Nov. 28 (Bloomberg) -- Japan Post Bank Co., the world's biggest deposit holder, reported half-year profit of 150.1 billion yen ($1.58 billion), beating listed rivals that have been struck by rising bad loans and investment loses.

The result, posted in a statement today, eclipses the 92 billion yen earned by Mitsubishi UFJ Financial Group Inc., Japan's biggest publicly traded bank, for the six months ended Sept. 30. Tokyo-based Japan Post Bank, which is being privatized by the government, had a maiden profit for the second-half ended March 31 of 152.1 billion yen.

The former unit of the nation's postal service had 181 trillion yen of deposits as at June 30. It had 212.1 trillion yen in assets at the end of March, more than any other Japanese bank, including Mitsubishi UFJ with 193 trillion.

Under legislation championed by former Prime Minister Junichiro Koizumi, Japan Post was split last October into four companies specializing in banking, insurance operations, mail delivery and management of post offices.

The Ministry of Finance now holds all shares in Japan Post. The government plans to sell its stake in Japan Post Bank and may list it on the stock exchange as early as 2010.

To contact the reporters on this story: Finbarr Flynn in Tokyo at fflynn3@bloomberg.net

Last Updated: November 27, 2008 23:29 EST