💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

SMFG cuts annual profit estimate, hurt by Tokyo Elec shares

Published 04/27/2011, 05:26 AM
Updated 04/27/2011, 05:32 AM

TOKYO, April 27 (Reuters) - Sumitomo Mitsui Financial Group said on Wednesday that its net profit is likely to have come 13 percent short of its own forecast for the year ended in March, hurt by losses in its Tokyo Electric shares.

Japan's top banks and life insurers, which are among the largest shareholders of Tokyo Electric, are expected to suffer losses as the troubled utility's stock plunges in the wake of an accident at its Fukushima Daiichi nuclear plant.

Japan's second-largest life insurer Dai-ichi Life said earlier this week it would book 110 billion yen ($1.3 billion) in valuation losses on its securities holdings during the January-March quarter, and a source said most of that was from Tokyo Electric shares.

SMFG, Japan's third-largest lender by assets, owns a 2.7 percent stake in Tokyo Electric. It said its commercial banking unit would book valuation losses of 92 billion yen in the January-March quarter, of which, about 80 billion yen was from Tokyo Electric.

As a result, the bank said it now expects to report net profit of 470 billion yen for the year ended in March, down from the previous estimate of 540 billion yen and below a forecast of 522 billion yen in a poll of 13 analysts by Thomson Reuters I/B/E/S.

The bank is scheduled to announce its results on May 13.

($1 = 81.515 Japanese Yen) (Reporting by Taiga Uranaka; Editing by Joseph Radford)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.