Japan’s Financial Services Agency said on Wednesday that Japanese banks have Y600 billion in subprime related losses as of December, more than doubling their losses from September’s Y276 billion.
The FSA also said the banks hold Y1.519 trillion of subprime-related products, up from Y1.407 trillion in September.
Though large, the FSA loss estimate is broadly in line with forecasts and data issued by Japan’s megabanks last month. In January, Mizuho Financial Group Inc., and Mitsubishi UFJ Financial Group Inc., the country’s top two lenders by assets, said subprime losses for the current fiscal year to 31 March will likely rise to a combined Y490 billion.
Japan’s third-biggest lender, Sumitomo Mitsui Financial Group Inc., booked subprime losses of Y67 billion for October-December alone, on top of Y32 billion for its fiscal first half.