Aozora Bank (8304) Q2 2025 earnings summary

Executive summary

• Net revenue for FY2024 interim was ¥41.4B, down ¥3.1B year-on-year, with a 49% progress rate toward full-year forecast.

• Ordinary income for the first six months of FY2024 was ¥115.1B, down from ¥135.7B year-over-year.

• Profit attributable to owners of parent was ¥11.9B, nearly flat year-on-year, at 66% of the full-year plan, while another report notes a 15.1% decline to ¥9.99B.

• Comprehensive income improved to ¥17.1B from a loss of ¥3.3B in the prior year.

• GANB corporate accounts exceeded 150,000, with profitability expected from 2H FY2024.

Financial highlights

• Net interest income (excluding investment trust gains) rose ¥3.6B (+17.5% YoY), mainly from higher yen rates and domestic lending.

• Net interest income (consolidated) for six months was ¥81.7B, down from ¥84.9B YoY.

• Non-interest income declined ¥2.6B YoY, mainly due to lower gains on REIT and equity sales.

• General and administrative expenses remained stable at ¥30.1B–¥30.3B.

• Credit-related expenses were limited, with a net expense of ¥3.6B, mainly for U.S. office loans and domestic borrowers.

Outlook and guidance

• Full-year dividend forecast is ¥76 per share, with 2Q dividend at ¥19.

• Full-year FY2024 consolidated ordinary profit forecast is ¥24.0B; profit attributable to owners of parent is projected at ¥18.0B.

• Additional business profit targets for FY2027 set at ¥10B from Daiwa alliance synergies.

• GANB expected to maintain positive business profit from 2H FY2024.

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