UFJ completes $2.4B U.S. bank sale


UFJ has completed the $2.4 billion sale of its California subsidiary to BNP Paribas.

TOKYO, Japan (CNN) -- Japan's UFJ Holdings said Monday it has completed its sale of U.S. subsidiary, United California Bank, to French financial group BNP Paribas for $2.4 billion.

UFJ, one of Japan's big four banking groups, announced on December 10 it was selling the bank to a BNP Paribas unit, BancWest Corporation.

The U.S. Federal Reserve approved the sale last month.

The Nihon Keizai Shimbun web site reported UFJ as saying Monday the 170 billion yen ($1.3 billion) profit from the sale would be used to write off bad loans at the bank.

UFJ retained its forecast of a 600 billion yen ($4.6 billion) consolidated net loss for the year through March 31, as profit from the sale was factored in when the projection was made.

United California Bank, which earned $121 million last financial year, was created last July through the merger of the California units of Sanwa Bank and Tokai Bank.

Sanwa Bank California was set up in January 1972. Tokai also belongs to the UFJ group.

UFJ shares traded 3.7 percent lower at 336,000 yen Monday, down from Friday's close of 349,000 yen. The broader Nikkei 225 average was down about 1 percent.