Aozora may revise Q1 earnings on GMAC stake

TOKYO (Reuters) - Japan's Aozora Bank (8304.T) said it may need to revise its quarterly earnings just a day after reporting them to further write down its stake in GMAC LLC, the subprime-hit former financing arm of General Motors Corp (GM.N).

Aozora, the medium-size Japanese bank that is nearly half-owned by U.S. firm Cerberus Capital Management [CBS.UL], has seen its profits eroded since taking a $500 million stake in the company in 2006.

GMAC on Thursday reported a loss of almost $2.5 billion.

Aozora reported a 75 percent decline in first-quarter net profit on Thursday, hurt by a downturn in trading profit and nearly 2 billion yen of valuation losses on its structured credit portfolio.

But those results did not reflect the latest downturn at GMAC, the bank said in a statement.

A spokesman for Aozora said the bank could revise its April-June earnings as early as next week to reflect further losses at GMAC.

(Reporting by David Dolan and Taro Fuse; Editing by Hugh Lawson)