TOKYO, Nov. 21 (Xinhua) -- Japan's top six banking groups logged a combined group net profit of around 950 billion yen (8.72 billion U.S. dollars) in April-September period, down 45.4 percent from a year before, Kyodo News said Wednesday.
The loss of profit was largely due to global market unrest related with the U.S. subprime loan crisis. Japan's largest banking group Mitsubishi UFJ Financial Group Inc. and the five other banks reported losses, write-downs and provisions set aside for troubled loans to U.S. mortgage operators totaling 115 billion yen (1.06 billion dollars) in the first half of fiscal 2007.
Mitsubishi UFJ, together with Mizuho Financial Group Inc., Sumitomo Mitsui Financial Group Inc., Sumitomo Trust & Banking Co.,Resona Holdings Inc. and Chuo Mitsui Trust Holdings Inc said they expect to see an additional 165 billion yen (1.51 billion dollars)in subprime-related losses in the second half of the fiscal year.
The major banking groups reported a combined group net profit of 1.74 trillion yen (15.96 billion dollars) in the first half of fiscal 2006. In the current fiscal year, they were also affected by worsening business atmosphere for consumer credit and non bank affiliates.