aggregated non-consolidated figures of The Bank of Tokyo-Mitsubishi, Ltd. and The Mitsubishi Trust and Banking Corporation.

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7. Risk-Adjusted Capital Ratio Based on the Standards of the BIS

 

[Consolidated]

 

		(in billions of yen except percentages)
		As of December 31, 2004 (Preliminary basis)			As of March 31, 2004 (Reference)
(1) Risk-adjusted capital ratio		10.86	%		12.95	%
(2) Tier 1 capital		4,074.3			3,859.4
(3) Tier 2 capital includable as qualifying capital		2,968.5			3,157.8
i)       The amount of unrealized gains on investment securities, includable as qualifying capital		377.2			428.0
ii)     The amount of land revaluation excess includable as qualifying capital		128.1			133.6
iii)    Subordinated debt		2,092.2			1,993.9
(4) Tier 3 capital includable as qualifying capital		—			30.0
(5) Deductions from total qualifying capital		912.0			54.5
(6) Total qualifying capital (2)+(3)+(4)-(5)		6,130.8			6,992.7
(7) Risk-adjusted assets		56,417.7			53,996.7

 

8. Return on Equity

 

[Consolidated]

 

		(%)
		For the nine months ended December 31, 2004		For the year ended March 31, 2004 (Reference)
ROE *		10.73		17.97

 

Note: * ROE is computed as follows:

 

[For the nine months ended December 31, 2004]
(Net income for the nine months)×4/3 - Equivalent dividends on preferred stocks
		× 100
{(Shareholders’ equity at beginning of period - Number of preferred stocks at beginning of period × Issue price - Land revaluation excess at beginning of period - Unrealized gains on securities available for sale at beginning of period) + (Shareholders’ equity at nine months ended - Number of preferred stocks at nine months ended × Issue price - Land revaluation excess at nine months ended - Unrealized gains on securities available for sale at nine months ended)} / 2
[For the year ended March 31, 2004]
(Net income - Dividends on preferred stocks)
		× 100
{(Shareholders’ equity at beginning of period - Number of preferred stocks at beginning of period × Issue price - Land revaluation excess at beginning of period - Unrealized gains on securities available for sale at beginning of period) + (Shareholders’ equity at end of period - Number of preferred stocks at end of period × Issue price - Land revaluation excess at end of period - Unrealized gains on securities available for sale at end of period)} / 2

---

Mitsubishi Tokyo Financial Group, Inc.

 

9. Investment Securities [Consolidated]

 

Following tables include:

 

Investment securities

 

Trading securities, trading commercial paper and short-term corporate bonds in “Trading assets”

 

(1)	Trading securities

 

(in millions of yen)
As of December 31, 2004
Balance sheet amount		Valuation profits recognized on statement of operations
7,086,171		18,421

 

(2)	Marketable debt securities being held to maturity

 

		(in millions of yen)
		As of December 31, 2004
		Balance sheet amount		Market Value		Differences		Gains		Losses
Domestic bonds		1,926,128		1,943,095		16,967		16,967		—
Government bonds		1,788,706		1,800,115		11,408		11,408		—
Municipal bonds		95,353		99,160		3,807		3,807		—
Corporate bonds		42,068		43,819		1,750		1,750		—
Foreign bonds		59,669		61,319		1,649		1,784		135

 

Note:

 

“Other” is not listed.

 

(3)	Marketable securities available for sale

 

		(in millions of yen)
		As of December 31, 2004
		Cost		Balance sheet amount		Valuation differences		Gains		Losses
Domestic equity securities		2,486,299		3,220,006		733,706		813,923		80,216
Domestic bonds		20,769,332		20,809,203		39,870		56,402		16,532
Government bonds		18,811,752		18,841,901		30,148		45,550		15,401
Municipal bonds		181,493		182,755		1,262		1,939		677
Corporate bonds		1,776,087		1,784,546		8,459		8,912		453
Foreign bonds		6,107,311		6,129,444		22,133		52,020		29,887

 

Note:

 

“Foreign equity securities” and “Other” are not listed.

---

Mitsubishi Tokyo Financial Group, Inc.

 

(Reference) Investment Securities [Consolidated]

 

Following tables include:

 

Investment securities

 

Trading securities, trading commercial paper and short-term corporate bonds in “Trading assets”

 

Negotiable certificates of deposits in “Cash and due from banks”

 

Beneficiary certificates of commodity investment trusts in “Commercial Paper and other debt purchased”.

 

(1)	Trading securities

 

(in millions of yen)
As of March 31, 2004
Balance sheet amount		Valuation profits recognized on statement of operations
5,655,999		(3,823)

 

(2) Marketable debt securities being held to maturity

 

		(in millions of yen)
		As of March 31, 2004
		Balance sheet amount		Market Value		Differences		Gains		Losses
Domestic bonds		1,159,458		1,165,842		6,383		7,602		1,218
Government bonds		998,942		999,449		507		1,724		1,217
Municipal bonds		108,526		112,230		3,703		3,704		0
Corporate bonds		51,988		54,162		2,173		2,173		—
Foreign bonds		74,239		76,825		2,586		2,592		5
Other		168,118		168,152		34		34		—
Total		1,401,815		1,410,820		9,004		10,228		1,224

 

(3)	Marketable securities available for sale

 

		(in millions of yen)
		As of March 31, 2004
		Cost		Balance sheet amount		Valuation differences			Gains		Losses
Domestic equity securities		2,768,443		3,553,772		785,328			891,328		105,999
Domestic bonds		15,703,795		15,707,190		3,394			40,723		37,328
Government bonds		13,989,184		13,986,921		(2,263	)		31,617		33,880
Municipal bonds		243,459		244,981		1,522			2,734		1,212
Corporate bonds		1,471,150		1,475,286		4,136			6,371		2,235
Foreign equity securities		15,012		29,518		14,506			14,827		321
Foreign bonds		6,316,837		6,424,133		107,296			115,867		8,570
Other		1,475,136		1,512,124		36,987			51,846		14,858
Total		26,279,224		27,226,739		947,514			1,114,592		167,078

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Mitsubishi Tokyo Financial Group, Inc.

 

 

10. Deferred gains (losses) with derivatives [Consolidated]

 

		(in billions of yen)
		As of December 31, 2004
		Deferred gains (A)		Deferred losses (B)		Net gains (losses) (A) - (B)
Interest rate futures		8.8		10.3		(1.5	)
Interest rate swaps		234.1		210.2		23.9
Currency swaps		36.5		65.0		(28.4	)
Other interest rate-related transactions		0.2		0.4		(0.1	)
Others		1.7		1.7		(0.0	)
Total		281.5		287.7		(6.2	)

 

Notes:

1.

Deferred gains(losses) which are accounted for on accrual basis based on “Accounting standard for financial instruments” are not included in the above table.

2.

Deferred gains (losses) attributable to the macro hedge accounting are included in the above table.

 

(Reference)

 

		(in billions of yen)
		As of March 31, 2004
		Deferred gains (A)		Deferred losses (B)		Net gains (losses) (A) - (B)
Interest rate futures		17.7		13.8		3.8
Interest rate swaps		325.2		305.1		20.0
Currency swaps		37.2		39.1		(1.9	)
Other interest rate-related transactions		0.1		0.1		—
Others		4.0		4.4		(0.3	)
Total		384.3		362.6		21.6

 

Notes:

1.

Deferred gains(losses) which are accounted for on accrual basis based on “Accounting standard for financial instruments” are not included in the above table.

2.

Deferred gains (losses) attributable to the macro hedge accounting are included in the above table.

 

11. Loans and Deposits [Total of the 2 Banks]

 

		(in millions of yen)
		As of December 31, 2004		As of March 31, 2004 (Reference)
Deposits (ending balance)		62,560,810		62,664,147
Deposits (average balance)		61,910,419		60,253,507
Loans (ending balance)		43,205,203		43,389,829
Loans (average balance)		43,389,285		43,012,635

 

Note:

“Total of the 2 Banks” stands for the aggregated non-consolidated figures of The Bank of

 

Tokyo-Mitsubishi, Ltd. and The Mitsubishi Trust and Banking Corporation.

---

Mitsubishi Tokyo Financial Group, Inc.

 

Note:

“Total of the 2 Banks” stands for the aggregated non-consolidated figures of The Bank of Tokyo-Mitsubishi, Ltd. and The Mitsubishi Trust and Banking Corporation.

 

12. Domestic Deposits [Total of the 2 Banks]

 

		(in millions of yen)
		As of December 31, 2004		As of March 31, 2004 (Reference)
Individuals		34,306,971		33,402,365
Corporations and others		20,216,901		20,575,149
Domestic deposits		54,523,872		53,977,514

 

Note: Amounts do not include negotiable certificates of deposit, deposits of overseas offices and JOM accounts.

 

13. Domestic consumer loans

 

[Total of the 2 Banks]

 

		(in millions of yen)
		As of December 31, 2004		As of March 31, 2004 (Reference)
Total domestic consumer loans		8,379,488		8,117,335
Housing loans		7,958,187		7,655,479
Others		421,300		461,855

 

The Mitsubishi Trust and Banking Corporation [Trust accounts]

 

		(in millions of yen)
		As of December 31, 2004		As of March 31, 2004 (Reference)
Total domestic consumer loans		204,781		228,089
Housing loans		202,688		225,558
Others		2,093		2,530

 

14. Domestic loans to small and medium-sized companies

 

[Total of the 2 Banks]

 

		(in millions of yen)
		As of December 31, 2004			As of March 31, 2004 (Reference)
Domestic loans to small and medium-sized companies		20,679,312			20,100,373
Percentage to total domestic loans		53.69	%		51.58	%

 

The Mitsubishi Trust and Banking Corporation [Trust accounts]

 

		(in millions of yen)
		As of December 31, 2004			As of March 31, 2004 (Reference)
Domestic loans to small and medium-sized companies		408,652			472,447
Percentage to total domestic loans		65.50	%		64.20	%

---

Mitsubishi Tokyo Financial Group, Inc.

 

15. Number of Offices [Total of the 2 Banks]

 

		As of December 31, 2004		As of March 31, 2004 (Reference)
Domestic		317		315
Head office and Branches		292		296
Sub-branches and Agencies		25		19
Overseas		81		81
Branches		47		48
Sub-branches		15		14
Representative offices		19		19
Total		398		396

 

16. Status of Deferred Tax Assets

 

Tax Effects of the Items Comprising Net Deferred Tax Assets

 

[Total of the 2 Banks]

		(in billions of yen)
		December 31, 2004
					vs. Mar. 31, 2004
Deferred tax assets		954.9			(162.2	)
Allowance for loan losses		347.6			(6.1	)
Write down of investment securities		106.1			6.4
Net operating loss carryforwards		507.7			(155.0	)
Reserve for employees’ retirement benefits		41.1			5.1
Unrealized losses on securities available for sale		—			—
Other		47.7			(7.6	)
Valuation allowance		(95.3	)		(4.9	)
Deferred tax liabilities		352.3			(51.9	)
Gains on placing trust for retirement benefits		7.3			—
Unrealized gains on securities available for sale		343.4			(43.9	)
Other		1.5			(7.9	)
Net deferred tax assets		602.6			(110.3	)
[Consolidated]
Net deferred tax assets		543.9			(111.5	)
Percent of Tier1 Capital		13.3	%		(3.6	)%