Mitsui Trust plans to cut its workforce by 600 to a total of 5,000 by the end of March 2000, the company said at a news conference held to announce the withdrawal.

It also said that the firm would positively consider applying for an injection of public funds.

Mitsui Trust said in a statement that it planned to close overseas branches in New York, London and Hong Kong as well as a local unit in Hong Kong by the end of next March.

The statement said the move would lower Mitsui's required capital adequacy ratio to four per cent from eight per cent, the level required for banks operating internationally.

Kiichiro Furusawa, Mitsui Trust executive vice president, told the news conference that the bank decided to withdraw from overseas operations because they were unprofitable.

We had been considering trimming down overseas businesssince January," Furusawa said. "We decided to shut down the business because of its inefficiencies."

Furusawa said Mitsui had not decided the size, timing or type of public fund injection it might accept.

"Although we don't have any problem in maintaining our (capital/asset) ratio over eight per cent, it is important to consider a public fund injection when we take account of unrealised losses (on share holdings)," Furusawa said.

He said the company had a capital/asset ratio of 11.2 per cent at the end of September.

Withdrawing from overseas operations will help the bank cut annual costs, including personnel costs, by six billion to seven billion yen, he said.

The statement said the company plans to dissolve its securities unit in the future and is considering a "large cut" in employees' bonuses this year as part of restructuring measures.

It said the company had reached an agreement with State Street Bank & Trust Co of the United States on a tieup in custody services for entrustedassets.

Mitsui Trust was also considering a possible tieup in the investment trust area with the US bank.