| Mizuho Financial posts its first profit in five quarters |
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13/11/2009 13:16 (88 Day 09:18 minutes ago) | |||||
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The FINANCIAL -- Mizuho Financial Group, Japan's second-largest bank, posted its first profit in five quarters.
The Tokyo-based company had net income of 92.3 billion yen ($1 billion) in the three months ended Sept. 30, compared with a loss of 38.4 billion yen a year earlier, Bloomberg reported. The median of six estimates from analysts surveyed by Bloomberg was for profit of 69 billion yen for the three months. The bank reiterated its 200 billion yen profit forecast for the year ending March.
Chief Executive Officer Takashi Tsukamoto is seeking to restore the company’s finances after booking the largest credit losses of any bank in Asia from investments linked to the U.S. mortgage market, the same source wrote. The Nikkei 225 Stock Average rose 1.8 percent in the quarter ended Sept. 30 compared with a decline of 16 percent in the previous year.
According to Reuters, Japan's banks have suffered smaller credit losses than their Western rivals, but they have also been slower to rebound, hampered by their dependence on domestic lending and rock-bottom interest rates.
Mizuho had failed to turn a profit for four straight quarters, losing a total of 726.3 billion yen. The bank was particularly hurt by its exposure to the equity market, the same source reported. Japanese banks traditionally take stakes in their corporate clients to cement business ties, making them vulnerable to swings in equity prices.
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