IX · ORIX Corporation

This disposition represents a material strategic pivot for ORIX Corporation, shifting away from direct banking operations to concentrate on higher-ROE asset management and capital-light financial services — aligning with its stated 2035 targets of 15% ROE and 1 trillion yen net income. The decision follows recognition of structural industry shifts: rising interest rates, intensified cross-sector competition, and accelerating digitalization, which collectively challenge the standalone viability of ORIX Bank’s niche model despite its solid financial performance and leadership in real estate investment lending. By transferring ORIX Bank to Daiwa Next Bank — a platform integrated with securities services, backed by Daiwa Securities Group’s capital and customer base — ORIX secures optimal long-term value realization while exiting a capital-intensive business line. The transaction delivers immediate financial impact: a projected ¥124.2 billion pre-tax gain in consolidated results for FY2027, derived from the difference between the agreed transfer price and the carrying value of ORIX Bank’s net assets (¥270,399 million as of FY25.3). Importantly, the gain is non-recurring and does not reflect ongoing operational strength; rather, it signals portfolio rationalization. With ORIX Bank contributing ¥20.9 billion in net income in FY25.3 — roughly 1.1% of ORIX’s consolidated net income of ¥1,892 billion in FY25 (per prior disclosures) — the loss of recurring earnings is modest relative to the strategic benefit and capital release. The absence of disclosed financing terms, regulatory conditions, or third-party approvals suggests execution risk is low, and the October 2026 closing timeline implies near-term certainty. For investors, this event underscores ORIX’s disciplined capital allocation and commitment to its long-term capital efficiency goals, though future growth must now be driven entirely outside the banking segment.