Suruga Bank's Net Profit Up 20 Pct in April-June

Economy

Tokyo, Aug. 14 (Jiji Press)--Suruga Bank <8358> said Wednesday its group net profit in April-June totaled 3,847 million yen, up 21.7 pct from a year before, when the Japanese regional lender booked massive losses related to its fraudulent loans for real estate investment.

The bank's bad loan disposal costs in the first quarter of fiscal 2019 dropped to less than one-third of the year-before level, while profit from its lending and fund management operations decreased by 5.3 billion yen.

As punishment by the Financial Services Agency over the scandal, Suruga Bank, based in the city of Numazu, Shizuoka Prefecture, central Japan, was banned from providing new loans for real estate investment from last October to late May this year.

As a result, its end-June balance of loans declined 13.5 pct year on year to 2,726.2 billion yen. Real net profit from its core operations went down 30.5 pct to 9.97 billion yen.

Still, the bank's capital-to-asset ratio came to 8.76 pct, well above the minimum-required level of 4 pct for domestic-only banks.

[Copyright The Jiji Press, Ltd.]

Jiji Press