Mizuho Financial Group loses 80% profit
(3 February 2012 – Japan) Japan’s second largest lender posted a huge loss in profit during the past quarter of 2011, down by a whopping 80 percent.
Mizuho Financial Group reported the loss on a tax asset write-down and weaker stock markets, taking a dive to US$213.4 million (A$198 million) from US$1.1 billion the year before.
The picture for April to December gets much worse for Mizuho: a total loss of US$1.5 billion from its share portfolio.
Lending by Japan's big banks fell 1 percent in December year-on-year, the 26th straight month of decline, said the Bank of Japan.
Mizuho and rivals Mitsubishi UFJ Financial Group, Inc. and Sumitomo Mitsui Financial Group are contending with weak demand for domestic loans as businesses keep a tight rein on spending. Growth, however, lies overseas, helped by European banks that have curtailed overseas investments.
Mizuho and other leading Japanese banks also have to absorb one-off charges related to a write-down of their deferred tax assets due to changes in Japan's tax code. Mizuho said the impact of the write-down was about US$315 million.
The picture for April to December gets much worse for Mizuho: a total loss of US$1.5 billion from its share portfolio.
Lending by Japan's big banks fell 1 percent in December year-on-year, the 26th straight month of decline, said the Bank of Japan.
Mizuho and rivals Mitsubishi UFJ Financial Group, Inc. and Sumitomo Mitsui Financial Group are contending with weak demand for domestic loans as businesses keep a tight rein on spending. Growth, however, lies overseas, helped by European banks that have curtailed overseas investments.
Mizuho and other leading Japanese banks also have to absorb one-off charges related to a write-down of their deferred tax assets due to changes in Japan's tax code. Mizuho said the impact of the write-down was about US$315 million.
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