US Property Losses Trigger 20% Drop in Japanese Bank Aozora
- Aozora follows NYCB in reporting property losses in the US
- US commercial property market has been hit by rising rates
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Japan’s Aozora Bank Ltd. became the second lender in a span of hours to surprise investors with losses tied to US commercial property, sending shares down by the limit and heightening concern over global banks’ exposure to souring real estate bets.
The Tokyo-based bank, Japan’s 16th biggest by market value, said it expects to post a net loss of 28 billion yen ($191 million) for the fiscal year, compared with its previous forecast of a 24 billion yen profit. Shares sank more than 20%.