Shinsei Bank said Tuesday it revised sharply downward its group net balance forecast for fiscal 2006 due chiefly to losses related to its consumer loan subsidiary Aplus Co.
Shinsei, which entered a capital tieup with the consumer finance firm in 2004, now expects to have a group net loss of 58 billion yen amid the recent stiffening of regulations in the consumer loan industry. In January, it projected a 40 billion yen net profit.
It would be Shinsei's first time in the red. The company was born in 2000 from the ashes of the failed Long-Term Credit Bank of Japan.