SoftBank hit by record losses

Japan’s SoftBank Group reported a record loss on Thursday, after its tech-heavy funds underperformed.

The conglomerate’s Vision Fund unit booked a full-year investment loss of ¥5.28trn (£31.4bn) in the year to December end, after tech stocks globally were hit hard throughout the year.

Overall, SoftBank reported a net loss of ¥970.1bn, narrower than last year’s ¥1.7trn loss, after it sold down some of its stake in Chinese online giant Alibaba. But it was still significantly more than the ¥166.5bn loss forecast by analysts.

In a presentation to investors, SoftBank pointed to a number of "drastic" events in 2022, including war in Ukraine, heightened tensions between the US and China, and instability in the financial system following the collapse of Silicon Valley Bank and Credit Suisse.

In response, SoftBank halted new investments, announced the listing of UK chip designed Arm Holdings in New York and expects to further reduce its Alibaba holding.

It is also reported to be close to selling asset manager Fortress Investment Group for up to $3bn.

Looking ahead, SoftBank told investors that while markets were now calmer worries about geopolitical risks remain.

But it did not rule out making further investments, noting it would continue to "invest in the information revolution" and would look to "strike a balance" between new investments, shareholder returns and financial stability.