Rakuten Bank Shares Rise Sharply After News of Potential Restructuring
By Kosaku Narioka
Rakuten Bank shares rose sharply following news that the bank and its parent are considering restructuring the group's financial businesses.
Shares of Rakuten Bank were recently 4.7% higher and shares of its parent Rakuten Group were up 3.0%.
Rakuten Bank said Monday that its board is scheduled to discuss a potential restructuring of the group's financial businesses later in the day.
The bank made the statement following local media reports that Rakuten Group plans to merge several of its financial businesses into the listed Rakuten Bank as part of its efforts to improve its operating efficiency and to strengthen the business.
The financial businesses to be integrated include its online brokerage and credit card services, the reports said.
The financial segment has been the e-commerce giant's profit center in recent years as its mobile business has consistently posted losses.
Profit from its financial segment, including its online banking, brokerage and credit card services, climbed 37% to 122.915 billion yen ($812.2 million) in 2023, helping support the group's bottom line.
Rakuten Group's net loss narrowed to Y339.47 billion last year from Y377.22 billion in 2022.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
March 31, 2024 23:02 ET (03:02 GMT)
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