Resona Holdings Inc. may be unable to make it into the black this year as promised, the company's president admitted Thursday.
Kenji Kawada added this scenario depends on the business climate and how the bank reassesses its risk assets.
"We can't say anything for certain at the moment," Kawada said after the first meeting of Resona's new management team, which includes six outside board members not yet appointed on a formal basis.
"We have projected gains right now, but I don't know what will ultimately happen, when we take into account all risk factors. The (final numbers) will be determined as the bank moves forward under new management."
The comments came just two days after the bank secured government approval for a 1.96 trillion yen public funds bailout of the Resona Group.
The group promises to generate a net profit of 58.9 billion yen in the current business year. Its core member, Resona Bank, has projected a 36.9 billion yen gain under a business plan submitted to the government.
Kawada said, however, that the final numbers cannot possibly be determined for another two to three months, and that Resona will be unable to announce a revised business model until the end of August.
Six new board members are slated to join the Resona Bank management team June 25.
Only two of the six have a background in the financial industry. The bank's new chairman, Eiji Hosoya, who is not one of the six, hails from East Japan Railway Co.
During Thursday's meeting, some time was spent explaining how banks' sources of income differ from other businesses.
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