The nation's seven major banking groups are expected to report group net losses for the current fiscal year after booking huge appraisal losses due to falling stock prices, bankers and analysts said Friday.
The seven recorded group net losses in fiscal 2001.
Mizuho Financial Group Inc., Japan's biggest banking group in terms of assets, has already forecast a group net loss of 1.95 trillion yen for the year, Resona Holdings Inc. has reported a 290 billion yen loss and Mitsubishi Tokyo Financial Group Inc. expects 185 billion yen.
UFJ Holdings Inc., Sumitomo Trust & Banking Co. and Mitsui Trust Holdings Inc. forecast net profits, but plummeting share prices are likely to send them into the red with net losses, bankers and analysts said.
Sumitomo Mitsui Financial Group Inc. has forecast a 30 billion yen net profit for the year, but growing losses from the disposal of nonperforming loans could force it to post a net loss, they said.
All but Mitsubishi Tokyo Financial Group use the average stock price for March in calculating their appraisal losses on shareholdings.
According to Daiwa Institute of Research, the banks' appraisal losses on shareholdings are estimated at 5.8 trillion yen as of March 20, up by double from the end of September.