Mitsubishi Tokyo Financial Group Inc., or MTFG, is likely to post a consolidated net loss of tens of billions of yen for the first half of the 2001 business year, compared with the 150 billion yen net profit forecast in May, company sources said Thursday.
The firm attributed the change to appraisal losses in the group's stockholdings.
The financial holding company that has Bank of Tokyo-Mitsubishi and Mitsubishi Trust & Banking Corp. under its wing will register more than 200 billion yen in appraisal losses in its portfolio in the April-September period, the sources said.
The financial group will soon revise downward its earnings projections for the first half of the business year ending March 31, the sources said.
A new accounting system introduced last year requires companies to post appraisal losses on stockholdings when they close their books if the market value of the shares falls below the book value by 50 percent or more.
Mizuho Holdings Inc. said earlier this month it anticipated a consolidated net loss of 260 billion yen for the April-September first half, down from the net profit of 90 billion yen forecast in May, due to the failure of debt-saddled supermarket chain operator Mycal Corp. and appraisal losses on stockholdings.
Mizuho Holdings comprises Dai-Ichi Kangyo Bank, Fuji Bank and the Industrial Bank of Japan.