Tokyo, June 30, 2008 (Jiji Press) - The Development Bank of Japan said Monday its unconsolidated net profit in fiscal 2007 fell 28.3 pct from the previous year to 53.9 billion yen due mainly to losses on U.S. subprime-related and other securities.
Losses on securitized products, including those related to U.S. subprime mortgages, totaled 33.8 billion yen on a consolidated basis in the year to March 2008, the government-affiliated bank said.
The DBJ invested part of its funds abroad through a subsidiary and helped private financial institutions liquidate loan claims.
Its losses from securitized products swelled amid financial market turmoil in the wake of the subprime mortgage market's meltdown.
Ahead of its privatization in October, the DBJ's dependence on the government's fiscal investment and loan programs for fund procurement dropped to 53 pct from 66 pct from the previous year.
Meantime, Shoko Chukin Bank and the Japan Bank of International Cooperation, other government-affiliated lenders, said that they posted increases in their net profits in fiscal 2007.
Shoko Chukin Bank, which will be privatized around the same time as the DBJ, reported a net profit of 21.8 billion yen, up 53.5 pct. Its net profit rose for the fifth straight year.
Net profit at the JBIC edged up to 274.6 billion yen, rising for the first time in two years, reflecting an increase in investment returns.
Copyright © 2010 JCN. All rights reserved. A division of Japan Corporate News Network KK.
|
Recent
Financial
News
|
RSS
|
|
 |
|
|
|
