Aozora Bank Widens Net Loss Forecast to 49.8 Billion Yen

REUTERS/Toshiyuki Aizawa
The headquarters of Aozora Bank towers in Tokyo

Tokyo, May 2 (Jiji Press) — Japan’s Aozora Bank has widened its consolidated net loss forecast to ¥49.8 billion from ¥28 billion for fiscal 2023, which ended in March.

The downward revision, announced Wednesday, came as tax expenses increased due to a reversal of deferred tax assets.

The bank explained that this is part of accounting procedures related to tax losses caused by the disposition of losses of securities such as foreign bonds with valuation losses and the liquidation of an overseas subsidiary, saying that there is no impact on the bank’s core operations.

In February, Aozora Bank announced its projection of incurring its first net loss in 15 years in fiscal 2023, citing the disposition of losses of securities and the additional booking of reserve funds to prepare for losses arising from U.S. commercial real estate loans.