Financial Highlights

FY2023 3rd Quarter Financial Highlights

Net revenue
60.6 billion yen
(5.3 billion yen increase year-on-year)
Business-related profit
18.8 billion yen
(1.2 billion yen increase year-on-year)
Profit attributable to
owners
of parent
-14.7 billion yen
(30.4 billion yen decrease)

1. Key points

  • Net revenue was 60.6 billion yen, an increase of 5.3 billion yen year-on-year
  • Business-related profit (Business profit + Gains/losses on stock transactions) was 18.8 billion yen, an increase of 1.2 billion yen year-on-year. Business-related profit from customer-related business was 36.4 billion yen, an increase of 9.8 billion yen from the previous year mainly driven by Aozora’s Strategic Investments Business
  • As for U.S. non-recourse office loans, we reviewed property valuations from a forward-looking perspective, made additional provisions to the loan loss reserves of 32.4 billion yen and recorded total credit-related expenses of 32.9 billion yen in 3Q
  • We recorded a net loss of 9.3 billion yen in 3Q from the sale of securities as a result of accelerating the disposition of securities with the aim to secure added flexibility in the securities portfolio management and improve profitability in the next fiscal year and beyond. Unrealized losses on the securities portfolio were 81.5 billion yen as of December 31, 2023, a decrease of 11.0 billion yen from September 30, 2023

2. 3Q dividend: No dividend paid for 3Q
  • (No dividend is forecasted for 4Q. As a result, the full-year dividend forecast was revised downwards to 76 yen per share)

3. Information on our revised forecasts for full-year earnings and dividend

Financial highlights

Net revenue

(billion yen)

FY2019

FY2020

FY2021

FY2022

FY2023

1Q

23.3

21.3

26.7

21.4

17.7

2Q

50.1

45.0

52.4

43.3

44.5

3Q

75.0

69.1

79.3

55.2

60.6

Full-year

95.7

96.5

103.0

59.5

-

Business profit

(Business profit)

FY2019

FY2020

FY2021

FY2022

FY2023

1Q

11.0

8.5

13.4

7.3

3.1

2Q

24.9

19.0

25.7

15.0

15.6

3Q

36.8

29.7

38.8

12.9

17.2

Full-year

42.3

42.6

47.8

2.5

-

Ordinary profit

  • Negative figures are not displayed in this graph. For actual figures, please refer to the table below.

(billion yen)

FY2019

FY2020

FY2021

FY2022

FY2023

1Q

16.8

8.7

15.6

11.3

7.3

2Q

29.1

18.9

26.4

20.4

14.3

3Q

42.2

28.8

38.7

18.4

-24.8

Full-year

43.3

38.9

46.2

7.3

-

Profit attributable to owners of parent

  • Negative figures are not displayed in this graph. For actual figures, please refer to the table below.

(billion yen)

FY2019

FY2020

FY2021

FY2022

FY2023

1Q

11.8

7.4

11.5

8.3

6.7

2Q

20.2

15.1

19.4

15.3

12.0

3Q

29.7

22.0

28.5

15.7

-14.7

Full-year

28.1

28.9

35.0

8.7

-

Total assets, loans, deposits

(billion yen)

Mar. 2020

Mar. 2021

Mar. 2022

Mar. 2023

Dec. 2023

Deposits /
Negotiable
certificates of
deposit

3,396.8

4,012.5

4,871.5

5,497.3

5,840.7

Loans and bills discounted

2,954.1

2,948.8

3,317.1

3,881.3

4,073.5

Total assets

5,299.8

5,916.8

6,728.6

7,184.0

7,722.7

  • The point of time (month-year) in the table represents the end of each month.

Capital adequacy ratio*

(billion yen)

Mar. 2020

Mar. 2021

Mar. 2022

Mar. 2023

Dec. 2023

Capital
adequacy
ratio

10.29%

11.03%

10.37%

9.43%

9.34%

Regulatory
capital

473.1

481.5

500.3

490.0

469.5

  • * Basel 3, Domestic standard
  • The point of time (month-year) in the table represents the end of each month.

PL summary

(billion yen)

FY2019

FY2020

FY2021

FY2022

FY2023

1Q

Interim

3Q

Net revenue

95.7

96.5

103.0

59.5

17.7

44.5

60.6

Net interest income

48.7

50.0

51.6

51.0

12.0

25.1

33.9

Non-interest income

46.9

46.4

51.3

8.4

5.7

19.4

26.6

Net fees and commissions

12.6

12.4

14.0

13.3

4.0

10.3

14.7

Net trading revenues

18.0

13.4

16.6

4.1

-1.7

0.1

0.7

Net other ordinary income

16.1

20.5

20.7

-9.0

3.3

8.9

11.1

General & administrative expenses

-53.3

-54.9

-57.7

-59.3

-15.0

-30.4

-45.6

Gains/losses on equity
method investments

-

1.1

2.6

2.3

0.5

1.4

2.2

Business profit

42.3

42.6

47.8

2.5

3.1

15.6

17.2

Credit-related expenses

-11.7

-4.3

-3.7

-1.7

-0.9

-9.9

-42.9

Gains/losses on stock transactions

11.6

2.3

2.0

8.4

5.7

9.4

1.5

Ordinary profit

43.3

38.9

46.2

7.3

7.3

14.3

-24.8

Taxes

-17.7

-12.2

-12.9

-0.6

-1.1

-3.4

8.8

Gains/losses attributable to
non-controlling interests

2.5

2.2

1.9

2.0

0.5

1.0

1.3

Profit attributable to owners of parent

28.1

28.9

35.0

8.7

6.7

12.0

-14.7

Balance sheet summary

(billion yen)

Mar. 2020

Mar. 2021

Mar. 2022

Mar. 2023

Dec. 2023

Loans and bills discounted

2,954.1

2,948.8

3,317.1

3,881.3

4,073.5

Securities

1,073.6

1,393.3

1,478.1

1,278.7

1,375.9

Cash and due from banks

464.2

950.1

1,141.9

1,275.0

1,537.3

Trading assets

259.3

154.6

133.0

151.2

207.6

Other

548.3

469.9

658.3

597.6

528.2

Total assets

5,299.8

5,916.8

6,728.6

7,184.0

7,722.7

Deposits / Negotiable certificates of
deposit

3,396.8

4,012.5

4,871.5

5,497.3

5,840.7

Debentures / Bonds

259.9

198.3

168.9

147.7

193.7

Borrowed money

427.6

349.7

432.3

525.6

562.3

Cash collateral received for securities lent

281.3

431.6

356.9

215.9

293.2

Trading liabilities

211.2

140.4

129.2

121.8

141.1

Other

298.0

294.0

282.3

244.3

281.4

Total liabilities

4,875.0

5,426.8

6,241.3

6,752.9

7,312.5

Total net assets

424.7

490.0

487.2

431.1

410.2

Total liabilities and net assets

5,299.8

5,916.8

6,728.6

7,184.0

7,722.7

  • The point of time (month-year) in the table represents the end of each month.

Results by business segment*

Results by business segment Results by business segment
  • Business revenue(total of net revenue, gains/losses on equity method investments and stock transactions; management accounting basis)
    The Bank’s business segments and revenue management method were changed in FY2022, and FY2021 results are shown based on the new segmentation and method.
  1. Figures for 2Q include all results starting from 1Q up through 2Q, and figures for 3Q include all results starting from 1Q up through 3Q.
  2. Figures are rounded down to the nearest specified unit and ratios are rounded off to two decimal places.