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Awa Bank, Ltd. (JP:8388)
:8388
Japanese Market
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Awa Bank, Ltd. (8388) AI Stock Analysis

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JP:8388

Awa Bank, Ltd.

(8388)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
¥8,321.00
▲(80.50% Upside)
Action:Upgraded
Date:05/16/26
The score is driven primarily by improving profitability and a strong technical uptrend, supported by reasonable valuation. Offsetting these positives is the key risk of cash-flow instability and only modest returns on equity, which lowers confidence in the durability of performance.
Positive Factors
Improving profitability and margins
The multi-year rise in net income and healthy reported margins indicate the bank is improving core earnings from lending and fee activities. Sustained margin expansion bolsters internal capital generation, supports loan growth and dividend capacity, and strengthens medium-term earnings resilience.
Negative Factors
Volatile operating cash flow
Large swings in operating cash flow point to inconsistent cash conversion and earnings quality. This volatility complicates funding, dividend planning and reinvestment decisions, raises the likelihood of short-term liquidity stress, and reduces predictability of free cash available for growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and margins
The multi-year rise in net income and healthy reported margins indicate the bank is improving core earnings from lending and fee activities. Sustained margin expansion bolsters internal capital generation, supports loan growth and dividend capacity, and strengthens medium-term earnings resilience.
Read all positive factors

Awa Bank, Ltd. (8388) vs. iShares MSCI Japan ETF (EWJ)

Awa Bank, Ltd. Business Overview & Revenue Model

Company Description
The Awa Bank, Ltd. is a long-standing Japanese financial institution, delivering a comprehensive array of banking products and services to both individual and corporate clients across Japan. Its financial offerings encompass various deposit accoun...
How the Company Makes Money
Awa Bank’s primary earnings generally come from (1) net interest income—earning interest on loans and other interest-bearing assets while paying interest on customer deposits and wholesale funding—and (2) fee and commission income from financial s...

Awa Bank, Ltd. Financial Statement Overview

Summary
Income statement trends are strong with improving net income and healthy margins, but the balance sheet shows only modest returns on equity and the cash flow profile is volatile (including a deeply negative operating cash flow year), which reduces confidence in earnings quality and consistency.
Income Statement
73
Positive
Balance Sheet
64
Positive
Cash Flow
48
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue93.94B75.71B72.81B85.75B66.11B
Gross Profit81.69B67.62B62.55B77.49B61.72B
EBITDA24.71B20.55B19.27B17.70B19.07B
Net Income15.53B13.20B11.26B10.21B11.11B
Balance Sheet
Total Assets4.17T4.02T3.92T3.85T3.98T
Cash, Cash Equivalents and Short-Term Investments346.44B427.65B402.27B482.87B690.24B
Total Debt225.60B216.41B213.13B128.11B605.05B
Total Liabilities3.77T3.69T3.59T3.57T3.69T
Stockholders Equity399.62B334.22B332.62B278.76B288.40B
Cash Flow
Free Cash Flow11.78B36.74B2.49B-325.82B92.37B
Operating Cash Flow14.17B38.54B5.69B-321.75B96.67B
Investing Cash Flow-104.15B1.99B-72.30B93.25B-37.03B
Financing Cash Flow33.73B65.85B-13.75B-3.60B-2.27B

Awa Bank, Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4610.00
Price Trends
50DMA
6865.40
Positive
100DMA
6383.56
Positive
200DMA
5259.33
Positive
Market Momentum
MACD
228.63
Negative
RSI
65.68
Neutral
STOCH
77.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8388, the sentiment is Positive. The current price of 4610 is below the 20-day moving average (MA) of 7190.50, below the 50-day MA of 6865.40, and below the 200-day MA of 5259.33, indicating a bullish trend. The MACD of 228.63 indicates Negative momentum. The RSI at 65.68 is Neutral, neither overbought nor oversold. The STOCH value of 77.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8388.

Awa Bank, Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥261.85B16.863.00%21.20%17.32%
71
Outperform
¥292.00B18.972.53%16.63%19.98%
69
Neutral
¥306.10B17.113.46%11.64%26.63%
68
Neutral
¥300.23B19.682.13%15.39%26.88%
66
Neutral
¥302.25B15.962.55%18.30%38.07%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
¥233.79B18.552.38%33.44%57.44%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8388
Awa Bank, Ltd.
7,530.00
4,545.66
152.32%
JP:7381
Hokkoku Financial Holdings,Inc.
1,034.00
526.81
103.87%
JP:8336
Musashino Bank, Ltd.
2,621.00
1,489.88
131.72%
JP:8367
Nanto Bank Ltd.
1,859.00
1,011.00
119.22%
JP:8386
Hyakujushi Bank, Ltd.
2,651.00
1,532.70
137.06%
JP:8544
Keiyo Bank, Ltd.
2,591.00
1,536.73
145.76%

Awa Bank, Ltd. Corporate Events

Awa Bank Lifts 2027 Profitability and Dividend Targets After Beating Midterm Goals
May 15, 2026
The Awa Bank, Ltd., a regional lender listed on the TSE Prime Market, provides core banking services to local customers while promoting ESG-related financing and a higher ratio of women in managerial positions. The bank positions itself as a drive...
Awa Bank Tightens Focus on Dividends in Revised Shareholder Return Policy
May 15, 2026
The Awa Bank, Ltd. has revised its shareholder return policy to emphasize a dividend payout ratio of 40% or more of profit attributable to owners of parent, shifting from a broader shareholder return ratio that combined dividends and share buyback...
Awa Bank Sharpens Shareholder Focus With Steep Dividend Hikes
May 15, 2026
The Awa Bank, Ltd. has approved a significant increase in its year-end dividend for the fiscal year ended March 31, 2026, raising it to ¥82.5 per share, including a ¥10 commemorative component, versus a prior forecast of ¥70. Combin...
Awa Bank Lifts Profits and Capital, Boosts Payouts Ahead of 130th Anniversary
May 15, 2026
Awa Bank reported consolidated ordinary income of ¥95.36 billion for the fiscal year ended March 31, 2026, up 20.7% year on year, with ordinary profit rising 22.1% to ¥21.83 billion and profit attributable to owners of parent increasing ...
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.Date of analysis: May 16, 2026