Mitsubishi UFJ: ¥ 340 billion, extraordinary loss: Bank Danamon Indonesia, Tbk., Bank of Ayudhya
Mitsubishi UFJ announcement:
As of March 31,
The Indonesian bank’s stock price acquired last April,
Thai banks acquired in December 2013
they have fallen by more than 50% since the acquisition.
Initially, the amount acquired was much greater than the company’s net assets, and there were accounting assets known as “goodwill.”
However, following the fall in stock prices, this asset was amortized, and it was decided to post an extraordinary loss of 343.3 billion yen in the fiscal year ending March.
In addition, the decline in the stock price of a Philippine bank, which has a 20% stake, will result in a loss of 20 billion yen.
NHK News
Recording of Extraordinary Losses Associated with One-Time Amortization of Goodwill Posted on Financial Statements of Fiscal Year
Ending March 2020 (under J-GAAP)
Tokyo, March 31, 2020 —
MUFG
announced today that it recorded extraordinary losses associated with a one-time amortization of goodwill (“amortization”) in its consolidated financial statements for the fiscal year ending March 31, 2020 (under J-GAAP) following impairment losses on shares of
PT Bank Danamon Indonesia, Tbk., a major commercial bank in the Republic of Indonesia, and
Bank of Ayudhya Public Company Limited, a major commercial bank in the Kingdom of Thailand,
both consolidated subsidiaries of MUFG’s core banking subsidiary
MUFG Bank.
https://www.bk.mufg.jp/global/newsroom/admin/newse0331_1.pdf