Shoko Chukin Logs 8.5 B. Yen in Misconduct-Linked Losses

May 25, 2018

Tokyo- Shoko Chukin Bank on Thursday reported 8.5 billion yen in losses for the year through March mainly due to its misconduct related to a government-backed low-interest loan program for crisis-hit small companies.

In the misconduct, Shoko Chukin provided low-rate loans to ineligible companies. The government-affiliated lender incurred losses as it returned some of the money provided as financial assistance from the state.

The full-year losses increased from 7.8 billion yen logged for April-September last year, partly because fresh misconduct was discovered later in operations not related to the loan program.

On a parent-only basis, the bank saw its net core banking business profit dive 26.4 pct from the previous year to 41,328 million yen, reflecting a decline in loans under the low-rate program following the scandal.

Meanwhile, the bank's consolidated net profit increased 15.0 pct to a record high of 37,339 million yen, buoyed by gains from the reversal of loan-loss reserves thanks to improving earnings at borrowers. Jiji Press