The bank's Tokyo-listed shares fell for a second day, tracking losses in U.S. regional lenders overnight.
Aozora Bank shares hit near three-year lows Friday, as investors continued to hammer the Japanese commercial lender after it downgraded its annual outlook to a loss on bad U.S. commercial real estate loans.
"U.S. real estate lending for around 10% of (its) total lending with a CET1 ratio of below 7% due to unrealized losses on securities has no precedent."
Aozora's update came shortly after U.S. regional bank New York Community Bancorp announced a surprise net loss of $252 million for the fourth quarter.
"However, higher losses tied to commercial real estate office exposure, increase in criticized loans tied to multi-family CRE [commercial real estate] are a reminder of ongoing credit normalization that we are likely to witness across the industry," Bank of America U.S. banking analysts wrote.
Persons:
Goldman Sachs, Aozora, Masahiko Sato, Sato, NYCB, — CNBC's Michael Bloom
Organizations:
Aozora Bank, Japan's Aozora Bank, Nikkei, Equity, SMBC Nikko Securities, New, New York Community Bancorp, Signature Bank, Bank of America, Bank of America U.S
Locations:
Tokyo Japan, Tokyo, U.S, New York