Daiwa-Backed Aozora Bank to Keep Cutting US Property Loans

Aozora Bank Ltd., the Japanese bank that had shocked the market with losses on its portfolio of US office property loans, plans to keep cutting its exposure amid continued uncertainties in the sector.

The office rental situation hasn’t improved, said Chief Executive Officer Hideto Oomi at an earnings briefing. People continue to work from home, and the environment hasn’t changed from last year, according to Oomi, who just visited New York where the firm has its biggest office exposure in the US.