4 Leading Japanese Banks Report $31 Billion in Losses
By KEN BELSON
TOKYO, May 26 — Japan's four largest banks today reported a combined loss of 3.6 trillion yen, or about $31 billion, for the last fiscal year, a 28 percent increase, because of declining stock prices and stricter accounting methods that unearthed more bad loans.
The losses were largely within expectations, but did little to comfort investors who say Japan's bad-loan crisis is far from over. While the banks wrote off 30 percent fewer bad loans compared with the previous year, deflation is accelerating, the stock market remains near 20-year lows and the economy is inching toward another recession.
The harsher environment on top of deep losses has made it more difficult for the banks to generate profits from their lending business. Yet the banks, as in years past, expect to return to profitability in the current fiscal year, which runs through next March. They also plan to write off fewer bad loans, though they still hold 17.5 trillion yen, or about $149 billion, in loans that are in arrears... |
