Mizuho Group, the world's biggest bank by assets, has forecast a loss of ¥1.95 trillion ($16.4bn) in the 2002 to 2003 financial year as it increases provisions for bad loans.

The loss, which analysts claimed was the biggest ever corporate loss in Japan, follows earlier estimates of a ¥216bn net loss. The revision was the result of a doubling of full-year loan losses as Mizuho tidies up its balance sheet in response to the weak Japanese economy and a more aggressive tack on bad loans by the Financial Services Agency.