Japan Post Holdings' Sales Drop 5.5 Pct in April-Dec.

Economy Politics

Tokyo, Feb. 14 (Jiji Press)--Japan Post Holdings Co. <6178> said Friday its group revenue in April-December dropped 5.5 pct from a year earlier to 9,054,558 million yen due mainly to voluntary sales restrictions by an insurance unit over a scandal involving inappropriate sales practices.

The number of new insurance contracts concluded for individual customers plunged to about 10 pct of the year-before level after the sales restrictions started in mid-July, a senior official at Japan Post Insurance Co. <7181> said.

The decline in insurance sales "has no major financial impact in the short term but will be a blow in the long run," Japan Post Holdings executive officer Tomonori Asai told a press conference.

The holding company's net profit rose 7.6 pct to 422,006 million yen as the sales restrictions reduced labor costs.

Three major units--Japan Post Insurance, Japan Post Co. and Japan Post Bank <7182>--all reported falling revenue but growing profits.

[Copyright The Jiji Press, Ltd.]

Jiji Press