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54729
Fri, 04/10/2009 - 15:35
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Sumitomo Mitsui to book group net loss of 390 bil. yen for FY 2008
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TOKYO, April 9 Kyodo -
Sumitomo Mitsui Financial Group Inc. said Thursday it now expects to book a
group net loss of 390 billion yen for fiscal 2008 that ended March 31 against
an earlier projected profit of 180 billion yen.
The parent of Sumitomo Mitsui Banking Corp. also said it will issue up to 800
billion yen in new common stock shares within one year from April 17 to enhance
its capital base in anticipation of an uncertain business environment.
The fiscal 2008 loss, compared with a profit of 461.5 billion yen in the
previous year, can be attributed primarily to an expansion of consolidated loan
loss reserves by 460 billion yen from an earlier projection to 760 billion yen,
the company said. Loan losses are expected to increase as the recent economic
downturn has seriously affected corporate borrowers.
The group net loss also includes a loss of 53.2 billion yen that SMFG will take
on its investment in Barclays Plc following sharp falls in the stock price of
the British bank amid the global stock market slump, it said.
SMFG also revised its group pretax profit for fiscal 2008 from an earlier
estimated 480 billion yen to 30 billion yen, a sharp fall from 831.2 billion
yen in the previous year, but left its operating revenue estimate unchanged at
3.7 trillion yen, compared with 4.62 trillion yen in fiscal 2007.
SMFG cut its planned year-end dividend for fiscal 2008 to 20 yen per share from
50 yen. It had an estimated capital adequacy ratio of around 11 percent on a
consolidated basis at the end of March.
Takeshi Kunibe, a director at SMFG, told reporters that the coming equity
financing is a ''preemptive capital increase'' rather than for covering the
loss.
SMFG will not apply for an injection of public funds into its capital base, he
added.
The other two Japanese mega banking groups -- Mitsubishi UFJ Financial Group
Inc. and Mizuho Financial Group Inc. -- are also expected to report group net
losses for fiscal 2008 due to increased loan loss reserves and appraisal losses
on shareholdings.
==Kyodo
TOKYO, April 9 Kyodo -
Sumitomo Mitsui Financial Group Inc. said Thursday it now expects to book a
group net loss of 390 billion yen for fiscal 2008 that ended March 31 against
an earlier projected profit of 180 billion yen.
The parent of Sumitomo Mitsui Banking Corp. also said it will issue up to 800
billion yen in new common stock shares within one year from April 17 to enhance
its capital base in anticipation of an uncertain business environment.
The fiscal 2008 loss, compared with a profit of 461.5 billion yen in the
previous year, can be attributed primarily to an expansion of consolidated loan
loss reserves by 460 billion yen from an earlier projection to 760 billion yen,
the company said. Loan losses are expected to increase as the recent economic
downturn has seriously affected corporate borrowers.
The group net loss also includes a loss of 53.2 billion yen that SMFG will take
on its investment in Barclays Plc following sharp falls in the stock price of
the British bank amid the global stock market slump, it said.
SMFG also revised its group pretax profit for fiscal 2008 from an earlier
estimated 480 billion yen to 30 billion yen, a sharp fall from 831.2 billion
yen in the previous year, but left its operating revenue estimate unchanged at
3.7 trillion yen, compared with 4.62 trillion yen in fiscal 2007.
SMFG cut its planned year-end dividend for fiscal 2008 to 20 yen per share from
50 yen. It had an estimated capital adequacy ratio of around 11 percent on a
consolidated basis at the end of March.
Takeshi Kunibe, a director at SMFG, told reporters that the coming equity
financing is a ''preemptive capital increase'' rather than for covering the
loss.
SMFG will not apply for an injection of public funds into its capital base, he
added.
The other two Japanese mega banking groups -- Mitsubishi UFJ Financial Group
Inc. and Mizuho Financial Group Inc. -- are also expected to report group net
losses for fiscal 2008 due to increased loan loss reserves and appraisal losses
on shareholdings.
==Kyodo
