Want to see JP:8304 full AI Analyst Report?
Top Page
Aozora Bank
(8304)
Select Model
Select Model
Rating:56Neutral
Price Target:
¥3,318.00
▲(9.36% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by mid-range financial quality due to historical earnings/cash-flow volatility and higher leverage despite the recent profitability recovery. Valuation (low-to-moderate P/E and a ~3.34% dividend yield) and a mildly positive trend versus moving averages provide support, but mixed momentum indicators limit upside in the overall score.
Positive Factors
Diversified revenue streams
Aozora's business model spans net interest income, fees and trading, giving multiple durable profit engines. This reduces reliance on a single cycle, enabling the bank to offset weaker loan spreads with fee or trading income and sustain revenue across changing rate and activity environments.
Negative Factors
Rising leverage
Leverage has increased materially, raising balance-sheet risk and sensitivity to funding costs. Higher debt levels constrain capital flexibility, amplify losses under stress and could increase regulatory or market pressure on capital ratios, limiting strategic options over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue streams
Aozora's business model spans net interest income, fees and trading, giving multiple durable profit engines. This reduces reliance on a single cycle, enabling the bank to offset weaker loan spreads with fee or trading income and sustain revenue across changing rate and activity environments.
Read all positive factors
Aozora Bank (8304) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥420.22B
Dividend Yield3.03%
Average Volume (3M)994.36K
Price to Earnings (P/E)13.6
Beta (1Y)0.88
Revenue Growth12.37%
EPS Growth60.15%
CountryJP
Employees2,515
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)185.75
Shares Outstanding139,789,410
10 Day Avg. Volume1,319,050
30 Day Avg. Volume994,363
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)0.72
Price to Sales (P/S)1.52
P/FCF Ratio2.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,870.00Price Target Upside-5.41% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)197.94
Revenue Forecast (FY)¥106.60B
Aozora Bank Business Overview & Revenue Model
Company Description
Aozora Bank, Ltd., alongside its subsidiaries, delivers a broad spectrum of banking products and financial services both within Japan and on a global scale. Its operations are structured across six key divisions: Retail Banking, Institutional Bank...
How the Company Makes Money
Aozora Bank primarily earns money through (1) net interest income, (2) fee and commission income, and (3) trading and investment-related income, alongside other operating income typical of a commercial bank.
1) Net interest income (core banking s...
Aozora Bank Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
45
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 226.46B | 223.61B | 223.97B | 104.03B | 114.25B |
| Gross Profit | 120.62B | 101.39B | 55.09B | 23.61B | 22.65B |
| EBITDA | 34.54B | 24.37B | -48.34B | 14.34B | 52.44B |
| Net Income | 25.71B | 20.52B | -49.91B | 8.72B | 35.00B |
Balance Sheet | |||||
| Total Assets | 8.60T | 7.76T | 7.60T | 7.18T | 6.73T |
| Cash, Cash Equivalents and Short-Term Investments | 2.02T | 1.41T | 1.58T | 1.28T | 1.14T |
| Total Debt | 1.31T | 855.94B | 1.04T | 683.39B | 1.04T |
| Total Liabilities | 8.11T | 7.30T | 7.21T | 6.75T | 6.24T |
| Stockholders Equity | 479.94B | 451.42B | 384.40B | 438.66B | 493.49B |
Cash Flow | |||||
| Free Cash Flow | 116.15B | -62.98B | 0.00 | -67.37B | 248.33B |
| Operating Cash Flow | 118.46B | -56.90B | 0.00 | -61.38B | 253.90B |
| Investing Cash Flow | -497.40B | -147.85B | 167.44B | 213.94B | -23.83B |
| Financing Cash Flow | 486.96B | 46.59B | 281.15B | -18.07B | -16.06B |
Aozora Bank Technical Analysis
Positive
3034.00
Price Trends
2866.34
Positive
2733.02
Positive
2581.36
Positive
Market Momentum
109.13
Negative
74.30
Negative
90.20
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8304, the sentiment is Positive. The current price of 3034 is below the 20-day moving average (MA) of 3057.17, above the 50-day MA of 2866.34, and above the 200-day MA of 2581.36, indicating a bullish trend. The MACD of 109.13 indicates Negative momentum. The RSI at 74.30 is Negative, neither overbought nor oversold. The STOCH value of 90.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8304.
Aozora Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥511.48B | 15.72 | 5.51% | 1.63% | 29.10% | 91.90% | |
72 Outperform | ¥444.06B | 13.12 | 11.26% | 2.18% | 12.08% | 86.41% | |
71 Outperform | ¥419.04B | 15.44 | ― | 2.94% | 14.34% | 32.85% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | ¥551.76B | 22.58 | ― | 1.50% | 23.01% | 25.19% | |
61 Neutral | ¥425.29B | 17.02 | ― | 3.01% | 25.56% | 26.08% | |
56 Neutral | ¥420.22B | 13.62 | 5.47% | 3.03% | 12.37% | 60.15% |
* Financial Sector Average
JP:8304
Aozora Bank
3,259.00
1,036.72
46.65%
JP:8368
Hyakugo Bank
2,121.00
1,349.59
174.95%
JP:8358
Suruga Bank
2,735.00
1,309.24
91.83%
JP:7380
Juroku Financial Group,Inc.
2,416.00
1,366.48
130.20%
JP:8366
Shiga Bank, Ltd.
2,553.00
1,301.71
104.03%
JP:8524
North Pacific Bank, Ltd.
1,221.00
586.00
92.28%
Aozora Bank Corporate Events
Aozora Bank Launches New Venture Debt Fund as Specified Subsidiary
Aug 5, 2026
Aozora Bank, Ltd., a Tokyo-based commercial bank listed on the TSE Prime Market, has been developing its investment business through venture debt funds managed by its consolidated subsidiary Aozora Corporate Investment Co., Ltd. The group uses inv...
Aozora Bank Raises First-Quarter Dividend, Confirms Full-Year Payout Target
Jul 31, 2026
Aozora Bank’s board has approved a first-quarter FY2026 dividend of 25 yen per common share, with a record date of June 30, 2026 and payment from retained earnings. The payout totals 3,461 million yen and is set for an effective date of Sept...
Aozora Bank Delivers Strong Q1 FY2026 Results and Confirms Dividend, Earnings Outlook
Jul 31, 2026
Aozora Bank reported strong results for the first quarter of FY2026, with ordinary income rising 10.8% year-on-year to ¥67.3 billion and profit attributable to owners of parent jumping 81.7% to ¥11.5 billion. Net income per share almost ...
Aozora Bank Launches “Creating Possibilities” Brand Campaign
Jul 31, 2026
Aozora Bank has launched a new brand communications campaign called “Creating Possibilities,” introduced in July 2026 alongside its FY2026 first-quarter results. The initiative highlights the bank’s commitment to advancing with c...
Aozora Bank Sets Terms for New Executive Stock Option Grant
Jul 14, 2026
Aozora Bank has finalized the terms for a new issuance of equity compensation-type stock options aimed at seventeen executive officers who are not serving concurrently as directors. The program covers 2,435 stock option units tied to 24,350 common...
Aozora Bank Sets Detailed Rules for Adjusting and Pricing Stock Options
Jun 23, 2026
Aozora Bank has detailed the mechanics for adjusting stock options granted on its common shares in the event of stock splits, reverse splits, mergers, company splits, or share exchanges. The framework ensures that the number of underlying shares l...
Aozora Bank Deepens Daiwa Alliance While Emphasizing Management Independence
Jun 23, 2026
Aozora Bank has formalized a capital and business alliance with Daiwa Securities Group, aimed at deepening collaboration across corporate lending, real estate finance, MA and wealth management to generate new value for both groups. Daiwa, already ...
Aozora Bank Confirms Final Capital Adequacy Ratios for FY2025
Jun 16, 2026
Aozora Bank has finalized its capital adequacy ratios as of March 31, 2026, confirming that the figures are unchanged from the preliminary data released in May. The consolidated capital adequacy ratio remains at 10.87% and the non-consolidated rat...
Aozora Bank Lifts Full-Year Dividend Above Forecast on Strong FY2025 Profit
May 14, 2026
Aozora Bank has approved a fourth-quarter dividend of 25 yen per share for fiscal 2025, raising the total annual dividend to 91 yen per share, above its initial full-year forecast of 88 yen. The higher payout reflects profit attributable to owners...
Aozora Bank Delivers Strong FY2025 Earnings and Raises Dividend Outlook
May 14, 2026
Aozora Bank reported a 4.7% increase in consolidated ordinary income to ¥242.3 billion for FY2025, with ordinary profit surging 54.8% to ¥27.2 billion and profit attributable to owners of parent up 25.3% to ¥25.7 billion. Net income...
Aozora Bank Ties FY2025 Results to Mid-Term Growth Plan and Capital Strategy
May 14, 2026
Aozora Bank released its FY2025 financial results alongside forecasts for FY2026 earnings and dividends, detailing profit and loss performance, segment results, net interest and non-interest income, and balance sheet trends. The bank also outlined...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.