Shinginko Tokyo reported Friday an unconsolidated net profit of ¥1.07 billion for the April-September period, the first such profit since the Tokyo Metropolitan Government founded the bank in 2005.
The fiscal 2009 first-half profit, compared with a year-earlier net loss of ¥7.02 billion, came as some nonperforming loan-disposal costs for earlier years were booked as profit for the period due to a smaller-than-expected number of borrower bankruptcies.
From core banking operations, the bank logged an operating loss of ¥1.4 billion. For the whole of fiscal 2009, the bank projected a net profit of ¥1.3 billion.
Hirotaka Terai, who was named Shinginko Tokyo president earlier this year, told reporters the bank will file a damages suit by early 2010 against its ex-managers over the bank's earnings plunge.