WRAPUP 2-Mizuho to raise capital; CBA warns on bad debts

jueves 13 de noviembre de 2008 09:11 CET

* Mizuho to shore up capital, posts $402 mln Q2 loss

* CBA warns bad debts to hit H1 profits

* St George shareholders OK $9 bln takeover by Westpac

* Bank shares fall Asia-wide, CBA hits near 4-yr low

* S.Korea creates $7.2 bln fund to buy bonds (Updates with Mizuho earnings, S.Korea bond fund plans)

By David Dolan and Mette Fraende

TOKYO/SYDNEY, Nov 13 (Reuters) - Mizuho Financial Group (8411.T: Cotización), Japan's second-biggest bank, said it plans to raise fresh capital reportedly worth $3.2 billion and Australia's No.2 lender warned it expects a big jump in bad loans as shockwaves from the global financial crisis rattle the region's banks.

Mizuho, which on Thursday posted a $402 million net loss for the second quarter, would be following in the footsteps of larger rival Mitsubishi UFJ Financial Group (8306.T: Cotización), which said last month it would raise $10.5 billion to offset stock market losses.

Commonwealth Bank of Australia (CBA.AX: Cotización) warned investors to expect a big jump in bad debts and voiced concerns over the economic outlook for at least the next 18 months. [ID:nSYD363142] Asia-Pacific lenders have largely avoided the heavy losses on subprime mortgages that tore through Wall Street, but a weakening economy and plunging equity markets have taken a toll on the sector.   Continuación...