Lower Euro interest rate would help reduce housing costs for ORIX Europe and positive for recycling activities for renewable energy projects at Elawan. So dollar and Yen’s interest rates decline would be supported to the strategy of ORIX in many of the times. I would like to continue with the status of each segment. First, corporate financial services and maintenance leasing, please turn to page 12. For the nine months ended December 2023, the segment profit was up 2% year-on-year at 59.2 billion yen. Profits were higher in corporate financial services, thanks to solid earnings in fee-related businesses and profit contribution from M&A and into services. In auto, rental car demand remained strong and the prices of what used autos continue to trend at high levels.
In addition, for this year, prioritizing more profitable business during sales activities has yielded results pushing the auto business to its third year in a row of record profits by end of Q3 and the segment is poised to post record profits for the full year again. Assets are flat overall with assets in corporate financial services slightly lower and rental car fleet in the auto division being renewed. Please turn to page 14. This is the real estate segment. Segment profits were up 110% year-on-year to 51.4 billion yen for the first nine months. Investment in facilities segment realized a large investment gain in Q3, resulting in a substantial increase in profits year-on-year. Daikyo profits have grown year-on-year for three consecutive quarters contributing to the segment’s sharp increase in profits.
We are proactively setting properties in the asset recycling business like logistics centers and also initiating new development projects in carefully selected areas and Daikyo continues to acquire sites in favorable areas. And all-in-all the segment assets increased by 70.6 billion yen versus the end of the prior year. We will continue this business model to invest in high potential projects and turning them profitalble. Please turn to page 16 for the investment and concession. Segment profits rose 235% year-on-year to 23 billion yen. The PE investment achieved a strong profit gains on the back of exits during Q3 and also thanks to profit contributions from DHC, which we invested in the prior fiscal year. And the profit from concession is increasing as with real estate.
Our first aim is rapid return to pre-COVID a profit levels and our approach is working, which is investment made during the pandemic period. Segment asset were up 195.4 billion versus the prior year end, pulling out the investment and mezzanine financing to Toshiba. Please turn to page 18. Segment profit was down by 38% year-on-year to 19.8 billion yen. Excluding the impact of last year’s gain on sale of our partial Ormat stake, profits were up year-on-year. The bottom left graph shows the segment profits. In the domestic business, profits for the nine month were steady year-on-year. Although output caps for solar power generation in some regions impacted earnings in the first quarter, high number of sunny days from Q2 offset this negative impact.
And the profits from overseas energy business were year-on-year owing to the absence of earlier gains and the higher hedging costs of overseas investments as a result of elevated Euro interest rates. Meanwhile, ORIX power sales volume increased, thanks to higher generating capacity. Last year, a major renewable energy company decided to withdraw from an offshore wind project, however, we still see strong demand for renewable energy worldwide. This business is positioned as a growth driver and we will utilize experience both overseas and in Japan to originate new opportunities. Moving on to insurance segment on page 20. Segment segments profits were up 101% to 53.4 billion. COVID related insurance payouts from last year fell and high investment income held the segment post sharply higher profits.
Premium income, mostly from wholesale — whole life insurance was also healthy. Segment assets rose by 155.3 billion yen owing to an increase in investment securities and impact of FX. Please turn to page 22, banking and credit segment. Segments profits were up 8%, 26.9 billion yen. In banking, profits are up year-on-year, earnings from real estate investment loan grew on the back of higher long-term interest rates, while the increase in deposit interest was kept at a certain level. In addition, Orix Bank continues to grow it’s trust assets and the higher earnings from trust banking also contributed. Earnings in the credit unit were flat year-on-year. Segment assets were up 51.8 billion yen, reflecting the increase in lending as a bank that focuses in merchant banking.
As part of this business, Orix Bank originates loans for corporate clients in priority areas such as renewable energy and logistics centers, and then securitizers the assets into debt products and using the trust banking license and sell these products to investors. Please turn to page 24, aircraft and ships. Segment profit fell 5% year-on-year to 16.1 billion yen. In the ship segment, profits were down year-on-year as the business aggressively sold ship holdings last year, took advantage of the several pricing, but this is lining with projections and the ships prices remain high and in the segment we sold four vessels this fiscal year. Aircraft leasing, as I mentioned earlier, is enjoying healthy progress. At Avolon, highest total interest rates have been a drag and the business was loss making on a cumulative basis in the nine months.
However, the operating environment is improving and it has been profitable for the two consecutive quarters in Q2 and Q3, even after the hedging costs. Segment assets were up 123.2 billion yen versus the prior year end reflecting the impact in FX and the aircraft purchases. Next is ORIX USA on page 26. Segment profits were down 16% year-on-year to 27.8 billion and the primary reason for this was fewer capital gains booked in the PE business. Meanwhile, the credit business saw earnings rise. We have strengthened risk management from early stage and become very selective with new deals and been running in credit cost despite elevated interest rates, while still enjoying higher financial earnings. Breakdown of profits by this line can be found on page 27 of your handout for your reference later.
Segment assets are down by 10.8 billion versus prior year end, even after considering the impact of weaker yen because we have been selective. While we cannot be overly optimistic owing to the lack of visibility concerning this market, we continue to operate the business with an awareness that it might bottom out quite soon. Please turn to page 28. This is ORIX Europe. Segment profits fell 42% year-on-year to 20.8 billion yen in the prior year and the year before OCE ebooks performance fees of higher than a 10 billion but because of the market situation this shrink, and increase in hedging costs stemming from higher interest rates lead to lower profits. OCE has launched — developed and launched some active ETF. This is clear and OCE is promoting efforts to cross sell financial products across different group companies.
Please turn to page 30 Lastly, I would like to talk about the Asia and Australia segment. Segment profits were down 40% year-on-year, 20.7 billion yen. Although leasing and loans were growing in South Korea, Australia and Asia, profits will lower year-on-year on the absence of the gain on sale of the station affiliate. Segment assets were up 163.4 billion yen versus prior year end reflecting the impact of FX and new lease executions. Segment assets and overview of Asia is shown on page 31 for your reference. And, as the footnote says, ORIX’s exposure to Taiwan through leasing and investments is as little as 70 billion yen accounting for just 4.4% of assets in this segment. And in fiscal year 2024 March end overall interest rates have remained higher and longer than anticipated in Europe and America, and earnings growth overseas has suffered.
Meanwhile, benefits from a weaker yen and strong in-bound travel demand have helped our domestic business profit trend above plan. We will concentrate on achieving our net income target of 330 billion yen for fiscal year 2024 March end, and then lay the foundation to reaching the fiscal year 2025 March end net profit target of 400 billion yen. That concludes my explanation about Q3. Thank you for your kind attention.
Operator: Thank you. We are now ready for the Q&A session. [Operator Instructions] So we have from Mizuho Securities, Sakamaki san. Over to you.
Naruhiko Sakamaki: I am Sakamaki from Mizuho Securities. I have one question to ask. So achieving the target for this year and also planning for the increase of profit in the next year, and also your plan to have capital recycling, could you mind updating by referring to page eight of your slide? And there have not been any updates from November, I believe. So any kind of outlook for the exit, the size? Any kind of changes that you have been experiencing from the time of the second quarter results, if you could give us a flavor?
