UFJ Holdings Inc. is to announce further bold restructuring programs later this month, in addition to those unveiled in March.
There will be no “sanctuaries” in the restructuring effort, said Hideo Ogasawara, president of the newly created bank holding company.
UFJ was created earlier this month to integrate the operations of Sanwa Bank, Tokai Bank and Toyo Trust & Banking Co.
Last month, the three banks announced a restructuring program under which they are to abolish a total of 8,000 jobs by the end of March 2005 and eliminate more than 100 domestic branches through closure or merger.
The three banks’ decision to fall into the red in closing their books for fiscal 2000 as a result of increased loan-loss charges reflects their intention to achieve the completion of bad-loan writeoffs before the integration of operations, Ogasawara said.
He made the remarks in an interview Thursday.
Sanwa, Tokai and Toyo said last month they will write off some 1.13 trillion yen in bad loans in fiscal 2000 to last Saturday, roughly double the amount they had targeted earlier.
Fresh problem loans will be covered by the three banks’ net business profits, Ogasawara said.
Asked about the three banks’ obligation to repay public funds injected into their capital bases under an emergency recapitalization program conducted by the government in 1999, Ogasawara said they remain committed to their initial plan to pay the funds back within five years.
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