Foreign Banks in Japan Survey 2016

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Foreign Banks in Japan Survey 2016

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About KPMG KPMG Global Financial Services KPMG Global Financial Services provides professional services to clients who can benefit from the collective knowledge and capabilities of our 155 member firms across the globe. KPMG Global Financial Services has more than 34,000 partners and professionals across our global network, providing audit, tax and advisory services to the retail banking, corporate and investment banking, investment management and insurance sectors. Financial Services in Japan KPMG Financial Services in Japan, with over 1,200 audit, tax and advisory professionals servicing the financial services industry, has a long history of assisting both Japanese and foreign financial institutions to achieve their business objectives, in the Japanese market and beyond. KPMG in Japan leverages the scope and strength of KPMG Global Financial Services practice, offering professional services to a number of major organizations in the financial services industry in areas such as capital and liquidity management, risk management, transaction and post-acquisition assistance, as well as dealing with the changing regulatory landscape across multiple time zones and several languages. We believe our commitment to the industry and our passion in serving our clients to the very best of our ability help make us stand out. We would welcome the opportunity to discuss how KPMG can service you to achieve your business objectives. Should you require further information about our Financial Services practice, please contact your primary service professional at KPMG or Mr. Hiroyuki Yamada, Head of KPMG Financial Services Japan, at: KPMG AZSA LLC Financial Services OTEMACHI FINANCIAL CITY South Tower 1-9-7, Otemachi, Chiyoda-ku, Tokyo, 100-8172 Japan Tel: (81 3) 3548-5107 Fax: (81 3) 3548-5109 [email protected] http://www.kpmg.com/jp/fsj-en

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Foreign Banks in Japan Survey 2016

Contents About KPMG 1

Foreign Banks:

About this Survey

3



Items of Note

3



Summary of Banks

4



Summary of Financial Highlights

5



Financial Highlights by Bank

6



Ranking by Total Assets

16



Ranking by Ordinary Earnings (Losses)

17



Ranking by Expense/Income Ratio

18

KPMG Japan – Our Services 19

© 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Foreign Banks in Japan Survey 2016

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Foreign Banks About this Survey

Items of Note

KPMG is delighted to release our annual survey of the published financial statements of foreign banks operating in Japan.

Changes in foreign banks during the year

The financial information included in this survey represents the English translation of the condensed balance sheets of fifty-five foreign banks registered in Japan and their related condensed statements of income as of and for the year ended March 31, 2016. Among the fifty-five foreign banks, Citibank Japan Ltd. and Shinhan Bank Japan are incorporated locally, while the remaining foreign banks operate as branches in Japan. The condensed financial statements are prepared and published in accordance with the Banking Act of Japan requirements. Similar to previous surveys, all financial information is extracted principally from publicly available information, specifically The Nikkan Kogyo Shimbun, Fuji Sankei Business i. and the respective banks’ webpage, with the exception of certain information voluntarily provided by banking survey participants. We wish to thank the survey participants for their valuable contribution. Please note there may be revisions to the published financial information subsequent to March 31, 2016. The banks are listed in alphabetical order and include rankings by total assets, by ordinary earnings (losses), and by expense/income ratio. In accordance with the Banking Act of Japan, the foreign banks’ financial statements are presented in millions of yen. This survey is part of a comprehensive series of publications issued globally by KPMG’s Financial Services practice.

During the year ended March 31, 2016, the number of foreign banks in Japan has decreased by one to fifty-five as a result of the merger of two banks. The change in foreign banks operating in Japan is as follows: Change of name by merger • KEB Hana Bank (Changed after the merger of Korea Exchange Bank and Hana Bank) Other Foreign banks are required to provide information about non-performing loans in the notes to their financial statements. Certain banks did not present this information, indicating that there were no non-performing loans to be reported. For comparison purposes, the nonperforming loans section is left blank for those banks that did not present such information. Effective April 1, 2014, branches of foreign banks are required to retain assets of JPY 2,000 million in Japan as “Brought-in capital” in the balance sheet. The concept of “Brought-in capital” was newly established as a replacement for “Legal earned reserve”, and the outstanding balance of “Legal earned reserve” as of March 31, 2014 was fully transferred to the “Brought-in capital”. However, if “Legal earned reserve” of a branch as of March 31, 2014 was less than JPY 2,000 million, a transitional provision permits the branch to fulfill the requirement by March 31, 2017. Accordingly, branches of foreign banks that have “Brought-in capital” less than JPY2,000 million as of March 31, 2016 are in a transition process and are required to increase the “Brought-in capital” to the required amount by March 31, 2017.

© 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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Foreign Banks in Japan Survey 2016

Summary of Banks Bank

Page

Bank

Page

AGRICULTURAL BANK OF CHINA LIMITED

6

ING Bank N.V.

11

Australia and New Zealand Banking Group Limited

6

Intesa Sanpaolo S.p.A.

11

Banco Bilbao Vizcaya Argentaria

6

Itaú Unibanco S.A.

11

BANCO DO BRASIL S.A.

6

JPMorgan Chase Bank, N.A

11

Bangkok Bank Public Company Limited

7

KEB Hana Bank

11

Bank of America, N.A.

7

Kookmin Bank

12

BANK OF CHINA LIMITED

7

Korea Development Bank, The

12

Bank of Communications

7

Mega International Commercial Bank Co.,Ltd

12

Bank of India

7

Metropolitan Bank and Trust Company

12

Bank of New York Mellon, The

7

National Australia Bank Limited

13

Bank of Taiwan

7

National Bank of Pakistan

13

Barclays Bank PLC

8

Oversea-Chinese Banking Corporation Limited

13

BNP PARIBAS

8

PHILIPPINE NATIONAL BANK

13

Chang Hwa Commercial Bank

8

PT. Bank Negara Indonesia (Persero) Tbk

13

China Construction Bank

8

Royal Bank of Canada

13

Citibank Japan Ltd.

9

Royal Bank of Scotland plc, The

13

COMMERZBANK AKTIENGESELLSCHAFT

9

Shinhan Bank Japan

14

Commonwealth Bank of Australia

9

Société Générale

14

Crédit Agricole Corporate and Investment Bank

9

Standard Chartered Bank

14

CREDIT SUISSE AG

9

State Bank of India

14

CTBC Bank Co., Ltd.

9

State Street Bank and Trust Company

15

DBS BANK LTD.

9

UBS AG

15

DEPFA BANK plc

10

UniCredit Bank AG

15

Deutsche Bank AG

10

Union de Banques Arabes et Françaises

15

First Commercial Bank

10

UNITED OVERSEAS BANK

15

Hongkong and Shanghai Banking Corporation Limited, The

10

Wells Fargo Bank, National Association

15

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED

11

WOORI BANK

15

Industrial Bank of Korea

11

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Foreign Banks in Japan Survey 2016

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Summary of Financial Highlights (millions of yen)

Financial statements

Total of the fifty-five banks as of 3/31/16

Average as of 3/31/16

Total of the fifty-six banks as of 3/31/15

Average as of 3/31/15

Balance Sheet Assets Cash on hand and due from banks Call loans Securities purchased under agreements to resell Cash collateral paid for security borrowing Monetary claims purchased Specific transaction accounts assets Money in trusts Securities Loans and discounts Foreign exchange accounts Sundry accounts Property, plant and equipment Intangible assets Prepaid pension expense Deferred tax assets Customers' liability under guarantees and acceptances Reserve for loan losses Allowance for losses on investment Head office and branches interoffice receivables Total assets

25,503,886 1,384,786 1,121,214 2,943,078 146,618 1,258,230 1,290 1,943,704 6,800,006 1,050,366 2,404,137 31,571 8,680 520 26,570 1,157,966 (41,301) (13) 5,962,462 51,703,948

463,707 25,178 20,386 53,511 2,666 22,877 23 35,340 123,636 19,098 43,712 574 158 9 483 21,054 (751) (0) 108,408 940,072

21,631,779 2,413,759 913,620 2,109,053 191,569 1,698,491 1,309 2,258,704 7,108,675 1,304,163 2,923,351 34,399 6,865 390 34,046 1,321,701 (40,425) (56) 8,734,587 52,645,621

386,282 43,103 16,315 37,662 3,421 30,330 23 40,334 126,941 23,289 52,203 614 123 7 608 23,602 (722) (1) 155,975 940,100

Deposits Negotiable certificates of deposit sold Call money Securities sold under agreements to repurchase Cash collateral received for security lending Commercial paper Specific transaction accounts liabilities Borrowed money Foreign exchange accounts Sundry accounts Bonus allowance Retirement benefit obligation Deferred tax liabilities Bank's liability under guarantees and acceptances Head office and branches interoffice payables Sub-total

11,712,902 421,850 1,485,720 7,751 25,773 368,515 1,258,463 3,195,303 1,076,137 3,178,432 5,249 12,758 2,702 1,157,966 27,209,650 51,119,337

212,962 7,670 27,013 141 469 6,700 22,881 58,096 19,566 57,790 95 232 49 21,054 494,721 929,442

13,312,398 855,558 2,199,934 10,600 206 687,564 1,555,340 3,875,007 1,092,240 4,104,581 5,964 12,734 1,944 1,321,201 23,089,643 52,125,574

237,721 15,278 39,285 189 4 12,278 27,774 69,197 19,504 73,296 107 227 35 23,593 412,315 930,814

Capital stock Capital surplus/ reserve Brought-in capital Legal earned reserve Retained earnings (deficit) Unrealized gains (losses) on available-for-sale securities Deferred hedge gains (losses) Total liabilities and Net assets

138,100 136,100 134,043 2,000 165,587 6,050 2,712 51,703,948

69,050＊1 68,050＊1 2,529＊2 1,000＊1 3,011 110 49 940,072

138,100 136,100 120,156 2,000 119,054 4,822 (212) 52,645,621

69,050＊1 68,050＊1 2,225＊3 1,000＊1 2,126 86 (4) 940,100

Liabilities and Net assets

Income statement Ordinary income: Income on operated funds Including:[Interest on loans] [Interest and dividends on securities] Commission income Specific transaction accounts income Other operating income Other ordinary income Total ordinary income

303,905 [140,850] [10,021] 73,415 29,267 102,910 13,392 522,958

5,526 [2,561] [182] 1,335 532 1,871 243 9,508

335,216 [133,001] [11,917] 78,576 167,289 87,510 13,805 682,476

5,986 [2,375] [213] 1,403 2,987 1,563 247 12,187

Ordinary expenses: Funding cost Including:[Interest on deposits] Commission expenses Specific transaction accounts losses Other operating expenses General and administrative expenses Other ordinary expenses Total ordinary expenses Ordinary earnings (losses)

190,226 [53,169] 14,737 529 29,111 162,495 10,560 407,732 115,204

3,459 [967] 268 10 529 2,954 192 7,413 2,095

186,540 [52,556] 19,239 3,932 172,295 178,992 6,653 567,728 114,724

3,331 [939] 344 70 3,077 3,196 119 10,138 2,049

Extraordinary profits Extraordinary losses Earnings (losses) before income taxes

42,656 2,447 155,409

776 44 2,826

808 3,476 112,057

14 62 2,001

48,366 7,675 99,338

879 140 1,806

41,011 8,578 62,446

732 153 1,115

Income taxes-current Income taxes-deferred Net earnings (losses) Note (＊1) : Average of two banks - which are incorporated in Japan Note (＊2) : Average of fifty-three banks Note (＊3) : Average of fifty-four banks

© 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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Foreign Banks in Japan Survey 2016

Foreign Banks in Japan Survey 2016

7

Financial Highlights by Bank (millions of yen) Financial statements

AGRICULTURAL BANK OF CHINA LIMITED

Australia and New Zealand Banking Group Limited

Banco Bilbao Vizcaya Argentaria

BANCO DO BRASIL S.A.

Bangkok Bank Public Company Limited

Bank of America, N.A.

BANK OF CHINA LIMITED

Bank of Communications

Bank of India

Bank of New York Mellon, The

Bank of Taiwan

Balance Sheet Assets Cash on hand and due from banks Call loans Securities purchased under agreements to resell Cash collateral paid for security borrowing Monetary claims purchased Specific transaction accounts assets Money in trusts Securities Loans and discounts Foreign exchange accounts Sundry accounts Property, plant and equipment Intangible assets Prepaid pension expense Deferred tax assets Customers' liability under guarantees and acceptances Reserve for loan losses Allowance for losses on investment Head office and branches interoffice receivables Total assets

50,705 26,801 42,972 48,106 4,087 6,452 168 1 (102) 418,690 597,882

1,299,762 6,390 200 137,679 8,770 66,343 206 346 632 27,847 (321) 534,633 2,082,490

2,052 5,872 42,891 5 198 19 8,635 78 59,753

38,764 12,013 199,042 5,380 5,441 355 55 161 1,421 (9) 158,810 421,439

21,829 36,594 32,518 947 406 2,872 513 (812) 20 94,889

1,272,581 663 3,500 206,364 5,186 101,225 34 228 179 1,383 290,593 1,881,940

551,505 93,030 719 580,180 102,440 12,159 16,266 2 1,884 32,669 (5,333) 74,305 1,459,831

491,331 16,902 41,575 139,828 86,262 4,593 842 6 189 4,958 (551) 489,210 1,275,149

76,417 1,570 192,101 1,540 1,122 19 109 2,662 30,492 (9,456) 61,830 358,409

796,203 674,550 168,637 2,025 141 1,312 602 441 200 221 (3) 5,522 1,649,854

2,469 19,266 31,706 29,745 128 614 3 0 16 (651) 150 83,451

Deposits Negotiable certificates of deposit sold Call money Securities sold under agreements to repurchase Cash collateral received for security lending Commercial paper Specific transaction accounts liabilities Borrowed money Foreign exchange accounts Sundry accounts Bonus allowance Retirement benefit obligation Deferred tax liabilities Bank's liability under guarantees and acceptances Head office and branches interoffice payables Sub-total

21 10,000 1,685 31,813 412,684 5,191 27 1 138 129,892 591,456

964,694 15,344 0 67,117 204 9 27,847 998,524 2,073,741

0 424 7 67 8,635 48,562 57,698

132,448 4,165 3,267 253,804 4,943 3,339 39 376 1,421 5,307 409,113

36,345 39 212 19 127 513 54,940 92,199

665,098 29,337 101,652 69 285 1,383 1,082,457 1,880,284

252,300 30,319 55,100 16,935 390,441 62,982 16,144 1,123 178 32,669 570,817 1,429,012

54,849 2,000 431,727 11,991 73,216 409 5,605 10 44 4,958 679,720 1,264,534

271,807 1,126 173 2,136 13 269 52 30,492 41,634 347,705

68,070 72,725 1,522 17 440 221 1,501,620 1,644,617

2,448 46,841 1,686 21 10 16 29,471 80,497

Capital stock Capital surplus/ reserve Brought-in capital Legal earned reserve Retained earnings (deficit) Unrealized gains (losses) on available-for-sale securities Deferred hedge gains (losses) Total liabilities and Net assets

1,500 4,615 310 597,882

2,000 6,748 2,082,490

1,500 582 (27) 59,753

2,621 9,710 (6) 421,439

6,503 (3,813) 94,889

2,000 (343) 1,881,940

16,000 14,793 25 1,459,831

2,000 8,615 1,275,149

2,071 8,514 117 358,409

2,048 3,188 1,649,854

3,000 (70) 24 83,451

12,931 [665] [792] 28 277 13 13,250

8,639 [3,559] [-] 1,366 8,268 59 18,334

973 [843] [128] 124 1,098

11,405 [7,457] [-] 1,002 808 211 13,427

1,199 [1,000] [1] 115 91 706 2,112

4,451 [3,465] [-] 2,386 2,344 9,182

31,512 [18,941] [37] 3,419 144 688 35,764

11,473 [3,409] [368] 1,460 1,448 70 14,453

7,702 [6,632] [89] 232 754 8,688

7,209 [107] [-] 189 1,173 57 8,629

2,507 [761] [1,513] 24 906 296 3,734

Ordinary expenses: Funding cost Including:[Interest on deposits] Commission expenses Specific transaction accounts losses Other operating expenses General and administrative expenses Other ordinary expenses Total ordinary expenses Ordinary earnings (losses)

8,933 [0] 77 893 9,905 3,345

8,051 [6,140] 58 0 4,606 12,717 5,616

808 [-] 120 2 301 1,233 (134)

5,988 [1,533] 473 1 3,028 17 9,510 3,916

514 [64] 12 812 1,340 772

1,906 [36] 1,303 0 0 4,945 8,156 1,026

16,812 [1,121] 145 4,550 2,746 10 24,266 11,498

7,941 [986] 46 0 1,209 0 9,198 5,255

3,458 [2,121] 20 582 5,027 9,089 (401)

2,855 [33] 16 2,205 75 5,151 3,477

1,060 [4] 8 903 271 2,244 1,489

Extraordinary profits Extraordinary losses Earnings (losses) before income taxes

3,345

0 5,616

(134)

0 3,916

470 302

1,026

0 11,498

0 5,254

(401)

84 3,392

1,489

Income taxes-current Income taxes-deferred Net earnings (losses)

1,083 2,262

1,935 78 3,602

1 (135)

1,441 83 2,392

41 260

409 5 610

3,694 711 7,091

1,598 83 3,572

1,346 (1,535) (212)

1,514 28 1,850

362 1,126

-

11 16 28

-

-

447 3,721 4,168

-

90 444 534

-

1,941 7,009 5,740 2,545 17,235

-

12 252 264

Liabilities and Net assets

Income statement Ordinary income: Income on operated funds Including:[Interest on loans] [Interest and dividends on securities] Commission income Specific transaction accounts income Other operating income Other ordinary income Total ordinary income

Information on non-performing loans: Bankrupt loans Non-accrual loans Past due loans (3 months or more) Restructured loans Total non-performing loans

© 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

8

Foreign Banks in Japan Survey 2016

Foreign Banks in Japan Survey 2016

9

(millions of yen) Financial statements

Barclays Bank PLC

BNP PARIBAS

Chang Hwa Commercial Bank

China Construction Bank

Citibank Japan Ltd.

COMMERZBANK AKTIENGESELLSCHAFT

Crédit Agricole Corporate and Investment Bank

Commonwealth Bank of Australia

CREDIT SUISSE AG

CTBC Bank Co., Ltd.

DBS BANK LTD.

Balance Sheet Assets Cash on hand and due from banks Call loans Securities purchased under agreements to resell Cash collateral paid for security borrowing Monetary claims purchased Specific transaction accounts assets Money in trusts Securities Loans and discounts Foreign exchange accounts Sundry accounts Property, plant and equipment Intangible assets Prepaid pension expense Deferred tax assets Customers' liability under guarantees and acceptances Reserve for loan losses Allowance for losses on investment Head office and branches interoffice receivables Total assets

122,080 362,009 117,361 466,410 594,003 2,377 66,457 34 145 (99) 186,054 1,916,835

3,822,207 421 100,004 128,445 268,533 266,120 17,329 343,149 95 87 1,449 183,298 (562) 293,778 5,424,359

6,155 34,980 222 67 27 78 (356) 307 41,483

423,955 6,613 646,132 835 8,767 131 2 143 6,638 (864) 617,175 1,709,532

1,942,504 438,648 5,382 22,139 100,874 349,834 70,499 325,894 5 24 3,406 146,109 (981) 3,404,342

140,965 429,286 5,319 134,451 6,238 17,794 53 3,439 194 9,580 69,886 817,209

276,329 114,758 98,367 148 3,688 89 49 (316) 1,135 494,250

1,490,624 29,684 36,317 203,731 1,090 176,433 362,688 25,734 19,197 166 0 668 235,079 (204) 221,465 2,802,678

407,620 14,548 221 60,006 76,083 123 8,376 18 2,584 472,217 1,041,802

3,045 104,171 2,896 581 51 71 328 1,512 (265) 112,392

2,929 180,999 362 274 124 44 669 (1,809) 1,543 185,135

Deposits Negotiable certificates of deposit sold Call money Securities sold under agreements to repurchase Cash collateral received for security lending Commercial paper Specific transaction accounts liabilities Borrowed money Foreign exchange accounts Sundry accounts Bonus allowance Retirement benefit obligation Deferred tax liabilities Bank's liability under guarantees and acceptances Head office and branches interoffice payables Sub-total

57,534 26 117,361 5,000 118,441 89 528 1,612,711 1,911,693

1,213,823 304,000 270,000 467,634 3,037 361,082 299 2,013 183,298 2,603,267 5,408,458

9,882 5,100 98 31 78 24,654 39,847

28,003 50,286 846,150 58 12,568 143 78 6,638 752,086 1,696,013

1,985,244 2,811 13,130 584,093 392,969 303 3,361 146,109 3,128,025

5,983 25,145 232 6,692 24 291 9,580 765,834 813,785

1,861 4,851 7,703 75,100 15,430 62 36 222 385,127 490,395

1,179,820 1,384 50,494 203,689 106,707 1,206 10,065 186 115 235,079 1,001,193 2,789,944

428,371 258,000 113 12,500 329,869 20 1,283 181 1,030,338

30,434 10,400 17,500 16 1,058 21 124 1,512 48,181 109,248

432 2 38 180,950 181,422

Capital stock Capital surplus/ reserve Brought-in capital Legal earned reserve Retained earnings (deficit) Unrealized gains (losses) on available-for-sale securities Deferred hedge gains (losses) Total liabilities and Net assets

2,000 2,592 960 (410) 1,916,835

2,000 13,799 172 (70) 5,424,359

2,000 (363) 41,483

2,421 11,151 41 (95) 1,709,532

123,100 121,100 2,000 29,159 958 3,404,342

2,000 1,412 212 (201) 817,209

2,094 1,257 8 494 494,250

2,897 8,989 827 19 2,802,678

2,000 7,163 (4) 2,304 1,041,802

1,500 1,643 112,392

2,000 1,713 185,135

Ordinary income: Income on operated funds Including:[Interest on loans] [Interest and dividends on securities] Commission income Specific transaction accounts income Other operating income Other ordinary income Total ordinary income

3,375 [611] [74] 2,737 1,595 15,748 8 23,465

13,326 [7,679] [27] 4,828 18,173 2 36,331

696 [692] [-] 66 4 44 812

27,381 [11,593] [74] 600 254 595 28,831

20,056 [6,956] [469] 17,265 423 14,537 1,016 53,298

3,696 [2,596] [70] 1,948 0 5,645

5,599 [2,728] [547] 142 41 15 5,798

12,198 [4,725] [317] 3,934 0 618 268 17,020

5,732 [1,008] [(13)] 77 73 0 1 5,885

2,143 [2,142] [-] 320 14 0 2,478

3,431 [3,405] [24] 14 8 3,453

Ordinary expenses: Funding cost Including:[Interest on deposits] Commission expenses Specific transaction accounts losses Other operating expenses General and administrative expenses Other ordinary expenses Total ordinary expenses Ordinary earnings (losses)

13,056 [37] 1,761 4,478 76 19,372 4,092

20,457 [6,174] 381 6,718 139 27,695 8,635

54 [10] 4 226 50 335 476

19,610 [228] 108 9 1,316 21,044 7,786

7,715 [7,689] 2,597 68 45,206 135 55,723 (2,424)

581 [-] 682 409 1,935 0 3,609 2,036

2,153 [41] 23 134 535 0 2,847 2,951

5,596 [1,879] 618 89 3,974 20 10,299 6,721

1,649 [285] 54 1,212 2,514 0 5,431 453

491 [50] 32 868 1 1,393 1,084

1,918 [-] 3 2 300 565 2,788 665

Extraordinary profits Extraordinary losses Earnings (losses) before income taxes

4,092

8,635

476

0 7,786

42,159 389 39,345

2 2,034

2,951

0 6,721

0 453

1,084

0 665

Income taxes-current Income taxes-deferred Net earnings (losses)

936 560 2,595

3,773 26 4,835

55 (3) 424

2,616 107 5,062

12,832 857 25,655

1,064 (69) 1,040

399 682 1,870

396 2,316 4,008

139 107 207

350 (47) 781

789 (174) 50

-

2,530 2,530

124 124

660 660

3,374 3,374

-

-

117 117

-

100 100

-

Liabilities and Net assets

Income statement

Information on non-performing loans: Bankrupt loans Non-accrual loans Past due loans (3 months or more) Restructured loans Total non-performing loans

© 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

10

Foreign Banks in Japan Survey 2016

Foreign Banks in Japan Survey 2016

11

(millions of yen) Financial statements

DEPFA BANK plc

Deutsche Bank AG

First Commercial Bank

Hongkong and Shanghai Banking Corporation Limited, The

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED

Industrial Bank of Korea

ING Bank N.V.

Intesa Sanpaolo S.p.A.

Itaú Unibanco S.A.

JPMorgan Chase Bank, N.A

KEB Hana Bank

Balance Sheet Assets Cash on hand and due from banks Call loans Securities purchased under agreements to resell Cash collateral paid for security borrowing Monetary claims purchased Specific transaction accounts assets Money in trusts Securities Loans and discounts Foreign exchange accounts Sundry accounts Property, plant and equipment Intangible assets Prepaid pension expense Deferred tax assets Customers' liability under guarantees and acceptances Reserve for loan losses Allowance for losses on investment Head office and branches interoffice receivables Total assets

3,203 37 15 0 926 4,182

769,005 1,669 137,152 31,429 236,238 60,313 113,116 75 955 74,394 (1,015) 249,672 1,673,008

6,698 36,158 296 82 20 0 297 135 (521) 622 43,792

1,127,955 22,488 8,016 300,430 47,376 141,406 45,782 43,124 3,758 29 2,407 113,766 (90) 1,083 1,857,534

1,332,201 105,665 30,982 196,139 62,903 6,059 157 3 834 543 (562) 658,602 2,393,531

2,067 16,473 23,898 56 16 75 161 (525) 15,969 58,192

821,503 5,572 15,501 237,321 591 7,375 166 179 292 260 (154) 10,025 1,098,635

36,813 54,118 1,012 455 1 6,216 (124) 5,148 103,643

2,153 715 58 0 0 10,085 13,014

2,475,570 713,952 1,046,156 433,452 58,996 16,727 15,849 953,632 58 2,621 (50) 11,226 5,728,192

14,943 788 59,724 24,716 3,719 333 224 8,909 (1,171) 19,608 131,797

Deposits Negotiable certificates of deposit sold Call money Securities sold under agreements to repurchase Cash collateral received for security lending Commercial paper Specific transaction accounts liabilities Borrowed money Foreign exchange accounts Sundry accounts Bonus allowance Retirement benefit obligation Deferred tax liabilities Bank's liability under guarantees and acceptances Head office and branches interoffice payables Sub-total

97 44 926 1,069

301,877 628 122,705 44,000 86,824 409,104 32 480 74,394 627,150 1,667,199

7,716 24,900 269 63 16 135 10,054 43,157

438,342 297,552 30,000 32,822 7,672 228 113,766 936,820 1,857,204

848,002 8,465 7,500 34,521 18,000 21,474 99,374 88 145 543 1,336,750 2,374,867

34,740 2,000 302 13 161 18,809 56,027

72,330 26,999 13,600 0 6,855 2 292 260 967,214 1,087,555

1,848 22 276 15 115 6,216 89,730 98,225

10,553 0 79 12 83 542 11,272

390,110 463,717 24,905 904,908 854 236 617 2,621 3,938,848 5,726,821

34,292 17,800 9,730 482 3,808 243 8,909 52,607 127,875

Capital stock Capital surplus/ reserve Brought-in capital Legal earned reserve Retained earnings (deficit) Unrealized gains (losses) on available-for-sale securities Deferred hedge gains (losses) Total liabilities and Net assets

2,000 1,113 4,182

2,000 2,578 1,230 1,673,008

2,000 (1,364) 43,792

2,000 (1,674) 4 1,857,534

2,000 17,158 (494) 2,393,531

2,000 164 58,192

2,568 8,511 1,098,635

2,736 2,680 103,643

4,825 (3,083) 13,014

2,000 (1,877) 1,248 5,728,192

3,511 411 131,797

Ordinary income: Income on operated funds Including:[Interest on loans] [Interest and dividends on securities] Commission income Specific transaction accounts income Other operating income Other ordinary income Total ordinary income

136 [60] [-] 4 806 947

7,480 [5,313] [717] 6,105 359 6,477 207 20,630

861 [844] [-] 43 5 104 1,014

4,216 [2,018] [292] 6,150 3,157 473 303 14,301

17,843 [3,915] [1,177] 1,348 6,986 907 27,086

1,492 [566] [-] 324 206 2,023

6,372 [4,392] [19] 1,255 29 3 7,661

570 [517] [-] 160 69 801

233 [-] [-] 154 0 387

3,067 [434] [435] 1,881 22,458 4,803 2,498 34,708

1,730 [1,131] [3] 596 193 482 3,003

Ordinary expenses: Funding cost Including:[Interest on deposits] Commission expenses Specific transaction accounts losses Other operating expenses General and administrative expenses Other ordinary expenses Total ordinary expenses Ordinary earnings (losses)

118 [-] 4 812 935 11

5,271 [493] 1,738 527 2,112 6,457 97 16,204 4,426

117 [11] 3 202 42 365 648

2,115 [602] 554 9,246 0 11,916 2,384

17,763 [12,590] 103 1,326 19,193 7,892

281 [88] 11 9 242 200 745 1,277

3,163 [67] 534 84 1,463 96 5,342 2,318

266 [0] 24 283 574 226

174 [160] 75 394 644 (256)

1,041 [329] 746 18,011 13,483 33,282 1,426

604 [189] 74 1,097 87 1,863 1,140

Extraordinary profits Extraordinary losses Earnings (losses) before income taxes

11

4,426

0 648

211 86 2,510

7,892

20 0 1,297

2,318

48 1 274

17 118 (358)

1,426

84 43 1,181

Income taxes-current Income taxes-deferred Net earnings (losses)

1 10

1,274 573 2,578

71 (63) 640

227 851 1,430

2,474 440 4,977

479 817

778 13 1,526

156 118

1 (359)

225 1,200

167 116 897

-

919 4,036 4,955

155＊ 91 247

703 703

-

157 653 210 1,020

2,004 2,004

-

-

0 0 4 5,838 5,842

Liabilities and Net assets

Income statement

Information on non-performing loans: Bankrupt loans Non-accrual loans Past due loans (3 months or more) Restructured loans Total non-performing loans

Note (＊) Also includes JPY 155 million, which was separately disclosed as “De facto Bankrupt Loans” by the bank. © 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

12

Foreign Banks in Japan Survey 2016

Foreign Banks in Japan Survey 2016

13

(millions of yen) Financial statements

Mega International Commercial Bank Co.,Ltd

Korea Development Bank, The

Kookmin Bank

Metropolitan Bank and Trust Company

National Australia Bank Limited

National Bank of Pakistan

Oversea-Chinese Banking Corporation Limited

PHILIPPINE NATIONAL BANK

PT. Bank Negara Indonesia (Persero) Tbk

Royal Bank of Canada

Royal Bank of Scotland plc, The

Balance Sheet Assets Cash on hand and due from banks Call loans Securities purchased under agreements to resell Cash collateral paid for security borrowing Monetary claims purchased Specific transaction accounts assets Money in trusts Securities Loans and discounts Foreign exchange accounts Sundry accounts Property, plant and equipment Intangible assets Prepaid pension expense Deferred tax assets Customers' liability under guarantees and acceptances Reserve for loan losses Allowance for losses on investment Head office and branches interoffice receivables Total assets

4,543 12,761 475 335 310 24 618 (1,980) 21,697 38,787

1,205 10,929 11,872 41,827 47,208 916 97 75 (594) 7,106 120,644

71,051 1,001 103,331 22 1,568 114 296 710 (482) 3,744 181,355

2,074 75 231 5 67 48 46 83 (2) 66 2,697

75,348 29,752 3,420 5,682 144 37 282 6,176 (234) 149,229 269,839

32,920 721 728 2,523 53 4 55 41 631 (24) 9,622 47,274

5,404 6,836 39,074 9 496 13 41 1,161 (463) 60 52,635

2,126 19,776 48 22 0 18 (4) 1,138 23,124

4,629 91 10,481 13,080 337 262 141 9 167 11 (53) 7,121 36,276

380,761 180,525 4 3,595 49 0 79 565,015

256,060 2,136 28,663 110 6,330 1,250 6,794 1,728 (12) 122,978 426,039

Deposits Negotiable certificates of deposit sold Call money Securities sold under agreements to repurchase Cash collateral received for security lending Commercial paper Specific transaction accounts liabilities Borrowed money Foreign exchange accounts Sundry accounts Bonus allowance Retirement benefit obligation Deferred tax liabilities Bank's liability under guarantees and acceptances Head office and branches interoffice payables Sub-total

18,988 0 475 36 14,958 34,461

597 25,501 2,999 66,332 569 22,374 118,376

26,615 25,769 1,067 41 169 710 124,523 178,894

4 91 122 83 330 634

145,144 6,166 129 244 6,176 108,289 266,152

40,066 1,251 123 24 631 2,527 44,622

513 40 316 8 18 1,161 47,815 49,875

314 1,127 35 10 43 19,955 21,484

5,886 2,786 403 1,233 8 77 11 23,564 33,968

2,690 14,357 276 129 545,443 562,897

18,109 28,664 3,221 9,291 140 733 1,728 362,841 424,730

Capital stock Capital surplus/ reserve Brought-in capital Legal earned reserve Retained earnings (deficit) Unrealized gains (losses) on available-for-sale securities Deferred hedge gains (losses) Total liabilities and Net assets

2,952 1,373 38,787

2,000 109 158 120,644

2,000 461 181,355

2,000 63 2,697

2,000 1,687 269,839

2,180 472 47,274

2,000 759 52,635

1,500 140 23,124

2,118 54 136 36,276

2,000 124 (5) 565,015

2,000 (312) (378) 426,039

Ordinary income: Income on operated funds Including:[Interest on loans] [Interest and dividends on securities] Commission income Specific transaction accounts income Other operating income Other ordinary income Total ordinary income

1,209 [788] [-] 218 0 2,446 3,874

2,160 [1,137] [418] 138 708 617 3,625

2,856 [2,794] [5] 176 34 73 3,139

4 [2] [-] 445 379 828

5,560 [827] [-] 175 951 173 6,860

498 [15] [71] 266 53 817

1,090 [993] [93] 14 33 187 1,325

787 [776] [-] 291 296 7 1,381

1,349 [844] [304] 74 191 73 1,687

3,198 [-] [(61)] 691 3,891

5,061 [448] [-] 460 29 31 5,582

Ordinary expenses: Funding cost Including:[Interest on deposits] Commission expenses Specific transaction accounts losses Other operating expenses General and administrative expenses Other ordinary expenses Total ordinary expenses Ordinary earnings (losses)

364 [210] 59 558 1 984 2,889

1,032 [92] 13 818 705 507 3,077 547

728 [30] 10 13 746 0 1,497 1,642

0 [0] 165 571 737 91

3,296 [2,778] 11 1,809 5,117 1,743

35 [14] (0) 307 342 475

179 [-] 4 444 627 697

713 [0] 576 0 1,289 92

844 [10] 12 677 1,533 154

1,473 [-] 39 0 965 2,479 1,412

3,746 [7] 706 2 17 1,935 0 6,408 (825)

Extraordinary profits Extraordinary losses Earnings (losses) before income taxes

2 30 2,861

27 5 569

0 0 1,642

0 5 85

0 1,743

475

697

92

36 56 134

1,412

903 (1,729)

Income taxes-current Income taxes-deferred Net earnings (losses)

25 172 2,663

187 382

629 32 981

29 11 44

5 661 1,075

197 278

51 646

33 1 58

61 34 39

80 1,331

3 (1,732)

334 403 737

-

44 0 7 2 53

-

494 547 1,042

18 18

3 14 17

-

-

172 172

Liabilities and Net assets

Income statement

Information on non-performing loans: Bankrupt loans Non-accrual loans Past due loans (3 months or more) Restructured loans Total non-performing loans

© 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

14

Foreign Banks in Japan Survey 2016

Foreign Banks in Japan Survey 2016

15

(millions of yen) Financial statements

Shinhan Bank Japan

Société Générale

Standard Chartered Bank

State Bank of India

State Street Bank and Trust Company

UBS AG

Union de Banques Arabes et Françaises

UniCredit Bank AG

Wells Fargo Bank, National Association

UNITED OVERSEAS BANK

WOORI BANK

Balance Sheet Assets Cash on hand and due from banks Call loans Securities purchased under agreements to resell Cash collateral paid for security borrowing Monetary claims purchased Specific transaction accounts assets Money in trusts Securities Loans and discounts Foreign exchange accounts Sundry accounts Property, plant and equipment Intangible assets Prepaid pension expense Deferred tax assets Customers' liability under guarantees and acceptances Reserve for loan losses Allowance for losses on investment Head office and branches interoffice receivables Total assets

111,194 3,370 22,821 364,810 44,196 2,839 820 48 99 3,731 (3,223) 550,708

1,142,513 289,000 75,753 63,497 1,619 11,382 1,853 0 26 1,690 (767) 224,874 1,811,444

1,209,278 75 83,543 118,719 157,677 68,315 132 460 1,114 204,203 (588) 112,923 1,955,855

22,524 17,632 274,486 188,225 3,550 870 18 1,952 21,750 (5,037) (13) 5,701 531,661

1,278,760 12 53,353 24 0 20 7,473 1,339,643

586,892 799,000 11,581 203,198 262 122,024 4,143 (27) 402,223 2,129,298

376,635 5,958 19 534 29 3 3,184 386,365

7,305 100 8,263 55 10 40 13,249 90 29,114

47,706 11,964 36,807 542 109 142 92 80 (110) 70 97,407

43,665 3,853 266 68 2,165 0 50,019

7,151 13,086 12,495 134 51 58 2,298 (795) 3,643 38,125

Deposits Negotiable certificates of deposit sold Call money Securities sold under agreements to repurchase Cash collateral received for security lending Commercial paper Specific transaction accounts liabilities Borrowed money Foreign exchange accounts Sundry accounts Bonus allowance Retirement benefit obligation Deferred tax liabilities Bank's liability under guarantees and acceptances Head office and branches interoffice payables Sub-total

481,659 20,183 1,939 5,187 84 161 3,731 512,946

384,639 2,600 70,246 16,000 40,710 0 13,968 21 116 366 1,690 1,277,779 1,808,140

516,882 211,526 48 126,477 11,618 50,311 59,807 99 14 204,203 772,811 1,953,801

76,343 36,100 209,967 274 2,614 21 115 21,750 181,622 528,809

0 53,609 3 1,285,001 1,338,615

435,367 20,000 11,532 65,300 22,289 122,190 348 180 1,452,890 2,130,098

3 258 42 103 382,464 382,871

418 2,629 217 71 13,249 10,544 27,130

2,986 17,000 5,000 731 267 114 111 69,128 95,340

40,900 142 175 2,165 4,690 48,074

26,834 2,000 331 180 29 2,298 4,450 36,125

Capital stock Capital surplus/ reserve Brought-in capital Legal earned reserve Retained earnings (deficit) Unrealized gains (losses) on available-for-sale securities Deferred hedge gains (losses) Total liabilities and Net assets

15,000 15,000 7,735 26 550,708

2,013 (60) 1,351 1,811,444

2,000 546 (310) (181) 1,955,855

2,000 532 319 531,661

2,000 (972) 1,339,643

2,855 (3,655) 2,129,298

2,682 811 386,365

2,000 (16) 29,114

1,948 119 97,407

2,000 (54) 50,019

2,000 0 38,125

Ordinary income: Income on operated funds Including:[Interest on loans] [Interest and dividends on securities] Commission income Specific transaction accounts income Other operating income Other ordinary income Total ordinary income

9,640 [7,924] [289] 2,948 15 922 13,527

4,073 [1,169] [688] 1,343 461 5,878

6,944 [3,047] [188] 2,202 1,840 61 11,049

9,496 [6,636] [460] 1,333 194 10 11,034

538 [-] [-] 466 360 1,365

5,587 [2,163] [-] 289 1,202 9,530 21 16,632

680 [397] [-] 3 1,041 5 1,731

136 [0] [0] 492 0 2 632

655 [249] [406] 1,094 3 1,754

92 [-] [-] 464 626 1,182

658 [477] [-] 228 24 5 917

Ordinary expenses: Funding cost Including:[Interest on deposits] Commission expenses Specific transaction accounts losses Other operating expenses General and administrative expenses Other ordinary expenses Total ordinary expenses Ordinary earnings (losses)

2,567 [2,449] 451 6 4,328 2 7,355 6,171

1,272 [410] 88 162 2,046 364 3,934 1,943

3,237 [2,030] 48 151 5,675 9,112 1,936

5,851 [536] 108 136 1,182 2,818 10,098 936

12 [-] 8 1,123 1,144 221

1,764 [1,525] 189 1 10,683 12,638 3,994

260 [0] 67 0 704 1,032 698

40 [0] 5 491 0 537 94

102 [8] 214 1,070 60 1,448 306

30 [-] 89 207 830 1,158 24

162 [109] 48 0 397 170 778 138

Extraordinary profits Extraordinary losses Earnings (losses) before income taxes

6,171

1,943

0 1,936

18 0 954

94 126

3,994

4 60 642

0 94

306

24

30 100 68

Income taxes-current Income taxes-deferred Net earnings (losses)

2,029 57 4,084

262 (229) 1,910

459 360 1,115

1,176 (755) 532

10 (4) 119

120 1,590 2,284

63 579

32 62

186 119

96 (71)

7 61

Information on non-performing loans: Bankrupt loans Non-accrual loans Past due loans (3 months or more) Restructured loans Total non-performing loans

373 2,489 2,844 5,707

2,588 2,588

56 56

15,630 2,191 17,821

27 27

-

-

-

Liabilities and Net assets

Income statement

© 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

630 630

16

Foreign Banks in Japan Survey 2016

Ranking by Total Assets Rank

Total assets (millions of yen)

Bank

Rank

Total assets (millions of yen)

Bank

1

5,728,192

JPMorgan Chase Bank, N.A

29

386,365

UniCredit Bank AG

2

5,424,359

BNP PARIBAS

30

358,409

Bank of India

3

3,404,342

Citibank Japan Ltd.

31

269,839

National Australia Bank Limited

4

2,802,678

32

185,135

DBS BANK LTD.

5

2,393,531

33

181,355

6

2,129,298

Crédit Agricole Corporate and Investment Bank INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED UBS AG

34

131,797

Mega International Commercial Bank Co.,Ltd KEB Hana Bank

7

2,082,490

35

120,644

Korea Development Bank, The

8

1,955,855

Australia and New Zealand Banking Group Limited Standard Chartered Bank

36

112,392

CTBC Bank Co., Ltd.

9

1,916,835

Barclays Bank PLC

37

103,643

Intesa Sanpaolo S.p.A.

10

1,881,940

Bank of America, N.A.

38

97,407

UNITED OVERSEAS BANK

11

1,857,534

39

94,889

12

1,811,444

Hongkong and Shanghai Banking Corporation Limited, The Société Générale

40

83,451

Bangkok Bank Public Company Limited Bank of Taiwan

13

1,709,532

China Construction Bank

41

59,753

Banco Bilbao Vizcaya Argentaria

14

1,673,008

Deutsche Bank AG

42

58,192

Industrial Bank of Korea

15

1,649,854

Bank of New York Mellon, The

43

52,635

16

1,459,831

BANK OF CHINA LIMITED

44

50,019

17

1,339,643

State Street Bank and Trust Company

45

47,274

Oversea-Chinese Banking Corporation Limited Wells Fargo Bank, National Association National Bank of Pakistan

18

1,275,149

Bank of Communications

46

43,792

First Commercial Bank

19

1,098,635

ING Bank N.V.

47

41,483

Chang Hwa Commercial Bank

20

1,041,802

CREDIT SUISSE AG

48

38,787

Kookmin Bank

21

817,209

49

38,125

WOORI BANK

22

597,882

50

36,276

23

565,015

COMMERZBANK AKTIENGESELLSCHAFT AGRICULTURAL BANK OF CHINA LIMITED Royal Bank of Canada

51

29,114

24

550,708

Shinhan Bank Japan

52

23,124

PT. Bank Negara Indonesia (Persero) Tbk Union de Banques Arabes et Françaises PHILIPPINE NATIONAL BANK

25

531,661

State Bank of India

53

13,014

Itaú Unibanco S.A.

26

494,250

Commonwealth Bank of Australia

54

4,182

DEPFA BANK plc

27

426,039

Royal Bank of Scotland plc, The

55

2,697

Metropolitan Bank and Trust Company

28

421,439

BANCO DO BRASIL S.A.

© 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Foreign Banks in Japan Survey 2016

Ranking by Ordinary Earnings (Losses) Ordinary Rank Earnings (Losses) (millions of yen) 1

11,498

2

Bank

Ordinary Rank Earnings (Losses) (millions of yen)

Bank

BANK OF CHINA LIMITED

29

1,084

CTBC Bank Co., Ltd.

8,635

BNP PARIBAS

30

1,026

Bank of America, N.A.

3

7,892

31

936

State Bank of India

4

7,786

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED China Construction Bank

32

772

5

6,721

33

698

6

6,171

Crédit Agricole Corporate and Investment Bank Shinhan Bank Japan

Bangkok Bank Public Company Limited UniCredit Bank AG

34

697

7

5,616

35

665

8

5,255

Australia and New Zealand Banking Group Limited Bank of Communications

Oversea-Chinese Banking Corporation Limited DBS BANK LTD.

36

648

First Commercial Bank

9

4,426

Deutsche Bank AG

37

547

Korea Development Bank, The

10

4,092

Barclays Bank PLC

38

476

Chang Hwa Commercial Bank

11

3,994

UBS AG

39

475

National Bank of Pakistan

12

3,916

BANCO DO BRASIL S.A.

40

453

CREDIT SUISSE AG

13

3,477

Bank of New York Mellon, The

41

306

UNITED OVERSEAS BANK

14

3,345

42

226

Intesa Sanpaolo S.p.A.

15

2,951

AGRICULTURAL BANK OF CHINA LIMITED Commonwealth Bank of Australia

43

221

16

2,889

Kookmin Bank

44

154

17

2,384

45

138

18

2,318

Hongkong and Shanghai Banking Corporation Limited, The ING Bank N.V.

State Street Bank and Trust Company PT. Bank Negara Indonesia (Persero) Tbk WOORI BANK

46

94

19

2,036

47

92

20

1,943

COMMERZBANK AKTIENGESELLSCHAFT Société Générale

48

91

21

1,936

Standard Chartered Bank

49

24

22

1,743

National Australia Bank Limited

50

11

23

1,642

51

(134)

Banco Bilbao Vizcaya Argentaria

24

1,489

Mega International Commercial Bank Co.,Ltd Bank of Taiwan

52

(256)

Itaú Unibanco S.A.

25

1,426

JPMorgan Chase Bank, N.A

53

(401)

Bank of India

26

1,412

Royal Bank of Canada

54

(825)

Royal Bank of Scotland plc, The

27

1,277

Industrial Bank of Korea

55

(2,424)

28

1,140

KEB Hana Bank

Union de Banques Arabes et Françaises PHILIPPINE NATIONAL BANK Metropolitan Bank and Trust Company Wells Fargo Bank, National Association DEPFA BANK plc

Citibank Japan Ltd.

© 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

17

18

Foreign Banks in Japan Survey 2016

Ranking by Expense/Income Ratio Rank

Expense/ Income Ratio

Bank

Rank

Expense/ Income Ratio

Bank

1

25.40%

Kookmin Bank

29

74.75%

2

36.00%

First Commercial Bank

30

75.99%

AGRICULTURAL BANK OF CHINA LIMITED UBS AG

3

36.83%

Industrial Bank of Korea

31

76.23%

BNP PARIBAS

4

41.26%

Chang Hwa Commercial Bank

32

78.55%

Deutsche Bank AG

5

41.86%

National Bank of Pakistan

33

80.74%

DBS BANK LTD.

6

47.32%

34

82.47%

Standard Chartered Bank

7

47.69%

35

82.55%

UNITED OVERSEAS BANK

8

49.10%

Oversea-Chinese Banking Corporation Limited Mega International Commercial Bank Co.,Ltd Commonwealth Bank of Australia

36

82.56%

Barclays Bank PLC

9

54.37%

Shinhan Bank Japan

37

83.32%

10

56.21%

CTBC Bank Co., Ltd.

38

83.81%

Hongkong and Shanghai Banking Corporation Limited, The State Street Bank and Trust Company

11

59.62%

UniCredit Bank AG

39

84.84%

WOORI BANK

12

59.69%

Bank of New York Mellon, The

40

84.88%

Korea Development Bank, The

13

60.10%

Bank of Taiwan

41

84.97%

14

60.51%

42

88.83%

15

62.04%

Crédit Agricole Corporate and Investment Bank KEB Hana Bank

Union de Banques Arabes et Françaises Bank of America, N.A.

43

89.01%

Metropolitan Bank and Trust Company

16

63.45%

44

90.87%

17

63.64%

Bangkok Bank Public Company Limited Bank of Communications

45

91.52%

PT. Bank Negara Indonesia (Persero) Tbk State Bank of India

18

63.71%

Royal Bank of Canada

46

92.29%

CREDIT SUISSE AG

19

63.93%

47

93.34%

PHILIPPINE NATIONAL BANK

20

66.93%

COMMERZBANK AKTIENGESELLSCHAFT Société Générale

48

95.89%

JPMorgan Chase Bank, N.A

21

67.85%

BANK OF CHINA LIMITED

49

97.97%

22

69.36%

50

98.73%

23

69.73%

Australia and New Zealand Banking Group Limited ING Bank N.V.

Wells Fargo Bank, National Association DEPFA BANK plc

51

104.55%

Citibank Japan Ltd.

24

70.83%

BANCO DO BRASIL S.A.

52

104.62%

Bank of India

25

70.86%

53

112.30%

Banco Bilbao Vizcaya Argentaria

26

71.66%

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED Intesa Sanpaolo S.p.A.

54

114.80%

Royal Bank of Scotland plc, The

27

72.99%

China Construction Bank

55

166.41%

Itaú Unibanco S.A.

28

74.59%

National Australia Bank Limited

© 2016 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Foreign Banks in Japan Survey 2016

19

KPMG Japan - Our Services Our dedicated financial services team brings together partners and professionals from Audit, Tax and Advisory practices and is linked closely to other member firms in the KPMG Japan and global network.

Audit

Risk Consulting

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• • • • • • •

 udit under J-GAAP A IFRS audit SEC audit ISAE3402/SSAE16 attestation Verification of GIPS compliance Investigation of the value, etc. of specified assets Verification of segregated management of customer assets

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 &A advisory services M Corporate restructuring services Sell-side services Overseas expansion support

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 lobal tax strategy advice G FATCA related tax review and advice Transfer pricing services Derivative/Securitization transaction services M&A transaction services

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