Aozora Bank : Interim Report 2022（2,396KB）

I n t e r i m R e p o r t

Six-Month Period Ended September 30, 2022

2022

Financial and Corporate Data

Corporate Data

Corporate History …………………………………………………	2
Business Activities ………………………………………………	3
Organization Chart ………………………………………………	4
Directors, Audit & Supervisory Board Members and
Executive Officers…………………………………………………	5
Staff Profile ………………………………………………………	5
Office Directory………………………………………………………	6
Business Network ……………………………………………………	7
Subsidiaries and Affliated Companies …………………………	8
Management Support and Efforts for Regional
Economic Revitalization ………………………………………	9

Financial Data

Consolidated Information

CONSOLIDATED BUSINESS RESULTS………………………… 10

Consolidated Financial Highlights……………………………… 10

CONSOLIDATED FINANCIAL REVIEW ………………………… 11

Consolidated and Equity-Method Companies………………… 11

Analysis of Business Results …………………………………… 11

Analysis of Financial Condition ………………………………… 13

CONSOLIDATED SEMIANNUAL FINANCIAL STATEMENTS…… 15

Consolidated Semiannual Balance Sheet (Unaudited) ……… 15

Consolidated Semiannual Statement of Income

(Unaudited) ……………………………………………………… 16

Consolidated Semiannual Statement of Comprehensive Income (Unaudited) ……………………………………… 17

Consolidated Semiannual Statement of Changes in Equity (Unaudited) ………………………………………………………… 18

Consolidated Semiannual Statement of Cash Flows (Unaudited)…………………………………………………… 19

Notes to Consolidated Semiannual Financial Statements (Unaudited) ………………………………………………………… 20

INCOME ANALYSIS (Consolidated) ……………………………… 54

Interest-Earning Assets and Interest-Bearing Liabilities …… 54

Fees and Commissions………………………………………… 54

Gains on trading account transactions ………………………… 54

Other Ordinary Income ………………………………………… 55

Non-Consolidated Information

NON-CONSOLIDATED BUSINESS RESULTS ………………… 56

Non-Consolidated Financial Highlights………………………… 56

NON-CONSOLIDATED SEMIANNUAL FINANCIAL

STATEMENTS …………………………………………………… 57

Non-Consolidated Semiannual Balance Sheet

(Unaudited)…………………………………………………… 57

Non-Consolidated Semiannual Statement of Income (Unaudited) ………………………………………………………… 58

Non-Consolidated Semiannual Statement of Changes in Equity (Unaudited) ………………………………………………… 59

INCOME ANALYSIS (Non-Consolidated) ………………………… 60

Net Revenue, Business Profit …………………………………… 60

Ratios ………………………………………………………………… 61

Yield on Interest-Earning Assets, Interest Rate on Interest-Bearing Liabilities, Net Yield/Interest Rate………… 61

Average Balance of Interest-Earning Assets and Interest-Bearing Liabilities ……………………………………… 62

Analysis of Interest Income and Interest Expenses ………… 63

Fees and Commissions………………………………………… 64

Gains on trading account transactions ………………………… 64

Other Ordinary Income …………………………………………… 65

General and Administrative Expenses ………………………… 65

DEPOSIT OPERATIONS (Non-Consolidated)…………………… 66

Balance of Deposits ………………………………………………… 66

Balance of Time Deposits by Residual Period………………… 66

Balance of Deposits by Depositor………………………………… 67

Deposits per Office ………………………………………………… 67

Deposits per Employee ………………………………………… 67

LOAN OPERATIONS (Non-Consolidated) ……………………… 68

Balance of Loans ………………………………………………… 68

Balance of Loans by Residual Period ………………………… 68

Ratio of Loans and Bills Discounted to Deposits …………… 68

Loans per Office ………………………………………………… 68

Loans per Employee …………………………………………… 68

Loans to Small and Medium-Sized Enterprises (SMEs) ……	69
Consumer Loans Outstanding …………………………………	69
Breakdown of Loans and Bills Discounted by Industry………	69
Risk-Monitored Loans by Industry ………………………………	70

Balance of Loans and Bills Discounted,

Classified by Purpose …………………………………………… 70

Breakdown of Balance of Acceptances and Guarantees ……	70
Breakdown of Loans and Bills Discounted by Collateral ……	70
Breakdown of Collateral for Customers' Liabilities
for Acceptances and Guarantees ………………………………	71

Write-Off of Loans ………………………………………………… 71

Allowance for Loan Losses ………………………………………… 71

Country Risk Reserve ……………………………………………… 71

Non-preforming loans ('NPLs') based on the Banking
Act and the Financial Reconstruction Act ……………………	72
Reserve Ratios for Each Category of Borrower,
Based on Asset-Assessments …………………………………	72
Asset-Assessment, Disclosed Claims, Write-Offs and
Reserves ………………………………………………………… 73
SECURITIES (Non-Consolidated) …………………………………	74
Balance of Securities Held…………………………………………	74
Balance of Securities by Residual Period ……………………	75
Ratio of Securities to Deposits ……………………………………	75
SECURITIES BUSINESS (Non-Consolidated) …………………	76
Underwriting of Public Bonds ……………………………………	76
Over-the-Counter Sales of Public Bonds and
Securities Investment Trusts …………………………………	76
INTERNATIONAL OPERATIONS (Non-Consolidated) …………	77
Foreign Exchange Transactions…………………………………	77
Balance of Assets in International Operations …………………	77
TRUST BUSINESS OPERATIONS (Non-Consolidated)	78
Statement of Trust Assets and Liabilities ………………………	78
Balance of Money Trusts under Management ………………	78
Balance of Securities Related to Money Trusts ………………	79
Balance of Principal of Money Trusts by Trust Period ………	79
Balance of Loans and Securities Held in Money Trust by Type…	79
CAPITALIZATION (Non-Consolidated) ……………………………	80
History of Capitalization……………………………………………	80

Major Shareholders ………………………………………………… 80

Ownership and Distribution of Shares ………………………… 80

Disclosure Based on Basel III Capital

Accord Pillar III-Market Discipline ………………… 81

Share Procedure Information……………………………… 108

Financial and Corporate Data Financial and Corporate Data

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Financial and Corporate Data

Corporate Data

Corporate Data

Corporate History

April	1957	Established as the Nippon Fudosan Bank, Limited (capital: ¥1 billion) in accordance with the
		Long-Term Credit Bank Law
July	1964	Started foreign exchange business as an authorized foreign exchange bank
September		Listed stock on the Tokyo Stock Exchange
February	1970	Listed stock on the Osaka Securities Exchange
October	1977	Changed name to the Nippon Credit Bank, Ltd.
February	1994	Established the Nippon Credit Trust Bank, Ltd. (currently GMO Aozora Net Bank, Ltd.)
December	1998	Started special public management and terminated listing of stock on the Tokyo Stock Exchange
		and the Osaka Securities Exchange
September	1999	NCB Servicer Co., Ltd. (currently Aozora Loan Services Co., Ltd.), commenced servicer
		operations
September	2000	Ended special public management
January	2001	Changed name to Aozora Bank, Ltd.
June	2005	Established a subsidiary, Aozora Asia Pacific Finance Limited, in Hong Kong
July		Established New York Representative Office
April	2006	Converted from "Long-Term Credit Bank" to an "Ordinary Bank"
		Established Aozora Securities Co., Ltd.
November		Listed on the First Section of the Tokyo Stock Exchange
May	2007	Established Shanghai Representative Office
April	2009	Established Internet Branch (currently BANK Branch) and commenced Internet banking services
August	2012	Announced the Comprehensive Recapitalization Plan
March	2013	Launched Aozora Cash Card Plus (Visa debit)
		Established Aozora Regional Consulting Co., Ltd.
February	2014	Established Aozora Investment Management Co., Ltd.
May		Established Singapore Representative Office
January	2015	Established Aozora Real Estate Investment Advisors Co., Ltd.
June		Full repayment of public funds
December		Established a subsidiary, Aozora Europe Limited, in London
May	2016	Completed conversion to new Kanjo-kei core banking system
May	2017	Moved headquarters
		Established ABN Advisors Co., Ltd.
April	2018	Established Aozora Corporate Investment Co., Ltd.
July		GMO Aozora Net Bank, Ltd. commenced Internet banking services
October		Completed transfer of trust operations from GMO Aozora Net Bank, Ltd. and started concurrent
		trust operations
June	2020	Purchased an ownership stake in Orient Commercial Joint Stock Bank, a commercial bank
		based in Vietnam (making it an equity method affiliate of Aozora)
September		Aozora North America, Inc., the Bank's New York subsidiary, commenced finance operations
April	2022	Listed on the Prime Market segment of the Tokyo Stock Exchange following the restructuring of
		its market segments

Business Activities (As of January 1, 2023)

• Deposits Deposits
  Checking accounts, savings accounts, time deposits, deposits-at-notice,non-residents' deposits in yen and deposits in foreign currencies
  Negotiable certificates of deposit
• Lending

Loans

Loans on deeds, loans on notes and overdraft

Discount on promissory notes

Bankers' acceptances and discounts on commercial bills

• Securities investment business

Public bonds, local bonds, corporate bonds, equity and other securities for cash reserves for payment of the deposit and fund management

• Domestic exchange

Such services as money orders between branches of the Bank and those of other banks, collection of payments, etc.

• Foreign exchange

Remittance to foreign countries and other foreign currency-related businesses

• Consignment of bonds

Consignment business for soliciting or managing public bonds and issue agent or payment agent

• Trust operations

Management of various trust assets including cash, securities, monetary claims and real estate

• Other services
• 1. Guarantee of liabilities (acceptances and guarantees)
  2. Lending of securities
  3. Underwriting of public bonds
  4. Over-the-countersales of securities investment trusts
  5. Trust business for secured corporate bonds
  6. Agency business
  7. • Revenue agency for Bank of Japan

1. ② Handling of funds for regional public entities, including those in Tokyo

2. Custody services
3. Interest rate, currency and other derivative transactions
4. Over-the-countersales of insurance products
5. Financial instruments intermediary business
6. Business matching services

Financial and Corporate Data

Corporate Data

2

3

Corporate Data

Financial and Corporate Data

Corporate Data

Organization Chart (As of January 1, 2023)

Shareholders

Audit & Supervisory
Board Members
Audit & Supervisory
Board	Board of
Office of Audit &
Directors
Supervisory Board
						Management
						Committee
Internal Audit Div.			Chief
Asset Assessment Div.				Executive
		Officer
						(CEO)
Compliance &
Governance Unit
Compliance Management Div.
(Financial Crime Management
Office)
(Aozora Hotline Desk)
Legal Div.
Operations Planning Div.
Human Resources Unit
Human Resources Div.

Corporate Strategy Unit

Business Strategy Div.

Corporate Administration

& Service Div.

Office of Corporate

Secretary

Sustainability

Management Div.

Finance Group

Financial Control Div.

Financial Management Div.

Corporate Communication Div.

Technology Group

IT Control Div. (Cyber Security Office)

Application Management Div.

Infrastructure Management Div.

Digital Transformation Div.

Operations Group

Operations Management Div.

Corporate Banking Service Div.

Crisis Management Div.

Customer Relations Group

				Retail Banking Management Div. (Financial Advisor Office)
	Retail	Customer Support Div. Retail Business Service Div.
	Banking Group	Retail Banking Div.	Aozora Securities Co., Ltd.
				Aozora Investment Management Co., Ltd.
				Financial Institutions Div. I Financial Institutions Div. II
	Allied	Public Institutions Div. Aozora Regional Consulting Co., Ltd.
	Banking Group	[Aozora Securities Co., Ltd.][Aozora
				Investment Management Co., Ltd.]
							Institutional
				Institutional Banking Group		Business
					Promotion Group
				[Corporate Banking]
				Corporate Business Div. II
	Corporate Banking	Strategic Finance Div.
	Corporate Business Div. VII	Institutional
	Group	Corporate Business Div. VIII
				[Merchant Banking]		Banking
				Merchant Banking Div. Venture Business Div.	Management Div.
				Aozora Corporate Investment Co., Ltd.
						(Facilitation of
	M&A Advisory	M&A Advisory Div.		Financing
	Group	ABN Advisors Co., Ltd.		Promotion
						Office)
				Structured Finance Group	(Portfolio
				Management
						Innovation
	Acquisition & Structured	Acquisition & Structured Finance Div.	Office)
	Finance Group	(Regional
						Business
	Environment	Infrastructure and Environment	Solution Office)
	Business Group	Finance Div.		(Sustainable
	Special Situations	Special Situations Div.		Business Office)
	Group	Aozora Loan Services Co., Ltd.	Syndication &
				Real Estate Finance Div.		Securitization Div.
	Real Estate Finance	Global Real Estate Structured Debt Div.	Equity
	Corporate Business Div. I
	Group	Corporate Business Div. V	Investment Div.
				Aozora Real Estate Investment Advisors
				Co., Ltd.		Trust Business
				International Business Group	Div.
				GMO Aozora Net
				International Business Management Div.	Bank, Ltd.
	International	International Business Div.
	Overseas Representative Office (New York)
	Finance Group
	Aozora Europe Limited
				Aozora North America, Inc.
	Asia Investment	Asia Pacific Div.
	Overseas Representative Offices (Shanghai, Singapore)
	Group
	Aozora Asia Pacific Finance Limited
				Market Group

Directors, Audit & Supervisory Board Members and Executive Officers (As of January 1, 2023)

Directors and Audit & Supervisory Board Members		Executive Officers
Representative Director	Kei Tanikawa*	Senior Managing Executive Officers	Akira Sakai
and President				Masayoshi Ohara
				Fumihiko Hirose
Representative Directors	Koji Yamakoshi*			Takashi Kato
and Deputy Presidents	Hideto Oomi*
		Managing Executive Officers	Masaki Onuma
Director and	Tomomi Akutagawa*			Tomoyuki Yamada
Senior Managing Executive Officer				Kazuhiro Yasuda
				Tetsuji Okuda
Directors	Hiroyuki Mizuta			Jun Shinozaki
	Ippei Murakami			Akemi Hashimoto
	Tomonori Ito
	Sakie Tachibana Fukushima	Executive Officers	Toru Takahashi
				Hiroki Nakazato
Standing Audit & Supervisory Board	Satoshi Hashiguchi			Hiroshi Suzuki
Member				Shu Takahashi
Audit & Supervisory Board Members	Kiyoto Hagiwara			Yukiko Morita
	Toraki Inoue			Naoko Tanaka
				Takashi Hagio
*Serving as Executive Officer concurrently				Jun Nakashima
				Hiroshi Kaneko
				Shin Kato

Mitsuhiro Segawa

Mayumi Takada

Kouji Igarashi

Staff Profile (As of September 30, 2022)

Number of Employees	Average Age	Average Years of Service
2,006(128)	43.3	15.1

Notes: 1. The number of employees includes executive officers and locally hired staff overseas, but excludes temporary employees. 2. The figure in parentheses is the average number of temporary employees for the year.

Financial and Corporate Data

Corporate Data

Credit Risk

Management Group

Credit Div. I

Credit Div. II

Workout Div.

Appraisal Div.

Integrated Risk

Management Group

Risk Management Div.

Financial Markets Group

Treasury Funding Div. Treasury Investment Div. Credit Investment Div. Market Products Div.

Derivatives Sales Div. Market Products Development Div.

[Branches]

Kansai Br., Nagoya Br., Fukuoka Br., Sendai Br., Hiroshima Br., Sapporo Br., Takamatsu Br., Kanazawa Br., Shinjuku Br., Nihonbashi Br., Shibuya Br., Ueno Br., Ikebukuro Br., Yokohama Br., Chiba Br., Osaka Br., Umeda Br., Kyoto Br., BANK Br.

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Corporate Data

Office Directory (As of January 1, 2023)

Overseas Network

Business Network (As of September 30, 2022)

: Consolidated subsidiaries

: Affiliated companies accounted for using the equity method

Main affiliates

Financial and

● Representative Offices

New York Representative Office	Shanghai Representative Office	Representative Office Registered in
			Singapore
Chief Representative	Chief Representative	Chief Representative
Takashi Kometani	Shigeru Tanaka	Shingo Sawada
Address	Address	Address
1270 Avenue of the Americas, Suite	27F, Hang Seng Bank Tower,	50 Raffles Place,
#1040, New York, NY 10020, U.S.A.	1000 Lujiazui Ring Road,	#16-05A Singapore Land Tower,
Tel: [phone]	Pudong New Area,	Singapore 048623
Fax: [phone]	Shanghai 200120,	Tel: [phone]
	People's Republic of China	Fax: [phone]
	Tel: [phone]
	Fax: [phone]
Domestic Network

Aozora Bank, Ltd.

(BankingTrustbusinessservices)

Banking operations		GMO Aozora Net Bank, Ltd.	Banking business
		Aozora Regional Consulting Co., Ltd.	Business consulting services
		Aozora Asia Pacific Finance Limited	Financial services
		Aozora Europe Limited	Financial services
		Aozora North America, Inc.	Financial services
		Aozora Investments LLC	Investments
		Aozora GMAC Investment Limited	Investments
		AZB Funding and other 11 companies	Investment vehicle
		Orient Commercial Joint Stock Bank	Banking business
Other operations		Aozora Loan Services Co., Ltd.	Distressed loan servicing
		Aozora Securities Co., Ltd.	Financial instruments business
		Aozora Investment Management Co., Ltd.	Investment management services
		Aozora Real Estate Investment Advisors Co., Ltd.	Investment advisory services

Financial and

Corporate Data

Corporate Data

• Head Office 6-1-1,Kojimachi, Chiyoda-ku,Tokyo 102-8660,Japan
  Tel: [phone]
  SWIFT: NCBTJPJT
• Branch Offices

Sapporo

4-1-1, Kita Sanjo-nishi,

Chuo-ku, Sapporo 060-0003

Tel: [phone]

Sendai

3-2-1, Chuo, Aoba-ku,

Sendai 980-0021

Tel: [phone]

Shinjuku

3-37-11, Shinjuku,

Shinjuku-ku, Tokyo 160-0022

Tel: [phone]

Nihonbashi

2-2-1,Nihonbashi-muromachi,

Chuo-ku, Tokyo 103-0022

Tel: [phone]

Shibuya

1-7-7, Shibuya, Shibuya-ku,

Tokyo 150-0002

Tel: [phone]

Ueno

2-2-1,Nihonbashi-muromachi,

Chuo-ku, Tokyo 103-0022

Tel: [phone]

Ikebukuro

2-28-13,Minami-Ikebukuro,

Toshima-ku, Tokyo 171-0022

Tel: [phone]

Chiba

2-15-11, Fujimi, Chuo-ku,

Chiba 260-0015

Tel: [phone]

Yokohama

1-1-1, Minamisaiwai, Nishi-ku,

Yokohama 220-0005

Tel: [phone]

Kanazawa

2-37, Kamitsutsumicho,

Kanazawa 920-0869

Tel: [phone]

Nagoya

3-28-12, Meieki, Nakamura-ku,

Nagoya 450-6404

Tel: [phone]

Kyoto

79, Kankobokocho,

Muromachi-Higashiiru,Shijo-dori,

Shimogyo-ku, Kyoto 600-8009

Tel: [phone]

Kansai

1-12-12, Umeda, Kita-ku,

Osaka 530-0001

Tel: [phone]

(Kansai Branch deals solely with corporate clients.)

Osaka

1-12-12, Umeda, Kita-ku,

Osaka 530-0001

Tel: [phone]

Umeda

1-12-12, Umeda, Kita-ku,

Osaka 530-0001

Tel: [phone]

Hiroshima

13-13, Motomachi, Naka-ku,

Hiroshima 730-0011

Tel: [phone]

Takamatsu

9-6, Konyamachi,

Takamatsu 760-0027

Tel: [phone]

Fukuoka

2-8-36, Tenjin, Chuo-ku,

Fukuoka 810-0001

Tel: [phone]

Bank Branch

Bank Blue Branch

Bank Sky Branch

Bank Marine Branch

6-1-1, Kojimachi, Chiyoda-ku, Tokyo 102-8660 https://www.aozorabank.co.jp/bank/

ABN Advisors Co., Ltd.	M&A advisory services
Aozora Corporate Investment Co., Ltd.	Venture capital investment

Corporate Data

Corporate Data

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