News

ATM-only IY Bank achieves 1st profitable year

May 9, 2004

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.

(See related stories Sony, IY expand in Japan, Japan's ATM-only IY Bank to raise funds in private placement, Two banks to offer 24/7 ATM access in link with Japan Post and Japan's ATM-only IY Bank expects 1st profitable year)

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.