Thank you for your continuing support of Aozora Bank.
FY2012 represented an important milestone for Aozora Bank. We finalized ‘Aozora Bank’s Comprehensive Recapitalization Plan’ toward a full repayment of public funds over time, which will benefit all of our shareholders, and began the repayment of our public funds. This initiative has long been a corporate priority for the Bank. To improve our share valuation, we have also enhanced returns to common shareholders through the implementation of a 330 million common share buyback (equivalent to approx. 20% of the number of shares issued) and through a dividend policy whereby the Bank has set the dividend payout ratio for common shares at 40% of consolidated net income for as long as the Bank continues repaying its public funds. In addition to a revised Business Revitalization Plan, we announced our new Business Model which takes full advantage of the Bank’s strengths, and set out to realize our vision of becoming the ‘Primary Secondary Bank: Another Reliable Partner’ in our markets.
The Bank has unique strengths including its strong financial base, its highly efficient and agile organization, its nationwide branch network featuring specialized banking services, its mass affluent retail customer base, its longstanding regional financial institution relationships, as well as experience and expertise in specialty finance. Taking advantage of these strengths, we focus on ‘retail banking services for senior individual customers’, ‘a proactive approach to SME customers’, ‘collaboration with regional financial institutions’, and ‘advanced services in specialty finance areas’ in order to expand our business franchise.
In FY2012, net revenue, business profit, and net income all exceeded the full-year forecast, reflecting the Bank’s disciplined risk management, the efficient use of corporate resources and the promotion of the business areas we are focusing on. We have firmly entered the next phase of our business development.
In January 2013, the Bank’s major shareholder, Cerberus, conducted a successful secondary offering of Aozora shares, and as a result, we have a large number of new shareholders.
With new management, the Bank remains focused on efficiency and is committed to developing a business model that leverages its strengths to achieve sustainable growth in order to meet the expectations of its stakeholders, while contributing to the 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.
Representative Director, President and Chief Executive Officer