Shinsei swings back into profit
Mid-sized Japanese lender Shinsei has posted
first quarter net profits of ¥13.9bn ($160.4m) for the three months
to 30 June, more than double the ¥5.2bn net earnings reported in
the same quarter last year.
In the previous quarter Shinsei recorded a
loss of ¥162.4bn.
While Shinsei cut expenses by 18%, first
quarter revenue was down by 19.4% as a result of a drop in consumer
finance earnings.
Shinsei’s net interest margin remained flat at
2.33% compared to the prior quarter, but down by 32 basis points
compared with the first quarter last year.
Shinsei’s full year profits forecast remained
unchanged at ¥12.5bn.
“Given these encouraging first quarter
results, we have no immediate plans to raise capital,” said Shinsei
president and CEO Shigeki Toma.