Aozora Bank (8304) Q1 2027 earnings summary

Executive summary

• Profit attributable to owners of parent reached 11.492 billion yen, up 81.7% year-over-year, with a progress rate of 43% toward the annual forecast.

• Ordinary income rose 10.8% year-over-year to 67.282 billion yen for the three months ended June 30, 2026.

• Core earnings improved, driven by higher net interest income and robust non-interest income from M&A-related activities.

• Strategic business initiatives, including collaboration with Daiwa Securities and growth in GMO Aozora Net Bank, contributed to performance.

• Comprehensive income more than doubled year-over-year, reaching 23.528 billion yen.

Financial highlights

• Net revenue rose to 31.7 billion yen (+33% year-over-year); business profit increased to 16.2 billion yen (+77%).

• Net interest income was 15.8 billion yen (+4.2 billion yen year-over-year), with domestic net interest income up 41% and overseas up 27%.

• Non-interest income climbed to 15.9 billion yen (+30%), led by loan-related fees and gains from limited partnerships.

• Total assets stood at 8.645 trillion yen, up from 8.601 trillion yen at March 31, 2026.

• Credit-related expenses were 2.557 billion yen, mainly domestic, within the expected annual range.

Outlook and guidance

• Full-year profit forecast is 27.0 billion yen, with 1Q progress at 43%.

• Dividend forecast is 100 yen per share for FY2026, with 25 yen per share paid in 1Q.

• CET1 ratio expected to improve to nearly 10% due to reduced unrealized losses on securities.

• Management notes risks and uncertainties in achieving forecasts.