JAPAN'S CREDIT SAISON POSTS 15% FALL IN APRIL-JUNE QTR NET PROFIT

TOKYO, Aug 11, 2008 (AsiaPulse via COMTEX) -- CSASF | Quote | Chart | News | PowerRating -- Credit Saison Co. (TSE:8253) said Friday that group net profit in the April-June quarter fell 15 per cent from a year earlier to 9 billion yen (US$82.1 million).

The lowering of the maximum cash lending rate in June of last year, a byproduct of the revised moneylending law, is seen as the reason for the decline.

Operating revenue fell 5 per cent to 86.9 billion yen and pretax profit skidded 22 per cent to 16.7 billion yen.

Growth in credit purchases slowed as consumers began to curb spending on high-priced items.

Earnings from real-estate-related operations weakened due to the property market slump.

Claims from customers for refunds of overcharged interest decreased. Reserves for paying back the overcharges came to 31.8 billion yen as of June 30, down 2 billion yen from March 31.

A regulation to cap the total amount of unsecured loans that can be extended to an individual to no more than a third of a person's annual income is due to be introduced as early as late 2009.

With this regulation looking certain to shrink the consumer credit card market, Credit Saison has been holding talks with Orix Corp. (TSE:8591) on the possibility of an integration, with an eye toward expanding its business.

(Nikkei)

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