The Bank of Tokyo-Mitsubishi and UFJ Bank, due to merge Jan. 1, are negotiating to postpone full integration of their computer systems for six months until around June 2008, sources said Tuesday.

The planned postponement has been forced by a three-month delay in the two banks' merger and could affect their profit projections, the sources added.

The full integration of the two banks' computer system was initially planned for the end of 2007.

Among other problems, the delay will make it impossible to offer common computer services for a while and hamper the banks' efforts to consolidate their branch networks in a bid to reduce costs.

The banks earlier decided to delay their merger for three months to ensure that their computer systems run smoothly after their full integration.