Slides 1

Financial Sector: Q3 FY2013 Results from Japanese Banks

Corporate and Individual Loans

Loans/Deposits: MUFJ & Mizuho

Individual loans (other than housing) would be in the 2.2 Trillion Others section

Unsecured lending and guarantees would be approx. half.

Mizuho has 65.3Tn Yen of loans, hasnt increased overseas lending as rapidly as MUFJ

Banking Slides: MUFJ

Domestic Deposit/Lending Rates

Low Interest Rate environment

MUFJ and other banks make higher margin on individual loans over corporate loans

Domestic/Overseas Lending

Overseas corporate lending is 33% of corporate loans

MUFJ: Growing Overseas lending by 50% to 18Tn JPY

India and Korea are 18% combined

ASEAN presumably is Thailand, Indonesia, and Singapore

Greater China is HK and China which are very different, and percentage of foreign lending is lower in China

Customer business gross profits

From H2 FY09 (3 years), non-Japanese profits ratio just rose from 54.1% to 58.7% but Investment Banking profit doubled, Loan profits up by 50%, Deposit profits up by over 2x

Sumitomo Trust Looks for Higher Returns by Investing in Foreign Assets and Alternative Investments

Sumitomo Mitsui Trust Holdings

Government bonds are 50% of available securities

Real estate lending expanding, focusing on individuals and REITS

20% of AUM is due to Nikko Asset management

Custody and Pension business large but assets under management flat

Global Markets and Retail Financial services are #1 and #2 drivers of gross profits, but global markets is #1 in net profits

Asia Expansion in a Quest for Higher Loan Margins Overseas

MUFJ: Holdings of Investment Securities and Asia Strategy

Holdings of investment securities 93% are bonds

60% of total is government bonds

Another 27% is foreign bonds

Asia Strategy (2)

In Asia Developed Markets like HK, Australia, and Singapore, high percentage of foreign lending

India and Korea also stand out for high rate of MNC focused lending

Asia Strategy: Competing with Foreign banks like HSBC

3rd position in China behind HSBC and Citi

2nd behind HSBC In Korea

Retail strategy in Japan focused on private banking, wealth management and mass affluent advisory

Aozora: Recent Change in Ownership

12% of loans are overseas, relatively flat

Reflecting former owners, Cerberus, over 25% were LBO loans

50% of securities in JGBs, with another 30% in foreign bonds, and 15% in other investments

Very different portfolio mix compared to large Japanese banks

Consumer Finance

ACOM has managed to increase market share from 19.0% to 32% in 3 years while unsecured loans have declined 40%

Guarantee business growing

BTMU BANQUIC

Looking at Retail: revolving Credit Balance Increasing, Card Loan products sales increasing almost 8x in 3 years

Yet Retail is only the 4th priority on the basic strategy slide

Consumer Finance

ACOM has managed to increase market share from 19.0% to 32% in 3 years while unsecured loans have declined 40%

Guarantee business growing

BTMU BANQUIC

Looking at Retail: revolving Credit Balance Increasing, Card Loan products sales increasing almost 8x in 3 years

Yet Retail is only the 4th priority on the basic strategy slide

Investment Banking: Sales & Trading

Sumitomo Mitsui Trust & Shinsei

Increased holdings of JGBs while MUFJ lowered there holdings

Overall increase in JPY bonds 20%

Increased holdings of US Treasuries as a hedge?

Reduced cross-shareholdings

Shinsei increasing customers in LAKE consumer finance business, but cannibalizing existing customers, as overall number of consumer finance customers decline

Loosening approval standards?

Sumitomo Mitsui Financial

Overseas deposit balance but likely institutional, not retail

Almost 20% of net income is due to Consumer Finance and Credit Cards

While the same risk evaluation is used to drive the guarantee business

Overseas loan balance growing by over 50% in 3 years

Growth in guarantee business replacing individual guarantees by family or friends, driven by changes in society

Shinsei

Shinsei has a higher net interest marginbecause its investments carry higher risk?

Growth in housing loans, and balance by 20% in overall loan balance

Consumer Finance

Consumer Finance : Competition Increasing and margins decreasing

Approval rates are increasing

New customer growth flat so lending more to existing customers?

But overall loan balance has decreasing in 2 years

Loan guarantee business growing while consumer loans decreasing

Tokyo Star Bank

83% of domestic bond holdings were JGBs, while 16% were corporate bonds

Increased JGB bond holdings by 30% in 3 months to Dec 2012

2.1Tn in loans, of which almost 90% to individuals

Of 1.4Tn of securities, almost 70% in foreign government bonds

Retail Business: MUFJ

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2/11/13