Japan’s six largest banking groups suffered a combined loss of 982.5 billion yen in fiscal 2007 in connection with the U.S. subprime mortgage crisis and the subsequent turmoil in global markets.

The figure was more than triple the combined loss the six groups projected in November 2007.

According to the groups’ earnings reports released between May 15 and Tuesday, consolidated net profit at the six groups totaled 1.866 trillion yen in the fiscal year through March, down by 33.9 percent from a year earlier.

Sumitomo Mitsui Financial Group Inc. (SMFG) was the only banking group that posted an increase in consolidated net profit, but that was buoyed by an extraordinary gain from the merger between leasing business subsidiary SMBC Leasing Co. and Sumisho Lease Co. of the Sumitomo Corp. group in October 2007.

SMFG posted a 130-billion-yen loss related to the U.S. subprime mortgage meltdown.

Industry leader Mitsubishi UFJ Financial Group Inc. said Tuesday its consolidated net profit plunged by 27.7 percent in fiscal 2007 to 636.6 billion yen. Losses related to the subprime mortgage crisis totaled 123 billion yen.

Most affected by the subprime loan problems was Mizuho Financial Group Inc., which reported 645 billion yen in related losses.

Subprime loan-related losses at Sumitomo Trust and Banking Co. and Chuo Mitsui Trust Holdings Inc. stood at 79.3 billion yen and 5.2 billion yen, respectively.

Resona Holdings Inc. booked no related losses.

Net operating profit, which shows profits from the core banking business, at the six groups totaled 3.363 trillion yen in fiscal 2007, down by 3.7 percent from fiscal 2006.

The average amount of outstanding loans, the core source of revenue, fell at many of the six groups in fiscal 2007 due to stagnant domestic demand, although lending grew in overseas markets.

At SMFG, the average balance dropped by 1 percent from fiscal 2006 to 46.676 trillion yen, while the figure fell by 1.3 percent to 56.014 trillion yen at the Mizuho group.

However, overseas lending at SMFG surged by 18 percent to 7.573 trillion yen while the Mizuho group saw a 10-percent rise to 9.891 trillion yen.

The drop in net profit was also attributed to a decrease in another important revenue source–commission fees on sales of investment trusts and other financial instruments–amid falling stock prices.

Profit from services, including sales commission fees, fell by 6 percent in fiscal 2007 to 332.3 billion yen at SMFG.

At Mitsubishi UFJ Financial Group and the Mizuho group, profits from services stood at 497 billion yen and 351.7 billion yen, respectively, each shrinking by 12 percent.

The costs for the disposal of nonperforming loans at the six groups grew by 40 percent in fiscal 2007 from a year earlier to 385.7 billion yen due to the increased number of bankruptcies of small businesses.