FY2021
1st Quarter
Financial
Results
Overview
August 2, 2021
Copyright © 2021 Aozora Bank, Ltd.All Rights Reserved.
1st Quarter Financial Highlights
Strong progress towards the full-year forecast
Net revenue
Business profit
Profit attributable to owners of parent
26.7 billion yen
(5.4 billion yen increase year-on-year, progress rate: 28%)
13.4 billion yen
(4.9 billion yen increase year-on-year, progress rate: 32%)
11.5 billion yen
(4.1 billion yen increase year-on-year, progress rate: 39%)
Key points
- Net interest income was approximately the same as 4Q of FY2020, while it declined by 0.5 billion yen year-on- year
- Non-interestincome increased by 5.9 billion yen year-on-year, mainly due to strong customer-related income, including gains from distressed loan-related and buyout-related limited partnerships, fee income from GMO Aozora Net Bank, and earnings from the sale of investment products to retail customers
- Credit-relatedexpenses were a net reversal of 2.0 billion yen, mainly due to reversals of the Bank's general loan loss reserves as a result of improvements in the credit ratings of previously Need Attention overseas exposures and the repayment of overseas real-estatenon-recourse loans associated with a recovery in the U.S. real estate market
Dividend for 1Q: 32 yen per common share (25% of the full-year dividend forecast of 128 yen)
(Note) Unless otherwise stated, all amounts stated in 1 billion yen have been rounded down to the nearest 0.1 billion yen.
Copyright © 2021 Aozora Bank, Ltd.All Rights Reserved. | 1 |
PL summary
- Net revenue, business profit and profit attributable to owners of parent all increased significantly compared to the previous year
FY2020 | FY2021 | Change B - A | ||||
Apr.-Jun. | Apr.-Jun. | Amount | % | |||
(billion yen) | A | B | ||||
Net revenue | 21.3 | 26.7 | +5.4 | +25.5% | ||
Net interest income | 12.4 | 11.8 | -0.5 | |||
Non-interest income | 8.9 | 14.9 | +5.9 | |||
General & administrative expenses | -12.8 | -13.8 | -1.0 | |||
Gains/losses on equity method investments | - | 0.5 | +0.5 | |||
Business profit | 8.5 | 13.4 | +4.9 | +58.2% | ||
Credit-related expenses | 0.1 | 2.0 | +1.8 | |||
Gains/losses on stock transactions | 1.0 | 0.0 | -1.0 | |||
Ordinary profit | 8.7 | 15.6 | +6.8 | +78.5% | ||
Extraordinary profit/loss | - | - | - | |||
Profit before income taxes | 8.7 | 15.6 | +6.8 | +78.5% | ||
Taxes | -1.9 | -4.4 | -2.5 | |||
Gains/losses attributable to non-controlling interests | 0.6 | 0.3 | -0.2 | |||
Profit attributable to owners of parent | 7.4 | 11.5 | +4.1 | +55.1% | ||
FY2021
Full-yearProgress
Forecast
97.0 28%
42.5 32%
42.5 37%
30.0 39%
Copyright © 2021 Aozora Bank, Ltd.All Rights Reserved. | 2 |
Net interest income
- Net interest income decreased by 0.5 billion yen year-on-year mainly due to lower interest and dividends on securities arising from lower foreign currency ETF balances, while it was maintained at approximately the same level as 4Q of FY2020
- Lending margins (yield on loans - yield on funding) increased by 3 bps compared to 4Q of FY2020
FY2020 | FY2021 | Change | |||
Apr. - Jun. Apr. - Jun. | |||||
B - A | |||||
(billion yen) | A | B | |||
Net interest income | 12.4 | 11.8 | -0.5 | ||
Interest income | 18.2 | 15.6 | -2.6 | ||
Interest on loans and discounts | 12.6 | 10.8 | -1.8 | ||
Interest and dividends on securities | 5.4 | 4.5 | -0.9 | ||
Other interest income | 0.1 | 0.2 | +0.0 | ||
Interest expenses | -5.8 | -3.7 | +2.1 | ||
Interest on deposits and NCDs | -1.5 | -1.4 | +0.1 | ||
Interest on debentures and bonds | -0.5 | -0.6 | -0.0 | ||
Interest on borrowings and rediscount | -0.6 | -0.3 | +0.2 | ||
Other interest expenses | -0.6 | -0.2 | +0.4 | ||
Interest on swaps | -2.4 | -1.0 | +1.3 | ||
(Note) Decreases in expenses are shown as positive.
FY2020 | FY2021 | Change | ||
Apr. - Jun. Apr. - Jun. | ||||
B - A | ||||
A | B | |||
Yield on total investments (A) | 1.55% | 1.26% | -0.29% | |
Yield on loans (B) | 1.70% | 1.44% | -0.26% | |
Yield on securities | 1.97% | 1.32% | -0.65% | |
Yield on funding (C) | 0.49% | 0.28% | -0.21% | |
Net interest margin (A)-(C) | 1.06% | 0.98% | -0.08% | |
Lending margin (B)-(C) | 1.21% | 1.16% | -0.05% |
Lending margin
1.24% | ||||
1.21% | 1.20% | |||
1.16% | ||||
1.13% | ||||
1% | ||||
FY2020 | FY2021 | |||
1Q | 2Q | 3Q | 4Q | 1Q |
Copyright © 2021 Aozora Bank, Ltd.All Rights Reserved. | 3 |
Non-interest income
-
Non-interestincome was 14.9 billion yen, an increase of 5.9 billion yen year-on-year
This result was approximately the same as 4Q of FY2020
FY2020 | FY2021 | Change | |||
Apr.-Jun.Apr.-Jun. | |||||
B - A | |||||
(billion yen) | A | B | |||
Non-interest income | 8.9 | 14.9 | +5.9 | ||
Net fees and commissions | 1.9 | 2.4 | +0.4 | ||
Net trading revenues | -0.7 | 6.4 | +7.2 | ||
Gains/losses on bond transactions | 7.9 | 1.5 | -6.4 | ||
Net other ordinary income excl. | -0.2 | 4.5 | +4.7 | ||
gains/losses on bond transactions | |||||
Incl. Gains from limited partnerships | 0.8 | 3.5 | +2.6 | ||
(Ref.) Ratio of gains/losses on | 37% | 6% | |||
bond transactions to net revenue | |||||
Non-interest income
(billion yen)
15.5 14.9
8.9 | 10.6 | 11.3 |
0
FY2020FY2021
1Q | 2Q | 3Q | 4Q | 1Q |
Copyright © 2021 Aozora Bank, Ltd.All Rights Reserved. | 4 |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Aozora Bank Ltd. published this content on 02 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2021 12:21:08 UTC.