Ailing UFJ Holdings Inc. announced Friday that it expects a net loss of 780 billion yen for the first half of fiscal 2004 amid pressure to speed up its bad-loan disposals before a planned merger with Mitsubishi Tokyo Financial Group Inc.
UFJ, which has also been sounded out by Sumitomo Mitsui Financial Group Inc. over a merger, said it has decided to receive 700 billion yen in financial support from MTFG at the end of September to help cover the loss and strengthen its relationship with the planned partner.
With the capital injection, UFJ will keep its capital adequacy ratio above 8 percent -- a minimum requirement for banks that carry out international operations.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.