Management Greeting

Thank you for your interest in Aozora Bank.

During the second half of Fiscal Year 2018, financial markets experienced increased levels of volatility as the global economy faced growing uncertainty arising from several factors, including increasing trade disputes. In Japan, the banking sector continued to face challenging business conditions given the prolonged low interest rate environment. With these conditions in mind, our management team maintained its focus on disciplined balance sheet management and the diversification of income sources. However, due to lower than expected retail and financial institution transaction revenues, as well as the impact on our trading business from changes in the global financial markets in the second half of the year, net revenue was 83.8 billion yen and net earnings 36.1 billion yen for Fiscal Year 2018, both short of the forecasted levels announced at the beginning of the year.
Due to the lower than anticipated results, we announced a full-year dividend of 154 yen per common share for Fiscal Year 2018, 30 yen less than our original forecast of 184 yen.

While we expect challenging business conditions to continue for some time, Aozora is committed to the recovery of our business and strengthening our future results through the execution of our highly efficient business model and flexible portfolio management, as well as delivering products and services that meet our customers’ needs.

Our management team remains committed to enhancing the performance of each business area through a selection and concentration strategy while striving to further increase our corporate value. We will also remain focused on new business initiatives for future growth from a mid- to long-term perspective. I would like to express my gratitude to all of our stakeholders for their understanding and continued support.

June 2019
Shinsuke Baba
Representative Director, President
and Chief Executive Officer

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