National News

Japan Post beats banks with ¥1.9 trillion net profit

Japan Post had a net profit of around ¥1.9 trillion in the postal savings business in fiscal 2005 to March 31, larger than the biggest Japanese commercial bank's profit, sources said May 24

The result, which represents a 56-percent rise from fiscal 2004, means that a gigantic postal savings bank will be created through Japan Post's privatization next year

The postal savings business brought in the profit through management of savings by stock investment against the backdrop of higher Tokyo stock prices

The profit is larger than the net profit of ¥1.2 trillion recorded by Mitsubishi UFJ Financial Group Inc., the world's largest banking group by assets, in fiscal 2005. But it is less than the ¥2.3 trillion Japan Post earned in the postal savings business in fiscal 2003

In contrast, Japan Post saw the net profit of its mail delivery business fall 99 percent in fiscal 2005 from the previous year to some ¥200 million. The mail delivery service was expected at first to post a net profit of ¥24.3 billion

In addition, the amount of mail handled by post offices decreased for the fourth year in a row, reflecting increased use of e-mail

In related financial news, Japan's six top banks had bumper profits of ¥3.12 trillion in fiscal 2005 after finally snapping out of their long bad debts crisis

That is more than four times their combined earnings in the previous financial year, when several fell deep into the red. (Kyodo, AP)

Shukan ST: June 2, 2006

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