Aozora Bank (8304) Q4 2025 earnings summary

Executive summary

• Achieved a V-shaped recovery in FY2024, with profit attributable to owners of parent at 20.5 billion yen, reversing a 49.9 billion yen loss in FY2023 and exceeding forecasts.

• Net revenue rose to 85.6 billion yen, up 34.7 billion yen year-over-year, driven by higher net interest income and strong non-interest income.

• Ordinary profit reached 17.5 billion yen, a sharp turnaround from a 54.8 billion yen loss in the prior year.

• Credit-related expenses dropped to 9.4 billion yen from 46.9 billion yen, reflecting improved asset quality and reduced U.S. office loan losses.

• Announced a new mid-term plan 'Aozora 2027' and increased annual dividend to 79 yen/share, with a forecast of 88 yen/share for FY2025.

Financial highlights

• Net revenue: 85.6 billion yen in FY2024, up 68.2% year-over-year; business-related profit: 27.1 billion yen, up 34.5 billion yen.

• Net interest income increased by 6.6 billion yen to 48.7 billion yen; non-interest income surged by 28.0 billion yen to 36.9 billion yen.

• General and administrative expenses rose slightly to 62.8 billion yen.

• Total assets grew to 7,762.4 billion yen (+159.4 billion yen), with loans and bills discounted at 4,206.6 billion yen (+135.2 billion yen).

• Capital adequacy ratio (domestic standard): 9.23% as of March 2025; consolidated: 10.72%.

Outlook and guidance

• FY2025 forecast: net revenue 95.0 billion yen, business profit 32.0 billion yen, ordinary profit 30.0 billion yen, profit attributable to owners of parent 22.0 billion yen, and net income per share 158.98 yen.

• Full-year dividend per common share forecast to rise to 88 yen, maintaining quarterly payments.

• Assumes BOJ policy rate at 0.75% from July 2025 and USD/JPY at 150.