Mizuho books loss on stock plunge, looks for profit for full year on economic rebound

Mizuho books loss on stock plunge

TOKYO — Major Japanese bank Mizuho Financial Group reported Friday a 4.49 billion yen ($47.3 million) loss for the fiscal first quarter, battered by the fallout from the global slowdown.

Tokyo-based Mizuho had posted a 133.0 billion yen profit the same period the previous year.

Japanese banks have weathered the U.S. subprime mortgage crisis with smaller losses then their Western counterparts, but they have been hurt by the fallout from the global slowdown.

All of Japan’s “Big Three” banking groups, which include Mizuho, sank into losses for the fiscal year ended March 31, battered by a stock market plunge.

Ailing stock markets are devastating for Japanese banks because they own stakes in a network of companies to strengthen business ties. Japanese shares plunged last year after the financial crisis but have been recovering gradually in recent months.

Mizuho’s quarterly revenue sank 26.5 percent to 703.47 billion yen ($7.4 billion). But it noted signs the downturn may be slowing and stock prices are recovering.

Mizuho said it will be in the black for the full fiscal year, posting a 200 billion yen ($2.1 billion) profit for the fiscal year through March 2010.

Mitsubishi UFJ Financial Group is scheduled to report earnings later in the day.

On Thursday, Sumitomo Mitsui Financial Group reported a 25 percent jump in quarterly profit at 58.1 billion yen ($611.6 million) on climbing stock prices and a slowly improving economy.

It said it was on track to return to profit this fiscal year after booking its first annual loss in four years the previous fiscal year.