Shinsei Profit Probably Fell 90% Last Quarter on Market Rout
Shinsei Bank Ltd. (8303), the Japanese lender partly owned by J. Christopher Flowers, probably posted a 90 percent drop in profit for the second quarter on securities valuation losses stemming from the global financial-market rout.
Net income fell to about 300 million yen ($3.9 million) in the three months ended Sept. 30 from 3 billion yen a year earlier, according to a preliminary earnings statement released by Tokyo-based Shinsei today.
Shinsei will recognize 6.6 billion yen of losses on the value of securities last quarter, it said in the statement. Japan’s Nikkei 225 (NKY) Stock Average tumbled 11 percent in the period, its worst performance since the three months ended June 2010, amid concern the U.S. economy is slowing and Europe’s debt crisis will spill over into the banking system.
Shinsei probably posted profit of 18.5 billion yen for the fiscal first half, a 9.6 percent increase from a year earlier, it said today. Of the total, 18.2 billion yen was earned in the quarter ended June 30.
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