Aozora Bank Ltd. said Wednesday its full-year profit plunged 94 percent as credit-market losses swelled.

Net income fell to ¥5 billion in the year ended March 31 from ¥81.5 billion a year earlier, the bank, controlled by U.S. equity investment firm Cerberus Capital Management LP, said in a preliminary earnings statement to the Tokyo Stock Exchange.

When it last cut earnings expectations Jan. 31, the bank had forecast net income of ¥26.5 billion for the full year, down from a previous estimate of ¥62.6 billion.