Japan's seven major banking groups slashed their combined deferred tax assets, a major component of core capital, by 1.4 trillion in closing their books for the six months to Sept. 30, down from 7.8 trillion as of March 31, according to banking industry sources.
Consequently, the deferred assets at Mizuho Financial Group Inc., Sumitomo Mitsui Financial Group Inc., Mitsubishi Tokyo Financial Group Inc., UFJ Holdings Inc., Resona Holdings Inc., Mitsui Trust Holdings Inc. and Sumitomo Trust & Banking Co. dropped to 6.4 trillion.
The latest ratio of DTA to their self-assessed taxable income estimates dropped to 35 percent, below the upper limit of approximately 40 percent that is permitted under the accounting rules of the Japanese Institute of Certified Public Accountants, they said.