Norinchukin Bank reported a 21.8% year-over-year decline in profit for the fiscal first quarter ended June 30 amid higher ordinary expenses.
Profit attributable to owners of the parent dropped to ¥81.67 billion from ¥104.50 billion in the prior-year period, according to an Aug. 7 earnings report.
Ordinary profits slipped to ¥110.32 billion from ¥134.91 billion as ordinary expenses rose to ¥388.29 billion from ¥290.70 billion a year earlier.
The bank's ordinary income grew to ¥498.61 billion from ¥425.61 billion.
Interest income increased to ¥365.97 billion from ¥320.66 billion. Fees and commissions slipped to ¥7.16 billion from ¥7.35 billion, while trading income jumped to ¥44 million from ¥6 million in the year-ago period.
In addition, the Japanese bank plans to increase its capital through an early redemption of ¥1.5 trillion worth of existing subordinated loan, an issuance of up to ¥1.217 trillion perpetual subordinated loan, as well as an issuance of up to ¥562.3 billion lower-dividend rate stocks, both from and to its members on March 29, 2019.
As of Aug. 7, US$1 was equivalent to ¥111.19.