Mitsubishi Boosts Profit Forecast

The bank said it now expected to post a parent current profit of 56 billion yen ($495 million) in the six months to the end of September, up 60 percent from the previous forecast of 35 billion yen ($309 million) made in May. But the megabank, which was formed out of a merger of two banks back in April, said it had kept its forecast of net profits in the six-month period to September 30 flat at 25 billion yen ($221 million). The bank said it did not change the forecast because it had decided to make as much provision for problem loans as possible, despite having to pay tax on the money.

Current profit is pre-tax and includes gains or losses on sales of shareholdings. Net profit is after tax. The bank is anticipating net income of 25 billion yen ($221 million), however, which is unchanged from its earlier projection, because of such factors as higher non-tax-deductible provisioning for bad debt, the bank said in a statement.