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Daiwa Bank posts net loss of 140.63 bil. yen in 1st half.

TOKYO, Nov. 26 Kyodo

Daiwa Bank said Monday it fell into the red for the fiscal first half to Sept. 30 due to massive appraisal losses on stockholdings and hefty bad-loan disposal costs.

In its consolidated earnings report, Daiwa said it posted a net loss of 140.63 billion yen in the April-September period, a sharp reversal from a profit of 1.45 billion yen a year earlier.

The major Japanese bank also reported a group pretax loss of 280.16 billion yen in a turnaround from a profit of 18.65 billion yen a year earlier, with operating revenues down 7.5% to 252.86 billion yen.

It posted 38.82 billion yen in parent-only operating profit from the core banking business, a key measure of profitability at Japanese banks, down 14.27 billion yen from a year earlier.

The bank said it booked 92 billion yen in loan-loss charges for the first half on an unconsolidated basis, up sharply from the previous estimate of 45 billion yen. For the full year to next March 31, it expects to post a total charge of 172 billion yen.

As of the end of September, Daiwa was still saddled with problem loans totaling 898.79 billion yen at a parent level under the strict disclosure standards required by the financial-system revival law.

Daiwa also posted an appraisal loss of 308.08 billion yen on its shareholdings on an unconsolidated basis due to sharp falls in Japanese stock prices.

Its capital-adequacy ratio stood at 9.96% as of Sept. 30 on a consolidated basis, down from 11.33% as of March 31.

The bank said it will skip dividend payments for the first half. It paid an interim dividend of 1.50 yen per common share a year earlier.

For the full year to next March 31, Daiwa expects a group net loss of 115 billion yen and a group pretax loss of 240 billion yen on operating revenues of 490 billion yen.

In the previous fiscal year, the bank logged a group net loss of 23.47 billion yen and a group pretax loss of 13.81 billion yen on operating revenues of 531.84 billion yen.
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Publication:Japan Weekly Monitor
Date:Dec 3, 2001
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