TOKYO, Sept 12 (Reuters) - Japan's Aozora Bank (8304.T: Quote, Profile, Research, Stock Buzz) said it would miss its full-year forecast by nearly 43 percent and book a loss for the first half as rising bad loans further erode the struggling lender's earnings.
The profit warning marks the latest of several setbacks for Aozora, which is nearly half-owned by U.S. private equity firm Cerberus Capital Management LP [CBS.UL].
It is the second time in two months that the bank has nearly halved its full-year estimates.
The revision also underscores the worsening outlook for small and medium-size lenders in Japan, which are once again faced with higher costs from bad loans as the domestic economy continues to worsen.
For the full year, the bank expects a group net profit of 15 billion yen ($140 million), compared with its previous estimate of 26.2 billion yen.
The bank had originally estimated a profit of 44 billion but sliced that by 40 percent in August as it was forced to further write down the value of its investment in GMAC, the former financing arm of General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz).
Aozora also said it would book a net loss of 4 billion yen in the first half. (Reporting by David Dolan; Editing by Hugh Lawson)
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