Aozora Bank: Takeaways from F3/26 Results Briefing: Continued Execution of Measures for Earnings Structure Transformation and Growth

研报英文原文证据摘录

Aozora Bank: Takeaways from F3/26 Results Briefing: Continued Execution of Measures for Earnings Structure Transformation and Growth

Update

May 18, 2026 02:05 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MAozora Bank (8304) | Japan Mia Nagasaka

Equity Analyst

Takeaways from F3/26 Results Mia.Nagasaka@morganstanleymufg.com +81 3 6836-8406

Briefing: Continued Execution of

Measures for Earnings Structure

Aozora Bank (8304.T, 8304 JT)

Banks | Japan

Transformation and Growth Stock Rating Underweight

Industry View Attractive

Price target ¥2,660

Key Takeaways Shr price, close (May 18, 2026) ¥2,666 Mkt cap, curr, basic (bn) ¥311.0

The workout phase for US office loans is complete. Disposal of legacy assets has Avg daily trading value (bn) ¥2.7

also progressed

It appears there is still some way to go before full-scale capital deployment

Briefing takeaways: 1) We believe F3/26 demonstrated growth in the investment

banking business, centered on domestic operations, alongside progress in the

disposal of legacy assets and the strengthening of the securities portfolio. Driven by

LBO loans and domestic corporate loans, synergies from the collaboration with

Daiwa Securities Group exceeded plan by ¥3.5bn on a net business profit basis. US

office loans are transitioning to normal risk management following the completion

of the workout phase. Reduction of credit ETFs in the securities portfolio also

progressed, and the unrealized loss (including valuation gains/losses on hedging

instruments) on that portfolio narrowed to ¥29.5bn at end-March 2026. 2) The

F3/27 plan assumes two additional BoJ rate hikes and projects continued profit

growth driven by expansion in domestic lending and improvement in loan–deposit

spreads.