Japan's seven major banking groups stayed mired squarely in the red for the second year in a row, spending more than 5 trillion yen to dispose of bad loans and shouldering over 3 trillion yen in stock-related losses for the 12 months ended March, business results confirmed Monday.
The results draw a picture of banks scrambling to reduce their so-called deferred-tax assets, opting to cut profits and capital to keep from following in the footsteps of Resona Holdings, Inc., which is in the process of being ostensibly nationalized.
Deferred-tax assets, whose calculation is partially dependent on future profits, still remain over 40 percent of the majors' core capital.
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