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Fitch: Another Dull Year Expected for Major Japanese Banks 2010-06-07 07:44:03.754 GMT FITCH: ANOTHER DULL YEAR EXPECTED FOR MAJOR JAPANESE BANKS Link to Fitch Ratings' Report: Major Japanese Banks: Annual Review and Outlook Weak Recovery in FYE10; Similar Story Likely for FYE11 http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=530746 Fitch Ratings-Tokyo/Hong Kong-07 June 2010: Fitch Ratings has commented in a newly published special report that performance of major Japanese
Fitch: Another Dull Year Expected for Major Japanese Banks 2010-06-07 07:44:03.754 GMT FITCH: ANOTHER DULL YEAR EXPECTED FOR MAJOR JAPANESE BANKS Link to Fitch Ratings' Report: Major Japanese Banks: Annual Review and Outlook Weak Recovery in FYE10; Similar Story Likely for FYE11 http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=530746 Fitch Ratings-Tokyo/Hong Kong-07 June 2010: Fitch Ratings has commented in a newly published special report that performance of major Japanese
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Fitch: Another Dull Year Expected for Major Japanese Banks 2010-06-07 07:44:03.754 GMT FITCH: ANOTHER DULL YEAR EXPECTED FOR MAJOR JAPANESE BANKS Link to Fitch Ratings' Report: Major Japanese Banks: Annual Review and Outlook Weak Recovery in FYE10; Similar Story Likely for FYE11 http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=530746 Fitch Ratings-Tokyo/Hong Kong-07 June 2010: Fitch Ratings has commented in a newly published special report that performance of major Japanese
Droits d'auteur :
Attribution Non-Commercial (BY-NC)
Formats disponibles
Téléchargez comme TXT, PDF, TXT ou lisez en ligne sur Scribd
Fitch: Another Dull Year Expected for Major Japanese Banks
2010-06-07 07:44:03.754 GMT
FITCH: ANOTHER DULL YEAR EXPECTED FOR MAJOR JAPANESE BANKS Link to Fitch Ratings' Report: Major Japanese Banks: Annual Review and Outlook - Weak Recovery in FYE10; Similar Story Likely for FYE11 http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=530746 Fitch Ratings-Tokyo/Hong Kong-07 June 2010: Fitch Ratings has commented in a newly published special report that performance of major Japanese banking groups will remain lacklustre in the fiscal year to end-March 2011 (FYE11). The agency therefore does not expect any immediate change in their ratings, although the situation may vary from bank to bank. In FYE10, all major Japanese banks saw profitability recovered from the particularly challenging year in FYE09, when most of them posted net losses. However, extending the profit growth momentum into FYE11 will be unlikely, with the banking groups forecasting profit levels to be similar to that of FYE10. Fitch expects profitability from core operations to remain weak in FYE11, with a small decline in loan loss charges to support a modest improvement in net profits. Fitch does not expect any large issuances of common stocks from major banks over and above the potential issuance that Mizuho Financial Group (Mizuho) has already registered. This is because the banks' low profitability will be unable to withstand additional dividend payouts, and the market having already absorbed repeated issuances before end-FYE10 may have a low appetite for additional issuance. Therefore, the agency believes the accumulation of retained earnings to be the primary way to strengthen the banks' core capitalisation. However, given the likely weak profitability of the banks, Fitch does not anticipate a material bolstering of core capitalisation, and these factors combine to limit the possibility of an immediate upgrade to their ratings. Fitch notes that a potential weakening of loan quality is a down-side risk for these major banks. Although loan quality has remained sound on the surface, Fitch remains concerned that a large portion of loans exempted from being categorised as non-performing loans (NPLs) under government initiatives, may eventually become NPLs, should the economy remains subdued and restructuring efforts fail to significantly improve the borrowers' financial health. The direct impact from sovereign credit concerns in parts of Europe are expected to be limited, although it may affect the banks indirectly via weakening performances of Japanese companies relying on exports to European markets and/or a decline in stock prices. As there are limited lending opportunities in both domestic and overseas markets, the major banking groups are increasing their investment in the Japanese government bonds (JGBs). However, since near-term prospects for interest rate hikes in Japan are minimal, the risk related to JGB investments will be limited. That said, interest rate risk may increase in the medium-term. Fitch views the major banking groups' reduction in stock investment exposure positively. However, as the banks appear to have sold stocks with lower acquisition costs, the investment portfolios of these banks broke-even on average when the Nikkei index breaches the 9,000 mark at end-FYE10, as compared to 8,000 at end-FYE09. The six major Japanese banking groups are Mizuho ('A'/Stable), Sumitomo Mitsui Financial Group ('A'/Stable), Mitsubishi UFJ Financial Group (MUFG), Chuo Mitsui Trust Group, Sumitomo Trust & Banking Company ('A'/Stable) and Resona Holdings. Contacts: Chikako Horiuchi, Reiko Toritani, Tokyo, Tel: +81 3 3288 2772; Jonathan Cornish, Hong Kong, +852 2263 9901. Media Relations: Karen Cho, Hong Kong, Tel: +852 2263 9935, Email: karen.cho@fitchratings.com; Chinatsu Ozaki, Tokyo, Tel: +813 3288 2679, Email: chinatsu.ozaki@fitchratings.com. Additional information is available at www.fitchratings.com. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.