Suruga Bank May Report 90-B.-Yen Net Loss for April-Sept.

Economy

Tokyo, Nov. 7 (Jiji Press)--Scandal-hit Suruga Bank <8358> is seen reporting a net loss of up to 90 billion yen for April-September, against its current projection of a 12-billion-yen profit, informed sources said Wednesday.

The expected loss for the first half of fiscal 2018 reflects a sharp increase in reserves for possible losses on real-estate investment loans, at the center of the bank's scandal.

Despite the red ink, the regional lender's capital-to-asset ratio is expected to stay above 8 pct, against the minimum level of 4 pct required for domestic banks.

Suruga Bank is scheduled to release its April-September results on Nov. 14. Its current projection was announced in August.

The bank, based in Numazu, Shizuoka Prefecture, extended loans to buyers of share houses managed by Tokyo-based Smart Days Inc., which collapsed in April this year.

[Copyright The Jiji Press, Ltd.]

Jiji Press