Aozora Bank Ltd (JP:8304)
:8304
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Aozora Bank
(8304)
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Rating:54Neutral
Price Target:
¥2,499.00
▼(-2.36% Downside)
Action:ReiteratedDate:02/06/26
The score is held back primarily by weak financial performance—sharp revenue decline, negative operating/free cash flow, and high leverage. Offsetting factors include a strong technical uptrend and a reasonable P/E with a solid dividend yield.
Positive Factors
Improving Return on Equity
An improving ROE to 4.55% indicates better utilization of equity capital and operational leverage. Over the medium term this supports sustainable shareholder returns and signals management progress in extracting profit from existing assets, aiding resilience versus peers.
Negative Factors
Steep Revenue Decline
A 22.84% revenue decline is a material structural headwind that reduces scale, weakens fee income potential, and limits ability to absorb fixed costs. Persisting top-line contraction undermines long-term earnings power and necessitates strategic shifts to restore sustainable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Return on Equity
An improving ROE to 4.55% indicates better utilization of equity capital and operational leverage. Over the medium term this supports sustainable shareholder returns and signals management progress in extracting profit from existing assets, aiding resilience versus peers.
Read all positive factors
Aozora Bank (8304) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥360.40B
Dividend Yield3.38%
Average Volume (3M)994.36K
Price to Earnings (P/E)10.6
Beta (1Y)0.85
Revenue Growth5.47%
EPS GrowthN/A
CountryJP
Employees2,476
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)59.35
Shares Outstanding139,789,410
10 Day Avg. Volume1,319,050
30 Day Avg. Volume994,363
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)0.61
Price to Sales (P/S)1.23
P/FCF Ratio-4.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,445.40Price Target Upside-4.46% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)170.12
Revenue Forecast (FY)¥91.12B
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 earns money through standard banking and financial intermediation and related fee businesses. Key revenue streams typically include: (1) Net interest income: interest earned on loans and other interest-bearing assets (such as...
Aozora Bank Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
30
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 213.72B | 223.61B | 223.97B | 104.03B | 114.25B | 112.48B |
| Gross Profit | 100.19B | 101.39B | 55.09B | 23.61B | 22.65B | 21.33B |
| EBITDA | 18.09B | 24.37B | -48.34B | 14.34B | 52.44B | 44.80B |
| Net Income | 19.27B | 20.52B | -49.91B | 8.72B | 35.00B | 28.97B |
Balance Sheet | ||||||
| Total Assets | 7.88T | 7.76T | 7.60T | 7.18T | 6.73T | 5.92T |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 1.41T | 1.58T | 1.28T | 1.14T | 950.11B |
| Total Debt | 1.25T | 855.94B | 1.04T | 683.39B | 1.04T | 1.17T |
| Total Liabilities | 7.41T | 7.30T | 7.21T | 6.75T | 6.24T | 5.43T |
| Stockholders Equity | 459.56B | 451.42B | 384.40B | 438.66B | 493.49B | 494.55B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -62.98B | 0.00 | -67.37B | 248.33B | 722.29B |
| Operating Cash Flow | 0.00 | -56.90B | 0.00 | -61.38B | 253.90B | 728.73B |
| Investing Cash Flow | 0.00 | -147.85B | 167.44B | 213.94B | -23.83B | -223.53B |
| Financing Cash Flow | 0.00 | 46.59B | 281.15B | -18.07B | -16.06B | -14.88B |
Aozora Bank Technical Analysis
Positive
2559.50
Price Trends
2640.88
Negative
2517.07
Positive
2360.82
Positive
Market Momentum
-54.77
Positive
48.15
Neutral
45.36
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 2559.5 is below the 20-day moving average (MA) of 2574.25, below the 50-day MA of 2640.88, and above the 200-day MA of 2360.82, indicating a neutral trend. The MACD of -54.77 indicates Positive momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 45.36 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥347.64B | 9.60 | ― | 2.94% | 1.91% | 9.73% | |
76 Outperform | ¥393.18B | 9.10 | 8.52% | 2.12% | 22.44% | 59.32% | |
72 Outperform | ¥364.27B | 10.18 | ― | 3.01% | 19.69% | 70.91% | |
68 Neutral | ¥396.35B | 11.65 | 3.95% | 2.19% | 9.29% | 28.34% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | ¥427.57B | 14.75 | ― | 1.50% | 15.79% | 78.27% | |
54 Neutral | ¥360.40B | 10.57 | 4.74% | 3.38% | 5.47% | ― |
* Financial Sector Average
JP:8304
Aozora Bank
2,605.50
544.20
26.40%
JP:8368
Hyakugo Bank
1,563.00
828.50
112.80%
JP:8358
Suruga Bank
2,042.00
693.37
51.41%
JP:7380
Juroku Financial Group,Inc.
9,300.00
4,495.94
93.59%
JP:8366
Shiga Bank, Ltd.
9,110.00
3,982.42
77.67%
JP:8524
North Pacific Bank, Ltd.
991.00
470.04
90.23%
Aozora Bank Corporate Events
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...
Aozora Bank Confirms Q3 Dividend and Sets Q4 Payout, Keeping FY2025 Forecast Intact
Feb 4, 2026
Aozora Bank’s board has approved a third-quarter dividend of 22 yen per common share for FY2025, up from 19 yen a year earlier, with the payout funded from retained earnings and totaling 3,044 million yen, effective March 9, 2026. The bank k...
Aozora Bank Lifts Nine-Month Profit, Keeps FY2025 Guidance Intact
Feb 4, 2026
The bank posted nine-month FY2025 consolidated ordinary income of ¥179.8 billion, up 4.6% year on year, while ordinary profit surged 78% to ¥23.7 billion and net earnings rose 34.5% to ¥21.8 billion, supported by improved comprehens...
Aozora Bank Reviews FY2025 Q3 Performance and Capital Metrics
Feb 4, 2026
Aozora Bank released a detailed FY2025 third-quarter overview covering financial highlights, profitability by business unit, balance-sheet trends, and loan performance across domestic and overseas portfolios, while addressing asset quality, securi...
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.