Management Greeting

Thank you for your continuing support of Aozora Bank.

In the first half of FY2015 Aozora entered a new stage of development following the full repayment of public funds and we are pleased to get off to a good start in the face of increasing uncertainty in global markets. We were able to achieve net revenue of 46.5 billion yen, a year on year increase reflecting our efforts to leverage the ‘6 Focuses’ of our updated Business Model, as well as our ongoing attention to disciplined balance sheet management. In addition, we reported net income of 24.3 billion yen which represented progress of 57%, and places us well on track to achieve our full-year earnings forecast of 43.0 billion yen.

Effective from FY2015, the Bank adopted a dividend policy of 50% of consolidated net income towards our aim of enhancing returns to shareholders. We announced a second quarter dividend of 4.0 yen per common share, the same amount as the first quarter dividend, while our full-year forecast is 18.40 yen. We will continue to make quarterly dividend payments.

Aozora aims to become a “Primary Secondary Bank: An Even More Reliable Partner” for its customers, and we will strive to further enhance Aozora’s corporate value through the provision of differentiated services while taking full advantage of the Bank’s expertise. We also reaffirm our commitment to the forward-looking management of risk.

Going forward, Aozora intends to put more emphasis on quality communications with our stakeholders, including our 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.

January 2016
Shinsuke Baba
Representative Director, President
and Chief Executive Officer