Aozora Bank Ltd (JP:8304)
:8304
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Aozora Bank
(8304)
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Rating:56Neutral
Price Target:
¥2,717.00
▲(2.05% 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
Profitability Recovery
A clear earnings recovery to ¥25.7B in 2026 from a large loss in 2024 indicates the bank can restore profitability after stress. Durable recovery improves retained earnings, supports capital rebuilding, and strengthens capacity to fund lending and absorb future credit shocks.
Negative Factors
Rising Leverage
Leverage rising to ~¥1.31T and a history of high debt-to-equity increases balance-sheet vulnerability. Higher indebtedness can tighten regulatory/capital constraints, raise funding costs, and limit loss-absorbing capacity, constraining sustainable lending growth and strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
A clear earnings recovery to ¥25.7B in 2026 from a large loss in 2024 indicates the bank can restore profitability after stress. Durable recovery improves retained earnings, supports capital rebuilding, and strengthens capacity to fund lending and absorb future credit shocks.
Read all positive factors
Aozora Bank (8304) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥369.39B
Dividend Yield3.38%
Average Volume (3M)994.36K
Price to Earnings (P/E)14.2
Beta (1Y)0.87
Revenue Growth4.61%
EPS Growth17.29%
CountryJP
Employees2,476
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)139.25
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
¥2,647.50Price Target Upside-0.56% Downside
Rating ConsensusStrong Sell
Number of Analyst Covering4
EPS Forecast (FY)203.69
Revenue Forecast (FY)¥101.70B
Aozora Bank Business Overview & Revenue Model
Company Description
Aozora Bank, Ltd., together with its subsidiaries, provides various banking products and services in Japan and internationally. It operates through Retail Banking Group, Institutional Banking Group, Allied Banking Group, Specialty Finance Group, I...
How the Company Makes Money
Aozora Bank primarily makes money through (1) net interest income and (2) fee- and commission-based income, supplemented by (3) trading and investment-related gains where applicable.
1) Net interest income (spread business)
- The bank collects de...
Aozora Bank Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 213.72B | 226.46B | 223.61B | 223.97B | 104.03B | 114.25B |
| Gross Profit | 100.19B | 120.62B | 101.39B | 55.09B | 23.61B | 22.65B |
| EBITDA | 18.09B | 34.54B | 24.37B | -48.34B | 14.34B | 52.44B |
| Net Income | 19.27B | 25.71B | 20.52B | -49.91B | 8.72B | 35.00B |
Balance Sheet | ||||||
| Total Assets | 7.88T | 8.60T | 7.76T | 7.60T | 7.18T | 6.73T |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 2.02T | 1.41T | 1.58T | 1.28T | 1.14T |
| Total Debt | 1.25T | 1.31T | 855.94B | 1.04T | 683.39B | 1.04T |
| Total Liabilities | 7.41T | 8.11T | 7.30T | 7.21T | 6.75T | 6.24T |
| Stockholders Equity | 459.56B | 479.94B | 451.42B | 384.40B | 438.66B | 493.49B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 116.15B | -62.98B | 0.00 | -67.37B | 248.33B |
| Operating Cash Flow | 0.00 | 118.46B | -56.90B | 0.00 | -61.38B | 253.90B |
| Investing Cash Flow | 0.00 | -497.40B | -147.85B | 167.44B | 213.94B | -23.83B |
| Financing Cash Flow | 0.00 | 486.96B | 46.59B | 281.15B | -18.07B | -16.06B |
Aozora Bank Technical Analysis
Positive
2662.50
Price Trends
2626.46
Positive
2620.69
Positive
2448.71
Positive
Market Momentum
25.08
Positive
49.57
Neutral
24.47
Neutral
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 2662.5 is below the 20-day moving average (MA) of 2666.95, above the 50-day MA of 2626.46, and above the 200-day MA of 2448.71, indicating a bullish trend. The MACD of 25.08 indicates Positive momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 24.47 is Neutral, 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 | ¥483.33B | 16.33 | 3.95% | 2.19% | 16.41% | 51.17% | |
72 Outperform | ¥394.96B | 10.68 | 8.52% | 2.12% | 11.88% | 85.95% | |
72 Outperform | ¥357.65B | 13.64 | ― | 3.01% | 25.56% | 26.08% | |
71 Outperform | ¥374.76B | 12.86 | ― | 2.94% | 14.34% | 213.31% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | ¥460.26B | 20.42 | ― | 1.50% | 18.76% | 15.43% | |
56 Neutral | ¥369.39B | 14.16 | 4.74% | 3.38% | 4.61% | 17.29% |
* Financial Sector Average
JP:8304
Aozora Bank
2,659.50
616.03
30.15%
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Aozora Bank Corporate Events
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...
Aozora Bank to Tie Directors’ Pay to Performance With Restricted Stock Plan
Apr 22, 2026
Aozora Bank plans to introduce a new performance-linked restricted stock remuneration plan for its internal directors, replacing its existing equity compensation-type stock options if approved at the June 23 shareholders’ meeting. The scheme...
Aozora Bank Gains Regulator Nod to Adopt Internal Ratings-Based Capital Rule
Mar 26, 2026
Aozora Bank, listed on the Tokyo Stock Exchange Prime Market and headquartered in Tokyo, operates as a commercial bank offering lending and other financial services while emphasizing strong internal controls and credit risk management to support a...
Aozora Bank Reports Stable Basel III Capital Ratios at Year-End 2025
Feb 17, 2026
Aozora Bank reported a consolidated capital adequacy ratio of 10.47% and a Common Equity Tier 1 (CET1) ratio of 9.1% as of December 31, 2025, under Japan’s domestic implementation of Basel III. The non-consolidated capital adequacy ratio sto...
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.