Japan Post Holdings' Net Profit Down 41 Pct in April-June

Economy Politics

Tokyo, Aug. 7 (Jiji Press)--Japan Post Holdings Co. <6178> said Friday that its group net profit in April-June plunged 41.7 pct from a year before to 78,788 million yen.

The disappointing result reflected a drop in the domestic volume of postal items amid the novel coronavirus crisis and a decline in the transaction volume at Australian logistics unit Toll Holdings Ltd. due to the pandemic and cyberattacks.

Lower interest rates battered the Japan Post Bank <7182> unit's operations. The number of new individual insurance contracts at Japan Post Insurance Co. <7181>, another unit, fell 94.4 pct to 20,000, due to the suspension of its marketing activities following improper sales practices for its Kampo brand insurance products.

Japan Post Bank's net profit declined 57.3 pct to 33,219 million yen.

Meanwhile, Japan Post Insurance's net profit increased 38.3 pct to 46,729 million yen as its commission fee payments to Japan Post Co., the mail service arm of the holding company, decreased due to the plunge in the number of new contracts.

[Copyright The Jiji Press, Ltd.]

Jiji Press