Mizuho Financial Group Inc., Japan's No. 2 banking group by assets, said Thursday its group net profit dropped 49.8 percent to ¥311.2 billion in business 2007 because of losses from the U.S. subprime loan crisis.
Mizuho booked ¥645 billion in losses related to the subprime mortgage loan upheaval in the business year to March. Most of the losses stemmed from Mizuho Securities Co., an investment banking unit of the group, which posted a subprime loan-related loss of ¥413 billion.
Mizuho Financial Group forecasts group net profit for the business year to next March at ¥560 billion. Though up 79.9 percent from business 2007, it is nonetheless lower than the ¥621 billion net profit in 2006, before the mortgage loan crisis surfaced.