Takefuji Corporation Forecasts a Return to Profit

May.14.07 | About: Takefuji Corp (TAKAF)
This is nice to see, though I'm certainly not suggesting it is time to break out the glasses and start popping corks. Takefuji (OTC:TAKAF) is easily the worst performer in the portfolio and has a good ways to go to get back to even, much less be a moneymaker.

From the linked Bloomberg report:

Takefuji Corp., Japan's fourth-largest consumer lender by assets, forecast a return to profit this year after mounting customer claims for refunds led to its first annual loss since going public in 1998.

Net income in the year to March 2008 will likely be 53.6 billion yen ($446 million), compared with a loss of 481.3 billion yen in the year ended March 31, the Tokyo-based company said in a statement to the Tokyo Stock Exchange today.


Takefuji's bigger rival Aiful Corp. said yesterday it lost $3.4 billion in the latest fiscal year. Aiful and Promise Co., Japan's third largest consumer lender, have both forecast a return to profit.

"The trend for interest refunds is unclear and it's hard to tell if consumer lenders are going to return to profit,'' said Shinichi Iimura, a Tokyo-based analyst at Nomura Holdings Inc. "It's going to take a while for the lenders to shuffle their loan portfolios to get customers with better credit profiles.''