financial results for fy2015 - aozora bankaozora bank, ltd. Ⅰ.overviews of the financial results...
TRANSCRIPT
Ⅳ.
Ⅴ.
Financial Resultsfor FY2015
【 INDEX 】
Ⅰ. Overviews of the Financial Results for the Year Ended March 31, 2016 (Fiscal Year 2015 )
1. Summary of Revenue and Expenses 【Consolidated】 1
【Non-consolidated】 2
2. Profit Margins 【Non-consolidated】 3
3. Business Profit 【Non-consolidated】
4. ROE 【Non-consolidated】
5. Gains (Losses) on Securities Transactions 【Non-consolidated】
6. Investments and Funding 【Non-consolidated】【Consolidated】 4
7. Unrealized Gains and Losses on Securities 【Non-consolidated】【Consolidated】 5
8. Employees' Retirement Benefits 【Non-consolidated】【Consolidated】 6
9. Capital Adequacy Ratio(under Japanese domestic standards)【Consolidated】【Non-consolidated】 7
Ⅱ. Status of Loans, etc.
1. Risk Monitored Loans 【Non-consolidated】【Consolidated】 8
2. Allowance for Loan Losses 【Non-consolidated】【Consolidated】 9
3. Disclosed Claims under the Financial Reconstruction Law ("FRL Credit") 【Non-consolidated】 10
4. Allowance and Coverage for FRL Credit 【Non-consolidated】
5. Coverage for FRL Credit by Borrowers' Category 【Non-consolidated】 11
6. Off-Balancing of FRL Credit 【Non-consolidated】 12
7. Breakdown of Loans and Bills Discounted Classified by Industry 【Non-consolidated】 14
① Loans and Bills Discounted Classified by Industry
② Risk Monitored Loans Classified by Industry
③ Consumer Loans 15
④ Loans to Small/Medium-sized Corporations
8. Debentures, Deposits and Loans 【Non-consolidated】
Ⅲ. Uniform Questions for FY 2015
1. FRL Credit Ratio 【Non-consolidated】【Consolidated】 16
2. Investment Stocks 【Non-consolidated】
3. Loans to Small/Medium-sized Corporations 【Non-consolidated】
4. Sales of investment trusts and annuity insurance to retail customers 【Non-consolidated】
5. Japanese Government Bonds 【Non-consolidated】
Ⅳ. Deferred Tax Assets 17
Ⅴ. Disclosure of exposure to securitized products 18
Aozora Bank, Ltd.
Ⅰ. Overviews of the Financial Results for the Year Ended March 31, 2016 (Fiscal Year 2015 )
1.Summary of Revenue and Expenses
【Consolidated】
(million yen)
FY 2015 FY 2014
(A) (A)-(B) (B)
Consolidated net revenue ※1 91,403 (1,430) 92,834
Net interest income 49,804 (176) 49,981
Net fees and commissions 11,464 (3,083) 14,547
Net trading income 12,208 (271) 12,479
Net other ordinary income 17,926 2,100 15,826
General and administrative expenses (42,806) (2,650) (40,155)
Business profit ※2 48,597 (4,081) 52,679
Credit-related expenses 4,745 54 4,690
Write-off of loans (217) 372 (589)
Provision of specific allowance for loan losses (1,517) (10,144) 8,626
Provision of general allowance for loan losses 2,839 14,487 (11,648)
Provision of allowance for loans to restructuring countries - - -
Loss on disposition of loans (94) (2,704) 2,610
Recoveries of written-off claims 3,393 (1,654) 5,047
Provision of reserve for credit losses on off-balance-sheet instruments 341 (302) 644
Gains (losses) on stock transactions 1,421 116 1,304
Income from interests in associated undertakings - - -
Other 957 (40) 997
Ordinary profit 55,721 (3,950) 59,671
Extraordinary profit (loss) (4) 5,755 (5,759)
Profit before income taxes and non-controlling interests 55,716 1,804 53,912
Income taxes-current (1,257) 2,195 (3,452)
Income taxes-deferred (10,946) (4,194) (6,752)
Profit (loss) 43,512 (194) 43,707
Profit (loss) attributable to non-controlling interests (13) 4 (17)
Profit (loss) attributable to owners of parent 43,499 (190) 43,689
(Note) The amounts are rounded down to the nearest million yen.
(Scope of Consolidation and Equity-Method Application) (Number of companies)
FY 2015 FY 2014
(A) (A)-(B) (B)
Consolidated subsidiaries 18 3 15
Affiliated companies applying equity-method 0 0 0
※1 Consolidated net revenue = (Interest income - Interest expenses) + (Fees and commissions income - Fees and commissions expenses) + (Trading
income - Trading expenses) + (Other ordinary income - Other ordinary expenses)
※2 Business profit = Consolidated net revenue - General and administrative expenses
- 1 -
Aozora Bank, Ltd.
【Non-consolidated】(million yen)
FY 2015 FY 2014
(A) (A)-(B) (B)
Net revenue 86,121 257 85,863
(Excluding gains (losses) on bond transactions) 77,993 (5,012) 83,005
Net interest income 47,855 (600) 48,456
Net fees and commissions 11,542 (2,960) 14,503
Net trading income 9,753 (366) 10,119
Net other ordinary income 16,969 4,185 12,784
(Gains (losses) on bond transactions) 8,128 5,270 2,857
(39,273) (2,402) (36,871)
Personnel (18,795) (635) (18,160)
Property and equipment (17,786) (1,175) (16,611)
Taxes (2,691) (592) (2,099)
Business profit before general allowance for loan losses 46,847 (2,144) 48,992
Excluding gains (losses) on bond transactions 38,719 (7,415) 46,134
Credit-related expenses 4,081 (980) 5,062
Written-off of loans (369) 577 (946)
Provision of specific allowance for loan losses (1,377) (9,605) 8,227
Provision of general allowance for loan losses 2,612 12,892 (10,280)
Provision of allowance for loans to restructuring countries - - -
Loss on disposition of loans (11) (2,665) 2,653
Recoveries of written-off claims 2,935 (1,787) 4,723
292 (391) 684
Gains (losses) on stock transactions 1,319 15 1,304
Other 2,211 (280) 2,492
Ordinary profit 54,460 (3,391) 57,851
Extraordinary profit (loss) (3) (0) (2)
Profit before income taxes 54,456 (3,392) 57,849
Income taxes-current (894) 1,841 (2,736)
Income taxes-deferred (10,930) (4,133) (6,796)
Profit 42,631 (5,684) 48,316
46,847 8,135 38,712
(Note) The amounts are rounded down to the nearest million yen.
General and administrative expenses
Business profit
Provision of reserve for credit losses on off-balance-sheet
instruments
- 2 -
Aozora Bank, Ltd.
2. Profit Margins 【Non-consolidated】(Total)
FY 2015 FY 2014
(A) (A)-(B) (B)
(1)Yield on total investments (A) 1.63% 0.12% 1.51%
Yield on loans (B) 1.51% 0.00% 1.51% Yield on securities 1.89% 0.50% 1.39%
1.37% 0.10% 1.27%
1.45% 0.01% 1.44%
Yield on debentures, deposits & certificates of deposit
(E)0.27% (0.03%) 0.30%
Yield on borrowings 0.38% 0.08% 0.30%
(3)Profit margins (A)-(C) 0.26% 0.02% 0.24%
(4)Loan margin (B)-(D) 0.06% (0.01%) 0.07%
(5)Yield spread (B)-(E) 1.24% 0.03% 1.21%(Note) The figures are calculated in the method specified in "Kessan Jokyohyo".
(Domestic operations)
FY 2015 FY 2014
(A) (A)-(B) (B)
(1)Yield on total investments (A) 0.85% (0.06%) 0.91%
Yield on loans (B) 1.03% (0.12%) 1.15% Yield on securities 1.16% 0.54% 0.62%
1.24% 0.00% 1.24%
1.35% 0.00% 1.35%
Yield on debentures, deposits & certificates of deposit
(E)0.26% (0.04%) 0.30%
Yield on borrowings 0.29% 0.03% 0.26%
(3)Profit margins (A)-(C) (0.39%) (0.06%) (0.33%)
(4)Loan margin (B)-(D) (0.32%) (0.12%) (0.20%)
(5)Yield spread (B)-(E) 0.77% (0.08%) 0.85%
(Note) The figures are calculated in the method specified in "Kessan Jokyohyo".
3. Business Profit 【Non-consolidated】 (million yen)
FY 2015 FY 2014
(A) (A)-(B) (B)Business profit
before general allowance for loan losses 46,847 (2,144) 48,992per employee (thousand yen) 27,753 (2,771) 30,524
4. ROE 【Non-consolidated】
FY 2015 FY 2014
(A) (A)-(B) (B)11.72% (0.85%) 12.57%
Profit basis 10.67% (1.72%) 12.39%
5. Gains (losses) on Securities Transactions 【Non-consolidated】 (million yen)
FY 2015 FY 2014
(A) (A)-(B) (B)Gains (losses) on bond transactions 8,128 5,270 2,857
Gain on sale 10,153 (935) 11,088Gain on redemption - - - Loss on sale (1,491) 6,739 (8,230)Loss on redemption (528) (528) - Loss on devaluation (6) (5) (0)
Gains (losses) on stock transactions 1,319 15 1,304Gain on sale 1,319 14 1,305 Loss on sale - - - Loss on devaluation - 0 (0)
{(Total net assets at beginning of term - Subscription rights to shares - Number of preferred + (Total net assets at end of term - Subscription rights to shares - Number of preferred
shares outstanding at the beginning of the term × Issue price) shares outstanding at the end of the term × Issue price)} /2
ROE=(Profit - Dividends paid on preferred stock(excluding the super preferred dividend))
Business profit before general allowance for loan losses basis
(2)Rate of funding cost(including general and administrative
expenses) (C) Cost of debentures, deposits & certificates of deposit
(including general and administrative expenses) (D)
(2)Rate of funding cost(including general and administrative
expenses) (C) Cost of debentures, deposits & certificates of deposit
(including general and administrative expenses) (D)
- 3 -
Aozora Bank, Ltd.
6. Investments and Funding【Non-consolidated】(Total) (million yen)
Average balance Yield Average balance Yield Average balance Yield
Total investments 3,868,640 1.63% (216,769) 0.12% 4,085,410 1.51%
Due from banks 41,506 0.24% 5,475 0.11% 36,031 0.13%
Call loans 17,250 0.13% (4,250) (0.01%) 21,501 0.14%
Receivables under securities borrowing transactions 31,414 0.02% (14,211) (0.01%) 45,625 0.03%
Securities 1,050,729 1.89% (206,310) 0.50% 1,257,039 1.39%
Loans and bills discounted 2,659,050 1.56% (18,767) 0.02% 2,677,817 1.54%
Total funding 3,973,053 0.38% 47,287 0.05% 3,925,766 0.33%
Deposits 2,759,813 0.29% 28,461 (0.04%) 2,731,351 0.33%
Negotiable certificates of deposit 305,995 0.10% 28,965 (0.01%) 277,030 0.11%
Debentures 240,557 0.25% 24,502 (0.01%) 216,055 0.26%
Call money 154,936 0.31% (22,972) 0.08% 177,909 0.23%
Payables under repurchase agreements - - - - - -
Payables under securities lending transactions 284,267 0.33% (40,797) 0.15% 325,064 0.18%
Borrowed money 190,762 0.43% 12,800 0.06% 177,962 0.37%
Bonds payable 10,997 0.19% 10,997 0.19% - -
(Domestic operations) (million yen)
Average balance Yield Average balance Yield Average balance Yield
Total investments 3,477,300 0.85% (171,502) (0.06%) 3,648,803 0.91%
Due from banks 108 0.05% 80 (0.05%) 28 0.10%
Call loans 17,117 0.13% (4,293) (0.01%) 21,410 0.14%
Receivables under securities borrowing transactions 31,414 0.02% (14,211) (0.01%) 45,625 0.03%
Securities 424,088 1.16% (237,454) 0.54% 661,543 0.62%
Loans and bills discounted 1,732,993 1.12% (181,824) (0.10%) 1,914,818 1.22%
Total funding 3,621,087 0.26% 64,672 (0.03%) 3,556,414 0.29%
Deposits 2,728,219 0.28% 14,444 (0.04%) 2,713,775 0.32%
Negotiable certificates of deposit 305,995 0.10% 28,965 (0.01%) 277,030 0.11%
Debentures 240,557 0.25% 24,502 (0.01%) 216,055 0.26%
Call money 99,879 0.07% (17,365) (0.03%) 117,244 0.10%
Payables under repurchase agreements - - - - - -
Payables under securities lending transactions 71,901 0.04% (5,052) (0.02%) 76,954 0.06%
Borrowed money 160,412 0.43% 6,955 0.05% 153,457 0.38%
Bonds payable 10,997 0.19% 10,997 0.19% - -
【Consolidated】(Total) (million yen)
Average balance Yield Average balance Yield Average balance Yield
Total investments 3,853,632 1.69% (219,051) 0.14% 4,072,684 1.55%
Due from banks 61,986 0.21% 11,711 0.10% 50,274 0.11%
Call loans and bills bought 17,250 0.13% (4,250) (0.01%) 21,501 0.14%
Receivables under securities borrowing transactions 31,414 0.02% (14,211) (0.01%) 45,625 0.03%
Securities 996,537 2.01% (216,209) 0.56% 1,212,747 1.45%
Loans and bills discounted 2,651,904 1.63% (21,781) 0.03% 2,673,686 1.60%
Total funding 3,963,564 0.38% 44,285 0.04% 3,919,279 0.34%
Deposits 2,746,197 0.29% 26,165 (0.04%) 2,720,031 0.33%
Negotiable certificates of deposit 305,995 0.10% 28,965 (0.01%) 277,030 0.11%
Debentures 240,557 0.25% 24,502 (0.01%) 216,055 0.26%
Call money and bills sold 154,936 0.31% (22,972) 0.08% 177,909 0.23%
Payables under repurchase agreements - - - - - -
Payables under securities lending transactions 284,267 0.33% (40,797) 0.15% 325,064 0.18%
Borrowed money 194,889 0.46% 12,094 0.06% 182,795 0.40%
Bonds payable 10,997 0.19% 10,997 0.19% - -
FY 2015 FY 2014
(A) - (B)
FY 2015 FY 2014
(A) (B)
(A) (A) - (B) (B)
(A) - (B)(A) (B)
FY 2015 FY 2014
- 4 -
Aozora Bank, Ltd.
7. Unrealized Gains and Losses on Securities
① Valuation standards
Held-for-trading securities Fair value
Held-to-maturity bonds Amortized cost
Available-for-sale securities
With fair value available
Without fair value available Acquisition cost
Stocks in subsidiaries and affiliates Acquisition cost
② Unrealized gains and losses
【Non-consolidated】 (million yen)
Unrealized gains and losses Unrealized gains and losses
(A) (A)-(B) (B)
Held-to-maturity bonds - - - - - - -
- - - - - - -
Available-for-sale securities 22,869 (28,043) 37,577 14,708 50,912 53,279 2,367
Japanese stocks 23,549 (2,720) 23,621 72 26,269 26,325 55
Japanese debt securities 506 (587) 561 54 1,094 1,380 286
Other (1,186) (24,736) 13,395 14,581 23,549 25,574 2,024
Total 22,869 (28,043) 37,577 14,708 50,912 53,279 2,367
Japanese stocks 23,549 (2,720) 23,621 72 26,269 26,325 55
Japanese debt securities 506 (587) 561 54 1,094 1,380 286
Other (1,186) (24,736) 13,395 14,581 23,549 25,574 2,024 (Note)
(A)-(B)Monetary claims bought 23 21 23 - 1 1 -
【Consolidated】 (million yen)
Unrealized gains and losses Unrealized gains and losses
(A) (A)-(B) (B)
Held-to-maturity bonds - - - - - - -
Available-for-sale securities 23,045 (28,043) 37,754 14,708 51,089 53,456 2,367
Japanese stocks 23,549 (2,720) 23,621 72 26,269 26,325 55
Japanese debt securities 512 (584) 566 54 1,097 1,383 286
Other (1,015) (24,738) 13,566 14,581 23,722 25,747 2,024
Total 23,045 (28,043) 37,754 14,708 51,089 53,456 2,367
Japanese stocks 23,549 (2,720) 23,621 72 26,269 26,325 55
Japanese debt securities 512 (584) 566 54 1,097 1,383 286
Other (1,015) (24,738) 13,566 14,581 23,722 25,747 2,024 (Note)
(A)-(B)Monetary claims bought 23 21 23 - 1 1 -
Fair value (Unrealized gains (losses) recorded in net assets, net of taxes.)
losses
March 31, 2016 March 31, 2015 Unrealized gainsand losses (A)
Unrealized gainsand losses (B)gains losses gains losses
March 31, 2016 March 31, 2015
lossesgains
gains
gains losses
gains
March 31, 2016
gains losses gains
Available-for-sale securities are marked-to-market, and above figures are difference between balance sheet amount and acquisition cost.
Unrealized gainsand losses (A)
Unrealized gainsand losses (B)
losses
The gain or loss from revaluation of 'Securities' on the consolidated balance sheet is included in the table above.
A portion of beneficial interests in investment trust within 'monetary claims bought' are marked-to-market, but the unrealized gains and losses
in the table below are not included in the table above.
losses
March 31, 2015
Stocks in subsidiaries and affiliates
Available-for-sale securities are marked-to-market, and above figures are difference between consolidated balance sheet amount and
acquisition cost.
The gain or loss from revaluation of 'Securities' on the balance sheet is included in the table above.
A portion of beneficial interests in investment trust within 'monetary claims bought' are marked-to-market, but the unrealized gains and losses
in the table below are not included in the table above.
March 31, 2016 March 31, 2015
- 5 -
Aozora Bank, Ltd.
8. Employees' Retirement Benefits
① Provision for retirement benefits
【Non-consolidated】 (million yen)
March 31, 2016 March 31,
2015
(A) (A) - (B) (B)
Retirement benefit obligations (A) (42,053) (4,971) (37,082)Pension assets (B) 34,143 (706) 34,850
Unfunded retirement benefit obligations (C)=(A)+(B) (7,909) (5,677) (2,231)Unrecognized actuarial loss (D) 1,519 7,139 (5,620)Unrecognized prior service cost (E) (1,720) 327 (2,047)
Net liability recognized (F)=(C)+(D)+(E) (8,110) 1,789 (9,899)Prepaid pension cost (G) - - - Provision for retirement benefits (F)-(G) (8,110) 1,789 (9,899)
【Consolidated】 (million yen)
March 31, 2016 March 31,
2015
(A) (A) - (B) (B)
Retirement benefit obligations (A) (42,153) (4,977) (37,175)Pension assets (B) 34,143 (706) 34,850
Unfunded retirement benefit obligations (C)=(A)+(B) (8,009) (5,684) (2,325)Net defined benefit asset (D) 951 (4,534) 5,485
Net defined benefit liability (C)-(D) (8,961) (1,149) (7,811)Unrecognized actuarial loss (E) (1,519) (7,139) 5,620Unrecognized prior service cost (F) 1,720 (327) 2,047
(E)+(F) 200 (7,467) 7,668
② Net periodic benefit costs
【Non-consolidated】 (million yen)
FY 2015 FY 2014
(A) (A) - (B) (B)
Net periodic benefit costs (830) (124) (706)Service cost 1,267 23 1,243Interest cost 474 1 473Expected investment revenue (871) (71) (800)Charge off of prior service cost (327) - (327)Charge off of actuarial loss (1,383) (75) (1,308)Other 10 (3) 13
【Consolidated】 (million yen)
FY 2015 FY 2014
(A) (A) - (B) (B)
Net periodic benefit costs (818) (123) (694)
Remeasurements of defined benefit plans
(before income tax effect)
- 6 -
Aozora Bank, Ltd.
9. Capital Adequacy Ratio (under Japanese domestic standards)
■Basel Ⅲ
【Consolidated】 (million yen)
March 31, 2016 March 31, 2015 September 30, 2015
preliminary (A) (A) - (B) (A) - (C) (B) (C)
(1) Capital adequacy ratio (4)/(5) 11.03% (3.42%) 0.01% 14.45% 11.02%
(2) Core capital: instruments and reserves 421,137 (124,132) 4,640 545,269 416,497
(3) Core capital: regulatory adjustments 4,014 1,654 1,173 2,360 2,841
(4) Regulatory capital (2)-(3) 417,123 (125,786) 3,468 542,909 413,655
(5) Risk-weighted assets 3,778,341 21,457 27,384 3,756,884 3,750,957
(6) Total required capital (5)*4% 151,133 858 1,095 150,275 150,038
【Non-consolidated】 (million yen)
March 31, 2016 March 31, 2015 September 30, 2015
preliminary (A) (A) - (B) (A) - (C) (B) (C)
(1) Capital adequacy ratio (4)/(5) 10.83% (3.40%) 0.04% 14.23% 10.79%
(2) Core capital: instruments and reserves 413,813 (122,651) 6,473 536,464 407,340
(3) Core capital: regulatory adjustments 3,524 1,989 1,499 1,535 2,025
(4) Regulatory capital (2)-(3) 410,288 (124,640) 4,974 534,928 405,314
(5) Risk-weighted assets 3,786,782 27,998 31,002 3,758,784 3,755,780
(6) Total required capital (5)*4% 151,471 1,120 1,240 150,351 150,231
The 'Composition of Capital Disclosure' is available on our website at
http://www.aozorabank.co.jp/english/ir/library/
- 7 -
Aozora Bank, Ltd.
II. Status of Loans, etc.
1. Risk Monitored Loans
□ After partial and direct written-off
【Non-consolidated】 (million yen)
March 31, 2016 March 31, 2015 September 30, 2015
(A) (A) - (B) (A) - (C) (B) (C)
Loans to bankrupt companies - - - - -
Past due loans 19,146 (7,227) (1,852) 26,374 20,999
Loans overdue for 3 months or more - - - - -
Restructured loans 3,819 (7,949) (164) 11,768 3,984
Total 22,966 (15,176) (2,017) 38,143 24,983
Loan balance (end of period basis) 2,515,868 (265,577) (100,743) 2,781,445 2,616,611
Loans to bankrupt companies - - - - -
Past due loans 0.8% (0.2%) (0.0%) 0.9% 0.8%
Loans overdue for 3 months or more - - - - -
Restructured loans 0.2% (0.3%) (0.0%) 0.4% 0.2%
Total 0.9% (0.5%) (0.0%) 1.4% 1.0%
□ After partial and direct written-off
【Consolidated】 (million yen)
March 31, 2016 March 31, 2015 September 30, 2015
(A) (A) - (B) (A) - (C) (B) (C)
Loans to bankrupt companies - - - - -
Past due loans 19,278 (7,095) (1,720) 26,374 20,999
Loans overdue for 3 months or more - - - - -
Restructured loans 4,545 (7,997) (211) 12,543 4,757
Total 23,823 (15,093) (1,932) 38,917 25,756
Loan balance (end of period basis) 2,511,622 (264,194) (98,768) 2,775,817 2,610,391
Loans to bankrupt companies - - - - -
Past due loans 0.8% (0.2%) (0.0%) 1.0% 0.8%
Loans overdue for 3 months or more - - - - -
Restructured loans 0.2% (0.3%) (0.0%) 0.5% 0.2%
Total 0.9% (0.5%) (0.0%) 1.4% 1.0%
Risk
Monitor
ed
Loans
Ratio to
Loan
balance
Risk
Monitor
ed
Loans
Ratio to
Loan
balance
- 8 -
Aozora Bank, Ltd.
2. Allowance for Loan Losses
□ After partial and direct written-off
【Non-consolidated】 (million yen)
March 31, 2016 March 31, 2015 September 30, 2015
(A) (A) - (B) (A) - (C) (B) (C)
Allowance for loan losses 60,185 (2,169) (1,996) 62,354 62,182
General allowance 51,077 (2,612) (1,984) 53,689 53,061
Specific allowance 9,108 442 (12) 8,665 9,121
- - - - -
□ After partial and direct written-off
【Consolidated】 (million yen)
March 31, 2016 March 31, 2015 September 30, 2015
(A) (A) - (B) (A) - (C) (B) (C)
Allowance for loan losses 61,384 (2,346) (2,065) 63,731 63,450
General allowance 52,145 (2,920) (2,184) 55,065 54,329
Specific allowance 9,239 573 118 8,665 9,121
- - - - -
Allowance for loans to
restructuring countries
Allowance for loans to
restructuring countries
- 9 -
Aozora Bank, Ltd.
3. Disclosed Claims under the Financial Reconstruction Law ("FRL Credit")
□ After partial and direct written-off
【Non-consolidated】 (million yen)
March 31, 2016 March 31, 2015 September 30, 2015
(A) (A) - (B) (A) - (C) (B) (C)
Bankrupt and similar credit 125 (151) (150) 276 275
Doubtful credit 19,021 (7,128) (1,702) 26,150 20,724
Special attention credit 3,819 (7,949) (164) 11,768 3,984
Total (a) 22,966 (15,229) (2,018) 38,195 24,985
4. Allowance and Coverage for FRL Credit
□ After partial and direct written-off
【Non-consolidated】 (million yen)
March 31, 2016 March 31, 2015 September 30, 2015
(A) (A) - (B) (A) - (C) (B) (C)
Allowance & Coverage (b) 18,595 (12,107) (1,031) 30,702 19,626
Allowance for loan losses 10,662 (928) (42) 11,591 10,705
Collateral / guarantee
coverage7,932 (11,178) (989) 19,111 8,921
(Note) Allowance for loan losses is the sum of specific allowance for loan losses and general allowance for loan losses for FRL Credit.
Coverage Ratio (b)/(a)
March 31, 2016 March 31, 2015 September 30, 2015
(A) (A) - (B) (A) - (C) (B) (C)
81.0% 0.6% 2.4% 80.4% 78.6%After partial and direct written-
off
- 10 -
Aozora Bank, Ltd.
5. Coverage for FRL Credit by Borrowers' Category
□ After partial and direct written-off
【Non-consolidated】 (100 millions yen)
FRL Credit
Loans other
-
1 100.0% 100.0%
Doubtful credit
Collateral /
Guarantee
coverage
78
190Allowance 90
79.9% 88.1% 191
Estimated
collections 22
Collateral /
Guarantee
coverage
- 44.6% 44.6% -
Allowance
38 17
Estimated
collections38
21
(Normal credit)
(25,282)
Collateral /
Guarantee
coverage
79
Allowance 107
Estimated
collections 44
70.9% 81.0% 230
Total credit Total allowance
25,511 602
The reserve ratio for the non-secured portion of special attention credit 44.6%
The reserve ratio for the need attention credit 7.5%
The reserve ratio for the normal credit 1.4%
(Note) The amounts are rounded to the nearest JPY 100 millions.
Risk Monitored
Loans
Risk Monitored
loans
Coverage Ratio
Special
attention credit
FRL Credit
Coverage Ratio
Restructured loans
Loans overdue for
three months or
more
Allowance RatioAllowance & CoverageBorrower categories
for self-assessment
Allowance ratio
= Allowance / (Credit-Collateral, Guarantees, etc.)
Bankrupt borrowers
Need Attention
borrowers
Normal borrowers
230
Past due loans
Coverage ratio
= (Collateral, Guarantees+Allowance) / Credit
Loans to bankrupt
companies
De facto bankrupt
borrowers
In Danger of
Bankruptcy borrowers
FRL Credit, totalFRL Credit
Allowance Ratio
Collateral /
Guarantee
coverage
Bankrupt and similar
credit 1
- 11 -
Aozora Bank, Ltd.
6. Off-Balancing of FRL Credit 【Non-consolidated】
① Balance of doubtful credit, and bankrupt and similar credit
(100 millions yen)
As of As of As of As of As of As of As of As of
Newly added within:Sep. 30,
2012
Mar. 31,
2013
Sep. 30,
2013
Mar. 31,
2014
Sep. 30,
2014
Mar. 31,
2015
Sep. 30,
2015
increase
(decrease)Mar. 31,
2016
(B) (A)-(B) (A)
-Sep. 30, 2012Bankrupt and
similar credit52 61 17 15 4 2 2 (1) 1
Doubtful credit 744 570 403 304 218 188 125 (11) 115
796 631 420 319 222 190 128 (12) 116
Oct. 1, 2012
-Mar. 31, 2013
Bankrupt and
similar credit- 11 11 19 1 0 0 (0) -
Doubtful credit - 221 206 200 111 3 3 (0) 3
- 232 216 219 112 4 3 (0) 3
Apr. 1, 2013
-Sep. 30, 2013
Bankrupt and
similar credit- - 0 2 - - - - -
Doubtful credit - - 45 18 17 3 3 (0) 3
- - 45 20 17 3 3 (0) 3
Oct. 1, 2013
-Mar. 31, 2014
Bankrupt and
similar credit- - - - - - - - -
Doubtful credit - - - 45 39 37 25 (4) 21
- - - 45 39 37 25 (4) 21
Apr. 1, 2014
-Sep. 30, 2014
Bankrupt and
similar credit- - - - 0 - - - -
Doubtful credit - - - - 18 20 16 (16) -
- - - - 18 20 16 (16) -
Oct. 1, 2014
-Mar. 31, 2015
Bankrupt and
similar credit- - - - - - - - -
Doubtful credit - - - - - 10 10 (2) 8
- - - - - 10 10 (2) 8
Apr. 1, 2015
-Sep. 30, 2015
Bankrupt and
similar credit- - - - - - - - -
Doubtful credit - - - - - - 25 1 26
- - - - - - 25 1 26
Oct. 1, 2015
-Mar. 31, 2016
Bankrupt and
similar credit- - - - - - - - -
Doubtful credit - - - - - - - 16 16
- - - - - - - 16 16
(Note1) The amounts are rounded to the nearest 100 millions yen.(Note2)
subtotal
subtotal
Balance as of Mar. 31, 2016 includes those borrowers (JPY 0.1 billion) for whom
measures are undertaken which will lead to eventual off-balancing.
subtotal
subtotal
subtotal
subtotal
subtotal
subtotal
- 12 -
Aozora Bank, Ltd.
② Off-balancing of doubtful credit, and bankrupt and similar credit
(100 millions yen)
-Sep. 30,
2012
Oct. 1, 2012
-Mar. 31, 2013
Apr. 1, 2013
-Sep. 30, 2013
Oct. 1, 2013
-Mar. 31, 2014
Apr. 1, 2014
-Sep. 30, 2014
Oct. 1, 2014
-Mar. 31, 2015
Apr. 1, 2015
-Sep. 30, 2015
- - - - - - -
- - - - - - -
- - - - - (2) -
11 0 - - - 0 -
(23) (1) (0) (4) (16) (1) 1
(12) (0) (0) (4) (16) (2) 1
(Note1)(Note2)
(Note3) If legal proceedings such as debt waiver, forgiveness, collection and so on, occur after direct written-off of book cost, relevant
amounts are reentered in "Liquidation-type disposition", "Restructuring-type disposition" or "Other" where appropriate and
subtracted from "Direct written-off".
Newly added
within:
Liquidation-type
disposition
Restructuring-
type disposition
Loan liquidations
Direct written-off
Other
Total
The amounts are rounded to the nearest 100 millions yen.Liquidation-type disposition : debt waiver in event of bankruptcy or special liquidationRestructuring-type disposition : debt waiver in event of restructuring-type proceedings, such as corporate reorganization, civil
rehabilitation, composition and winding-up; or debt forgivenessOther : collection by disposition of collateral, business improvement of debtor, etc.
- 13 -
Aozora Bank, Ltd.
7. Breakdown of Loans and Bills Discounted Classified by Industry 【Non-consolidated】
□ After partial and direct written-off
① Loans and Bills Discounted Classified by Industry (million yen)
March 31, 2016 March 31, 2015 September 30, 2015
2,515,868 2,781,445 2,616,611
Manufacturing 215,294 264,304 212,512
Agriculture, forestry & fisheries 3,774 3,139 2,689
Mining, quarry, gravel extraction 800 1,627 1,437
Construction 17,795 22,155 15,916
Electricity, gas, heat supply & water 18,731 14,339 15,271
Information & communications 29,632 40,229 33,024
Transport, postal Service 62,743 82,284 72,589
Whole sale & retail trade 110,774 127,820 115,243
Finance & insurance 382,603 433,157 389,025
Real estate 513,521 604,207 569,077
Leasing 84,067 116,714 98,882
Various Services 152,182 160,315 144,486
Local governments 22,970 40,402 24,394
Others 900,977 870,747 922,061
- - -
Government - - -
Financial institution - - -
Others - - -
Total 2,515,868 2,781,445 2,616,611
② Risk Monitored Loans Classified by Industry (million yen)
March 31, 2016 March 31, 2015 September 30, 2015
22,966 38,143 24,983
Manufacturing 3,184 3,365 3,358
Agriculture, forestry & fisheries - - -
Mining, quarry, gravel extraction - - -
Construction - - -
Electricity, gas, heat supply & water - - -
Information & communications 66 66 66
Transport, postal Service 19 21 19
Whole sale & retail trade 320 1,173 620
Finance & insurance 125 7,800 -
Real estate 1,288 6,294 1,510
Leasing - 238 238
Various Services 46 46 46
Local governments - - -
Others 17,916 19,137 19,123
- - -
Government - - -
Financial institution - - -
Others - - -
Total 22,966 38,143 24,983
Loans by domestic offices
(excluding Japan Offshore Market accounts)
Loans by domestic offices
(excluding Japan Offshore Market accounts)
Loans by oversea offices
(including Japan Offshore Market accounts)
Loans by oversea offices
(including Japan Offshore Market accounts)
- 14 -
Aozora Bank, Ltd.
③ Consumer Loans (million yen)
March 31, 2016 March 31, 2015 September 30,
2015
(A) (A) - (B) (A) - (C) (B) (C)
Consumer loans 3,653 (356) (378) 4,009 4,031
Housing loans 3,163 (810) (354) 3,974 3,518
Other loans 489 454 (23) 35 513
④ Loans to Small/Medium-sized Corporations (million yen)
March 31, 2016 March 31, 2015 September 30,
2015
(A) (A) - (B) (A) - (C) (B) (C)
Loans to small/medium-sized corporations 1,771,132 (156,274) (64,736) 1,927,407 1,835,869
Ratio to total loans 70.4% 1.1% 0.2% 69.3% 70.2%
8. Debentures, Deposits and Loans【Non-consolidated】 (million yen)
March 31, 2016 March 31, 2015 September 30,
2015
(A) (A) - (B) (A) - (C) (B) (C)
Ending balance 219,465 (26,646) (21,920) 246,112 241,386
Average balance 240,557 24,502 (6,594) 216,055 247,151
Ending balance 2,723,774 13,496 (24,789) 2,710,278 2,748,564
Average balance 2,759,813 28,461 (17,655) 2,731,351 2,777,468
Ending balance 2,945,374 (51,556) (101,889) 2,996,931 3,047,264
Average balance 3,065,808 57,426 (36,416) 3,008,382 3,102,224
Ending balance 2,515,868 (265,577) (100,743) 2,781,445 2,616,611
Average balance 2,659,050 (18,767) (68,969) 2,677,817 2,728,019
Debentures
Deposits
Deposits & Certificates of deposits
Loans and bills discounted
- 15 -
Aozora Bank, Ltd.
Ⅲ. Uniform Questions for FY2015
1.FRL Credit Ratio 【Non-consolidated】【Consolidated】
Sep. 30, 2013 Mar. 31, 2014 Sep. 30, 2014 Mar. 31, 2015 Sep. 30, 2015 Mar. 31, 2016
Non-consolidated 3.21% 2.98% 1.88% 1.35% 0.94% 0.90%Consolidated 3.29% 3.00% 1.91% 1.38% 0.97% 0.93%
2. Investment Stocks 【Non-consolidated】(1) Investment Stocks (100 millions yen)
Acquisition cost(A) Market value(B) (B)-(A)
March 31, 2015 279 542 263September 30, 2015 307 558 251 March 31, 2016 311 547 235 (Note) The amounts are rounded to the nearest 100 millions yen. The same applies in the following tables.
(2) Sales of cross-holding stocks
None
(3) Impairment of stocks (100 millions yen)
Impairment loss
FY 2014 13 - FY 2015 1st Half Period 1 -FY 2015 13 -
3.Loans to Small/Medium-sized Corporations 【Non-consolidated】Loan Balance (100 millions yen)
Balance Increase/Decrease Ratio to total loans
March 31, 2015 19,274 2.7% 69.3%September 30, 2015 18,359 (4.7%) 70.2%March 31, 2016 17,711 (3.5%) 70.4%
4. Sales of investment trusts and annuity insurance to retail customers 【Non-consolidated】a.Investment trusts (100 millions yen)
Sales Total
FY 2014 558FY 2015 1st Half Period 236 FY 2015 433
b.Annuity insurance (100 millions yen)
Sales Total
FY 2014 550FY 2015 1st Half Period 237 FY 2015 443
5. Japanese Government Bonds 【Non-consolidated】(100 millions yen)
Balance
March 31, 2015 1,938 September 30, 2015 1,352 March 31, 2016 280
Gains (losses) on stock transactions
- 16 -
Aozora Bank, Ltd.
1. Judgement for Realizability of Deferred Tax Asset and Estimation Period of Future Taxable Income
2. Past Business Performance
(Unit: JPY 100 millions)
FY 2013 FY 2014 FY 2015
457 490 468
511 578 545
299 321 151
Taxable Income before Adjustment 512 700 478
3. Estimated Future Taxable Income
(Unit: JPY 100 millions)
next 5 years
Business Profit before General Loan-loss Reserve 1,583 (*)
Income before Income Taxes 1,602
1,684
4. Temporary Differences and Loss Carryforwards
(Unit: JPY 100 millions)
303
Allowance for loan losses 196
Provision for employees' retirement benefits 25
Securities write-off 205
Unrealized gain on available-for-sale securities -
Tax loss carryforwards 21
Other 109
Subtotal 556
Less valuation allowance (253)
92
Unrealized gain on available-for-sale securities 68
210
note) Deferred tax assets/ liabilities are shown on a non-consolidated basis, as those of consolidated subsidiaries are
insignificant.
Deferred Tax Assets
Deferred tax liabilities
Net deferred tax assets
Basis for Estimation
Estimated Taxable Income before Adjustment (*)
Estimated conservatively reflecting the
uncertainty of the projection.
IV. Deferred Tax Assets
Taxable income (before offsetting of tax loss carryforwards)
Business Profit before General Loan-loss Reserve
Income before Income Taxes
We have categorized the Bank under the 'proviso of Category No.4 of the judgment guidelines on the realizability of deferred tax
assets' (*) and have calculated deferred tax assets based on the estimation of future taxable income for the next 5 years.
The tax-loss carryforwards as of March 31, 2016 were mainly attributed to the past non-recurring events shown below.
- Significant addressing of overseas investments that deteriorated as a result of the turbulence in global financial markets
stemming from the subprime loan crisis in the USA
(*) 'The audit treatment with respect to the judgment for the realizability of deferred tax assets' (JICPA Audit Committee Report
#66)
- 17 -
Aozora Bank, Ltd.
Ⅴ. Disclosure of Exposure to Securitized Products
1. CDO, CMBS and RMBS Exposure
(100 Million Yen)
March 31,2016 March 31,2015
0 0
North America 0 0
28 30
Japan - -
Asia 28 30
5 7
Japan 5 7
2. Leveraged Finance
(100 Million Yen)
March 31,2016 March 31,2015
881 846
55 36
936 882
Geographical distribution
Total leveraged finance (100 Million Yen)
March 31,2016 March 31,2015
376 409
81 60
449 349
30 64
936 882
Note: The figures stated in 100 million yen are rounded to the nearest 100 million.
Exposure of the Group to CDO (Collateralized Debt Obligation), CMBS (Commercial Mortgage-Backed Securities) and
RMBS (Residential Mortgage-Backed Securities) is as follows:
CDO
CMBS
RMBS
The exposure of the Group to leveraged finance is as follows:
The following amount is the aggregated amount of loan balance rendered for M&A finance (including refinance for M&A
deals in the past). It excludes loans that are in investment grade or equivalent ratings.
Europe
Japan
Oceania
Total
Loan balance
Commitment line(Unfunded)
Total leveraged finance
North America
-18-