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Japan bank SMFG's 9-month profit falls on Indonesian impairment
January 26, 2016 / 8:57 AM / 2 years ago

Japan bank SMFG's 9-month profit falls on Indonesian impairment

TOKYO, Jan 26 (Reuters) - Sumitomo Mitsui Financial Group Inc (SMFG) reported on Tuesday an 8.2 percent fall in net profit for the nine months ended in December, hurt by impairment charges on its minority stake in an Indonesian lender.

For April-December, net profit at Japan’s third-largest lender by assets came in at 626.2 billion yen ($5.3 billion), down from 682.2 billion yen a year earlier.

SMFG spent a total of $1.5 billion over the past two years to buy 40 percent of PT Bank Tabungan Pensiunan Nasional Tbk (BTPN). SMFG had to write down the value of its stake after the Indonesian bank’s share price fell by more than half of what it paid for the stake.

For the full year ending in March, the bank kept its net profit forecast at 760 billion yen, down 0.8 percent from the previous year and below an average estimate of 784.6 yen in a poll of 15 analysts by Thomson Reuters. ($1 = 117.8400 yen) (Reporting by Taiga Uranaka; Editing by Muralikumar Anantharaman)

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