Japan Regional Banks' Net Profits Hit 9-Year Low

Economy

Tokyo, May 27 (Jiji Press)--Combined unconsolidated net profits at Japan's 102 regional banks in fiscal 2019 fell 10.9 pct from the previous year to 665.2 billion yen, hitting the lowest level in nine years, according to their earnings data released by Wednesday.

Due to stock price falls and increased credit costs reflecting the spread of the new coronavirus, 69 banks saw their net profits decline while seven others slipped into the red.

Regional banks are at a critical time, with the impact of the coronavirus crisis on their earnings expected to appear fully from fiscal 2020, which started in April, analysts said, warning that the number of client companies going bankrupt would increase if the Japanese economy remains in the doldrums for an extended period of time.

Combined credit costs grew about 70 pct in fiscal 2019, excluding at Suruga Bank <8358> in Shizuoka Prefecture, central Japan, which booked massive costs over a loan scandal.

Total securities-related profits declined over 40 pct.

[Copyright The Jiji Press, Ltd.]

Jiji Press