Wednesday, April 27, 2011

SMFG cuts annual profit estimate, hurt by Tokyo Elec shares

(Reuters) - Sumitomo Mitsui Financial Group said on Wednesday that its net profit is likely to have come 13 percent short of its own forecast for the year ended in March, hurt by losses in its Tokyo Electric shares.

Japan's top banks and life insurers, which are among the largest shareholders of Tokyo Electric, are expected to suffer losses as the troubled utility's stock plunges in the wake of an accident at its Fukushima Daiichi nuclear plant.

Japan's second-largest life insurer Dai-ichi Life said earlier this week it would book 110 billion yen ($1.3 billion) in valuation losses on its securities holdings during the January-March quarter, and a source said most of that was from Tokyo Electric shares.


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