April1999〜March2000

THE FUJI BANK, LIMITED

F
Y
`99

Annual Report

April1999〜March2000

Toru Hashimoto

Yoshiro Yamamoto

Chairman of the Board

President andChief Executive Officer

CONTENTS
1 FINANCIAL HIGHLIGHTS
2 TO OUR SHAREHOLDERS AND CUSTOMERS
7 FOUNDATION OF THE MIZUHO FINANCIAL GROUP (“MHFG”)
THROUGH THE CONSOLIDATION OF DKB, FUJI BANK AND IBJ
27 REVIEW OF OPERATIONS
28

Consumer and Commercial Banking

30

Global Corporate and Investment Banking

32

Asset Management Group / Processing Services and Information Technology Group

35 CORPORATE INFORMATION
36

The Senior Management and Senior Overseers

36

Organization Chart

38

Overseas Offices

42

38

The Americas

39

Asia and Oceania

40

Europe and The Middle East

Domestic Offices

44 CORPORATE CITIZEN
45 FINANCIAL SECTION
126 INVESTOR INFORMATION ON THE FUJI BANK, LIMITED
127 INVESTOR INFORMATION ON MIZUHO HOLDINGS, INC.

Consolidated

Financial
Highlights
Fuji Bank Group

Thousands of
U.S. dollars**Millions of yen

Years ended March 31:
Total Income
Total Expenses
Income (Loss) before Income Taxes and Minority Interests
Net Income (Loss)
Dividends
Net Income (Loss) per Share*
Dividends per Share*:Common Stock
Preferred Stock:
First Series Class I Preferred Stock
Second Series Class IV Preferred Stock
Third Series Class III Preferred Stock
Fourth Series Class III Preferred Stock
At March 31:
Total Assets
Securities
Loans and Bills Discounted
Deposits
Total Stockholders’ Equity
Stockholders’ Equity per ShareBIS Capital Ratio

2000

1999

2000

¥3,097,192
2,814,173
283,018
52,831(28,851)
12.77¥2,653,442
3,402,011(748,568)(422,030)(35,536)(142.07)$29,177,505
26,511,289
2,666,216
497,707(271,796)
0.12

7.00

7.00

0.07

7.50
42.00
11.00
8.00

7.50
0.12
0.04
0.03

0.07
0.40
0.10
0.08

¥58,246,731
7,588,585
36,371,589
35,463,225
2,247,452
374.8011.00%¥57,260,403
6,668,759
34,815,843
34,646,230
2,187,852
361.76
11.24%$548,720,973
71,489,266
342,643,327
334,085,965
21,172,424
3.53
11.00%

Notes:* Figures for net income (loss) per share and dividends per share are in single currency units.
** U.S. dollar amounts are converted for convenience only, at the rate of ¥106.15=US$1.00, the prevailing rate on March 31, 2000.

Net Income (Loss)

Total Stockholders’ Equity

Net Income (Loss) per ShareBIS Capital Ratio(¥Billion)(¥Billion)

(¥)

(%)
37.54

2,247

2,187

109

11.24

11.00

1,934

9.41

52

1,576

1,636

9.22
8.36

12.77
-142.07-119.35-112.31

-422

-345

-325

1996 1997 1998 1999 2000

1996 1997 1998 1999 2000

1996 1997 1998 1999 2000

1996 1997 1998 1999 2000

Years ended March 31

March 31

Years ended March 31

March 31

1

To Our Shareholders and Customers

To
Our Shareholders
andCustomers— The Dawn of a New Era —Review of Fiscal 1999

For the Japanese financial sector, fiscal 1999
marked the start of a totally new era in the history of finance in Japan.
In August 1999, The Fuji Bank, Limited,
The Dai-Ichi Kangyo Bank, Limited, and The
Industrial Bank of Japan, Limited, reached fullagreement to consolidate their operations into
a comprehensive financial services group to becalled the Mizuho Financial Group. In the following six months after the announcement,
several other major Japanese financial institutions announced mergers and consolidations of
one form or another.
At the same time, conditions in the financial
sector changed dramatically as foreign-owned
financial institutions began in earnest to
expand their presence in Japan, companies
from other sectors started to move into thefinancial business, and a number of Internetbased strategic alliances were formed across different sectors and industries. We believe that
our ability to anticipate and adapt to change,
and to do so with speed, is the key to succeed inthis business environment.
In keeping with this, in fiscal 1999, we continued to work at top speed toward the achievement of our challenging management goal of
becoming a leading bank in the 21st century.
The following sections summarize the specificpolicies implemented in fiscal 1999 and the key
issues we face in fiscal 2000.

During fiscal 1999, we strengthened our management infrastructure and corporate structureby improving business performance, restructuring operations, strengthening risk management
and managing consolidated business activities
under a stronger group strategy.
• Improving Business Performance
We have identified the domestic corporate andretail markets as our priority business areas.
Our goals in these markets are to enhance our
products and services to meet the wide-ranging
needs of our customers, and to improve customer convenience by using information technology to diversify our service channels.
With respect to enhancing products andservices, we focused on services provided tomembers of the Fuji First Club, a membershipreward program that offers special benefits tomember customers, and on our product lineup
in the strategic area of housing loans. We also
made further enhancements to marketing systems for asset management services. In addition, our sales organization and loan products
were expanded to meet the changing financial
needs of our customers especially focusing on
small and medium-sized enterprises.
One key focus of our efforts to improve customer convenience through the diversificationof our service channels was the enhancementof Internet banking services provided throughthe Fuji Cyber Bank. We also introduced the
Fuji Mobile Banking service based on mobile
2

Division and the Internal Audit Division aspart of a major enhancement of our asset
assessment system and the auditing system forgroup companies and other organizations. We
further strengthened the compliance system in
the head office, domestic and overseas
branches, and group companies.

• Restructuring Operations
We exceeded our restructuring and cost cutting
targets through increased efforts in such areas
as branch rationalization and the reduction of
our payroll, including board members and executives. We improved the efficiency of ourbranch network by closing and amalgamatingmanned branches in Japan and overseas, while
taking care to maintain customer convenience.
We reduced our work force by approximately
400 people and worked to reduce expenses
while maintaining a sufficient level of information technology (IT) investment.

• Managing Consolidated Business Activities
under Stronger Group Strategy
We worked to strengthen our consolidated business management to enhance our ability to provide customers with the best possible services
based on our total group resources. We brought
affiliated companies into our business groups
and strengthened cooperation among thevarious business units. At the same time, we
continued to improve the management andevaluation of group performance on to a consolidated footing and created the position ofChief Financial Officer (CFO). As part of ourefforts to bolster group strategy, we fosteredcloser cooperation between The Yasuda Trustand Banking Co., Ltd. (YTB) and The Dai-Ichi
Kangyo Fuji Trust and Banking Co., Ltd. The
former became a consolidated subsidiary inMarch 1999, and the latter took over YTB’s
asset management and administration operations, including pension trust, custody andstock transfer agency services, on October 1,
1999. Fuji Securities Co., Ltd. was recapitalized in preparation for a full-scale involvementin the equity business. We fully underwrote its¥30 billion rights issue.

• Strengthening Risk Management
Because we consider the development of strongrisk management an essential aspect of thebanking business, we further reinforced ourrisk management system. At the same time, weestablished the Executive Committee and specialist committees to deal with particular typesof risk, including credit and market risk. To
provide overall management across the entire
spectrum of risk, we established the positionof Chief Risk Officer (CRO). In addition, we
created the Credit Assessment and Audit
3

To Our Shareholders and Customers

telephones connected to NTT DoCoMo’s“i-mode” system. Another enhancement was
the launch of the Fuji Everyday Bank, whichallows customers to access banking services on
weekends and public holidays through fully
functioning in-store branches. We also began
full-scale development of debit card services.

To Our Shareholders and Customers

and functional expertise in various businessareas, and integrating and building on its various strengths. Its activities as a provider offinancial services will be based on a total commitment to putting the customer first, and onrecognition of the importance of “heart toheart” relationship with customers and business partners.
In preparation for establishing a holding
company in September 2000, the three banks
are developing new, common products andservices, including the following:• Introduction of the “Spark Card,” which
integrates cash cards and credit cards, waslaunched in March 2000 by Fuji Bank andDai-Ichi Kangyo Bank.
• In April, the three banks made their cash dispenser and ATM networks available to eachother’s customers so customers would not becharged interbank transaction fees.
• In May, the three banks established theMizuho Venture Fund, the largest of its typein Japan.
• Plans were announced in May for the development of the “em-town” business, underwhich the three banks will jointly develop
new Internet businesses that transcend traditional business format boundaries with theparticipation of more than 60 leading companies in Japan.
• In May, the three banks, together with Itochu
Corporation and Marubeni Corporation,
announced the establishment of a new company to provide trading-related business-tobusiness e-commerce services.
• In May, we announced a decision to create areal estate fund jointly with Mitsui FudosanCo., Ltd.
• Kankaku Securities Co., Ltd. announced in
May that it would change its name to The
Mizuho Investors Securities Co., Ltd. in
October this year, and plans to develop its
business as a retail securities company assuming a role of developing the middle/retail business of the Mizuho Financial Group.

(Formation of the Mizuho Financial Group)
In August 1999, Fuji Bank, Dai-Ichi Kangyo
Bank and Industrial Bank of Japan reachedagreement on forming the Mizuho Financial
Group.
Japan’s financial institutions are entering a
new era with the globalization of the economy
and the powerful impact of “Big Bang” financial reforms, as well as environmental changes
that include dramatic advances in financial andinformation technology. In order to be successful in the face of escalating competition in an
increasingly borderless world and establish
themselves as major international players,
Japanese financial institutions will need to
improve themselves in two areas. First,
enhance their ability to respond quickly andappropriately to the increasingly sophisticatedfinancial needs of their customers. Second,enhance creditworthiness supported by solid
financial strength. In the 21st century, a powerful leader of the Japanese financial services
industry is needed that will serve as an anchor
for the stabilized financial system, contributing
to the development of the economy and theenhancement of the international competitiveness of Japanese industry.
It was with this view of the financial environment as a backdrop that Fuji Bank, Dai-Ichi
Kangyo Bank and Industrial Bank of Japandecided to form the Mizuho Financial Group,
an integrated financial services group with theaim of becoming a mainstay of the Japanesefinancial system, and to earn the full confidence of the Japanese public.
The Mizuho Financial Group intends tobecome a leading Japanese player in global
financial markets and to establish itself as oneof the top five financial groups in the world. It
will achieve this goal by improving its businessefficiency, taking full advantage of its sectoral

4

(Financial Results)
In fiscal 1999, Core Net Business Profits, theamount after subtracting Net Gains Related to
Bonds from Net Business Profits, increased by¥24.6 billion to ¥251.7 billion, although Net
Business Profits (before Provision of General
Reserve for Possible Loan Losses) amounted to¥258.6 billion, a decline of ¥48.0 billion fromthe previous year’s level. We continued tomake appropriate provisions and write off
problem loans as part of our ongoing efforts tobuild a solid financial base. Expenses Related
to Portfolio Problems in fiscal 1999 amounted
to ¥344.0 billion, a reduction of ¥257.3 billion
compared with the previous year’s total. In
line with our policy of reducing the stock portfolio, we continued to sell off shares, resulting
in a Net Gains on Stocks of ¥338.0 billion.
Unrealized Gains on Stock at the end of fiscal
1999 amounted to ¥548.2 billion, an increase of¥364.2 billion over the position at the end of
the previous fiscal year.
Ordinary Profits increased by ¥812.2 billion
to ¥223.3 billion, and Net Income increased by¥495.0 billion to ¥102.1 billion. These figures
exceeded initial forecasts for the year by ¥133.3
billion and ¥42.1 billion, respectively. Our consolidated Capital Adequacy Ratio (uniform
international standard) remained high at 11%.

Issues for Fiscal 2000
The environment in which the financial industry operates is changing rapidly. The current
year will be an extremely important turning
point, both as the final year of our Strategic Plan
120, and as the year in which the Mizuho
Financial Group will be created. The issues wemust tackle during this fiscal year are as follows.
First, we will strive to maximize our earnings by expanding our portfolio of high-quality
loan assets, increasing assets under management, and pursuing a wide range of earning
opportunities. We will place particular emphasis on supporting venture businesses and startup companies and on lending to small andmedium-sized enterprises. We will work toachieve substantial growth in our assets undermanagement by offering asset management
products that meet a wide range of customer
needs. We will also seek to diversify our earning opportunities by maximizing synergies withaffiliated companies.
Second, we will develop markets and accelerate expansion in new business areas by providing leading-edge products and services in
5

To Our Shareholders and Customers

We are committed to continuing our efforts tooptimize our business performance.
As in the previous fiscal year, the annual
dividend for common shares was set at ¥7 pershare. The annual dividend for preferredshares was maintained at the level set previously by the Board of Directors according to thevarious types of preferred shares issued.

The three banks will continue to promote
numerous joint projects designed to realize as
rapidly as possible the benefits of the formationof the Mizuho Financial Group.

To Our Shareholders and Customers

including its financial technology and specialized knowledge.
The future concept is to aim to be an innovative financial services group that will lead the
new era through cutting-edge comprehensive
financial services. We are determined to make apowerful start as one of Japan’s leading comprehensive financial groups and to earn strong support from customers in Japan and overseas byoffering superior services that anticipate change
in the financial and economic environment.

strategic areas set down in our Strategic Plan
120. In particular, these include investmentbanking, asset management, information technology and the Internet.
Third, we will further strengthen our management structure and risk management systems. The management structure will beenhanced by the acceleration of decisionmaking under the Executive Director system,
which was introduced in June 2000. In thearea of risk management, we will further
enhance our risk management system relatingto specific types of risk, such as credit risk,
market risk and operational risk. Another priority will be the reinforcement of our compliance procedures.
The Mizuho Financial Group will commence integrated operations under Mizuho
Holdings, Inc., which will be establishedthrough a stock-for-stock exchange (kabushikiiten) on September 29, 2000. By the spring of
2002, we intend to reorganize operations into
legally separate subsidiaries according to customer segments and business lines.
With the establishment of the holding
company, all three banks will be linked by abusiness-unit structure based on customer market segments and business lines. This structure
will allow the group to capitalize on thestrengths and characteristics of each business
unit, which will use various sales channels toprovide products and services designed to meetthe increasingly diverse and sophisticatedneeds of customers, as well as opportunities forcross-selling. In addition, the Mizuho
Financial Group will create and develop new
business areas by taking full advantage of its
comprehensive financial service capabilities,

In Conclusion
This year will be the first year of a new era inwhich the true value of Fuji Bank will become
increasingly apparent as we take the first steps
toward a new phase of growth and success as
part of the Mizuho Financial Group. At thistime of dramatic change in our economic andsocial structures, speed must remain a priority
as we build a new future for the Mizuho
Financial Group. We are committed to continuing our efforts to achieve our management
goals, and we look forward to the continuing
support of our shareholders, customers andfriends.
July 2000

Yoshiro Yamamoto
President and Chief Executive Officer

6Foundation of
the Mizuho Financial Group(“MHFG”)
through the Consolidation of
DKB, Fuji Bank and IBJ

7

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Overview of
the Consolidation
On August 20, 1999, The Dai-Ichi Kangyo Bank, Limited (“DKB”), The Fuji Bank, Limited (“Fuji Bank”)
and The Industrial Bank of Japan, Limited (“IBJ”) announced their agreement on the comprehensive consolidation of the three banks. A formal consolidation agreement was subsequently signed on December 22, 1999.
The consolidation was subject to the approval of the general meetings of shareholders and the regulatory
authorities. At the ordinary general meetings of shareholders and other shareholder meetings held in June
2000, the three banks obtained their shareholders’ approval of proposals for the incorporation of the parent
company using the stock-for-stock exchange (kabushiki-iten) method.
The name of the financial services group that will be formed as a result of this consolidation will be
Mizuho Financial Group (“MHFG”).

Background to the Consolidation
Japanese financial institutions will put themselvesin a new business environment with the expansionof the global economy, the progress of Japan’s Big
Bang financial reforms and the development offinancial and information technology.
The three banks recognize the need for a quick
and accurate response to the financial needs of theircustomers as well as the need for plentiful credit
supported by the financial strength of a leadinginternational financial institution.
A powerful leader of the Japanese financial
services industry is needed that will serve as ananchor for the stabilized financial system, contributing to the development of the economy and theenhancement of the international competitivenessof Japanese industry.
In order to maintain a strong position in themarket and to continue to lead the financial services
industry, the three banks have reached an agreement on the consolidation. MHFG intends toachieve substantial improvement in efficiency andenhance competitiveness by combining thestrengths of each bank in different business areasand product lines.

From left to right: Yoshiro
Yamamoto, President and CEO of
Fuji Bank; Katsuyuki Sugita,
President and CEO of DKB; andMasao Nishimura, President andCEO of IBJ, at a joint press
conference held in December
1999.

8

Basic Principles of the Consolidation
As we enter the 21st century, DKB, Fuji Bank and IBJ will create a strong and dynamic financial services
group based on the following five principles:
1. Offer a wide range of the highest-quality financial services to our customers.

3. Offer attractive and rewarding job opportunities for employees.
4. Fully utilize the advantages and strengths of each bank and maximize the benefit of the consolidation
through cost reductions.
5. Create a new corporate climate and culture.

The Consolidation Process
The consolidation process will take place in twostages, Phase 1 from September 29, 2000, and Phase
2 from spring 2002.

IBJ Trust and Banking Co., Ltd.—will be merged
into Mizuho Trust & Banking Co., Ltd., also on
October 1, 2000.

• Phase 1• Phase 2

On September 29, 2000, the three banks will carryout a stock-for-stock exchange to establish Mizuho
Holdings, Inc. (“MHHD”). MHHD will manage theentire group by means of a Business Unit (BU)
structure based on customer segments and businesslines, and operating across the three banks.
The wholesale securities subsidiaries of the threebanks—DKB Securities Co., Ltd., Fuji Securities
Co., Ltd. and IBJ Securities Co., Ltd.—will bemerged into Mizuho Securities Co., Ltd. on October
1, 2000. Their trust and banking subsidiaries—The
Dai-Ichi Kangyo Fuji Trust & Banking Co., Ltd. andIn Phase 2, MHFG will take advantage of expected
legislative and tax code changes for corporate splits
in Japan to consolidate and reorganize the existingbank operations into legally separate subsidiaries
under MHHD according to customer segments andbusiness lines. The core subsidiaries that will beplaced under MHHD are as follows:
Mizuho Bank, Ltd.
Mizuho Corporate Bank, Ltd.
Mizuho Securities Co., Ltd.
Mizuho Trust & Banking Co., Ltd.

9Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

2. Maximize shareholder value and, as the leader of Japan’s financial services industry, earn the trust ofsociety at large.

Mizuho Holdings, Inc.
MHHD will be responsible for the management and administration of MHFG and other business incidental
thereto. It is due to be established as shown below.

Head Office Location:

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Marunouchi Center Building, 6-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo

Date of Establishment:
September 29, 2000

Paid-in Capital:¥2,572 billion

Allocation of Holding Company Stocks:
Under the stock-for-stock exchange, one common share (par value ¥50,000) in MHHD will be allocatedfor each 1,000 common shares (par value ¥50) of each of the three banks. Additionally, one preferredshare in MHHD will be allocated for each 1,000 preferred shares of each of the three banks.
Chairman & Co-CEO: Masao Nishimura
Chairman & Co-CEO: Yoshiro Yamamoto
President & Co-CEO: Katsuyuki Sugita

Number of Executives and Staff:
Total number of executive and managerial staff: Approximately 350 (of which nine are directors)

Group Name:
Mizuho Financial Group(MHFG)
Holding Company Name:
Mizuho Holdings, Inc.
(MHHD)
Meaning:
In Japanese, mizuho (瑞穂) means“fresh harvest of rice,” and thephrase “mizuho country”—meaning“fruitful country”—is used to referpoetically to Japan.

Reason for Selection:
The name “Mizuho” expresses thecommitment of MHFG, as Japan’s
leading financial institution, to offer
highly “fruitful” products and services to all of its customers, both
domestic and overseas.
We feel that the youthful andenergetic image of freshness projected by this name is perfectly
suited for the new corporate cultureof MHFG, and that it is a name withwhich everyone can easily become
familiar.

10

The Mizuho Logo:
The logo is the combination of theinitial letter “M” of “Mizuho” and a
deep blue arc. The “M” appears to
be in dynamic motion, expressing
liveliness and action, while the deepblue arc depicts the earth. The colors
used in the logo also have a special
meaning—the bright red highlighting
passion, action and dynamism andthe deep blue highlighting reliability
and stability.

• Councils

The management structure in Phase 1 will be as
follows:

MHHD will set up Councils to serve as forums
where its Executive Officers and officers of the Five
Core Subsidiaries—DKB, Fuji Bank, IBJ, Mizuho
Securities and Mizuho Trust & Banking—can holddiscussions regarding matters that require adjustment among the Five Core Subsidiaries.

• Board of Directors• Advisory Board
MHHD plans to establish an Advisory Board consisting of six eminent persons from financial andbusiness circles by April 2001.

• Executive Officers• Internal Audit & Compliance Committee

To separate managerial decision making and execution, and clarify levels of authority and responsibility, MHHD will introduce an Executive Officer
System.

MHHD will establish an Internal Audit &Compliance Committee under the Co-CEOs. This
independent committee will utilize its extensive
checking and verification functions to ensure thatbusiness operations are carried out in an appropriate manner from the viewpoint of compliance andauditing.

• Executive Management Committee
MHHD will establish an Executive Management
Committee to serve as an advisory body for the
Co-CEOs.
The Executive Management Committee willconsist of the three Co-CEOs, six Deputy Presidents,
and the Executive Officers in charge of the six
groups making up the Planning and Administration
Headquarters. Where necessary, Executive Officers
in charge of the Business Unit Headquarters will
also participate in the Committee’s meetings.

• Organizational Structure
The organizational structure of MHHD will be as
follows:(Planning and Administration Headquarters)
Strategic Planning Group, Financial Control andAccounting Group, Risk Management Group,
Human Resources Group, IT, Systems &Operations Group, and Audit and ComplianceGroup.

• Board of Corporate Auditors
MHHD will have six corporate auditors, including
three outside auditors.

(Business Unit Headquarters)
Consumer and Private Banking BU, Small
Business & Middle Market Banking BU,
Corporate and Financial Institutions Banking BU,
Public Sector Banking BU, International Banking
BU, ALM and Trading BU, e-Business and Global
Transaction Services BU, Securities andInvestment Banking BU and Trust and AssetManagement BU.

•

Business Policy Committees
MHHD will set up Business Policy Committees toserve as forums for overall discussion and coordination of company-wide issues of mutual concern togroups and BUs.

Glossary
BU: Business Unit
The Business Unit structure is a business management structure whereby group or bank profit centers are classified into
separate units according to the nature of their operations and the risks involved. This allows profits to be managed on an
individual unit basis and facilitates the efficient and flexible allocation of resources.
11

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

The Board of Directors of MHHD will consist of the
two Chairmen & Co-CEOs, the President & CoCEO, and six Deputy Presidents (three full-time andthree serving concurrently in positions at subsidiarybanks). There will be six Representative Directors:
the two Chairmen & Co-CEOs, the President & CoCEO and the three full-time Deputy Presidents.

Holding Company Management Structure (Phase 1)

General Meeting of Shareholders
Mizuho Holdings, Inc.
Board of Directors: 9

Advisory Board

Co-CEOs: 3
Full-time Deputy Presidents: 3
Deputy Presidents serving concurrently
in positions at subsidiary banks: 3

Executive Management
Committee: 15
Co-CEOs: 3
Full-time Deputy Presidents: 3
Deputy Presidents serving concurrently
in positions at subsidiary banks: 3
Executive Officers from
Planning and Administration Headquarters (Group
Heads): 6

Corporate Auditors: 6
Full-time: 3 Outside: 3

Board of Corporate Auditors
Business Policy
Committees

Co-CEOs: 3
Internal Audit& Compliance Committee

Planning and Administration Headquarters
Strategic
Planning
Group

Financial
Risk
Control andManageAccounting
ment Group
Group

Human
Resources
Group

IT,
Systems &Operations
Group

Audit andComplianceGroup

Planning & Financial Control
Committee
Portfolio Management Committee
ALM & Market Risk Committee
IT Strategy Committee
New Product Committee
Global Strategy Committee
Customer Satisfaction
Promotion Committee

Councils
Council for Branch Network
Council for Subsidiaries and Affiliates
Council for Business Coordination

Business Unit (BU) Headquarters

Trust and AssetManagement BU

Securities andInvestment Banking
BU

e-Business and Global
Transaction Services
BU

ALM and Trading
BU

International
Banking BU

Public Sector
Banking BU

IBJ

Corporate and Financial
Institutions Banking BU

Fuji Bank

Small Business & Middle
Market Banking BU

DKB

Consumer and Private
Banking BU

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ(from April 2001)

MizuhoSecurities
Co., Ltd.
Mizuho Trust& BankingCo., Ltd.

Notes
1. Further detailed consideration will be given to the formation of the Business Policy Committees and Councils.
2. The merger of DKB Securities, Fuji Securities and IBJ Securities into Mizuho Securities and the merger of Dai-Ichi Kangyo Fuji Trust & Banking and
IBJ Trust and Banking into Mizuho Trust & Banking will both take place on October 1, 2000.

Glossary
Stock-for-stock ExchangeThis method of establishing a holding company was allowed following the amendment of the Japanese Commercial Codein 1999. When MHHD is established in autumn 2000, all the shareholders of the three banks will transfer their shares to
MHHD and receive shares in MHHD in return. As a result, the three banks will become wholly owned subsidiaries of MHHD,
their shares will be delisted and the shares of MHHD will be listed.

12

Management Infrastructure
IT-related Investment

Information Technology (IT) Systems
MHFG will swiftly integrate existing systems andmake forward-looking strategic IT investments
amounting to approximately ¥150 billion annually.
Designed to make maximum effective use of thethree banks’ current systems, systems integrationcommenced in January 2000 and is due to be completed by March 2002.
The core banking system (account management
system) will be centralized under a “One-Bank
System” whereby the most efficient system of thethree banks will be comprehensively adopted. A“Suite Structure” will be adopted for market systems (dealing and trading) and for business information systems.
Studies will be conducted into the feasibility ofconsolidating and reorganizing IT affiliates of thethree banks with a view to creating entities that will
provide comprehensive IT solutions covering theplanning, development, management and operationof systems for MHFG. In addition to maximizing
economies of scale, every effort will be made toenhance the specialization and sophistication ofmanagement resources.
IT investment will be concentrated in strategically important areas, and the key investment targets and amounts are as follows:• Build customer databases to support market
strategies.
• Build global risk measurement systems.
• Build advanced systems to support domestic andoverseas trading activities.
• Build an e-business model that uses the Internet.
• Expand CMS and other settlement systems.
• Promote the use of IC cards.

(¥ billion)

IT-related investment

Cumulative for
FY2000-2002
PlannedCumulative for
FY2000-2005
Planned¥630¥1,100

Risk Management
MHFG designates risk management as one of themost crucial issues facing management. It is therefore committed to building a sophisticated management system that will keep the various kinds of riskthat arise in business to within appropriate andtolerable limits. MHHD’s efforts to manage consolidated risk will center on its risk management division, which will constantly monitor total
consolidated credit risk, market risk and otherforms of quantifiable risk, and provide reports,
analyses and advice.

Human Resources
In Phase 1, every effort will be made to standardize
a platform for a personnel system for the threebanks. In Phase 2, MHHD will exploit its distinctive
organizational features to introduce new personnel
systems that will reflect the unique business structures and cultures of the individual companies
under it. It will also create an attractive and fulfilling working environment by faithfully observing
the principles of independent judgment andaccountability, providing fair opportunities anddeveloping expertise in line with market standards.
New personnel systems will standardize certain
aspects of human resources management across theentire group, while promoting harmony with variations between individual companies and maximizing the human synergies arising from the

Glossary
One-Bank System
The most efficient system of the threebanks will be comprehensively adopted.

Suite Structure
The systems of the three banks arereviewed and the most efficient system foreach operation and product is selected.

13

CMS (Cash Management Service)
A service provided by banks tocorporate customers to efficiently
manage corporate fund operations.

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Note: IT-related investment = IT investment + IT personnel expenses +IT general expenses

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

consolidation. At the same time, MHFG will introduce a merit-based personnel evaluation system that
focuses on expertise and performance. Examples of
the areas where standardization will be encouraged
include the following:• The basic framework of the personnel system,
including rank classifications based on duties andcareer paths.
• Basic elements of welfare benefit programs, suchas health insurance.
• Design of retirement benefits and pension
schemes that allow personnel transfers between
group companies.

• A Chief Compliance Officer (CCO) will be
appointed to take total responsibility for compliance within MHFG.
• All BUs and the Five Core Subsidiaries will
enhance their compliance systems with a view tocreating a unified compliance regime throughout
MHFG.
• MHFG will enhance and strengthen its internal
auditing and compliance functions and its expertise in cutting-edge areas such as IT, dealing andtrading, and others.
• MHHD will establish the Internal Audit &Compliance Committee to check that operations
are managed in an appropriate manner.

Compliance
Stock Option Program

Since MHFG views compliance as one of the fundamental principles of sound business management, it
will work assiduously to ensure that all applicablelaws and regulations are observed and that all corporate activities are pursued in a fair and honest
manner that conforms to societal norms. In the
global financial market, MHFG will establish worldclass compliance procedures with a view to winningthe confidence of stakeholders, such as customers,
shareholders and the local communities in which it
operates.
It will also set up independent audit and inspection systems with extensive check and verification
functions. Specifically, MHHD will take the following steps to ensure that its compliance system issecond to none:• An Audit and Compliance Group will be set up
under the Planning and Administration
Headquarters but will function independently ofother groups in the Planning and Administration
Headquarters and the Business Unit Headquarters.

In order to increase performance on a group-widebasis and create a management structure whichplaces emphasis on value creation for shareholders,the introduction of a new compensation structurethat is linked to MHFG’s performance, such as astock option program, is being considered.

Self-Assessment, Reserves and Write-off
Standards
Strict and adequate self-assessment, reserves andwrite-off standards, in conformity with the
Financial Inspection Manuals issued by the Japanese
FSA, will be used uniformly by the three banks fromfiscal 1999 (ended March 2000). The final disposition of non-performing assets will be accelerated,aiming for improvement in asset quality.

14

The Mizuho Financial Group’s
Management Strategy

Aiming to Be a Top Financial Services
Group in Terms of Customer
Satisfaction

MHFG has established the following management
goals as a means of realizing its future concept of
becoming an innovative financial group that willlead the new era through cutting-edge comprehensive financial services:• One of the top five global banks and the leading
financial institution in Japan.
• A top financial group in terms of customer
satisfaction.
• A front-runner in IT and FT(financial technology).
• No. 1 in domestic commercial banking.
• A market leader in securities business andinvestment banking.
• A top-class institution in the trust,
asset management and settlement businesses.
• A management structure with best practices.

MHFG will draw on its roots as a service businessto establish a corporate culture that places the customer first, and to ensure that its employees will at
all times provide customers with the best available
services. MHHD will establish the Customer
Satisfaction Office whose primary goal will be topromptly channel feedback from customers into
improving the services offered by MHFG.

Aiming to Be a Top Financial Services Group in Customer Satisfaction (CS)

Improvement of Customer Satisfaction and Loyalty through Offering the Best Solutions
Mizuho Holdings, Inc.
Customer Satisfaction Office
Establishment of an organization topromote CS across all business sections

Mizuho Trust& BankingMizuhoSecurities

IBJ

Fuji Bank

Tools to Collect Customer Opinions
・Unified Customer Voice Card
・CS Survey
・Service Recovery Questionnaire

5 Core Subsidiaries

DKB

Customer Satisfaction Officewill plan and promote CS forthe entire groupEach bank will establish
its own CS Planning &Promoting Section for its
head office and branches

Common concepts and measures

Common tools to improve
CS among three banks
Incentive measures

Bilateral communication with customers
Corporate
Customers

RetailCustomers
15

Message to Customers
・Eye-catching CS message
・Active PR and advertisements

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Vision and Management Goals

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Using IT and FT to Transform theStructure of the Business

Creating the “Mizuho e-Business Model”(B2B, B2C and G2C)
The creation of a new business model covers several
areas. In the B2C sector, it covers Internet businesses, such as financial portal companies, EC(electronic commerce) community and Internetbased brokerage houses as well as the debit and IC
card businesses. In the B2B sector, the model covers
trade finance EDI (electronic data interchange) andsettlement and certification business for companies,
while in the G2C sector it covers infrastructures
such as the Utilities & Tax Bills Net.
MHFG will actively participate in the abovementioned B2B, B2C and G2C sectors.

As a front-runner in IT and FT, MHFG will workto establish the “Mizuho e-Business Model,” use IT
to improve the effectiveness and efficiency of its
business strategy and provide solutions that utilize
FT. In so doing, it will alter the processes whereby
intra-group business is executed, while endeavoring
to offer high-quality services that anticipate theneeds of the changing times and proactively developing new business models.

Creating the “Mizuho e-Business Model”

B2B+B2C+G2C

New Business Creation

B2B Settlement/Certification
Trade Finance EDI
Electronic
Certification

EC Community
Financial
Portals

Internet Business

Card Business
Debit /IC Cards
Wholesale
Global CMS
Settlement Infrastructure Processing

Multi-payment
Infrastructure
Utilities & Tax
Bills Net (G2C)

RetailInternet
Banking

Business Process Reengineering (Rationalization)

Providing FT-based Solutions
MHFG will offer various financial services, focusing
on discovering and supporting the new businesses,
venture companies and technologically advanced
firms that will play a leading role in the 21st century, setting up a venture fund to nurture them andsustain their development. MHFG will also arrange

M&A deals as part of the realignment and restructuring of domestic and overseas operations and theimplementation of new business strategies, and will
be involved in the securitization of assets, as well as
in such structured finance activities as the creationof a comprehensive real estate investment trust.

Glossary
B2C
Business to Consumer:
Consumer-oriented business

B2B
Business to Business:
Business between companies
16

G2C
Government to Consumer:
Business between governments andconsumers

Business Strategies
MHFG’s business strategies will utilize the “three
primary strengths” gained through consolidation tocreate an optimal group business portfolio that isboth balanced and leads in each business sector. The“three primary strengths” are as follows:• An overwhelming customer base in the domestic
market.
• High-quality and comprehensive financial service
capabilities.
• Expanded IT investment capability for highgrowth areas.

market. MHFG will also use its ability to respond to
customers’ requirements as well as its powerful
network of cooperating corporations and traders tostrengthen its consumer loan services.

Small Business & Middle Market Banking

Basic Strategy

Consumer and Private Banking

MHFG will:• Provide small and medium-sized businesses
which underpin the Japanese economy with asmooth and stable supply of funds.
• Expand its solutions business in line withbusiness strategies.
• Use IT to provide a speedier, more accurate
response to customers’ requirements.
• Endeavor to identify new businesses in highgrowth sectors and provide them with thesupport they need to develop.
• Work to build an efficient, high-quality
operating structure.

Vision: MHFG will become the consumers’ bank ofchoice by providing customers with the highest levelof satisfaction throughout their lives.
Basic Strategy
MHFG will become the leader in the consumer
and private banking sector by:• Developing relationship marketing further bymaking maximum use of MHFG’s enormous
customer base and overall strengths.
• Selecting strategic markets and focusing
allocation of resources.

In the small business and middle market banking
sector, MHFG will aggressively support a wide
range of corporate activities by developing new
products and building up its staff of specialists inopening up new markets. To do so, it will makemaximum use of the consolidated strengths of thethree banks, including the information and knowhow they glean through their transactions with awide range of companies, and their extensive
domestic and overseas networks.
MHFG will offer solutions to match customers’
business strategies, assisting with IPOs, equity
investments, M&A and MBOs and providing management support and information. Likewise, it will
devote considerable effort to identifying and nurturing new businesses and venture companies. In doingso, it will provide the small and medium-sized companies that constitute the backbone of the Japanese
economy with a smooth and stable supply of funds.

In the consumer and private banking sector, the firststep will be to create a solid platform by aggressively
investing in IT. In practical terms, this means developing and expanding convenient multichannel networks such as Internet and mobile banking services
and in-store branches through cutting-edge IT investments and tie-up strategies. MHFG will also build up
its databases to fuel more sophisticated marketing
techniques focusing on multifaceted relationships.
By applying its overall strengths in this way,
MHFG will establish a lineup of advanced products
and services that better match customers’ needs,
including state-of-the-art settlement services such as
multifunctional IC cards and easy-to-use credit card
services. A new loyalty program will also be inaugurated to raise customer satisfaction to the highest
possible level.
Focused allocation of resources in strategic
markets will enable MHFG to provide customers
with highly professional private banking services
that make maximum use of overall group strengths
and take advantage of its incomparable corporate
customer base to concentrate on the corporate retail

Glossary
MBO: Management Buyout
The process whereby the current management of a company enlists the financial support of external investors to
buy the company, or one or more of its operational divisions or subsidiaries, from current shareholders.

17Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Vision: MHFG will become “the best partner forsmall and medium-sized companies” by speedily
offering high-quality finance and sophisticatedproducts and services that are carefully tailored totheir requirements.

Corporate and Financial Institutions Banking
Financial Institutions
Vision: To become the leading “Money Center Bank.”

Large Corporates
Vision: MHFG will aim to become “the No. 1
Japanese wholesale bank in the global market” fully
equipped with information and financial know-how.

Basic Strategy
Financial Institutions as Customers• MHFG will provide the best solutions for all
the investment and management needs ofdomestic financial institutions.
Financial Institutions as Business Partners• MHFG will support financial institutions insolving management problems.
• MHFG will support financial institutions in theircustomer-oriented sales activities.

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Basic Strategy
MHFG will:• Create a strategic portfolio based on its highlevel of managerial competence.
• Deliver business coordination services on a
global scale.
• Offer innovative financial services that utilize
cutting-edge financial know-how and a strong
information infrastructure.
• Serve as a partner in building new businesses
and management structures by taking an activerole in assisting customers with their strategic
management and business needs.

MHFG will act as a leading “Money Center Bank”
that can respond to the constantly diversifying fundmanagement needs of financial institutions throughbank debenture issues, investment trusts (mutual
funds), trusts and securitization products. It will
also provide advisory services in connection withportfolio management, IT, securitization anddomestic custody.
MHFG plans to become a solid business partner
for financial institutions in various areas. It will
utilize its sophisticated IT for insourcing business,such as settlement and defined contribution pension
plans (the Japanese equivalent of 401(k)), provide
assistance with overseas operations and offer investment banking services relating to M&A, MBOs,
PFIs and others. In addition, through its wholesale
business, MHFG will exploit its strengths in productand service development to offer over-the-countersales of investment trusts and develop products
jointly with insurance companies.

In the wholesale banking sector, MHFG will offer
optimal solutions to satisfy the increasingly complex
and varied requirements of customers by establishing a highly sophisticated full-line service menu thatblends the financial expertise and utilizes the global
network of the three banks.
In particular, it will use this network to provide
advisory services covering cross-border M&A,
business strategies and financial risk management.
It will also serve as a partner in building new businesses and management structures by taking anactive role in assisting customers with their strategic
management and business needs.
Additionally, MHFG will create e-businessmodels that emphasize customer convenience.
Using strategic IT investment, it will strengthen its
firm banking (FB) and CMS functions. It will alsoestablish virtual corporate retail services by meansof BPR portal sites, establishing exclusive home
pages that can be accessed by personal computers
installed on the customer’s premises.

Glossary
BPR
Business Process Reengineering

PFI: Private Finance Initiative
A financial structure whereby the private sector takes the place of the national
and/or local governments in supplying the funds, technologies and know-how
necessary to build and operate assets that provide services to and for the public
sector. PFIs are used to reduce the public sector’s capital spending requirements
and to increase efficiency.

18

Public Sector Banking
Vision: To be the leading bank in public sector banking.
Basic Strategy• MHFG will provide comprehensive solutions tomeet the needs of public sector entities in suchareas as diversified funding and investment,
downsizing and raising organizational efficiency.

MHFG is reinforcing its comprehensive financial
services in response to the public sector’s growing
need for funding from the private sector, the diversification of fund procurement and investment
operations, downsizing and rising demand for more
efficient administrative services.
Specifically, MHFG will take an aggressive
approach to solving the increasingly diverse andcomplex issues affecting central government relatedtransactions following reforms of the Fiscal
Investment and Loan Program (FILP) and the social
security system. Based on more effective use of its
nationwide network and its speedy, accurate operations services, MHFG will also increase its designated financial institution transactions with regional
municipalities, and provide support for PFIs.

Securities and Investment Banking
Vision: Create Japan’s first full-scale investment bank.
Basic Strategy

MHFG will participate actively in the securities and investment banking business, with
Mizuho Securities playing a core role.
• MHFG will strengthen its underwriting andsales activities through alliances with groupsecurities companies.
• MHFG will build a full-scale investment bankthat is capable of competing with the bighouses of the Americas and Europe.

MHFG will strengthen its existing operations andtake up new challenges in the securities-related
business. Its activities in the securities and investment banking sector will aim to combine its securities functions and investment banking functions inorder to provide a full range of products and services covering domestic and foreign stocks andbonds, derivatives, M&A, structured finance, MBOs
and real estate funds.
MHFG will establish a system centered on
Mizuho Securities to provide integrated management and administration of its domestic and overseas securities businesses and thus provide
satisfactory solutions for its customers’ global
requirements. At the same time, it will strengthen
its underwriting and sales capabilities by strengthening ties with MHFG retail securities companies
and setting up an Internet-based brokerage house.
Kankaku Securities Co., Ltd. will change its
name to The Mizuho Investors Securities Co., Ltd.
on October 1, 2000, and develop its business as aretail securities company assuming a role of developing the middle retail business of MHFG.

International Banking
Vision: MHFG will become “the best partner” forcustomers who are in the process of globalizing.
Basic Strategy
MHFG will:• Build a powerful global network.
• Offer leading-edge financial products on a
global basis.
• Expand its global customer base and portfolio
in a balanced manner.

MHFG will secure the position of most trusted
banking partner for global corporations by utilizing
its extensive overseas network and its industrial
sector-based relationship management (RM)
specialists.
MHFG will work to establish itself as “Asia’sNo. 1 financial services group” as part of its plan to
become the best partner for Japanese customers
going abroad and companies from the Americas andEurope coming to Asia. It will offer services ranging

19

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

from local currency-based transactions and trade
settlements to project finance, M&A and otherinvestment banking services.
In the Americas and Europe, it will aim tobecome a top-tier foreign bank by establishing a
powerful team of industrial sector-based RM specialists, securing for itself the position of a top bankin arranger and syndication services. It will also be
actively engaged in financial product businesses
such as project finance, M&A, MBOs and LBOs.

Trust and Asset Management

e-Business and Global Transaction Services

Vision: To become a top player in the areas of asset
management and administration, and the defined
contribution pension plan business.

Vision: To establish advanced settlement ande-business models.
Basic Strategy

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Basic Strategy

MHFG will:• Build and put into practice the next generationof settlement systems, leading possibly topotential strategic alliances.
• Build up its clearing business by centralizing
settlement operations and using IT more extensively.

MHFG will:• Focus its management resources on key areas
such as master trust business and otheraspects of asset administration.
• Secure a position as a front-runner in thedefined contribution pension plan market.
• Work to become a first-class asset management group, covering trusts, investment trusts
and the investment advisory business.

MHFG will provide customers with advanced financial services by establishing and actualizing a newgeneration of businesses while keeping a watchfuleye open for potential strategic alliances.
More specifically, it will establish the “em-town”
e-business model (please refer to page 24), promote thestandardization of IC cards and the greater use of debit
cards and advance into such areas as global CMS, tradefinance EDI and dealing and trading settlement.
The group is also centralizing its external settlement operations and upgrading its IT to improvethe efficiency of its operational divisions andstrengthen control of settlement risk.

MHFG will make the best possible use of its
extremely strong customer base in the trust andasset management sector, as well as the wide rangeof financial products offered by group asset management companies. It will also strengthen its alliancewith four life insurance companies to develop joint
asset management and defined contribution pension
plans, with special emphasis on combining theirexpertise and avoiding overlapping investment.
In the investment trust and investment advisory
sector, MHFG will work to become one of theworld’s leading asset management groups in termsof both the quality and the value of assets undermanagement. To this end, it will maximize customer satisfaction by taking advantage of the distinctive product mixes and sales functions offeredby group asset management companies, and create afirst-rate operating structure for investment trusts.

ALM and Trading
Vision: To build a stable earnings structure bystrengthening its risk management functions andestablishing itself as a major global player.
Basic Strategy
MHFG will:• Respond accurately to a wide range of customer needs.
• Enhance its risk management functions.

• Trading
Building on the robust customer base formed by the
consolidation and the group’s market-making
strengths, MHFG will strive to enhance its trading
techniques as a means of responding more accurately to customers’ diversifying needs.
ALM
To create a stable earnings structure, MHFG will
introduce sophisticated ALM techniques to provide
accurate control of assets and liabilities and manage
risk with precision.

Glossary
Defined Contribution Pension Plan
A pension scheme whereby participants make predetermined contributions and invest them at their own discretion. Similar to the 401(k) plans common in the UnitedStates.

•Master Trust
Trust structure whereby a single trust bank manages
pension fund assets entrusted to several investment management institutions. It covers a wide range of services,
including custody and settlement of securities, the preparation of accounting reports, securities lending, performance
evaluations and risk management.

20

Financial Targets
MHFG is committed to maximizing its earning
power by creating an optimal group business portfolio that is balanced and leads in each business sector.
Setting appropriate pricing levels while boostinghigh-earning assets such as housing loans will
increase net interest income in the banking sector.
Financial Targets(¥ billion unless otherwise indicated)
FY2002
FY2005
Projected
Projected

FY1999PlannedFY1999Actual

¥ 810.0¥ 876.8¥1,250.0

210.0

194.4

580.0

800.0

1,640.0

1,662.3

1,938.4

2,150.0

General and Administrative Expenses**

920.0

850.2

866.4

800.0

Net Business Profits (Before Provision ofGeneral Reserve for Possible Loan Losses)**

Consolidated Net Business Profits*
Consolidated Net Income
Gross Profits**¥1,600.0

720.0

806.6

1,066.0

1,350.0

Ratio of General and Administrative
Expenses to Gross Profits**

55% (approx.)51.1%

45% (approx.)

40% or lower

Consolidated ROE

4% (approx.)

4.2%

8% (approx.)

12% (approx.)

Consolidated Risk-Based Capital Ratio(BIS Capital Ratio)

11% (approx.)

11.7%

Tier I Ratio

6% (approx.)

6.0%

11.5% (approx.) 11.5% (approx.)
7% (approx.)

7.5% (approx.)* Consolidated Net Business Profits: Three banks’ Net Business Profits + (Subsidiaries’ Ordinary Profits  Equity Ratio) – Earned Dividends, etc.
** Figures for three banks only (non-consolidated).

Increase in Consolidated Business Profits[Assumptions]
Real GDP
3M TIBOR
Yield on JGBs

FY1999
0.5%
0.2%
1.7%

FY2002
2.0%
1.3%
3.5%

(¥ billion)
3,000

FY2005
2.0%
1.5%
3.5%
12%

1,500

5.8%
4.3%

1,000
500
0

7.5%

8

Mizuho Securities
Mizuho Trust & Banking

1,600
250

6

+¥100 billion comparedwith FY1999

4
1,350
1,070

2

720

FY
1999

FY
2002

(Subsidiaries’ Ordinary Profits x
Equity Ratio)-Earned Dividends, etc.
Net Business Profits
of the Banks

1,250
180

810
90

Consolidated ROE
Tier I Ratio

10

2,500
2,000

(%)
12

FY
2005

0

21

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

MHFG will also work to increase its commission
income by strengthening its non-asset and commissions businesses, including Mizuho Securities andMizuho Trust & Banking.
By closing and consolidating branches andstreamlining its workforce, MHFG aims to reduce
its expense ratio to 40% or below by fiscal 2005.

Current Status and Forecast for Earnings

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Consolidation EffectOn a cumulative basis, it is forecast that by fiscal
2005, the synergy effect on gross profits willamount to ¥460 billion, the restructuring effect to¥280 billion and the consolidation cost to ¥230
billion, resulting in a cumulative net consolidation
effect of ¥510 billion.

The consolidation of the three banks into MHFG
will yield considerable benefits as synergies
strengthen the business base and further restructuring reduces costs.
• The non-recurring expenses directly related to theconsolidation (“consolidation cost”) will be covered by the increase in gross profits generated bysynergies and expenses reductions arising fromfurther restructuring.
• From fiscal 2003, the stronger business base andrenewed efforts to restructure will enable MHFG
to make further cost cuts and enhance the consolidation effect.

Consolidation Effect(¥ billion)

Synergy Effect on Gross Profits

Cumulative for
FY2000 - 2002
Projected

Cumulative for
FY2003 - 2005
Projected¥ 94.6¥371.7

Consolidation Cost

(157.6)(77.5)

Restructuring Effect

76.8

204.7

Net Cost Reduction(80.8)

127.2

Net Consolidation Effect

13.8

498.9

April 1999 –March 2003

April 2003 –March 2006

(83)

(70)

Domestic Branches*
Overseas Offices/Subsidiaries
Workforce

(47)

(7)

(4,500)(2,500)(approx.)(approx.)* Represents the net reduction after taking into account approximately
17 branches of the Mizuho Corporate Bank.

Realization of Consolidation Effect (Banking Segment)

Aggregate Total(¥ billion)
250

Net Consolidation Effect+510.0

200

157.0

150

100

Synergy Effect on
Gross Profits+460.048.5
Restructuring Effect+280.050

55.0
0(20.0)(54.0)

-50

-100

FY
2000

FY
2001

FY
2002

FY
2003

FY
2004

FY
2005

22

Consolidation Cost
(230.0)Profit Trends by Business Segment
comprehensive financial services, including sophisticated FT and specialist know-how, in boldly tackling the creation and development of new businessfields.
The table below shows MHFG’s profit targets bysegment.

Each BU will engage in active cross-marketing ofvarious financial services offered by other BUs,
thereby delivering the products and services thatbest meet the increasingly varied and sophisticatedneeds of customers through the most appropriatedelivery channels. They will also make the maximum possible use of the strengths of MHFG’s(¥ billion)
FY1999Actual

FY2000
Projected

FY2002
Projected

FY2005
Projected

Consumer and Private, and Small Business &Middle Market Banking

Three banks¥208.3¥221.2¥ 504.7¥ 653.7

Wholesale Banking

Three banks

417.6

406.9

439.9

509.1

Securities and Investment Banking,Trust and Asset Management, ande-Business and Global Transaction Services

Three banks

17.4

16.7

24.4

72.5

ALM and Trading

Three banks

231.1

247.9

166.8

200.7

Total

Three banks

806.6

829.2

1,066.0

1,350.0

Mizuho Securities

13.8

22.8

41.2

56.0

Mizuho Trust & Banking(19.6)

(8.3)

3.5

46.2

(5.8)

14.5

44.7

102.2

800.8

843.7

1,110.7

1,439.1

Total for Mizuho Securities andMizuho Trust & Banking(Three banks + Mizuho
Securities + Mizuho Trust& Banking)Total

Note: The figures represent Net Business Profits for the three banks and Ordinary Profits for Mizuho Securities and Mizuho Trust & Banking.

Retained Earnings
By fiscal 2005, MHFG is expected to accumulate sufficient retained earnings to cover the ¥1,950 billion in
public funds injected into the three banks.
Retained Earnings(¥ billion)
4,000
3,000
2,000

Retained earningsof 5 Core Subsidiaries

1,000
0

FY
1999

FY
2002

Equivalent to¥1,950 billionof public funds(preferredstocks)

FY
2005

23

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Profit Targets by Segment

Joint Services Offered by the ThreeBanks

MHFG Strategic Projects•

MHFG will generate new value added by offering
services in three key sectors: Banking, Financial
Portals and EC Community. Using various settlement methods, such as debit cards, credit cards andbank transfers, these services will deliver one-stop
shopping in everything from financial services tomerchandising.
In the area of “Banking,” an “em-town branch”
will be set up, subject to regulatory approval, tooffer deposit, loan, fund and account transfer, shopping settlement and other services. A “Financial
Portal” will be set up through consortia with external partners to display and offer a wide range offinance-related products. The “EC Community” willconsist of a shopping mall offering numerous attractive products and services in conjunction withexternal partners from many different businesses
under a single roof.

• Inauguration of “em-town” e-Business Model

Reciprocal Access to ATMs
• The three banks started offering reciprocal
access for ATM withdrawals from April 3, 2000.
• DKB and Fuji Bank started offering reciprocal
access for ATM deposit transactions from
August 21, 2000.

• Spark Cards• Spark Cards are dual-function credit/debit
cards, which DKB and Fuji Bank have beenissuing since March 2000.

• Mizuho Group Credit Cards• The credit card subsidiaries of the three banks
plan to issue joint Mizuho Financial Group
credit cards from October 2000.

The “em-town” Business Model

EC Community
TravelBooks

Tickets

Music

CDs

PCs/
Software

ISPs

Trading

Mail Order

Local
Specialities

Advertisements

New Portal Site Operating Company
Alliance withDistribution Industry

Financial Portal
Life
Insurance

Casualty
Insurance

Securities

Mizuho Online
Securities

TrustsCredit Cards

401(k)[Advantages] Information Service: Simulation Service, Search Engines
Realization of One-to-One Marketing
Joint Advertisement, Joint Marketing

Settlement Tie-ups

Convenience
StoresAlliances

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Major Joint Projects

DeliveryService

SET Debit, Bank Transfers, etc.

Banking Services
em-town (virtual branch)

Mizuho Financial GroupInternet Banking: Deposits, Loans, etc.

Internet Banking

24

Operation by
Mizuho Financial GroupAsset Administration Services, includ• Joint
ing Master Trust Business
Using the high credit ratings supported by its soundfinancial position and strong customer bases of thethree banks, MHFG will develop its master trust

MizuhoFinancial
Group

Asahi
Mutual Life
Insurance

Dai-ichiMutual Life
Insurance

FukokuMutual Life
Insurance

YasudaMutual Life
Insurance

Master Trust Business

Securities Administration

Custody and settlement services
for securities, financial reportingEfficient asset allocation(securities lending, investment )High value-added information(investment evaluations,risk management)

Securities administration regarding
pension trusts, specified money
trusts, mutual funds, etc.
Administration of life insurancecompanies’ securities
Custody business

Development of Defined Contribution• Joint
Pension Plan Business
These tasks include the development of educational
tools for potential and current policyholders, operation of support centers and the development andmanagement of Internet-based delivery channels.

MHFG will conduct studies into joining four life
insurance companies and group firms in establishing a joint venture company that will undertake
managerial and administrative tasks associated withthe defined contribution pension plan business.
Joint Operating Company for DefinedContribution Pension Plan Business

Customers’ Needs

Outsourcing of operations

Customer

Joint-operating company
Contract

Life Insurance Cos.:
Asahi Mutual
Dai-ichi Mutual
Fukoku Mutual
Yasuda Mutual

Education of members
Operation of support centers
Development and operationof web channels

Asset management contract

25

Joint-operation Project

MizuhoFinancial
Group

Asset Management

JIS&T (Record-keeping company)

Contract

Administration

Product Offering

MizuhoFinancial Group
Contract(banks, trustbanks, investment
advisory companies)

Four life
insurancecompanies
Etc.

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Tie-ups with Four
Insurance Companies’
Asset Management
Businessand other asset administration businesses while
promoting its ties with four life insurancecompanies.

• Establishment of the Mizuho Venture Fund
The three banks will jointly establish the “Mizuho
Venture Fund” to identify and support new
businesses, venture companies and firms with

Establishment of Multiple Funds under Mizuho
Venture Fund (Joint Venture of the Three Banks),
Each Fund Managed under Different Investment
Aims and Concepts (e.g. Target Industry, Growth Stage)

Fuji

DKB
Investment

IBJ

Investment

Investment

Mizuho Venture Fund
Investment

Fund A

Investment

Fund B

Investment

Fund C

Investment

Fund D

New businesses regarding IT, biotechnology, environment, etc.

of a Real Estate Investment• Establishment
Trustsuch as office buildings, condominiums, commercial
facilities and other real estate—with a view toeventually listing it on the Tokyo Stock Exchange.

MHFG and Mitsui Fudosan Co., Ltd. will jointly
establish the “Real Estate Fund”—an investment
trust (mutual fund) aimed at investing in real estate
Real Estate Investment Trusts

A Joint Fund with Mitsui Fudosan Co., Ltd.
Full Operation within FY2000, Aiming for Future TSE Listing

Fund Management Company
Mitsui FudosanCo., Ltd.
(real estatecompany)

life insurancecompanies,
real estate companies,
industrial corporations,etc.

Capital/Personnel
Financial functions

Real estate functions
Mutual Fund
Trust BankReal estate owners:

Capital/Personnel

Real Estate Trusts

Foundation of MHFG through the Consolidation of DKB, Fuji Bank and IBJ

Mizuho Venture Fundtechnological capabilities that will play a central roleas leaders in the 21st century.

TSE Listing

Target properties:
office buildings,
real estate for other purposes

Life
Insurance
Companies

Real Estate
Companies

PensionFunds

26

Institutional
Investors

Individuals,
etc.

MizuhoFinancialGroupReview ofOperations
Business Topics

Management Strategies, and Product and Service
Innovations for the 21st Century

27

Consumer
andCommercial
Banking
Providing Optimal Services via Advanced Multiple Channels to Meet
Customers’ Increasingly Diverse and Sophisticated Needs“Fuji Small and Medium-size Business
Development Fund” Launched

New Benefits for Fuji First Club Members• Preferential fund transfer charges for Fuji First

Consumer and Commercial Banking

We created the Fuji Small and Medium-size

Club members (September 1999)

Business Development Fund to provide active sup-• Cash card theft insurance for Fuji First Club

port for the growth and development of small andmembers (November 1999)

medium-sized enterprises (amounting to ¥600

•Cyber Bank insurance for Fuji First Club Members

billion). In June, the “Safety Pack,” with a built-in

and Fuji Cyber Bank users (June 2000)

interest rate cap, was launched as part of this fundMembership of theto meet the needs of customers who want to reduce

Fuji First Club, athe risk of future interest rate rises.

membershipreward program

The Business Development for High-Growth &Emerging Market and the Business Development
for IT Industry Departments Established within theCommercial Finance Business Divisionthat offers special
benefits to member
customers, continues to expand

The establishment of the Business Development forsteadily and already exceeds 600,000. Over the past

High-Growth & Emerging Market department in theyear, we have introduced a variety of new benefits

Commercial Finance Business Division reflects ourin response to requests from members. In additioncommitment to the enhancement of our organization

to preferential fund transfer charges, several new

in the new business market. In January 2000, thepeace-of-mind benefits have been introduced,

department successfully used its information

including cash card theft insurance and Fuji Cyber

resources and specialized knowledge about new

Bank insurance.

businesses to develop a range of products and schemes
designed specifically for firms entering new businessFuyo Techno Library Forumsectors. In May 2000, the Business Development for

The Fuyo Techno Library Forum was established

IT Industry department was established in response toby the Fuji Research Institute Corporation to pro-

trends in the activities of IT-related businesses.

vide businesses with better matching services
through access to information about technology,
with particular emphasis on face-to-face interaction
between interested parties.

28

Fuji Bank Selected as Main Financial Institution
for the Tokyo Metropolitan Government’s
Collateralized Loan Obligation (CLO) Scheme

pay utility charges. The branches also handle foreign
currency deposit transactions. This new concept has
become very popular with customers.

This scheme was set up to assist small and mediumsized enterprises with high growth potential and“Fuji Mobile Banking” Launchedstandards of technology. We work through the

Our customers are now able to access a variety ofscheme to provide such companies with new financ-services, including account balance inquiries anding methods based on direct market access.

transfers of funds, via NTT DoCoMo’s “i-mode”
mobile telephones. In May 2000, we also began to

Recipients Chosen for Grants from Charitable
Trust for Fuji New Business Fund

provide a range of information services via this sys-

The Charitable Trust for Fuji New Business Fund isinterest rates, foreign currency deposit interest rates,a charitable public trust managed by The Dai-Ichi

exchange rates, and investment trust unit values.

tem. Information available includes deposit and loan

¥45 million. It was decided to double the ceiling on

Japan Multi-payment Network Promotion
Association Establishedgrants from ¥5 million to ¥10 million, effective from

The range of banking channels has expanded tofiscal 2000.

include ATMs, telephone banking and Internet bank-companies were selected to receive grants totaling

ing. However, it was not possible to use these systems

Inauguration of “Fuji Information Net Service(FINS)”

to pay charges for electricity, gas, telephone and other

The Fuji Information Net Service (FINS) is a free

Promotion Association was established to developInternet-based information service for customers.

systems that would allow the use of these new pay-

Information is provided to meet customer needs inment channels. The association’s membershipsuch areas as foreign exchange, business manage-

includes financial institutions, payment collection

ment, services and products.

companies and system vendors. Fuji Bank acts as one

utilities. The Japan Multi-payment Networkof the representative companies for the organization.

“Fuji Everyday Bank” Opened• Ichikawa-Myoden Branch (Chiba) (April 1999)“Fuji Spark Card” Launched• Higashi-Totsuka Branch (Kanagawa) (October 1999)

The Spark Card combines the functions of a cash

• Tobu-Nerima Branch (Tokyo) (May 2000)

card and credit card. Cards issued by Fuji Bank andDai-Ichi Kangyo Bank use a common product name

Fuji Everyday Bank is the name used for our in-and design. As the range of applications for cash

store branches that offer a full range of banking

cards constantly expands, we remain committed toservices even after 3 p.m. on weekdays and on

enhancing customer convenience in this area.

Saturdays and Sundays when regular branches areclosed. In May 2000, we opened the third of thesebranches. Customers can open accounts, process
deposit transactions, apply for housing loans and29

Consumer and Commercial Banking

Kangyo Fuji Trust & Banking Co., Ltd. A total of 12

Global CorporateandInvestment
BankingGlobal Corporate and Investment Banking

Borderless Services Based on Advanced Financial Technology
Fuji Bank Named in Project Finance Magazine’s“Deal of the Year”

Active Involvement in the Syndicated Loan
Business

We have posted specialist project finance staff in a

The Japanese syndicated loan market has expanded

number of overseas locations, including New York,

dramatically in recent years. This reflects increased

Houston, London, Singapore and Hong Kong. We

demand from corporate customers who see syndi-

are involved in various projects, including infra-

cated loans as an important means of procuring

structure and electric power projects as financial

funds, securing liquidity and reducing administra-advisor and lead manager, and compete aggressively

tive costs. The market grew from US$3.7 billion

in the market. In 1999, we acted as lead manager in(approximately ¥400 billion) in 1998 to US$36.6

numerous large-scale projects, several of whichbillion (approximately ¥3.8 trillion) in 1999.

were selected for “Deal of the Year” awards by

Transactions in the first three months of 2000

Project Finance Magazine: a copper mining develop-

reached US$21.3 billion (approximately ¥2.2 tril-

ment project in Peru, a power generation project inlion). We are actively involved in arranging domes-

India, and the Universal Studios project in Osaka.

tic syndicated loans, ranking second in value terms
in 1999 and first in the January-March quarter of2000.
* Figures and rankings according to IFR Securities Data.

L/C Refinancing Arranged for Iranian Central Bank
We established a US$100 million credit line for the
Iranian Central Bank, becoming the first Japanesebank to do so. The funds will be used to refinanceletters of credit issued by the Iranian Central Bankand five state-owned banks for up to one year as acondition for MITI’s trade insurance. Fuji Bank
customers involved in exporting to Iran will benefit

Copper mining development project in Peru

not only from reduced risk, but also from lower commissions and assured recovery of export payments.

30

including credit and repayment risk analysis,
arrangement and other aspects, were handledwithin the Fuji Bank Group.

“FBF2000” MBO Fund CreatedWe signaled our full-scale entry into the MBO market by becoming the first Japanese bank to establish
our own MBO fund, which is worth ¥15 billion.

“Mizuho Venture Fund” Established

Chicago-based Heller Financial, Inc. has strength-

Fuji Bank, DKB and IBJ invested jointly in thisened its finance business, a business area in which

venture capital fund, which aims to provide support

it specializes, by developing expertise and financial

for new businesses, venture companies and firms

products through corporate acquisitions and part-with advanced technology.

nerships with global companies. Over the past year,
it has enhanced its health-related financing capabili-“FCC IT Fund 2000” Establishedties through the acquisition of Healthcare Financial

Fujigin Capital Company has established a venturePartners, Inc. It has also strengthened its vendor

capital fund specifically for IT-related companies.

lease business in the area of electronic products byforming strategic partnerships with global compa-

Real Estate Finance Division Created

nies, such as Sony and IBM.

We set up the Real Estate Finance Division tostrengthen our capabilities in the rapidly expanding

Establishment of Fuji Corporate Advisory Co., Ltd.

market for real estate finance. Our goal is to com-

Fuji Corporate Advisory Co., Ltd. is the first special-bine the Bank’s functions and know-how in theist M&A and MBO company established by afield of real estate to enable us to develop our real

Japanese bank. It was established in anticipation of

estate finance business aggressively. Current areas

further growth in M&A activity.

of involvement include coordination for major realestate projects in Japan, providing non-recourse

Fuji Securities Starts Full-scale Securities
Operationsloans and domestic real estate securitization.

In the past Fuji Securities Co., Ltd. provided services
relating primarily to bonds. It has now established“Fuji Inforex” Internet-based Foreign Exchange
Service Launched

an organizational structure capable of handling all

Since April, our customers have been able totypes of stock-related business, including the use ofprocess foreign exchange transactions with us overstocks as a financing tool for customers.

the Internet. Establishing this service has enabled us
to respond to the requirements of corporate cus-

Securitization of Housing Loans

tomers, Asian banks and Japanese regional banks

We were the first Japanese bank to implement a

without going through branches or dealing rooms.

domestic public bond offering to be used in residential mortgage-backed securities. All related tasks,
31

Global Corporate and Investment Banking

Closer Business Links with Heller Financial

Asset Management Group/Processing Services and Information Technology Group

Asset Management Group/
Processing Services andInformation Technology GroupSpecialized High-quality Services to Meet Changing Customer Needs
Fuji-Lord Abbett International, Limited Ranked
First Among British Pension Funds in Terms ofInvestment Performance

Fuji Bank and Yasuda Trust & Banking Establish
Joint Branches

The investment results achieved by Fuji-Lord

Ltd. established their first joint branches. The aim is

Abbett International, Limited over historical periods

to enable Fuji Bank customers to benefit from theof between two and eight years are the best of any

specialized advisory services offered by Yasuda

British pension fund. Since July 1991, it has

Trust & Banking, and allow customers of Yasuda

invested pension assets in various countries’ stock

Trust & Banking to gain immediate access to themarkets. It uses its own industry analyses andcomprehensive financial and information services

corporate analytical techniques to select investmentthat only a major commercial bank can provide

targets around the world.

under one roof. To date, the number of joint

As of December 31, 1999
Past 8
years

Past 5years(Source: CAPS)
Past 2
Past 1
years
year

Annualized
investment returns 27.9%
Rank
1st

32.9%
1st

46.0%
1st

Fuji Bank and The Yasuda Trust & Banking Co.,branches has increased to 10.

75.8%
2nd

(out of 53) (out of 58) (out of 62) (out of 67)• CAPS (Combined Actuarial Performance Services, Ltd.) is aleading UK-based independent provider of specialist investment evaluation services.
• Range of ranking survey: “Mixed with Property” (wide range
of investments, including UK stocks, world stocks and realestate).

Fuji Bank and Yasuda Trust & Banking Joint Branch

32

Range of Investment Trust Products Expandedrisk investment trusts, to the range of investment

The deregulation of stockbroking commissions hastrust products we offer to meet the needs of ourresulted in the establishment of numerous online

customers.

stockbroking firms. We established a settlement tieup with Monex Inc., which commenced securities

The Dai-Ichi Kangyo Fuji Trust & Banking Co., Ltd.
Opens for Businessbusiness in October 1999, allowing that company’s

In April 1999, The Fuji Trust & Banking Co., Ltd.

Cyber Bank. This is the first time a Japanese bankand The Dai-Ichi Kangyo Trust & Banking Co., Ltd.

has used Internet banking to enable customers’

merged to form Dai-Ichi Kangyo Fuji Trust &multi-purpose savings accounts to be utilized for

Banking. The transfer of asset management andsettlements of Internet securities transactions.

Internet securities transactions to be settled via Fuji

administration operations, including pension trust,custody and stock transfer agency services, from The
Yasuda Trust & Banking Co., Ltd. was completed in
October.

Introduction of IBOS-based Services
IBOS (Interactive Business Operating System) isa group made up of 15 European, American andJapanese banks. Fuji Bank is the sole Japaneseparticipant. Customers enjoy access to local
financial services through the branches of all
IBOS members.

Japan Internet Payment Promotion Association
EstablishedFuji Kabuto Custody & Proxy Acquires ISO9001
Certification

This association was formed in response to moves

Our Fuji Kabuto Custody & Proxy department

toward the international standardization of settle-

provides standing proxy services, including custodyments via the Internet. Its purpose is to develop a

services and the exercise of option rights, for foreigncommon basic infrastructure for settlements ofinstitutional investors and financial institutions that

Internet transactions in Japan, carry out surveys

invest in Japanese securities. Fuji is one of theand research, and collect information about Internet

leading custodians in Japan in terms of assets under

settlements. Fuji Bank acts as one of the representa-

management and the number of transactions han-tive companies for the organization.

dled. In September 1999, we acquired certification
under the ISO9001 international quality standard.
This achievement reflects our continuing commitment to provide the best possible customer services.

33

Asset Management Group/Processing Services and Information technology GroupWe added several new products, including limited-

Monex Version Services Launched by Fuji
Cyber Bank

Asset Management Group/Processing Services and Information technology Group

Asset Management Group/
Processing Services andInformation Technology Group

Japan IC Card Promotion Association (tentativename) Established

Full-scale Introduction of J-Debit System

Progress in IT has encouraged a global trend toward

1999, and the system’s clearing center, which pro-the use of IC card technology for cash cards, credit

vides centralized management of settlement data,cards and other applications. IC cards are also being

became operational in March 2000. The systemused increasingly in the public sector and in various

covers cards issued by almost all of the 617 financial

industries, notably the transportation sector. The

institutions that belong to the Japan Debit Card

association was established to develop uniform

Promotion Association and makes it possible to use

specifications for schemes based on the use of

the approximately 300 million cash cards issued by

IC cards.

these financial institutions at 100,000 locations

The J-Debit card service was launched in January

throughout Japan.

“em-town” Financial Portal Business Announced
Together with DKB, IBJ, and other financial institutions and corporations, we announced the development of a collaborative Internet business schemethat transcends traditional business formats. The
joint initiative will be developed under the “emtown” brand and the aim is to offer new lifestyle
options for the Internet age.

34

Corporate
Information
CONTENTS
36 The Senior Management and Senior Overseers
36 Organization Chart
38 Overseas Offices
38
39
40

The Americas
Asia and Oceania
Europe and The Middle East

42 Domestic Offices
44 Corporate Citizen

35

The Senior Management
and Senior Overseers
Chairman of the Board

Managing Directors

Toru HASHIMOTO

Fumito ISHIZAKA
Minoru ITOSAKA

President & Chief
Executive Officer

Yoshiro YAMAMOTO

Organization Chart

GeneralMeeting of
Shareholders

Board ofDirectors

President& CEO

SeniorOverseers

Executive
Committee

Michio UENO

Directors
Office of Senior Overseers

Deputy Presidents

Kazumi YANAGIHARA
Yoshiaki SUGITA

Tosaku HARADA

Hajime SAKUMA

Toshiyuki OGURA

Saburo NISHIURA

Credit Assessment and Audit DivisionInspection Division
Electronic Data Processing Supervision

Kazuo KASUGAKAWA
Senior Managing Director
Member of the Board of Directors

Masaaki SATO

Internal Audit Division

Sumio UESUGIMasayoshi KANAJI

Chief Risk Officer (CRO)

Akio TAKEUCHI
Kenji MIYAMOTOManaging Directors
Members of the Board of Directors

Risk Assessment Division

Shunsaku ICHIKAWA

Credit Risk Management Division

Yutaka KOMATSU

Legal Division

Isao HIRAIDE

Kazuhiko YOSHIMOTO

Atsushi TAKANO

Yukihiko CHAYAMA

Terunobu MAEDA

Masayoshi EJIRI

Hiroaki SHINODA

Kanji OGAWA

Teruhiko IKEDA

Yoneo SAKAI

Seiji SATOMURA

Mithuru MACHIDA

Compliance
Compliance for Trading and Investment Banking

Chief Financial Officer (CFO)
Consolidation Planning Division
Research

Corporate Planning Division

Yukio OBARA

Social and Cultural Relations

Kenji WATANABE

Finance and Accounting Division
Accounting
Investor Relations

Subsidiaries and Affiliates Division

Senior Overseers

Soichi HIRABAYASHI

Customer Services Division

Takeie UKITA

Public Relations Division

Kouichi SAKATSUME

Human Resources Division
Premises and General Affairs Division

Yuji OSHIMA

Systems and Operations Administration Division

Toshiaki HASEGAWA

Executive Secretariat
Regional Headquarters for Kansai
Credit Administration Division I(as of July 1, 2000)

Credit Administration Division II
Credit Administration Division for Kansai
Corporate Credit Division36

(as of May 31, 2000)

Consumer and Commercial Banking
Commercial Finance Group

Consumer and Private
Banking Group

Commercial Finance Business Division
Personal Banking Branches

Business Support & Coordination
Business Development Support
Business Development for High-Growth & Emerging Market
Business Development for IT Industry

Business Finance Center
Fuyo General Lease Co., Ltd.
Fujigin Factors, Ltd.
Japan Mortgage Co., Ltd.

Full Banking Branches

BranchAdministration

Product Development & Marketing Division
Credit Division I
Credit Division II

Housing Loan Business Promotion Center
Private Banking Division
The Fujigin Credit, Ltd.
Product Development & Marketing Division
Sales Channel Management Division

Credit for Kansai

Credit Division III
Credit for New Business

Global Corporate and Investment Banking
Global Business Planning DivisionCorporate Finance Group

Investment Banking Group

Corporate Banking Divisions I-III, V, VI
Osaka Corporate Banking Division
Shinjuku Shin-Toshin Corporate Banking Division
Kabutocho Branch

Corporate Advisory Division
Structured Finance Division
Project Finance Division
Real Estate Finance Division
Fuji Securities Co., Ltd.

Global Credit Division I

Global Credit Division II

International Banking Group

Fujigin Capital Company
Fuji Corporate Advisory Co., Ltd.
Fuji Securities Inc.
Fuji Futures Inc.
Fuji International FinanceFuji Bank (Schweiz) AG

Trading GroupInternational Business Division
Overseas Subsidiaries
Overseas Branches
Corporate Banking Division (U.S.A.) Heller Financial, Inc.

Capital Markets Trading Division
Derivative Products Division
Credit Risk Trading

International Division
Credit Division for the Americas
International Credit Division Credit Division for Europe,
Africa & the Middle East

International Treasury
Division
Fuji Capital Markets Corp.
Treasury Division

Trading Business Planning

Public and Financial Institutions Group
Institutions Business Division

Municipal Divisions (HO, Osaka)

Institutions Marketing Division

The Yasuda Trust and Banking Co., Ltd.
Asset Management Group
Asset Management Division
Trust Business Planning Division

The Dai-Ichi Kangyo Fuji Trust & Banking Co., Ltd.
Fuji Investment Management Co., Ltd.
Fuji-Lord Abbett International Ltd.

Processing Services and Information Technology Group[Processing Services]
Multimedia Business DivisionInternet Business Planning

Trade Services Division[Information Technology]
Fuji Research Institute Corporation
Fujigin Software Service, Ltd.

Settlement & Clearing Services
Division
Fuji Kabuto Custody & Proxy

IT Promotion Division
Systems Operations Division

Processing Services Business Planning Division37

IT Planning Division
Information Technology Risk
ControlOverseas Offices(★ = Consolidated Subsidiaries)(as of June 2000)

The Americas

Fuji Securities Inc.★

Subsidiaries(Securities trading and dealing)

Fuji America Holdings, Inc.★
Branches, Agencies andRepresentative Offices
Chicago Branch
225 West Wacker Drive, Suite 2000,
Chicago, Illinois 60606, U.S.A.
Phone: 1-312-621-0500
Fax: 1-312-621-0305(Holding company)

500 West Monroe Street,
Chicago, Illinois 60661, U.S.A.
Phone: 1-312-441-7533
Fax: 1-312-441-7499(Commercial finance)(Commercial banking and trust business)

500 West Monroe Street,
Chicago, Illinois 60661, U.S.A.
Phone: 1-312-441-7000
Fax: 1-312-441-7499
31 offices in U.S.A.

Roywest House, West Bayroad,
P.O.Box 707, Grand Cayman,
British West Indies

Houston Agency

Fuji Bank International, Inc.★

One Houston Center, Suite 4100,
1221 McKinney Street,
Houston, Texas 77010, U.S.A.
Phone: 1-713-759-1800
Fax: 1-713-759-0048(Offshore banking)Los Angeles Agency

Fuji Capital Markets Corporation★

333 South Hope Street, 39th Floor,
Los Angeles, California 90071, U.S.A.
Phone: 1-213-680-9855
Fax: 1-213-253-4198
Telex: 230673336

New York BranchHeller Financial, Inc.★

The Fuji Bank and Trust Company★
Two World Trade Center,
79th-81st Floors,
New York, New York 10048-0042, U.S.A.
Phone: 1-212-898-2400
Fax: 1-212-321-9649
Telex: 425777

Grand Cayman Branch

2 World Financial Center
South Tower 26th Floor, New York,New York 10281, U.S.A.
Phone: 1-212-417-2400
Fax: 1-212-786-3347

333 South Hope Street, 39th Floor,
Los Angeles, California 90071, U.S.A.
Phone: 1-213-680-9855
Fax: 1-213-253-4198

Heller International Group, Inc.★
(Commercial finance)(Same address as above)
18 countries

Heller Financial (Mexico), S.A. de CV★
Monte Elbruz No.124-8 Piso,
Polanco, Mexico D.F. 11000
Phone: 52-5-728-0900
Fax: 52-5-728-0905(Swaps and derivatives services)

Two World Trade Center, 80th Floor,
New York, New York 10048-0042, U.S.A.
Phone: 1-212-898-2822
Fax: 1-212-321-9415
Telex: 425777

Fuji Futures Inc.★

Spring Capital Corporation(Investment company)

c/o Two World Trade Center, 79th Floor,
New York, New York 10048-0042, U.S.A.
Phone: 1-212-898-2064
Fax: 1-212-898-2399

Two World Trade Center,
79th-82nd Floors,
New York, New York 10048-0042, U.S.A.
Phone: 1-212-898-2000
Fax: 1-212-321-9407
Telex: 420626, 232440(Futures commission merchant)

Spring Capital Holdings, Inc.

311 South Wacker Drive, Suite 2000,
Chicago, Illinois 60606-6620, U.S.A.
Phone: 1-312-294-8800
Fax: 1-312-294-8721(Holding company)

Colombia Representative Office(Holding company)

Carrera 7 No.71-52, Torre B Piso 9,
Santafe de Bogota, D.C., Colombia

Two World Trade Center, 82nd Floor,
New York, New York 10048-0042, U.S.A.
Phone: 1-212-898-2563
Fax: 1-212-898-2770

São Paulo Representative Office
Avenida Brigadeiro Luiz Antonio,
2020-10° andar, 01318-911,
São Paulo, Brazil
Phone: 55-11-289-1812
Fax: 55-11-287-7867

Fuji JGB Investment Holdings, Inc.★

Fuji JGB Investment L.L.C.★
(Investment company)(Same address as above)

Two World Trade Center, 82nd Floor,
New York, New York 10048-0042, U.S.A.
Phone: 1-212-898-2563
Fax: 1-212-898-2770

Affiliates
Heller-Sud Servicios Financieros S.A.
(Commercial finance)

Maipu 311 Piso 1°, 1006 Buenos Aires,
Argentina
Phone: 54-11-4394-0070
Fax: 54-11-4394-0064

Heller Net-Sud(Commercial finance)

38

Augustinas 640, Piso 14 Santiago, Chile
Phone: 56-2-661-4700
Fax: 56-2-661-4794

Asia and Oceania
Branches and Representative Offices
Bangkok International Banking Facility
6th Floor, Q. House Convent Building,
38 Convent Road, Silom, Bangrak,
Bangkok 10500, Thailand
Phone: 66-2-632-1900
Fax: 66-2-632-1919
Telex: 84433 FUJIBKB

Dalian Branch
14F, Dalian Senmao Building,
147 Zhongshan Lu, Dalian,
Liaoning Province,
The People’s Republic of China
Phone: 86-411-3608348
Fax: 86-411-3608328
Telex: 86247 FJBKD CN

Hanoi Branch
Suite 404-407, 63 LTT Building,
63 Ly Thai To Street, Hanoi,
Socialist Republic of Vietnam
Phone: 84-4-826-6553
Fax: 84-4-826-6665
Telex: 411368 FJBKHAN VT

Hong Kong Branch
26th Floor, Gloucester Tower,
The Landmark, 11 Pedder Street,
Central, Hong Kong
Phone: 852-2826-5710
Fax: 852-2810-5126
Telex: 74604 FUJBK HXLabuan Branch
Kuala Lumpur Marketing Office30th Floor, UBN Tower,
No.10, Jalan P. Ramlee,
50250 Kuala Lumpur, Malaysia
Phone: 60-3-201-5020
Fax: 60-3-201-5030
Telex: MA 30920 FUJLAKLabuan Office

Manila BranchTaipei Branch

26th Floor, Citibank Tower, Valero Street
corner Villar Street, Salcedo Village,
Makati City, Metro Manila, Philippines
Phone: 63-2-848-0001
Fax: 63-2-815-3770
Telex: 45224

12th Floor, Hung Kuo Building,
167 Tun Hua North Road, Taipei,
105 Taiwan
Phone: 886-2-25455466
Fax: 886-2-25460559
Telex: 26087 FUJITPI

Mumbai Branch

Beijing Representative Office

Maker Chambers III, 1st Floor,
Jamnalal Bajaj Road, Nariman Point,
Mumbai, 400021 India
Phone: 91-22-288-6638
Fax: 91-22-288-6640
Telex: 81030 FUJI

Room No.802, CITIC Building,
19 Jianguo Men Wai Dajie, Beijing,
The People’s Republic of China
Phone: 86-10-65004694
Fax: 86-10-65002161
Telex: 22906 FJBBJ CN

Seoul Branch

Guangzhou Representative Office

15th Floor, Hana Building, 101-1, 1-Ka,
Ulji-Ro, Chung-ku, Seoul, Republic of
Korea
Phone: 82-2-311-2000
Fax: 82-2-754-8177
Telex: K 27216

Room No.2659, Dongfang Hotel,
1 Liu Hua Lu, Guangzhou,
Guangdong Province,
The People’s Republic of China
Phone: 86-20-86669277
Fax: 86-20-86663814
Telex: 44596 FJBGZCN

Shanghai Branch
7F, Shanghai Senmao International Building,
101 Yin Cheng East Road, Pudong New
Area, Shanghai,
The People’s Republic of China
Phone: 86-21-68411000
Fax: 86-21-68412000
Telex: 337168 FJBSH

Kuala Lumpur Representative Office30th Floor, UBN Tower,
No.10, Jalan P. Ramlee,
50250 Kuala Lumpur, Malaysia
Phone: 60-3-230-7950
Fax: 60-3-230-7951
Telex: MA 32351 FUJIKL

Shenzhen Branch

Nanjing Representative Office

21st Floor, Shenzhen International Financial
Building, Jian She Lu, Shenzhen,
Guangdong Province,
The People’s Republic of China
Phone: 86-755-2221918
Fax: 86-755-2225390
Telex: 420304 FJBSZ CN

Room No.801, Nanjing Grand Hotel,
208 Guangzhou Road, Nanjing,
Jiangsu Province
The People’s Republic of China
Phone: 86-25-3329379
Fax: 86-25-3319355

Singapore Branch
1 Raffles Place, #20-00, OUB Centre,
Singapore 048616
Phone: 65-534-3500
Fax: 65-532-7310
Telex: RS 24610

Level 10 (A) Main Office Tower Financial
Park Labuan, Jalan Merdeka, 87000 Federal
Territory of Labuan, Malaysia
Phone: 60-87-41-7766
Fax: 60-87-41-9766
Telex: MA85062FUJLAB
39

Tianjin Representative Office
Room 2202, Tianjin International Building,75, Nanjing Road, Tianjin,
The People’s Republic of China
Phone: 86-22-23305448
Fax: 86-22-23305489

Subsidiaries
Bangkok Fuji Holding Co., Ltd.★
(Consulting)175, 18th Floor, Sathorn City Tower,
South Sathorn, Bangkok 10500, Thailand

P.T. Bank Fuji International Indonesia★
(Commercial banking)Plaza BII Menara 2, 23rd & 24th Floors,
Jalan M.H. Thamrin No. 51,
Jakarta 10350, Indonesia
Phone: 62-21-3925222
Fax: 62-21-3926354
Telex: 69142

Heller Asia Capital (Singapore) Limited★
(Factoring)

6 Shenton Way, #20-08, DBS Building,Tower 2, Singapore 068809
Phone: 65-226-3822
Fax: 65-222-3198
Telex: 23339

Heller Financial Services Limited★
(Factoring)

Level 23, 207 Kent Street,
Sydney, N.S.W. 2000, Australia
Phone: 61-2-9372-2388
Fax: 61-2-9267-6032
Telex: 27500

Fuji Capital Markets (HK) Limited★
(Swaps and derivatives services)2502, Gloucester Tower, The Landmark,11 Pedder Street, Central, Hong Kong
Phone: 852-2537-3815
Fax: 852-2826-4891

The Fuji Futures (Singapore) Pte., Limited★
(Operations in financial futures markets)

Six Battery Road, #13-16,
Singapore 049909
Phone: 65-2213633
Fax: 65-2273038

Fuji International Finance (Australia) Limited★
(Corporate and merchant banking)Level 28, AON Tower, Maritime Trade
Towers, 201 Kent Street,
Sydney, N.S.W. 2000, Australia
Phone: 61-2-9251-2322
Fax: 61-2-9235-1750
Telex: 27307

Fuji International Finance(Singapore), Limited★
(Investment banking)1 Raffles Place, #26-02, OUB Centre,
Singapore 048616
Phone: 65-439-7600
Fax: 65-536-7364
Telex: RS24610

Affiliates
East Asia Heller Limited(Factoring)Suite 901-03, Central Plaza,
18 Harbour Road, Wanchai, Hong Kong
Phone: 852-2-8272336
Fax: 852-2-8272632
Telex: 74142

Heller Factoring (M) Sdn. Bhd.
(Factoring)Suite 08.04, Level 8, Menara Lion 165 Jalan,
Kuala Lumpur, Malaysia Ampang, 50450
Phone: 60-3-262-6827
Fax: 60-3-262-6652

P.T. Jaya Fuji Leasing Pratama(Leasing)

9th Floor, Jaya Building,Jalan M.H. Thamrin 12,
Jakarta 10350, Indonesia
Phone: 62-21-331750
Fax: 62-21-325430
Telex: 61683

Thai Farmers Heller Factoring Co., Ltd.
(Factoring)

Phatra Insurance Building, 1st Floor,
252 Ratchadapisek Road, Huaykwang,
Bangkok 10310, Thailand
Phone: 66-2-276-2030
Fax: 66-2-275-5165

40

Europe and The Middle East
Branches and Representative Offices
London BranchRiver Plate House, 7-11 Finsbury Circus,
London EC2M 7DH, U.K.
Phone: 44-20-7588-2211
Fax: 44-20-7588-1400
Telex: 886352

Paris Branch
26 Avenue des Champs-Elysées,
75008 Paris, France
Phone: 33-1-4413-6000
Fax: 33-1-4413-6060
Telex: 641779

Bahrain Representative OfficeManama Center, Part 4,
Government Road, P.O. Box 26899,
Manama, Bahrain
Phone: 973-224158
Fax: 973-224818
Telex: 9415 FUJIBK BN

Tehran Representative Office
3rd Floor, No. 1, 14th Street,
Khaled Eslamboli Avenue,
Tehran, IranPhone: 98-21-8726593
Fax: 98-21-8723449
Telex: 215132

Subsidiaries

NMB Heller N.V.

Affiliates(Factoring)

Fuji Bank (Luxembourg) S.A.★

Factofrance Heller, S.A.

(Commercial and investment banking)(Factoring)

Centre Financier, 29 Avenue
de la Porte-Neuve, L-2227,
Luxembourg
Phone: 352-474681
Fax: 352-474688
Telex: 3213 (FUJI LU)

Tour Facto, Cedex 88,
92988 Paris, France
Phone: 33-1-46-35-7000
Fax: 33-1-46-35-6900
Telex: 200134

Fuji Bank Nederland N.V.★

(Asset management)(Commercial and investment banking)River Plate House, 7-11 Finsbury Circus,
London EC2M 7HJ, U.K.
Phone: 44-20-7864-9300
Fax: 44-20-7782-9165
Telex: 265633“Riverstaete” Building Amsteldijk 166,
1079 LH, Amsterdam,
The Netherlands
Phone: 31-20-3018000
Fax: 31-20-6610201
Telex: 10395 FUJI NL

Fuji-Lord Abbett International, Limited

Handlowy-Heller S.A.
(Factoring)

Fuji Bank (Schweiz) AG★
(Investment and commercial banking)Paradeplatz/Tiefenhöfe 6,8022 Zürich, Switzerland
Phone: 41-1-211-3313
Fax: 41-1-211-6629
Telex: 812138 FUJ CH

Fuji Capital Markets (UK) Limited★
(Swaps and derivatives services)River Plate House, 7-11 Finsbury Circus,
London EC2M 7DH, U.K.
Phone: 44-20-7972-9900
Fax: 44-20-7972-9901

Goleszowska str. 6,
01-249 Warsaw, Poland
Phone: 48-22-877-0200
Fax: 48-22-877-0197

Heller Bank A.G.
(Factoring)

Postfach 2420, 55014 Mainz,
F.R. Germany
Phone: 49-6131-980-200
Fax: 49-6131-980-262
Telex: 4187638

Heller Factoring Española, S.A.
(Factoring)

Fuji International Finance PLC★
(Investment banking)River Plate House, 7-11 Finsbury Circus,
London EC2M 7NT, U.K.
Phone: 44-20-7256-8888
Fax: 44-20-7588-2033
Telex: 884275

Maria de Molina, 54-2°,
28006 Madrid, Spain
Phone: 34-91-590-3675
Fax: 34-91-590-3685
Telex: 50093

Heller Factoring Portuguesa, S.A.
(Factoring)

Fuji Leasing (UK) Limited★
(Leasing)

River Plate House, 7-11 Finsbury Circus,
London EC2M 7DH, U.K.
Phone: 44-20-7826-3219
Fax: 44-20-7588-1400
Telex: 886352

Edificio Castil, Rua Castilho, 39-14th Floor,
1200, Lisbon, Portugal
Phone: 351-1-381-5750
Fax: 351-1-381-5786
Telex: 18531

41

Runnenburg 30, 3981 AZ Bunnik,
The Netherlands
Phone: 31-30-65-93-193
Fax: 31-30-65-93-493
Telex: 47678

Nordisk Factoring A/S(Factoring)Teknikerkyen 21, DK-2830,
Virum, Denmark
Phone: 45-45-98-5000
Fax: 45-45-98-5151

OB Heller A.S.
(Factoring)

Kristanova 3 130 00 Prague 3,
Czech Republic
Phone: 420-2-627-37-01
Fax: 420-2-627-41-43

NMB-Heller Ltd.
(Factoring)

Enterprise House, Bancroft Road,
Reigate RH2 7RT, U.K.
Phone: 44-1737-84-1200
Fax: 44-1737-84-1350

Domestic Offices
Fuji Bank Group(as of May 31, 2000)

The Fujigin Credit, Ltd.

Fuyo General Lease Co., Ltd.

Fuji RIC Media Create, Ltd.

Established: November 1974
Capitalization: ¥1,200 million
Percentage of Ownership: 100%

Established: May 1969
Capitalization: ¥4,800 million
Percentage of Ownership: 8%

Established: June 1991
Capitalization: ¥50 million
Percentage of Ownership: 100%

The Fujigin Marketing Service, Ltd.

Fuyo Auto Lease Co., Ltd.

F·D·P Co., Ltd.

Established: March 1988
Capitalization: ¥10 million
Percentage of Ownership: 100%

Established: January 1987
Capitalization: ¥240 million
Percentage of Ownership: 75%

Established: August 1989
Capitalization: ¥50 million
Percentage of Ownership: 100%

Fuji Securities Co., Ltd.

Fujigin Factors, Ltd.

Fuji RIC System Development, Ltd.

Established: October 1994
Capitalization: ¥40,000 million
Percentage of Ownership: 100%

Established: April 1978
Capitalization: ¥1,006 million
Percentage of Ownership: 51.38%

Established: May 1990
Capitalization: ¥100 million
Percentage of Ownership: 100%

Fuji International Business Service Co., Ltd.

The J.M.C. Credit, Ltd.

The Fudosan Appraisal Service, Ltd.

Established: April 1993
Capitalization: ¥20 million
Percentage of Ownership: 100%

Established: December 1987
Capitalization: ¥200 million
Percentage of Ownership: 5%

Established: March 1982
Capitalization: ¥20 million
Percentage of Ownership: 5%

Fuji Career Bureau, Ltd.

Fujigin Capital Company

FAS Co., Ltd.

Established: May 1983
Capitalization: ¥70 million
Percentage of Ownership: 100%

Established: July 1983
Capitalization: ¥450 million
Percentage of Ownership: 10%

Established: February 1994
Capitalization: ¥400 million
Percentage of Ownership: 50%

Fujigin Kousei Service, Ltd.

Fuji Investment Management Co., Ltd.

Japan Mortgage Co., Ltd.

Established: March 1988
Capitalization: ¥10 million
Percentage of Ownership: 100%

Established: September 1993
Capitalization: ¥2,050 million
Percentage of Ownership: 56.49%

Established: June 1973
Capitalization: ¥1,400 million
Percentage of Ownership: 24.83%

Fuji Total Service, Ltd.

Fujigin Software Service, Ltd.

Daito Securities Co., Ltd.

Established: March 1996
Capitalization: ¥20 million
Percentage of Ownership: 100%

Established: August 1982
Capitalization: ¥50 million
Percentage of Ownership: 47.75%

Established: November 1927
Capitalization: ¥3,051 million
Percentage of Ownership: 22%

Fuji Business Experts, Ltd.

Fujigin Operation Service, Ltd.

Established: June 1974
Capitalization: ¥70 million
Percentage of Ownership: 100%

Established: June 1985
Capitalization: ¥20 million
Percentage of Ownership: 50%

The Fuji Sogo Kanri Co., Ltd.

Fuji Corporate Advisory, Co., Ltd.

Established: December 1994
Capitalization: ¥300 million
Percentage of Ownership: 100%

Established: December 1999
Capitalization: ¥300 million
Percentage of Ownership: 100%

Fuji Research Institute Corporation
Established: October 1988
Capitalization: ¥1,600 million
Percentage of Ownership: 21.25%

42

The Yasuda Trust and Banking Co., Ltd.

Anshin Total Finance Corporation

Established: May 1925
Capitalization: ¥337,231 million
Percentage of Ownership: 56.39%

Established: April 1989
Capitalization: ¥300 million
Percentage of Ownership: 100%

Yasuda Business Create Co., Ltd.

YTB Leasing Company, Ltd.

Established: August 1985
Capitalization: ¥30 million
Percentage of Ownership: 100%

Established: October 1983
Capitalization: ¥1,000 million
Percentage of Ownership: 84.6%

Tokyo Information Center Co., Ltd.

The Dai-Ichi Kangyo Fuji Trust & Banking Co., Ltd.

Established: June 1989
Capitalization: ¥100 million
Percentage of Ownership: 100%

Established: April 1999
Capitalization: ¥100,000 million
Percentage of Ownership: 50%

YTB Properties Co., Ltd.
Established: September 1989
Capitalization: ¥2,200 million
Percentage of Ownership: 100%

The Yasuda Computer Service Co., Ltd.
Established: December 1972
Capitalization: ¥100 million
Percentage of Ownership: 70%

DOMESTIC BRANCH NETWORK(as of March 31, 2000)

Urban Research Institute Corporation
Established: December 1987
Capitalization: ¥200 million
Percentage of Ownership: 100%YTB Credit Guaranty Co., Ltd.
Established: February 1978
Capitalization: ¥100 million
Percentage of Ownership: 100%

Branches: 277
Sub-branches: 30
ATMs: 3,182

The Yasuda Union Credit Co., Ltd.
Established: April 1983
Capitalization: ¥100 million
Percentage of Ownership: 95%

YTB Homes Co., Ltd.
Established: July 1986
Capitalization: ¥300 million
Percentage of Ownership: 100%
Tokyo

Osaka

Kobe
Yokohama

43

Corporate
CitizenIn the words of our founder Zenjiro Yasuda, “We

In 1993, the Bank, in response to requests fromserve the communities in which we do business.”

employees who wish to engage in volunteer activi-

We have a long and proud history of community

ties, provided support through a special program toservice and the spirit of Mr. Yasuda’s philosophy

allow them to take special leave of absence.

lives on stronger than ever today. Based on theOn the local level, our domestic offices contribute

theme of “Nurturing the Next Generation of

to community service activities by taking part in

Dynamic Young Citizens,” we are engaged in a wide

fund-raising drives, by donating second-hand books

range of activities, including education, traffic

and by promoting the recycling of used items.

safety, cultural support, social welfare, and support

Abroad, employees of our New York branch andfor volunteer activities.

the Fuji Bank and Trust Company have been very
active in volunteer activities under the Community

Traffic Safety Campaign

Reinvestment Act (CRA). This has helped the

Fiscal 1999 marked the thirty-sixth year of the

Bank earn high ratings from federal and state regu-

annual Traffic Safety Campaign, which provides

lators for eight consecutive years since 1992.

automatic accident insurance for all first graders in

Also, monetary contributions from employees

Japan who are involved in traffic accidents on theirboth in Japan and abroad were donated to aid vic-

way to or from school. Along with Fuji Bank, thetims of earthquakes in Turkey and Taiwan.

campaign is co-sponsored by other affiliated companies such as Yasuda Fire and Marine Insurance,

Academic Support

Yasuda Mutual Life Insurance and Yasuda TrustIn 1991, we established the Fuji Bank Internationaland Banking. The program has provided insurance

Foundation as part of our commemoration of thecoverage for over 44 million children since its start.

Bank’s 110th anniversary. In fiscal 1999, theFoundation provided a total of 20 students studying

Fuji Memorial Foundation and Other
Welfare Activities

at Japanese universities with a monthly stipend of

The Fuji Memorial Foundation was established inanother scheme under which students attending

1980 to commemorate the Bank’s 100th anniver-universities in other Asian countries are provided

sary. Its contributions to the community include

with an annual scholarship.

¥120,000. From 1995, the Foundation inaugurated

grants for social welfare, funds for translating books

In other academic activities, we have instituted

into Braille for visually impaired university stu-

lecture series at Cambridge University, Chicago

dents, and donations of electrically powered wheel-

University and the China Institute of Financing inchairs - a total of 470 to date. The Foundation also

Beijing.

uses contributions from employees as funding for a
special project involving donations of speciallyequipped buses to facilities for the physically handicapped. Over the years, it has donated a total of 165
such vehicles.

44

Financial
Section
CONTENTS
46 RISK MANAGEMENT
56 FISCAL 1999 IN REVIEW (CONSOLIDATED / NON-CONSOLIDATED)
69 CONSOLIDATED FIVE-YEAR SUMMARY
70 CONSOLIDATED FINANCIAL STATEMENTS
70
72
73
74
75
91

Balance Sheets
Statements of Income
Statements of Earned Surplus
Statements of Cash Flows
Notes to Consolidated Financial Statements
Report of Independent Certified Public Accountants on the Financial Statements

92 CONSOLIDATED DATA FILE
98 NON-CONSOLIDATED FINANCIAL STATEMENTS
98
100
101
101
109

Balance Sheets
Statements of Income
Statements of Appropriation of Retained Earnings (Deficit)
Notes to Non-Consolidated Financial Statements
Report of Independent Certified Public Accountants on the Financial Statements

110 NON-CONSOLIDATED DATA FILE

45

Risk Management
The global business environment affecting financial institutions is changing dramatically. As a result, the risks inherent in banking operations are
rapidly gaining in complexity and diversity. More than ever, bank management must be able to identify, analyze and manage many kinds of risk,
ranging from credit risk and market risk to operational risk, computerrelated risk and legal risk. In the belief that the creation of a robust andwatertight risk management system is an absolute necessity for any worldclass bank, our operational and administrative structures are designed tomake risk management one of our key managerial priorities.
The Board of Directors
Executive Committee

Credit Guideline Committee

ALM-Market Risk
Management Committee

the Credit Guideline Committee with the specific task of controlling thecredit risk portfolio for each banking unit.
To strengthen portfolio credit risk management further, the Executive
Committee on Credit Risk Management sets guidelines for credit risk
ceilings and portfolio management policies for each banking unit. The
Credit Guideline Committee formulates concrete measures based on theportfolio management policies set by the Executive Committee, andmonitors their execution.
The Committee sets guidelines for dealing with credit transactions on
the basis of the portfolio management policies set forth by the Executive
Committee. It also fulfils a concrete credit risk portfolio management
function for each banking unit by monitoring the management situationand initiating flexible reviews of the guidelines as necessary.

1. Credit Assessment and Monitoring of Individual Transactions

IT Strategy Committee

Of the various kinds of risk that banks face, credit risk is associated witha wide range of operations, from lending and market transactions in
products such as derivatives to settlements. We are striving to ascertain
all possible sources of risk and devise appropriate means of dealing withthem. The most important issue in the area of credit risk management isensuring the soundness of loan assets, which account for the lion’s shareof credit risk. We take a dual approach to this issue. On the one hand, we
assess and monitor each individual loan transaction; on the other, wemanage the entire loan asset portfolio on an all-inclusive basis.
To provide overall control of credit risk management, we established the
Executive Committee on Risk Management and charged it with the specifictask of controlling the entire portfolio risk. The Committee sets guidelines
for dealing with credit transactions on the basis of the portfolio management policies set forth by management meetings. It also serves a credit risk
portfolio management function by monitoring the management situationand initiating flexible reviews of the guidelines as necessary.
The Credit Risk Management Division and the International Credit
Division are responsible, respectively, for domestic and overseas credit matters.
They specialize in devising means of examining and managing individual loantransactions, and in planning and developing methods for analyzing the risk
inherent in the overall loan portfolio. They are also in charge of the in-housecredit rating system and self-assessment of bank assets.
To strengthen our credit risk management of our portfolio, we established

Each proposed loan transaction is carefully assessed for risk andprofitability by the branch in charge. If the amount involved exceeds thebranch manager’s authority, the appropriate credit division at Head
Office carries out the assessment. At this stage, active use is made of the
in-house credit rating system*, which provides the standards needed forassessing the risk and profitability of each loan application as well as thetools for monitoring the transaction after its execution.
Within the head office credit divisions, specialist departments are set
up to deal with large and medium-sized enterprises by type of industry
and operational scale, and with individuals and smaller businesses byregion. To cope with the rapid structural changes taking place in industry, we have also established an evaluation system based on a pool of
specialist know-how that embraces sectoral knowledge and the ability toevaluate new technologies. For example, we set up the Credit for New
Business Department to specialize in advanced sectors where technological innovation is progressing rapidly. The credit divisions thus provide
branches with appropriate advice in a timely manner according to thecharacteristics of the customers and markets involved.
Overseas, credit divisions have been established in New York andLondon with responsibility for America and Europe, respectively, while
credit personnel have been assigned to Hong Kong who work with head
office credit divisions to deal with the Asian region. These staffers engage
in information-gathering activities in connection with the laws, commercial customs, and political and economic conditions in their respective
jurisdictions, and use this information as the basis for carefully focused
credit assessment and management activities in each region.
We formulated the “Credit Operation Fundamentals and Policy” toclarify the rules that should be observed in credit operations, such as laws
and regulations, and lay down the basic principles involved when making
credit decisions. “Credit Operation Fundamentals and Policy” serves todefine our lending policy by stipulating the standard approaches andmechanisms on which our lending procedures are based. In this way, we
have endeavored to lay down common rules to be observed by all bankstaff in lending operations as a means of promoting the formation of auniversal lending stance and assuring the soundness of our loan assets.
We have also established departments at home and abroad to carry out
industrial surveys designed to gather and analyze information on sectoral
trends, and new products and technologies, and make the results available for use in credit decisions.
Nurturing human resources to support this credit evaluation system is
extremely important. In addition to making efforts to train specialists inassessing loans, the management team is paying particular attention to
implementing practical training programs according to the type of specialization involved.

* In-house rating system
Our in-house rating system uses 17 grades and in principle is applied to all loan assets other thanhousing loans. First, the marketing or credit division in charge prepares rating studies on the basisof a manual. Then, the Credit Assessment and Audit Division, which is completely independent of
our operational and credit divisions, confirms the validity of the results from a neutral, objective
viewpoint. Reviews are conducted at least once every twelve months, but they may also be carriedout at any time on a case-by-case basis when there are changes in the customer’s position.
This system is used in analyzing and quantifying the overall credit risk associated with ourloan portfolio. In fact, we make use of our credit ratings at all phases of the lending process,from pricing for individual cases and evaluations of an industry’s performance through to therisk-assessment process.
The system provides infrastructural support for the examination and management of
individual transactions, as well as the basis for managing the loan portfolio and credit risk. It
has been revised and upgraded repeatedly, and now provides an objective indication of thecredit risk associated with our loan assets. We have also endeavored to ensure ample
consistency between it and the ratings of rating agencies, asset self-assessment systems and theasset classifications used by the financial supervisory authorities.

(meets semiannually+when necessary)decides portfolio management
policies and their concrete measures(meets monthly)
decides ALM hedging andinterest rate policies, andmonitors liquidity risk

(meets quarterly+when necessary)decides development of IT,
follow up

Various Executive Committees:● Executive Committee on Market Risk Management● Executive Committee on Risk Management● Executive Committee on Credit Risk Management ● Executive Committee on IT Strategy

We have set up special executive committees to establish and monitor
the enforcement of risk management policies for each type of risk
mentioned above, and various risk committees follow up on thesepolicies. Semiannually meetings of the Executive Committee on Risk
Management are held to discuss comprehensive risk management policies,
and monthly Executive Committee meetings provide the necessary
scrutiny and supervision. The Chief Risk Officer (CRO) specializes in
consolidating bank-wide control and supervision of credit risk, market
risk, operational risk, computer-related risk and other kinds of risk. The
CRO is completely independent of profit-based divisions and fulfils a
crucial function by monitoring and checking risks throughout the Bank.

I. Credit Risk

46

(2) Breakdown of Loan Portfolio by Region
Through the country risk/exposure system, upper limits are set for eachcountry for all credit transactions, including loans. This upper limit isreviewed at least once every six months to reflect conditions in theworld economy and political and economic conditions in each country.
As of the end of March 2000, loans to Asian countries (excluding
Japan) were as shown below in Table 1. Affiliates of Japanese companies accounted for just under 40% of loans to the private sector.
Almost all of the loans to non-Japanese borrowers are to the largest businessgroups in each country.

2. Portfolio Management
While assessing and managing individual projects and proposals areimportant, we also go to great lengths to ensure the overall soundness of
our loan assets by analyzing and managing the loan portfolio, which isthe aggregate of all individual loans.
Our Executive Committee and Credit Guideline Committee set
guidelines for credit risk ceilings and portfolio management policies foreach banking unit, then regularly monitor and analyze the entire loan
portfolio by business sector, region, in-house rating and other criteria.
This enables us to manage the credit risk held both by each banking unit
and the Bank as a whole by keeping it within levels that are appropriate.
(1) Breakdown of Loan Portfolio by Business Sector
Through the Executive Committee and Credit Guideline Committee, wemonitor the makeup of our portfolio constantly to ensure that there is nobias toward any specific industrial sector and to avoid any adversechanges in portfolio structure.

[Chart 2] Breakdown of Loan Portfolio (by region)(March 2000)
2%

Japan

2%
4%

USA

5%

Asia (excl. Japan)
87%[Chart 1] Breakdown of Loan Portfolio (by business sector)

EuropeOther(March 2000)
( %)
13.4

B Agriculture, forestry and fisheries
0.3 (B)

21.8

A
K

3.9
0.8 (D)
3.4CE

0.8 (J)

A Manufacturing

C Construction
D Electricity, gas, heat supplies, water supplies
E Transportation and communications
F Wholesaling, retailing, restaurants

F

I

14.3

G Finance and insurance

Note: Non-consolidated basis.

H Real estate

17.4

H

I Services

G
14.2

9.7

J Municipal corporations
K Individuals and others

Note: Domestic offices (excluding loans booked in the Japan offshore market)[Table 1] Loans to Asian Countries

South Korea ....................................................
Indonesia ........................................................
Thailand ..........................................................
Hong Kong ......................................................
Singapore ........................................................
Malaysia ..........................................................
China ...............................................................
Philippines ......................................................
India ................................................................
Taiwan ............................................................
Vietnam ...........................................................
Other ...............................................................
Total .........................................................

BalancePublic sector/
Financial institution

$ 943
621
763
2,304
457
545
738
230
265
179
6
3
$7,080

$ 536
185
52
39
—
294
112
97
107
1
—
0
$1,427

Millions of U.S. dollars
Project
Private sector
finance
Total
Japanese
Non-Japanese (% of total)

$ —
79
198
163
—
—
33
8
12
0
1
2
$500

$ 407
356
532
2,100
457
251
593
124
144
178
5
0
$5,152

$

37
89
374
650
340
41
339
71
9
48
5
—
$2,006

$ 370
267
158
1,450
117
209
253
53
135
129
0
0
$3,146(90.9%)(75.0 )
(29.8 )
(69.0 )
(25.6 )
(83.6 )
(42.8 )
(43.1 )
(93.4 )
(73.0 )
(0.3 )(100.0 )(61.1%)

Note: Non-consolidated basis.

3. Measuring Credit Risk
Our approach to measuring credit risk is multifaceted, focusing on
integrating the management of credit, market and other risk, andpromoting the efficiency of portfolio management and the allocation ofmanagement resources. We now quantify the credit risk associated with
virtually all credit transactions, including derivative and other offbalance sheet transactions, on a daily basis. After measuring and analyzing credit risk according to such criteria as transaction type, rating,region and business sector, we submit reports on our findings. Our
management then uses this information in decisions relating tointegrated risk management. The information is also applied in marketing strategies to ensure appropriate loan spreads, and in management
information systems to compute profits following adjustment for risk
according to bank division.

47

Risk Management

other numerous activities. Our basic approach to market transactions is
to maximize the profitability of our market divisions while controllingrisk in an appropriate manner.
To achieve this, we have established a powerful organization for
managing market risks, including the asset liability management (ALM)
of interest rate risk on yen deposits and loans. This gives us an overall
control of market risk and thus ensures greater stability in earnings.
Chart 3 outlines our market risk management organization.

II . Market Risk Management and Derivative Transactions
1. Market Risk Management StructureMarket risk means the risk of losses that the Bank could incur becauseof decrease in the value of assets (including off-balance sheet assets)
caused by fluctuations in market risk factors such as interest rates,
foreign exchange rates and bond and stock prices.
As a global dealer, we engage in market-making for interbank dealers
and customers, and developing derivatives and other new products, and[Chart 3]

The Board of Directors

President and CEO●Daily e-mail reports to management
on status of risk and profits

5

Chief Risk Officer(CRO)

Executive Committee on
Risk Management

Executive Committee●Determination of net business profit plan

Executive Committee on
Market Risk Management●Determination of overall policy on various risks●Determination of market risk limits

3 4

ALM - Market Risk
Management Committee(Monthly)●ALM hedging policies●Follow up of status of market risk-taking

1

Middle Office(Risk Management Sections)

Front Office(Market Sections)

Risk Assessment Division
Risk management sections of overseas
branches and subsidiaries
Risk management divisions of affiliated companies

2

Checks andBalances

Divisions of Trading Group
Asset Management DivisionMarket sections of overseas branches
and affiliated companies

Settlement and Clearing Services Division
Section in charge of operations
for overseas offices
Back Office(Operations)

The following five features characterize our market risk management organization.
q Establishment of an independent risk management division.
w Sophisticated methodologies for measuring and managing market risk.
e Risk management policy determined by the Board.

r Risk limits determined by the Board.
t Regular reporting to the Board and senior management.

48

① Establishment of an independent risk management division.

⑤ Regular reporting to the Board and senior management.

In 1994, we became the first Japanese bank to set up a risk control unit
to identify, assess and control our overall market risk on a consolidated
basis. The Risk Assessment Division (formerly the Market Risk
Assessment Division) is responsible for overseas branches andsubsidiaries as well as domestic activities. To guarantee the neutrality of
the Division’s decisions, it is completely independent of front officesections involved in transactions, dealing and other business activities.
Overseas branches and subsidiaries have also established their own
market risk management sections that are independent of trading units
involved in market activities. In each office, we have an effective systemof checks and balances among the front office (market activities), themiddle office (risk management) and the back office (operations), which
are separated from each other.
② Sophisticated methodologies for measuring andmanaging market risk.
Virtually all of our business units engaged in market activities manage
profits and losses on a mark-to-market basis, since it is indispensable toobtain a clear picture of unrealized, as well as realized, profit and loss.
We use the Value at Risk (VaR) methodology to manage market risk.
When VaR is not enough to manage and control risk on its own, we
supplement it with additional market risk information and tools. Amongother things, we set limits on risk sensitivities such as Basis Point Value(BPV), carry out stress tests and back tests, and set stop-loss limits
according to actual transactions in each division. For further information, refer to “2. Overall Market Risk Activities.”
The Risk Assessment Division is constantly absorbing and applying
advanced financial theory and expertise. It conducts research into
upgrading management techniques, and devotes a great deal of energy to
streamlining systems and infrastructure.
③ Risk management policy determined by the Board.
To clarify our standards for setting risk-taking limits, organizational
structures, lines of authority, procedures and techniques for evaluating
and controlling risk, we formulate our own “Risk Management Policy
for Market-related Risks.” This is reviewed every year in principle andapproved by the Board of Directors. The policy is also kept fully consistent with the risk management principles issued by banking regulators
in Japan and the Bank of International Settlements (BIS).
④ Risk limits determined by the Board.
We believe that our exposure to potential losses arising from all kinds ofrisk, including market, credit and operational risk, should be kept within
levels that can be covered by our own capital. Based on this principle
and taking account of our business strategies, we allot a portion of ourcapital for coverage for market risk and set the maximum risk limit for
aggregate market risk (VaR). We then allocate this limit to each divisionaccording to the market outlook, our business strategies and othercriteria, setting risk limits for each division. The President and CEO andthe Board of Directors determine these risk limits and their allocation
every six months.

[Daily] E-mailEach day, a report summarizing VaR, trading activities, profits andlosses and market risk by division is sent by e-mail to the Chairman, thePresident and CEO and other members of the Board of Directors andsenior management.
[Monthly] ALM-Market Risk Management Committee
The presiding Deputy President convenes the ALM-Market Risk
Management Committee every month. The Committee reviews andreports trading activities, profits and losses, and market risk by division,as well as liquidity risk to close our position and liquidity risk infunding, and makes decisions on ALM hedging strategy.
The above procedures provide senior management with an accurate
and timely grasp of our market risk exposure, creating an organizational
structure that allows appropriate management decisions to be taken
quickly.
We have also adopted the following measures to deal with ALM
activities, particularly in respect of interest rate risk on yen deposits andloans:• The Treasury Division deals exclusively with ALM hedging
operations.
• To upgrade ALM procedures in managerial accounting, we haveabolished the Head Office-Branch rate and use individual settlement
rates based on market interest rates for each product and maturity
instead.
• The ALM-Market Risk Management Committee determines its
ALM hedging strategy each month. The Treasury Division follows
this strategy in its actual ALM hedging operations, reporting its
results to the Committee the following month.

Value at Risk (VaR)
VaR is one of several methods used to measure market risk. It is definedas the maximum possible loss that could be incurred on our portfolio asa result of adverse market movements within a certain period anddegree of probability. The actual amount of the VaR may vary according
to the confidence interval and the length of the holding periods, as wellas the models used for measuring the volatility of market risk factors.
Basis Point Value (BPV)
BPV shows how much net present value on transactions varies wheninterest rates change by 1 basis point (0.01%).

49

Risk Management(3) Yen Interest Rate Risk
Table 2 provides a more detailed analysis of yen interest rate risk, thelargest component of our aggregate market risk. It shows yen interest
rate risk in terms of interest rate sensitivity by period (grid sensitivity).

2. Overall Market Risk Activities(1) Level of Market Risk
Chart 4 shows the trend in market risk (VaR-amount) in fiscal 1999.
Market risk amount (VaR) covers almost all market risk on a consolidated basis, including most of our overseas branches and subsidiaries,
and also the trading sections of The Yasuda Trust and Banking Co., Ltd.
However, it excludes market risk taken for strategic purposes, such as
price fluctuation risk of stocks held for long-term appreciation.
[Chart 4] Aggregate Market Risk

[Table 2] Yen Interest Rate (BPV) Sensitivity by PeriodVaR( ¥ billion)
40

30
25
20
15
10

5

6

7

8

9

10

11

12

2000/1

2

3

The standards used for calculating VaR in Chart 4 are as follows:• Confidence interval: one-tailed 99.0% (two-tailed 98.0%)• Holding period: one day• Historical observation period: six months• Discretion to recognize empirical correlations across broad risk categories• Measurement models: variance/covariance method(delta plus method)

April 2000 – September 2000 .......
October 2000 – March 2001 .........

(2) Component of Market Risk
Chart 5 shows the impact each risk element has on overall market risk
by giving a breakdown of our market risk (VaR) by risk category as ofMarch 31, 2000. For example, “Interest rate-related risk (Japanese yen)
= 74.2%” indicates that fluctuations in Japanese yen interest rates
affect 74.2% of total market risk.

excluding equity investment securities held for long-term appreciation(as of March 31, 2000)

G

14.4
1.7 (E)

2.9

74.2

F

0.8 (D)
0.9 (C)( %)B
A¥(0.4)

Yen

Billions of yen
U.S. dollar

Euro¥ 26.9¥(13.2)¥(0.5)¥ 0.1¥(0.0)¥(0.0)As the above simulation shows, we have enough capital and profitability
to absorb the potential negative impact of changes in interest rates on
accrued term profits and losses.
The combined use of risk sensitivities such as BPV and simulations ofprofits and losses, as well as the VaR methodology, enables us to obtainversatile evaluations of our market risk.

[Chart 5] Market Risk (by risk category)
0.2 (H)¥(1.0)[Table 3] Earnings at Risk Simulation(Difference between estimated accrued term profits and losses undercurrent conditions and in the case where interest rate rise by 0.5%
above the level we predict.)

We have been using our own internal models for calculating VaR basedon the above standards for many years. In this way, we are able toconfirm on an ongoing basis that our own capital and profitability areenough to cover the amount of market risk (VaR).

4.9¥(0.2)(4) Simulation of Profits and Losses
To measure in greater detail the impact of interest rate fluctuations on
our term profits and losses, we conduct regular simulations of profits
and losses in interest rate portfolios (the accrued banking account) invarious key currencies. Table 3 shows how our profits and losses would
be affected should interest rates rise by 0.5% above the level we predict.
(March 31, 2000 figures)

5
99/4

Interest Rate (BPV) Sensitivity .....

Billions of yen
1-5
5 years
years
or moreBasis Point Value (BPV) is an index of interest rate sensitivity thatshows how much unrealized gains increase when interest rates rise by 1
basis point (0.01%). The negative numbers in Table 2 show that unrealized gains decline when interest rates increase during the periods inquestion. We can therefore judge the impact of interest rate movements
on unrealized gains more accurately even when short- and long-term
interest rates behave differently.

Max.: ¥37.1 billionMin.:¥ 8.5 billion
Average: ¥20.7 billion

35

March 31, 2000

1 yearor less(5) Liquidity Risk to Close Positions
When a particular bank accounts for an unusually large share of total
market transactions in a particular instrument, it may take several days
before it is able to offset the position risk. Price fluctuations may cause it
to incur far greater losses than VaR. This sort of risk is known as“liquidity risk to close positions.” In our case, we calculate the volume
that we can trade in each instrument at a reasonable price on a single
day and compute the number of days it takes to close our positions basedon that daily volume. We then calculate potential loss for the market
risk (VaR) for the number of days to close our positions, and manage
this kind of risk accordingly. This puts us in the position where we canoffset our positions at reasonable prices in a very short time if necessary.

A Interest rate-related risk
(Japanese yen)
B Interest rate-related risk
(U.S. dollar)
C Interest rate-related risk
(Euro)D Interest rate-related risk(others)
E Foreign exchange-related risk
F Equity-related risk
G Option-related risk
H Commodity-related risk

It is clear that while risk in other categories is dispersed in a wellbalanced fashion, most of our market risk consists of yen interest raterisk, an area in which we are fully capable of exploiting our strengths asa Japanese bank.
50

At the end of March 2000, liquidity risk to close our positions stoodat ¥26.1 billion. In terms of the size of the market and the time to close
our positions, our capital and profitability are enough to cover the
maximum possible loss on liquidity risk to close our positions. (This isbased on a conservative measurement that does not consider the correlation among market risk factors.)
The President and CEO sets the limit on total liquidity risk to close
our positions every six months. Reports on the status of liquidity risk toclose our positions are submitted to the ALM-Market Risk Management
Committee every month.

4. Risk-taking in Trading Transactions
The following sections provide more detailed information on transactions that are subject to mark-to-market evaluations, which include bothforeign exchange transactions and other trading transactions.
(1) VaR[Chart 6] VaR in Trading Transactions( ¥ billion)
30

VaR
Daily profits and losses for trading
Quarterly average of VaR

2520(6) Liquidity Risk in Funding
We have adopted strict procedures for managing liquidity risk infunding, which is the risk of potential inability to raise funds necessary
to execute transactions. Based on analyses of the gap between assets andliabilities, and funding resources, our President and CEO sets position
limits on the gap every six months, and reports are submitted to the
ALM-Market Risk Management Committee every month.

15
10
5
0
-5
-10
-15
-20
-25

3. Methodologies for Evaluating Market-related Transactions-30 99/4(1) Trading Transactions
When they are available, we use current market prices (fair market
values) to estimate fair values in trading transactions. When current
market prices are not available, we use discounted present value or otherevaluation techniques. Our evaluations and evaluation methods incorporate significant assumptions that we regard as adequate, and using
different assumptions may result in different evaluations.

5

6

7

8

9

10

11

12

Max.: ¥2.5 billion
Min.:¥0.8 billion
Average: ¥1.6 billion
2000/12
3(2) Back Testing
To evaluate the accuracy of the models we use for measuring risk, we
carry out “back testing” to compare actual profits and losses withpredicted VaR.
[Chart 7] Back Testing (FY 1999)
3.0
Absolute Value of Profit and Loss
Evaluated by Market Price (¥ billion)(2) Non-trading Transactions
For management accounting purposes, we also estimate fair values in
non-trading transactions in the same methods with trading transactions
described above.
(3) Evaluation Adjustments in Management Accounting
Although they are not reflected in financial accounts, we monitor closeout costs (costs arising from the differences in market rates between mid
price and bid or offer price) and credit costs (possible losses computedby quantitative methods) and use these costs in evaluation adjustments
for management accounting purposes.

2.0

1.0

0
0

1.0

2.0

3.0

VaR ( ¥ billion)[Table 4] Close-out and Credit Cost
March 31, 2000

Trading Transactions......................................
Non-trading Transactions .........................
Total.............................................................

Dots above the diagonal line would show the number of days on which
profits and losses exceeded predicted VaR. Chart 7 shows that in fiscal
1999, this happened on no business day. In other words, profits andlosses exceeded predicted VaR in 0.0% of all cases while the probability
predicted by our models is 2% (100%-98%). We believe this confirmsthat our models are sufficiently accurate in measuring our market risk
exposure.

Billions of yen
Close-out cost Credit cost

¥ 0.3
4.6
¥ 4.9

¥ 1.8
3.2
¥ 4.9

(3) Stress Testing
Since markets are inherently unstable, price fluctuations sometimes far
exceed normal expectations. We therefore draw up worst-case scenariosthat analyze the maximum potential losses that might occur. This
procedure is known as “stress testing,” and the scenarios we prepare arecalled “stress scenarios.” Reports on the results of such tests are submitted to the Board and reflected in business decisions.

51

Risk Management

Our ability to achieve the stable profit distribution demonstrated byChart 8 results from our solid client transaction base and our welldiversified trading portfolio. Risk-adjusted returns are thus a key
indication to obtain an overall grasp of risk and returns, and to makeeffective decisions on distributing risk limits among our divisions.
In these ways, we use the VaR method and other complementary
methods as well in order to evaluate and manage overall market risk andrisk of each trading product minutely. This has enabled us to confirm that
we have enough capital and profitability to cover the amount of market risk.

We use two scenarios for stress testing. The first is a scenario which
postulates a tougher confidence interval than usual. (The confidence
interval is 99.9% and the correlations among market risk factors are
retained.) The second postulates the most extreme price movement
based on historical price fluctuation data over a period of ten years. (Thecorrelations among market risk factors are destroyed.)[Table 5] Stress TestingBillions of yen
Maximum potential loss
VaR (confidence interval 99.0%) ....................
Stress Scenario (confidence interval 99.9%)...
Stress Scenario (worst case) ............................

5. Derivative Transactions

¥ 2.3
3.1
66.9

(1) Status and Purpose of Derivative Transactions
Derivative transactions are not recorded in the balance sheet because
there are no fund transfers involving the principal. We use derivativetransactions, particularly transactions in swaps, futures, options andothers, to satisfy the risk-hedging needs of our customers, to hedge
against interest rate risk or exchange rate risk in our ALM positions,and to pursue profits in market transactions.

(4) Risk-adjusted Returns
Bank management must obtain an accurate grasp of the risk it is possible
to take, allocate assets properly and ensure appropriate profit levels. It istherefore extremely important to monitor whether the balance between
risk and profits is appropriate and whether the possibility of potential
losses is kept within sound levels.

(2) Derivative Transactions and Market Risk
“2. Overall Market Risk Activities” provides further information onmarket risk, liquidity risk to close our positions and liquidity risk infunding, to which derivative transactions may be exposed.

[Chart 8] Risk-adjusted Returns on Trading Transactions(including foreign exchange transactions)
35(3) Derivative Transactions and Credit Risk
Tables 6 and 7 show the contract amounts, notional amounts and credit
risk equivalents for derivative transactions.
“Credit risk equivalent” in derivatives corresponds to the principal
amount of loan transactions. Our credit divisions control credit risk forindividual customers by setting and periodically reviewing transaction
limits according to their creditworthiness. They also set limits for eachtype of transaction.
The tables 8, 9 and 10 show quantitative data concerning credit risk
in derivative transactions. The data cover virtually all our nonconsolidated and consolidated derivative transactions.

25
20
15

Line A10
50Line B
-2.00
-1.80
-1.60
-1.40
-1.20
-1.00
-0.80
-0.60
-0.40
-0.20
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00

Frequency distribution

30

Revenue to VaR ratio (daily profits and losses/VaR)[Table 6] Credit Risk of Derivative Transactions(calculated into BIS capital adequacy ratio)

Chart 8 is a histogram that shows the proportion of profits/losses to ourmarket risk (VaR) (profits and losses / VaR = risk-adjusted returns).
Line A (normal distribution curve) represents risk-adjusted returns onan actual basis. Line B represents hypothetical risk-adjusted returns
gained if transactions were executed without interest rate or market
predictions.
We can draw the following conclusions from a comparison of Line A
and Line B.

March 31,Billions of yen
Notional amountCredit risk equivalent
2000
1999
2000
1999

Interest Rate Swaps. ¥312,086.4 ¥301,291.7
Currency Swaps.....
5,920.8
7,307.0
FX Forward ..........
13,865.7
13,374.0
Interest Rate Options(buying) ..............
3,576.2
3,464.4
Currency Options(buying) ..............
1,006.8
1,442.3
FXA ........................
—
2,287.9
FRA........................
33,280.9
34,482.2
Other Derivatives ..
14.0—
Effect of Netting
....
....
Arrangement ......
Total ................... ¥369,751.0 ¥363,649.9• The peak of the curve described by Line A (the mean), which represents our performance during the fiscal year ended March 2000, is
skewed more to the positive side than that of Line B. This confirmsthat we were able to make profits effectively on the whole.
• Line A’s distribution peak is sharper than that of Line B, showing thatfluctuations in daily profits/losses are very small. In other words, wewere able to make stable profits, while keeping conspicuous losses
down to a very low frequency.

52¥3,191.4
260.8
471.8

¥4,181.2
363.6
504.7

37.3

41.1

41.9
—
38.6
1.3

41.1
134.1
44.3
—

(2,736.0)¥1,307.3(3,742.6)¥1,567.7

Billions of yen
Credit Maximum
Credit Credit
risk potential
exposure cost
amountloss[Table 7] Credit Risk of Derivative Transactions(not calculated into BIS capital adequacy ratio)
Billions of yen
Notional amount
2000
1999

March 31,

Financial Futures Transactions .....................
Interest Rate Swaps.........................................
Currency Swaps...............................................
FX Forward ....................................................
Interest Rate Options (buying) .....................
Currency Options (buying) ...........................
Interest Rate Options (selling) ......................
Currency Options (selling) ............................
FRA, FXA........................................................
Others ..............................................................
Total.............................................................

¥ 42,215.0——
2,057.5
926.8
49.4
4,987.5
1,153.3—
56.8¥ 51,446.4

Consolidated Base:
Customers whose creditworthiness isgenerally equivalent to AAA/Aaa BBB/Baa rating from rating agencies... ¥1,113.1 ¥0.5
Customers whose creditworthiness isgenerally equivalent to BB/Ba ratingfrom rating agencies ..........................
91.0 0.3
Others ...................................................
112.0 1.5
Total .............................................. ¥1,316.0 ¥2.3

¥63,236.3——
2,009.9
1,111.5
98.3
4,584.3
1,389.9—
117.6¥72,547.9

Non-consolidated Base:Japan .....................................................
Asia ......................................................
USA ......................................................
Europe ..................................................
Others....................................................
Total ...............................................

80.7 0.2
44.1 1.0¥908.5 ¥1.5

1.6
2.2
¥5.1

1.8
3.2
¥6.5

¥416.3 ¥1.3
26.8 0.1
321.9 0.0
112.3 0.0
31.3 0.0¥908.5 ¥1.5

¥4.7
0.1
0.1
0.1
0.0
¥5.1

¥6.0
0.2
0.1
0.1
0.0
¥6.5

[Table 10] Breakdown by Industry
Billions of yen
Credit Maximum
Credit Credit
risk potential
exposure cost
amountloss

Non-consolidated Base:
Banking, Securities, Insurance ...........
Manufacturing .....................................
Wholesale .............................................
Transportation and Communications ...
Services ................................................
Construction .........................................
Real Estate ...........................................
Other Financial Institutions ...............
Others ...................................................
Total ...............................................

Billions of yen
Credit Maximum
Credit Credit
risk potential
exposure cost
amount
loss

¥1.5

2.0
7.3
¥12.0

Billions of yen
Credit Maximum
Credit Credit
risk potential
exposure cost
amountloss[Table 8] Breakdown by Creditworthiness

¥1.3

1.7
5.7
¥9.7

[Table 9] Breakdown by Region

The most important figure for grasping the levels of credit risk on ourderivative transactions is the total of the maximum potential loss
(Consolidated Basis), ¥12.0 billion, as shown in Table 8 “Breakdown by
Creditworthiness.” This figure is a statistical forecast and indicates thatthe probability of losses of approximately ¥12.0 billion following thebankruptcy of counterparties is once in one hundred years. It does not
represent a loss or unrealized loss affecting our financial position. In
other words, even if this worst case occurs, the impact on our management will be negligible in light of our net worth and profitability.
As these tables show, approximately 86% of “credit risk equivalent”
of our derivative transactions on a non-consolidated basis, and approximately 85% on a consolidated basis, were conducted with counterparties whose creditworthiness was the investment-grade ratings awarded
by independent ratings agencies.
Counterparties from developed countries such as Japan, United Statesand European nations account for the majority of derivative transactions by region. There were very few transactions with counterparties in
Asian countries or other regions.
By business sector, most of our transactions were with banks andother financial institutions that deal with derivative products as part oftheir regular business.
We have almost no derivative transactions that are considered highly
speculative.

¥783.7 ¥0.2

¥ 2.7

Notes: 1. Almost all of our subsidiaries and affiliates are covered on the Consolidated Base.
2. “Credit cost” is expected losses computed by quantitative methods.
3. “Credit risk amount” is potential losses computed by quantitative methods.
(unexpected losses reflected deviations from statistical expectations)
4. “Maximum potential loss” refers to the total of credit cost and credit risk amount,and is a statistical forecast of maximum losses in the worst case.

Note: These transactions are excluded from calculations of credit risk equivalents under BIS
international capital adequacy standards because the risks involved are considered extremely
low for the following reasons: Counterparties of these transactions have deposited margins
in the relevant exchange or the transactions themselves are very short-term.

Non-consolidated Base:
Customers whose creditworthiness isgenerally equivalent to AAA/Aaa BBB/Baa rating from rating agencies...
Customers whose creditworthiness isgenerally equivalent to BB/Ba ratingfrom rating agencies ..........................
Others ...................................................
Total ..............................................

¥2.3

53

¥612.1 ¥0.2
67.4 0.2
52.1 0.2
34.3 0.0
13.6 0.2
5.2 0.1
10.2 0.0
71.3 0.2
42.3 0.3¥908.5 ¥1.5

¥0.5
0.6
0.9
0.2
0.5
0.1
0.3
1.8
0.2
¥5.1

¥0.6
0.8
1.1
0.2
0.6
0.2
0.4
2.1
0.5
¥6.5

Risk Management(2) Computer-related Risk
We define computer-related risk as the risk that the Bank may be exposed
to tangible or intangible losses arising from system defects such as
failures, faults, or incompleteness in computer operations, or illegal orunauthorized use of computer systems.
We have adopted a dual approach to dealing with computer-relatedrisks, which are caused by various natural disasters and faults. On the
one hand, we have established measures to forestall system problems.
On the other, we have adopted operational procedures to deal withpossible system malfunctions.
On the preventive side, we have worked for many years to create an
extremely reliable system. Among other things, we have installed our
computer systems in specially-designed buildings that incorporate thevery latest in earthquake-proofing technology, created a dual-centerorganization that boasts hardware and software systems for foolproof
backup, and a state-of-the-art network that features an automatic
rerouting function to avoid circuit faults. We have also established aseparate department that is independent of the systems development
divisions to check and supervise system configurations and security
when new systems are being designed and installed. In this way, everything is done to eliminate possible problems.
A full range of contingency plans lays down procedures to befollowed and emergency measures to be adopted in the case of system
malfunctions. We also hold regular drills to provide practice throughdealing with simulated emergencies.

III. Other Risks
Our organizational structure enlists the full participation of top management to obtain a clear grasp of the nature and size of not just credit andmarket risk but also other risk, and everything is done to ensure that itruns at maximum efficiency.
In addition to clarifying divisional lines of authority to deal with
operational risk, systems risk and other important risk factors, wemonitor all kinds of risk across the board. We have also prepared
comprehensive disaster recovery plans and manuals to deal with various
emergency scenarios, such as disasters that affect wide areas.
(1) Operational Risk
Operational risk refers to the danger that losses may result from
accidents arising in back-office operations as a result of inappropriate
procedures performed by personnel.
The System and Operations Administration Division is responsible
for operational risk and works independently of the Bank’s various
business groups. The Division has established rules and procedures to befollowed by domestic branches, overseas offices and market divisions
when dealing with each type of operational activity. It also designates
responsible persons in each division to check periodically that theprescribed procedures are being properly observed.
We have separated the front, middle and back offices in our market
divisions and instituted other measures to provide a system of mutual
checks and balances within the organization. We constantly incorporate
the latest technical innovations into our computer center’s data processing functions as part of our efforts to build an efficient operational
processing system that reduces human error to a minimum.
The Inspection Division carries out annual inspections to check thestatus of operational and office management activities at each branch,and submits reports on its findings directly to top management. The
Inspection Division is thus in a position to prevent problematic
incidents, evaluate the efficiency of our system for managing operationalrisk and, where necessary, put forward proposals for improvement to
top management.

(3) Legal Risk
We define legal risk as the risk that the Bank may incur tangible orintangible losses as a result of infringements of laws and regulations.
We established the Legal Division to specialize in the management oflegal risk, an issue to which we attach the greatest importance. The
Legal Division serves in an advisory capacity and is responsible foranalyzing the legal risk involved in the Bank’s domestic and international business operations, and for devising means to deal with it. It isalso working to create a healthy operational system in which bank
employees from all divisions, not just the Legal Division, can go about
their work in full knowledge of the legal risks involved. To this end andto ensure that legal requirements are observed, it holds seminars on legal
matters, and has prepared and distributed a compliance manual to all
employees.
(4) Settlement Risk
“Settlement risk” refers to the risk that the Bank may incur losses
because settlements are not executed according to schedule. It arises not
only from timing differences in the payments and receipts involved insettling foreign exchange transactions, but also from various transactions within the same domestic market. Settlement risk encompasses
various kinds of risk including credit risk, liquidity risk and operationalrisk, and we are working to shorten the settlement timing difference anduse netting to reduce the amounts involved in settlements.

54

Compliance2. Compliance Activities
Each year, we draw up a practical compliance program to streamline our compliance structure and organize activities to promotecompliance.
We also compile detailed compliance manuals covering the principles for corporate conduct, code of conduct for employees and the key
laws, ordinances and in-house rules that have to be observed. These
compliance manuals are distributed to all employees, who are expected
to become very familiar with their contents.
We have established a dual checking system to promote the strict
observance of rules on compliance by each head office division andeach business office. The compliance officers in the respective organizations conduct initial checks, and the Inspection Division and theInternal Audit Division conduct secondary checks.
In order to ensure that the basic framework of our compliancestructure is properly understood, we provide various levels of education in compliance, ranging from training for general staff to moreadvanced studies for compliance officers.
Compliance remains the cornerstone of the banking business. To
ensure the continued trust of our customers, we are committed toreviewing our compliance structure on an ongoing basis with a view tomaking improvements that will maintain and enhance its effectiveness.

Banking is vitally important to the public interest, and banks play amajor social role in contributing to economic development at home
and abroad through their transactions with customers and otheractivities.
To ensure that we never lose sight of this, and in order to fulfil our
responsibilities and earn the unwavering trust of society, we havepositioned compliance as one of the most important issues facing
management. Our basic policy is to comply strictly with all laws,
ordinances, rules and regulations, and carry out our business activities
with honesty and integrity and in conformity with social standards.
For this reason, we have given our Legal Division responsibility forcompliance throughout the Bank, and made the ComplianceDepartment the focal point for streamlining our compliance structure
and carrying out activities to promote compliance. Further details on
our thoroughgoing efforts in this area are given below.

1. Compliance Structure
Our compliance structure is made up of the Board of Directors, theExecutive Committee on Compliance Management, complianceofficers and the Legal Division. The Executive Committee on
Compliance Management was established to discuss issues of key
importance to compliance within the Bank and meets on a regularbasis under the chairmanship of the President and CEO. The Board of
Directors then approves matters that have been deliberated upon at
the committee.
Compliance officers are deployed at all head office divisions and allbusiness offices at home and abroad. In addition to ensuring fullcompliance within their respective organizational sectors, theseofficers act as advisors to other bank employees, and as a liaison with
the Compliance Department. Because of the specialist nature of themarket securities business and the risks it involves, we have established a Compliance for Trading and Investment Banking Department.
This department is independent of the business divisions and falls
under the jurisdiction of the Legal Division, where its task is to ensure
strict compliance. We also retain the services of legal advisors andaccounting firms in Japan and overseas to provide us with maximum
specialist support.

Compliance Structure
The Board of Directors

Executive Committee on Compliance Management
Legal Division

Compliance Officer,
Head Office Divisions

55

Compliance Officer,
Domestic Business Offices

Compliance Officer,
Overseas Business Offices

Fuji Bank Group

Fiscal 1999 in Review (Consolidated)
Scope of Consolidation
Scope of Consolidation

Net Interest Income

Fiscal Year

1999

1998

Change(¥Billion)

Subsidiaries Included in the Consolidated Financial Statements .............
Affiliates Accounted for by the Equity Method of Accounting ...............

174
64

182
52

(8)
12

677

718

Years ended March 31

Operating Performance in Fiscal 1999
Earnings Performance

Net Fee & Commission
IncomeFiscal Year(¥Billion)
179
128
88

81

83

CONSOLIDATED

586
503

542

1996 1997 1998 1999 2000

The number of subsidiaries included in the consolidated financial statements of The Fuji Bank, Limited (“theBank”) for fiscal 1999 was 174, decreasing by 8 from the end of fiscal 1998. This was due to such factors as thechange of the consolidation method of The Dai-Ichi Kangyo Fuji Trust & Banking Co., Ltd. (“DKFTB,” inwhich the Bank currently maintains 50% ownership after the merger of The Fuji Trust and Banking Co., Ltd.
and The Dai-Ichi Kangyo Trust & Banking Co., Ltd. on October 1, 1999) to the equity method and liquidationsof certain overseas local subsidiaries in the course of reviewing the Bank’s overseas strategies. Some of the main
consolidated companies are The Yasuda Trust and Banking Co., Ltd. (“Yasuda Trust”), Fuji Securities Co.,
Ltd., The Fujigin Credit, Ltd. and Fuji America Holdings, Inc.
The number of companies accounted for by the equity method was 64, increasing by 12 from the end of
fiscal 1998. This was mainly a result of DKFTB becoming accounted for by the equity method. Other companies accounted for by the equity method include Japan Mortgage Co., Ltd. and Daito Securities Co., Ltd.

1996 1997 1998 1999 2000
Years ended March 31

Consolidated Gross Profits:
Net Interest Income................................................................................
Net Fiduciary Income.............................................................................
Net Fee & Commission Income .............................................................
Net Trading Income ...............................................................................
Net Other Operating Income .................................................................
Total ..................................................................................................
General & Administrative Expenses .........................................................
Credit Related Costs.....................................................................................
Net Gains/Losses Related to Stocks and Other Securities .......................
Equity in Earnings/Losses from Investments in Affiliates andNon-Consolidated Subsidiaries .................................................................
Net Other Gains/Losses ..............................................................................
Income before Income Taxes and Minority Interests................................
Income Tax Expenses (Benefits) - Current................................................
Income Tax Expenses (Benefits) - Deferred ..............................................
Minority Interests in Net Income ..............................................................
Net Income ...................................................................................................

1999

Billions of yen
1998¥586.3
38.7
179.7
39.9
84.8
929.6
556.5
492.2
453.1

¥ 503.2
—
128.8
38.1
150.9
821.2
494.5
921.6
(91.2)¥

12.4(63.4)
283.0
16.2
194.5
19.3
¥ 52.8(12.6)(49.5)(748.5)18.3(362.0)17.1¥(422.0)

25.1(13.8)
1,031.5
(2.0)
556.5
2.2
¥ 474.8

Change

83.0
38.7
50.9
1.8
(66.1)
108.4
61.9(429.4)544.4

Consolidation Difference
Consolidated
basis (A)Gross Profits:
Net Interest Income ....................................................................
Net Fiduciary Income .................................................................
Net Fee & Commission Income..................................................
Net Trading Income....................................................................
Net Other Operating Income......................................................
Total .......................................................................................
Total Assets ......................................................................................
of which, Loans ...........................................................................
of which, Securities.....................................................................

56

¥

586.3
38.7
179.7
39.9
84.8
¥ 929.6¥58,246.7
36,371.5
7,588.5

Billions of yen
Non-consolidated
basis (B)

¥

493.9
—
70.6
10.5
26.2
¥ 601.4¥47,009.4
31,267.6
6,427.7(A)–(B)

¥

92.4
38.7
109.0
29.4
58.5
¥ 328.2¥11,237.2
5,103.9
1,160.7

Change in Financial Results on a Consolidated Basis (FY99 vs. FY98),
Financial Results of Yasuda Trust for FY99 on a Consolidated Basis
Billions of yen
Change on a
Yasuda Trust
consolidated basis
for FY99<FY99 vs. FY98> <consolidated basis>(1) Contribution of Yasuda Trust
One of the main changes in this year’s consolidated profit and loss statements of Fuji Bank compared withlast year’s is that the profit and loss statements of Yasuda Trust have been included. Considering Yasuda
Trust’s scale of operations, a large portion of the difference between Fuji Bank’s consolidated figures andnon-consolidated figures (“consolidation difference”) can be accounted for by Yasuda Trust’s operating
performance. The following paragraphs explain the main factors of the consolidation difference other thanthose relating to Yasuda Trust. (Please refer to the chart above titled “Change in Financial Results on a
Consolidated Basis (FY99 vs. FY98), Financial Results of Yasuda Trust for FY99 on a Consolidated Basis”)(2) Consolidated Gross Profits
The Bank’s Consolidated Gross Profits increased by ¥108.4 billion from the previous year to ¥929.6 billion.
The breakdown of the consolidated gross profits is as follows.
Net Interest Income increased by ¥83.0 billion from the previous year to ¥586.3 billion. This was mainly aresult of the improvement in net interest margin in the domestic market, and the reduction of costs of hedging
against interest rate fluctuation risks. Net Fiduciary Income was ¥38.7 billion. Net Fee & Commission
Income increased by ¥50.9 billion from the previous year to ¥179.7 billion. This was a result of the steadyincrease in investment banking fees such as securitization fees and M&A fees, and the increase in settlementrelated fees such as foreign exchange commissions and custody fees. Net Trading Income increased by ¥1.8
billion from the previous year to ¥39.9 billion. Net Other Operating Income decreased from the previous yearby ¥66.1 billion to ¥84.8 billion. This was mainly a result of the large decrease in net gains related to bonds inthe domestic market reflecting the dull bond market, while gains on foreign exchange transactions increased.
(3) General & Administrative Expenses
General & Administrative Expenses increased by ¥61.9 billion to ¥556.5 billion. However, when excluding
the impact of the figures of Yasuda Trust and making comparisons on the same basis with that of the previous
year, expenses actually decreased by ¥12.4 billion due to further cost reducing efforts by the parent bank andother consolidated companies.
(4) Credit Related Costs
Credit Related Costs decreased by ¥429.4 billion from the previous year to ¥492.2 billion as a result of appropriate provisioning of reserves and writing-off of problem loans by the subsidiaries as well as the parent bankfrom the standpoint of maintaining a solid financial base.
(5) Net Gains/Losses Related to Stocks and Other Securities
Net Gains/Losses Related to Stocks and Other Securities increased by ¥544.4 billion from the previous yearto ¥453.1 billion. This was a result of the significant increase in the Sales Gains on Stocks and Other Securities
through a proactive sell-off of stocks under the stock portfolio reduction policy, in addition to the effect of the
improvement of the domestic stock market. This was also a result of the significant reduction in devaluation
losses of stocks and other securities, as the Bank incurred a large loss through voluntary devaluation in theprevious year to resolve the issue of unrealized losses and to enhance further the financial strength of the Bank.
As of March 31, 2000, net unrealized gains on listed and unlisted stocks totaled ¥666.5 billion.
(6) Income before Income Taxes and Minority Interests
Consequently, Income before Income Taxes and Minority Interests increased by ¥1,031.5 billion from theprevious year to ¥283.0 billion.
(7) Tax Expenses, Minority Interests, Net Income
Income Tax Expenses - Current were ¥16.2 billion, and Income Tax Expenses - Deferred were ¥194.5
billion. Minority Interests in Net Income were ¥19.3 billion. Overall, Net Income was ¥52.8 billion.

57

1996 1997 1998 1999 2000
Years ended March 31

Geographical Breakdownof Total Income FY1999(Based on the Location of Lending Offices)
Europe 2.9%

Asia and Oceania 6.6%
The Americas 15.6%

Japan 74.9%

CONSOLIDATED—
101.6¥ 88.2-748

25.1(13.8)¥1,031.5-498¥ 29.5
70.6
28.5
(0.1)
8.2
136.8
74.4
184.9
109.1

96

83.0
38.7
50.9
1.8
(66.1)
108.4
61.9(429.4)
544.4

283

¥

(¥Billion)-400

Consolidated Gross Profits:
Net Interest Income................................................................................
Net Fiduciary Income.............................................................................
Net Fee & Commission Income .............................................................
Net Trading Income ...............................................................................
Net Other Operating Income .................................................................
Total...................................................................................................
General & Administrative Expenses ..........................................................
Credit Related Costs.....................................................................................
Net Gains/Losses Related to Stocks and Other Securities ........................
Equity in Earnings/Losses from Investments in Affiliates andNon-Consolidated Subsidiaries .................................................................
Net Other Gains/Losses ..............................................................................
Income before Income Taxes and Minority Interests................................

Income (Loss) before
Income Taxes andMinority Interests

Fuji Bank Group

Fiscal 1999 in Review (Consolidated)
Analysis of Balance Sheet
Analysis of Balance Sheet

Deposits (including NCDs)
March 31,(¥Trillion)

Loans and Bills
Discounted(¥Trillion)
36.3

34.8

34.0

35.7

33.7

CONSOLIDATED

35.4

34.6

34.5

38.6

37.2

1996 1997 1998 1999 2000
March 31

2000

1996 1997 1998 1999 2000

ChangeTotal Assets*................................................................................................ ¥58,246.7 ¥57,260.4 ¥ 986.3
of which, Loans and Bills Discounted...................................................
36,371.5
34,815.8
1,555.7
Total Liabilities ............................................................................................
55,611.0
54,664.4
946.6
of which, Deposits ..................................................................................
29,989.6
29,278.2
711.4
of which, Negotiable Certificates of Deposit.........................................
5,473.5
5,368.0
105.5
Minority Interests ........................................................................................
388.1
408.1
(19.9)
Total Stockholders’ Equity..........................................................................
2,247.4
2,187.8
59.6*After deduction of Reserve for Possible Loan Losses and Reserve for Devaluation of Investment Securities
Total Assets increased by ¥986.3 billion from the previous year to ¥58,246.7 billion. This was mainly a resultof the increase in Loans and Bills Discounted of the parent bank by ¥1,474.3 billion, while the yen value of
foreign currency denominated assets decreased reflecting the appreciation of the yen. Loans and Bills
Discounted increased by ¥1,555.7 billion to ¥36,371.5 billion, whereas Non-Accrual, Past Due, andRestructured Loans decreased from the previous year by ¥187.5 billion to ¥1,589.1 billion. Consequently, theratio of non-accrual, past due, and restructured loans to total loans decreased by 0.73% to 4.37%.
Total Liabilities increased by ¥946.6 billion from the previous year to ¥55,611.0 billion. Deposits and
Negotiable Certificates of Deposit (NCDs) increased by ¥711.4 billion and ¥105.5 billion to ¥29,989.6 billionand ¥5,473.5 billion, respectively.
Minority Interests decreased by ¥19.9 billion from the previous year to ¥388.1 billion.
Total Stockholders’ Equity increased by ¥59.6 billion from the previous year to ¥2,247.4 billion. BIS
Capital Ratio (uniform international standard) was 11.00%, maintaining a sufficient level.
Status of Non-Accrual, Past Due, and Restructured Loans
March 31,

March 31Billions of yen
1999

2000

Billions of yen
1999

ChangeLoans to Bankrupt Borrowers..................................................................... ¥ 125.2¥ 236.4¥(111.1)
Non-Accrual Delinquent Loans..................................................................
910.7
995.0
(84.2)
Loans Past Due for 3 Months or More .......................................................
188.0
243.6
(55.6)
Restructured Loans......................................................................................
365.0
301.4
63.6
Total................................................................................................... ¥1,589.1¥1,776.6¥(187.5)
Ratio to Total Loans ....................................................................................
4.37%
5.10%
(0.73)%*A total of ¥1,514.3 billion is deducted from the above figures as a result of direct write-offs of amounts
estimated to be irrecoverable.
BIS Capital Ratio on a Consolidated Basis (according to the MOF guidelines which follow the BIS standards)
March 31,

Capital Ratio
(%)

2000

11.00

5.75

5.55

4.79

4.18

4.79

11.24
9.41

9.22

8.36

BIS Capital Ratio..........................................................................................
Tier I (A).....................................................................................................
Tier II (B) .....................................................................................................
Unrealized Gains on Securities, included under Tier II ......................
Land Revaluation Account, included under Tier II ............................
Subordinated Loans (Bonds) ................................................................
Deductions (C).............................................................................................
Intentional Holdings of Other Financial Institutions’Capital Raising Instruments ................................................................
Total Capital (A)+(B)-(C)..........................................................................
Risk-Adjusted Assets...................................................................................

1996 1997 1998 1999 2000
March 31

Capital Ratio

Tier I Ratio

58

Billions of yen
1999

Change11.00%
11.24%¥ 2,397.9 ¥ 2,370.6
2,364.4
2,262.9
—
—
99.3
101.8
1,973.9
1,885.7
14.0
4.3(0.24)%¥ 27.3
101.4
—
(2.4)
88.2
9.7

14.0
0.9
¥ 4,748.3 ¥ 4,629.2¥43,133.6 ¥41,167.6

13.0¥ 119.1¥1,965.9

The Fuji Bank, Limited

Fiscal 1999 in Review (Non-Consolidated)
In the following pages, the main factors for the financial results of Fuji Bank for fiscal year 1999 on a nonconsolidated basis, which account for a large portion of the financial results on a consolidated basis (64.7% of
Gross Profits and 80.7% of Total Assets), are explained.

Net Business Profits
and Net Income(¥Billion)
467

Overview

258

306

291

329

102

53
-392

-518

-429

■ The Bank’s Net Business Profits (before Provision of General Reserve for Possible Loan Losses) for Fiscal
1999 were ¥258.6 billion. While this was a decrease of ¥48.0 billion from the previous year, Core Net
Business Profits (=the amount after deduction of Net Gains Related to Bonds from Net Business Profits)were ¥251.7 billion, exceeding the initial forecast at the beginning of this fiscal year (¥240.0 billion).
■ Expenses Related to Portfolio Problems totaled ¥344.0 billion, as appropriate write-offs and provisioning ofreserves against problem loans were recorded from the standpoint of further strengthening the Bank’s
financial base.
■ Net Gains Related to Stocks and Other Securities were ¥338.0 billion, as stocks held by the Bank were soldoff under the stock portfolio reduction policy. Net Unrealized Gains on Stocks as of March 31, 2000 were¥548.2 billion, increasing by ¥364.2 billion from March 31, 1999.
■ Consequently, the Bank’s Income before Income Taxes was ¥226.9 billion, increasing by ¥891.2 billion fromthe previous year, and Net Income was ¥102.1 billion, increasing by ¥495.0 billion from the previous year.
Net Income largely exceeded the initially forecasted amount at the beginning of this fiscal year by ¥42.1
billion.
■ BIS Capital Ratio on a Non-Consolidated Basis (uniform international standard) was 11.86%, maintaining asufficient level.

1996 1997 1998 1999 2000
Years ended March 31

Net Business Profits(before Provision of General Reserve)
Net Income

Operating Performance of Fiscal 1999
Earnings Performance
1999

Billions of yen
1998

ChangeNet Interest Income (A) ..............................................................................
Net Fee & Commission Income (B)............................................................
Net Trading Income (C) ..............................................................................
Net Other Operating Income (D) ...............................................................
of which, Net Gains Related to Bonds (E)............................................
Gross Profits (A+B+C+D) (F)...............................................................
General & Administrative Expenses (G) ...................................................
Provision of General Reserve for Possible Loan Losses (H) .....................
Net Business Profits (Gyomu Juneki) (F-G-H) (I ) ...................................
Net Business Profits (before Provision of General Reserve) (F-G).....
Core Net Business Profits (F-G-E) ........................................................
Net Other Income/Expenses (J)..................................................................
Income before Income Taxes (I+J)............................................................
Income Tax Expenses (Benefits) - Current................................................
Income Tax Expenses (Benefits) - Deferred ..............................................
Net Income ...................................................................................................
Net Income per Share (yen) ........................................................................

¥493.9
70.6
10.5
26.2
6.9
601.4
342.7
(5.9)
264.5
258.6
251.7
(37.6)
226.9
0.2
124.5
¥102.1¥ 27.04¥505.4
60.7
17.9
82.0
79.6
666.2
359.5
113.9
192.7
306.6
227.0
(857.1)(664.3)0.3(271.7)¥(392.9)¥(130.54)¥ (11.5)
9.9(7.4)(55.7)(72.7)(64.8)(16.7)(119.8)71.7(48.0)
24.6
819.4
891.2
(0.0)
396.2
¥495.0¥157.58

59

NON-CONSOLIDATEDFiscal Year

The Fuji Bank, Limited

Fiscal 1999 in Review (Non-Consolidated)
Gross Profits
Breakdown of Gross Profits
Fiscal Year

1999

Billions of yen
1998

ChangeNet Interest Income .....................................................................................
Domestic ................................................................................................
International ...........................................................................................
Net Fee & Commission Income ..................................................................
Domestic ................................................................................................
International ...........................................................................................
Net Trading Income.....................................................................................
Domestic ................................................................................................
International ...........................................................................................
Net Other Operating Income ......................................................................
Domestic ................................................................................................
International ...........................................................................................
Gross Profits.................................................................................................
Domestic .................................................................................................
International ...........................................................................................

¥493.9
416.8
77.0
70.6
42.4
28.2
10.5
0.1
10.3
26.2
13.0
13.2
¥601.4472.4
128.9¥505.4
381.5
123.9
60.7
38.5
22.2
17.9
7.9
10.0
82.0
75.1
6.8
¥666.2503.2
163.0¥(11.5)35.3(46.8)
9.9
3.9
6.0
(7.4)
(7.7)
0.3
(55.7)(62.1)
6.4(64.8)(30.7)(34.0)Breakdown of Gross Profits(¥Billion)

493

505

26 10 70

82 17 60

504

601

662

82 18 65

37 64

100 66

1996 1997 1998 1999 2000
Years ended March 31

Net Interest Income
Net Fee & Commission Income
Net Trading Income
Net Other Operating Income

Net Interest Income(¥Billion)

601

662

NON-CONSOLIDATED

493

505

504

Gross Profits decreased by ¥64.8 billion from the previous year to ¥601.4 billion. This was a result of thedecrease in Domestic Gross Profits (Gross Profits from yen-denominated transactions at domestic offices) by¥30.7 billion (mainly due to the decrease in Net Gains Related to Bonds) and the decrease in International
Gross Profits (Gross Profits from foreign currency transactions at domestic offices and transactions at overseas
offices) by ¥34.0 billion.
(1) Net Interest Income
Net Interest Income decreased by ¥11.5 billion from the previous year to ¥493.9 billion.
Net Interest Income on Domestic Operations increased by ¥35.3 billion to ¥416.8 billion as a result of the
improvement in interest margin and the reduction of costs of hedging against interest fluctuation risks.
Net Interest Income on International Operations decreased by ¥46.8 billion to ¥77.0 billion due to two
factors. One is the reduction in the average balance of Loans and Bills Discounted by ¥2,637.1 billion in accordance with the significant reduction in assets from the standpoint of efficient asset allocation. The other is therecording of a one-time increase in dividend income in the previous year, in conjunction with the initial public
offering of an overseas subsidiary.
Analysis of Interest Income

Fiscal Year
1996 1997 1998 1999 2000
Years ended March 31

Yield
1998

ChangeBillions of yen
Average balance
1999
1998
Change3.61% 3.96%
2.44% 2.71%
1.54% 2.55%
2.38% 2.81%
0.76% 1.24%
1.23% 1.15%
1.68% 1.47%(0.35)%(0.26)%(1.00)%(0.42)%(0.48)%
0.07%
0.21%

¥37,776.5 ¥40,548.3 ¥(2,771.7)
29,581.9 31,994.4 (2,412.5)
6,299.8 6,186.2
113.6
36,610.4 39,272.6 (2,662.2)
30,605.1 32,330.9 (1,725.7)
—
—
—
—
—
—

1.93% 2.13%
1.94% 2.07%
1.10% 1.39%
0.66% 0.98%
0.24% 0.48%
1.27% 1.15%
1.70% 1.59%(0.19)%(0.12)%(0.29)%(0.31)%(0.23)%
0.12%
0.10%

32,155.8
24,657.2
5,451.6
31,118.9
26,286.5——

1999

Total:
Interest-Earning Assets (A)........................
Loans (B) ................................................
Investment Securities ............................
Interest-Bearing Liabilities (C) ...................
Deposits & NCDs (D)............................
Interest Margin (A)-(C) ..............................
Loan and Deposit Rate Margin (B)-(D).....
Domestic:
Interest-Earning Assets (A)........................
Loans (B) ................................................
Investment Securities ............................
Interest-Bearing Liabilities (C) ...................
Deposits & NCDs (D)............................
Interest Margin (A)-(C) ..............................
Loan and Deposit Rate Margin (B)-(D).....
International:Interest-Earning Assets (A)........................
Loans (B) ................................................
Investment Securities ............................
Interest-Bearing Liabilities (C) ...................
Deposits & NCDs (D)............................
Interest Margin (A)-(C) ..............................
Loan and Deposit Rate Margin (B)-(D).....
60

10.24% 9.10%
1.14%
4.95% 4.78%
0.17%
4.39%11.47% (7.07)%
9.35% 7.83%
1.51%
3.93% 3.85%
0.07%
0.88% 1.26% (0.37)%
1.02% 0.92%
0.09%

31,941.1
24,432.6
5,476.8
30,583.7
25,001.4
—
—

214.6
224.6
(25.1)
535.1
1,285.0——

7,306.3 10,300.7
4,924.6 7,561.8
848.1
709.4
7,177.0 10,382.4
4,318.6 7,329.5————(2,994.4)(2,637.1)
138.7(3,205.3)(3,010.8)——

<Interest Margin>

Net Fee & Commission
Income(¥Billion)
70

65
60

64

66

Interest Margin, which is the difference between the yield on Interest-Earning Assets and the yield on
Interest-Bearing Liabilities, improved by 0.07% from the previous year.
As to the Loan and Deposit Rate Margin, there was an improvement of 0.21% from the previous year.
Domestic Loan and Deposit Rate Margin improved by 0.10% from the previous year as a result of the
improvement in loan spreads and the decrease in deposit rates. International Loan and Deposit Rate Margin
improved by 0.09% from the previous year as a result of the reduction in low profitable assets.
(2) Net Fee & Commission Income
Net Fee & Commission Income increased by ¥9.9 billion from the previous year to ¥70.6 billion. Net Fee &Commission Income on Domestic Operations increased by ¥3.9 billion to ¥42.4 billion mainly due to anincrease in investment banking fees such as securitization fees, M&A fees, etc. Net Fee & Commission Income
on International Operations increased by ¥6.0 billion to ¥28.2 billion due to a steady increase in foreignexchange commissions, custody related fees, etc.
(3) Net Trading Income
Net Trading Income decreased by ¥7.4 billion from the previous year to ¥10.5 billion as a result of the decrease
in Net Trading Income on Domestic Operations by ¥7.7 billion. This was mainly due to the decrease inprofits arising from mark-to-market evaluation of trading assets.

1996 1997 1998 1999 2000
Years ended March 31

Breakdown of Net Other Operating Income

Total ............................................................................................................
Net Gains from Foreign Exchange Transactions .................................
Net Gains/Losses Related to Bonds.......................................................
Domestic.......................................................................................................
Net Gains/Losses Related to Bonds.......................................................
International ................................................................................................
Net Gains from Foreign Exchange Transactions .................................
Net Gains/Losses Related to Bonds.......................................................

¥26.2
27.9
6.9
13.0
13.1
13.2
27.9
(6.1)

¥82.0
16.4
79.6
75.1
76.1
6.8
16.4
3.5

¥(55.7)
11.5(72.7)(62.1)(62.9)
6.4
11.5
(9.7)

Net Other Operating Income(¥Billion)

82

Change82

Billions of yen
1998

37

1999

100

Fiscal Year

26

1996 1997 1998 1999 2000
Years ended March 31

General & Administrative
Expenses (Excluding Non-Recurring Losses)

General & Administrative Expenses (Excluding Non-Recurring Losses)(¥Billion)

Breakdown of General & Administrative Expenses (Excluding Non-Recurring Losses)
19 185
137

61

147

The Bank’s General & Administrative Expenses (Excluding Non-Recurring Losses) decreased by ¥16.7
billion from the previous year to ¥342.7 billion as a result of further rationalization and improvement inefficiency throughout its entire operations.
Personnel Expenses decreased by ¥10.4 billion to ¥137.5 billion due to the reduction in the number of
personnel and the revision of employee welfare and salary in the course of restructuring.
Non-Personnel Expenses decreased by ¥2.9 billion to ¥185.8 billion. This was mainly due to the decreasein expenses booked at overseas offices in the course of restructuring, while Premium for Deposit Insurance
increased reflecting the increase in deposits.
Miscellaneous Taxes decreased by ¥3.3 billion from the previous year to ¥19.3 billion mainly due to theabolition of securities transaction tax.

22 188¥(10.4)
(9.0)
(2.9)
(3.3)
¥(16.7)158¥147.9
125.0
188.8
22.7
¥359.528 191¥137.5
115.9
185.8
19.3
¥342.7

157

ChangePersonnel Expenses .....................................................................................
of which, Wages and Allowances..........................................................
Non-Personnel Expenses.............................................................................
Miscellaneous Taxes....................................................................................
Total .....................................................................................................

25 190Billions of yen
1998

158

1999

28 174

Fiscal Year

1996 1997 1998 1999 2000
Years ended March 31

Personnel Expenses
Non-Personnel Expenses
Miscellaneous Taxes

NON-CONSOLIDATED(4) Net Other Operating Income
Net Other Operating Income decreased by ¥55.7 billion from the previous year to ¥26.2 billion.
Net Other Operating Income on Domestic Operations decreased by ¥62.1 billion to ¥13.0 billion. This was a
result of the decrease in Net Gains/Losses Related to Bonds by ¥72.7 billion from the previous year due to theunfavorable turn in the bond market.
Net Other Operating Income on International Operations increased by ¥6.4 billion to ¥13.2 billion,
mainly due to the increase in Net Gains from Foreign Exchange Transactions by ¥11.5 billion from theprevious year.

The Fuji Bank, Limited

Fiscal 1999 in Review (Non-Consolidated)Core Net Business Profits(Gross Profits – General & Administrative Expenses– Net Gains/Losses Related to Bonds)(¥Billion)

Net Business Profits (Gyomu Jun-eki)

251

227

213

Overall, Net Business Profits before Provision of General Reserve for Possible Loan Losses were ¥258.6
billion. While this was a decrease of ¥48.0 billion from the previous year, Core Net Business Profits (=theamount after deducting Net Gains Related to Bonds from Net Business Profits), increased by ¥24.6 billion
from the previous year to ¥251.7 billion, exceeding the initial forecast at the beginning of this fiscal year(¥240.0 billion).
As ¥5.9 billion of General Reserve for Possible Loan Losses were reversed, Net Business Profits after
Provision of General Reserve for Possible Loan Losses were ¥264.5 billion, increasing by ¥71.7 billion fromthe previous year when the Bank provided a considerable amount of General Reserve for Possible Loan Losses.

<Profits by Business Segment>
Profits by Business Segment
Fiscal Year
1998

1999

2000

Years ended March 31

Gross Profits andGeneral & Administrative Expenses(¥Billion)
829
342

359

378

373

NON-CONSOLIDATED

601

666

670

702
361

1996 1997 1998 1999 2000
Years ended March 31

Gross Profits
General & Administrative Expenses

Corporate Transactions:
Gross Profits ...........................................................................................
General & Administrative Expenses.....................................................
Net Business Profits ...............................................................................
Retail Transactions:
Gross Profits ...........................................................................................
General & Administrative Expenses.....................................................
Net Business Profits ...............................................................................
Dealing/Trading, International, and Others:
Gross Profits ...........................................................................................
General & Administrative Expenses.....................................................
Net Business Profits ...............................................................................
Head Office Accounts:
Gross Profits ...........................................................................................
General & Administrative Expenses.....................................................
Net Business Profits ...............................................................................
Total:
Gross Profits ...........................................................................................
General & Administrative Expenses.....................................................
Net Business Profits ...............................................................................

1999

Billions of yen
1998

Change¥305.4164.0
141.4¥239.9167.3
72.6¥ 65.5
(3.3)
68.8

115.8
111.7
4.1

138.9
119.5
19.4

(23.1)(7.8)(15.3)

221.7
72.6
149.1

324.1
74.6
249.5

(102.4)(2.0)(100.4)(41.5)(5.6)(35.9)(36.7)(1.9)(34.8)

(4.8)
(3.7)
(1.1)

601.4
342.7
¥258.6666.2
359.5¥306.6(64.8)(16.7)¥(48.0)As to the breakdown of Net Business Profits by business segment, profits from Corporate Transactions andRetail Transactions increased by ¥53.5 billion, which was also the main factor for the improvement in Core
Net Business Profits.
Profits from Dealing/Trading, International, and Others decreased by ¥100.4 billion from the previous yearto ¥149.1 billion, mainly due to the decrease in Net Gains/Losses Related to Bonds.

62

Net Other Income/Expenses, Income before Income Taxes, Net Income
Breakdown of Net Other Income/Expenses¥338.0
394.6
19.4
27.0
10.1
344.0
93.7
117.4
25.9
25.3
59.7

¥(132.7)
79.0
74.8
120.2
16.7
601.4
282.4
145.2
34.0
90.9
5.6

¥470.7315.6(55.3)(93.2)(6.5)(257.3)(188.7)(27.8)(8.1)(65.5)
54.1

16.6

17.3

(0.7)

(1.9)
7.1
(31.6)¥ (37.6)

10.5
15.1(122.9)¥(857.1)(12.4)(8.0)
91.3¥819.4

5.3%
4.6%

1998

4.1%

1999

2000

March 31

Non-Accrual, Past Due, andRestructured Loans
Ratio to Total Loans

NON-CONSOLIDATED

63(¥Billion)

1,295.9

Accordingly, Non-Accrual, Past Due, and Restructured Loans outstanding and the ratio of such loans toTotal Loans have decreased steadily over the past several years as shown in the graph on the right. (For detailsof the problem loan status, please see P. 66)(3) Income before Income Taxes
Consequently, Income before Income Taxes increased by ¥891.2 billion from the previous year to ¥226.9 billion.
(4) Income Tax Expenses
Income Tax Expenses - Current were ¥0.2 billion. Income Tax Expenses - Deferred were ¥124.5 billion, as aresult of the Bank’s recording of taxable income for this fiscal year, and the reversal from Deferred Tax Assets(¥46.8 billion) due to the decline in the effective tax rate in accordance with the Tokyo Metropolitan
Government’s enactment of enterprise tax on gross profits.
(5) Net Income
Overall, the Bank’s Net Income for fiscal 1999 increased significantly by ¥495.0 billion from the previous yearto ¥102.1 billion, substantially exceeding the initial forecast at the beginning of this fiscal year (¥60.0 billion).

Transition of Non-Accrual,
Past Due, andRestructured Loans

1,361.6<Transition of Non-Accrual, Past Due, and Restructured Loans>

1996 1997 1998 1999 2000
Years ended March 31

1,692.7(1) Net Gains/Losses Related to Stocks and Other Securities
Net Gains Related to Stocks and Other Securities were ¥338.0 billion, increasing by ¥470.7 billion from theprevious year. This was a result of the following two factors: (1) The Bank’s Sales Gains on Stocks increased
significantly by ¥315.6 billion from the previous year to ¥394.6 billion. This was a result of the Bank’s proactive
sell-off of stocks under the stock portfolio reduction policy, in addition to the favorable turn in the stock markets.
(2) The Bank’s Devaluation Losses on Stocks decreased by ¥93.2 billion from the previous year to ¥27.0 billion.
This was because the Bank voluntarily incurred significant amounts of Sales Losses and Devaluation Losses in theprevious fiscal year in order to eliminate unrealized losses from the standpoint of retaining financial soundness.
As of March 31, 2000, net unrealized gains on listed and unlisted stocks totaled ¥548.2 billion.
(2) Expenses Related to Portfolio Problems
Expenses Related to Portfolio Problems totaled ¥344.0 billion, as the Bank strictly provided reserves andwrote-off loans in light of the decline in collateral value resulting from the fall in land prices, and the deterioration in the financial conditions of certain borrowers under the sluggish Japanese economy. Nevertheless,Expenses Related to Portfolio Problems decreased significantly by ¥257.3 billion from the previous year.
The breakdown of Expenses Related to Portfolio Problems is as follows: ¥93.7 billion of Losses on Writeoffs of Loans, ¥117.4 billion for Net Provision of Specific Reserve for Possible Loan Losses, ¥25.9 billion ofLosses on Sales of Loans to CCPC, ¥25.3 billion of Provision of Reserve for Possible Losses on Loans Sold,¥59.7 billion of Losses Due to Support of Borrowers, ¥16.6 billion of Provision of Reserve for Possible
Losses on Support of Specific Borrowers, ¥1.9 billion of reversal of Reserve for Possible Losses on Loans to
Restructuring Countries, and ¥7.1 billion of Other Losses on Sales of Loans.

(¥Billion)344(+) Net Gains/Losses Related to Stocks and Other Securities.................
Sales Gains ............................................................................................
Sales Losses...........................................................................................
Devaluation Losses...............................................................................
Net Provision of Reserves for Possible Losses on Investments.........
(–) Expenses Related to Portfolio Problems .............................................
Write-offs ..............................................................................................
Net Provision of Specific Reserve for Possible Loan Losses..............
Losses on Sales of Loans to CCPC .......................................................
Provision of Reserve for Possible Losses on Loans Sold....................
Losses Due to Support of Borrowers...................................................
Provision of Reserve for Possible Losses on
Support of Specific Borrowers...........................................................
Provision of Reserve for Possible Losses on Loans to
Restructuring Countries ....................................................................
Other Losses on Sales of Loans ...........................................................
(+) Net Other Gains/Losses .......................................................................
Net Other Income/Expenses................................................................

Expenses Related to
Portfolio Problems

601

Change980

Billions of yen
1998

323

1999

1,108

Fiscal Year

The Fuji Bank, Limited

Fiscal 1999 in Review (Non-Consolidated)
Balance Sheet
Analysis of Balance Sheet

Total Assets*
March 31,

2000

Billions of yen
1999

Change(¥Trillion)

47.0

45.9

50.2

51.0

50.0

1996 1997 1998 1999 2000
March 31*After deduction of Reserve for Possible Loan
Losses and Reserve for Devaluation of
Investment Securities

Loans and Bills
Discounted(¥Trillion)

NON-CONSOLIDATED

31.2

29.7

32.0

34.0

32.3

1996 1997 1998 1999 2000
March 31

AssetsCash and Due from Banks...........................................................................
Call Loans and Bills Purchased ...................................................................
Commercial Paper and Other Debt Purchased ..........................................
Trading Assets .............................................................................................
Money Held in Trust ...................................................................................
Securities ......................................................................................................
Loans and Bills Discounted.........................................................................
Foreign Exchange ........................................................................................
Other Assets.................................................................................................
Premises and Equipment.............................................................................
Deferred Tax Assets ....................................................................................
Customers’ Liabilities for Acceptance and Guarantees.............................
Reserve for Possible Loan Losses................................................................
Reserve for Devaluation of Investment Securities ....................................
Total Assets..................................................................................................

¥ 2,541.6 ¥ 2,028.8 ¥ 512.8
171.9
814.1
(642.1)34.9
50.8(15.8)
1,163.8
1,507.5(343.6)
50.4
60.3
(9.9)
6,427.7
5,837.7
589.9
31,267.6
29,793.3
1,474.3
316.1
421.8(105.7)
1,594.6
1,391.1
203.4
525.1
552.0
(26.8)
605.8
732.5(126.6)2,800.3
3,193.9(393.6)(464.0)(455.5)(8.5)(27.0)(16.7)(10.3)¥47,009.4 ¥45,912.2 ¥1,097.2

Liabilities
Deposits ........................................................................................................
Negotiable Certificates of Deposit...............................................................
Call Money and Bills Sold............................................................................
Commercial Paper .......................................................................................
Trading Liabilities........................................................................................
Borrowed Money .........................................................................................
Foreign Exchange ........................................................................................
Bonds ............................................................................................................
Convertible Bonds .......................................................................................
Other Liabilities ...........................................................................................
Reserve for Retirement Allowances...........................................................
Reserve for Possible Losses on Loans Sold.................................................
Reserve for Possible Losses on Support of Specific Borrowers.................
Other Reserves.............................................................................................
Deferred Tax Liability for Land Revaluation ............................................
Acceptances and Guarantees ......................................................................
Total Liabilities ............................................................................................

¥27,405.2
4,610.3
3,661.1
565.0
691.7
2,028.2
140.5
300.0
—
2,103.4
44.6
110.6
57.5
0.0
85.5
2,800.3
44,604.3¥26,964.0
5,159.1
2,383.6
400.0
932.0
1,955.4
148.4
300.0
5.6
1,792.8
45.8
129.7
84.9
0.0
94.4
3,193.9
43,590.3¥ 441.1(548.8)1,277.4
165.0(240.3)
72.8
(7.9)
—
(5.6)
310.6
(1.1)
(19.0)(27.4)
0.0(8.8)(393.6)
1,014.0

Stockholders’ Equity
Common Stock .............................................................................................
Preferred Stock.............................................................................................
Capital Surplus.............................................................................................
Legal Reserve ...............................................................................................
Land Revaluation Account .........................................................................
Earned Surplus.............................................................................................
Total Stockholders’ Equity..........................................................................
Total Liabilities and Stockholders’ Equity .................................................

560.9
478.6
929.9
102.2
135.2
198.1
2,405.0¥47,009.4

559.2
478.6
928.1
96.3
131.7
127.6
2,321.8¥45,912.2

1.7
—
1.7
5.8
3.4
70.4
83.1
¥1,097.2(1) Assets
Cash and Due from Banks increased by ¥512.8 billion from March 31, 1999 to ¥2,541.6 billion. This was
mainly due to a temporary increase in Due from Banks in international operations.
Call Loans and Bills Purchased decreased by ¥642.1 billion from March 31, 1999 to ¥171.9 billion, as theamount of short-term investment had briefly increased toward the end of the previous fiscal year.
Trading Assets decreased by ¥343.6 billion from March 31, 1999 to ¥1,163.8 billion mainly due to thedecrease in profits arising from mark-to-market evaluation of derivatives and the decrease in money market
investments such as commercial papers and certificates of deposits.
Securities increased by ¥589.9 billion from March 31, 1999 to ¥6,427.7 billion. This was a result of theincrease in short-term government bonds such as TBs and FBs in order to reduce interest rate risk while thestock portfolio was reduced through proactive sell-off of stocks.
Loans and Bills Discounted increased by ¥1,474.3 billion from March 31, 1999 to ¥31,267.6 billion. This
was a result of the increase in domestic loans while overseas loans were reduced from the standpoint ofefficient asset allocation.
64

Deferred Tax Assets decreased by ¥126.6 billion from March 31, 1999 to ¥605.8 billion. This was a
result of the decline in the effective tax rate in accordance with the Tokyo Metropolitan Government’s
enactment of enterprise tax on gross profits.
Effective this fiscal year, as a result of the changes in the Banking Law regulations, Reserves for Possible
Loan Losses and Reserves for Devaluation of Investment Securities were deducted from the asset side of
the balance sheets.
Consequently, Total Assets increased by ¥1,097.2 billion from March 31, 1999 to ¥47,009.4 billion,
despite the decrease in the yen value of foreign currency denominated assets resulting from the appreciation of
the yen.
Reserves for Possible Loan Losses and Other Reserves on the Loan Portfolio
March 31,

2000

Billions of yen
1999

ChangeGeneral Reserve for Possible Loan Losses (A) ..........................................
Specific Reserve for Possible Loan Losses (B) ...........................................
Reserve for Possible Losses on Loans to Restructuring Countries (C) ....
Reserves for Possible Loan Losses (A+B+C) ..........................................
Reserve for Possible Loan Losses on Support of Specific Borrowers (D)...
Reserve for Possible Losses on Loans Sold (E) ..........................................
Total of Reserves (A+B+C+D+E) ........................................................

¥176.7
277.8
9.4
464.0
57.5
110.6
¥632.1¥185.2
258.8
11.3
455.5
84.9
129.7
¥670.1¥ (8.5)
18.9
(1.9)
8.5
(27.4)(19.0)¥(38.0)BIS Capital Ratio on a Non-consolidated Basis
2000

Billions of yen
1999

Change11.86%¥ 2,415.0
1,897.0—
99.3
1,620.9
310.9

11.53%¥ 2,360.5
1,794.6—
101.8
1,507.5
300.9

0.33%
¥ 54.5
102.4
—
(2.4)
113.4
9.9

310.9
¥ 4,001.1¥33,708.8

300.9¥ 3,854.1¥33,412.3

9.9¥147.0¥296.4

March 31,

BIS Capital Ratio..........................................................................................
Tier I (A).....................................................................................................
Tier II (B) .....................................................................................................
Unrealized Gains on Securities, included under Tier II ......................
Land Revaluation Account, included under Tier II ............................
Subordinated Loans (Bonds) ................................................................
Deductions (C).............................................................................................
Intentional Holdings of Other Financial Institutions’Capital Raising Instruments ................................................................
Total Capital (A)+(B)-(C)..........................................................................
Risk-Adjusted Assets...................................................................................

65

NON-CONSOLIDATED(2) Liabilities
Deposits increased by ¥441.1 billion from March 31, 1999 to ¥27,405.2 billion. This was a result of theincrease in current deposits and foreign currency deposits while term-deposits decreased under the current
low interest rate environment. The breakdown by depositor indicates that deposits from individual
customers increased steadily.
Funding through market instruments, such as NCDs, Call Money and Bills Sold, and Commercial Paper
increased by ¥893.5 billion in the aggregate, in accordance with the increases in interest-earning assets suchas loans and securities.
Trading Liabilities decreased by ¥240.3 billion from March 31, 1999 to ¥691.7 billion due to the decreasein mark-to-market evaluation amount of derivatives.
Convertible Bonds were redeemed before their final maturity dates.
Consequently, Total Liabilities increased by ¥1,014.0 billion from March 31, 1999 to ¥44,604.3 billion.
(3) Stockholders’ Equity
Earned Surplus increased by ¥70.4 billion from March 31, 1999 to ¥198.1 billion due to better-than-forecasted
Net Income for this fiscal year. Consequently, Total Stockholders’ Equity increased by ¥83.1 billion fromMarch 31, 1999 to ¥2,405.0 billion. BIS Capital Ratio on a Non-Consolidated Basis was 11.86%, which isof a high level maintained by the Bank.

The Fuji Bank, Limited

Fiscal 1999 in Review (Non-Consolidated)

STATUS OF PROBLEM LOANS
Fuji Bank has continued to proactively dispose of its problem loans and improve its standard of disclosure. Regarding the disposal of problem loans,the Bank appropriately wrote off loans and provided reserves based on conservative and rational guidelines unified among the 3 consolidating banks(DKB, Fuji, and IBJ), in line with FSA and FRC guidelines. Regarding disclosure of asset quality, the Bank discloses its asset quality under threestandards; Disclosed Claims under the Financial Reconstruction Law, Non-Accrual, Past Due, and Restructured Loans, and the self-assessment
results. While the first two disclosure standards are mandatory, the Bank’s disclosure of its self-assessment results is voluntary. Such voluntary
disclosure reflects the Bank’s continuous attitude in improving its transparency. In the following section, details of the disclosure of asset quality
under these three standards are described using the charts below.
*The figures below are figures after direct write-offs of Category IV claims.
(Billions of yen)
1.

2.

3.

Disclosed Claims
under the Financial
Reconstruction Law

Non-Accrual,
Past Due &Restructured Loans

Claims against Bankrupt
andQuasi-Bankrupt Obligors¥217.0Loans to Bankrupt
Borrowers¥83.0

Self-Assessment
Category

Category I

Category II

Category III

Category IV(Non-Collateralized)

ObligorClassification(a) Bankrupt &¥38.1¥178.9Substantially¥217.0Covered byReserves,
Good Quality
Collateral,
Guarantees

Covered by
Collateral(Real Estate)/
Guarantees(b) Intensive Control¥352.9¥201.4¥98.0

Covered by
Collateral(Real Estate)/
Guarantees

Reserve Ratio
73.1%

Bankrupt Obligors

Obligors(c) Watch Obligors

NON-CONSOLIDATED¥652.4

SpecialAttention
Obligors¥565.5

Covered byReserves,
Good Quality
Collateral,
Guarantees¥144.6

Reserve Ratio
100%

DirectWrite-offs

Loans with
Reserves areincluded in
Category I

Coverage Ratio:
100%
Claims with
Collection Risk
¥652.4Loans with
Reserves areincluded in
Category I

Coverage Ratio:
85.0%¥420.9Claims forSpecial Attention (*1)¥444.2
Coverage Ratio:
72.2%

Reserve Ratio
28.0%
With Collateral¥225.6
Without Collateral ¥339.9

Other Watch
Obligors¥17.9 (*2)
Loans Past Due for
3 Months or More
¥126.7
Restructured Loans¥317.5¥1,618.1
Total Coverage Ratio:
83.1%

Provisioning based on
historical default ratio(d) Normal Obligors(e) Total¥34,542.9

Non-Accrual
Delinquent Loans¥768.5

Category I¥32,025.4

Category II¥2,419.3

Category III¥98.0

Category IV
¥0.0

Total
¥1,313.8

Total¥1,295.9(*1) Claims for Special Attention includes loans only and is equal to the total of Loans Past Due for 3 Months or More and Restructured Loans.
The figure under Special Attention Obligors represents the total amount of claims against the obligors of Claims for Special Attention.
Coverage Ratio against Claims for Special Attention is calculated by dividing the total amount of reserves, collateral, guarantees, etc. for claims against Special
Attention Obligors by the total amount of Claims for Special Attention.
(*2) The difference between the total of Non-Accrual, Past Due, & Restructured Loans and Disclosed Claims under the Financial Reconstruction Law is the amount ofclaims besides loans and bills discounted among Disclosed Claims under the Financial Reconstruction Law.

Obligor Classification(a) Bankrupt & Substantially
Bankrupt Obligors:
Obligors who are bankrupt both legally and formally, or obligors who are substantially bankrupt.
(b) Intensive Control Obligors: Obligors who have high potential risks of going bankrupt.
(c) Watch Obligors:
Obligors who need to be monitored carefully.
Special Attention Obligors: Obligors who need to be monitored carefully, as they are watch obligors with loans past due for 3 months or more or restructured loans.
(d) Normal Obligors:
Obligors who have no problems in particular concerning their business performances and their financial conditions.

Asset Classification
Category I:

1. All exposures to normal obligors
2. Exposures to other obligor classifications which are covered by good quality collateral (e.g. deposits) or guarantees
Category II: 1. Exposures to watch obligors (excluding Category I)
2. Exposures to intensive control obligors, bankrupt & substantially bankrupt obligors covered by collateral (e.g. real estate) or guarantees
Category III: 1. Exposures to intensive control obligors (excluding Categories I & II)
2. Exposures covered by the difference between the book value and the market value of collateral for bankrupt & substantially bankrupt obligors(exposures with collection risks, with possible potential losses)
3. Expected amount of financial support including debt forgiveness (to be recorded in the future) to Special Attention Obligors who have businessreform plans presupposing such financial support from financial institutions
Category IV: Exposures to bankrupt/substantially bankrupt obligors (excluding Categories I~III)(exposures which cannot be collected or have no value)66

As shown on P.66, Disclosed Claims under the Financial
Reconstruction Law include claims with collateral or guarantees, andclaims provided with reserves. Coverage Ratio, which is an appropriate measure of protection incorporating reserves, collateral, andguarantees, is the ratio of the total of collateral, guarantees, andcorresponding reserves to these disclosed claims (problem loans). The
Coverage Ratios of Claims against Bankrupt and Quasi-Bankrupt
Obligors, Claims with Collection Risk, and Claims for Special
Attention, as of March 31, 2000, were 100%, 85.0%, and 72.2%,
respectively. The overall coverage ratio of these claims was at a
sufficient level of 83.1%.

1. Self-assessment ~ Recognition of Asset Quality and
the Process of Write-off/Provisioning
The Bank self-assesses all of its assets every 6 months to accurately
recognize its asset quality. This self-assessment is very important, as
loans will be written-off and reserves will be provided in accordancewith the results. There are two steps in the process of this selfassessment. The first step is to classify the obligors into one of four
categories (a~d) shown on P.66, according to their financial andmanagement situation. (Please refer to the definitions of the obligor
classification.) The second step is to classify the assets in order ofcollection risks from low to high or from Category I to IV, taking into
consideration the probability of the collection of the assets by obligor,
based on their corresponding collateral and guarantees. (Please refer tothe definitions of the asset classification.)
In fiscal 1999, loans were written off and reserves were provided
as follows, based upon the above self-assessment:
q For Exposures to Bankrupt and Substantially Bankrupt Obligors:
Category IV—100% of the exposures were directly written-off.
Category III—100% of the exposures were fully provided withreserves.
(Categories I and II are exposures fully covered by reserves, collateral and guarantees.)
w For Exposures to Intensive Control Obligors:
Category III—Reserves amounting to 73.1% of the entire Category
III exposures were provided.
(Categories I and II are exposures fully covered by reserves, collateral and guarantees.)
e For Exposures to Watch Obligors:

3. Non-Accrual, Past Due, and Restructured Loans• For Special Attention Obligors:
Reserves amounting to 28.0% of the exposures not covered by collateralor guarantees were provided.
• For Other Watch Obligors:
Reserves were provided based on the annual historical loss ratio multiplied by three. As a result, reserves amounting to 3.61% of the total
exposures were provided.

r For Exposures to Normal Obligors:
Reserves were provided based on the annual historical loss ratio.
As a result, reserves amounting to 0.12% of the total exposures
were provided.
Consequently, as of March 31, 2000, the total of Categories II~IV was¥2,517.4 billion, as shown on P.66 (e).

2. Disclosed Claims under the Financial Reconstruction Law
Starting from March 31, 1999, disclosure of asset assessment under
the financial reconstruction law has become mandatory. This disclosure is based on the obligor classification of the above-mentioned selfassessment. As shown on P.66, under this disclosure, claims against
Bankrupt Obligors and Substantially Bankrupt Obligors are disclosed
as Claims against Bankrupt and Quasi-Bankrupt Obligors, claims
against Intensive Control Obligors as Claims with Collection Risk,
and claims against Watch Obligors which are either Loans Past Duefor 3 Months or More or Restructured Loans (under Non-Accrual,
Past Due, and Restructured Loans) as Claims for Special Attention.
As of March 31, 2000, there were ¥217.0 billion of Claims against
Bankrupt and Quasi-Bankrupt Obligors, ¥652.4 billion of Claims
with Collection Risk, and ¥444.2 billion of Claims for Special
Attention. They totaled ¥1,313.8 billion, which account for 3.8% of
Total Claims.

67

NON-CONSOLIDATED

Non-Accrual, Past Due, and Restructured Loans, which are the totalof Loans to Bankrupt Borrowers, Non-Accrual Delinquent Loans,
Loans Past Due for 3 Months or More, and Restructured Loans, arecontinuously disclosed. As this disclosure mainly focuses on therepayment status of the loans and interests of the borrowers, it may
not reflect the accurate financial situation of the borrowers.
Therefore, the total amount of disclosed loans did not necessarily
match that from the results of the Bank’s self-assessment. From March
31, 1999, the Bank modified the standard of the Non-Accrual, Past
Due, and Restructured Loans, so that it would be more consistent
with the results of the self-assessment. The modified standard moreaccurately reflects the substantial situation of the borrowers.
Concretely, the criteria for suspension of interest accrual have beenchanged. The previous criteria were consistent with the tax regulation
standards (i.e. interest accrual was suspended only for interest receivable on loans for legally bankrupt obligors or interest receivable onloans past due for 6 months or over). The new criteria are based on
the obligor classification of the self-assessment process, so that nointerest receivable on loans to Bankrupt Obligors, Substantially
Bankrupt Obligors and Intensive Control Obligors is accrued. Under
the modified standard of Non-Accrual, Past Due, and Restructured
Loans (which reflects the new criteria for suspension of interest
accrual), all loans to Bankrupt Obligors, Substantially Bankrupt
Obligors and Intensive Control Obligors are now disclosed as either
Loans to Bankrupt Borrowers or Non-Accrual Delinquent Loans.
As of March 31, 2000, Non-Accrual, Past Due and Restructured
Loans totaled ¥1,295.9 billion. The difference between this amountand the amount of Disclosed Claims under the Financial
Reconstruction Law (=¥1,313.8 billion) is the amount of claims
besides loans and bills discounted included in Disclosed Claims under
the Financial Reconstruction Law.

The Fuji Bank, Limited

Fiscal 1999 in Review (Non-Consolidated)

Current Execution Status of the Restructuring Plan

As to domestic offices, the number of branches was 270, one less thanplanned, as a result of a reduction of 14 branches in fiscal 1999.
Furthermore, rationalization and diversification of offices wereaccelerated, as a total of 6 sub-branches and agencies were reduced,
55 full-service branches were converted into branches specializing inretail transactions, and 7 branches were converted into joint brancheswith Yasuda Trust.
As to overseas offices, the number of branches was 17, a reductionof 2 in fiscal 1999. Although 17 is one more than the target for March
31, 2000, this is due to the review of the reorganization of the branch
network in the Americas reflecting the consolidation of the 3 banks.
However, the Bank’s total number of overseas offices was fewer than
the targeted number of offices as the number of local subsidiaries
reduced was two more than the target.
The number of directors and senior overseers was reduced by 5, as
planned, to 34 with the implementation of a more efficient management system. Director remuneration was maintained at the revisedlevel after reduction, and no bonuses were paid to directors.
Furthermore, to promote streamlined decision-making, the executive
officer system was introduced in June this year. The number of
directors and senior overseers under this system is currently 18.
The number of personnel was 13,567, which number was fewer
than the target for March 31, 2000 by 233. This was as a result of areduction of 409 in fiscal 1999.
Personnel expenses were ¥137.5 billion, ¥5.5 billion lower than thetarget, as a result of a reduction in the number of personnel, a continuation of reductions in bonuses paid to employees, and the freezing ofsalaries at existing levels.
Non-personnel expenses were ¥185.8 billion, ¥11.2 billion lower
than the target, as a result of continuous improvements in efficiency,
while maintaining strategic investments such as IT investments.
Consequently, General & Administrative Expenses decreased to¥342.7 billion in total, ¥23.3 billion lower than the target.
As to non-business facilities, all resort facilities for employee rest
and recreation were closed in fiscal 1999. 42 facilities such as resort
facilities, sports grounds, and company-owned apartment houses for
employees were sold.

The following section compares the Bank’s current status with theforecast contained in the restructuring plan submitted to the Financial
Reconstruction Commission (“FRC”) in March 1999.

1. Operating Performance
Billions of yen
FY1999 FY1999
results
plan Difference

Net Business Profits(before Provision of General Reserve) .. ¥258.6
Core Net Business Profits* ....................... 251.7
Net Income ................................................. 102.1¥270.0240.0
60.0¥(11.4)
11.7
42.1

Earned Surplus........................................... ¥198.1 ¥137.0
BIS Capital Ratio........................................ 11.00% 10.57%

¥61.1
0.43%

NON-CONSOLIDATED*Excludes Net Gains Related to Bonds

Net Business Profits (before Provision of General Reserve for Possible
Loan Losses) were ¥258.6 billion, ¥11.4 billion lower than the restructuring plan target as a result of lower-than-expected Net Gains Related to
Bonds. However, Core Net Business Profits (=the amount after deduction of Net Gains Related to Bonds from Net Business Profits) were¥251.7 billion, exceeding the restructuring plan target by ¥11.7 billion.
Expenses Related to Portfolio Problems exceeded the planned
amount. This was because of the decline in collateral value resulting
from a fall in land prices, as well as a worse-than-expected deterioration in the financial conditions of certain borrowers with the continued sluggish Japanese economy.
Net Gains Related to Stocks and Other Securities were ¥338.0
billion amidst a favorable turn in the stock market, as the Bank
proactively sold-off its stocks under its stock portfolio reduction
policy.
Consequently, Net Income was ¥102.1 billion, significantly exceeding the target by ¥42.1 billion. Earned Surplus also increased considerably to ¥198.1 billion, exceeding the target by ¥61.1 billion.
BIS Capital Ratio (Consolidated Basis) as of March 31, 2000 was
11.00%, exceeding the target by 0.43%, maintaining an adequate level.

3. Domestic Loans
Since July 1999, the Bank has responded to its clients’ demands foreven better financial services by promoting a campaign to increase
good quality assets and increasing its line of products as well as
strengthening the related marketing sections. As a result, domestic
loan volume increased by ¥2,522.2 billion on the previous year,
exceeding the volume increase target of ¥1,335.0 billion.
Loans to small/mid-sized companies also increased by ¥610.0
billion on the previous year, exceeding the volume increase target of¥540.0 billion. Of the ¥610.0 billion, ¥407.9 billion was a result eitherof the introduction of a variety of loan products such as “Fuji Smalland Medium-Size Business Development Fund,” “Special Interest Rate
Fund,” and “Charitable Trust for Fuji New Business Fund,” or of thearrangement of CLOs in accordance with the Tokyo Metropolitan
Government’s creation of a new bond market for small/medium-sizedcompanies.

2. Progress of Restructuring
Domestic Branches*1 ................................
Overseas Branches.....................................
Overseas Subsidiaries*2 ............................

FY1999results

FY1999plan

FY1998results

270
17
11

271
16
13

284
19
15

*1: Excludes in-store branches, branches for remittance-receiving
purposes only, sub-branches, and agencies*2: Subsidiaries in which Fuji directly invests and Fuji group’s investment exceeds 50%
FY1999 FY1999 FY1998
resultsplan
results

Number of Directors andSenior Overseers ......................................
34
Number of Employees ............................... 13,567

34
13,80039
13,976

Billions of yen
FY1999 FY1999 FY1998
resultsplan
results

General & Administrative Expenses ........ ¥342.7
Personnel Expenses ................................... 137.5
Non-Personnel Expenses........................... 185.8¥365.0143.0
197.0¥359.5
147.9
188.8

68

Fuji Bank Group

Consolidated Five-Year Summary
Millions of yen
Years ended March 31,

2000

1999

1998

1997

1996

Total Income¥3,097,192¥2,653,442¥2,884,025¥2,749,856¥3,127,701

Total Expenses

Consolidated Statements of Income
2,814,173

3,402,011

3,382,303

2,653,523

3,528,280

Income (Loss) before Income Taxes and Minority Interests

283,018(748,568)(498,277)

96,332(400,579)

Net Income (Loss)

52,831(422,030)(345,309)

109,044(325,420)

1997

1996

Millions of yen
March 31,

2000

1999

1998

Total Assets
Cash and Due from Banks
Call Loans and Bills Purchased
Trading Assets¥58,246,731 ¥57,260,403 ¥54,209,292¥55,189,124 ¥53,420,665

2,741,992

2,434,580

2,821,634

4,341,701

5,626,067

985,413

1,793,282

1,453,230

2,230,223

1,617,672

2,773,856

2,930,820

3,265,412

—

—

—

—

—

845,037

1,104,386

Securities

Trading Account Securities

7,588,585

6,668,759

6,044,830

5,607,096

5,646,405

Loans and Bills Discounted

36,371,589

34,815,843

34,028,201

35,714,787

33,793,990(624,291)(684,674)(904,217)(1,022,030)(980,737)

Reserve for Possible Loan Losses
Total Liabilities, Minority Interests and Stockholders’ Equity

58,246,731

57,260,403

54,209,292

55,189,124

53,420,665

Total Liabilities

55,611,096

54,664,406

52,350,444

53,211,889

51,757,376

Deposits

35,463,225

34,646,230

34,552,361

38,649,481

37,280,377

Call Money and Bills Sold

4,875,401

3,833,529

3,755,273

4,310,517

4,812,472

Trading Liabilities

2,101,575

1,823,830

2,057,167——

Borrowed Money

2,208,020

2,794,984

2,645,588

1,892,034

2,614,726

Bonds and Debentures

2,015,335

1,356,075

1,657,224

1,322,494

904,255

Due to Trust Account

1,427,125

1,927,770———

388,182

408,144282,392

42,885

26,683

2,247,452

2,187,852

1,576,455

1,934,349

1,636,606

2000

1999

1998

1997

1996

Net Income (Loss) per Share¥12.77¥(142.07)¥(119.35)¥37.54¥(112.31)

Net Income per Share (diluted)

12.44

—

—

37.27

—

7.00

7.00

8.50

8.50

6.50

First Series Class I Preferred Stock

7.50

7.50

7.50

3.75

—

Second Series Class IV Preferred Stock

42.00

0.12

—

—

—

Third Series Class III Preferred Stock

11.00

0.04

—

—

—

Fourth Series Class III Preferred Stock

8.00

0.03

—

—

—

Minority Interests
Total Stockholders’ Equity

Yen
Years ended March 31,

Per Share

Dividend per Share:
Common Stock
Preferred Stock:

Note: Amounts less than one million yen have been omitted.

69

CONSOLIDATED

Consolidated Balance SheetsFuji Bank Group

Consolidated Financial Statements
Consolidated Balance Sheets
Thousands of
U.S. dollars (Note 1)

Millions of yen
March 31,

2000

1999

2000

Cash and Due from Banks (Note 8)..................................................................

¥ 2,741,992¥ 2,434,580$ 25,831,296

Call Loans and Bills Purchased..........................................................................

985,413

1,793,282

9,283,217

Commercial Paper and Other Debt Purchased.................................................

184,233

85,441

1,735,597

Trading Assets (Note 3) ....................................................................................

2,773,856

2,930,820

26,131,475

Money Held in Trust .........................................................................................

76,236108,228

718,200

Securities (Notes 4 and 8) .................................................................................

7,588,585

6,668,759

71,489,266

Loans and Bills Discounted (Notes 5 and 8) ....................................................

36,371,589

34,815,843

342,643,327

Foreign Exchange ..............................................................................................

343,437

448,583

3,235,394

Other Assets (Notes 6 and 8) ............................................................................

4,155,277

4,384,841

39,145,334

Premises and Equipment (Notes 7 and 8) ........................................................

697,084

745,616

6,566,979

Deferred Tax Assets (Note 28) .........................................................................

871,685

1,069,255

8,211,829

Consolidation Difference ..................................................................................

73,49367,376692,357

Customers’ Liabilities for Acceptances and Guarantees (Note 16) ....................

2,020,909

2,392,446

19,038,247

Reserve for Possible Loan Losses ......................................................................

(624,291)(684,674)(5,881,220)

Reserve for Devaluation of Investment Securities...........................................

(12,772)—(120,325)

Total Assets .............................................................................................

¥58,246,731¥57,260,403$548,720,973

CONSOLIDATEDASSETS

The accompanying notes are an integral part of these statements.

70Thousands of
U.S. dollars (Note 1)

Millions of yen
March 31,

2000

1999

2000

Deposits (Notes 8 and 9) ...................................................................................

¥35,463,225¥34,646,230$334,085,965

Call Money and Bills Sold (Note 8)...................................................................

4,875,401

3,833,529

45,929,355

Commercial Paper (Note 11).............................................................................

1,022,730

725,468

9,634,764

Trading Liabilities (Note 3)...............................................................................

2,101,575

1,823,830

19,798,172

Borrowed Money (Notes 8 and 10) ..................................................................

2,208,020

2,794,984

20,800,948

Foreign Exchange...............................................................................................

139,193

137,789

1,311,294

Bonds and Debentures (Note 12)......................................................................

2,015,335

1,356,075

18,985,731

Convertible Bonds (Note 13).............................................................................

6,929

15,46465,280Due to Trust Account ........................................................................................

1,427,125

1,927,770

13,444,426

Other Liabilities (Note 14) ................................................................................

4,014,216

4,669,740

37,816,454

Reserve for Retirement Allowances .................................................................

52,66657,051

496,150

Other Reserves (Note 15)..................................................................................

176,303

189,542

1,660,891

Deferred Tax Liabilities (Note 28)....................................................................

1,872

—

17,643

Deferred Tax Liability for Land Revaluation...................................................

85,58994,481

806,306

Acceptances and Guarantees (Note 16) ...........................................................

2,020,909

2,392,446

19,038,247

Total Liabilities.........................................................................................

55,611,096

54,664,406

523,891,626

Minority Interests.............................................................................................

388,182

408,1443,656,923

Common Stock (Note 18) ..................................................................................

560,927559,216

5,284,291

Preferred Stock (Note 18)..................................................................................

478,616

478,616

4,508,870

Capital Surplus (Note 18) ..................................................................................

929,907928,196

8,760,319

Land Revaluation Account (Note 17) ..............................................................

135,229

131,767

1,273,947

Earned Surplus ...................................................................................................

144,531

118,759

1,361,574

Treasury Stock ...................................................................................................

(9)

(12)

(94)

Shares in Parent Company Held by Subsidiaries .............................................

(1,749)(28,692)(16,483)

Total Stockholders’ Equity ......................................................................

2,247,452

2,187,852

21,172,424

Total Liabilities, Minority Interests and Stockholders’ Equity ........

¥58,246,731¥57,260,403$548,720,973

LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS’ EQUITY
Liabilities

71

CONSOLIDATED

Stockholders’ Equity

Fuji Bank Group

Consolidated Financial Statements
Consolidated Statements of Income
Thousands of
U.S. dollars (Note 1)

Millions of yen

CONSOLIDATED

Years ended March 31,

2000

1999

2000

INCOMEInterest Income (Note 19).....................................................................................
Fiduciary Income ...................................................................................................
Fee and Commission Income ................................................................................
Trading Income (Note 20) ....................................................................................
Other Operating Income (Note 21) ......................................................................
Other Income (Note 21) ........................................................................................

¥1,635,326
38,743220,943
43,323492,113666,741¥1,707,350—
176,880
38,142515,395
215,673$15,405,812
364,987
2,081,431
408,131
4,636,018
6,281,126

Total Income .....................................................................................................

3,097,192

2,653,442

29,177,505

EXPENSESInterest Expenses (Note 22)..................................................................................
Fee and Commission Expenses ............................................................................
Trading Expenses (Note 23) .................................................................................
Other Operating Expenses (Note 24) ...................................................................
General and Administrative Expenses .................................................................
Other Expenses (Note 24).....................................................................................

1,048,959
41,1893,364
407,281556,557
756,821

1,204,059
48,031—
364,449494,565
1,290,904

9,881,856
388,029
31,694
3,836,847
5,243,126
7,129,737

Total Expenses ..................................................................................................

2,814,173

3,402,011

26,511,289

Income (Loss) before Income Taxes and Minority Interests ..............................
Income Tax Expenses (Note 25):
Current ..............................................................................................................
Deferred.............................................................................................................
Minority Interests in Net Income .........................................................................

283,018(748,568)

2,666,216

16,287
194,547
19,352

18,362(362,022)
17,121

153,442
1,832,759
182,308

52,831¥ (422,030)

Net Income (Loss) ..............................................................................................

¥Yen

Net Income (Loss) per Share.................................................................................
Net Income per Share (diluted) ............................................................................
Dividend per Share:
Common Stock ..................................................................................................
Preferred Stock:
First Series Class I Preferred Stock .............................................................
Second Series Class IV Preferred Stock ......................................................
Third Series Class III Preferred Stock ........................................................
Fourth Series Class III Preferred Stock.......................................................
The accompanying notes are an integral part of these statements.

72$

497,707

U.S. dollars (Note 1)¥12.77
12.44¥(142.07)
—

$0.12
0.12

7.00

7.00

0.07

7.50
42.00
11.00
8.00

7.50
0.12
0.04
0.03

0.07
0.40
0.10
0.08

Consolidated Statements of Earned Surplus
Thousands of
U.S. dollars (Note 1)

Millions of yen
Years ended March 31,

1999

2000

Balance at Beginning of Year....................................................................................
Increase:
Effect of the Change in Scope of Consolidated Subsidiaries and Affiliates ....................
Reversal of Land Revaluation Account ..............................................................
Decrease:
Effect of the Change in Scope of Consolidated Subsidiaries and Affiliates ....................
Dividends ..............................................................................................................
Bonuses to Directors and Statutory Auditors.....................................................
Net Income (Loss) ....................................................................................................

¥118,759¥627,426$1,118,789

1,244
3,011

6,708
—

11,72328,368(2,463)(28,851)(0)
52,831(57,806)(35,536)(1)(422,030)(23,209)(271,796)(8)
497,707

Balance at End of Year ..............................................................................................

¥144,531¥118,759$1,361,574

The accompanying notes are an integral part of these statements.

73

CONSOLIDATED

2000

Fuji Bank Group

Consolidated Financial Statements
Consolidated Statements of Cash Flows
Thousands of
U.S. dollars (Note 1)

Millions of yen

CONSOLIDATED

Years ended March 31,

2000

1999

2000

¥ 283,018¥ (748,568)$ 2,666,216

44,78017,566(12,432)(33,018)
12,772(20,632)
7,380(4,278)(1,635,326)
1,048,959(456,027)
4,856
19,39623,989(71,161)
36,433
339,673(1,916,027)
709,306
95,788(174,365)(350,609)
584,502451,874
1,211,954
333,662(367,077)
105,851
1,300
535,912(500,644)
1,550,495(1,091,243)(13)(184,197)
602,417(16,279)
586,137

53,0097,728
12,690(403,358)—76(79)(2,373)(1,707,350)
1,204,059
162,452
310(17,339)(73,995)—
512,992(417,779)
2,638,766(4,319,391)
1,875,209(1,610,026)
875,383(336,183)(353,978)29,772413,888
60,365(125,720)
25,057(9,978)6,148
1,876,699(1,340,379)(9)347,375(1,364,525)(10,519)(1,375,045)

421,861
165,485(117,118)(311,057)
120,325(194,375)
69,525(40,310)(15,405,812)
9,881,856(4,296,066)
45,754
182,731
225,994(670,385)
343,230
3,199,936(18,050,185)
6,682,111
902,384(1,642,635)(3,302,965)
5,506,381
4,256,944
11,417,380
3,143,314(3,458,099)
997,191
12,2495,048,632(4,716,386)
14,606,643(10,280,207)(131)(1,735,255)
5,675,156(153,367)
5,521,789

Cash Flows from Investment Activities:
Purchases of Investment Securities ..........................................................................................................................
Proceeds from Sales of Investment Securities ..........................................................................................................
Proceeds from Redemption of Investment Securities ..............................................................................................
Increase in Money Held in Trust ..............................................................................................................................
Decrease in Money Held in Trust .............................................................................................................................
Expenditures for Premises and Equipment ..............................................................................................................
Proceeds from Sales of Premises and Equipment ..................................................................................................
Purchases of Equity Investments in Subsidiaries Due to Increase in Number of Subsidiaries.............................
Proceeds from Sales of Equity Investments in Subsidiaries Due to Decrease in Number of Subsidiaries ...........
Investment in Consolidated Subsidiaries’ Equity ....................................................................................................
Expenditures on Acquisition ....................................................................................................................................
Proceeds from Sales of Asset Management, Administration and Factoring Business ..........................................
Net Cash Provided by (Used in) Investment Activities .................................................................................

(13,189,661)
9,929,549
2,590,486(206,300)
233,432(49,303)
21,646—
19,483(252)(27,510)
180,557(497,872)(6,324,248)
6,945,544
85,505(181,438)
206,439(40,912)102,772(355,086)
24,591———
463,168(124,254,939)
93,542,625
24,404,016(1,943,479)
2,199,081(464,469)
203,928—
183,547(2,383)(259,169)
1,700,965(4,690,277)

Cash Flows from Financing Activities:
Proceeds from Issuance of Subordinated Borrowings..............................................................................................
Repayment of Subordinated Borrowings ..................................................................................................................
Proceeds from Issuance of Subordinated Bonds and Convertible Bonds................................................................
Repayment of Subordinated Bonds and Convertible Bonds ....................................................................................
Proceeds from Issuance of Preferred Stock and Capital Stock ................................................................................
Dividends Paid............................................................................................................................................................
Dividends Paid to Minority Interests (Stockholders) ..............................................................................................
Purchase of Treasury Stock ......................................................................................................................................
Proceeds from Sales of Treasury Stock ....................................................................................................................
Net Cash Provided by (Used in) Financing Activities ...................................................................................

13,714(288,160)
167,100(2,288)—(28,851)(22,630)(528)
42,246(119,397)

5,000(30,311)200,000(6,916)
1,016,988(35,558)(71,599)(95)
82
1,077,590

129,202(2,714,651)
1,574,187(21,561)—(271,796)(213,195)(4,982)397,992(1,124,804)

Effect of Exchange Rate Changes on Cash and Cash Equivalents ..........................................................................
Net Increase (Decrease) in Cash and Cash Equivalents ..........................................................................................
Cash and Cash Equivalents at Beginning of Year......................................................................................................
Effect of the Increase in Scope of Consolidated Subsidiaries and Affiliates, Net of Cash and Cash Equivalents ...
Effect of the Decrease in Scope of Consolidated Subsidiaries and Affiliates, Net of Cash and Cash Equivalents ...
Cash and Cash Equivalents at End of Year ................................................................................................................

(2,927)(34,060)
1,207,676
00¥1,173,615

323
166,036
1,040,512
1,332
(204)
¥1,207,676(27,582)(320,874)
11,377,075
0
0$11,056,201

Cash Flows from Operating Activities:
Income (Loss) before Income Taxes and Minority Interests........................................................................................
Adjustments to Reconcile Income (Loss) before Income Taxes andMinority Interests to Net Cash Provided by (Used in) Operating Activities:
Depreciation and Amortization.................................................................................................................................
Amortization of Consolidation Difference ...............................................................................................................
Equity in Losses (Gains) on Unconsolidated Subsidiaries and Affiliates...............................................................
Net Decrease in Reserve for Possible Loan Losses ..................................................................................................
Net Increase in Reserve for Devaluation of Investment Securities.........................................................................
Net Increase (Decrease) in Reserve for Possible Losses on Loans Sold..................................................................
Net Increase (Decrease) in Reserve for Possible Losses on Support of Specific Borrowers .................................
Net Decrease in Reserve for Retirement Allowances ..............................................................................................
Accrued Interest and Dividend Income ...................................................................................................................
Accrued Interest Expenses ........................................................................................................................................
Investment Securities Losses (Gains) — Net............................................................................................................
Losses on Money Held in Trust.................................................................................................................................
Foreign Exchange Losses (Gains) — Net..................................................................................................................
Losses (Gains) on Disposal of Premises and Equipment .........................................................................................
Gains on Sales of Asset Management, Administration and Factoring Business ...................................................
Net Decrease in Trading Assets ................................................................................................................................
Net Increase (Decrease) in Trading Liabilities.........................................................................................................
Net Decrease (Increase) in Loans..............................................................................................................................
Net Increase (Decrease) in Deposits .........................................................................................................................
Net Increase in Negotiable Certificates of Deposit (NCDs).....................................................................................
Net Decrease in Borrowed Money excluding Subordinated Borrowings ...............................................................
Net Decrease (Increase) in Deposits with Other Commercial Banks .....................................................................
Net Decrease (Increase) in Call Loans and Others...................................................................................................
Net Decrease (Increase) in Collateral Under Resale Agreements and Securities Borrowing Transactions.........
Net Increase in Call Money and Others ....................................................................................................................
Net Increase in Commercial Paper ............................................................................................................................
Net Increase (Decrease) in Collateral Under Repurchase Agreements and Securities Lending Transactions ....
Net Decrease (Increase) in Foreign Exchange (Assets)...........................................................................................
Net Increase in Foreign Exchange (Liabilities) ........................................................................................................
Net Increase (Decrease) in Issuance, Redemption of Corporate Bonds .................................................................
Net Increase (Decrease) in Due to Trust Account...................................................................................................
Interest and Dividends Received...............................................................................................................................
Interest Paid ................................................................................................................................................................
Bonuses to Directors and Statutory Auditors...........................................................................................................
Others..........................................................................................................................................................................
Subtotal...................................................................................................................................................................
Income Taxes Paid .....................................................................................................................................................
Net Cash Provided by (Used in) Operating Activities ...................................................................................

The accompanying notes are an integral part of these statements.
74

Fuji Bank Group

Notes to Consolidated Financial Statements
1. Basis of Presentation(Consolidation Difference)
The differences between cost and underlying interest (consolidation difference)
are amortized principally over a period of 20 years by the straight-line method.
If these differences have no material impact on the consolidated financial
statements, they are charged or credited to income in the year of acquisition. In
the case of overseas subsidiaries, such differences are amortized over the period
stipulated in the country in which these subsidiaries are situated. Such differences for Heller International Group, Inc., Fuji America Holdings, Inc. andYasuda Trust and Banking Co., Ltd., recognized by the previous fiscal year areamortized over a period of 5 years on a straight-line basis. Until the fiscal year
ended March 31, 1999, consolidation differences were charged or credited toincome in the year of acquisition or amortized over a period of 5 years on astraight-line basis, but with the revision of the “Principles of Consolidated
Financial Statements” for the year ended March 31, 2000, amortization of
consolidation differences is calculated as stated above.
The effect of this change results in an increase in Consolidation
Difference of ¥4,492 million from the previous year, and an increase in
Income before Income Taxes and Minority Interests of ¥4,492 million.

(Trading Assets and Liabilities)
Transactions for “trading purposes”, i.e. transactions seeking to capture
gains arising from short-term changes in securities and other marketrelated indices, are included in “Trading Assets” and “Trading
Liabilities” on the Consolidated Balance Sheets, and profits and losses
from such transactions are shown as “Trading Income” or “Trading
Expenses” in the Consolidated Statement of Income on a trade date basis.
Trading securities and monetary receivables, etc. held for trading
purposes are carried at market value at the end of the fiscal year.
Trading-related financial derivatives such as swaps, forward contracts or
options transactions are valued on the assumption that they were settled
on the balance sheet date.
Transactions made by the consolidated subsidiaries for trading
purposes are principally treated the same as above.

2. Summary of Significant Accounting Policies(Principles of Consolidation)
The consolidated financial statements include the accounts of The Fuji
Bank, Limited (“the Bank”) and 174 of its consolidated subsidiaries (the“Fuji Bank Group”) including The Yasuda Trust and Banking Company
Ltd. (a Japanese corporation), Fuji Securities Co., Ltd. (a Japanese corporation), The Fujigin Credit, Ltd. (a Japanese corporation), Fuyo General
Lease Co., Ltd. (a Japanese corporation), The Fujigin Factor Co., Ltd. (aJapanese corporation), The J.M.C. Credit, Ltd. (a Japanese corporation),
Fuji Bank (Schweiz) AG (a Swiss corporation), The Fuji Bank and Trust
Company (a U.S. corporation), and Fuji America Holdings, Inc. (a U.S.
corporation) and its subsidiaries (including the Heller Group), principally
Heller Financial, Inc. The number of the consolidated subsidiaries was 174
and 182 for the years ended March 31, 2000 and 1999, respectively.
Certain domestic subsidiaries have not been consolidated since thesesubsidiaries are not significant and their results have no material impact
on the consolidated financial statements of the Bank and its consolidated
subsidiaries.

(Securities)
Securities held for purposes other than trading are carried at cost determined by the moving average method.
Securities owned by the consolidated subsidiaries are carried principally at cost or at the lower of cost or market, cost being determined by
the moving average method.
75

CONSOLIDATED

All significant intercompany accounts and transactions have been
eliminated.
The Bank early adopted a new accounting standard for consolidated
financial statements for the year ended March 31, 1999 which became
effective for the year ended after March 31, 1999. The new standard
requires a company to consolidate all subsidiaries of which the company
controls the operations, irrespective of whether or not the company
owns a majority of their shares. Control is considered to exist where thecompany has (a) the power to appoint or remove the majority of theBoard of Directors or an equivalent governing body, and/or (b) the
power to cast the majority of the votes at a meeting of the Board of
Directors or an equivalent governing body.
The financial statements of the consolidated subsidiaries whosebalance sheet dates are principally December 31 are included in the
consolidated financial statements on the basis of their respective fiscal
years after making the appropriate adjustments for any significant
transactions during the periods from their respective balance sheet dates
to the date of the consolidated financial statements.
Assets and liabilities of consolidated subsidiaries are revalued at fairvalue at the respective dates of acquisition.

The accompanying consolidated financial statements of The Fuji Bank,
Limited and its consolidated subsidiaries have been maintained andprepared on the basis of accounting principles and practices generally
accepted in Japan and have been compiled from the consolidated financial
statements filed with the Minister of Finance as required by the Securities
and Exchange Law of Japan. Accounting principles and practices generally
accepted in Japan may differ to some degree from accounting principles andpractices generally accepted in countries and jurisdictions other than Japan.
In addition, the notes to the consolidated financial statements include
information which is not required under accounting principles generally
accepted in Japan but is presented herein as additional information.
Additionally, the Bank prepares its consolidated financial statements
based on the “Ministerial Ordinance Concerning the Terminology, Format
and Method of Preparation for Consolidated Financial Statements” (Ministryof Finance Ordinance No.28, 1976) (“the Consolidated Terminology”) andcategorizes Assets and Liabilities and Income and Expenses according to the“Banking Law Enforcement Regulations” (Ministry of Finance OrdinanceNo.10, 1982). The financial statements for the year ended March 31, 1999
were prepared on the basis of the pre-revision Consolidated Terminology andBanking Law Enforcement Regulations, and the financial statements for theyear ended March 31, 2000 were prepared on the basis of the revised
Consolidated Terminology and Banking Law Enforcement Regulations.
Certain previously reported amounts have been reclassified to conform withthe current period’s presentation.
Certain items presented in the consolidated financial statements filedwith the Minister of Finance have been reclassified for the convenienceof readers outside Japan.
As permitted by the Securities and Exchange Law of Japan, amountsof less than one million yen have been omitted. As a result, the totals inyen shown in the consolidated financial statements do not necessarily
agree with the sum of the individual amounts.
Amounts in U.S. dollars are included solely for the convenience ofreaders outside Japan. The rate of ¥106.15=U.S.$1.00, the rate ofexchange in effect on March 31, 2000, has been used in translation. The
inclusion of such amounts is not intended to imply that Japanese yen
have been or could be readily converted, realized or settled in U.S.
dollars at that rate or any other rate.

Fuji Bank Group

Notes to Consolidated Financial Statements

CONSOLIDATED(Depreciation)

which is independent of the operating sections reviews the results of theself-assessment of assets for all loans based on the internal rules. The
Reserve for Possible Loan Losses is provided based on the results of theself-assessment of assets.
For loans to bankrupt obligors and substantially bankrupt obligors
which are collateralized or guaranteed by a third party, the amounts
deemed uncollectible are charged off against the respective loan balances.
The amount of charge-offs during the years ended March 31, 2000 and1999 totaled ¥1,586,821 million and ¥1,176,863 million, respectively.
Other consolidated subsidiaries provide the amount necessary tocover the loan losses in the Reserves for Possible Loan Losses based on
past experience and their management’s assessment of the loan portfolio.
Due to the amendment of the Banking Law, from this fiscal year
onwards the Reserve for Possible Loan Losses , which was previously
included in Liabilities, is included in Assets. The effect of this change
results in respective decreases in Assets and Liabilities of ¥624,291 million.

(a) Premises and Equipment
Depreciation of premises and equipment owned by the Bank iscomputed as follows:
Buildings ........ principally by the straight-line method, based on therates prescribed in the Corporation Income Tax Law
Equipment ..... declining-balance method, based on the rates
prescribed in the Corporation Income Tax Law
Other .............. as prescribed by the Corporation Income Tax Law
Depreciation of premises and equipment owned by consolidated
subsidiaries is computed principally by the straight-line method over theestimated useful lives of the assets.
(b) Software
The cost of software to be used internally within the Bank and its
domestic consolidated subsidiaries is amortized mainly using thestraight-line method over a useful life of 5 years.
Until the year ended March 31, 1999, the cost of software to be usedinternally within the domestic consolidated trust bank subsidiary has
been charged mainly to income in the year of acquisition. In accordancewith the “Accounting Standard for Accounting for Research andDevelopment Cost” (Business Accounting Deliberation Council,
published March 13, 1998), the cost of software is capitalized and isamortized over its useful life. The effect of this change results in respective increases of ¥110 million in Other Assets and Income before Income
Taxes and Minority Interests.
The cost of software to be used internally within the Bank and its
other consolidated subsidiaries has been included in “Other Assets” forthe year ended March 31, 2000. The Bank and its other subsidiaries
have applied the transitional provisions contained in “Practical
Guidance for Accounting for Research and Development Costs, andSoftware Costs” (JICPA Accounting Committee Report No.12, publishedMarch 31, 1999) and continues to include it in the same balance sheet
item as before.

(Reserve for Devaluation of Investment Securities)
This reserve is provided to cover any future potential losses on investments in subsidiaries, affiliated companies and other companies.

(Reserve for Retirement Allowances and Pension Plans)
The Reserve for Retirement Allowances of the Bank and its domestic
consolidated subsidiaries is calculated based on the amount which
would have been required to be paid if all employees covered by theretirement plan had voluntarily terminated their employment at thebalance sheet date.
In addition, the Bank has a contributory pension plan for eligible
employees. The unamortized balance of prior service cost at March 31,
1999 (based on the most recent available information on the pensionplan) was ¥12,672 million. Prior service cost is being amortized over a
period of 15 years and nine months.
The consolidated subsidiaries principally have funded pension plans
for their employees.

(Land Revaluation Account)(Reserve for Possible Loan Losses)

Land used for the Bank’s business activities was revalued on the basisprescribed by the Law Concerning Land Revaluation (Proclamation
No.34 dated March 31, 1998). The revaluation difference, net ofDeferred Tax Liability on Land Revaluation, is included in Stockholders’Equity as Land Revaluation Account.

In accordance with internally-established standards for write-offs andproviding reserves for possible loan losses, the Bank and its majordomestic subsidiaries accounted for the Reserve for Possible Loan Losses
as follows:
For loans to obligors which are substantially bankrupt (“substantiallybankrupt obligors”) or which are legally bankrupt (“bankrupt obligors”),
a reserve is provided based on the amount remaining after deduction of
the amount expected to be collected from the disposal of collateral
and/or the amount recoverable from guarantees.
For loans to obligors which are not currently legally bankrupt but arelikely to become bankrupt, a reserve is provided based on the amountthe obligor is capable of repaying of the loan amount remaining after
deducting the expected amount recoverable from disposal of collateraland amounts recoverable under guarantees.
In the case of all other loans to such obligors, a reserve is provided on
the basis of the loan failure rates calculated using the amount of actual
loan failures during a fixed period in the past.
Reserve Relating to Loans to Restructuring Countries is provided
based on the prospective loss after consideration of the relevant
country’s political and economic situation, etc.
All loans are assessed by the operating section based on the internal
rules for self-assessment of assets. A Credit Review and Auditing section(Lease Transactions)
Finance lease transactions other than those which are deemed to transfer
the ownership of the leased assets to the lessee are accounted for as
operating leases. However, lease transactions of certain foreign consolidated subsidiaries are accounted for as either capital or operating leases.

(Translation of Foreign Currency Items)
Foreign currency assets and liabilities held by the Bank and its domestic
consolidated trust bank subsidiary are principally translated into yen
at the exchange rates prevailing at the end of the fiscal year. However,for the following (a)investments, under assets, in foreign corporations(Other Securities, excluding those funded in foreign currencies),(b)other items for which it has been determined inappropriate for the
Bank and its domestic consolidated trust bank subsidiary to add to thebalance of foreign currency assets and liabilities at market value, suchitems are translated at the historical exchange rates. For the accounts ofoverseas branches, yen amounts are computed using the exchange rates
prevailing on their balance sheet dates.
Foreign currency assets and liabilities held by other consolidated76

4. Securities

subsidiaries are principally translated into yen at the exchange rates
prevailing at the end of the respective fiscal years.

Securities at March 31, 2000 and 1999 were as follows:(Income Taxes)

Millions of yen
2000
1999

Effective the year ended March 31, 1999, the Bank and its domestic
subsidiaries adopted deferred tax accounting for income taxes inaccordance with the amendment of the Regulation of Consolidated
Financial Statements. Under deferred tax accounting, Deferred Tax
Assets and Liabilities are recorded based on the tax effect of temporary
differences between financial and tax reporting, recognized based on
the effective future tax rate at each fiscal year-end.

Japanese national government bonds ........ ¥1,942,640
Japanese local government bonds ..............
189,554
Japanese corporate bonds andfinancial debentures..................................
542,461
Japanese corporate stocks ........................... 3,636,632
Other securities ........................................... 1,277,297
Total .................................................. ¥7,588,585(Cash Flows)

698,553
3,610,195
941,685¥6,668,759

5. Loans and Bills Discounted(Appropriation of Earned Surplus)
Cash dividends and bonuses to directors and statutory auditors arerecorded in the fiscal year in which the proposed appropriation of
earned surplus is approved by the Board of Directors and/or by thegeneral meeting of the stockholders.

Loans and Bills Discounted at March 31, 2000 and 1999 consisted of
the following:(Net Income (Loss) per Share)

Bills discounted ........................................... ¥ 241,267
Loans on notes and deeds ........................... 26,967,640
Overdrafts.................................................... 8,297,224
Financing receivables, including factoring,leasing and property financing.................
865,457
Total .................................................. ¥36,371,589

Millions of yen
2000
1999

Net income (loss) per share is computed based on the average numberof shares of common stock outstanding during the fiscal year.
Net income per share (diluted) is computed based on the average
number of shares of common stock outstanding during the fiscal year,
after giving effect to the dilutive potential of the shares of common
stock to be issued upon the conversion of convertible bonds andpreferred stock. It was not necessary to disclose net income per share(diluted) for the year ended March 31, 1999 because of a net loss.

757,099¥34,815,843

Millions of yen
2000
1999

Loans to bankrupt borrowers*................... ¥ 125,279
Non-accrual delinquent loans** ................
910,795
Loans past due for 3 months or more*** ..
188,003
Restructured loans****..............................
365,065
Total .................................................. ¥1,589,142

Trading Assets
Trading Assets at March 31, 2000 and 1999 consisted of the following:
Millions of yen
2000
1999

¥ 236,441
995,089
243,657
301,461¥1,776,650* Loans to Bankrupt Borrowers are loans which the Bank and its majordomestic subsidiaries place on non-accrual status in accordance with the
Corporate Tax Law (Government Ordinance No.97, 1965) and nonaccrual loans (excluding loans written-off) which are contractually pastdue for a substantial period as to either principal or interest payments orfor which there is no prospect of repayment.
** Non-accrual Delinquent Loans are loans other than Loans to Bankrupt
Borrowers and loans of which interest payments have been rescheduled inorder to assist the restructuring of the borrowers.
*** Loans Past Due for 3 months or more are those of which interest or
principal payments are past due for 3 months or more but which are notincluded in Loans to Bankrupt Borrowers or Non-accrual Delinquent Loans.
**** Restructured Loans are those in which the Bank and its consolidated
subsidiaries granted concessions, such as reduction of contractual interest
rates or principal amounts and deferral of principal/interest payments,
in order to assist the restructuring of the borrowers. Excluded from
Restructured Loans are Loans to Bankrupt Borrowers, Non-accrual
Delinquent Loans, and Loans Past Due for 3 months or more.

¥1,204,750
1,747
56,143—
1,005,252
662,927¥2,930,820

Trading Liabilities
Trading Liabilities at March 31, 2000 and 1999 consisted of thefollowing:
Millions of yen
2000
1999

Trading securities sold for short sales ....... ¥1,142,380
Derivatives of trading securities.................
3,852
Securities related to trading transactions
sold for short sales.....................................
—
Derivatives of securities related to
trading transactions ..................................
118
Trading-related financial derivatives.........
955,224
Total .................................................. ¥2,101,575

236,043
27,549,165
6,273,535

The balance of “Loans and Bills Discounted” at March 31, 2000 and1999 included the following non-accrual loans.

3. Trading Assets and Trading Liabilities

Trading securities........................................ ¥1,468,978
Derivatives of trading securities.................
5,313
Securities related to trading transactions ..
62,058Derivatives of securities related to
trading transactions ..................................
130
Trading-related financial derivatives.........
833,730
Other trading assets ....................................
403,644
Total .................................................. ¥2,773,856¥¥ 859,755
384

Reference: Non-consolidated basis (the Bank only)
March 31,

4,595

Millions of yen
2000
1999

Loans to bankrupt borrowers..................... ¥ 83,043
Non-accrual delinquent loans.....................
768,583
Loans past due for 3 months or more ........
126,717
Restructured loans ......................................
317,564
Total .................................................. ¥1,295,908

50
959,044¥1,823,830

77¥ 159,589
832,336
171,153
198,588¥1,361,668

CONSOLIDATEDCash and Cash Equivalents consist of cash and deposits with thecentral bank.

¥1,111,524
306,800

Fuji Bank Group

Notes to Consolidated Financial Statements

6. Other Assets

Millions of yen

Liabilities relating to the above assets pledged
as collateral:
Deposits ..............................................................
Call money and bills sold ...................................
Borrowed money................................................

Other Assets at March 31, 2000 and 1999 consisted of the following:
Millions of yen
2000
1999

Accrued income and prepaid expenses...... ¥ 504,740
Securities in custody ................................... 1,089,314
Other ........................................................... 2,561,221
Total .................................................. ¥4,155,277¥ 427,750
1,357,438
2,599,652¥4,384,841

In addition to the above, Deposits with Banks amounting to ¥27,298
million, Securities amounting to ¥1,319,481 million, Loans and Bills
Discounted amounting to ¥517,411 million and Other Assets amounting to ¥126,120 million in the aggregate are pledged as collateral inconnection with foreign exchange settlement and derivative transactions, etc. or as a substitute for margin payments.
Other Assets also include Margin Payments of ¥35,573 million and
Collateral on Borrowed Securities of ¥929,564 million, and Premises
and Equipment includes Guarantee Deposits of ¥114,122 million.
None of the assets pledged as collateral is pledged in connection
with borrowings by non-consolidated subsidiaries, entities or affiliates.

CONSOLIDATED

7. Premises and Equipment
Premises and Equipment at March 31, 2000 and 1999 consisted of thefollowing:
Millions of yen
2000
1999

Land ........................................................... ¥ 339,328
Buildings ......................................................
384,421Equipment ...................................................
270,114
Other ...........................................................
119,393
Subtotal................................................ 1,113,258
Accumulated depreciation..........................
416,173
Net book value .................................... ¥ 697,084

403,095
1,403,552
119,779¥ 359,047
386,275
280,636
133,827
1,159,787
414,170¥ 745,616

Disclosure of the above information was not required as of March 31, 1999.

9. Deposits
Deposits at March 31, 2000 and 1999 consisted of the following:
Millions of yen
2000
1999

8. Assets Pledged

Current deposits .......................................... ¥ 1,618,547
Ordinary deposits........................................ 6,981,711
Deposits at notice ........................................ 1,163,403
Time deposits .............................................. 15,905,585
Other deposits.............................................. 4,320,397
Subtotal................................................ 29,989,646
Negotiable certificates of deposit................ 5,473,578
Total .................................................. ¥35,463,225

Assets pledged as collateral at March 31, 2000 consisted of the following:
Millions of yen

Assets pledged as collateral:
Cash and due from banks ..................................
Securities ............................................................
Loans and bills discounted ................................
Premises and equipment....................................
Other assets ........................................................

¥

128
564,4031,829,539
15,986
48,692¥ 1,617,111
5,536,451
1,344,490
16,791,132
3,989,022
29,278,208
5,368,021¥34,646,230

10. Borrowed Money
Borrowed Money at March 31, 2000 consisted of the following:
Borrowed money:
Bills rediscounted............................................................................................................
Borrowings .....................................................................................................................
Total ...........................................................................................................................

Millions of yen

Average rateDue—
¥2,208,020¥2,208,020

—
3.44%
3.44%

—
From April 2000 –Notes: 1. The average rate is calculated by multiplying the various interest rates by weights, which vary according to the relative size of each balance as a component of
the total borrowed money balance. The interest rates and balances used in the above calculation are those as of each company’s balance sheet date.
2. Borrowings to be repaid within 5 years of the balance sheet date are as follows:
Millions of yen
One yearMore than one year More than two years More than three years More than four years
or less
to two years
to three years
to four years
to five years
Borrowings .......................................................

¥658,228¥326,279¥437,835¥43,734

Disclosure of the above information was not required as of March 31, 1999.
Subordinated borrowed money amounting to ¥900,129 million at March 31, 2000 and ¥1,176,620 million at March 31, 1999 were included .

78¥219,412

11. Commercial Paper
Commercial Paper at March 31, 2000 consisted of the following:
Commercial paper ..............................................................................................................

Millions of yen

Average rateDue

¥1,022,730

2.58%

—

Disclosure of the above information was not required as of March 31, 1999.

12. Bonds and Debentures
Major components of Bonds and Debentures at March 31, 2000 and 1999 are as follows:
Millions of yen
Company

Issue

*1

*2

US$ denominatedconvertible bonds
Subordinated bonds
US$ denominatedconvertible bonds
issued by subsidiaries
Subordinated bonds
issued by subsidiaries
Straight bonds issued bysubsidiaries

1999

Sep. 1985– Oct. 1987
Mar. 1998– Mar. 1999
Nov. 1986– July 1988

—0000

Subordinated bonds
issued by subsidiaries(US$65,280 thousand)(US$81,280 thousand)Mar. 30, 1998

¥ 150,0000000

Nov. 1994– Dec.1999¥ 570,4010000[¥209,632]0 00

Total

Mar. 1993– Mar. 2000

5,6660000

Due

Remarks(Note 1)
(Note 5)———¥ 300,0000000

0.99%

—

—

¥

2.28%

—

Sep. 2001– Sep. 2003

¥ 150,0000000

2.62%

—

—

¥

6.25%

—

Apr. 2000– Dec. 2009

3.17%

—

Apr. 2003 –(US$31,575 thousand)¥ 300,0000000¥

6,9290000(US$5,547,475 thousand)(A$35,500 thousand)*3¥

Interest rate Collateral

9,7980000

36,8140000(US$292,600 thousand)(A$35,500 thousand)¥ 994,9330000¥ 869,2610000(US$3,076,500 thousand)(US$2,076,500 thousand)(CAN$36,710 thousand)(LFRF300,000 thousand)¥2,022,2640000¥1,371,5390000(Note 2)
(Note 3)(Note 5)(Note 6)(Note 2)
(Note 4)(Note 5)(Note 6)(Note 2)
(Note 5)(Note 6)

Notes:1. On December 3, 1999 the Bank redeemed the total amount of US$ denominated convertible bonds due 2000 US$10 thousand (¥2,410 thousand) andUS$ denominated convertible bonds due 2002 US$15,735 thousand (¥2,241,745 thousand) in advance of their redemption dates.
2. *1. indicates the total amount of convertible and subordinated bonds issued by the Bank’s domestic consolidated subsidiaryThe Yasuda Trust and Banking Company Ltd.
*2. indicates the total amount of straight bonds issued by the Bank’s overseas consolidated subsidiaries such as The Fuji Bank and Trust Company,
Fuji International Finance PLC, Fuji International Finance (Australia) Limited, Heller Financial, Inc., YTB Finance (Aruba) A.E.C.
*3. indicates the subordinated bonds issued by the Bank’s overseas consolidated subsidiaries such as The Fuji Bank and Trust Company,
Fuji Finance (Cayman)Limited, Fuji Bank (Luxembourg) S.A, YTB Finance (Aruba)A.E.C. (Amount as of 1999 includes bonds issued byoverseas consolidated subsidiaries excluded during the year ended March 31, 2000)
3. Details of convertible bonds issued by The Yasuda Trust and Banking Company Ltd, the Bank’s domestic consolidated subsidiary, are as follows:
Description
Convertible period
Conversion price
Issuing share
Capitalization
US$ denominated convertible bonds due Sep. 30, 2001.................... Dec. 1, 1986 - Sep. 20, 2001
¥1,119.30
Common stock¥ 560/share
US$ denominated convertible bonds due Sep. 30, 2002.................... Oct. 1, 1987 - Sep. 20, 2002
¥2,163.90
Common stock¥1,082/share
US$ denominated convertible bonds due Sep. 30, 2003.................... Aug. 15, 1988 - Sep. 22, 2003
¥1,814.90
Common stock¥ 908/share
4. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
5. The amount of foreign currency denominated bonds is shown in the original currency in brackets ( ).
6. Amounts to be redeemed within 5 years from the Consolidated Balance Sheet date at March 31, 2000 are as follows:
Millions of yen
One yearMore than one year More than two years More than three years More than four years
or less
to two years
to three years
to four years
to five years
Bonds and debentures ......................................
¥209,632¥164,875¥98,109¥91,323¥35,921Disclosure of the above information was not required as of March 31, 1999.

79

CONSOLIDATEDThe Bank

2000

Fuji Bank Group

Notes to Consolidated Financial Statements

13. Convertible Bonds

The Reserve for Possible Losses on Loans Sold has been provided by the
Bank and its major domestic subsidiaries at March 31, 2000 and 1999
against possible future losses after consideration of the value of the collateral of the loans sold off to the Cooperative Credit Purchasing Company.
The Reserve for Possible Losses on Support of Specific Borrowers
has been provided by the Bank and its major domestic subsidiaries at
March 31, 2000 and 1999 for loans to support the rehabilitation of
specific borrowers. An estimate has been made of the future amount
likely to be required in supporting such borrowers and the necessaryamount is accounted for under the above reserve. This reserve isstipulated under Article 287-2 of the Commercial Code of Japan.

Convertible Bonds at March 31, 2000 and 1999 consisted of the following:

CONSOLIDATED

Millions of yen
2000
1999

The Bank:
2 3/4 percent U.S. dollar convertible
bonds due 2000 ..................................
1 3/4 percent U.S. dollar convertible
bonds due 2002 ..................................
Consolidated subsidiary:
2 3/8 percent U.S. dollar convertible
bonds due 2001 ..................................
1 3/4 percent U.S. dollar convertible
bonds due 2002 ..................................
2 7/8 percent U.S. dollar convertible
bonds due 2003 ..................................
Total ...............................................

¥—¥ 2,854

—

2,811

318

361

3,494

4,691

3,116
¥6,9294,744¥15,464

16. Acceptances and Guarantees
All contingent liabilities arising from acceptances and guarantees areincluded in this account. As a contra-account, “Customers’ Liabilities
for Acceptances and Guarantees” is shown on the assets side of thebalance sheets and represents the Fuji Bank Group’s right of indemnityfrom its customers.
Acceptances and Guarantees at March 31, 2000 and 1999 consistedof the following:

The Convertible Bonds, unless previously redeemed, are convertible
into shares of common stock of the respective issuing companies. The
conversion price of each issue is subject to adjustment in certain cases
including stock splits.
The conversion prices per share were as follows:

Consolidated subsidiary:
2 3/8 percent U.S. dollar
convertible bonds due 2001 .....
1 3/4 percent U.S. dollar
convertible bonds due 2002 .....
2 7/8 percent U.S. dollar
convertible bonds due 2003 .....

Conversion priceper share atMarch 31, 2000

Fixed
exchange rate

¥1,119.30¥157.00=U.S.$1.00¥2,163.90¥144.65=U.S.$1.00¥1,814.90¥134.50=U.S.$1.00

Millions of yen
2000
1999

Acceptances ................................................. ¥ 15,115
Letters of credit ...........................................
171,616
Guarantees................................................... 1,834,177
Total .................................................. ¥2,020,909

Pursuant to the Law Concerning Land Revaluation, land used for the
Bank’s business activities was revalued on March 31, 1998. The excessof the revalued carrying amount over the book value before revaluation, which was included in Liabilities at March 31, 1998, is includedin Stockholders’ Equity in the amount net of tax effect from March 31,
1999 due to the revision in the Law enacted on March 31, 1999. The
corresponding income tax is included in Liabilities from March 31,
1999 as Deferred Tax Liability for Land Revaluation. This resulted in adecrease in Total Liabilities of ¥131,767 million and an increase in
Total Stockholders’ Equity of ¥131,767 million at March 31, 1999.
The land prices for revaluation were determined based on the prices
in the official notice published by the Commissioner of the National
Tax Agency in accordance with Article 2, Paragraph 4 of the
Enforcement Ordinance Concerning Land Revaluation, after making
reasonable adjustments.
The difference between the revalued carrying amount and the fair valueof the land revalued in accordance with Article 10 of the Law was ¥36,664
million at March 31, 2000 and ¥17,185 million at March 31, 1999.

Other Liabilities at March 31, 2000 and 1999 consisted of the following:
Millions of yen
2000
1999

¥ 628,755
26,913
1,333,366
2,680,705¥4,669,740

15. Other Reserves
Other Reserves at March 31, 2000 and 1999 consisted of the following:
Millions of yen
2000
1999

Reserve for possible losses on loans sold..... ¥119,766
Reserve for possible losses on support ofspecific borrowers ....................................... 56,453
Reserve for financial futurestransaction liabilities...................................
68
Reserve for securities transaction liabilities...
14
Total .................................................... ¥176,303

22,020190,858
2,179,567¥2,392,446

17. Land Revaluation Account

14. Other Liabilities

Accrued expenses and unearned income... ¥ 564,269
Accrued income taxes .................................
24,118
Securities borrowed ....................................
215,709
Other ........................................................... 3,210,118
Total .................................................. ¥4,014,216¥¥140,399
49,073

18. Common Stock, Preferred Stock and Capital Surplus
The Bank’s authorized number of shares of capital stock (common
stock and preferred stock) as of March 31, 2000 was as follows:(a) 10 billion shares of common stock, voting and ranking equally withany other class of shares (except for preferred stock) with respect
to the payment of dividends and distributions on the liquidation or63
6¥189,542

80

winding-up of the Bank. The dividend rate and redemption andconversion rights, if any on such shares, are to be determined by
the Board of Directors of the Bank prior to issuance.
(b) Class I 82,411,000 shares, Class II 500,000,000 shares, Class III
500,000,000 shares and Class IV 500,000,000 shares of preferredstock, non-voting and ranking prior to shares of common stockwith respect to the payment of dividends and distributions on theliquidation or winding-up of the Bank. The dividend rate andredemption and conversion rights, if any on such shares, are to be
determined by the Board of Directors of the Bank prior to issuance.
The information relating to Common Stock, Preferred Stock andCapital Surplus is as follows:
Millions of yen
2000
1999

Common Stock:
Balance at beginning of year................
Increase:
Issuance.............................................
Conversion of convertible
preferred stock................................
Conversion of convertible bonds.....
Balance at end of year ..............................
(Shares issued and outstanding at end of year)
Preferred Stock:
Balance at beginning of year................
Increase:
Issuance.............................................
Decrease:
Conversion of convertible
preferred stock ...............................
Balance at end of year ..............................
(Shares issued and outstanding at end of year)
Capital Surplus:
Balance at beginning of year................
Increase:
Issuance of common stock ...............
Issuance of preferred stock ..............
Conversion of convertible bonds.....
Balance at end of year ..............................

¥559,216¥424,087—

108,746—
1,710¥560,927(3,443,892

26,383—¥559,216(3,441,618

thousand shares)

thousand shares)¥478,616¥105,000—

400,000—¥478,616(452,411

26,383¥478,616(452,411

thousand shares)

thousand shares)¥928,196¥419,954——
1,710¥929,907

108,242400,000—¥928,196

19. Interest Income
The components of Interest Income for the years ended March 31,
2000 and 1999 were as follows:
Millions of yen
2000
1999

Interest on loans and discounts.................. ¥ 956,306
Interest and dividends on securities ..........
130,014
Interest on call loans and bills purchased..
137,789
Interest on deposits with banks .................
34,325
Other interest income .................................
376,891
Total .................................................. ¥1,635,326¥1,005,456
108,194
180,468
61,708351,522¥1,707,350

Preferred stock issued and outstanding at March 31, 2000 and 1999
consisted of the following:
Millions of yen
2000
1999

First Series Class I Preferred Stock .........
Second Series Class IV Preferred Stock...
Third Series Class III Preferred Stock.....
Fourth Series Class III Preferred Stock ...
Total ...............................................

¥ 78,616
150,000
125,000
125,000¥478,616

20. Trading Income
The components of Trading Income for the years ended March 31,
2000 and 1999 were as follows:¥ 78,616
150,000
125,000
125,000¥478,616

Millions of yen
2000
1999

Revenue from trading securities andderivatives ..............................................
Revenue from securities and derivatives
related to trading transactions...............
Revenue from trading-related financial
derivatives transactions .........................
Other trading revenue..............................
Total ...............................................

First Series Class I Preferred Stock was issued on December 28, 1996 at
an issue price of ¥3,000 per share, and Second Series Class IV, Third
Series Class III and Fourth Series Class III Preferred Stock were allissued on March 31, 1999 at an issue price of ¥2,000 per share.

81¥14,546¥17,881—

6,549

27,807969¥43,323

8,735
4,975
¥38,142

CONSOLIDATEDAnnual dividends per share on First Series Class I, Second Series
Class IV, Third Series Class III and Fourth Series Class III Preferred
Stock are payable at ¥7.50 through February 1, 2002, ¥42.00, ¥11.00
through February 1, 2011, and ¥8.00 through February 1, 2009,
respectively, exclusive of interim dividends per share of ¥3.75, ¥21.00,¥5.50 and ¥4.00, respectively.
First Series Class I, Third Series Class III and Fourth Series Class III
Preferred Stock are convertible into shares of common stock at theoption of the shareholders from July 1, 1997 to January 31, 2002, from
October 1, 2006 to January 31, 2011 and from October 1, 2004 to
January 31, 2009, respectively, at conversion prices determined basedon the market price of the Bank’s common stock every October 1
applied subsequent to the first dates of the respective convertible
periods, subject to floor prices of 65 percent, 80 percent and 70 percent,respectively, of the initial conversion prices. The initial conversion
price of First Series Class I Preferred Stock is ¥2,002, and those of
Third Series Class III and Fourth Series Class III Preferred Stock aredetermined by multiplying the market price of the Bank’s common
stock at October 1, 2006 and 2004 by 1.025 and are subject to floor
prices of ¥420 and ¥540, respectively. The conversion prices are
subject to a certain adjustment as to the issuance of new shares ofcommon stock at the price below the then current market price of theBank’s common stock, stock splits, etc.
The Bank may, at its option, redeem Second Series Class IV, Third
Series Class III and Fourth Series Class III Preferred Stock at ¥2,000
plus accrued dividends per share from April 1, 2004 and thereafter,from April 1, 2004 to September 30, 2006 and from April 1, 2004 to
September 30, 2004, respectively.

Fuji Bank Group

Notes to Consolidated Financial Statements

21. Other Operating Income and Other Income

24. Other Operating Expenses and Other Expenses

Other Operating Income
The components of Other Operating Income for the years ended March
31, 2000 and 1999 were as follows:

Other Operating Expenses
The components of Other Operating Expenses for the years ended
March 31, 2000 and 1999 were as follows:
Millions of yen
2000
1999

Millions of yen
2000
1999

CONSOLIDATEDGains on foreign exchange transactions...
Gains on sales of bonds ............................
Gains on redemption of bonds.................
Other ........................................................
Total ...............................................

¥ 29,114
121,8312,633
338,534¥492,113

Losses on sales of bonds...........................
Losses on redemption of bonds................
Losses on devaluation of bonds ...............
Other ........................................................
Total ...............................................

¥ 18,893
151,612
978343,911¥515,395

Millions of yen
2000
1999

Millions of yen
2000
1999

¥528,841
1,069¥105,650
1,576

1,884
10,87780,6481,330—
124,068¥666,741

995
25,471¥215,673

Provision for possible loan losses................... ¥136,870
Losses on write-offs of loans ...................... 204,653
Provision for possible losses on loans sold ..
26,741
Provision for possible losses
on support of specific borrowers..............
34,140
Provision for devaluation of
investment securities ................................
12,443Losses on sales of stocks and other securities ..
25,974Losses on devaluation of stocks andother securities ..........................................
38,839Losses on money held in trust....................
5,926
Losses on disposal of premises andequipment ..................................................
25,873Losses on sales of loans to Cooperative
Credit Purchase Company ........................
25,900
Other ........................................................... 219,458
Total .................................................. ¥756,821“Other” in “Other Income” for the year ended March 31, 2000 includes
a gain of ¥66,914 million from sales of pension, asset management andadministration business by the Bank’s domestic consolidated trust banksubsidiary which took place on October 1, 1999.

¥ 285,732
490,179
90,901——75,254
121,678
1,887
6,653
34,021
184,596¥1,290,904“Other” in “Other Expenses” for the year ended March 31, 2000
includes losses on trust assets with indemnity of ¥54,290 million by the
Bank’s domestic consolidated trust bank subsidiary.
“Other” in “Other Expenses” for the year ended March 31, 1999 includes
losses of ¥5,676 million incurred from supporting certain borrowers. It
also includes a loss of ¥150,985 million derived from the write-down of
the Bank’s securities portfolio whose fair value, it was determined, would
not recover in the short-term. The purpose of the write-down was toremove promptly the unrealized loss on the Bank’s securities portfolio
and to implement a change in its policy of cross shareholdings withcertain of its major customers in accordance with the Bank’s “Plan for
Ensuring Sound Management” prepared pursuant to Article 5 of the Law
Concerning Emergency Measures to Stabilize Financial Function.

22. Interest Expenses
The components of Interest Expenses for the years ended March 31,
2000 and 1999 were as follows:
Millions of yen
2000
1999

Interest on deposits ...................................... ¥ 245,074
Interest on negotiable certificates of deposit..
12,678Interest on call money and bills sold ...........
156,528
Interest on commercial paper ......................
20,899Interest on borrowed money........................
61,847
Interest on bonds and debentures ...............
84,815Interest on convertible bonds ......................
234
Other interest expenses................................
466,880
Total ................................................... ¥1,048,959¥69,0293,458
287
291,674¥364,449

Other Expenses
The components of Other Expenses for the years ended March 31,
2000 and 1999 were as follows:

Other Income
The components of Other Income for the years ended March 31, 2000
and 1999 were as follows:

Gains on sales of stocks andother securities .......................................
Gains on money held in trust ..................
Gains on disposal of premises andequipment ...............................................
Collection of written-off claims ...............
Reversal of reserve for possible losses on
trading account securities ......................
Other ........................................................
Total ...............................................

¥102,829
6,791
1,464
296,196¥407,281¥ 356,852
39,218215,015
19,701
75,27078,345
122419,532¥1,204,059

25. Income Tax Expenses
Income Tax Expenses in Japan applicable to the Bank and its domestic
subsidiaries for the years ended March 31, 2000 and 1999 comprised
corporation tax, inhabitants’ taxes and enterprise tax at the approximate rates indicated below:

23. Trading Expenses
The components of Trading Expenses for the years ended March 31,
2000 and 1999 were as follows:
Millions of yen
2000
1999

Expenses on securities and derivatives
related to trading transactions..................
Total ..................................................

¥3,364¥3,364

Corporation tax ...........................................
Inhabitants’ taxes ........................................
Enterprise tax ..............................................

—
—
82

2000

1999

30.0%
6.1%
9.6%
45.7%

34.5%
7.1%
11.5%
53.1%

Decreased assets and liabilities resulting from Yasuda Trust andBanking Co., Ltd.’s transfer of asset management and administration
business to Dai-Ichi Kangyo Fuji Trust and Banking Co., Ltd. are as
follows:

2000

Statutory tax rate.........................................
(Adjusted)
Effect of tax rate change .............................
Tax effect on unrealized profits .................
Increase / Decrease in valuation allowance
Others ..........................................................
Effective tax rate .........................................

41.7%
19.5%
7.9%
3.0%
2.3%
74.4%

Millions of yen

Securities..........................................................
Premises and equipment.................................
Total ......................................................

(c) Details of significant non-cash transactions are as follows:

Unlike other Income Tax Expenses, enterprise tax is deductible for tax
purposes when paid. Accordingly, the effective statutory income tax
rates were approximately 41.7 percent and 47.6 percent for the years
ended March 31, 2000 and 1999, respectively.
The consolidated foreign subsidiaries are subject to the Income Tax
Expenses of the respective countries in which they operate.

Millions of yen

1,710¥3,421

Disclosure of the above information was not required as of March 31, 1999.

In March 1998, the Business Accounting Deliberation Council of Japanissued new accounting standards for statements of cash flows, effective
April 1, 1999. Prior to the issuance of this standard, no accounting
standard existed for the preparation of statements of cash flows in Japan
and, accordingly, the Bank had prepared its statements of cash flows inaccordance with the Guidelines for Statements of Cash Flows issued inJune 1991. The Bank adopted the new accounting standards effective
April 1, 1999 and the accompanying consolidated statement of cash
flows for the year ended March 31, 1999 was restated in order to ensure
conformity between the prior year’s and the current year’s presentation.

(a) The reconciliation of Cash and Due from Banks in the Consolidated
Balance Sheet with Cash and Cash Equivalents at March 31, 2000 is asfollows:
Millions of yen¥2,741,992(1,533,152)(31,935)(3,288)¥1,173,615(b) Assets and liabilities relating to Heller Financial, Inc.’s acquisitionof HealthCare Financial Partners, Inc. are principally as follows:

27. Lease Transactions

Millions of yen

Finance Leases

Assets ..............................................................
¥27,508of which Loans and bills discounted ¥22,210 million
Liabilities ........................................................
(1,333)
Consolidation difference ................................
24,031
Issuance of stock for the acquisition ..............
(21,878)
Acquisition price of securities .......................
28,328Cash and cash equivalents ..............................
(817)
Net: Expenditure related to the acquisition...
¥27,510Lessees:
The acquisition cost equivalent, accumulated depreciation equivalentand book value equivalent as of March 31, 2000 and 1999 relating tofinance lease transactions accounted for as operating leases are
summarized as follows:
March 31, 2000

Millions of yen
Equipment
Other
Total

Acquisition cost equivalent...................... ¥3,021
Accumulated depreciation equivalent.....
503
Book value equivalent .............................. ¥2,517

Assets and liabilities of Fuji Bank Canada, excluded from theConsolidated Financial Statements by disposal of the Bank’s total
shareholding in the company are principally as follows:
Millions of yen

March 31, 1999

Assets ..............................................................
¥52,860of which Loans and bills discounted ¥43,568 million
Liabilities ........................................................
(47,060)of which Deposits ¥39,861 million
Loss on sales of stock ......................................
(1,277)
Disposal value..................................................
4,522
Cash and cash equivalents ..............................
(0)
Net: Proceeds from sales of stock ...................
¥4,522

¥218
176
¥ 42

¥3,239679¥2,559Millions of yen
Equipment
Other
Total

Acquisition cost equivalent...................... ¥ 348
Accumulated depreciation equivalent.....
279
Book value equivalent .............................. ¥ 68

¥ 14
9
¥ 4

¥ 362
288
¥ 73

Lease expense relating to finance leases accounted for as operatingleases amounted to ¥226 million and ¥29 million for the years ended
March 31, 2000 and 1999, respectively. The related depreciationequivalent amounted to ¥226 million and ¥29 million for the years
ended March 31, 2000 and 1999, respectively. Depreciation is based on
the straight-line method over the lease term of the leased assets.

Decreased assets and liabilities resulting from Heller Financial Inc.’stransfer of factoring business are principally as follows:
Millions of yen

Loans and bills discounted .............................
Other liabilities................................................

¥1,710¥93,286
59,08483

CONSOLIDATED

Increase in common stock due toconversion of convertible bonds...................
Increase in capital surplus due toconversion of convertible bonds...................
Decrease in convertible bonds balance due
to conversion of convertible bonds ..............

26. Cash Flows

Cash and due from banks ..............................
Deposits with other commercial banks..........
Negotiable certificates of deposit....................
Other ...............................................................
Cash and cash equivalents ..............................

¥ 534
2,130
¥2,664

Fuji Bank Group

Notes to Consolidated Financial Statements

28. Deferred Taxes

Future lease payments subsequent to March 31, 2000 and 1999 forfinance leases accounted for as operating leases (including the interest
portion thereon) are summarized as follows:

Major components of Deferred Tax Assets and Liabilities as of March
31, 2000 and 1999 are summarized as follows:

Millions of yen
2000
1999

Due in one year or less ...............................
Due after one year.......................................
Total ..................................................

¥ 444
2,115
¥2,559Millions of yen
2000
1999

¥31
42
¥73

Deferred tax assets:
Reserve for possible loan losses...........
Tax loss carryforwards ........................
Other .....................................................
Subtotal .............................................
Valuation allowance.................................
Total: Deferred tax assets ........................

CONSOLIDATED

Lessors:
The acquisition cost, accumulated depreciation, book value, and futurelease payments to be received subsequent to March 31, 2000 and 1999
relating to finance lease transactions accounted for as operating leases
at March 31, 2000 and 1999 are summarized as follows:
March 31, 2000

Deferred tax liabilities:
Lease financing .....................................
Undistributed retained earnings inconsolidated subsidiaries....................
Other .....................................................
Net: Deferred tax assets ...........................

Millions of yen
Equipment Other
Total

Acquisition cost .................................... ¥994,732 ¥1,857 ¥996,590
Accumulated depreciation ................... 507,093 1,327 508,420
Book value ............................................. ¥487,639 ¥ 529 ¥488,169

March 31, 1999

¥887,658
444,263¥443,395

Lease income relating to finance leases accounted for as operatingleases amounted to ¥204,226 million and ¥202,084 million for theyears ended March 31, 2000 and 1999, respectively. The related
depreciation amounted to ¥175,275 million and ¥170,001 million forthe years ended March 31, 2000 and 1999, respectively. Interest
income equivalent amounted to ¥17,503 million and ¥15,832 million
for the years ended March 31, 2000 and 1999, respectively. Interest
income equivalent is computed based on the allocation of the excess
amount of total lease income over the acquisition cost of leased assets,using the interest method.
Future lease payments to be received subsequent to March 31, 2000
and 1999 for finance leases accounted for as operating leases (including
the interest portion thereon) are summarized as follows:
Millions of yen
2000
1999

Due in one year or less.............................
Due after one year ....................................
Total ...............................................

¥178,861
334,985¥513,847¥165,083
299,065¥464,149

Of the above future lease payments to be received, ¥209,395 million ispledged.
Operating Leases
The future lease payments subsequent to March 31, 2000 and 1999 for
operating lease transactions are summarized as follows:
Millions of yen
2000
1999

Due in one year or less.............................
Due after one year ....................................
Total ...............................................

¥ 7,091
41,497¥48,589¥ 482,021
366,462
362,999
1,211,483(130,442)
1,081,040(10,202)(7,035)(326)(94)¥ 869,812(3,674)(1,074)¥1,069,255

The statutory tax rates used to calculate deferred tax assets and liabilities for the years ended March 31, 2000 and 1999 were 38.7% and41.7%, respectively.
On March 30, 2000 the “Ordinance regarding the imposition ofenterprise taxes through external standards taxation on banks inTokyo” was passed by the Tokyo Municipal Assembly and was madelaw. With this legislation, the standards for applying enterprise tax willbe amended from the fiscal year beginning April 1, 2000. For the year
ended March 31, 2000, income was subject to enterprise tax, but infuture years enterprise tax will be levied on gross profits. This meansthat enterprise tax will not be included in the tax calculations fordeferred tax accounting. Therefore the tax rate applying when calculating the Bank’s Deferred Tax Assets and Deferred Tax Liabilities is
38.7% for the year ended March 31, 2000, as against 41.7% in theprevious year. The tax rate applying when calculating the Bank’s
consolidated trust bank’s deferred assets and deferred tax liabilities is39.6% for the year ended March 31, 2000, as against 41.7% in theprevious year. The effect of this change results in a decrease inDeferred Tax Assets of ¥55,325 million, and an increase in Income Tax
Expenses—Deferred booked for the year ended March 31, 2000 of¥55,325 million, as well as an increase in Net Income of ¥50,897
million. There is also a decrease in Deferred Tax Liability for Land
Revaluation of ¥6,624 million, and an increase in the Land Revaluation
Account of ¥6,624 million at March 31, 2000.
On June 9, 2000 the “Ordinance regarding the imposition of enterprise taxes through external standards taxation on banks in Osaka”
was passed by the Osaka Municipal Assembly and was made law. With
this legislation, the standards for applying enterprise tax will beamended from the fiscal year beginning April 1, 2001. Therefore thetax rate applying when calculating the Bank’s Deferred Tax Assets andDeferred Tax Liabilities will be 38.1%, as against 38.7% in the current
year. The tax rate applying when calculating the Bank’s consolidated
trust bank’s deferred tax assets and deferred tax liabilities will be
39.1%, as against 39.6% in the current year. The effect of this change
results in a decrease in Deferred Tax Assets of ¥ 11,451 million, andDeferred Tax Liability for Land Revaluation of ¥ 1,324 million, respectively. The actual effect of the change in tax rates will be clarified when
the amount is calculated based on the differences prevalent on March
31, 2001. Therefore the amounts given above are subject to revision.

Millions of yen
Equipment Other
Total

Acquisition cost .................................... ¥886,309 ¥1,349
Accumulated depreciation ................... 443,502
761
Book value ............................................. ¥442,807 ¥ 587¥ 492,207
243,575
275,270
1,011,052(130,616)
880,436¥ 7,144
48,213¥55,35784

29. Segment Information(a) Business Segment Information
Certain consolidated subsidiaries are engaged in securities, trust, leasing, and other business in addition to commercial banking business. As those
activities are not deemed material, business segment information has not been disclosed.

(b) Geographic Segment Information
Total adjusted income represents total income excluding “Gains on Disposal of Premises and Equipment,” “Collection of Written-off Claims,” reversals of “Other Reserves” and gains on sales of pension, asset management and administration business in “Other.”
Total adjusted expenses represent total expenses excluding “Losses on Disposal of Premises and Equipment” and transfers to “Other Reserves.”
The following tables represent the geographic segment information on the Total Adjusted Income, Ordinary Profit (Loss) and Assets of the Bank’shead office, branches and subsidiaries according to the country of domicile of the respective entities.
Millions of yen
Japan

I. Total adjusted income:Customers................................... ¥ 2,239,508
Intersegment ..............................
177,326
Total ...........................................
2,416,835
Total adjusted expenses ................
2,278,467
Ordinary profit .............................. ¥ 138,368
II. Assets............................................. ¥53,470,843

The Americas

EuropeCombined
Total

Intercompany
Transactions¥ 483,881
50,916
534,798
470,556¥ 64,241¥7,297,796¥ 205,882
142,806
348,689
325,871¥ 22,818¥3,638,520

88,242
28,429116,672
110,959¥
5,712¥2,077,957¥ 3,017,516
399,479
3,416,995
3,185,854¥ 231,140¥66,485,118¥— ¥ 3,017,516(399,479)—(399,479)
3,017,516(397,568)
2,788,286¥(1,910) ¥ 229,229¥(8,238,386) ¥58,246,731

The Americas

Asia and
Oceania

EuropeCombined
Total

Intercompany
Transactions¥ 649,394
64,911
714,306
687,206¥ 27,100¥8,194,643¥ 233,265
116,184
349,449
375,506¥ (26,056)¥4,876,576¥ 130,613
71,390202,003214,577¥ (12,573)¥2,438,453¥

Consolidated
Total

Millions of yen
Year ended March 31, 1999

Japan

I. Total adjusted income:Customers................................... ¥ 1,557,193
Intersegment ..............................
329,050
Total ...........................................
1,886,244
Total adjusted expenses ................
2,483,542
Ordinary profit (loss) .................... ¥ (597,298)
II. Assets............................................. ¥53,637,767

Millions of yen(i) Total adjusted income fromforeign operations ....................................
(ii) Consolidated total adjusted income .........
(i)/(ii) ..............................................................

¥ 778,007¥3,017,516
25.8%

Year ended March 31, 1999(i) Total adjusted income frominternational operations ..........................
(ii) Consolidated total adjusted income .........
(i)/(ii) ..............................................................

¥ 2,570,467 ¥— ¥ 2,570,467
581,537(581,537)—
3,152,004(581,537)
2,570,467
3,760,833(516,478)
3,244,355¥ (608,828) ¥(65,059) ¥ (673,888)¥69,147,442 ¥(11,202,364) ¥57,945,077“Total adjusted income from foreign operations” means the total
income relating to transactions at overseas branches by the parent
company, and transactions of overseas consolidated subsidiaries.
(However, total income between consolidated companies is excluded).
“Total adjusted income from international operations” represents thesum of total adjusted income generated from the international operations of the Bank and its domestic consolidated subsidiaries and total
adjusted income of its consolidated foreign subsidiaries after excluding
all intercompany transactions within the Fuji Bank Group.

(c) Total Adjusted Income from Foreign and International
Operations
Year ended March 31, 2000

Consolidated
Total¥1,329,959¥2,570,467
51.7%

For the preceding years, “Total adjusted income from international
operations” has been recorded instead of overseas sales for general
corporations. However, for the year ended March 31, 2000, “Total
adjusted income from foreign operations” is to be used to reflect moreaccurately the nature of the various foreign transactions.

85

CONSOLIDATEDYear ended March 31, 2000

Asia and
Oceania

Fuji Bank Group

Notes to Consolidated Financial Statements

CONSOLIDATED

30. Subsequent Events(b) Merger Structure, etc.
1. Merger date: October 1, 2000
2. Merger structure: The fundamental philosophy underlying thismerger is that it is a consolidation of equals. However, due toprocedural and other related issues, the IBJ Securities Co., Ltd. willbe the surviving legal entity.
3. Merger ratio: Fuji Securities Co., Ltd., The DKB Securities Co.,
Ltd. and The IBJ Securities Co., Ltd. will be merged at a merger
ratio of 0.87:1.12:1.00, with The IBJ Securities Co., Ltd. being thesurviving entity.
(c) Change of Company Name
The company name of The IBJ Securities Co., Ltd. will be changed
to Mizuho Securities Co., Ltd.
(d) Capital¥150.2 billion
The percentage held in the new company by each of the 3 banks is
as follows:
The Bank 23.17%, DKB 33.55% and IBJ 43.28%(e) Approval
This merger is subject to approval by the appropriate regulatory
authorities.

At a general meeting of stockholders held on June 28, 2000 year-end
dividends of ¥3.50 per share of common stock totalling ¥12,053
million, and of ¥3.75 per share of First Series Class I preferred stock
totalling ¥196 million, ¥21.00 per share of Second Series Class IV
preferred stock totalling ¥3,150 million, ¥5.50 per share of Third Series
Class III preferred stock totalling ¥687 million and ¥4.00 per share of
Fourth Series Class III preferred stock totalling ¥500 million wereapproved in respect of the year ended March 31, 2000. In accordancewith Japanese accounting practice, these dividends were not accrued
and have not been reflected in the consolidated financial statements forthe year ended March 31, 2000.
On May 25, 2000 the Fuji Securities Co., Ltd., the Bank’s subsidiarycompany, the DKB Securities Co., Ltd. and the IBJ Securities Co., Ltd.
concluded a merger agreement.
The outline of the merger is as follows:(a) Purpose of the Merger
This merger was carried out as part of the comprehensive consolidation agreement signed in December 1999 between the Bank,The Dai-Ichi Kangyo Bank, Limited (“DKB”) and The Industrial
Bank of Japan, Limited (“IBJ”).

31. Market Value Information
Market Prices of Marketable Securities
Millions of yen
March 31, 2000

Listed Securities:
Bonds ........................................................................................
Stocks ........................................................................................
Others .......................................................................................
Total .....................................................................................

Book
value

Marketvalue

Net

Unrealized gain (loss)
Gross gain
Gross loss

¥ 427,171
3,410,663
380,374¥4,218,209¥ 431,895
4,026,006
379,036¥4,836,937¥ 4,723
615,342(1,337)¥618,728¥ 17,348
1,067,009
5,508¥1,089,867¥ 12,625
451,666
6,846¥471,138

Notes: 1. The securities in the above table (including Japanese government bonds, Japanese local bonds and Japanese corporate bonds) are all listed. The market values oflisted securities are determined mainly according to the closing price at term-end on the Tokyo Stock Exchange, or prices calculated using indicated yields
announced by the Japan Securities Dealers Association. The market values of others are determined mainly according to the closing price at term-end on theTokyo Stock Exchange.
2. The table below covers unlisted securities for which it is possible to estimate a market value.
Millions of yen
March 31, 2000
Unlisted Securities:
Bonds .......................................................................................
Stocks .......................................................................................
Others ......................................................................................
Total ...................................................................................

Book
value

Marketvalue

Net

Unrealized gain (loss)
Gross gain

Gross loss

¥1,920,950
55,120307,822¥2,283,892¥1,911,258
106,316
302,307¥2,319,883¥ (9,691)
51,196(5,514)¥35,990¥ 2,989
57,208566¥60,764¥12,680
6,011
6,081¥24,774

Market values of unlisted securities are determined as follows:
Securities traded over-the-counter: transaction prices announced by the Japan Securities Dealers Association
Publicly offered bond: prices calculated using indicated yield announced by the Japan Securities Dealers Association
Securities of investment trust: market prices announced by authorized fund management companies
Securities traded over-the-counter in America: transaction prices on the NASDAQ announced by the National Association of Securities Dealers
3. The book values of securities not included in the market value information provided above are as follows:
March 31, 2000
Millions of yen
Bonds ...........................................................................................
Stocks ...........................................................................................
Others ..........................................................................................

¥327,672
143,987
614,823

4. Trading securities and trading account securities are evaluated according to the market price, and the unrealized gain or loss is recorded on the Consolidated
Statement of Income. Therefore profit and loss information is omitted from the above table.
86Interest Rate-Related Transactions

Millions of yen
Contract value
Term overTotal
one yearMarketvalue

Unrealized
gain (loss)

ListedInterest Rate Futures:
Sell .....................................................................................................
Buy .....................................................................................................
Interest Rate Option:
Sell Call .............................................................................................
Put ..............................................................................................
Buy Call .............................................................................................
Put ..............................................................................................
Over-the-Counter
FRA:
Sell .....................................................................................................
Buy .....................................................................................................
Interest Rate Swap:
Receive Fixed Pay Floating ................................................................
Receive Floating Pay Fixed ................................................................
Receive Floating Pay Floating ............................................................
Receive Fixed Pay Fixed ....................................................................
Interest Rate Option:
Sell Call ..............................................................................................
Put ..............................................................................................
Buy Call ..............................................................................................
Put ..............................................................................................
Others:Sell .....................................................................................................
Buy .....................................................................................................
Total ............................................................................................

—
—

¥....
....

¥ 19,298
74,817¥ 3,229
(8)

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

6,927
6,927

—
—

....
....

0
(0)

0
(0)

52,726,523
57,178,074
775,858
68,64936,287,297
35,686,108
189,779
33,685

....
....
....
....

209,763(284,206)
(503)
(365)

209,763(284,206)
(503)
(365)

2,500
3,000
—
6,000

2,500
—
—
—

....
....
....
....

(21)
(10)
—
3

(21)
(10)
—
3

320,088
320,725....

287,430
269,261
....

78
8
....

(2,623)2,544....

(2,544)2,536¥ (72,130)¥

22,52874,826¥

Notes: 1. Calculation of market value.
Market values of listed transactions are calculated using the closing prices on the Tokyo International Financial Futures Exchange, etc.
Market values of over-the-counter transactions are calculated using the discounted present value or an option pricing model, etc.
2. Market values and unrealized gain or loss include transactions made for the purpose of hedging on-balance sheet transactions.
3. Market values of interest rate swaps and unrealized gain or loss include accrued interest recorded on the Consolidated Statement of Income.
(March 31, 2000: ¥130,566 million)
4. Others denotes cap-floor transactions.
5. Derivative transactions included in trading account transactions are marked to market and the unrealized gain or loss calculated isrecorded on the Consolidated Statement of Income. Therefore it is not included in the above table.
The contract values etc. of derivative transactions included in trading account transactions are as follows :Millions of yen
Contract
OptionMarketMarch 31, 2000
value
premium
value
ListedInterest Rate Futures:
Sell ..................................................................................................
¥ 13,285,670¥....
¥13,286,498
Buy ..................................................................................................
23,870,222....
23,871,281
Interest Rate Option:
Sell Call............................................................................................
56,30929(5)
Put ............................................................................................
89,98947(63)
Buy Call............................................................................................
31,18732
15
Put ............................................................................................
10,84531
34
Over-the-Counter
FRA:
Sell ..................................................................................................
16,755,644
....
3,510
Buy ..................................................................................................
16,519,247....
(3,904)
Interest Rate Swap:
Receive Fixed Pay Floating .............................................................
181,911,477....
(574,500)
Receive Floating Pay Fixed .............................................................
177,537,408....
404,901
Receive Floating Pay Floating .........................................................
7,092,974
....
1,658
Receive Fixed Pay Fixed ..................................................................
75,087....
3,229
Others:Sell ..................................................................................................
3,636,229
47,608(28,832)
Buy ..................................................................................................
3,248,455
39,926
24,742
Note: Others denotes swaption and cap-floor transactions.
87

CONSOLIDATED

Optionpremium

March 31, 2000

Fuji Bank Group

Notes to Consolidated Financial Statements

Currency-Related Transactions

Millions of yen
Contract value
Term overTotal
one yearMarch 31, 2000

Over-the-Counter
Currency Swap:
US$ .....................................................................................................
STG£.....................................................................................................

CONSOLIDATED–C ...............................................................................................
DM .....................................................................................................
A$ .......................................................................................................
Others ..................................................................................................
Total ...........................................................................................
Foreign Exchange Contract:
Sell .....................................................................................................
Buy .....................................................................................................
Currency Option:
Sell Call ..............................................................................................
Put ..............................................................................................
Buy Call ..............................................................................................
Put ..............................................................................................
Others:Sell .....................................................................................................
Buy .....................................................................................................

¥4,108,831
195,807
98,575422,408
3,103,515¥7,929,138

Marketvalue

Unrealized
gain (loss)¥4,240,814
245,261
81,33674,08729,222
245,384¥4,916,105¥703,088
8,699
—
8,440
14,21338,990¥773,432

¥....
....
....
....
....
....
....

¥81,603
2,630
280
6,711
(170)
(99,890)¥(8,834)¥81,603
2,630
280
6,711
(170)
(99,890)¥(8,834)

187
—

—
—

....
....

180
—

7
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—

—
—

....
....

—
—

—
—

Notes: 1. Market values are calculated using the discounted present value, etc.
2. Market values and unrealized gain or loss include transactions made forthe purpose of hedging on-balance sheet transactions, such as fundsrelated swap transactions.
3. Market values and unrealized gain or loss include accrued interest
recorded on the Consolidated Statement of Income.
(March 31, 2000: ¥(8,724) million)
4. Derivative transactions included in trading account transactions aremarked to market and the unrealized gain or loss calculated is recordedon the Consolidated Statement of Income. Therefore it is not includedin the above table.
The contract values etc. of derivative transactions in trading accounttransactions are as follows :Millions of yen
Contract
MarketMarch 31, 2000
value
value
Over-the-Counter
Currency Swap:
US$ ....................................................
STG£ ..................................................
DM ....................................................
A$ ......................................................
Other .................................................
Total ...................................

Optionpremium

5. In foreign exchange contracts and currency options etc., revaluation iscarried out at the end of March and the unrealized gain or loss is recordedon the Consolidated Statement of Income. Therefore it is not included in
the above table. Those foreign-currency denominated assets and liabilities
entered in the Consolidated Balance Sheet or foreign-currency denominated receivables and payables which have been eliminated in the processof consolidation are also excluded.
The table below indicates the contract value etc. of derivative transactions relating to currency transactions which are revalued.
Millions of yen
Contract
OptionMarch 31, 2000
value
premium
ListedCurrency Futures:
Sell ..................................................
Buy ..................................................
Currency Option:
Sell Call ...........................................
Put ...........................................
Buy Call ...........................................
Put ...........................................
Over-the-Counter
Foreign Exchange Contract:
Sell ..................................................
Buy ..................................................
Currency Option:
Sell Call ...........................................
Put ...........................................
Buy Call ...........................................
Put ...........................................
Others:Sell ..................................................
Buy ..................................................

¥23,984
24,047
58,160(3,888)(47,590)¥54,714

88

¥

378
379

¥

....
....

—
—
—
—

—
—
—
—

6,826,376
6,526,908

....
....

531,027
613,227
519,804
550,211

20,927
12,04821,624
12,059

—
—

....
....

Securities-Related Transactions

Millions of yen
Contract value
Term overTotal
one yearMarch 31, 2000

Marketvalue

Unrealized
gain (loss)¥41,374
7,942

¥—
—

¥....
....

¥46,879
8,143¥(5,505)
201

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—

—
—

....
....

—
—

—
—

—
—
....

—
—
....

—
—
....

—
—
....

—
—
¥(5,303)

Notes: 1. Market values of listed transactions are calculated using the closing prices on the Tokyo Stock Exchange, etc.
Market values of over-the-counter transactions are calculated using the discounted present value or an option pricing model, etc.
2. Derivative transactions included in trading account transactions are marked to market and the unrealized gain or loss calculated is recorded on the Consolidated
Statement of Income. Therefore it is not included in the above table. The contract value etc. of derivative transactions in trading account transactions is asfollows :Millions of yen
Contract
OptionMarketMarch 31, 2000
value
premium
value
ListedSecurities Indexed Futures:
Sell ..................................................................................................
¥4,214¥ ....
¥4,231
Buy ..................................................................................................
3,298
....
3,324
Securities Indexed Option:
Sell Call............................................................................................
———
Put ............................................................................................
———
Buy Call............................................................................................
———
Put ............................................................................................
———
Over-the-Counter
Securities-related Option:
Sell Call............................................................................................
7,011
959
(2,297)
Put ............................................................................................
———
Buy Call............................................................................................
———
Put ............................................................................................
7,011
959
531
Securities-related Swap:
Receive Stock Index, Pay Floating Rate ..........................................
—....
—Pay Stock Index, Receive Floating Rate ..........................................
—....
—
Others:Sell ..................................................................................................
—....
—
Buy ..................................................................................................
—
....
—

89

CONSOLIDATED

ListedSecurities Indexed Futures:
Sell .....................................................................................................
Buy .....................................................................................................
Securities Indexed Option:
Sell Call ..............................................................................................
Put ..............................................................................................
Buy Call ..............................................................................................
Put ..............................................................................................
Over-the-Counter
Securities-related Option:
Sell Call ..............................................................................................
Put ..............................................................................................
Buy Call ..............................................................................................
Put ..............................................................................................
Securities-related Swap:
Receive Stock Index, Pay Floating Rate .............................................
Pay Stock Index, Receive Floating Rate .............................................
Others:Sell .....................................................................................................
Buy .....................................................................................................
Total ............................................................................................

Optionpremium

Fuji Bank Group

Notes to Consolidated Financial Statements

Bond-Related Transactions

Millions of yen
Contract value
Term overTotal
one year

CONSOLIDATEDMarch 31, 2000

ListedBond Futures:
Sell .....................................................................................................
Buy .....................................................................................................
Bond Futures Option:
Sell Call ..............................................................................................
Put ...............................................................................................
Buy Call ..............................................................................................
Put ...............................................................................................
Over-the-Counter
Bond-related Option:
Sell Call ..............................................................................................
Put ...............................................................................................
Buy Call ..............................................................................................
Put ...............................................................................................
Others:Sell .....................................................................................................
Buy .....................................................................................................
Total ............................................................................................

Optionpremium

Marketvalue

Unrealized
gain (loss)¥1,622,235
71,173

¥—
—

¥....
....

¥1,640,421
71,389¥(18,185)
215

10,00010,000
—
—

—
—
—
—

64
78
—
—

85
31
—
—

(21)
46
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
....

—
—
....

....
....
....

—
—
....

—
—
¥(17,944)

Notes: 1. Market values of listed transactions are calculated using the closing prices on the Tokyo Stock Exchange, etc.
Market values of over-the-counter transactions are calculated using an option pricing model, etc.
2. Derivative transactions included in trading account transactions are marked to market and the unrealized gain or loss is recorded on
the Consolidated Statement of Income. Therefore it is not included in the above table. The contract value etc. of derivative transactions
in trading account transactions is as follows :Millions of yen
Contract
OptionMarketMarch 31, 2000
value
premium
value
ListedBond Futures:
Sell ..................................................................................................
¥242,223¥ ....
¥243,528
Buy ..................................................................................................
599,897....
601,066
Bond Futures Option:
Sell Call............................................................................................
428,376
350(624)
Put.............................................................................................
523,928
646(498)
Buy Call............................................................................................
575,852
291
427
Put.............................................................................................
308,955635
459
Over-the-Counter
Bond-related Option:
Sell Call............................................................................................
———
Put.............................................................................................
266,000
784(458)
Buy Call............................................................................................
285,000
1,332
2,416
Put.............................................................................................
245,000
977
774
Others:Sell ..................................................................................................
—....
—
Buy ..................................................................................................
—
....
—

Commodities-Related Transactions
There are no commodities-related transactions.

Credit Derivative Transactions

March 31, 2000

Millions of yen
Contract value
Term overMarketTotal
one yearvalue

Over-the-Counter
Sell ................................................................................................................................
Buy ................................................................................................................................
Total .......................................................................................................................

¥12,000
1,390....

Notes: 1. Market values of over-the-counter transactions are calculated using the discounted present value.
2. “Sell” indicates assumption of credit risk, “Buy” indicates transfer of credit risk.
90¥11,000
1,390
....

¥56
(5)
....

Unrealized
gain (loss)

¥70
(7)
¥63

Report of Independent Certified Public Accountantson the Consolidated Financial Statements

The Board of Directors and Shareholders
The Fuji Bank, Limited

In our opinion, the accompanying consolidated financial statements, expressed in yen, present fairly
the consolidated financial position of The Fuji Bank, Limited and consolidated subsidiaries at March
31, 2000 and 1999, and the consolidated results of their operations and their cash flows for the years
then ended in conformity with accounting principles and practices generally accepted in Japanapplied on a consistent basis.
As described in Note 2 to the consolidated financial statements, The Fuji Bank, Limited andconsolidated subsidiaries have adopted a new accounting standard for consolidation in the preparation of their consolidated financial statements for the year ended March 31, 2000.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect tothe year ended March 31, 2000 are presented solely for convenience. Our audit also included thetranslation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has
been made on the basis described in Note 1 to the consolidated financial statements.
Tokyo, Japan
June 28, 2000

See Note 1 to the consolidated financial statements which explains the basis of preparation of the consolidated financial statements of
The Fuji Bank, Limited and consolidated subsidiaries under Japanese accounting principles and practices.

91

CONSOLIDATED

We have audited the consolidated balance sheets of The Fuji Bank, Limited and consolidated
subsidiaries as of March 31, 2000 and 1999, and the related consolidated statements of income,earned surplus, and cash flows for the years then ended, all expressed in yen. Our audits weremade in accordance with auditing standards, procedures and practices generally accepted andapplied in Japan and, accordingly, included such tests of the accounting records and such otherauditing procedures as we considered necessary in the circumstances.

Fuji Bank Group

Consolidated Data File
Earnings Performance
Average Balances, Interest and Average Interest Rates
Billions of yen
2000
AveragebalanceCONSOLIDATEDYear ended March 31,

Interest

Averagerate

Interest Earning Assets
Loans:
Domestic .................................................................................................................................................................... ¥29,112.1 ¥International ..............................................................................................................................................................
7,317.3
Intercompany Transactions ..................................................................................................................................... (1,675.8)
Total ..................................................................................................................................................................... 34,753.6

619.6
387.4
(50.7)
956.3

2.12%
5.29
....
2.75

Investment Securities:
Domestic ....................................................................................................................................................................
International ..............................................................................................................................................................
Intercompany Transactions .....................................................................................................................................
Total .....................................................................................................................................................................

7,746.9472.1(890.1)
7,328.8

125.0
22.5(17.5)
130.0

1.61
4.77
....
1.77

Call Loans and Bills Purchased:
Domestic ....................................................................................................................................................................
International ..............................................................................................................................................................
Intercompany Transactions .....................................................................................................................................
Total .....................................................................................................................................................................

635.8
955.6
(27.5)
1,563.9

1.7
137.2
(1.1)
137.7

0.27
14.36
....
8.81

Interest Bearing Deposits in Other Banks:
Domestic ....................................................................................................................................................................
International ..............................................................................................................................................................
Intercompany Transactions .....................................................................................................................................
Total .....................................................................................................................................................................

804.6
663.4
(487.6)
980.5

17.9
26.1
(9.7)
34.3

2.23
3.94
....
3.50

Total Interest Earning Assets:
Domestic .................................................................................................................................................................... 38,775.1
988.0International ..............................................................................................................................................................
9,535.7
917.2
Intercompany Transactions ..................................................................................................................................... (3,080.7)(269.9)Total ..................................................................................................................................................................... ¥45,230.1 ¥1,635.3

92

2.54
9.61
....
3.61%

Billions of yen
2000
AveragebalanceYear ended March 31,

Interest

Average
rate

0.65%
3.55
....
0.81

Negotiable Certificates of Deposit:
Domestic ....................................................................................................................................................................
International ..............................................................................................................................................................
Intercompany Transactions .....................................................................................................................................
Total .....................................................................................................................................................................

3,427.6
100.6(56.5)
3,471.7

7.2
5.4
(0.0)
12.6

0.21
5.41
....
0.36

Call Money and Bills Sold:
Domestic ....................................................................................................................................................................
International ..............................................................................................................................................................
Intercompany Transactions .....................................................................................................................................
Total .....................................................................................................................................................................

3,168.3
1,195.9(27.4)
4,336.8

9.5
147.2
(0.2)
156.5

0.30
12.30
....
3.60

Commercial Paper:
Domestic ....................................................................................................................................................................
International ..............................................................................................................................................................
Intercompany Transactions .....................................................................................................................................
Total .....................................................................................................................................................................

692.1
411.7
(10.5)
1,093.4

1.9
18.9
(0.0)
20.8

0.28
4.60
....
1.91

Borrowed Money:
Domestic ....................................................................................................................................................................
International ..............................................................................................................................................................
Intercompany Transactions .....................................................................................................................................
Total .....................................................................................................................................................................

2,430.2
1,866.3(1,599.3)
2,697.2

74.5
38.7(51.5)
61.8

3.06
2.07
....
2.29

Total Interest Bearing Liabilities:
Domestic .................................................................................................................................................................... 39,062.6
613.2
International ..............................................................................................................................................................
6,575.3
688.4
Intercompany Transactions ..................................................................................................................................... (2,259.1)(253.8)
Total ..................................................................................................................................................................... ¥43,378.7 ¥1,047.8

1.56
10.46
....
2.41%

Notes: 1. In principle, “average balance” denotes the average of the daily balances over the period. However the average of the term-end balances isused in the case of certain domestic consolidated subsidiaries which do not specialize in banking business and consolidated foreignsubsidiaries.
2. “Domestic” denotes the Bank (excluding its overseas offices) and its domestic consolidated subsidiaries.
“International” denotes the Bank’s overseas offices and its consolidated subsidiaries which are based abroad (“consolidated foreign subsidiaries”).
3. “Intercompany transactions” denotes amounts arising from intercompany transactions.
4. Non-interest bearing deposits are deducted from total interest earning assets and money held in trust and interest expenses thereon are
deducted from total interest bearing liabilities.
5. Disclosure of the above information was not required as of March 31, 1999.

93

CONSOLIDATEDInterest Bearing Liabilities
Deposits:
Domestic .................................................................................................................................................................... ¥28,829.9 ¥ 188.5
International ..............................................................................................................................................................
1,889.8
67.1
Intercompany Transactions .....................................................................................................................................
(536.5)(10.5)
Total ..................................................................................................................................................................... 30,183.2
245.0

Fuji Bank Group

Consolidated Data File
Breakdown of Fee & Commission Income
Billions of yen

CONSOLIDATEDYear ended March 31,

2000

IncomeDeposit and Loan-related:
Domestic ............................................................................................................................................................................................
International ......................................................................................................................................................................................
Intercompany Transactions ..............................................................................................................................................................
Total ...............................................................................................................................................................................................
Remittance:
Domestic ............................................................................................................................................................................................
International ......................................................................................................................................................................................
Intercompany Transactions ..............................................................................................................................................................
Total ...............................................................................................................................................................................................
Securities-related:
Domestic ............................................................................................................................................................................................
International ......................................................................................................................................................................................
Intercompany Transactions ..............................................................................................................................................................
Total ...............................................................................................................................................................................................
Agent:
Domestic ............................................................................................................................................................................................
International ......................................................................................................................................................................................
Intercompany Transactions ..............................................................................................................................................................
Total ...............................................................................................................................................................................................
Safe Deposit Box:
Domestic ............................................................................................................................................................................................
International ......................................................................................................................................................................................
Intercompany Transactions ..............................................................................................................................................................
Total ...............................................................................................................................................................................................
Guarantees:
Domestic ............................................................................................................................................................................................
International ......................................................................................................................................................................................
Intercompany Transactions ..............................................................................................................................................................
Total ...............................................................................................................................................................................................
Trust-related:
Domestic ............................................................................................................................................................................................
International ......................................................................................................................................................................................
Intercompany Transactions ..............................................................................................................................................................
Total ...............................................................................................................................................................................................
Total Income:Domestic ............................................................................................................................................................................................
International ......................................................................................................................................................................................
Intercompany Transactions ..............................................................................................................................................................
Total ...............................................................................................................................................................................................
ExpensesRemittance:
Domestic ............................................................................................................................................................................................
International ......................................................................................................................................................................................
Intercompany Transactions ..............................................................................................................................................................
Total ...............................................................................................................................................................................................
Total Expenses:
Domestic ............................................................................................................................................................................................
International ......................................................................................................................................................................................
Intercompany Transactions ..............................................................................................................................................................
Total ...............................................................................................................................................................................................

¥ 10.8
30.4
(1.1)
40.2
49.4
1.2
(0.7)
49.9
9.2
3.3
(1.8)
10.7
10.4
—
(0.1)
10.2
3.2
0.0
(0.0)
3.2
12.7
3.5
(7.0)
9.3
22.5
0.0
(0.1)
22.5
231.3
42.9
(53.3)¥220.9¥ 12.0
0.0
(0.5)
11.5
58.1
10.7
(27.6)¥ 41.1

Notes: 1. “Domestic” denotes the Bank (excluding its overseas offices) and its domestic consolidated subsidiaries.
“International” denotes the Bank’s overseas offices and its consolidated subsidiaries which are based abroad (“consolidated foreign subsidiaries”).
2. “Intercompany transactions” denotes amounts arising from intercompany transactions.
3. Disclosure of the above information was not required as of March 31, 1999.
94

Breakdown of Gross Profit
Billions of yen
Year ended March 31,

2000¥374.7228.8(16.0)
587.4

Net Fee and Commission Income:Domestic ...........................................................................................................................................................................................
International .....................................................................................................................................................................................
Intercompany Transactions .............................................................................................................................................................
Total ..............................................................................................................................................................................................

173.2
32.2
(25.7)
179.7

Net Trading Profit:
Domestic ...........................................................................................................................................................................................
International .....................................................................................................................................................................................
Intercompany Transactions .............................................................................................................................................................
Total ..............................................................................................................................................................................................

13.8
26.1
—
39.9

Net of Other Operating Income and Expenses:
Domestic ...........................................................................................................................................................................................
International .....................................................................................................................................................................................
Intercompany Transactions .............................................................................................................................................................
Total ..............................................................................................................................................................................................

69.3
18.8
(3.4)
84.8

Notes: 1. “Domestic” denotes the Bank (excluding its overseas offices) and its domestic consolidated subsidiaries.
“International” denotes the Bank’s overseas offices and its consolidated subsidiaries which are based abroad (“consolidated foreign subsidiaries”).
2. “Intercompany transactions” denotes amounts arising from intercompany transactions.
3. Disclosure of the above information was not required as of March 31, 1999.

95

CONSOLIDATEDNet Interest Income:Domestic ...........................................................................................................................................................................................
International .....................................................................................................................................................................................
Intercompany Transactions .............................................................................................................................................................
Total ..............................................................................................................................................................................................

Fuji Bank Group

Consolidated Data File
Loans and Bills Discounted
Major Lending Classifications
Billions of yen

CONSOLIDATED

2000
March 31,

Amount% of total

Domestic Offices:
Manufacturing ....................................................................................................................................................................
Agriculture ..........................................................................................................................................................................
Forestry ...............................................................................................................................................................................
Fisheries ..............................................................................................................................................................................
Mining .................................................................................................................................................................................
Construction .......................................................................................................................................................................
Utilities ................................................................................................................................................................................
Transportation and Communications ...............................................................................................................................
Wholesale and Retail ..........................................................................................................................................................
Finance and Insurance .......................................................................................................................................................
Real Estate ..........................................................................................................................................................................
Services ...............................................................................................................................................................................
Local Government ..............................................................................................................................................................
Others ..................................................................................................................................................................................
Total Domestic ...............................................................................................................................................................

¥ 4,244.0
45.7
2.7
17.5
32.2
1,224.8307.8
1,130.2
4,251.4
4,444.5
3,317.3
5,097.0
210.8
6,650.4
30,976.9

13.70%
0.15
0.01
0.06
0.10
3.95
0.99
3.65
13.73
14.35
10.71
16.45
0.68
21.47
100.00%Overseas Offices:
Public Sector ........................................................................................................................................................................
Financial Institutions..........................................................................................................................................................
Others...................................................................................................................................................................................
Total Overseas ................................................................................................................................................................
Total.................................................................................................................................................................................

160.1
400.1
4,834.3
5,394.6¥36,371.5

2.97%
7.42
89.61
100.00%....

Notes: 1. “Domestic” denotes the Bank (excluding its overseas offices) and its domestic consolidated subsidiaries.
“International” denotes the Bank’s overseas offices and its consolidated subsidiaries which are based abroad (“consolidated foreign subsidiaries”).
2. Disclosure of the above information was not required as of March 31, 1999.

Loans to Overseas Governments, etc.
Billions of yen
March 31,

2000

Number of Countries ...........................................................................................................................................................................
Balance of Loans ..................................................................................................................................................................................
Balance of Loans as a Percentage of Total Assets ...............................................................................................................................

7
¥97.4
0.2%

Notes: 1. “Loans to Overseas Governments” denotes the balances (according to country) of loans for which each consolidated subsidiary has made a
provision to the “Reserve for Possible Losses on Loans to Restructuring Countries” on the balance sheet date according to its respective “LoanInspection Manual.” (However, where the relevant company does not in fact make a Reserve for Possible Losses on Loans to Restructuring
Countries under Japanese accounting practice because it is an overseas corporation, an amount corresponding to such a reserve calculated
according to the Bank’s guidelines has been included for consistency).
2. The above amounts also include deposits, acceptances and guarantees and suspense payments etc. in addition to loans. Loans without transfer
risk are not included.
3. Disclosure of the above information was not required as of March 31, 1999.

96

Principal Ratios
BIS Capital Ratio on a Consolidated Basis
Billions of yen
March 31,

Risk-Adjusted Assets:
On-Balance Sheet Exposure ...............................................................................................
Off-Balance Sheet Exposure ...............................................................................................
Equivalent Market Risk / 8% ............................................................................................
Total ................................................................................................................................
Total Capital Ratio ....................................................................................................................

1999

1998

¥ 2,397.9¥ 2,370.6¥ 1,809.8

—
99.3
278.7
1,986.3
2,364.4
14.0¥ 4,748.3

—
101.8
261.4
1,899.6
2,262.9
4.3¥ 4,629.2

—
146.9
120.7
1,476.9
1,744.6—¥ 3,554.5¥39,539.7
3,177.8
415.9¥43,133.6¥36,577.3
4,258.7
331.5¥41,167.6¥33,802.9
3,614.6
341.9¥37,759.5

11.00%

11.24%

9.41%

Notes: 1. Figures in this table are calculated in accordance with guidelines established by the Financial Supervisory Agency and the Ministry of Finance.
2. The Bank issued preferred securities through Fuji JGB Investment L.L.C., a wholly-owned indirect subsidiary of the Bank. The preferred
securities are treated as consolidated and non-consolidated Tier I capital of the Bank.
Issuer:Fuji JGB Investment L.L.C.
Securities Issued:
Noncumulative Preferred Securities
Issue Amount:$1,600,000,000
Issue Date:
March 16, 1998
Characteristics of Preferred Securities: · The Bank treats the preferred securities as Tier I capital of the Bank under the relevant Japanese regulatory capital guidelines.
· The preferred securities are noncumulative preferred securities which cannot be exchanged for the Bank’s common stock.
· The preferred securities are structured to rank in substance pari passu with the Bank’s preferred stock upon liquidation of theBank, and to be entitled to in substance the same rights with respect to dividends as any senior preferred stock that may infuture be issued by the Bank.

97

CONSOLIDATED

Tier I Capital..............................................................................................................................
Tier II Capital:
Unrealized Gains on Securities, after 55% Discount .......................................................
Land Revaluation Account, after 55% Discount ..............................................................
General Reserve for Possible Loan Losses .........................................................................
Subordinated Debt and Other ............................................................................................
Total ................................................................................................................................
Less ............................................................................................................................................
Total Qualifying Capital ...........................................................................................................

2000

The Fuji Bank, Limited

Non-Consolidated Financial Statements
Non-Consolidated Balance Sheets
Thousands of
U.S. dollars (Note 1)

Millions of yen
March 31,

2000

1999

2000

Cash and Due from Banks ..............................................................................

¥ 2,541,682¥ 2,028,844$ 23,944,256

Call Loans and Bills Purchased ......................................................................

171,967

814,134

1,620,046

Commercial Paper and Other Debt Purchased..............................................

34,98350,882

329,564

Trading Assets.................................................................................................

1,163,889

1,507,525

10,964,578

Money Held in Trust ......................................................................................

50,40160,398474,814

Securities..........................................................................................................

6,427,786

5,837,796

60,553,802

Loans and Bills Discounted ............................................................................

31,267,681

29,793,318

294,561,291

Foreign Exchange ...........................................................................................

316,136

421,850

2,978,207

Other Assets ....................................................................................................

1,594,605

1,391,143

15,022,194

Premises and Equipment ................................................................................

525,119552,012

4,946,960

Deferred Tax Assets .......................................................................................

605,896

732,556

5,707,928

Customers’ Liabilities for Acceptances and Guarantees...............................

2,800,360

3,193,984

26,381,160

Reserve for Possible Loan Losses ...................................................................

(464,024)(455,519)(4,371,408)

Reserve for Devaluation of Investment Securities........................................

(27,037)(16,700)(254,706)

Total Assets ...............................................................................................

¥47,009,449¥45,912,230$442,858,686

NON-CONSOLIDATEDASSETS

The accompanying notes are an integral part of these statements.

98

Thousands of
U.S. dollars (Note 1)

Millions of yen
March 31,

1999

2000

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Deposits ....................................................................................................
Call Money and Bills Sold...............................................................................
Commercial Paper ...........................................................................................
Trading Liabilities...........................................................................................
Borrowed Money.............................................................................................
Foreign Exchange............................................................................................
Bonds ...............................................................................................................
Convertible Bonds ...........................................................................................
Other Liabilities...............................................................................................
Reserve for Retirement Allowances ..............................................................
Reserve for Possible Losses on Loans Sold....................................................
Reserve for Possible Losses on Support of Specific Borrowers ....................
Other Reserves ................................................................................................
Deferred Tax Liability for Land Revaluation ...............................................
Acceptances and Guarantees .........................................................................

¥32,015,560
3,661,101
565,000
691,730
2,028,227
140,514300,000—
2,103,427
44,693
110,61957,50668
85,5892,800,360¥32,123,178
2,383,687
400,000
932,049
1,955,418
148,493
300,000
5,666
1,792,816
45,866
129,705
84,96663
94,481
3,193,984$301,606,787
34,489,886
5,322,657
6,516,541
19,107,183
1,323,737
2,826,189—
19,815,613
421,037
1,042,104
541,748648
806,306
26,381,160

Total Liabilities...........................................................................................

44,604,399

43,590,379

420,201,596

Stockholders’ Equity
Common Stock ...............................................................................................
Preferred Stock ...............................................................................................
Capital Surplus ................................................................................................
Legal Reserve...................................................................................................
Land Revaluation Account.............................................................................
Voluntary Reserve ..........................................................................................
Special Reserve................................................................................................
Unappropriated Retained Earnings at End of Year ......................................

560,927
478,616
929,907102,213135,229
71,90021
126,233

559,216
478,616
928,196
96,397
131,767
40,90017
86,7395,284,291
4,508,870
8,760,319
962,915
1,273,947
677,343207
1,189,198

Total Stockholders’ Equity ........................................................................

2,405,050

2,321,851

22,657,090

Total Liabilities and Stockholders’ Equity ............................................

¥47,009,449¥45,912,230$442,858,686

99

NON-CONSOLIDATED

2000

The Fuji Bank, Limited

Non-Consolidated Financial Statements
Non-Consolidated Statements of Income
Thousands of
U.S. dollars (Note 1)

Millions of yen
Years ended March 31,

INCOMEInterest Income:Interest on Loans and Discounts .....................................................................
Interest and Dividends on Securities...............................................................
Other Interest Income.......................................................................................
Fee and Commission Income ................................................................................
Trading Income .....................................................................................................
Other Operating Income .......................................................................................
Other Income .........................................................................................................
Total Income............................................................................................

NON-CONSOLIDATEDEXPENSESInterest Expenses:
Interest on Deposits ..........................................................................................
Interest on Borrowings and Rediscounts ........................................................
Other Interest Expenses ...................................................................................
Fee and Commission Expenses .............................................................................
Trading Expenses ..................................................................................................
Other Operating Expenses ....................................................................................
General and Administrative Expenses .................................................................
Other Expenses ......................................................................................................
Total Expenses ........................................................................................
Income (Loss) before Income Taxes.....................................................................
Income Tax Expenses:
Current ..............................................................................................................
Deferred.............................................................................................................
Net Income (Loss) ...............................................................................................
The accompanying notes are an integral part of these statements.

100

2000

1999

2000

¥ 729,555
97,478539,217
1,366,251
116,037
11,965
139,600
412,160
2,046,014¥ 877,477
157,893
573,881
1,609,253
106,635
17,978167,591
170,444
2,071,902$ 6,872,873
918,305
5,079,771
12,870,949
1,093,144
112,7221,315,125
3,882,808
19,274,748

233,898
80,466558,500
872,865
45,352
1,450
113,164
350,394435,8811,819,109
226,904

403,139
111,725589,633
1,104,499
45,883—85,557
367,664
1,132,654
2,736,259(664,356)

2,203,470
758,045
5,261,430
8,222,945
427,250
13,666
1,066,083
3,300,939
4,106,278
17,137,161
2,137,587

248
124,501¥ 102,154

332(271,758)¥ (392,929)

2,344
1,172,880$ 962,363

Non-Consolidated Statements of Appropriation of Retained Earnings (Deficit)
Thousands of
U.S. dollars (Note 1)

Millions of yen
Years ended March 31,

Net Income (Loss)..................................................................................................
Unappropriated Retained Earnings (Deficit) at Beginning of Year ...................
Reversal of Special Reserve...................................................................................
Prior Year’s Adjustment for Deferred Taxes.......................................................
Reversal of Reserve for Losses on Overseas Investments in
Conjunction with Adopting Accounting for Deferred Taxes ...........................
Reversal of Land Revaluation Account................................................................
Total .........................................................................................................
Appropriations:
Provision of Legal Reserve ...............................................................................
Provision of Voluntary Reserve .......................................................................
Provision of Special Reserve ............................................................................
Dividends...........................................................................................................
Total .........................................................................................................
Unappropriated Retained Earnings at End of Year.............................................

2000

1999

2000

¥102,154
86,7391—¥(392,929)(487,393)
549,003
460,798$ 962,363
817,137
18
—

—
3,011
191,90712—
129,491—
28,3681,807,886

5,816
31,0006
28,851
65,673¥126,233

7,180
—
12
35,55842,752¥ 86,739

54,795
292,03958
271,796
618,688$1,189,198

The accompanying notes are an integral part of these statements.

The Fuji Bank, Limited

Notes to Non-Consolidated Financial Statements
2. Significant Accounting Policies of The Fuji Bank, Limited

The accompanying non-consolidated financial statements of The Fuji
Bank, Limited have been maintained and prepared in accordance withaccounting principles and practices generally accepted in Japan, theCommercial Code of Japan and the Banking Law of Japan, and havebeen compiled from the non-consolidated financial statements filedwith the Minister of Finance as required by the Securities andExchange Law of Japan. Accounting principles and practices generally
accepted in Japan may differ to some degree from accounting principles
and practices generally accepted in countries and jurisdictions otherthan Japan. In addition, the notes to the non-consolidated financial
statements include information which is not required under accounting
principles generally accepted in Japan but is presented herein as
additional information.
Certain items presented in the non-consolidated financial statements
filed with the Minister of Finance have been reclassified for the convenience of readers outside Japan.
As permitted by the Securities and Exchange Law of Japan, amountsof less than one million yen have been omitted. As a result, the totals inyen shown in the non-consolidated financial statements do not necessarily agree with the sum of the individual amounts.
Amounts in U.S. dollars are included solely for the convenience ofreaders outside Japan. The rate of ¥106.15=U.S.$1.00, the rate ofexchange in effect on March 31, 2000, has been used in translation.
The inclusion of such amounts is not intended to imply that Japanese
yen have been or could be readily converted, realized or settled in U.S.
dollars at that rate or any other rate.

Refer to Notes to Consolidated Financial Statements.

3. Net Income (Loss) per Share
The information of net income (loss) per share of common stock is asfollows:
Yen
Years ended March 31,

2000

1999

Net Income (Loss).......................................

¥27.03¥(130.53)

Net income (loss) per share of common stock is computed based on the
average number of shares of common stock outstanding during theyear, adjusted for the preferred stock dividend.

101

NON-CONSOLIDATED

1. Basis of Presentation

The Fuji Bank, Limited

Notes to Non-Consolidated Financial Statements

4. Market Value Information
Market Prices of Marketable Securities
Millions of yen
March 31, 2000

Listed Securities:
Bonds ........................................................................................
Stocks ........................................................................................
Others .......................................................................................
Total .....................................................................................

Book
value

Marketvalue

Net

Unrealized gain (loss)
Gross gain
Gross loss

¥ 137,971
2,771,399
104,836¥3,014,208¥ 148,488
3,232,039
102,984¥3,483,512¥ 10,516
460,639(1,852)¥469,303

Book
value

Marketvalue

Net¥1,657,824
186,494
297,311¥2,141,629¥1,648,984
274,096291,754¥2,214,836¥ (8,839)
87,602(5,556)¥ 73,206

Book
value

Marketvalue

Net¥ 235,666
3,016,974
99,731¥3,352,372¥ 229,931
3,141,447
94,204¥3,465,583¥ (5,735)
124,473(5,527)¥113,210¥ 16,348
831,668246¥848,264¥

5,831
371,0292,098¥378,960

Millions of yen
March 31, 2000

Unlisted Securities:
Bonds ........................................................................................
Stocks ........................................................................................
Others .......................................................................................
Total .....................................................................................

Unrealized gain (loss)
Gross gain
Gross loss

¥ 2,096
91,872432¥ 94,400¥ 10,935
4,269
5,988
¥ 21,194

Millions of yen

NON-CONSOLIDATEDMarch 31, 1999

Listed Securities:
Bonds ........................................................................................
Stocks ........................................................................................
Others .......................................................................................
Total .....................................................................................

Unrealized gain (loss)
Gross gain
Gross loss

¥ 4,733
346,875
1,738¥353,347¥ 10,468
222,4027,266¥240,137

Millions of yen
March 31, 1999

Unlisted Securities:
Bonds ........................................................................................
Stocks ........................................................................................
Others .......................................................................................
Total .....................................................................................

Book
value

Marketvalue

Net

Unrealized gain (loss)
Gross gain
Gross loss

¥ 970,151
192,051
185,147¥1,347,350¥ 973,139
251,570
182,658¥1,407,368¥ 2,987
59,518(2,488)¥ 60,018¥ 8,197
67,572885¥ 76,654¥ 5,209
8,053
3,373¥ 16,636

Notes: 1. Market values of listed securities are determined mainly according to the closing price at term-end on the Tokyo Stock Exchange, or prices calculated using
indicated yields announced by the Japan Securities Dealers Association.
2. Market values of unlisted securities are determined as follows:
Securities traded over-the-counter: transaction prices announced by the Japan Securities Dealers Association
Publicly offered bond: prices calculated using indicated yield announced by the Japan Securities Dealers Association
Securities of investment trust: market prices announced by authorized fund management companies
3. The book values of securities not included in the market value information provided above are as follows:
Millions of yen
March 31,
2000
1999
Unlisted domestic bonds, excluding publicly offered bonds ..................
¥245,415¥395,006
Unlisted publicly offered bonds maturing within one year or less .........
29,866
14,376
Unlisted bonds excluding domestic bonds ...............................................
255,485
37,388Unlisted stocks of subsidiaries and affiliates ...........................................
541,717474,543
4. Trading securities and trading account securities are evaluated according to the market price, and the unrealized gain or loss is recorded on the Statement of
Income. Therefore profit and loss information is omitted from the above table.

102Interest Rate-Related Transactions

Millions of yen
Contract value
Term overTotal
one yearMarch 31, 2000¥—
74,826¥

Marketvalue

Unrealized
gain (loss)

¥

¥

—
—

¥....
....

—
74,817

—
(8)

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

6,927
6,927

—
—

....
....

0
(0)

0
(0)

49,717,384
54,000,856
64,81068,64934,181,672
33,920,959
34,58833,685

....
....
....
....

206,964(239,040)27(365)

206,964(239,040)
27
(365)

2,500
3,000
—
6,000

2,500
—
—
—

—
—
—
—

(21)
(10)
—
3

(21)
(10)
—
3

303,339
296,340....

272,682
257,138
....

—
—
....

(2,259)2,426....

(2,259)2,426¥(32,286)

Optionpremium

Marketvalue

Unrealized
gain (loss)

—
—

¥....
....

¥364,183
149,629¥

150,000
—
—
—

—
—
—
—

93
—
—
—

108
—
—
—

(15)
—
—
—

—
—

—
—

....
....

—
—

—
—

37,125,837
38,687,300
91,25916,26920,165,304
18,410,302
72,267
16,269

....
....
....
....

608,903(666,740)(333)
7

608,903(666,740)(333)
7

20,000
—
9,130
8,500

—
—
6,630
6,000

—
—
—
—

(77)
—
47
17

(41)
—
(2)
(65)

239,441
251,853....

210,189
233,417
....

—
—
....

(770)
800
....

2,349
(2,157)¥ (57,945)

Millions of yen
Contract value
Term overTotal
one yearMarch 31, 1999

ListedInterest Rate Futures:
Sell .....................................................................................................
Buy .....................................................................................................
Interest Rate Option:
Sell Call .............................................................................................
Put ..............................................................................................
Buy Call .............................................................................................
Put ..............................................................................................
Over-the-Counter
FRA:
Sell .....................................................................................................
Buy .....................................................................................................
Interest Rate Swap:
Receive Fixed Pay Floating .................................................................
Receive Floating Pay Fixed .................................................................
Receive Floating Pay Floating ............................................................
Receive Fixed Pay Fixed ....................................................................
Interest Rate Option:
Sell Call ..............................................................................................
Put ..............................................................................................
Buy Call ..............................................................................................
Put ..............................................................................................
Others:Sell .....................................................................................................
Buy .....................................................................................................
Total ............................................................................................

¥

103

364,112
149,408

¥

(71)
221

NON-CONSOLIDATED

ListedInterest Rate Futures:
Sell .....................................................................................................
Buy .....................................................................................................
Interest Rate Option:
Sell Call .............................................................................................
Put ..............................................................................................
Buy Call .............................................................................................
Put ..............................................................................................
Over-the-Counter
FRA:
Sell .....................................................................................................
Buy .....................................................................................................
Interest Rate Swap:
Receive Fixed Pay Floating .................................................................
Receive Floating Pay Fixed .................................................................
Receive Floating Pay Floating ............................................................
Receive Fixed Pay Fixed ....................................................................
Interest Rate Option:
Sell Call ..............................................................................................
Put ..............................................................................................
Buy Call ..............................................................................................
Put ..............................................................................................
Others:Sell .....................................................................................................
Buy .....................................................................................................
Total ............................................................................................

Optionpremium

The Fuji Bank, Limited

NON-CONSOLIDATED

Notes to Non-Consolidated Financial Statements

Notes: 1.Option premiums are recorded on the Balance Sheets.
2. Calculation of market value.
Market values of listed transactions are calculated using the closing prices on the Tokyo International Financial Futures Exchange, etc.
Market values of over-the-counter transactions are calculated using the discounted present value or an option pricing model, etc.
3. Market values and unrealized gain or loss include transactions made for the purpose of hedging on-balance sheet transactions.
4. Market values of interest rate swaps and unrealized gain or loss include accrued interest recorded on the Statement of Income. (March 31, 2000: ¥113,946 million)
5. Derivative transactions included in trading account transactions are marked to market and the unrealized gain or loss calculated is recorded on the Statement of
Income. Therefore it is not included in the above table.
The contract values, etc. of derivative transactions included in trading account transactions are as follows:
Millions of yen
2000
1999
Contract
OptionMarketContract
OptionMarketMarch 31,
value
premium
value
value
premium
value
ListedInterest Rate Futures:
Sell ......................................................................
¥ 514,422¥....
¥514,778¥ 2,302,235¥....
¥2,307,233
Buy ......................................................................
381,869....
382,054
2,475,705....
2,482,763
Interest Rate Option:
Sell Call................................................................
51,18129
5254,967
98
38
Put ................................................................
84,861
46
63
136,911
27
22
Buy Call................................................................
31,18732
1574,08673
15
Put ................................................................
10,84531
3450,46011
5Over-the-Counter
FRA:
Sell ......................................................................
—
....
—
9,945
....
0
Buy ......................................................................
—
....
—
9,945
....
(0)
Interest Rate Swap:
Receive Fixed Pay Floating .................................
43,073,115....
434,434
45,712,842....
843,160
Receive Floating Pay Fixed ..................................
41,628,271....
(403,443)
43,965,403....
(780,658)
Receive Floating Pay Floating .............................
1,054,292
....
(146)
837,295....
(1,582)
Receive Fixed Pay Fixed ......................................
71,372....
2,674
44,925....
11,081
Interest Rate Option:
Sell Call................................................................
412,933
4,361(10,228)
427,531
4,974(19,020)
Put.................................................................
378,794
3,733(1,843)453,132
4,507(2,070)
Buy Call................................................................
231,3832,176
4,834
325,128
2,652
8,258
Put.................................................................
314,6722,478
2,333
385,587
3,099
2,743
Others:Sell ......................................................................
1,104,605
16,073(5,596)976,119
13,820(4,453)
Buy ......................................................................
1,166,342
14,7995,014
1,104,737
14,5333,970
Note: Others denotes swaption and cap-floor transactions.

104Currency-Related Transactions

Millions of yen
2000

March 31,

Contract value
Term overTotal
one yearMarketvalue

Unrealized
gain (loss)

1999
Contract value
Term over Market
Total
one yearvalue

Unrealized
gain (loss)

Over-the-Counter
Currency Swap:
US$ ..............................................................
STG £ ...........................................................
–C ...............................................................
DM ..............................................................
A$ ...............................................................
Others .........................................................

¥3,883,665
231,486
30,311
74,087—
194,868¥591,758 ¥ 83,713 ¥ 83,713
—
2,312
2,312
—
444
444
8,440
6,711
6,711
—
—
—
36,812 (101,322) (101,322)¥3,091,021 ¥ 875,277 ¥ 85,638 ¥ 85,638
219,540
60,8548,261
8,261
149,476
874
2,411
2,411
10,403
10,403
1,463
1,463
4,264
—
(45)
(45)
266,470
98,211 (144,642) (144,642)

Total ......................................................

¥4,414,419¥637,011 ¥ (8,140) ¥ (8,140)¥3,741,177 ¥1,045,621 ¥(46,913) ¥(46,913)

4. In foreign exchange contracts and currency options, etc., revaluation is carried out at the end of March and the unrealized gain or loss is recorded on theStatement of Income. Therefore it is not included in the above table.
The table below indicates the contract value, etc. of derivative transactions relating to currency transactions which are revalued.
Millions of yen
2000
1999
Contract
OptionContract
OptionMarch 31,
value
premiumvalue
premium
ListedCurrency Futures:
Sell ..................................................................................................
¥
378
¥
....
¥
700
¥
....
Buy ..................................................................................................
379
....
308
....
Currency Option:
Sell Call............................................................................................
————
Put ............................................................................................
————
Buy Call............................................................................................
————
Put ............................................................................................
————
Over-the-Counter
Foreign Exchange Contract:
Sell ..................................................................................................
4,966,617....
6,900,237....
Buy ..................................................................................................
5,500,238....
7,708,151....
Currency Option:
Sell Call............................................................................................
513,107
20,849810,316
13,180
Put ............................................................................................
585,355
11,895
675,731
13,069Buy Call............................................................................................
498,300
21,555
798,947
13,406
Put ............................................................................................
523,147
12,022
637,415
14,157
Others:Sell ..................................................................................................
—
....
—
....
Buy ..................................................................................................
—
....
—
....
Note: Option premiums are recorded on the Balance Sheets.

105

NON-CONSOLIDATED

Notes: 1. Market values are calculated using the discounted present value, etc.
2. Market values and unrealized gain or loss include transactions made for the purpose of hedging on-balance sheet transactions.
3. Derivative transactions included in trading account transactions are marked to market and the unrealized gain or loss calculated is recorded on the Statement of
Income. Therefore it is not included in the above table.
The contract values, etc. of derivative transactions in trading account transactions are as follows:
Millions of yen
2000
1999
Contract
MarketContract
MarketMarch 31,
value
value
value
value
Over-the-Counter
Currency Swap:
US$ ..................................................................................................
¥2,322,029¥ (7,842)¥2,938,709¥(16,315)–
C ............................................................................................
47,28682
4,047
1DM ..................................................................................................
42,460(1,523)65,826(1,704)
A$ ..................................................................................................
367,370(3,036)
518,848(14,831)
Others ...............................................................................................
71,999344
124,353(414)
Total .........................................................................................
¥2,851,145¥(11,975)¥3,651,786¥(33,264)

The Fuji Bank, Limited

Notes to Non-Consolidated Financial Statements

Securities-Related Transactions

Millions of yen
Contract value
Term overTotal
one yearMarch 31, 2000

ListedSecurities Indexed Futures:
Sell .....................................................................................................
Buy .....................................................................................................
Securities Indexed Option:
Sell Call ..............................................................................................
Put ..............................................................................................
Buy Call ..............................................................................................
Put ..............................................................................................
Over-the-Counter
Securities-related Option:
Sell Call ..............................................................................................
Put ..............................................................................................
Buy Call ..............................................................................................
Put ..............................................................................................
Securities-related Swap:
Receive Stock Index, Pay Floating Rate .................................................
Pay Stock Index, Receive Floating Rate .................................................
Others:Sell .....................................................................................................
Buy .....................................................................................................
Total ............................................................................................

Optionpremium

Marketvalue

Unrealized
gain (loss)¥ 8,594
7,942

¥—
—

¥ ....
....

¥ 8,629
8,143¥ (34)
201

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—

—
—

....
....

—
—

—
—

—
—
....

—
—
....

....
....
....

—
—
....

—
—
¥ 166

NON-CONSOLIDATED

Millions of yen
Contract value
Term overTotal
one yearMarch 31, 1999

ListedSecurities Indexed Futures:
Sell .....................................................................................................
Buy .....................................................................................................
Securities Indexed Option:
Sell Call ..............................................................................................
Put ..............................................................................................
Buy Call ..............................................................................................
Put ..............................................................................................
Over-the-Counter
Securities-related Option:
Sell Call ..............................................................................................
Put ..............................................................................................
Buy Call ..............................................................................................
Put ..............................................................................................
Securities-related Swap:
Receive Stock Index, Pay Floating Rate .................................................
Pay Stock Index, Receive Floating Rate .................................................
Others:Sell .....................................................................................................
Buy .....................................................................................................
Total ............................................................................................

Optionpremium

Marketvalue

Unrealized
gain (loss)¥42,207
50,102¥——¥ ....
....

¥43,12950,936¥(921)
833

11,607756
11,607
220

—
—
—
—

231
2
79
0

78
0
78
0

153
2
(1)
(0)

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—

—
—

....
....

—
—

—
—

—
—
....

—
—
....

....
....
....

—
—
....

—
—
¥ 65

Notes: 1. Option premiums are recorded on the Balance Sheets.
2. Market values of listed transactions are calculated using the closing prices on the Tokyo Stock Exchange, etc.
Market values of over-the-counter transactions are calculated using the discounted present value or an option pricing model, etc.
3. There are no securities-related derivative transactions included in “Trading Assets/Liabilities.”106

Bond-Related Transactions

Millions of yen
Contract value
Term overTotal
one yearMarch 31, 2000

ListedBond Futures:
Sell .....................................................................................................
Buy .....................................................................................................
Bond Futures Option:
Sell Call ..............................................................................................
Put ...............................................................................................
Buy Call ..............................................................................................
Put ...............................................................................................
Over-the-Counter
Bond-related Option:
Sell Call ..............................................................................................
Put ...............................................................................................
Buy Call ..............................................................................................
Put ...............................................................................................
Others:Sell .....................................................................................................
Buy .....................................................................................................
Total ............................................................................................

Optionpremium

Marketvalue

Unrealized
gain (loss)¥1,434,945
71,173

¥—
—

¥....
....

¥1,451,324
71,389¥(16,378)
215

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
....

—
—
....

....
....
....

—
—
....

—
—
¥(16,162)

Millions of yen
Contract value
Term overTotal
one yearMarch 31, 1999

Marketvalue

Unrealized
gain (loss)¥ 269,877
13,259¥——¥ ....
....

¥ 272,406
13,282¥ (2,529)
23

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
3,013
—

—
—
—
—

—
—
15
—

—
—
—
—

—
—
(15)
—

—
—
....

—
—
....

....
....
....

—
—
....

—
—
¥ (2,521)

Notes: 1. Option premiums are recorded on the Balance Sheets.
2. Market values of listed transactions are calculated using the closing prices on the Tokyo Stock Exchange, etc.
Market values of over-the-counter transactions are calculated using an option pricing model, etc.

107

NON-CONSOLIDATED

ListedBond Futures:
Sell .....................................................................................................
Buy .....................................................................................................
Bond Futures Option:
Sell Call ..............................................................................................
Put ...............................................................................................
Buy Call ..............................................................................................
Put ...............................................................................................
Over-the-Counter
Bond-related Option:
Sell Call ..............................................................................................
Put ...............................................................................................
Buy Call ..............................................................................................
Put ...............................................................................................
Others:Sell .....................................................................................................
Buy .....................................................................................................
Total ............................................................................................

Optionpremium

The Fuji Bank, Limited

Notes to Non-Consolidated Financial Statements

Note: Derivative transactions included in trading account transactions are marked to market and the unrealized gain or loss is recorded on the Statement of
Income. Therefore it is not included in the above table. The contract value, etc. of derivative transactions in trading account transactions is as follows:
Millions of yen
2000
1999
Contract
OptionMarketContract
OptionMarketMarch 31,
value
premium
value
value
premium
value
ListedBond Futures:
Sell ......................................................................
¥28,198¥ ....
¥28,280¥14,027¥ ....
¥14,084
Buy ......................................................................
28,124....
28,28056,132....
56,995
Bond Futures Option:
Sell Call................................................................
—
—
—
—
—
—
Put.................................................................
44,500147
96
12,000
26
24
Buy Call................................................................
10,00045
62———
Put.................................................................
44,700
159
92
7,100
42
31
Over-the-Counter
Bond-related Option:
Sell Call................................................................
—
—
—
—
—
—
Put.................................................................
—
—
—
—
—
—
Buy Call................................................................
—
—
—
—
—
—
Put.................................................................
—
—
—
—
—
—
Others:Sell ......................................................................
—
....
—
—
....
—
Buy ......................................................................
—
....
—
—
....
—

Commodities-Related Transactions
There are no commodities-related transactions.

Credit Derivative Transactions

Millions of yen

NON-CONSOLIDATED

2000

March 31,Over-the-Counter
Sell ............................................
Buy ............................................
Total....................................

Contract value
Term overTotal
one year¥12,000
1,390....

¥11,000
1,390
....

1999
Marketvalue

Unrealized
gain (loss)

¥56
(5)
....

¥70
(7)
¥63

Notes: 1. Market values of over-the-counter transactions are calculated using the discounted present value.
2. “Sell” indicates assumption of credit risk, “Buy” indicates transfer of credit risk.

108

Contract value
Term overTotal
one yearMarketvalue

Unrealized
gain (loss)¥2,000
—
....

¥(10)
—
....

¥(10)
—
¥(10)

¥2,000—....

Report of Independent Certified Public Accountantson the Non-Consolidated Financial Statements

The Board of Directors and Shareholders
The Fuji Bank, Limited
We have audited the non-consolidated balance sheets of The Fuji Bank, Limited as of March 31,
2000 and 1999, and the related non-consolidated statements of income and appropriation ofretained earnings (deficit) for the years then ended, all expressed in yen. Our audits were made inaccordance with auditing standards, procedures and practices generally accepted and applied inJapan and, accordingly, included such tests of the accounting records and such other auditing
procedures as we considered necessary in the circumstances.
In our opinion, the accompanying non-consolidated financial statements, expressed in yen,present fairly the non-consolidated financial position of The Fuji Bank, Limited at March 31,
2000 and 1999, and the non-consolidated results of its operations for the years then ended inconformity with accounting principles and practices generally accepted in Japan applied on aconsistent basis.
The U.S. dollar amounts in the accompanying non-consolidated financial statements with respect
to the year ended March 31, 2000 are presented solely for convenience. Our audit also included
the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has
been made on the basis described in Note 1 to the non-consolidated financial statements.
Tokyo, Japan
June 28, 2000

NON-CONSOLIDATED

See Note 1 to the non-consolidated financial statements which explains the basis of preparation of the non-consolidated financial
statements of The Fuji Bank, Limited under Japanese accounting principles and practices.

109

The Fuji Bank, Limited

Non-Consolidated Data File
Earnings Performance
Average Balances, Interest and Average Interest Rates
Billions of yen
2000
Averagebalance

Interest Earning Assets
Loans:
Domestic ........................................
International ..................................
Total ..........................................

1998

Interest

Averagebalance

Interest¥ 24,657.2
4,924.6
29,581.9¥ 480.3
244.2
724.6

1.94% ¥24,432.6
4.95
7,561.8
2.44
31,994.4¥ 507.4
362.0
869.5

Investment Securities:
Domestic ........................................
International ..................................
Total ..........................................

5,451.6
848.1
6,299.8

60.1
37.2
97.4

1.10
4.39
1.54

5,476.8
709.4
6,186.2

76.4
81.4
157.8

1.39
11.47
2.55

Call Loans:
Domestic ........................................
International ..................................
Total ..........................................

124.5
90.5
215.0

0.1
4.7
4.8

0.09
5.21
2.24

46.2
125.6
171.9

0.2
6.6
6.8

Bills Purchased:
Domestic ........................................
International ..................................
Total ..........................................

182.0
—
182.0

0.0
—
0.0

0.04
—
0.04

216.1
—
216.1

Interest Bearing Deposits in Other Banks:
Domestic ........................................
International ..................................
Total ..........................................

27.3
968.8
996.1

0.2
32.0
32.2

0.80
3.31
3.24

32,155.8
7,306.3
1,685.5¥ 37,776.5

623.5
748.3
5.6
¥1,366.2

Years ended March 31,

NON-CONSOLIDATED

1999
Averagerate

Total Interest Earning Assets:
Domestic ........................................
International ..................................
........................................
Total ..........................................

*

Averagebalance

Interest

Averagerate

2.07% ¥22,362.4
4.78
11,983.2
2.71
34,345.6¥ 491.2
504.3
995.5

2.19%
4.20
2.89

5,552.4656.3
6,208.8

94.2
58.6
152.9

1.69
8.94
2.46

0.58
5.27
4.01

247.9
241.3
489.2

1.4
13.8
15.3

0.58
5.73
3.12

1.0
—
1.0

0.47
—
0.47

41.6
—
41.6

0.3
—
0.3

0.73
—
0.73

48.4
1,145.1
1,193.5

0.3
59.2
59.5

0.63
5.17
4.98

52.7
3,426.2
3,479.0

0.2
148.9
149.1

0.45
4.34
4.28

1.93
31,941.1
10.24
10,300.7....
1,693.5
3.61% ¥40,548.3

682.4
937.5
10.8
¥1,609.2

2.13
29,337.2
9.10
16,913.3....
1,069.0
3.96% ¥45,181.5

658.8
1,357.0
7.2¥2,008.6

2.24
8.02
....
4.44%

Note: * Internal transaction between domestic sector and international sector.

110

Averagerate

Billions of yen
2000

1999

Interest

Interest Bearing Liabilities
Deposits:
Domestic ........................................
International ..................................
Total ..........................................

¥23,145.1
4,242.5
27,387.6¥ 57.5165.7
223.3

Negotiable Certificates of Deposit:
Domestic ........................................
International ..................................
Total ..........................................

3,141.4
76.1
3,217.5

6.3
4.2
10.5

0.20
5.53
0.32

Call Money:
Domestic ........................................
International ..................................
Total ..........................................

2,755.9
81.0
2,836.9

6.1
4.3
10.5

Bills Sold:
Domestic ........................................
International ..................................
Total ..........................................

186.4
17.7
204.1

Commercial Paper:
Domestic ........................................
International ..................................
Total ..........................................

Averagebalance

1998
Averagebalance

Interest

Average
rate

98.1
268.1
366.2

0.45% ¥20,900.9
3.77
13,569.9
1.28
34,470.8¥ 106.8
509.2
616.0

0.51%
3.75
1.78

3,562.5
228.5
3,791.1

22.0
14.7
36.8

0.61
6.47
0.97

2,393.2
893.1
3,286.3

15.4
57.0
72.5

0.64
6.39
2.20

0.22
5.40
0.37

3,903.0
105.0
4,008.1

24.9
5.4
30.4

0.63
5.23
0.75

3,001.9238.7
3,240.7

17.2
12.7
29.9

0.57
5.33
0.92

0.1
0.8
0.9

0.05
4.73
0.46

220.4
61.5
281.9

1.0
3.8
4.9

0.48
6.31
1.75

201.0
192.4
393.5

1.2
10.8
12.0

0.63
5.61
3.07

659.4
—
659.4

1.7
—
1.7

0.26
—
0.26

320.8
—
320.8

1.9
—
1.9

0.61
—
0.61

....
....
....

....
....
....

....
....
....

Borrowed Money:
Domestic ........................................
International ..................................
Total ..........................................

959.3
959.4
1,918.7

29.3
39.6
69.0

3.05
4.13
3.59

1,053.5
984.1
2,037.7

32.7
43.5
76.3

3.10
4.42
3.74

1,672.7
812.5
2,485.3

40.8
28.0
68.9

2.44
3.45
2.77

Total Interest Bearing Liabilities:
Domestic ........................................
International ..................................
........................................
Total ..........................................

31,118.9
7,177.0
1,685.5¥36,610.4

206.6
671.2
5.6
¥872.2

0.66
9.35
....
2.38%

30,583.7
10,382.4
1,693.5¥39,272.6

300.9
813.6
10.8
¥1,103.7

0.98
28,118.1
7.83
16,956.3....
1,069.0
2.81% ¥44,005.4

308.5
1,203.1
7.2¥1,504.3*

Averagerate

0.24% ¥21,438.9
3.90
7,100.9
0.81
28,539.8

Interest¥

Notes: 1. *Internal transaction between domestic sector and international sector.
2. Interest expenses on money held in trust is deducted from total interest bearing liabilities.

111

Average
rate

1.09
7.09
....
3.41%

NON-CONSOLIDATED

Years ended March 31,

AveragebalanceThe Fuji Bank, Limited

Non-Consolidated Data File
Breakdown of Changes of Net Interest Income
Billions of yen
2000

NON-CONSOLIDATED

Years ended March 31,

1999

1998

VolumeRate

Net Change

VolumeRate

Net Change

VolumeRate

Net ChangeInterest Income
Loans:
Domestic ........................................
International ..................................
Total ..........................................

¥ 4.3(126.2)(61.9)¥ (31.4)
8.4(83.0)¥ (27.0)(117.8)(144.9)¥ 42.9(186.0)(66.1)¥ (26.7)
43.8(59.8)¥ 16.2(142.2)(126.0)

¥14.1
16.6
30.4

¥ (35.4)
22.7(12.3)¥ (21.2)
39.4
18.1

Investment Securities:
Domestic ........................................
International ..................................
Total ..........................................

(0.2)
6.1
1.7

(16.0)(50.2)(62.1)(16.2)(44.1)(60.4)

(1.0)
5.0
(0.5)

(16.6)
17.6
5.5(17.7)
22.7
4.9

2.5
2.4
4.4

(9.4)
33.9
25.0

(6.8)
36.3
29.5

Call Loans:
Domestic ........................................
International ..................................
Total ..........................................

0.0
(1.8)
0.9

(0.2)
(0.0)
(3.0)

(0.1)
(1.9)
(2.0)

(1.1)
(6.5)
(9.9)

0.0
(0.6)
(1.5)

(1.1)
(7.2)
(8.4)

(0.9)
(2.4)
(5.3)

0.0
0.2
2.3

(0.8)
(2.1)
(3.0)

Bills Purchased:
Domestic ........................................
International ..................................
Total ..........................................

(0.0)
—
(0.0)

(0.9)
—
(0.9)

(0.9)
—
(0.9)

0.8
—
0.8

(0.1)
—
(0.1)

0.7
—
0.7

0.1
—
0.1

0.0
—
0.0

0.2
—
0.2

Interest Bearing Deposits in Other Banks:
Domestic ........................................
International ..................................
Total ..........................................

(0.1)
(6.8)
(7.5)

0.0
(20.3)(19.7)(0.0)(27.1)(27.2)(0.0)(99.1)(97.9)

0.0
9.4
8.3

0.0
(89.6)(89.6)(0.2)(14.3)(15.6)

(0.1)
10.1
11.0

(0.3)
(4.2)
(4.5)

4.1
(63.1)(272.5)83.3¥(104.4) ¥(138.5)(58.9)(189.2)¥(243.0)

55.6(530.5)¥(194.6)(31.9)
111.0¥(204.6)

23.6(419.5)¥(399.3)

(0.1)
11.4
¥ 6.2

(45.1)(80.1)¥(119.5)(45.2)(68.6)¥(113.3)

Total Interest Income:Domestic ........................................
International ..................................
Total ..........................................

Note: Allocation of the rate volume variance is based on the percentage relationship of changes in volume and changes in rate to the total “net change.”112

Billions of yen
2000
Years ended March 31,

1999

VolumeRate

Net ChangeInterest Expenses
Deposits:
Domestic ........................................
International ..................................
Total ..........................................

¥ 4.2(107.9)(9.9)¥ (44.8)
5.6(133.0)¥ (40.6)(102.3)(142.9)Negotiable Certificates of Deposit:
Domestic ........................................
International ..................................
Total ..........................................

(1.1)
(9.6)
(2.5)

(14.5)(0.9)(23.7)

Call Money:
Domestic ........................................
International ..................................
Total ..........................................

(4.0)
(1.2)
(5.9)

Bills Sold:
Domestic ........................................
International ..................................
Total ..........................................

1998

Rate

Net Change

VolumeRate

2.4(242.7)(87.4)¥ (11.1)
1.6(162.3)¥ (8.6)(241.1)(249.7)

¥ 0.3
(7.3)
(2.4)

¥(19.9)26.0
1.4¥(19.6)18.6(0.9)(15.6)(10.5)(26.2)

7.2(42.4)
4.9

(0.6)
0.1
(40.6)

6.5(42.2)(35.6)

0.3
2.6
2.2

2.1
5.0
7.9

2.5
7.6
10.2

(14.7)
0.1(13.9)(18.8)(1.1)(19.9)

5.6
(7.1)
5.8

2.0
(0.1)
(5.3)

7.6
(7.2)
0.4

(0.9)
(1.7)
(1.9)

2.0
1.0
2.2

1.0
(0.7)
0.3

(0.0)
(2.5)
(0.6)

(0.9)
(0.4)
(3.3)

(0.9)
(3.0)
(4.0)

0.0
(7.3)
(2.5)

(0.3)
0.4
(4.6)

(0.2)
(6.9)
(7.1)

(1.0)
(1.2)
(5.0)

0.2
1.0
4.0

(0.8)
(0.2)
(1.0)

Commercial Paper:
Domestic ........................................
International ..................................
Total ..........................................

0.9
—
0.9

(1.1)
—
(1.1)

(0.2)
—
(0.2)

1.9
—
1.9

—
—
—

1.9
—
1.9

....
....
....

....
....
....

....
....
....

Borrowed Money:
Domestic ........................................
International ..................................
Total ..........................................

(2.9)
(1.0)
(4.3)

(0.4)
(2.8)
(2.9)

(3.4)
(3.9)
(7.3)

(15.1)
6.6(12.4)

7.0
8.8
19.8

(8.0)
15.5
7.4

2.0
11.0
11.6

(4.0)
3.6
1.1

(1.9)
14.7
12.7

Total Interest Expenses:
Domestic ........................................
International ..................................
Total ..........................................

3.5(251.1)¥ (66.9)(97.7)
108.7¥(164.5)(94.2)(142.4)¥(231.4)

24.2(466.4)¥(143.8)(31.8)
76.9¥(256.7)(7.5)(389.5)¥(400.6)

(2.0)
14.9
¥ 0.8

(6.3)
(23.5)¥(17.3)

(8.4)
(8.5)
¥(16.4)113¥

Net Change

NON-CONSOLIDATED

Volume

The Fuji Bank, Limited

Non-Consolidated Data File
Breakdown of Fee & Commission Income

NON-CONSOLIDATED

Billions of yen
Years ended March 31,

2000

1999

1998

IncomeDeposit and Loan-related:
Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

¥ 4.7
11.3
16.0

¥ 4.4
12.5
17.0

¥ 4.1
16.1
20.2

Remittance:
Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

39.3
10.7
50.0

38.0
9.1
47.1

37.6
11.3
49.0

Securities-related:
Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

6.0
0.1
6.2

6.4
0.0
6.5

6.4
0.1
6.6

Agent:
Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

7.6
1.3
8.9

9.4
1.8
11.3

9.7
1.5
11.3

Safe Deposit Box:
Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

2.9
0.0
2.9

2.9
0.0
2.9

2.9
—
2.9

Guarantees:
Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

0.9
5.9
6.9

0.7
6.6
7.4

0.6
7.4
8.1

Total Income:Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

79.5
36.4
¥116.073.2
33.4¥106.670.7
39.0¥109.7

ExpensesRemittance:
Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

¥ 9.8
2.0
11.8

¥ 9.7
2.5
12.3

¥ 9.5
4.0
13.5

Total Expenses:
Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

37.1
8.2
¥ 45.3

34.6
11.2¥ 45.831.6
13.0¥ 44.7114

Breakdown of Net of Other Operating Income and Commissions
Billions of yen
Years ended March 31,

2000

1999

1998

Gains on Foreign Exchange Transactions:
Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

¥ —
27.9
27.9

¥ —
16.4
16.4

¥ —
17.6
17.6

Gains (Losses) on Sales of Bonds:
Domestic ...............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

13.1
(6.1)
6.9

76.1
3.5
79.6

58.4
19.3
77.8

Others:Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

(0.0)
(8.4)
(8.5)

(0.9)
(13.1)(14.0)(3.9)(9.1)(13.1)

Total:
Domestic ..............................................................................................................................
International ........................................................................................................................
Total ...............................................................................................................................

13.0
13.2
¥26.2

75.1
6.8
¥82.0

54.4
27.8
¥82.3

Breakdown of Adjusted General & Administrative Expenses
Billions of yen
Years ended March 31,

115

1999

1998

¥ 116.0
5.2
3.9
24.1
37.6
40.1
0.7
3.7
4.8
1.9
7.0
3.8
19.3
81.5
¥ 350.3¥125.0
5.3
4.1
25.6
39.7
36.8
0.7
4.8
4.9
2.4
7.2
5.2
22.7
82.5
¥367.6¥135.2
3.7
4.4
27.0
40.7
35.8
0.9
5.0
5.1
2.7
7.4
5.7
28.8
82.6
¥385.7

NON-CONSOLIDATEDSalaries, Allowances .................................................................................................................
Retirement Allowances ............................................................................................................
Provision of Reserve for Retirement Allowance ....................................................................
Benefits ......................................................................................................................................
Depreciation ..............................................................................................................................
Lease on Buildings and Equipment .........................................................................................
Repair Expenses .......................................................................................................................
General Supplies .......................................................................................................................
Lighting and Heating Expenses ...............................................................................................
Travel Expenses ........................................................................................................................
Telephone, Fax, etc. .................................................................................................................
Advertising Expenses ...............................................................................................................
Taxes .........................................................................................................................................
Other .........................................................................................................................................
Total ...............................................................................................................................

2000

The Fuji Bank, Limited

Non-Consolidated Data File
Deposits
Breakdown of Deposits
Billions of yen
2000

NON-CONSOLIDATEDMarch 31,

1999

AveragebalanceEndbalance

1998

AveragebalanceEndbalance

AveragebalanceEndbalanceLiquid Deposits※:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

¥ 9,724.0 ¥10,173.1
68.3
76.1
9,792.3 10,249.3¥ 7,269.8 ¥ 8,865.5
87.6
62.5
7,357.5
8,928.1¥ 6,905.0 ¥ 8,148.2
158.6
46.5
7,063.7
8,194.7

Time Deposits:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

13,085.9
1,709.1
14,795.0

11,650.6
2,100.0
13,750.7

13,838.7
4,234.8
18,073.6

13,178.0
1,874.3
15,052.4

13,683.5
10,572.6
24,256.1

12,996.9
6,482.6
19,479.5

Negotiable Certificates of Deposit:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

3,141.4
76.1
3,217.5

4,528.7
81.5
4,610.3

3,562.5
228.5
3,791.1

5,050.4
108.7
5,159.1

2,393.2
893.1
3,286.3

2,609.6
516.3
3,125.9

Other:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

335.1
2,465.02,800.2

629.9
2,775.1
3,405.0

330.3
2,778.3
3,108.6725.0
2,258.4
2,983.5

312.3
2,838.5
3,150.9

603.5
3,038.8
3,642.3

Total Deposits:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

26,286.5 26,982.5
4,318.6
5,032.9¥30,605.1 ¥32,015.5

25,001.4 27,819.1
7,329.5
4,304.0¥32,330.9 ¥32,123.1

23,294.1 24,358.4
14,463.0 10,084.2¥37,757.2 ¥34,442.7

Note: ※Liquid deposits include current deposits, ordinary deposits, savings deposits and deposits at notice.

Breakdown of Depositors
Billions of yen
2000
March 31,

Individuals ......................................................................
Corporations ...................................................................
Total ......................................................................

1999

1998

Amount% of total

Amount% of total

Amount% of total¥11,642.1
13,064.1¥24,706.3

47.12%
52.88
100.00%¥11,294.2
12,805.1¥24,099.3

46.87%
53.13
100.00%¥11,391.8
11,410.9¥22,802.7

49.96%
50.04
100.00%Notes: 1. Overseas branches and the Japan Offshore Market Account are not included.
2. Figures have not been adjusted for deposits in transit between the Bank’s head office and branches.

116

Loans and Bills Discounted
Breakdown of Loans and Bills Discounted
Billions of yen
2000

1999

1998

Years ended March 31,

AveragebalanceEndbalance

Averagebalance

Loans on Notes:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

¥3,216.9
620.5
3,837.5¥3,465.8
551.8
4,017.7¥ 3,439.3 ¥ 3,332.7
999.7
737.1
4,439.0
4,069.8¥ 3,369.4 ¥ 3,026.6
1,689.5
1,331.5
5,058.9
4,358.1

Loans on Deeds:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

14,621.2
4,589.8
18,911.0

15,521.6
3,512.8
19,034.4

14,310.0
6,538.2
20,848.3

14,458.7
4,971.2
19,430.0

13,891.4
10,264.7
24,156.2

13,824.9
7,776.1
21,601.1

Overdrafts:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

6,629.9
14.2
6,644.2

7,969.5
12.3
7,981.9

6,069.2
18.2
6,087.4

6,052.1
13.9
6,066.1

4,332.0
17.6
4,349.6

5,333.8
13.6
5,347.5

Bills Discounted:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

189.0
0.0
189.0

233.5
0.0
233.5

613.9
5.6
619.6

227.2
0.0
227.2

769.5
11.3
780.8

713.2
10.5
723.7

24,657.2 27,190.6
4,924.6
4,077.0¥29,581.9 ¥31,267.6

24,432.6 24,070.9
7,561.8
5,722.3¥31,994.4 ¥29,793.3

AveragebalanceEndbalance

22,362.4 22,898.7
11,983.2
9,131.8¥34,345.6 ¥32,030.5

Loans to Retail Sectors
Billions of yen
2000
March 31,

Total Loan Balance .........................................................
Loans to Small/Medium Businesses ..............................
% of Total Loans ............................................................

Number ofcustomers

1999
Endbalance

1,036¥27,609.5
1,031
19,419.7
99.44%
70.33%

Notes: 1. “Number of customers” is shown in thousands.
2. Overseas branches and the Japan Offshore Market Account are not included.

117

Number ofcustomers

1998
Endbalance

1,183¥24,581.7
1,177
17,355.9
99.53%
70.61%

Number ofcustomersEndbalance

1,198¥23,442.0
1,193
17,756.3
99.56%
75.75%NON-CONSOLIDATED

Total:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

EndbalanceThe Fuji Bank, Limited

Non-Consolidated Data File
Breakdown of Loans by Purpose of Funds
Billions of yen
March 31,

Funds for Capital Investment ..................................................................................................
Funds for Working Capital ......................................................................................................
Total ...............................................................................................................................

2000

1999

1998

¥ 10,525.6
20,741.9¥ 31,267.6¥11,023.3
18,769.9¥29,793.3¥11,550.1
20,480.3¥32,030.5

Major Lending Classifications
Billions of yen

NON-CONSOLIDATEDMarch 31,

2000

1999

1998

Domestic Offices (excludes loans booked in overseas branches and the Japan offshore market):
Manufacturing ..................................................................................................................... ¥ 3,706.5
Agriculture ..........................................................................................................................
45.0
Forestry ................................................................................................................................
2.7
Fisheries ...............................................................................................................................
10.2
Mining ..................................................................................................................................
27.0
Construction ........................................................................................................................
1,081.7
Utilities ................................................................................................................................
217.1
Transportation and Communications ................................................................................
947.0
Wholesale and Retail ..........................................................................................................
3,941.2
Finance and Insurance ........................................................................................................
3,930.4
Real Estate ...........................................................................................................................
2,683.6
Services ................................................................................................................................
4,787.6
Local Governments .............................................................................................................
207.1
Others ..................................................................................................................................
6,022.0
Total Domestic ...............................................................................................................
27,609.5¥ 3,240.0
48.2
2.8
12.2
27.8
1,092.0
45.2
805.5
3,665.4
2,338.5
2,233.5
4,716.6
192.4
6,160.9
24,581.7¥ 3,016.8
61.7
2.5
10.8
27.6
1,094.0
54.0
985.2
3,656.2
2,119.9
2,271.9
4,369.2
167.8
5,603.7
23,442.0

Overseas Offices (includes loans booked in overseas branches and the Japan offshore market):Public Sector .........................................................................................................................
Financial Institutions...........................................................................................................
Commerce and Industry ......................................................................................................
Others ...................................................................................................................................
Total Overseas ...............................................................................................................
Total ................................................................................................................................

155.6
998.4
4,019.1
38.3
5,211.6¥29,793.3

264.5
1,549.3
6,668.1
106.4
8,588.4¥32,030.5

137.4
534.7
2,968.5
17.3
3,658.0¥ 31,267.6

Collateral Information — Loans and Bills Discounted
Billions of yen
March 31,

2000

Securities ...................................................................................................................................
Commercial Claims ...................................................................................................................
Commodities .............................................................................................................................
Real Estate ................................................................................................................................
Others ........................................................................................................................................
Total Secured Loans ......................................................................................................
Guarantees ................................................................................................................................
Unsecured .................................................................................................................................
Total ...............................................................................................................................

118

¥

351.3
649.3
—
2,860.7844.8
4,706.3
13,818.2
12,743.0¥31,267.6

1999

¥

420.1
675.8
—
3,190.2
860.1
5,146.4
13,113.9
11,532.8¥29,793.3

1998

¥

486.5
825.0
—
3,716.9
1,042.1
6,070.7
13,711.7
12,248.0¥32,030.5

Collateral Information — Acceptances and Guarantees
Billions of yen
March 31,

2000

Securities ...................................................................................................................................
Commercial Claims ...................................................................................................................
Commodities .............................................................................................................................
Real Estate ................................................................................................................................
Others ........................................................................................................................................
Total Secured Loans ......................................................................................................
Guarantees ................................................................................................................................
Unsecured .................................................................................................................................
Total ...............................................................................................................................

¥

7.5
42.4
—
20.5
75.4
146.0
262.1
2,392.1¥ 2,800.3

1999

¥

5.8
51.4
—
29.8
180.3
267.5
327.8
2,598.6¥3,193.9

1998

¥

10.7
39.8
—
47.3
155.5
253.3
668.5
2,994.0¥3,915.9

Housing / Consumer Loans
Billions of yen
March 31,

Housing Loans ..........................................................................................................................
Consumer Loans .......................................................................................................................

2000

1999

1998

¥ 5,587.3
431.3¥5,420.7
439.6¥5,256.0
491.3

Loans to Developing Countries
Billions of yen
March 31,

1999

5
¥68.1
0.14%

4
¥113.7
0.24%

1998

10
¥8.3
0.01%

Note: Specific loans to developing countries are loans subject to provisions for possible loan losses (Specific Reserve for Loans to Developing Countries)
as stipulated in the account settlement standards applicable to banks.

119

NON-CONSOLIDATED

Number of Countries ................................................................................................................
Balance of Loans .......................................................................................................................
Balance of Loans as a Percentage of Total Assets ...................................................................

2000

The Fuji Bank, Limited

Non-Consolidated Data File
Securities
Breakdown of Securities Holdings
Billions of yen

NON-CONSOLIDATED

2000

1999

1998

Years ended March 31,

AveragebalanceEndbalance

AveragebalanceEndbalance

AveragebalanceEndbalance

Japanese Government Bonds:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

¥1,442.4—
1,442.4¥ 1,664.0—
1,664.0¥1,131.1—
1,131.1¥1,014.0—
1,014.0¥1,101.2—
1,101.2¥1,090.2—
1,090.2

Japanese Local Government Bonds:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

166.5
—
166.5

135.9
—
135.9

307.5
—
307.5

237.5
—
237.5

334.5
—
334.5

368.9
—
368.9

Corporate Bonds:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

287.5
—
287.5

274.0
—
274.0

412.8
—
412.8

367.1
—
367.1

474.8
—
474.8

481.0
—
481.0

Corporate Stocks:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

3,364.1—
3,364.1

3,272.0—
3,272.0

3,425.4—
3,425.4

3,439.2—
3,439.2

3,397.6—
3,397.6

3,474.6—
3,474.6

Other:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

190.8
848.1
1,039.0

186.9
894.6
1,081.6

199.7
709.4
909.1

179.9
599.8
779.8

244.1
656.3
900.4

195.6
640.2
835.8

Total Securities:
Domestic ....................................................................
International ..............................................................
Total .....................................................................

5,451.6
848.1¥6,299.8

5,533.1
894.6¥ 6,427.7

5,476.8
709.4¥6,186.2

5,237.9
599.8¥5,837.7

5,552.4
656.3¥6,208.8

5,610.5
640.2¥6,250.7120

Asset Liability Management
Composition of Time Deposits by Type and Maturity
Billions of yen
Three months
to less
than sixmonthsSix months
to less
than oneyear

One yearto less
than twoyears

Two years
to less
than three
years

Three
years and
over

Total

¥2,154.6¥2,892.5¥ 729.5¥ 710.2¥ 217.4¥11,600.1

2.2¥2,376.8

0.0¥2,919.0

0.0¥ 754.7

0.0¥ 711.1

0.0¥ 220.5

5.2¥13,741.6

One yearor lessMore than
one year to
three years

More than
three years
to five
years

More than
five years
to seven
years

Over sevenyears

Unspecified
term

Total

Floating Interest Rate............................... ¥....
Fixed Interest Rate ..................................
....
Total .............................................. ¥ 7,440.1¥1,952.5
1,393.4¥3,345.9¥2,097.8
904.5¥3,002.5¥ 882.1
402.6¥1,284.8¥ 5,335.1
2,875.5¥8,210.7¥7,983.1—¥7,983.1

March 31, 2000

Less thanthreemonthsTime Deposits with DeregulatedInterest Rates (fixed) ............................. ¥ 4,895.7
Time Deposits with DeregulatedInterest Rates (floating) ........................
2.9
Total ............................................ ¥ 6,759.3
Note: Installment time deposits are not included.

Composition of Loans by Type and Maturity
Billions of yen

March 31, 2000

¥

....
....
¥31,267.5

Composition of Securities Holdings by Type and Maturity
Billions of yen
More thanMore than
three years
five years
to five years to seven years

More thanseven years
to ten yearsOver
ten years

Unspecified
termJapanese Government Bonds ..................
Japanese Local Government Bonds .........
Corporate Bonds ......................................
Corporate Stocks ......................................
Others .......................................................
Foreign Corporate Bonds ....................
Foreign Corporate Stocks ....................
Securities Lent ..........................................

¥748.8
9.2
48.9
....
129.5
128.0
....
—

¥ 36.4
10.0
69.0
....
138.9
131.7
....
—

¥656.7
1.2
75.5
....
177.0
161.4
....
2.3

¥119.1
94.5
47.4
....
61.8
42.4
....
0.6

¥ —
—
—
....
77.2
77.2
....
—

¥

121

¥ 99.8
20.9
33.1
....
28.7
11.5
....
—

—
—
—
3,272.0
467.5
0.5
341.1
—

Total

¥1,661.0
135.9
274.0
3,272.0
1,081.2
553.0
341.1
3.0

NON-CONSOLIDATEDMarch 31, 2000

One yearor lessMore than
one year to
three years

The Fuji Bank, Limited

Non-Consolidated Data File
Facilities and Premises/Personnel
Number of Branches
March 31,

Domestic:
Branches ..............................................................................................................................
Sub-branches .......................................................................................................................
Overseas:
Branches ..............................................................................................................................
Sub-branches .......................................................................................................................
(Representative offices) ......................................................................................................
Total ...............................................................................................................................

2000

1999

1998

277
30

284
34

290
43

17
3
(9)
327

19
2
(10)
339

25
1
(21)
359

Investment in Facilities
Billions of yen
Year ended March 31, 2000

BudgetPaid

Expected
expenditure

Tama Computer Center ............................................................................................................

¥10.4

¥—

¥10.4

March 31,

2000

1999

1998

Cash Dispensers.........................................................................................................................
Automatic Tellers .....................................................................................................................
Automatic Passbook Entry Machines .....................................................................................
Total ...............................................................................................................................

336
3,182
342
3,860

359
3,226
369
3,954

519
3,399
369
4,287

NON-CONSOLIDATED

Number of ATMs

Personnel
2000
March 31,

Number of
employees

Averageage

1999

Average lengthof employment

Average monthly
salary (yen)Number of
employees

years - months years - months

Male .......................................
Female ...................................
Total or Average ..............

8,985
4,582
13,567

39-9
30-7
36-8

17-3
10-1
14-10

Averageage

Average length Average monthlyof employment
salary (yen)years - months years - months¥598,856
265,880¥486,400

9,398
4,578
13,976

39-8
30-3
36-7

17-2
10-0
14-10

¥594,252
265,250¥486,484

Notes: 1. “Number of employees” does not include non-regular or locally hired staff at the overseas offices, which totaled 2,639 and 2,737 as of March
31, 2000 and 1999, respectively.
2. “Average monthly salary” was calculated on the basis of total salary paid in March plus overtime allowance. This figure does not include annual
bonus payments.
3. The stipulated age of retirement for employees is 60 years of age.
However, in certain cases where deemed necessary by the Bank, employees may be rehired as a non-regular employee for a fixed term.

122Principal Ratios
BIS Capital Ratio on a Non-consolidated Basis
Billions of yen
March 31,

2000

1999

1998

¥ 2,415.0¥ 2,360.5

….

—
99.3
176.7
1,620.9
1,897.0
310.9¥ 4,001.1

—
101.8
185.2
1,507.5
1,794.6
300.9¥ 3,854.1

….
….
….
….
….
….
….

Risk-Adjusted Assets:
On-Balance Sheet Exposure ...............................................................................................
Off-Balance Sheet Exposure ...............................................................................................
Equivalent Market Risk / 8% .............................................................................................
Total ................................................................................................................................

¥30,724.4
2,870.1
114.2¥33,708.8¥29,942.4
3,272.9
196.9¥33,412.3

….
….
….
….

Total Capital Ratio ....................................................................................................................

11.86%

11.53%….

Tier I Capital..............................................................................................................................
Tier II Capital:
Unrealized Gains on Securities, after 55% Discount .......................................................
Land Revaluation Account, after 55% Discount ..............................................................
General Reserve for Possible Loan Losses .........................................................................
Subordinated Debt and Other ............................................................................................
Total ................................................................................................................................
Less ............................................................................................................................................
Total Qualifying Capital ...........................................................................................................

Notes: 1. Figures in this table are calculated in accordance with guidelines established by the Financial Supervisory Agency and the Ministry of Finance.
2. Disclosed beginning with the term ended March 31, 1999.
3. The Bank issued preferred securities through Fuji JGB Investment L.L.C., a wholly-owned indirect subsidiary of the Bank. The preferred
securities are treated as consolidated and non-consolidated Tier I capital of the Bank.
Please refer to “Consolidated Capital Ratio” on page 109.

Years ended March 31,

2000

1999

1998

Net Income as a Percentage of:
Average Total Assets* (ROA) ................................................................................................
Average Shareholders’ Equity................................................................................................

0.24%
4.38%

—
—

—
—

2000

1999

1998

Domestic .................................................................................................................................
International ..........................................................................................................................
Total ..................................................................................................................................

1.93%
10.24
3.61

2.13%
9.10
3.96

2.24%
8.02
4.44

Cost of Funds (Yield on Interest Bearing Liabilities) – B :Domestic .................................................................................................................................
International ..........................................................................................................................
Total ..................................................................................................................................

1.55
10.21
3.31

1.92
8.48
3.71

2.18
7.50
4.27

Overall Margin on Funds (A – B):
Domestic .................................................................................................................................
International ..........................................................................................................................
Total ..................................................................................................................................

0.38
0.02
0.30%

0.21
0.61
0.25%

0.06
0.52
0.17%

Notes: * Excluding Customers’ Liabilities for Acceptances and Guarantees

Margin on Funds
Years ended March 31,

Yield on Funds (Yield on Interest Earning Assets) – A :123

NON-CONSOLIDATEDReturn on Equity and Assets

The Fuji Bank, Limited

Non-Consolidated Data File
Ratio of Loans to Deposits
Billions of yen
March 31,

2000

1999

1998

Loans:
Domestic ................................................................................................................................. ¥27,190.6
International ..........................................................................................................................
4,077.0
Total .................................................................................................................................. ¥31,267.6¥24,070.9
5,722.3¥29,793.3¥22,898.7
9,131.8¥32,030.5

Deposits:
Domestic ................................................................................................................................. ¥26,982.5
International ..........................................................................................................................
5,032.9
Total .................................................................................................................................. ¥32,015.5¥27,819.1
4,304.0¥32,123.1¥24,358.4
10,084.2¥34,442.7

Ratio of Loans to Deposits:
Domestic .................................................................................................................................
International ..........................................................................................................................
Total ..................................................................................................................................

100.77%81.00
97.66%

86.52%
132.9592.74%

94.00%
90.55
92.99%

Average Balance Outstanding During Year:
Domestic .................................................................................................................................
International ..........................................................................................................................
Total ..................................................................................................................................

93.80%
114.0396.65%

97.72%
103.1698.95%

96.00%
82.85
90.96%

Deposit / Loan Balance per Office and Employee

NON-CONSOLIDATED

Billions of yen
March 31,2000

Per office
1999

1998

2000

Per employee
1999

1998

Deposits:
Domestic .................................................................................................
Overseas ..................................................................................................
Total ..................................................................................................

¥107.5131.4¥108.8¥105.9106.3¥106.0¥ 96.1262.2¥109.3

¥2.4
1.2
¥2.3

¥ 2.3
1.1
¥ 2.2

¥ 2.1
3.2
¥ 2.2

Loans:
Domestic .................................................................................................
Overseas ..................................................................................................
Total ..................................................................................................

¥ 99.6214.9¥106.3¥ 86.5273.9¥ 98.3¥ 80.8343.2¥101.6

¥2.2
2.0
¥2.2

¥ 1.9
2.9
¥ 2.0

¥ 1.7
4.2
¥ 2.1

Number of Offices:
Domestic .................................................................................................
Overseas ..................................................................................................
Total ..................................................................................................

277
17
294

284
19
303

290
25
315

Notes: 1. Sub-branches are not included in the number of offices.
2. Number of employees denotes average number of employees for the year. The number of employees for domestic offices includes head office
employees.

124Common Stock
Stockholder Information
2000
March 31,

Number ofstockholders

Number of stocks held
(thousands)

Central/Local Governments .........................................................................................................................
Financial Institutions ...................................................................................................................................
Securities Companies ....................................................................................................................................
Other Corporate Entities ..............................................................................................................................
Foreign Corporations, etc. ............................................................................................................................
Individuals and Other ...................................................................................................................................
Total ....................................................................................................................................................

4
229
77
5,847
648
44,55851,363

5,795( 0.17%)
969,906 ( 28.26 )
18,084 ( 0.53 )1,796,058 ( 52.32 )444,021 ( 12.93 )
198,776 ( 5.79 )3,432,640 (100.00%)

Breakdown of Stockholders’ Interests
2000
Number ofstockholders

March 31,1,000 share units and above..........................................................................................................................
500 share units and above.............................................................................................................................
100 share units and above.............................................................................................................................
50 share units and above ...............................................................................................................................
10 share units and above ...............................................................................................................................
5 share units and above .................................................................................................................................
1 share unit and above...................................................................................................................................
Total ....................................................................................................................................................

Number of stocks held
(thousands)

417 ( 0.81%) 2,856,213 ( 83.21%)
199 ( 0.39 )144,712 ( 4.21 )
794 ( 1.55 )180,788 ( 5.27 )
562 ( 1.09 )38,904 ( 1.13 )6,134 ( 11.94 )104,992 ( 3.06 )7,215 ( 14.05 )45,279 ( 1.32 )36,042 ( 70.17 )61,752 ( 1.80 )51,363 (100.00%) 3,432,640 (100.00%)

Yen
Years ended March 31,

2000

1999

1998

Highest ......................................................................................................................................
Lowest .......................................................................................................................................

¥ 1,493
711

¥829
252

¥1,840440

Note: Fuji Bank stocks are listed on the first section of the Tokyo Stock Exchange.

125

NON-CONSOLIDATEDFuji Bank Stock PriceInvestor Information on The Fuji Bank, Limited

Principal Shareholders
Common Stock

Head Office5-5, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-0004, Japan
Phone: 03-3216-2211
Telex: 22367, 22722, 22170
Internet address:
http://www.fujibank.co.jp

The ten principal shareholders of the Bank and their respective
shareholdings as of March 31, 2000:
Number ofPercentage inStocks Held
Total Stocks(in thousands) Issued (%)

Established1880

The Yasuda Mutual Life Insurance Company .......
The Yasuda Fire and Marine Insurance Co., Ltd...
The Dai-ichi Mutual Life Insurance Company ......
State Street Bank and Trust Company....................
The Sumitomo Trust & Banking Co., Ltd.* ..........
Nippon Life Insurance Company ............................
The Chase Manhattan Bank N.A. (London) .........
Nissan Motor Co., Ltd. ............................................
The Nichido Fire & Marine Insurance Co., Ltd.....
Taiheiyo Cement Corporation ................................
Total .........................................................................

Fiscal Year
April 1 to March 31
AuditorCentury Ota Showa & Co.
Paid-in Capital¥1,039,544 million
Number of Authorized Stocks
Common StockClass I Preferred StockClass II Preferred StockClass III Preferred StockClass IV Preferred Stock

5.43
2.74
2.69
2.16
1.91
1.90
1.76
1.50
1.41
1.38
22.91

52,411100.00150,000

100.00125,000

100.00125,000

100.00Preferred StockFirst Series Class I
FIFB Holding Services (BVI) Ltd.** .....................
Second Series Class IV
Resolution and Collection Corporation ................
Third Series Class III
Resolution and Collection Corporation ................
Fourth Series Class III
Resolution and Collection Corporation ................

10,000,000,000 shares
82,411,000 shares
500,000,000 shares
500,000,000 shares
500,000,000 shares

Number of Outstanding Stocks
Common Stock
3,443,892,343 sharesFirst Series Class I Preferred Stock
52,411,000 shares
Second Series Class IV Preferred Stock 150,000,000 shares
Third Series Class III Preferred Stock 125,000,000 shares
Fourth Series Class III Preferred Stock 125,000,000 shares
Number of Shareholders
Common StockFirst Series Class I Preferred Stock
Second Series Class IV Preferred Stock
Third Series Class III Preferred Stock
Fourth Series Class III Preferred Stock
Listings
Tokyo Stock Exchange
Osaka Securities Exchange
Kyoto Stock Exchange

187,066
94,517
92,97874,40665,86165,49360,633
51,774
48,85747,600789,187* Of the shareholdings of The Sumitomo Trust & Banking Co., Ltd., stocks related tothe trust business are included.
** FIFB Holding Services (BVI) Ltd. is the trustee for Fuji International Finance(Bermuda) Trust.

Shareholdings of the Board of Directors & Senior Overseers(as of July 1, 2000)

60,7041
1
1
1

Number of
Stocks Held(in thousands)*

Chairman of the Board
Toru Hashimoto ................ 51
President & CEO
Yoshiro Yamamoto ............ 36
Deputy Presidents
Tosaku Harada .................. 30
Toshiyuki Ogura................ 20
Senior Managing Director

Sapporo Stock Exchange
London Stock Exchange
Paris Stock Exchange*(*Delisted on May 29, 2000)

Member of the Board of Directors

Shareholders’ Meeting
The general meeting of shareholders is scheduled in Juneevery year at the Bank’s headquarters. In addition, extraordinary meetings can be held whenever necessary.

Masaaki Sato ...................... 13
Managing Directors
Members of the Board of Directors

Isao Hiraide........................ 16
Atsushi Takano ................. 17

Terunobu Maeda ............... 23
Hiroaki Shinoda................. 13
Teruhiko Ikeda .................. 19
Seiji Satomura.................... 11
Yukio Obara ......................... 8
Kenji Watanabe ................. 15
Senior Overseers
Soichi Hirabayashi............. 22
Takeie Ukita ...................... 13
Kouichi Sakatsume .............. 5
Yuji Oshima ....................... —Toshiaki Hasegawa............ —*as of May 31, 2000

None of the Directors have any interest in any transactions which are orwere unusual in their nature or conditions or significant to the business ofthe Fuji Bank Group and which were effected by the Bank during thecurrent or immediately preceding financial year or which were effected by
the Bank during an earlier financial year and remain in any respect
outstanding or unperformed.
For further information concerning the contents of this annual report, please contact the International Division located at our head office.
126

Investor Information on Mizuho Holdings, Inc.

PurposeThe purpose of Mizuho Holdings, Inc. (the “Company”)
shall be to engage in the following businesses as a bankholding company and a long-term credit bank holding
company:( i ) operation and management of banks, long-term credit
banks, specialized securities companies or othercompanies which the Company may own as its
subsidiaries under the Banking Law or the Long-Term
Credit Bank Law; and(ii) any other business incidental to the foregoing.

In connection with the stock-for-stock exchange, The
Dai-Ichi Kangyo Bank, Limited, The Fuji Bank, Limited and
The Industrial Bank of Japan, Limited will delist theircurrently-listed common stock as of September 22, 2000.
* With respect to the share transfer, one share of Mizuho Holdings, Inc.
shall be allocated to 1,000 shares of each of the three banks.

Convocation of General Meetings of Shareholders
A regular general meeting of shareholders of the Company
shall be convened no later than three months from the last
day of each business year, and an extraordinary general
meeting of shareholders shall be convened whenevernecessary.

Head Office
Marunouchi Center Building, 6-1, Marunouchi 1-chome,
Chiyoda-ku, Tokyo

Record Date
The Company shall deem shareholders having voting rights
appearing on the last register of shareholders (including theregister of beneficial shareholders; the same shall apply
hereinafter) as of March 31 of each year as the shareholders
who shall be entitled to exercise their rights at the regular
general meeting of shareholders for the corresponding fiscal
term.
The Company may, whenever necessary, set an
extraordinary record date, pursuant to a resolution of theBoard of Directors and upon issuing prior public notice
thereof.

Date of Establishment
September 29, 2000
Paid-in Capital¥2,572 billion
Total Number of Shares
Common Stock:
Class I Preferred Stock:
Class II Preferred Stock:
Class III Preferred Stock:
Class IV Preferred Stock:
Class V Preferred Stock:
Class VI Preferred Stock:
Class VII Preferred Stock:
Class VIII Preferred Stock:
Class IX Preferred Stock:
Class X Preferred Stock:

9,205,856.53 shares
33,000 shares
100,000 shares
100,000 shares
150,000 shares
52,411 shares
150,000 shares
125,000 shares
125,000 shares
140,000 shares
140,000 shares

Dividends
Dividends on shares shall be paid to the shareholders or
registered pledgees appearing on the last register ofshareholders as of March 31 of each year and to the holdersof fractional shares appearing on the last register of holdersof fractional shares as of March 31 of each year.
Interim Dividends
The Company may, by a resolution of the Board of
Directors, make cash distributions pursuant to theprovisions of Article 293-5 of the Japanese Commercial
Code to the shareholders or registered pledgees appearing
on the last register of shareholders as of September 30 ofeach year and to the holders of fractional shares appearing
on the last register of holders of fractional shares as of
September 30 of each year.

Accounting Auditors
Century Ota Showa & Co.
ChuoAoyama Audit Corporation
Stock Listing
Application will be made for the listing of the common
stock (as a new listing) of the Company on the Tokyo Stock
Exchange and the Osaka Securities Exchange.
The listing date(s) will be determined in accordancewith the rules of each stock exchange. However, at present
the listing date is planned for September 28, 2000, the dateon which the stock-for-stock exchange is to be effected. *Transfer AgentThe Dai-Ichi Kangyo Fuji Trust & Banking Co., Ltd. **** The Dai-Ichi Kangyo Fuji Trust & Banking Co., Ltd. and IBJ Trustand Banking Co., Ltd. will be merged into Mizuho Trust & Banking Co.,
Ltd. on October 1, 2000.

This annual report is printed on recycled paper.
Printed in Japan
127