Shinsei Bank said Monday its first-half group net profit jumped 19.8 percent from a year earlier thanks to brisk business in both institutional and retail banking.
April-September profit came to 40.8 billion yen, against 34.0 billion yen a year earlier.
But the bank expects full-year net profit to fall to 65.0 billion yen, from 66.4 billion yen a year earlier, largely due to plans to book a special loss of about 9 billion yen in connection with the purchase of consumer finance firm Aplus Co.
Shinsei bought Aplus in September from scandal-tainted banking group UFJ Holdings Inc., hoping to make it into one of the main pillars of its consumer financing business.
The bank was particularly active in institutional banking, including merger-and-acquisition support, Shinsei Chief Executive Masamoto Yashiro said. Mortgage loans in retail banking also contributed to profits, he said.
Shinsei Bank, which took over the nationalized Long-Term Credit Bank of Japan, said its ratio of bad loans stood at 2.01 percent as of the end of September, down from 2.78 percent as of the end of March.