Major Bank Groups' Combined Profits Forecast to Hit 11-Yr Low
Tokyo, May 15 (Jiji Press)--Combined consolidated net profits at five major Japanese banking groups are seen plunging to an 11-year low in fiscal 2020 on ballooning costs to prepare for business failures amid the coronavirus pandemic.
For the year ending in March 2021, their combined profits are estimated at 1.53 trillion yen, down 23.4 pct from the previous year, according to the latest earnings data released by the five groups, including Mitsubishi UFJ Financial Group Inc. <8306>.
Their combined net profits for fiscal 2019 fell 2.4 pct to 1,996 billion yen.
In fiscal 2020, credit costs, including loan-loss allowances, are forecast to total 542 billion yen at all groups except Mitsubishi UFJ, more than double the previous year's sum among the five groups.
The projected amount compares with 850 billion yen in credit costs logged in fiscal 2009 after U.S. investment bank Lehman Brothers collapsed in 2008, triggering a global financial crisis.
[Copyright The Jiji Press, Ltd.]