The Wall Street Journal-20080130-Earnings Drop at Japan Banks

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Earnings Drop at Japan Banks

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TOKYO -- Sumitomo Mitsui Financial Group Inc. posted a 19% drop in its April-December earnings because of a combination of increased credit costs and losses from equity holdings in the troubled consumer- finance business.

SMFG, Japan's third-largest bank by assets, said group profit for the first three fiscal quarters dropped to 319.49 billion yen ($2.98 billion) from 396.05 billion yen a year earlier. Group revenue increased 16% to 3.242 trillion yen.

Meanwhile, Resona Holdings Inc., Japan's No. 4 bank, said its group net profit fell to 195.3 billion yen from 551.6 billion yen a year earlier. Group operating revenue totaled 812.4 billion yen, down 2.5% from 833.3 billion yen a year earlier.