Shinsei Bank Ltd., the first Japanese bank acquired by overseas investors, said Monday its profit is projected to fall 80 percent on losses from debt extended to Lehman Brothers Holdings Inc.
Net income will decline to ¥12 billion for the 12 months ending March 31 from ¥60.1 billion projected the previous year and the ¥62 billion forecast in May, the Tokyo-based bank said.
Shinsei Bank, partly owned by private equity investor Christopher Flowers, has about ¥38 billion in "exposure" to the bankrupt Wall Street firm, including a ¥25 billion unsecured loan and ¥9 billion in bonds, the bank said Sept. 16.
The bank also said it has completed the acquisition of General Electric Co.'s Japan consumer finance business for about ¥580 billion.