Resona Holdings Inc. said Friday it will post a first-half net loss of 1.76 trillion yen, a stark reversal from originally projected net profits of 22 billion yen.
The huge loss stems from a radical cleanup of the bank's finances. Clearing its books meant using up most of the 1.96 trillion yen in public money it received at the end of June.
The fact that it is dealing with its bad loans was seen as a positive development by investors. Shares of Resona, which hit the all-time low of 47 yen in mid-May, closed at 171 yen on Friday.