Net profit estimate lowered for Japan Post group after privatization

A faster-than-expected drop in postal savings has prompted Japan Post Corp to lower a net profit estimate to 508 billion yen for its group in fiscal 2008 after the postal system’s privatization this October, informed sources said Wednesday.

For fiscal 2011, which ends in March 2012, the net profit is estimated at 587 billion yen for the group that will consist of Yucho (postal savings) Bank, Kampo Life Insurance Co, a mail service company, a post office over-the-counter services firm and their holding company. The number of employees the group will take on from the postal system as of the privatization is estimated at 241,400, down some 10,000 from the previous estimate given in July 2006, as some 10,000 workers voluntarily left the system at the end of March.