Friday July 31, 04:31 AM
Japan's Mizuho Financial posts small Q1 loss
TOKYO (AFP) - Japan's second-largest bank Mizuho Financial Group said Friday that it dipped into the red in the three months through June but maintained its forecast for a full-year profit.
Mizuho announced a net loss of 4.49 billion yen (47 million dollars) for the fiscal first quarter, swinging from a year-earlier profit of 132.99 billion yen, as revenue fell 26.5 percent to 703.47 billion yen.
The group expects to return to the black in the full business year to March 2010 with a net profit of 200 billion yen, after a loss of 588.8 billion yen last year, its first such shortfall in six years.
Japan's top banks have been less affected than many of their Western peers by the global financial crisis. But they suffered heavy losses last year, partly because they have a large exposure to the stock market.
Mizuho, which last year invested 1.2 billion dollars in Merrill Lynch (NYSE: MER - news) , announced plans in May to sell new shares worth about eight billion dollars to help it through the financial turmoil and boost its overseas businesses.
On top of the financial crisis, Japan's banks are being pressured by the country's shrinking population and low interest rates, which are making it harder for them to grow their revenues.
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