Aozora Bank (8304) Q4 2026 earnings summary

Executive summary

• FY2025 profit attributable to owners of parent was 25.7 billion yen, up 25% year-over-year and 17% above forecast, with a full-year dividend per share of 91 yen, up 12 yen year-over-year.

• Consolidated net revenue rose to 98.6 billion yen, up 12.9 billion yen year-over-year, with business profit at 34.5 billion yen, up 9.5 billion yen.

• Ordinary profit reached 27.2 billion yen, up 9.6 billion yen year-over-year, and comprehensive income doubled to 41.5 billion yen.

• Domestic loan outstandings rose 9% year-over-year, driving a 41% increase in domestic net interest income; non-interest income grew 25% year-over-year, led by LBO loans and capital gains from investment funds.

• Overseas net interest income declined by 6.6 billion yen year-over-year due to lower loan balances and narrower credit spreads; U.S. office loan NPLs' special treatment period ended, shifting to normalized risk management.

Financial highlights

• Net revenue for FY2025 was 98.6 billion yen, up 12.9 billion yen year-over-year and 104% of forecast.

• Business profit reached 35.2 billion yen, up 8.1 billion yen year-over-year; ordinary profit was 27.1 billion yen, up 9.6 billion yen.

• Net interest income was 52.3 billion yen, up 3.6 billion yen; non-interest income was 46.2 billion yen, up 9.3 billion yen.

• Total assets at March 31, 2026 were 8.6 trillion yen, with loans at 4.4 trillion yen and securities at 1.4 trillion yen.

• Full-year dividend per share was 91 yen, up 12 yen year-over-year.

Outlook and guidance

• FY2026 profit attributable to owners of parent is forecast at 27.0 billion yen, with net revenue projected at 111.0 billion yen and business profit at 44.0 billion yen.

• Full-year dividend per share forecast for FY2026 is 100 yen.

• Assumes two BOJ policy rate hikes in FY2026 and USD/JPY at 150.

• Management notes forecasts are subject to risks and actual results may differ materially.