Japan's MUFG expects subprime losses to rise six-fold
Tuesday, 30 October 2007
TOKYO, Oct 29 (AFP): Japanese megabank Mitsubishi UFJ Financial Group (MUFG) said today that its losses on US subprime loans soared by as much as six-fold over two months to 263 million dollars.
MUFG said in August that losses on securities backed by subprime loans to risky borrowers in the United States had reached about five billion yen (43.8 million dollars) as of the end of July.
"We are expecting to see that the amount of the losses had risen to a level of between 20 billion and 30 billion yen (262.8 million dollars) by the end of September," an MUFG spokesman who declined to be named said today. MUFG reported net profit of 880.9 billion yen in the last fiscal year to March.
Concerns about the US subprime woes caused havoc on financial markets across the world in August.
Other Japanese banks have also reported exposure to problems in the US subprime loan market comprising borrowers with patchy credit histories. But their losses are believed to be less heavy than many of their foreign peers.
MUFG said in August that losses on securities backed by subprime loans to risky borrowers in the United States had reached about five billion yen (43.8 million dollars) as of the end of July.
"We are expecting to see that the amount of the losses had risen to a level of between 20 billion and 30 billion yen (262.8 million dollars) by the end of September," an MUFG spokesman who declined to be named said today. MUFG reported net profit of 880.9 billion yen in the last fiscal year to March.
Concerns about the US subprime woes caused havoc on financial markets across the world in August.
Other Japanese banks have also reported exposure to problems in the US subprime loan market comprising borrowers with patchy credit histories. But their losses are believed to be less heavy than many of their foreign peers.