Aozora Bank widens net loss forecast to 49.8 billion yen

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

The downward revision, announced on Wednesday, came as tax expenses rose 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 sale of losses on securities such as foreign bonds with valuation losses and the liquidation of a foreign subsidiary, and said there is no impact on the bank’s core business.

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