Japan's No. 3 financial group by market capitalization said it expects a group net profit of 170 billion yen (US$1.49 billion; EUR1.04 billion) for its fiscal first half, down from its previous outlook for net profit of 220 billion yen.
The company is set to release earnings report Nov. 19.
Sumitomo Mitsui cited an appraisal loss of about 18 billion yen (US$157.34 million; EUR109.96 million) due to its exposure to residential-mortgage backed securities and asset-backed securities amid the global credit turmoil sparked by defaults in U.S. subprime mortgages to people with poor credit histories.
It said that provisions of about 11 billion yen (US$96.15 million; EUR67.2 million) for subprime-related losses, as well as increasing credit costs, weighed on its profit for the first fiscal half.
The bank revised the size of credit costs to 115 billion yen (US$1.01 billion; EUR710 million), up from a previous forecast for 70 billion yen (US$611.89 million; EUR427.63 million), as some borrowers' business conditions have worsened.
But Sumitomo Mitsui raised its group net profit outlook for the fiscal year ending in March to 570 billion yen (US$4.98 billion; EUR3.48 billion) from 540 billion yen, due to an extraordinary profit for the merger of its leasing unit Sumitomo Mitsui Finance & Leasing with Sumitomo Mitsui Finance & Leasing.
Putin's official spokesman Dmitry Peskov commented on remarks in the US media about failures in launching nuclear-capable missiles in Russia
The Buk system that shot down MH17 belonged to the 53rd SAM missile brigade of the Russian Ministry of Defense, investigators say after looking at a few pictures on the net
It has long been understood that the West has been trying to subject Russian borders to total control. We have not seen such activity even during the Cold War