Management Greeting

Thank you for your continuing support of Aozora Bank.

Global markets continued the process of adjusting to the movement away from central bank accommodative monetary policies while facing new uncertainties arising from the potential for increasing trade disputes. In Japan, the banking sector continued to face challenging business conditions given the low interest rate environment. Fully taking into account these conditions, we continued our focus on implementing our business strategy in line with our new Mid-term Plan announced in May. In July, we launched our new internet banking operations through our consolidated subsidiary GMO Aozora Net Bank. For the interim period, Aozora is pleased to report business profit of 21.2 billion yen and net earnings of 21.3 billion yen, representing progress of 53% and 50%, respectively, of our full-year forecast. Today we also announced a second quarter dividend of 40 yen per common share.

As always, Aozora remains committed to providing differentiated and high-quality financial products and services to our customers while enhancing our corporate value. We will do this by leveraging our core competencies and maintaining sound risk taking based on disciplined risk management. We also intend to continue developing initiatives to cultivate our new business areas while reaffirming our commitment to quality communications with our stakeholders. In addition, we 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 express my gratitude to all of our stakeholders for their continued support.

December 2018
Shinsuke Baba
Representative Director, President
and Chief Executive Officer

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