AOGIN Annual Report 2018 The Aomori Bank,Ltd. AOGIN Annual Report 2018
AOGIN Annual Report 2018
Profile
Aomori Bank has been serving its customers for 140 years and is known affectionately in the area as “AOGIN”
The Aomori Bank, Ltd. has traveled the path of sound business management for about 140 years since its founding in 1879. In 1943, five banks based in Aomori Prefecture merged to form the present-day Aomori Bank, after which we have continued our strong growth as the region’s leading financial institution. In April 2016, we formulated our 15th three-year medium-term business plan. Based on this plan, we aim to increase corporate value and to be able to grow along with the local community.
●Company Name The Aomori Bank, Ltd. ●Head Office 9-30, Hashimoto 1-chome, Aomori 030-0823, Japan ●Web URL https://www.a-bank.jp/ ●Date of Establishment October 1, 1943 ●Date of Foundation January 20, 1879 ●Number of Employees 1,326 ●Number of Offices 100 ●Paid-in Capital 19,562 million yen ●Number of Outstanding Shares 20,512 thousand shares ●Total Assets 2,899.1 billion yen ●Loans and Bills Discounted 1,744.5 billion yen ●Capital Adequacy Ratio 9.35% (Domestic Standards) ●Credit Rating A (Japan Credit Rating Agency, Ltd.)
Contents
▼Greeting…………………………………………………… 1 ▼Non-consolidated Financial Statements …… 10～13
▼The 15th Medium-Term Business Plan …………… 2 ▼Board of Directors and Executive officers ………… 14
▼AOGIN’s CSR Initiatives ………………………… 3～6 ▼Organization …………………………………………… 14
▼Financial Highlights ………………………………… 7～8 ▼Corporate Data ………………………………………… 15
▼Share in Aomori Prefecture and Loan Assets ……… 9
Greeting
I would like to sincerely thank all of our stakeholders for your continued support for the Aomori Bank, Ltd. We present the "AOGIN NOW̶A Brief Disclosure Document for the Year Ended March 2018," and invite you to read this booklet to further deepen your understanding of the Bank. In fiscal 2017, the economy of Aomori Prefecture remained on a gradual recovery track supported by steady consumer spending and housing investment. Partly due to influences such as an improved international image of Aomori Prefecture as a tourist destination and additional regular international and charter flights through the winter, inbound demand has increased steadily. This has stimulated the prefecture's economy to a measurable extent. Capturing such inbound demand, which is forecast to grow in the future, is expected to generate further ripple effects on the prefecture's economic activity. Fiscal 2018 marks the final year of the 15th medium-term business plan, "AOGIN Leading Plan," which started in April 2016. We will steadily promote the strengthening of field sales capabilities, a policy of the medium-term business plan, to complete the plan. All our directors and employees will also strive to improve their work-life balance, promote further participation by women, and embrace healthy management practices, thereby enhancing the corporate value and competitiveness of the entire Aomori Bank Group. We will mark our 140th anniversary in January 2019. Since our founding in 1879, we have come a long way together with people in the community. Under our corporate philosophy of "working for the community, together with customers, and respecting people," we will continue to respond to the expectations and trust of the local community, and contribute to building the future of this vibrant region. Finally, I sincerely ask for your continued support and loyalty.
October 2018 Susumu Narita, President
1 AOGIN Annual Report 2018
The 15th Medium-Term Business Plan AOGIN Leading Plan
Leading in Financing Leading in Regional Leading in Community Plan Duration: Financial Services Revitalization April 2016 to March 2019 (three years)
To become the most trusted bank in the prefecture with a prominent Vision presence that fosters community revitalization
Policy Strengthening field sales capabilities
Speed Power of Information Foresight
● We aim to achieve the vision spelled out in the Business Plan by outpacing competitors through rapid response to market shifts, sales activities that take advantage of the most up-to-date information, the active use of the most accurate information and knowledge and the implementation of strategies and investments that have the best interests and the futures of our community and customers in ●With the goal of improving corporate value and competitiveness, the head office and all branch offices will collaborate to strengthen the Bank's field sales capabilities.
Basic Strategies/Key Measures
【Basic Strategy I 】 【Basic Strategy II 】 【Basic Strategy III 】 Improve competitiveness by Actively engage in Develop and strategically restructuring the sales system regional revitalization allocate human resources
【Key Measures】 【Key Measures】 【Key Measures】
1. Strengthen regional sales capabilities, 1. Strengthen support for developing 1. Strengthen human resource regional industries, development and encourage the efforts 2. Strengthen corporate sales capabilities, of these employees, 2. Engage in efforts to evaluate the viability 3. Strengthen individual sales capabilities of business operations 2. Allocate talented human resources strategically to meet market needs
【Basic Strategy IV 】 【Basic Strategy V 】 Take advantage of affordable, Strengthen the operating base advanced ICT 【Key Measures】
【Key Measures】 1. Strengthen governance, 2. Reinforce security management, 1. Strengthen sales capabilities through 3. Enhance risk management, 4. Review operations at the head office and sales branches, closer cooperation between sales branches and the head office, 5. Shore up collaborations with affiliate companies,
2. Employ advanced ICT to support sales 6. Counteract the negative interest rate policy
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AOGIN’s CSR Initiatives Contributing to an Affluent Hometown
Presentation of the AOGIN Award
To commemorate the Bank's 50th anniversary, the AOGIN Award was created in 1993 to award individuals and organizations who contribute to the promotion of industry, community development, learning, culture, sports, and the like in Aomori Prefecture. It has been awarded to 77 recipients, including 68 organizations and nine individuals. We held the 25th award ceremony for 2017 at Aomori Kokusai Hotel (Aomori City) in October of the same year, and presented AOGIN Awards to the following four organizations.
Initiative for Promoting Regional Sports
To help give provide a dream and inspiration to our youth of our area、the youth who will play an important part in the future and revitalization of area, AOGIN has been an active sponser of the Aomori Wat’s of the Japan Professional Basketball League (B.League). The Bank has been an official sponsor since the club joined the Basketball Japan bj League in October 2013. AOGIN also acted as the title sponsor of the Aomori Bank Night Game. Played between the Tohoku Rakuten Golden Eagles and ORIX Buffaloes in June 2017 at Hirosaki City Haruka Yume Stadium, this was the first professional baseball game held in Aomori Prefecture in 29 years. In 2018, as part of our support for the promotion of sports in the region, we placed an advertisement on the number cards (number cloths) issued by the Aomori Athletic Association to registered competitors. The cards for 2018, featuring AOGIN's name, logo, and the aomo character, will be worn by competitors at eleven events to be held in 2018. Events include those held by the Nippon Junior High School Physical Culture Association and the inter-school athletics competition.
Donation of the Aomori Bank Memorial Hall (important cultural property) to Hirosaki City
In cooperation with Hirosaki City and in the support of it’s project to promote tourism and attract visitors through the development of sightseeing spot, AOGIN donated the Aomori Bank Memorial Hall to the city in April 2018. The Aomori Bank Memorial Hall was built as the main branch of the 59th Bank,Ltd. in 1904 and became the Hirosaki Branch of the Aomori Bank, Ltd. when the present Aomori Bank was formed in 1943. In 1965, when a new Hirosaki Branch building was completed, the branch was relocated and its name was changed to the Aomori Bank Memorial Hall in 1967. Then, in 1972, the building was designated as an important cultural property of Japan.
Small Kindness Movement
The Aomori Headquarters of the Small Kindness Movement, whose secretariat is hosted by AOGIN, was awarded the Small Kindness Movement Grand Prize at the movement's national awards ceremony. This is its highest award, and is presented to an organization that has contributed to the Small Kindness Movement over a long period of time. We have taken on the secretariat position of the Aomori Headquarters of the Small Kindness Movement since 1985, and have been running the "Spring Cleanup Operation" since 1996. Today, the operation has grown to become a special feature event of the spring season, where roughly 100,000 volunteers get together across Aomori Prefecture during the time this event is held. The April 2018 event, the 24th "Aomori Spring Cleanup Operation,” took place all around the prefecture.
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Supporting Everyone's Tomorrow
Initiatives for Enhancing the Business of Livestock Farmers
In March 2018, AOGIN provided joint financing with the Japan Finance Corporation to Farm Akasaka (Representative: Noriko Nakai), a farm for breeding Japanese black beef cattle in Sannohe Town. Ms. Nakai is one of the few females in the livestock industry and in 2017 she received the grand champion prize at the Aomori Livestock Farm Competitive Exhibition. She also exhibited in 2017 at the National Wagyū Quality Competitive Exhibition (Japanese Beef Olympics), representing Aomori Prefecture. We think very highly of Ms. Nakai's calf-breeding technology and her innovations, such as saving labor through the introduction of IoT and her collaborations with farmers who provide feed rice for her cattle. We felt strongly that her work will serve as a model in the Sannohe district where the livestock industry has long flourished. By utilizing our information network and consulting functions, we will continue to offer our full support to the prefecture's livestock industry.
Relocation and opening of the new Goshogawara Branch building
In May 2018, the Goshogawara Branch and Hirota Sub-branch were merged, relocated and opened as a new branch office next to the new Goshogawara City Hall building. The new Goshogawara Branch has a kids' corner, parking space for mobility-assistance vehicles, a communication system using cartilage conduction (cartilage conduction headset from Forte Inc.), in addition to the latest fully automatic bank boxes. It is a convenient and a relaxing branch office that serves a wide range of customers.
Initiative to provide a cashless environment to attract tourists from within and outside Japan ―Full-scale deployment of "Origami Pay" and "ALIPAY" across the prefecture―
In April 2018, AOGIN and Origami Inc. commenced a collaboration to promote the spread of "Origami Pay" and "ALIPAY" in Aomori Prefecture. This collaboration is intended to expand the number of stores where "Origami Pay," a payment tool for visitors from within Japan, and "ALIPAY," China's largest smartphone payment service, are available. It uses the QR code-based smartphone payment platform provided by Origami Inc. In addition, we have also begun collaborating with this company to provide an instantaneous account transfer service. When customers use "Origami Pay" for payment at a AOGIN customers Tourists from Tourists from Asia, store, the payment amount is debited from their savings account in real time. within Japan including China This initiative is the first of its kind in the Tohoku region and the bank plans to Origami Pay instantaneous Tourism business operators in Aomori Prefecture spread this cashless service throughout the prefecture in cooperation with account transfer other financial institutions and related organizations. We are confident that this collaboration between AOGIN and Origami Inc. will Introduction Origami Pay ALIPAY payment of affiliated payment help stimulate the regional economy by developing a readiness to accept companies tourists and other customers from within and outside Japan. It will also help capture visitor spending by establishing a "cashless environment model Origami Inc. (smartphone payment platform) district" in central Aomori City and expanding Origami Pay and ALIPAY all across the prefecture. * Our bank accounts cannot be designated as payment accounts for ALIPAY.
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Building a Rewarding Workplace
Promoting health management based on the AOGIN Health Declaration
AOGIN regards employee health as one of our most important management resources, and considers it a priority to enhance the organization's vitality and productivity through improved employee health. Since introducing the "AOGIN Health Declaration" in February 2014, the Bank has been proactively supporting initiatives to improve the overall health of people in the community in order to help raise Aomori Prefecture above its dubious distinction of having Japan's shortest life expectancy. Through cooperation with local public institutions, universities, companies, etc., we have been implementing programs to improve people's dietary habits, to hold walking events and other activities, and to conduct outreach and other educational programs for improved health literacy. For the second consecutive year, in February 2018, the Certified Health and Productivity Management Organization Recognition Program (Large Enterprise Category)̶White 500 recognized our outstanding corporate management of these employee health initiatives. In April 2018, we set up an exercise class as part of a new employee-training curriculum in cooperation with Blue Rings, the cheerleaders for the Aomori Wat's basketball team. This was an idea to help make exercise a habit and Chiho Iwadate of the Exercise class during new employee training and orientation raise employee awareness about health. Blue Rings
Initiative for promoting work-life balance
In February 2017, to boost productivity and to achieve work-life balance by making changes in the workplace, we issued the "IkuBoss* Declaration," making us the first private company in Aomori Prefecture to do so. All division and branch managers individually announced their participation in the IkuBoss Declaration two months later. By making this declaration, we committed ourselves to the creation of a fulfilling workplace environment where all our employees can work with enthusiasm and peace of mind.
* IkuBoss: Defined by the non-profit organization Fathering Japan as a "boss (manager, management) who supports the staff working together with him/her to achieve work-life balance and an enjoyable private life while performing well at work."
As part of our efforts to achieve work-life balance, we have launched several programs linked to maternity, childcare and nursing care. For instance, we hold support seminars to help employees taking childcare leave to return to work smoothly, "pre-mom seminars" to ease the anxiety of female employees who are expecting a baby, "
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Enhancing "Corporate Value"
Strengthening the corporate governance system
In line with our corporate philosophy and in order to fulfill the vision set General Meeting of Shareholders forth in the medium-term business plan, AOGIN seeks to contribute to Appointment Dismissal Appointment Dismissal Appointment Dismissal the development of the local economy and to improve corporate value by building a stronger corporate governance system. Board of Directors At the 110th annual shareholders meeting, held in June 2018, the upper Directors Nominating & Suggestion Audit Coordination management system of the bank was changed. The board’s operations (excluding Audit Audit & Accounting Remuneration & Supervisory Supervisory Auditors were streamlined by moving directors who had also had a hand in Committee Recommendation Committee Supervising Committee Members) business matters into executive business officer positions. This change has enabled the bank to further separate the supervision and execution Audit & functions of management as well as to allow the board of directors to Instruction Coordination Supervisory Executive Committee reach decisions more quickly. Committee Office Coordination Furthermore, we increased the number of outside directors in order to Auditing Division receive advice and gain insight from their independent perspectives. Auditing Committees Audit Currently, the board of directors is comprised of nine directors, ・Compliance Committee including five inside and four outside directors. By improving the ・ALM & Profit Management Headquarters, Consolidated Committee, etc. Branches Subsidiaries diversity of the board by increasing the percentage of outside directors, as well as through the introduction of knowledge-based and gender perspectives, we envisage free, open-minded, and constructive board room discussions.
Establishment of the Nomination and Remuneration committee
In June 2016, AOGIN established the Corporate Governance Committee, made up of outside directors and external experts. This group discusses general matters related to management from a broad perspective. Recently, matters related to nomination, remuneration and related matters were isolated from other corporate governance issues and the Nomination and Remuneration Committee was established as an advisory council to the board of directors on June 26, 2018. This committee, with more than 50% of its membership consisting of outside directors, discusses matters related to the nomination and remuneration of bank officers and offers proposals or suggestions to the full board. This process ensures management transparency.
Revising the organizational structure of the head office for corporate banking
AOGIN has revised the organizational structure of its head office. This reorganization was instituted in order to provide more comprehensive support based on the principle of putting the customer first. This revision also enables us to take advantage of our informational capabilities that deepen our understanding of our customers. We renamed the Corporate Banking Division. It is now the Business Support Division. This change demonstrates that the organization is working closely with customers to provide comprehensive customer support. By transferring the planning and solutions functions of the Credit Supervision Division to the Business Support Division, we are pursuing the goal of integrating the bank’s informational know-how functions. The Business Support Division will use the banking support system and other tools established in 2017 to engage in the development of information systems in order to ensure that robust proposals are set forth and to implement these proposals in order to enhance the financial well-being of our customers.
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Financial Highlights
Deposits Loans
The balance of total deposits, including negotiable deposit certificates, at The balance of total loans at the end of March 2018 was ¥1.7445 trillion (up the end of March 2018 was ¥2.5535 trillion (up 3.3% from the end of the 2.6% from the end of the previous term). This rise was due to the fact that previous term). This was because deposits from individual and corporate loans to SMEs within the prefecture and loans to customers, mainly customers had remained firm. housing loans, had remained firm. The balance of customer assets under custody at the end of March 2018 SME loans have steadily increased, with a ¥487.7 billion balance at the end was ¥254.6 billion (up 0.9% from the end of the previous term), due to an of March 2017 (up 4.6% year-on-year) increase in government bonds and despite a decrease in deposits from investment trusts.
Total balance of deposits Balance of loans Balance (¥100 million) Balance (¥100 million)
End of March 2016 End of March 2017 End of March 2018 End of March 2016 End of March 2017 End of March 2018
Balance of deposits from individual customers Balance of SME loans (excluding individual customer loans) Balance (¥100 million) Balance (¥100 million)
End of March 2016 End of March 2017 End of March 2018 End of March 2016 End of March 2017 End of March 2018
Balance of assets under custody Balance of customer loans Balance (¥100 million) Balance (¥100 million) Housing loan balance (¥100 million)
End of March 2016 End of March 2017 End of March 2018 End of March 2016 End of March 2017 End of March 2018
* The listed amounts have been rounded down to the indicated unit. The component ratios, rates of increase or decrease, and other percentages are rounded down to the indicated numeric values.
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Profit and Loss
The net business income from the Bank’s core businesses increased by ¥0.3 billion year-on-year to ¥5.8 billion. This was due, among other factors, to a decrease in expenditures, and despite a reduction in income from fund management that was a result of lower returns. On the other hand, ordinary profits declined by ¥1 billion year-on-year to ¥5.6 billion due to an increase in credit costs caused by a decrease in the reversal of the allowance for loan losses. Net income also decreased by ¥0.3 billion year-on-year to ¥4.2 billion.
Net business income from the Bank’s core businesses Net business income
Income from the bank's original business operations are a more accurate This is an indicator of the earning power of the Bank's core businesses, profit indicator. including deposits, loans, and foreign exchange transactions, etc.
Balance (¥100 million) Balance (¥100 million) End of Fiscal Year End of Fiscal Year End of Fiscal Year End of Fiscal Year End of Fiscal Year End of Fiscal Year March 2016 March 2017 March 2018 March 2016 March 2017 March 2018
Ordinary profits Net income
Net business incom derived by adding or subtracting gains or losses on Net income is derived by adding or subtracting extraordinary items, taxes, shares, etc., write-off costs etc. to or from ordinary profits.
Balance (¥100 million) Balance (¥100 million) End of Fiscal Year End of Fiscal Year End of Fiscal Year End of Fiscal Year End of Fiscal Year End of Fiscal Year March 2016 March 2017 March 2018 March 2016 March 2017 March 2018
Capital adequacy ratio Rating
The capital adequacy ratio at the end of March 2018 declined from the end The Japan Credit Rating Agency (JCR), an impartial and authoritative rating of the previous term by 0.47% to 9.35%. This was due to an increase in agency, assigned a high rating of A (Long-term Issuer Rating) to AOGIN for loans in addition to other reasons. However, it still continues to far exceed the Bank's high reliability record. (End of March 2018) the domestic standard of 4%.
Japan Credit Rating Agency (JCR)
Domestic standard: 4%
End of March 2016 End of March 2017 End of March 2018
* The listed amounts have been rounded down to the indicated unit. The component ratios, rates of increase or decrease, and other percentages are rounded down to the indicated numeric values.
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Share in Aomori Prefecture and Loan Assets
Share of deposits and loans in the prefecture Ratio of deposits and loans
(excluding Japan Post Bank Co., Ltd.) (End of March 2018) in Aomori Prefecture (End of March 2018)
Thanks to the strong support of our customers, we have maintained our The ratio of the Bank's deposits that originate from within Aomori position of holding the largest share of both deposits and loans within Prefecture is 96.0%. Most of these are deposits made by customers who Aomori Prefecture. This is the result of having retained the trust of our reside in Aomori Prefecture, our home region. Meanwhile, the ratio of loans customers since our foundation nearly 140 years ago. We will continue to made within Aomori Prefecture is 80.9%. strive to preserve that trust.
Shinkin Bank(cooperative regional financial institutions), and credit cooperatives Outside the prefecture (¥0.1002 trillion)
Ratio of deposits received in Aomori Deposit share Prefecture in Aomori AOGIN Within the prefecture Prefecture City banks, (¥2.4532 trillion) regional bank, second-tier Shinkin banks (cooperative regional banks Total balance of deposit ¥2.5535 trillion regional financial institutions), and credit cooperatives
For outside the prefecture (¥0.3314 trillion) Ratio of loans made outside Aomori Prefecture AOGIN Loan share For inside the prefecture City banks, in Aomori regional bank, Prefecture second-tier (¥1.4130 trillion) regional banks Balance of loans ¥1.7445 trillion ※Excluding Japan Post Bank, Labour Banks, Japan Agricultural Cooperatives and governmental financial institutions.
Claims disclosed subject to the Financial Securing claims disclosed under the terms of
Revitalization Law (End of March 2018) the Financial Revitalization Law (End of March 2018)
The amount of claims disclosed at the end of the term under review, subject Of the loans disclosed, excluding normal claims, 82.8% of the amount was to the Financial Revitalization Law, decreased by ¥3.1 billion from the end of secured by reserves, collateral, etc. the previous term to ¥22.5 billion. This was due to a decrease in doubtful claims. The ratio of the amount of loans disclosed against the overall credit provided declined by 0.21% from the end of the previous term to 1.27%. (Unit: ¥100 million)
Claims Secured Collateral Claims requiring supervision Doubtful claims Bankrupt claims balance amount coverage ratio Ratio of disclosed claims towards the balance of loans (Unit: ¥100 million)
Bankrupt and substantially bankrupt claims
Doubtful claims
Claims requiring supervision
Total End of March 2016 End of March 2017 End of March 2018
* The listed amounts are rounded down to the indicated unit. The component ratios, increase-decrease rates, and other percentages are rounded down to the indicated numeric values.
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Non-consolidated Financial Statements Non-consolidated Balance Sheets The Aomori Bank, Ltd. As of March 31, 2018 and 2017 Thousands of Millions of Yen U.S. dollars 2018 2017 2018
Assets
Cash and due from banks ¥292,377 ¥286,918 $2,752,044 Call loans - - - Monetary claims bought 2,512 2,448 23,648 Trading account securities 200 236 1,888 Investment securities 797,901 855,210 7,510,371 Loans and bills discounted 1,744,538 1,699,525 16,420,734 Foreign exchanges 1,565 1,202 14,731 Other assets 25,162 12,372 236,848 Tangible fixed assets 20,125 20,055 189,433 Intangible fixed assets 1,895 1,645 17,840 Prepaid pension cost 3,016 2,852 28,390 Customers' liabilities for acceptances and guarantees 17,505 17,124 164,773 Reserve for possible loan losses (7,675) (7,145) (72,243) Reserve for investment loss (2) (3) (26) Total assets ¥2,899,123 ¥2,892,442 $27,288,436 Liabilities and shareholders' equity Liabilities Deposits ¥2,389,528 ¥2,318,081 $22,491,796 Negotiable certificates of deposits 164,046 151,897 1,544,109 Call money 20,634 83,521 194,224 Payables under securities lending transactions - 5,164 - Borrowed funds 184,171 174,953 1,733,538 Foreign exchanges 28 10 268 Other liabilities 3,941 24,287 37,099 Reserve for employee's bonus 588 592 5,534 Reserve for reimbursement of deposit 550 615 5,179 Deferred tax liabilities 3,587 4,040 33,770 Deferred tax liabilities on land revaluation 1,593 1,648 14,999 Acceptances and guarantees 17,505 17,124 164,773 Total liabilities 2,786,175 2,781,937 26,225,294 Net assets Shareholder's equity Common stock 19,562 19,562 184,135 Capital surplus 12,916 12,916 121,577 Total retained earnings 61,868 58,795 582,345 Legal reserve 6,646 6,646 62,558 Appropriated retained earnings 49,000 46,000 461,219 Unappropriated retained earnings 6,222 6,149 58,568 Treasury stock (500) (494) (4,715) Total shareholder's equity 93,846 90,779 883,344 Valuation and translation adjustments Net unrealized gains (losses) on securities 16,584 17,112 156,100 Net deferred gains (losses) on hedging instruments (58) (3) (550) Revaluation reserve for land 2,423 2,495 22,811 Total valuation and translation adjustments 18,949 19,605 178,361 Stock option rights 152 119 1,435 Total net assets 112,948 110,504 1,063,141 Total liabilities and net assets ¥2,899,123 ¥2,892,442 $27,288,436
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Non-consolidated Income The Aomori Bank, Ltd. Years ended March 31, 2018 and 2017
Thousands of Millions of Yen U.S. dollars 2018 2017 2018
Income Interest on; Loans and discounts ¥17,837 ¥18,505 $167,895 Securities 8,844 8,980 83,249 Other 23 38 219 26,705 27,524 251,364 Fees and commissions 6,461 6,685 60,817 Other income 2,054 4,356 19,339 Total income 35,220 38,566 331,522 Expenses Interest on; Deposits 842 1,101 7,928 Borrowings and rediscounts - 10 - Other 167 307 1,577 1,009 1,419 9,505 Fees and commissions 4,971 5,142 46,796 General and administrative expenses 23,233 23,975 218,688 Other expenses 615 1,426 5,795 Loss on impairment of fixed assets 533 486 5,026 Total expenses 30,364 32,451 285,812
Income (Loss) before income taxes 4,856 6,115 45,709 Income taxes Current income taxes 880 1,753 8,287 Deferred income taxes (247) (250) (2,329) Total income taxes 633 1,503 5,958 Net income (Loss) ¥4,223 ¥4,612 $39,751
Yen Cents Net income (Loss) per share ¥207.27 ¥226.88 ¢195.09
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Non-consolidated Statements of Changes In Net Assets The Aomori Bank, Ltd. As of March 31, 2018 and 2017
Millions of yen Shareholder's equity Retained earnings Common Capital Total Treasury Legal Appropriated Unappropriated Total stock surplus retained retained retained stock reserve earnings earnings earnings Balances as of ¥19,562 ¥12,916 ¥6,646 ¥46,000 ¥6,149 ¥58,795 (¥494) ¥90,779 March 31,2017 Changes during the accounting period Dividends from surplus (1,222) (1,222) (1,222) Appropriated retained earnings 3,000 (3,000) Net Income 4,223 4,223 4,223 Purchase of treasury stock (9) (9) Disposal of treasury stock (0) (0) 3 3 Reversal of land 72 72 72 revaluation excess Changes other than Shareholders' equity (net) Total changes during ―――3,000 72 3,072 (6) 3,066 the accounting period Balances as of ¥19,562 ¥12,916 ¥6,646 ¥49,000 ¥6,222 ¥61,868 (¥500) ¥93,846 March 31,2018
Thousands of U.S. dollars Shareholder's equity Retained earnings Common Capital Total Treasury Legal Appropriated Unappropriated Total stock surplus retained retained retained stock reserve earnings earnings earnings Balances as of $184,135 $121,577 $62,558 $432,981 $57,882 $553,422 ($4,657) $854,479 March 31,2017 Changes during the accounting period Dividends from surplus (11,507) (11,507) (11,507) Appropriated retained earnings 28,237 (28,237) Net Income 39,751 39,751 39,751 Purchase of treasury stock (92) (92) Disposal of treasury stock (2) (2) 34 31 Reversal of land 681 681 681 revaluation excess Changes other than Shareholders' equity (net) Total changes during ―――28,237 685 28,923 (58) 28,865 the accounting period Balances as of $184,135 $121,577 $62,558 $461,219 $58,568 $582,345 ($4,715) $883,344 March 31,2018
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Non-consolidated Statements of Changes In Net Assets The Aomori Bank, Ltd. As of March 31, 2018 and 2017
Millions of yen Valuation and translation adjustments Net Deferred Revaluation Stock option unrealized gains(losses) Total net assets reserve Total rights gains(losses) on hedging for land on securities instruments Balances as of ¥17,112 (¥3) ¥2,495 ¥19,605 ¥119 ¥110,504 March 31,2017 Changes during the accounting period Dividends from surplus (1,222) Appropriated retained earnings Net Income 4,223 Purchase of treasury stock (9) Disposal of treasury stock 3 Reversal of land 72 revaluation excess Changes other than (528) (55) (72) (656) 32 (623) Shareholders' equity (net) Total changes during (528) (55) (72) (656) 32 2,443 the accounting period Balances as of ¥16,584 (¥58) ¥2,423 ¥18,949 ¥152 ¥112,948 March 31,2018
Thousands of U.S. dollars Valuation and translation adjustments Net Deferred Revaluation Stock option unrealized gains(losses) Total net assets reserve Total rights gains(losses) on hedging for land on securities instruments Balances as of $161,075 ($32) $23,493 $184,536 $1,127 $1,040,143 March 31,2017 Changes during the accounting period Dividends from surplus (11,507) Appropriated retained earnings Net Income 39,751 Purchase of treasury stock (92) Disposal of treasury stock 31 Reversal of land 681 revaluation excess Changes other than (4,975) (518) (681) (6,175) 308 (5,866) Shareholders' equity (net) Total changes during (4,975) (518) (681) (6,175) 308 22,998 the accounting period Balances as of $156,100 ($550) $22,811 $178,361 $1,435 $1,063,141 March 31,2018 (*) The non-consolidated financial statements presented herein are expressed in yen and, solely for the convenience of the reader, have been translated into United States dollars at the rate of ¥ 106.24= U.S.$1, the prevailing rate as of March 31, 2018. This translation should not be construed as a representation that all the amounts shown could be converted into U.S. dollars.
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Board of Directors and Executive Officers (as of June 26, 2018)
▶Chairman ▶Directors / Audit & Supervisory Committee Members Satoshi Hamaya Katsuhiro Ogasawara Norihisa Ishida ▶President Toshisada Kushibiki Susumu Narita Mie Ishida
▶Directors / Senior Managing Executive Officers ▶Managing Executive Officers Akihiro Kawamura Tomohiko Sasaki Hitoshi Takeuchi Keitaro Ishikawa Satoru Ishibashi ▶Directors Tsuyoshi Tamura Naotake Atsumi ▶Executive Officers Tsutomu Shikanai Yo Mori Akira Nakagawa Takahiro Kudo Daisuke Yatsu
Organization (as of June 26, 2018)
General Meeting of Shareholders Regional Headquarters General Planning Division Public Relations Office Tokyo Liaison Office
Board of Directors Risk Administration Division Audit & Surpervisory Committee Legal & Compliance Office Business Administration Division Customer Relation Office Financial Products Management Office Business Support Division Executive Committee Regional Development Division Public Services Business Office Credit Supervision Division Treasury & International Division Personnel Division Women's Empowerment Office System Development Division Operations Administration Division Operations Office General Affiars Division Auditing Division Operations Auditing Office Audit & Supervisory Committee Office
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Corporate Data (as of March 31, 2018)
▶Company Name The Aomori Bank, Ltd.
▶Head Office 9-30, Hashimoto 1-chome, Aomori 030-0823, Japan
▶Web URL https://www.a-bank.jp/
▶Date of Establishment October 1, 1943
▶Date of Foundation January 20, 1879
▶Number of Employees 1,326
▶Number of Offices 100
▶Paid-in Capital 19,562 million yen
▶Number of Outstanding Shares 20,512 thousand shares
▶Total Assets 2,899.1 billion yen
▶Loans and Bills Discounted 1,744.5 billion yen
▶Capital Adequacy Ratio 9.35% (Domestic Standards)
▶Credit Rating A (Japan Credit Rating Agency, Ltd.)
AOGIN Annual Report 2018
Issued on October 2018 The Aomori Bank, Ltd. 9-30, Hashimoto 1-chome, Aomori 030-0823, Japan telephone number: 017-777-1111 fax number: 017-777-1006
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