Japan Post records 40% profit increase thanks to cutbacks

Japan Post Group has achieved a 40% year-on-year increase in its net profit in the six months up to September, thanks to extensive cuts in labour costs. The state-owned postal service achieved a 230.7bn yen net profit in the first half of its financial year, with a reduction in staff bonuses and aiding a 55bn yen drop in employee costs.

The impact of the March earthquake and tsunami contributed to an overall 5% decline in revenues, to 8.36 trillion yen for the six months, with mail volumes down 6% compared to the same period last year.

Among its divisions, the only real revenue growth came at the Japan Post Bank, which saw only a 3% growth to 1,14 trillion yen for the six months. The banking division’s 317.2bn yen net profit, along with the 229.9bn yen profit at the Japan Post Insurance Co helped balance out the 62.7bn pre-tax loss incurred by the Japan Postal Service.

Postal revenue for the six months was 782bn yen, down 3.4% from the same period in 2010.