Management Greeting

Thank you for your continuing support of Aozora Bank.

While the Japanese economy continued its moderate recovery in FY2014, we experienced ongoing pressure on domestic lending margins. Despite this challenging environment, we achieved strong business performance, recording year on year increases in both net revenue and net income, while exceeding our full-year forecasts. We believe the positive results reflect the Bank’s disciplined balance sheet management focused on risk and return, as well as the diversification of our sources of income.

The full repayment of public funds has been a corporate priority at Aozora, and the Bank has strived to ensure sound management as well as increase its corporate value. As a result of the Bank’s strong business performance and the increase in its share price, we were able to satisfy the conditions for the early and full repayment of public funds, and, following approval of the regulatory authorities, the Bank fully repaid the remaining amount of public funds.

After the repayment of public funds, Aozora aims to become a “Primary Secondary Bank: An Even More Reliable Partner” for its customers through the provision of differentiated and specialized financial services, while making every effort to fulfill its public role as a bank in Japan. The Bank also reaffirms its commitment to a strong risk management framework and the maintenance of sound management, in order to preserve its financial strength and institutional discipline under any future conditions.

Going forward, Aozora intends to put more emphasis on quality communications with its stakeholders, including its shareholders. We also expect to provide full support for our customers as well as contribute to the economic and social development of Japan.

On behalf of the management team of Aozora Bank, I would like to thank all of our stakeholders for their continued support.

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