Thank you for your continuing support of Aozora Bank.
Aozora’s management team has focused on improving a stable and sustainable level of earnings through a focus on our core businesses, disciplined expense management and de-risking our balance sheet in order to increase corporate value. Aozora reported consolidated net income of ¥22.6 billion for the interim period. This result represented progress of 68% towards the initial full-year forecast of May 12, 2011. On October 31, 2011, we announced the upward revision of our full-year net income forecast from ¥33.0 billion to ¥45.0 billion as well as our annual common share dividend forecast from 3 yen to 9 yen.
Aozora’s Tier 1 ratio as of end-September 2011 was 19.37%. Our capital base remains among the highest in the Japanese banking industry.
Funding from retail customers remains stable representing 67% of total core funding. The Bank maintained sufficient liquidity reserves of approximately ¥600 billion as of September 30, 2011.
The Bank has focused on expanding its business franchise and enhancing its business activities. We have also formed M&A and business alliances which strengthen and expand our core businesses. We believe this enables us to improve our product and service capabilities as well as our ability to respond to customers' needs.
We have one of the strongest capital positions among Japanese banks as well as ample liquidity, and we will stay focused on increasing our corporate value and sustainable profitability through disciplined risk management and a focus on our core businesses.
Finally, on behalf of the management team of Aozora Bank, I would like to express my gratitude for your ongoing support.
January 2012
Brian F. Prince
President and Chief Executive Officer Representative Director
