(Bloomberg) -- Aozora Bank Ltd. shares extended gains as the Japanese lender said it aims to resume dividend payments, and as investor concerns dissipated over losses on US commercial real estate.

The stock surged as much as 9.6%, the most since March 2020, taking its gains to about 18% so far this week. The Tokyo-based bank held a web meeting on Friday with analysts to provide an update of its business situation, a spokesperson said on Wednesday.

There are no additional losses tied to US non-recourse office loans as Aozora Bank is appropriately managing its portfolio, the lender said in presentation material. It aims to increase its annual dividend per share from next fiscal year starting April, the company said. Aozora Bank earlier this month predicted a loss and canceled its dividend, triggering a 33% plunge that week.

Customer-related business is expanding, and the company maintained about ¥1.4 trillion ($9.3 billion) in liquidity as of end-December, the bank said in the presentation.

“We do not think the bank is at a point where it can lift profit expectations right away, but we see this as acknowledgment of the importance of maintaining a dialog with the market,” Morgan Stanley analyst Mia Nagasaka wrote in a report Friday.

Aozora Bank, which had been lending aggressively in the US, said on Feb. 1 it would have its first loss in 15 years because of bad loans tied to properties in the country, triggering concern over exposure by other financial firms.

--With assistance from Taiga Uranaka.

(Updates with chart showing share price moves.)

©2024 Bloomberg L.P.