[Provisional Translation]
Financial Services Agency
January 30, 2004

The Status of Non Performing Loans as of end-September 2003

1. Non Performing Loans (NPLs) based on the Financial Reconstruction Law (FRL)

The total amount of NPLs of all banks based on the definition in the FRL as of end-September 2003 is 31.6 trillion yen. The figure decreased by 3.7 trillion yen from 35.3 trillion yen as of end-March 2003.

The total amount of loans classified as ''special attention'' decreased by 2.9 trillion yen, as a result of upward migration of special attention loans (2.2 trillion yen), owing to the improvement of business conditions and the progress of corporate revitalization, while the amount of the newly emerged special attention loans has been reduced.

In addition, the total amount of loans classified as ''doubtful'' and ''bankrupt/de facto bankrupt'' decreased by 0.8 trillion yen as a result of steady efforts by banks to remove these loans from their balance sheets, in spite of the fact that the new accumulation of NPLs due to the weakened business activities and the downward migration from upper categories still can be seen.

[Table]
Breakdown of the factors of changes in NPLs based on the FRL as of end-September 2003

2. Specific Provision for Loan Losses

The total amount of specific provision for loan losses as of end-September 2003 stands 5.5 trillion yen, decreased by 0.5 trillion yen from 6.1 trillion yen as of end-March 2003. The decrease of these loan assets reflects the utilization of subsidiary companies for corporate revitalization and the progress of removal of NPLs from banks' balance sheets.

3. Total Loss Amount from the Disposals of NPLs

The total loss amount from the disposal of NPLs during the first half of FY2003 (April-September, 2003) is 2.5 trillion yen, an increase of 0.7 trillion yen from 1.8 trillion yen as of end-September 2002. (A decrease of 0.3 trillion yen when Resona Bank is excluded.)

Table-1	The Status of Non-Performing Loans held by all banks (as of end-September 2003) (PDF format)
Table-2	The Status of Non-Performing Loans (NPLs) of All Banks based on the Financial Reconstruction Law (as of end-September 2003) (PDF format)
Table-3	Transition of Non-Performing Loans (NPLs) based on the Financial Reconstruction Law (PDF format)
Table-4	Total Losses on Disposal of Non-Performing Loans of All Banks (PDF format)
(Reference)	The Status of Risk Management Loans of All Banks (as of end-September 2003) (PDF format)

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