Asahi Bank on Tuesday said it projects a 520 billion yen unconsolidated net loss for this business year as it sets aside a hefty 400 billion yen in loan loss reserves to rein in its ballooning bad-loan problem.
In May, Asahi projected a 36 billion yen profit.
Hoping to regain profitability and market confidence, Asahi said it is speeding up the removal of its worst loans from its balance sheet and increasing loan loss reserves set aside for problem borrowers with deteriorating credit ratings or share prices.