Japan Regional Banks Suffer 4 Pct Net Profit Drop

Economy

Tokyo, May 17 (Jiji Press)--Combined group net profits at 11 regional banks and eight regional bank groups in Japan fell 4.0 pct from the previous year to 590.9 billion yen in fiscal 2018, which ended in March, according to their earnings reports released by Friday.

Daishi Hokuetsu Financial Group Inc. <7327>, launched last October through the merger of two banks in Niigata Prefecture, central Japan, was excluded from the tally as comparable data were unavailable.

The drop came as the Bank of Japan's ultraeasy monetary policy and population declines in local areas continued to pressure earnings. Eleven of the 19 banks and groups saw profit declines.

In addition, credit costs increased at 18 of the 19 on the back of growing concerns over a deterioration in corporate earnings reflecting an escalation of U.S.-China trade friction and a slowdown in the Chinese economy.

Such costs increased from 800 million yen to 11.3 billion yen at Chiba Bank <8331>, which operates mainly in Chiba Prefecture, east of Tokyo.

[Copyright The Jiji Press, Ltd.]

Jiji Press