Capital Ratio (Domestic Standard)
On March 31, 2004, the Bank’s capital ratio stood at 9.80% on a non-consolidated basis. The domestic standard requires that the capital ratio exceed 4%, and the Bank maintains a level that far exceeds this minimum requirement. We have shares in treasury stock, and assuming that treasury shares are used for the calculation of the capital ratio, it would stand at 10.32%. The ratio of Tier 1 capital, which excludes the auxiliary portion of capital, was a high 8.32% (non-consolidated basis) and represents a good capital constitution.

Non-Performing Loans
The Bank is enforcing strict asset self-assessments, aggressively undertaking write-offs, and making ample provisions for possible loan losses. The term-end balance of non-performing loans (defined as bad debt subject to mandatory disclosure under the Financial Reconstruction Law) amounted to ¥120.5 billion (US$1,140.5 million), and the ratio of these non-performing loans to total credit (as defined by the stipulations of the Financial Reconstruction Law) was 8.08%. Our equity capital, reserves for possible loan losses, and collateral and guarantees totaled ¥212.5 billion (US$2,011.3 million), representing an ample coverage level.

Coverage Ratio of Claims Classified under the Financial Reconstruction Law Standards