UFJ Holdings Inc. said Friday that it expects to post a consolidated net loss of 1.2 trillion yen for the 2001 business year, which ends this month, up from the loss of 600 billion yen forecast in November.
The bank holding company said it has revised its earnings projection due largely to changes in an accounting procedure applied to Tokai Bank, which was liquidated as a result of its merger Jan. 15 with Sanwa Bank to create UFJ Bank.
Under the initial procedure that formed the basis for the November forecast, Tokai's income between last April 1 and Jan. 14 was referred to in an explanatory note, as the merger accounting allowed UFJ Bank to take over only net assets from Tokai.
But as this blurred the entirety of the UFJ group's earnings, Tokai's income was included in the group's income in the revised earnings forecast, UFJ Holdings said.
The revised forecast also includes a pretax loss of 1.6 trillion yen and operating revenues of 3 trillion yen, compared with the corresponding figures of 900 billion yen and 2.6 trillion yen in the earlier projection.
On an unconsolidated basis, UFJ Holdings forecasts 75 billion yen in pretax profit, down from the 145 billion yen forecast in November. , and net profit of 85 billion yen, down from the earlier prediction of 156 billion yen, on operating revenues of 85 billion yen.
Charges to cover problem loans will amount to around 2 trillion yen as forecast, UFJ Holdings said.