Aozora Bank (8304) Q1 2026 earnings summary

Executive summary

• Strong 1Q performance with ordinary income up 4.2% to ¥60.7bn and net revenue at ¥23.8bn, driven by active domestic M&A and Strategic Investments.

• Profit attributable to owners of parent was ¥6.3bn, down year-on-year due to a prior year one-time gain, but up excluding that item.

• Comprehensive income surged 182.3% year-on-year to ¥11.3bn, supported by improved securities valuations.

• Strategic Investments and GANB segments delivered strong results, with GANB achieving positive net income and deposit balances exceeding ¥1tn.

• 1Q dividend set at ¥22/share, with full-year forecast at ¥88/share, up from ¥79 in FY2024.

Financial highlights

• Net revenue: ¥23.8bn (+¥3.0bn YoY); business-related profit: ¥9.1bn (+¥2.0bn YoY); ordinary profit: ¥8.0bn (+35.9% YoY).

• Non-interest income increased by ¥3.5bn YoY, driven by loan-related fees and gains from limited partnerships.

• Net interest income was ¥11.6bn, down ¥0.4bn YoY; domestic net interest income rose by ¥1.4bn, while overseas declined by ¥1.9bn.

• Total assets increased to ¥7.88tn; net assets rose to ¥467.9bn, with a net assets to total assets ratio of 5.8%.

• Credit-related expenses limited at ¥1.1bn; G&A expenses at ¥15.7bn.

Outlook and guidance

• FY2025 plan targets profit attributable to owners of parent at ¥22.0bn and business-related profit at ¥35.0bn.

• Mid-term plan "Aozora 2027" aims for ¥33.0bn profit, ROE of ~7%, and earning assets of ¥5.5tn by FY2027.

• No revisions to previously announced earnings or dividend forecasts.