Operating profits improved in response to increase in other income

Banks' operating profits increased in January March 2004 quarter on quarter in re-sponse to an increase in other income, especially net income from securities and foreign exchange transactions. The improved results of the life insurance business, together with one-off capital gains, also contributed to group results. By contrast, net interest income declined further in response to lower interest rate margins and a fall in the gen-eral level of interest rates. Capital adequacy continues to be sound.