Shinginko Tokyo, the bank founded by the Tokyo Metropolitan Government in 2005 at the urging of Tokyo Gov. Shintaro Ishihara, reported Friday an unconsolidated net loss of more than ¥10 billion in fiscal 2008, its fourth straight year of losses.
But the ¥10.5 billion loss shrank compared with the ¥16.7 billion in red ink the bank logged the previous year, and is below its earlier projected loss of ¥12.6 billion.
In fiscal 2008, nonperforming loan disposal costs totaled ¥9.3 billion, exceeding its earlier projected level by ¥3.8 billion.
However, the operating loss from core banking operations fell to ¥2.7 billion from ¥8.9 billion the previous year thanks to a profit of ¥2 billion on the redemption of securities.
"Reconstruction has been implemented steadily," President Ryuichi Tsushima told a press conference.
For the current fiscal year, the bank expects to further narrow the net loss to ¥700 million by curbing nonperforming loan disposal costs.