Mitsubishi Tokyo Financial Group Inc. announced Thursday it has revised downward the projected earnings of its group banks for fiscal 2000, mainly because of increased writeoffs of bad loans.
The Bank of Tokyo-Mitsubishi revised its consolidated profit for the second half of the fiscal year from 90 billion yen to a loss of 150 billion yen.
Mitsubishi Trust & Banking Corp. lowered its projected profit from 40 billion yen to 13 billion yen, while Nippon Trust Bank — a Bank of Tokyo-Mitsubishi subsidiary — expects to plunge to 5 billion yen into the red instead of breaking even.
The three banks united Monday to form MTFG.
“The current pace of bankruptcies will not end soon,” said Tatsunori Imagawa, managing director of the Bank of Tokyo-Mitsubishi. As more loans are going sour, the increased disposal of existing bad loans will not lower the total volume of risky loans, he said.
The announcement comes a day before the ruling coalition compiles an emergency plan slated to set a two-year deadline for major banks to dispose of outstanding bad loans and a three-year target to dispose of newly incurred bad loans.
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