SMBC expects 240 BY loss for FY 2004
instead of 180 BY projection earlier this year because of an increase of
bad loans write offs from 640BY to 940BY(March
1, 2005).
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Our
take:
Our readers should not be surprised of this move. We have always
estimated that the bad loans issue is far from over in Japanese
banks. |
Japan bad loans at 4 major banking groups have
declined to 12.1TY on September 2004 or 1.5TY less than March.
Bad loan ratio fell from 5.2% to 4.7%
(January 21, 2005).
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Our
take:
Major banking groups continue to follow Ministry instructions
to reduce their official bad loan figure. We remain convinced that
many more "hidden" bad loans remain on banks balance sheet. |
Japan bad loans at 4 major banking groups have
declined to 14TY on March 2004 or 6.8TY less than a year earlier.
Meanwhile, bad loan ratio fell from 7.2% to 5.2% (May 24).
Results of Japan main banks click here
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Our
take:
As expected, major banking groups have followed Ministry instructions
and reduced their official bad loan figure. We remain convinced that
many more "hidden" bad loans remain on banks balance sheet. |
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Contact us:
info@japanconsult.com
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