Second-tier regional banks returned to profitability in fiscal 1999 for the first time in four years due largely to a substantial drop in bad-loan writeoffs and profits from share sales, an industry association said Friday.
The Second Association of Regional Banks said a survey of 48 of its 54 member banks found that combined pretax profits came to 43.3 billion yen on an unconsolidated basis in the year to March 31. With 22 banks swinging back into the black, all of the 48 banks surveyed reported pretax profits. The survey excluded five failed banks and a new bank created last year.
Net business profits -- profits from core banking operations such as lending and bond dealings before taxes and costs related to loan-loss provisions are subtracted -- totaled 356.4 billion yen, up 25.6 percent from fiscal 1998.