TOKYO (Standard&Poor's) Nov. 27, 2007—Japan's six major bank groups recorded a total mid-term net profit of ¥947.9 billion as of Sept. 30, 2007, down 45% from ¥1,735.2 billion recorded at Sept. 30, 2006, Standard&Poor's Ratings Services said in report published today. The drop in net profit was mainly due to a decrease in the reversal of loan loss provisions, which had pushed up profits in the same period a year earlier. It was also attributed in part to losses on the sale or write-off of subprime loan-related assets and a decline in core operating profits. Core operating profit, which represents banks' fundamental profitability, fell 4% due to an increase in operating expenses, highlighting ongoing profitability challenges
