Sumitomo Mitsui profit tumbles 74%

Sumitomo Mitsui profit tumbles 74%
AP
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First Published: Wed, Jan 28 2009. 01 56 PM IST
Updated: Wed, Jan 28 2009. 01 56 PM IST
Tokyo: Major Japanese bank Sumitomo Mitsui Financial Group Inc. said Wednesday its net profit for the April-December period tumbled nearly 74% amid the global economic turmoil.
The company, known as SMFG, one of Japan’s three “megabanks,” reported that net profit for the nine months fell to ¥83.4 billion ($935 million) from ¥319.5 billion during the same period last year.
Revenue fell 13% to ¥2.8 trillion, while operating profit declined 47% to ¥276.4 billion.
Higher interest income and better bond returns were overshadowed by heavy credit costs, which surged almost 150% to ¥399.9 billion. The company blamed “the earnings deterioration of borrowers and loss provisions for claims on certain overseas financial institutions against a backdrop of financial market turmoil and global economic slowdown.”
Slumping equity markets also hit hard, with losses on its stock holdings totaling ¥106.1 billion.
For the full fiscal year through March, the company left its forecasts unchanged. It expects net profit to fall 61% to ¥180 billion on revenue of ¥3.7 trillion.
Shares of SMFG rose 1.2% to ¥3,360 Wednesday on the Tokyo Stock Exchange. Its earnings were released after market closed.
The company’s earnings are based on Japanese accounting standards.
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First Published: Wed, Jan 28 2009. 01 56 PM IST