TOKYO - Japan's IY Bank said it posted a net profit of 5 billion yen (U.S. $43.8 million) in fiscal 2003, the online bank's first profit since it began operations three years ago.
According to a report in the Japan Times, it posted a net loss of 8.2 billion yen (U.S. $71.9 million) in fiscal 2002. Sales in fiscal 2003 came to 29.1 billion yen (U.S. $255 million).
The bank has no branches but offers 24-hour ATM banking, a rarity in the Japanese market.
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The company's increased earnings were attributed to its growing number of ATMs, which stood at 7,804 as of the end of March. Most of the machines are located at Seven-Eleven convenience stores and Ito-Yokado stores.
"We set 2,554 ATMs in fiscal 2003 to meet growing demand of our online banking services," IY Bank President Takashi Anzai said at a news conference.
The online bank, which was established in April 2001 by retailer Ito-Yokado Co., cleared its initial target of recording a profit within three years. The government instructed the firm to do so when it awarded it a banking business license.
IY Bank expects its sales to reach 41.4 billion yen in fiscal 2004, Anzai said. The bank has not yet estimated a net profit figure for the year.
