June 19, 2024
Loans

Aozora Bank Shares Tumble on U.S. Office-Loan Provisions, Foreign-Bond Losses


Published: Jan. 31, 2024 at 9:39 p.m. ET

By Kosaku Narioka

Aozora Bank shares fell sharply after it projected a fiscal-year net loss due to higher provisions for U.S. office loans as well as losses from foreign bonds.

Shares were recently 21% lower at 2,557.0 yen, falling to the day’s trading limit on Thursday morning.

Aozora…

By Kosaku Narioka

Aozora Bank shares fell sharply after it projected a fiscal-year net loss due to higher provisions for U.S. office loans as well as losses from foreign bonds.

Shares were recently 21% lower at 2,557.0 yen, falling to the day’s trading limit on Thursday morning.

Aozora Bank said earlier in the day that it expected to book net loss of Y28.0 billion ($190.5 million) for the fiscal year ending March, down from the previous projection for net profit of Y24.0 billion.

The bank also said it wouldn’t pay a dividend for the latter half of the year to bolster its capital base. It has paid dividends of Y76 per share so far this fiscal year, down from Y154 the previous year.

The bank said it provided for possible losses of Y32.4 billion for U.S. office loans as the office market continues to face adverse conditions due to higher interest rates and a shift to remote work as a result of the pandemic.

The bank also expects to book losses of Y41.0 billion from sales of marketable securities, mainly foreign bonds, due to the rise in U.S. interest rates.

Aozora Bank said it aims to achieve net profit of about Y17.0 billion and hopes to increase dividend for the new fiscal year starting April.

Write to Kosaku Narioka at kosaku.narioka@wsj.com



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent. View more
Accept
Decline