ShinGinko Tokyo Ltd., a bank the Tokyo Metropolitan Government founded last year aimed at small companies, said Thursday it posted a net loss of 20.9 billion yen in its first business year to March.
The average balance of loans and guarantees for the year was limited to about 60 billion yen, or 60 percent, of the target, the bank said.
Its core banking operations had a loss of roughly 18.6 billion yen. At the end of the 2005 business year, its loans and guarantees totaled 193 billion yen and deposits stood at 255.4 billion yen. Both were limited to some 80 percent of initial targets.
President Yasumasa Nishi said the bank gave priority to its launch in the first year and is now experiencing strong demand for loans to small companies.
The bank is holding onto its forecast that it will turn a profit in fiscal 2007.