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Cerberus-Backed Aozora To Report Huge Loss, President To Quit

TOKYO (Reuters) – Japan’s Aozora Bank (8304.T) is expected to report an annual net loss of nearly 200 billion yen ($2.2 billion) and its president may quit as early as Tuesday, the Nikkei business daily said.

A source familiar with the matter said the bank is planning to announce a revision to its earnings and a reshuffle of top management later in the day.

The bank is scheduled to announce its third-quarter earnings later in the day.

The bank, majority owned by Cerberus Capital Management [CBS.UL], would be reporting its first full year net loss since its formation in 2000, the Nikkei said without citing sources.

President Federico Sacasa will step down to take responsibilty and Deputy President Brian Prince is expected to serve as acting president, the Nikkei said.

An Aozora Bank spokesman declined to comment on the report.

Aozora, which has said it has an indirect exposure of about $137 million to scandal-hit Madoff Securities, said in November it expected a net loss of 27 billion yen for the year to March 31

The once-nationalised bank’s shares have fallen about 80 percent since its listing in November 2006. Cerberus owns just over 50 percent of Aozora’s stock. ($US=91.62 yen)

(Reporting by Ted Kerr and Taiga Uranaka)