TOKYO -- IYBank, the branch-free bank that offers services via its 24-hour ATM network, reported a net loss of 8.1 billion yen (about $69.3 million U.S.) in fiscal 2002, remaining in the red for the second straight fiscal year.
The net loss compares with the previous fiscal year's loss of 12.1 billion yen (about $103.6 million U.S.)
According to a Kyodo News International report, IYBank's operating revenue experienced a six-fold increase, to 11.5 billion yen ($98.4 million U.S.)The bank blamed its loss on infrastructure expenses for its network of 5,375 ATMs, which are located at such venues as the retail outlets of Ito-Yokado Co. and Seven-Eleven Japan Co. IYBank also offers Internet banking services via a Web site.
IYBank, which began banking operations in May 2001, depends on the fees it charges holders of its deposit accounts and ATM cards for a large part of its revenue. The bank also collects interchange from other banks when their customers use its ATMs.
But the revenue grew more slowly than the bank expected in fiscal 2002, as many consumers avoided ATM transactions as a result general economic doldrums, according to Kyodo News International.
IYBank President Takashi Anzai told reporters, "We want to make our bank profitable in our fourth year" -- namely fiscal 2004 that will start April 1.
For the current fiscal year which began April 1, IYBank expects to report a net loss of 4 billion yen ($34.2 million) on operating revenues of 21.3 billion yen ($1.8 billion U.S) IYBank had hoped to turn a profit in its third year. (See related story Japan's IYBank hopes to attain profitability in 3rd year)
IYBank has tried to boost ATM usage by establishing reciprocal ATM agreements with a number of banks and by offering loans and other services to customers of some of those banks through its ATMs. (See related stories Japan's IYBank opens ATMs to credit card companies and Two banks to offer 24/7 ATM access in link with Japan Post)
