Management Greeting

Thank you for your continuing support of Aozora Bank.

In the first half of FY2014, we recorded net income of 23.7 billion yen, placing us soundly on track to achieve our full-year earnings forecast.

The Bank’s positive results reflect our ongoing disciplined and efficient balance sheet management amid sluggish recovery in aggregate domestic loan demand. We also continued our efforts to expand our business franchise by strengthening our business model, which describes our ‘4 Focuses’ as ‘retail banking focusing on senior individual customers,’ ‘proactive approach to SME and other corporate customers,’ ‘collaboration with regional financial institutions’ and ‘advanced services in specialty finance areas.’

In accordance with the Bank’s ‘Comprehensive Recapitalization Plan’, announced in August 2012, we are making steady installment repayments of public funds. The full repayment of public funds remains a corporate priority for the Bank. We intend to repay the remaining amount of public funds as early as possible when conditions are met, carefully considering the Bank’s financial soundness and market conditions.

In order to return value to our shareholders, we have set the dividend payout ratio for common shares at 40% of consolidated net income for as long as the Bank continues repaying public funds, making dividend payments on a quarterly basis.

The Bank aims to become the ‘Primary Secondary Bank: Another Reliable Partner’ for its customers, and we remain committed to taking full advantage of our financial intermediary function in order to contribute to the social and economic growth of the country.

Finally, on behalf of the management team of Aozora Bank, I would like to express my gratitude for your ongoing support.

January 2015
Shinsuke Baba
Representative Director, President and Chief Executive Officer