Aozora Bank : Summary of the Financial Statements for the First Six Months of FY2022 (Consolidated)

Summary of the Financial Statements

for the First Six Months of FY2022 [JGAAP] (Consolidated)

					November 11, 2022
Company name	Aozora Bank, Ltd.		Listed exchange	Tokyo Stock Exchange
TSE code	8304		URL	https://www.aozorabank.co.jp/
Representative	Kei Tanikawa, President and CEO
Contact person	Yukie Tajima, Joint General Manager of Financial Control Division
Scheduled filing date of securities report	Nov. 25, 2022	Dividend payable date Dec. 15, 2022
Reference material	Affirmative		Trading accounts	Affirmative
Investor meeting	Affirmative		TEL	[phone]

1. Business highlights for the first six months of FY2022

(1) Consolidated business results

(Unit: JPY millions, rounded down)

(Note: Percentages show year-on-year rates of change)

		Ordinary income	Ordinary profit	Profit attributable
		to owners of parent
Six months ended		Millions of yen	%	Millions of yen	%	Millions of yen	%
September 30, 2022		95,447	42.6	20,413	(23.0)	15,389	(20.8)
September 30, 2021		66,955	(12.5)	26,495	39.9	19,440	28.5
(Note) Comprehensive income	JPY (39,028) million －% (Six months ended September 30, 2022)
		JPY 34,381 million (39.9)% (Six months ended September 30, 2021)

	Net income per	Net income per
	common share (basic)	common share (diluted)
Six months ended	Yen	Yen
September 30, 2022	131.78	131.57
September 30, 2021	166.53	166.23

1. Consolidated financial condition

	Total assets	Total net assets	Net assets to total	Net assets
		assets ratio	per common share
	Millions of yen	Millions of yen		%	Yen
September 30, 2022	7,157,529	438,672		6.2	3,813.95
March 31, 2022	6,728,653	487,265		7.3	4,222.79
(Ref.) Total net assets (less Share acquisition rights and Non-controlling interests)	JPY 445,398 million (September 30, 2022)

JPY 493,105 million (March 31, 2022)

(Note) Net assets to total assets ratio = (Total net assets - Share acquisition rights - Non-controlling interests) / Total assets

The above Net assets to total assets ratio is different from the capital adequacy ratio prescribed in the notification of the Financial Services Agency.

2. Dividend

		Annual dividend
	1Q end	2Q end	3Q end	Year-end	Annual
FY2021 (common share)	Yen	Yen	Yen	Yen	Yen
32.00	32.00	40.00	45.00	149.00
FY2022 (common share)	38.00	38.00
FY2022 (common share)			-	-	154.00
(Forecast)
(Note) Revision of dividends forecast to the latest announcement	None

The dividend payment forecast for FY2022 was calculated by dividing the total dividend amount, which is set at 50% of Profit attributable to owners of parent for forecast FY2022, by the total number of common share issued, excluding treasury shares, as of September 30, 2022. Aozora will continue to pay dividends on a quarterly basis, although dividend payment forecast was announced only on an annual basis.

3. Consolidated earnings forecast for the year ending March 31, 2023 (FY2022)

(Note: Percentages show year-on-year rates of change)

			Ordinary profit		Profit attributable				Net income
				to owners of parent		per common share
			Millions of yen		%	Millions of yen		%		Yen
	FY2022 (Full Year)	49,500		6.9		36,000		2.8		308.26
	(Note) Revision of consolidated earnings forecast to the latest announcement	None
*Notes
(1) Changes in material subsidiaries during the first six months
		(changes in specified subsidiaries which affect the scope of consolidation)	None
	(2) Changes in accounting policy, accounting estimates, or retrospective restatements
		(a) Changes with revisions of accounting standards						Affirmative
		(b) Changes other than (a) above								None
		(c) Changes in accounting estimates								None
		(d) Retrospective restatements								None
	(3) The number of common shares issued
						September 30, 2022				March 31, 2022
		(a) The number of common shares			118,289,418			118,289,418
		issued ( including treasury shares )
		(b) The number of treasury shares			1,508,198			1,517,048
						Six months ended				Six months ended
						September 30, 2022				September 30, 2021
		(c) The average number of common			116,776,816			116,737,806
		shares outstanding ( 6 months )

(Summary of non-consolidated financial statements)

1. Business highlights for the first six months of FY2022

(1) Business results

(Note: Percentages show year-on-year rates of change)

		Ordinary income		Ordinary profit		Profit
Six months ended		Millions of yen	%		Millions of yen		%	Millions of yen	%
September 30, 2022		86,946	45.8		19,062		(19.5)	3,424	(79.8)
September 30, 2021		59,641	(21.6)		23,668		(0.2)	16,986	(6.1)
		Net income per
		common share (basic)
Six months ended		Yen
September 30, 2022		29.32
September 30, 2021		145.50

(2) Financial condition

	Total assets	Total net assets	Net assets to total	Net assets
	per common
			assets ratio	share
September 30, 2022	Millions of yen	Millions of yen	%	Yen
6,785,477	412,532	6.1	3,528.21
March 31, 2022	6,446,916	480,047	7.4	4,107.62

(Ref.) Total net assets (less Share acquisition rights): JPY 412,028 million (September 30, 2022) JPY 479,657 million (March 31, 2022) (Note) Net assets to total assets ratio = (Total net assets - Share acquisition rights) / Total assets

The above Net assets to total assets ratio is different from the capital adequacy ratio prescribed in the notification of the Financial Services Agency.

2.Non-consolidated earnings forecast for the year ending March 31, 2023 (FY2022)

(Note: Percentages show year-on-year rates of change)

	Ordinary profit		Profit		Net income
			per common share
	Millions of yen		%	Millions of yen	%	Yen
FY2022(Full Year)	41,000		(0.0)	29,000	(2.9)	248.32

※Summary of the Financial Statements for the First Six Months is out of scope of interim audit (by CPAs or audit firms) .

※Notes and remarks for the proper use of earnings projection

The above earnings forecast involves certain risks and uncertainties since the calculations are based on management's assumptions and beliefs in light of information currently available. This should not be interpreted as a promise or guarantee that the forecast will be achieved. Please be aware that actual results may be materially different from the forecast presented herein due to various factors.

Aozora Bank, Ltd.

[ Attachment ]

1. Interim consolidated financial statements and main notes・・・・・・・・・・・・・・・・・・・・・・・・2
2. 1. Interim consolidated balance sheet・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2
   2. Interim consolidated statement of income and Interim consolidated statement of
      comprehensive income・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3 Interim consolidated statement of income・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3 Interim consolidated statement of comprehensive income・・・・・・・・・・・・・・・・・・・・・・・・ 3
   3. Interim consolidated statement of changes in net assets・・・・・・・・・・・・・・・・・・・・・・・・・・・4
   4. Notes to interim consolidated financial statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・6 (Information on going concern assumption)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・6 (Change in accounting Policy) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・6 (Additional information)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・6
3. Interimnon-consolidated financial statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・7
4. 1. Interimnon-consolidated balance sheet・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・7
   2. Interimnon-consolidated statement of income・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・9
   3. Interimnon-consolidated statement of changes in net assets・・・・・・・・・・・・・・・・・・・・・・10

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Aozora Bank, Ltd.

1. Interim consolidated financial statements and main notes

(1) Interim consolidated balance sheet

			(Millions of yen)
		As of March 31, 2022 As of September 30, 2022
Assets
Cash and due from banks	1,141,946	971,073
Call loans and bills bought	122,243	74,481
Monetary claims bought	101,687	88,984
Trading account assets	133,021	176,354
Money held in trust	20,930	14,905
Securities	1,478,178	1,420,353
Loans and bills discounted	3,317,125	3,848,781
Foreign exchanges	63,878	97,249
Other assets	306,215	391,733
Tangible fixed assets	21,785	21,086
Intangible fixed assets	20,140	19,685
Retirement benefit asset	4,964	5,224
Deferred tax assets	31,729	56,485
Customers' liabilities for acceptances and guarantees	14,038	15,801
Allowance for loan losses	(48,677)	(44,278)
Allowance for investment loss	(553)	(393)
Total assets	6,728,653	7,157,529
Liabilities
Deposits	4,838,056	5,269,160
Negotiable certificates of deposit	33,500	33,000
Call money and bills sold	16,121	17,240
Securities sold under repurchase agreements	69,876	69,617
Cash collateral received for securities lent	356,956	263,431
Trading account liabilities	129,227	171,691
Borrowed money	432,342	500,974
Bonds payable	168,959	125,971
Other liabilities	166,022	237,437
Provision for bonuses	4,332	2,511
Provision for bonuses for directors (and other officers)	86	37
Retirement benefit liability	10,974	11,057
Provision for credit losses on off-balance-sheet instruments	407	437
Provision for contingent loss	453	454
Reserves under special laws	8	8
Deferred tax liabilities	23	25
Acceptances and guarantees	14,038	15,801
Total liabilities	6,241,387	6,718,857
Net assets
Share capital	100,000	100,000
Capital surplus	87,476	87,481
Retained earnings	301,700	307,398
Treasury shares	(3,117)	(3,099)
Total shareholders' equity	486,060	491,779
Valuation difference on available-for-sale securities	3,985	(65,297)
Deferred gains or losses on hedges	(157)	7,741
Foreign currency translation adjustment	3,450	11,389
Remeasurements of defined benefit plans	(233)	(214)
Total accumulated other comprehensive income	7,045	(46,381)
Share acquisition rights	390	503
Non-controlling interests	(6,229)	(7,229)
Total net assets	487,265	438,672
Total liabilities and net assets		6,728,653	7,157,529

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