Japan Post Expects 42 Pct Net Profit Drop in FY 2020

Economy Politics

Tokyo, May 15 (Jiji Press)--Japan Post Holdings Co. <6178> said Friday that its consolidated net profit for fiscal 2020 is expected to fall 42.1 pct from the previous year to 280 billion yen.

The dismal estimate reflected sluggish sales of Kampo insurance products at subsidiary Japan Post Insurance Co. <7181> due to an improper sales scandal, as well as deterioration in the investment environment for group funds from the savings and insurance businesses amid the COVID-19 crisis.

For the year ending in March 2021, the holding company's revenue is forecast to drop 5.5 pct to 11,290 billion yen.

Profit falls are expected at all of its three major arms of Japan Post Insurance, mail delivery unit Japan Post Co. and Japan Post Bank <7182>.

The insurance unit is expected to see an especially steep drop, after the number of new insurance contracts with individuals in the latest year through March this year dived 62.3 pct to 640,000.

[Copyright The Jiji Press, Ltd.]

Jiji Press