Japan's 5 Major Banks See Latent Share Profits Plummet

Economy

Tokyo, March 31 (Jiji Press)--Combined latent profits on shares held by five major banking groups in Japan as of Tuesday, the final day of fiscal 2019, fell by 2.28 trillion yen, or about 30 pct, from a year before, according to an estimate by an analyst.

The unrealized profits totaled some 5.45 trillion yen, compared with the year-before level of 7.73 trillion yen, based on the TOPIX index of all stocks listed on the first section of the Tokyo Stock Exchange, Akira Takai, chief analyst at Daiwa Securities Co., said.

The drop reflects plummeting share prices amid the spread of the new coronavirus.

Takai said that the five banks' capital-to-asset ratios will go down, but added that they have already conducted write-downs of their shareholdings in fiscal 2008 following a stock market tumble triggered by the September 2008 collapse of U.S. investment bank Lehman Brothers. "Additional costs will be limited," he said.

The five groups are Mitsubishi UFJ Financial Group Inc. <8306>, Sumitomo Mitsui Financial Group Inc. <8316>, Mizuho Financial Group Inc. <8411>, Resona Holdings Inc. <8308> and Sumitomo Mitsui Trust Holdings Inc. <8309>.

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