The Awa Bank Ltd., a regional lender in western Japan, fell the most in two years in Tokyo after lowering its full-year profit forecast by 38 percent, citing severe business conditions for small-to-medium sized businesses.
The stock dropped 6.1 percent to 539 yen as of the close on the Tokyo Stock Exchange, the biggest decline since Oct. 22, 2008. Japan’s benchmark Nikkei 225 Stock Average added 1.1 percent.
Net income was 2.19 billion yen ($26 million) for the six months ended Sept. 30, lower than the company’s forecast of 2.6 billion yen, the Tokushima prefecture-based bank said in a statement to the exchange on Nov. 12. Awa Bank cut its full year forecast to 3.7 billion yen from 6 billion yen.