News

Japan's IY Bank posts 1st profit

November 9, 2003

TOKYO - Japan's IY Bank announced a first-half net profit of 104 million yen ($961,913 U.S.) on Nov. 7.

According to the Japan Times, it was the first time for Ito-Yokado Co.'s fledgling bank to post gains since it launched operations in 2000. The bank has no branches but offers 24-hour ATM banking, a rarity in the Japanese market, primarily at Seven-Eleven convenience stores.

It posted a net loss of 5.28 billion yen ($48.4 million U.S.) in 2002's first half.

(See related story Japan's ATM-only IY Bank expects 1st profitable year)

Earnings were boosted by May tie-ups with Japan Post and a 67.5 percent surge in customer ATM use from a year earlier, according to the Japan Times.(See related story Two banks to offer 24/7 ATM access in link with Japan Post)

The bank projects a net profit of 1.1 billion yen ($10.1 million U.S.) for the full year ending March 31, IY Bank President Takashi Anzai said.

But the bank still bears the weight of 20.3 billion yen ($187.8 million U.S.) in accumulated losses from initial capital expenditures and software costs. While the bank hopes to pay off at least 1.1 billion yen ($10.1 million U.S.) of the debt this year, Anzai refused to project beyond the current business year and say when the company will shake off its debt.

"It is extremely difficult to read future revenue," he said.