Aozora Bank (8304) Q3 2026 earnings summary

Executive summary

• Net revenue reached 73.0 billion yen, up 10.3 billion yen year-over-year, with a 77% progress rate toward the annual plan.

• Ordinary income for the nine months ended December 31, 2025 was ¥179,774 million, up 4.6% year-over-year, while ordinary profit declined 43.8% to ¥13,294 million.

• Profit attributable to owners of parent was 21.8 billion yen, a 5.5 billion yen increase year-over-year, achieving 99% of the full-year forecast, while another report notes a 25.6% decrease to ¥16,231 million.

• Growth was driven by Strategic Investments, the Daiwa Securities alliance, and GMO Aozora Net Bank, with strong non-interest income from M&A and LBO financing.

• Comprehensive income rose sharply to ¥32,473 million, up 122.6% year-over-year.

Financial highlights

• Business-related profit rose to 27.4 billion yen, up 6.4 billion yen year-over-year, with a 78% progress rate.

• Net interest income increased slightly to 37.2 billion yen, with domestic net interest income up 7.2 billion yen and overseas down 6.5 billion yen.

• Non-interest income surged by 9.5 billion yen to 35.7 billion yen, mainly from fees and gains on limited partnerships.

• Total assets increased to ¥8,419,380 million from ¥7,762,434 million as of March 31, 2025.

• General & administrative expenses were managed within budget at 48.4 billion yen.

Outlook and guidance

• Full-year profit attributable to owners of parent is forecast at 22.0 billion yen, with 99% already achieved by 3Q.

• Full-year FY2025 forecast: ordinary profit of ¥30,000 million (up 70.8% year-over-year), profit attributable to owners of parent of ¥22,000 million (up 7.2%), and net income per share of ¥158.98.

• Dividend per share is forecast at 88 yen for FY2025, with 22 yen per quarter.

• The bank expects continued normalization of risk management as U.S. office loan workouts progress.

• No revision to the previously announced earnings forecast.