Resona Holdings Inc. aims to swing back into the black in fiscal 2004 under a new two-year business improvement plan that will be unveiled soon, company sources said Tuesday.
The banking group, which received nearly 2 trillion yen in public funds earlier this year, aims to generate a group net profit of 150 billion yen in fiscal 2004.
It suffered an estimated 1.76 trillion yen loss for the six months to Sept. 30, the sources said.
Its consolidated capital-adequacy ratio, which plunged to the lower half of 6 percent as of Sept. 30, is projected to rise to 7.4 percent as of the end of March 2005, they said.
Under the first business plan to be adopted by Resona Holdings' new management team, headed by Chairman Eiji Hosoya, all banking units of Resona, including Kinki Osaka Bank, will set up board committees to help improve corporate governance.
The plan advocates slashing the workforce at the parent firm by 44 percent to 930 employees by the end of fiscal 2004.
It also advocates slashing its shareholdings to 400 billion yen from the 1.32 trillion yen held as of March 31.
The ratio of bad loans to total loans is also projected to fall to 3 percent as of March 31, 2005, down from 9.32 percent as of March 31, according to the plan.