Acom Co., Japan's second-largest consumer lender by sales, reported a 36 percent decline in third-quarter profit from the same period a year earlier when the numbers were boosted by a tax refund.
The company posted net income of ¥12.9 billion in the three months that ended on Dec. 31, compared with profit of ¥20.3 billion a year earlier. Bloomberg News calculated earnings by subtracting half-year income from nine-month results announced Wednesday.
Japan's four biggest consumer lenders, including Acom, are struggling to boost profit after returning to the black following combined losses of ¥1.7 trillion in the last business year on increased provisions. Consolidation has emerged in the $170 billion industry, as the government and courts crack down on excessive interest charges.
Revenue in the quarter fell 7.5 percent to ¥92.1 billion. The company maintained its November full-year profit forecast of ¥39.1 billion.
Acom shares closed 2.5 percent lower at ¥2,550 in Tokyo. Lawmakers took aim in 2006 at consumer lenders after aggressive marketing created a cycle of debt, with borrowers obtaining loans from one firm to repay another. A new law capped maximum interest rates at 20 percent, down from 29 percent.