Aozora Bank : Summary of the Financial Statements for the First Three Months of FY2021 (Consolidated)

Summary of the Financial Statements

for the First Three Months of FY2021 [JGAAP] (Consolidated)

					August 2, 2021
Company name	Aozora Bank, Ltd.		Listed exchange Tokyo Stock Exchange
TSE code	8304		URL	https://w w w .aozorabank.co.jp/
Representative	Kei Tanikawa, President and CEO
Contact person	Naoko Okamoto, Joint General Manager of Financial Control Division
Scheduled filing date of securities report	Aug. 12, 2021	Dividend payable date	Sep. 15, 2021
Reference material	Affirmative		Trading accounts	Affirmative
Investor meeting	Affirmative		TEL	[phone]

1. Business highlights for the first three months of FY2021

(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
Three months ended		Million Yen		%	Million Yen	%		Million Yen	%
Jun. 30, 2021		36,852		(15.6)	15,663	78.5		11,557	55.1
Jun. 30, 2020		43,679		(7.8)	8,773	(47.9)		7,450	(37.3)
(Note) Comprehensive income	JPY 26,448 million	(38.8)%	(Three months ended June 30, 2021)
		JPY 43,223 million	95.9 %	(Three months ended June 30, 2020)
		Net income per			Net income per
	common share (basic)		common share (diluted)
Three months ended				Yen			Yen
Jun. 30, 2021		99.02			98.87
Jun. 30, 2020		63.85			63.78

(2) Consolidated financial condition

		Total assets	Total net assets	Net assets to total	Net assets
		assets ratio	per common share
	Jun. 30, 2021	Million Yen	Million Yen		%	Yen
	6,064,056	512,130		8.5	4,423.82
	Mar. 31, 2021	5,916,866	490,006		8.4	4,233.53
	(Ref.) Total net assets	(less Share acquisition	rights and Non-controlling interests)	JPY 516,272 million (June 30, 2021)
					JPY 494,065 million (March 31, 2021)

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

(Note) 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
	Yen	Yen		Yen	Yen	Yen
FY2020(common share)	30.00	30.00	30.00	34.00	124.00
FY2021(common share)	32.00
FY2021(common share)		-		-	-	128.00
(Forecast)
(Note) Revision of dividends forecast to the latest announcement	None

(Note) The dividend payment forecast for FY2021 was calculated by dividing the total dividend amount, which is set at 50% of Profit attributable to owners of parent for forecast FY2021, by the total number of common share issued, excluding treasury shares, as of June 30, 2021. 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, 2022 (FY2021)

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

	Ordinary profit		Profit attributable		Net income
		to owners of parent		per common share
	Million Yen		%		Million Yen		%	Yen
FY2021 (Full Year)	42,500		9.0		30,000		3.5	257.06
(Note) Revision of consolidated	earnings forecast to the latest	announcement	None

• Notes
• 1. Changes in material subsidiaries during the first three months

	(changes in specified subsidiaries which affect the scope of consolidation)	None
(2)	Accounting treatments particularly used for the quarterly financial statements	None
(3)	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
(4) The number of common shares issued
			Jun. 30, 2021	Mar. 31, 2021
	(a) The number of common shares issued		118,289,418	118,289,418
	( including treasury shares )
	(b) The number of treasury shares		1,586,557	1,586,557
			Three months ended	Three months ended
			Jun. 30, 2021	Jun. 30, 2020
	(c) The average number of common shares		116,702,861	116,684,799
	outstanding ( 3 months )

• Quarterly summary is out of scope of quarterly review (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. Quarterly consolidated financial statements and main notes	2
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(1) Quarterly consolidated balance sheet	2
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(2) Quarterly consolidated statement of income and quarterly consolidated statement of
comprehensive income	3
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Quarterly consolidated statement of income
For the three months ended Jun. 30	3
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Quarterly consolidated statement of comprehensive income
For the three months ended Jun. 30	4
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(3) Notes to quarterly consolidated financial statements	5
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(Information on going concern assumption)	5
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(Changes in shareholders' equity) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	5
(Change in accounting Policy) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	5
(Additional information)	6
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Aozora Bank, Ltd.

1. Quarterly consolidated financial statements and main notes

(1) Quarterly consolidated balance sheet

						(Millions of yen)
				As of March 31, 2021		As of June 30, 2021
	Assets
	Cash and due from banks			950,109		1,010,216
	Call loans and bills bought	41,000	114,316
	Monetary claims bought	74,506	78,887
	Trading account assets			154,616		137,590
	Money held in trust	33,521	27,765
	Securities	1,393,357	1,404,179
	Loans and bills discounted			2,948,808		2,966,027
	Foreign exchanges	58,154	63,646
	Other assets	232,409	233,865
	Tangible fixed assets			23,311		22,933
	Intangible fixed assets	20,133	20,323
	Retirement benefit asset	5,740	5,875
	Deferred tax assets			16,984		12,314
	Customers' liabilities for acceptances and guarantees	15,773	13,616
	Allowance for loan losses	(50,886)	(47,070)
	Allowance for investment loss			(674)		(431)
	Total assets	5,916,866	6,064,056
	Liabilities
	Deposits	3,978,506	4,218,966
	Negotiable certificates of deposit			34,000		35,000
	Call money and bills sold	15,536	16,301
	Securities sold under repurchase agreements	56,750	67,877
	Cash collateral received for securities lent			431,673		379,751
	Trading account liabilities	140,451	119,190
	Borrowed money	349,767	353,067
	Bonds payable			198,365		185,243
	Other liabilities	190,033	149,961
	Provision for bonuses	4,006	1,172
	Provision for bonuses for directors (and other officers)			80		17
	Retirement benefit liability	10,844	10,689
	Provision for retirement benefits for directors (and other officers)	4		－
	Provision for credit losses on off-balance-sheet instruments			612		614
	Provision for contingent loss	421	424
	Reserves under special laws	8	8
	Deferred tax liabilities			24		23
	Acceptances and guarantees		15,773	13,616
	Total liabilities	5,426,859	5,551,926
	Net assets
	Share capital			100,000		100,000
	Capital surplus	87,412	87,412
	Retained earnings	283,464	290,395
	Treasury shares			(3,260)		(3,260)
	Total shareholders' equity		467,615	474,547
	Valuation difference on available-for-sale securities	27,196	41,257
	Deferred gains or losses on hedges	(750)	(817)
	Foreign currency translation adjustment			(971)		413
	Remeasurements of defined benefit plans		974	871
	Total accumulated other comprehensive income		26,449	41,725
	Share acquisition rights	482	482
	Non-controlling interests			(4,541)		(4,624)
	Total net assets		490,006	512,130
	Total liabilities and net assets		5,916,866	6,064,056

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Aozora Bank, Ltd.

1. Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income (Quarterly consolidated statement of income)
   (For the three months ended Jun. 30)

						(Millions of yen)
				Three months ended		Three months ended
				June 30, 2020		June 30, 2021
	Ordinary income	43,679	36,852
	Interest income			18,273		15,613
	Interest on loans and discounts	12,673	10,818
	Interest and dividends on securities	5,428	4,528
	Trust fees			116		94
	Fees and commissions	2,405	3,152
	Gain on trading account transactions	8,923	6,450
	Other ordinary income			11,507		8,129
	Other income	2,453	3,412
	Ordinary expenses	34,906	21,189
	Interest expenses			5,871		3,731
	Interest on deposits	1,532	1,406
	Fees and commissions payments	562	808
	Loss on trading account transactions			9,690		－
	Other ordinary expenses	3,755	2,103
	General and administrative expenses	13,090	13,727
	Other expenses			1,935		818
	Ordinary profit		8,773	15,663
	Profit before income taxes		8,773	15,663
	Income taxes - current	1,549	2,997
	Income taxes - deferred			389		1,489
	Total income taxes		1,939	4,487
	Profit		6,834	11,176
	Loss attributable to non-controlling interests		(616)	(380)
	Profit attributable to owners of parent		7,450	11,557

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