TOKYO (Standard&Poor's) May 23, 2008--Japan's six major banking groups recorded a total net profit of ¥1,866.4 billion for fiscal 2007 (ended March 31, 2008), down 34% from the ¥2,824.9 billion recorded in the previous fiscal year, Standard&Poor's Rating Services said in a Japanese-language report published today. The drop in net profit was mainly due to realized losses of approximately ¥980 billion related to overseas securitization products, including U.S. subprime loan-related products and transactions with monoline insurers. The banks have nearly completed the sale or write-offs of their subprime loan-related and securitization assets, although this is based on the assumption that the securitization market will not collapse entirely, and that the outstanding balance is within a manageable
