AOGIN Annual Report 2019
The Aomori Bank, Ltd.

AOGIN Annual Report 2019

AOGIN Annual Report 2019
ProﬁleAomori Bank has been serving its customers for 140 years and is known
aﬀectionately in the area as “AOGIN"
The Aomori Bank, Ltd. has engaged in sound business management practices since its founding in 1879. In
1943, ﬁve banks based in Aomori Prefecture merged to form the present-day Aomori Bank. Since this time,as the region's leading ﬁnancial institution, we have continued to show strong growth. In April 2019, we
formulated our 16th 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.
The Aomori Bank, Ltd.

●Company Name

●Date of Establishment●Paid-in Capital

October 1, 1943

19,562 million yen●Loans and Bills Discounted●Head Oﬃce

9-30, Hashimoto 1-chome, Aomori 030-0823, Japan●Date of Foundation

January 20, 1879

●Number of Outstanding Shares

1,762.4 billion yen●Number of Employees

20,512 thousand shares●Capital Adequacy Ratio

1,313●Total Assets

9.31% (Domestic Standards)●Web URL

https://www.a-bank.jp/●Number of Oﬃces

97 head oﬃces and branches

3,031.5 billion yen●Credit Rating

A (Japan Credit Rating Agency, Ltd.)

Contents▼Greeting …………………………………………………… 1▼Financial Highlights ………………………………… 9〜10

▼The 16th Medium-Term Business Plan …………… 2▼Non-consolidated Financial Statements ………… 11▼140th Anniversary Memorial Project ………… 3〜4▼Consolidated Financial Statements …………………… 12▼AOGIN s CSR Initiatives ………………………… 5〜7▼Shareholder Special Beneﬁt Plan ………………… 13▼Share in Aomori Prefecture and Loan Assets ……… 8▼Stock Information ……………………………………… 14

Greeting
I would like to sincerely thank all you stakeholders for your continued support of Aomori Bank, Ltd.
We present the "AOGIN NOW: A Brief Disclosure Document for the Year Ended March 2019," and invite you to read thisbooklet to further deepen your understanding of the bank.
We celebrated our 140th anniversary on January 20, 2019. I took this occasion to thank every one of the valued
customers in our community. As we enter the new Reiwa era, we will continue to commit to a bank managementfounded on our corporate philosophy of "working for the community, together with customers, and respecting people."
April 2019 marked the launch of the 16th medium-term business plan, "Change the Future." The environment in which
the bank must operate is changing rapidly. Social issues such as depopulation, a declining birthrate and an aging
population, the rapid progress of digitization, and prolonged monetary easing policies are all issues with which we must
contend. To achieve sustained growth amidst these conditions, we must continue to be a bank that works closely withthe community and its customers to earn their trust.
Recognizing this, we have created the 16th medium-term business plan to implement the changes necessary in our
pursuit of a bright and happy future for our community, customers, employees, and the bank itself. During the three
years of this business plan, we intend to transform our business model to create genuine shared value.
In order to better grasp the issues aﬀecting the community and our customers and to contribute to their resolution, theAomori Bank Group will muster the strength and resources of the entire group and transform it into a consulting bankthat moves beyond the framework of conventional banks to sincerely contribute to the development the local economy
and to ensure a sustainable foundation for our business.
Finally, I sincerely ask for your continued support and loyalty.

Susumu Narita, President

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AOGIN Annual Report 2019

The 16th Medium-Term Business Plan

The 16th Medium-TermBusiness Plan

〜Change the Future〜

Three Years that will Genuinely Change the Future of our Community, our Customers, theBank, and Our Employees
Community / Customers

Bank

Employees

Conﬁdence of the community andcustomers to consult with AOGIN
ﬁrst and expect good results

Aim of becoming a consulting
group that operates beyond theframework of conventional banks

An active, exciting and energetic
workplace culture[Plan Period] April 2019 to March 2022

VisionBe the Only One Consulting Bank that creates an aﬄuent and happy
future together with the community and our customers

Basic Strategies

Ⅰ.Practice community- and consumer-ﬁrst consulting
Ⅱ.Improve human resource andorganizational capabilities

Ⅲ.Enact business reforms

Management Targets
Non-consolidated net
incomeConsolidated net
incomeRate of non-interest
incomeConsolidated return on
equity (ROE)

3.0 billion or above

3.2 billion or above

15 ％ or above

3 ％ or above(during the plan period)

1.
2.
3.

(during the plan period)(FY2021)(FY2021)*5% from a medium- to long-term
perspective

Number of new consulting
clients in the prefecture+1,500 or above(cumulative total during theplan period)

Rate of non-interest income = (Core gross business proﬁt - Net interest income) / Core gross business proﬁt * Non-consolidated basis
ROE = Net income / Shareholders' equity
The number of new consulting clients in the prefecture is the total of the "Net increase in the number of debtors in the prefecture as of the end ofﬁscal 2018" and the "Non-debtors in the prefecture that concluded a solution agreement with the bank (including Group companies)."2

AOGIN Annual Report 2019

140th Anniversary Memorial Project̶For a "thank you" from the future̶
The Aomori Bank, Ltd. celebrated the 140th
anniversary of its foundation on January 20, 2019.
To mark this occasion, we have been developing
a multi-faceted 140th Anniversary Memorial
Project under the slogan "For a 'thank you'from the future." This encompasses our desire"to continue to be a bank appreciated withthe words 'Thank you for your help back then'by demonstrating our true consulting
functions that focus on the future."

Creating the "140th Anniversary Memorial Filｍ"

We have produced a memorial ﬁlm, "The 140-Year Path of the Aomori Bank: Aiming to Become the Only One Bank in Aomori Prefecture." This ﬁlm oﬀers a brief
history of the 59th National Bank one of the forebears of the Aomori Bank, founded in January 1879, and then continues on to the Aomori Bank of today.
We use this ﬁlm, for the training of new bank employees to help them understand the roots of our bank and the important role it has played in Aomori
Prefecture.

To View our Film

"For a 'thank you' from the future" can be viewed on our oﬃcial YouTube channel. The ﬁlm features real customers who work in a multitude of ﬁelds in Aomori
Prefecture. It was aired on television through the end of April 2019.

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AOGIN Annual Report 2019

Organizing Visiting Lectures on FinanceAs part of our CSR educational outreach program, AOGIN oﬀers visiting lectures on ﬁnance to local high school students. Looking ahead to an age where
adulthood has been conferred on 18-year olds and with the aim of promoting the independence of young adults by helping them to develop ﬁnancial literacy,
we provide visiting lectures on three themes: managing a company and the ﬂow of money, the characteristics of credit cards and electronic money and how abank works. The content of the lectures can also be tailored to the course of study of the students attending the lecture.

Broadcasting a TV Program, "Aomori Poem"

We produced a television series, "Aomori Poem-People stepping toward their dreams with a smile," broadcast on Aomori TV every Sunday night from January
through June 2019. Episodes featured customers striving to meet their individual dreams. The main themes included “starting a business,” “operating a new
business,” and “business succession.”

Other Memorial Projects● Launching the oﬃcial Aomori Bank YouTube channel◆History of the Aomori Bank◆● Launching the oﬃcial Aomori Bank Facebook

account● Launching the oﬃcial Aomori Bank blog (aomo blog)

January 1879

The 59th National Bank (a forbearer of the present Aomori
Bank) is founded in Hirosaki City

September 1897

The 59th National Bank converts to an ordinary bank andbecomes The 59th Bank, Ltd.

October 1943

The 59th Bank, Tsugaru Bank, Itayanagi Bank, Hachinohe Bank, andthe former Aomori Bank merge to form The Aomori Bank, Ltd.

July 1970

Construction of the new head oﬃce is completed. The former
head oﬃce is donated to Aomori Prefecture and is turned into
the Aomori Prefectural Museum.

● Holding a memorial dialogue between Aomori

Governor Shingo Mimura and Aomori Bank
President Susumu Narita● Updating the bankbook and cash card design● Visiting customers● Holding a lecture on the economy with The Aomori

Institute of Regional Studies (as its 40th anniversary
memorial project) as a co-sponsor.
●Main sponsor of a Nobuyuki Tsujii concert

October 1973
March 1975

Listed in the Second Section of the Tokyo Stock Exchange
Elevated to a listing in the First Section of the Tokyo Stock Exchange

December 1998

Construction of the head oﬃce annex is completed.

September 2010

Starts handling aomo, a credit card issued by the Aomori Bank

January 20194

Marks the 140th anniversary of foundationAOGIN Annual Report 2019

AOGIN's CSR Initiatives
Please visit the following URL for our CSR report (Aomori Bank website → About Aomori Bank → CSR Initiatives)
https://www.a-bank.jp/contents/guide/aboutabank/csr/report/index.html

Creation of the FutureEver since our founding, we at AOGIN have maintained a hope for the “enduring development of Aomori Prefecture and theopportunity to grow with it together." Going forward, we will continue to engage with all of our stakeholders and generate mutual
value for the future, while also coming to grips with environmental, social, economic, and other issues that aﬀect our region.

<AOGIN CSR> Activity Policies
Under the <AOGIN CSR> Activity Policies, AOGIN aims to create mutual value with our stakeholders.

Naturalenvironment[Activity Policy 1] Pass the wealth of our hometown on to future generations[Activity Policy 2] Contribute to sustainable growth of the local community

Local
community

Customers

AomoriBank[Activity Policy 3] Help our stakeholders build their future[Activity Policy 4] Create a fulﬁlling workplace[Activity Policy 5] Improve corporate value

Employees

Shareholders/
Investors

Our Approach to ESG and the SDGs
(1) AOGIN recognizes the importance of initiatives for tackling environmental, social and governance issues (ESG)and consider these to be of the utmost importance. We are committed to actively promoting ESG and SDGs
through our business activities (CSR ) that also aim to create mutual value.
(2) AOGIN provides ESG information in our CSR Report (on our website). However, we use SDGs, which are aframework common to countries throughout the world, when discussing social sustainability.

Activity Policy 1: Pass the wealth of our hometown on to future generations
Introduction of a new material (LIMEX) to the business cards of executives and employees to conserve water resources
In January, as part of our CSR agenda, we changed the material used for some of the business cards used by our executives and employees from paper to
LIMEX*. Business cards made of LIMEX, which does not use water or wood as the raw material, are said to save approximately 10 liters of water per 100
units and contribute to SDG Goal 6: Clean Water and Sanitation.
* LIMEX: A new material developed and manufactured by TBM Co., Ltd., LIMEX is a molded mixture of plastic material such as polypropylene and limestone (mainly calcium
carbonate). Grocery bags, garbage bags and the like made of LIMEX was presented at COP24 (The 24th Session of the Conference of the Parties to the United Nations Convention on
Climate Change) held in December 2018, and the material is drawing increasing international SDG attention.

Introduction of a road-marking paint (shell marker) as an eﬀective use for scallop shells
In May 2019, we used Shell Marker*, a paint created by recycling scallop shells, to mark the white lines in our Yaeda Branch parking lot in Aomori City. The
scallop industry is one of Aomori Prefecture's key industries, but the disposal of the large volume of shells and other material discharged after processing
is a community issue due the impact on the environment and disposal costs. Shell Marker is an eco-friendly composite made by recycling scallop shells
and performs as well as conventional products. This contributes to the reduction of industrial waste as well as the protection of the natural environment.
Using Shell Marker contributes to the United Nations SDG Goal 12: Responsible Consumption and Production.
* Shell Marker: A product approved for the "Let's Buy Aomori's New Product" program promoted by Aomori Prefecture. Manufacturer: Daikan-kogyo Corporation (President: Akira
Osaka; Aomori City)

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AOGIN Annual Report 2019

Activity Policy 2: Contribute to sustainable growth of the local community
Conclusion of a business cooperation agreement with the Aomori Tourism Federation
In March 2019, we signed a business cooperation agreement with the Aomori Tourism
Federation, with the aim of stimulating the economy through tourism. Under thisagreement, we will be leveraging the knowledge and human resources of both parties toenrich the content of regional tourism and boost support for local tourism-related business
operators.
Our ﬁrst cooperative project involves improvements in the aesthetic appeal ofaccommodation facilities and eﬀorts to enhance their added value. Since April 2019, in a
two-year program, we have been dispatching a management consultant specializing in theaccommodation sector to hotels and other lodgings in the prefecture.

Initiative to have Jomon Period Archeological Sites in Hokkaido/Northern Tohoku registered as
World Heritage sites through a social contribution-type shareholder beneﬁt planIn support of the initiative to have the Jomon Period archeological sites in Hokkaido/Northern Tohoku
registered as a World Heritage site, we have introduced a social contribution-type shareholder beneﬁt plan
beginning in ﬁscal 2018.
Speciﬁcally, we added an item that enables shareholders to donate to the "Association to Have Jomon
Period Archeological Sites in Aomori Prefecture Registered as World Heritage Sites" to the Breeze Course
listed in the shareholder beneﬁt plan catalog issued by the AOGIN Yu-Yu Club. By opting for this item, theshareholder can donate 3,000 yen, which is equivalent to the value of the annual gift that is oﬀered to
AOGIN shareholders.
In January 2019, we presented the donations for ﬁscal 2018 that were received from our shareholders from both
inside and outside the prefecture. The donations will be used for activities to promote UNESCO World Heritage
status for these Jomon Period sites in Hokkaido/Northern Tohoku.
* The Association to Have Jomon Period Archeological Sites in Aomori Prefecture Registered as World Heritage Sites (Representative: Keiichiro Wakai, President of the Federation of
the Aomori Chamber of Commerce and Industry)
Established by the Federation of Aomori Chambers of Commerce and Industry, Aomori UNESCO Association, etc. in September 2016,
an organization that promotes activities to have Jomon Period archeological sites in Hokkaido/Northern Tohoku registered as World Heritage sites.

Activity Policy 3: Help our stakeholders build their future
Launch of a service for real-time account transfer to merpay.
In February 2019, we launched a real-time account transfer service*. This service enables users tocharge directly from their AOGIN savings account to merpay, a smartphone payment service
oﬀered by Merpay, Inc.
Individual customers who have an AOGIN savings account cash card can charge directly to merpay
to make payments using the mercari ﬂea market app or at stores or other organizations that use theiD contactless payment service.
In addition, AOGIN also provides a real-time account transfer service for Rakuten Edy, LINE Pay,
Origami Pay and Yahoo! Wallet. The addition of merpay enhances the convenience for consumers who prefer cashless payments.
* Real-time account transfer service: a service for making account transfers in real time for each request on a 24 hour, 365-day-a-year basis (excluding service suspension periods).

6

AOGIN Annual Report 2019

Activity Policy 4: Create a fulﬁlling workplace
Implementation of the Fitness Leader Development Program
To promote employee health awareness, we have been running the Fitness Leader Development Program
since 2015. This program is managed by the Aomori Medical Association and the Health Capability
Enhancement Center.
Forty-ﬁve employees, mainly deputy heads of the head oﬃce and sales branches, attended the fourth
session of the program that took place in October 2018. This session deepened their health awareness byoﬀering bone density, body composition and other health checks as well as lectures on health education,
exercise and nutrition.
Those who have completed the program have been conducting ﬁtness activities in their oﬃces as Fitness
Leaders.

The Fitness Leaders take the lead in promoting
ﬁtness in the community, school, and workplaces
designated by the Center.

<AOGIN> Mom's Meeting
In March 2019 we held our <AOGIN> Mom's Meeting, an information exchange meeting for employees
who have returned from childcare leave.
The ﬁrst <AOGIN> Momʼs Meeting was held in June 2017 as part of the AOGIN Women's Active Program.
During this second meeting, eight female employees with children under the age of three oﬀered theirperspectives on and exchanged information about how they have handled work at the oﬃce following
their return from childcare leave and about childcare in general.
This purpose of this meeting is to help alleviate the concerns and lighten the psychological burden of theseworking mothers by making it possible for them to talk with other bank employees who share the same
experiences. Going forward, we will continue to hold these meetings from time to time to oﬀer working
mothers an opportunity to connect with one another.

Activity Policy 5: Improve corporate value
Response to prevent money laundering and terrorism ﬁnancing
Taking measures to prevent money laundering and the ﬁnancing of terrorist activities are among our most critical management issues. We also recognize theneed to strengthen our capacity to do so. We are therefore working to reinforce our internal management framework in order to ensure that money
laundering and other illegal activities are, in accordance with the Act on Prevention of Transfer of Criminal Proceeds and the Foreign Exchange and Foreign
Trade Act (the Foreign Exchange Law), prevented.
Furthermore, to clarify our procedures, we established a Money Laundering and Terrorist Financing Prevention Policy on October 1, 2018 and periodically holdin-house training sessions on money laundering. The aim of these sessions is to improve the understanding of those preventative practices in the daily
operations of the bank, such as bank transfers and account opening, that prevent money laundering as well as to enhance the Bank's eﬀectiveness in this ﬁeld.
Moreover, as of September 18, 2018, we have tightened our measures against money laundering and the like by no longer accepting foreign remittancetransactions that use cash as the source of the funds. Doing so ensures that economic sanctions are implemented in accordance with Japan's Foreign
Exchange Law as well as the laws related to economic sanctions in other countries.
To halt the ﬂow of funds to criminal and terrorist organizations and to maintain safe and convenient ﬁnancial services, we will continue to strengthen oureﬀorts to prevent money laundering and related activities.

7

AOGIN Annual Report 2019

Share of Loans and Assets in Aomori Prefecture
Share of deposits and loans in the prefecture

Ratio of deposits and loans
in Aomori Prefecture(End of March 2019)(End of March 2019)

Thanks to the strong support of our customers, we have maintained the

The Bank's ratio of deposits within Aomori Prefecture was 96.1%, most of

top share in both deposits and loans in Aomori Prefecture. This is the result

which were made by customers in Aomori Prefecture, our home region.

of having retained customer trust for the nearly 140 years since ourMeanwhile, the ratio of loans made in Aomori Prefecture was 80.6%.

founding. We will continue to strive to be a trusted bank．

deposits

Shinkin Bank(cooperative regional ﬁnancial
institutions), and credit cooperatives

From outside the prefecture(¥99.9 billion)

18.3%

City banks,regional bank,second-tierregional banks

Shinkin banks (cooperative
regional ﬁnancial institutions),
and credit cooperatives

Ratio of deposits
received in Aomori
Prefecture

AOGIN
44.9%

Share of deposits
in AomoriPrefecture

96.1%(¥2,515.0 trillion)

Total balance of deposit ¥2,615.0 trillion

36.7%

loans

For outside theprefecture(¥341.8 billion)

13.3%

City banks,regional bank,second-tierregional banks

From inside the prefecture

AOGIN
46.0%

Ratio of loans
made in Aomori
Prefecture

Share of loans
in AomoriPrefecture

For inside the prefecture

80.6%(¥1,420.5 trillion)

40.6%

Balance of loans ¥1,762.4 trillion※Excluding Japan Post Bank Co., Ltd., workers' credit
unions, agricultural cooperative associations, andgovernment ﬁnancial institutions

Claims disclosed subject to the Financial
Revitalization Law(End of March 2019)

Securing claims disclosed subject to the
Financial Revitalization Law(End of March 2019)

The amount of loans that were disclosed subject to the Financial Revitalization

Of the amount of loans disclosed, excluding performing claims, 86.2%

Law at the end of the term under review decreased by ¥5.3 billion from the end of

were secured by reserves, collateral, etc.

the previous term to ¥17.2 billion. This change was due to a fall in doubtful claims.
The ratio of the amount of loans disclosed against the overall credit
provided declined by 0.31% from the end of the previous term to 0.96%.

Claims requiring supervision(Unit: ¥100 million; %)ClaimsbalanceSecuredamountCollateralcoverage ratio

Bankrupt andsubstantiallybankrupt claims

38

38

100.0

Doubtful claims

103

90

88.0

103

Claims requiringsupervision

30

19

63.1

Total

172

148

86.2

Doubtful claims

Bankrupt claims

Ratio of disclosed claims towards the balance of loans(Unit: ¥100 million; %)

1.48%
1.27%
257
49

157

0.96%
225
27

172
30

162

50

35

38

End of March2017

End of March2018

End of March
2019* The listed amounts are abbreviated to the indicated unit. The component ratios, rates of increase or decrease, and other percentages are abbreviated to the indicatednumeric values.

8

AOGIN Annual Report 2019

Financial Highlights
Deposits

Loans

The balance of total deposits, including negotiable deposit certiﬁcates, at

The balance of total loans at the end of March 2019 was ¥1.762.4 trillion

the end of March 2019 was ¥2,615.0 trillion (up 2.4% from the end of the(up 1.0% from the end of previous term). This rise was due to loans to SMEs

previous term). This was mainly due to deposits from retail customers

in the prefecture and customer loans, mainly housing loans, remaining

remaining ﬁrm.

ﬁrm.

The balance of customers' assets under custody at the end of March 2019was ¥258.1 billion (up 1.3% from the end of previous term), due to anincrease in personal pension insurance, etc.

Total balance of deposits

Balance of loans
Balance (¥100 million)

Balance (¥100 million)
18,00027,00026,00017,00016,99525,53525,00017,624

17,445

26,15024,69916,00024,0000
End of March 2017

End of March 2018

End of March 2019

End of March 2017

Balance of deposits from individual customers

End of March 2018

Balance of SME loans (excluding customer loans)

Balance (¥100 million)

Balance (¥100 million)

17,0005,500

16,743

5,326

5,239

16,451
16,000End of March 201916,218

5,000

4,877
15,0004,500

00End of March 2017

End of March 2018

End of March 2019

End of March 2017

Balance of assets under custody

End of March 2019

Balance of customer loans
Balance (¥100 million)

Balance (¥100 million)

2,600

2,500

End of March 2018

Housing loan balance (¥100 million)

4,500

2,523

2,546

4,399

2,581
4,000

4,046
3,717

2,400
3,500

3,914

3,595

2,300

3,305
0

0
End of March 2017

End of March 2018

End of March 2019

End of March 2017

End of March 2018

End of March 2019

* The listed amounts are abbreviated to the indicated unit. The component ratios, rates of increase or decrease, and other percentages are abbreviated to the indicatednumeric values.

9

AOGIN Annual Report 2019

Proﬁt and Loss
The net proﬁt from the bankʼs core business decreased by ¥1.2 billion year-on-year to ¥4.5 billion. This was due to a reduction in fund management income
such as interest on securities, a result of lower returns, etc. This was in spite of an increase in net income that resulted from increased commissions.
Meanwhile, ordinary proﬁt declined by ¥0.9 billion year-on-year to ¥4.7 billion due to a decrease in the reversal of the allowance for loan gains and losses andgains on stock transactions. Net income also declined by ¥0.9 billion year-on-year to ¥3.2 billion.

Net business income from the Bankʼs core businesses

Net business income

This is a more accurate indicator than others of proﬁt from the Bank's coreThis is an indicator of earning power from the Bank's core business,business.

including deposits, loans, and currency exchange business, etc.
100

100

75

75

50

54

58

50

45

25
Balance (¥100 million)

39

41

40

End of Fiscal Year
March 2017

End of Fiscal Year
March 2018

End of Fiscal Year
March 201925
Balance (¥100 million)0
End of Fiscal Year
March 2017

End of Fiscal Year
March 20180

End of Fiscal Year
March 2019

Ordinary proﬁt

Net income

Net operating proﬁt derived by adding or subtracting a gain or loss on

Net income is derived by adding or subtracting extraordinary items, taxes,

shares, etc., bad loan write-oﬀ costs, etc.

etc. to ordinary proﬁt.
100

100

75

75
50

67
56

50

47

46
25

25
Balance (¥100 million)

Balance (¥100 million)0
End of Fiscal Year
March 2017

End of Fiscal Year
March 2018

End of Fiscal Year
March 2019

42
32

0
End of Fiscal Year
March 2017

End of Fiscal Year
March 2018

End of Fiscal Year
March 2019

Capital adequacy ratio

RatingAlthough the capital adequacy ratio at the end of March 2019 declined by

The Japan Credit Rating Agency, an objective and authoritative rating

0.04% from the end of the previous term to 9.31% owing to an increase inagency, assigned a high rating of A (Long-term Issuer Rating) to AOGIN due

loans and other reasons, it still continues to far exceed the domestic

to the Bank's exceptional record of reliability and security.

standard of 4%.

(End of March 2019)

12.00
10.00

10.56％
9.82％

10.08％
9.35％

10.05％
9.31％

8.00

Japan Credit Rating
Agency (JCR)

Non-consolidated

Consolidated

6.00

Domestic
standard: 4%

4.00
2.00
0.00

End of March2017

End of March2018

End of March
2019* The listed amounts are abbreviated to the indicated unit. The component ratios, rates of increase or decrease, and other percentages are abbreviated to the indicatednumeric values.

10

AOGIN Annual Report 2019Non-consolidated Financial Statements
Non-Consolidated Balance Sheets The Aomori Bank, Ltd.
As of March 31, 2019and 2018
Millions of Yen

Thousands of
U.S. dollars
2019

2019

2018

¥381,633
2,555
820,9121,762,405
1,359
27,50020,5291,859
3,100¥292,3772,512
200
797,901
1,744,538
1,565
25,162
20,125
1,895
3,016$3,438,453
23,022
7,396,271
15,878,959
12,251
247,773
184,965
16,75016,75016,154(6,466)(7)¥3,031,536

17,505(7,675)(2)¥2,899,123

145,547(58,259)(63)$27,313,604¥2,433,689
181,366
13,793
1,629
259,370
59
7,128
582
176
528
3,234
1,557
16,1542,919,270¥2,389,528
164,046
20,634
184,171
28
3,941
588
550
3,587
1,593
17,5052,786,175$21,927,108
1,634,077
124,276
14,6782,336,877
537
64,222
5,243
1,593
4,765
29,145
14,031
145,547
26,302,106

19,562
12,916
63,972
6,646
52,0005,326(875)
95,576

19,562
12,916
61,8686,646
49,0006,222(500)93,846

176,255
116,374
576,383
59,880468,51047,991(7,886)
861,127

16,213(1,881)
2,356
16,689112,266¥3,031,536

16,584(58)
2,423
18,949152
112,948¥2,899,123

146,084(16,948)
21,233
150,370
1,011,497$27,313,604

AssetsCash and due from banks
Monetary claims bought
Trading account securities
Investment securities
Loans and bills discounted
Foreign exchanges
Other assets
Tangible fixed assets
Intangible fixed assets
Prepaid pension cost
Customers' liabilities for
acceptances and guarantees
Reserve for possible loan losses
Reserve for investment loss
Total assets
Liabilities and shareholders' equity
Liabilities
Deposits
Negotiable certificates of deposits
Call money
Payables under securities lending transactions
Borrowed funds
Foreign exchanges
Other liabilities
Reserve for employee's bonus
Reserve for stock benefits
Reserve for reimbursement of deposit
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Acceptances and guarantees
Total liabilities
Net assets
Shareholder's equity
Common stock
Capital surplus
Total retained earnings
Legal reserve
Appropriated retained earnings
Unappropriated retained earnings
Treasury stock
Total shareholder's equity
Valuation and translation adjustments
Net unrealized gains (losses) on securities
Net deferred gains (losses) on hedging instruments
Revaluation reserve for land
Total Vauluation and translation adjustments
Stock option rights
Total net assets
Total liabilities and net assets

11

AOGIN Annual Report 2019Non-consolidated Income The Aomori Bank, Ltd.
Years ended March 31, 2019 and 2018
Thousands of
U.S. dollars
2019

Millions of Yen
2019
IncomeInterest on;
Loans and discounts
Securities
Other
Fees and commissions
Other income
Total income
Expenses
Interest on;
Deposits
Other
Fees and commissions
General and administrative expenses
Other expenses
Loss on impairment of fixed assets
Total expenses

2018¥17,456
7,813
25
25,295
6,814
1,755
33,864¥17,8378,844
23
26,7056,461
2,054
35,220$157,284
70,394226
227,905
61,394
15,813
305,112

615
261
877
4,058
23,459986
9829,480

842
167
1,009
4,971
23,233615
533
30,364

5,549
2,360
7,909
36,568211,3638,884
884
265,610

Income (Loss) before income taxes
Income taxes
Current income taxes
Deferred income taxes
Total income taxes
Net income (Loss)

4,384

4,856

39,502

556
561
1,117
¥3,266

880
(247)
633
¥4,223

5,009
5,061
10,071$29,431

Net income (Loss) per shareYen¥160.89¥207.27

Cents￠144.95

12

AOGIN Annual Report 2019Non-consolidated Statements of Changes In Net Assets The Aomori Bank, Ltd.
As of March 31, 2019 and 2018
Millions of yen
Shareholder's equity
Retained earnings
Commonstock
Balances as ofMarch 31, 2018
Changes during theaccounting period¥19,562

CapitalsurplusLegalreserve¥12,916¥6,646

Total¥49,000¥6,222¥61,868(1,222)(1,222)(1,222)3,000(3,000)
3,266

3,266

3,266

(7)

(7)

67

67

Net Income
Purchase of treasury stock
Disposal of treasury stockReversal of land
revaluation excess
Changes other thanShareholders' equity (net)Total changes during
the accounting period
Balances as ofMarch 31, 2019

Treasurystock

Unappropriatedretainedearnings

Dividends from surplus
Appropriated retained earnings

Total
retainedearnings

Appropriatedretainedearnings(¥500)¥93,846

(420)

(420)

45

38
67

―

―

―

3,000

(895)

2,104

(374)

1,730

¥19,562¥12,916¥6,646¥52,000¥5,326¥63,972(¥875)¥95,576

Thousands of US. dollars
Shareholder's equity
Retained earnings

Balances as ofMarch 31, 2018
Changes during theaccounting period

Commonstock

Capitalsurplus$176,255$116,374

Legal
reserve$59,880

Total$441,481$56,061$557,423(11,016)(11,016)(11,016)

27,029(27,029)
29,431

29,431

29,431

(65)

(65)

610

610

Net Income
Purchase of treasury stock
Disposal of treasury stockReversal of land
revaluation excess
Changes other thanShareholders' equity (net)Total changes during
the accounting period
Balances as ofMarch 31, 2019

Treasurystock

Unappropriatedretainedearnings

Dividends from surplus
Appropriated retained earnings

Total
retainedearnings

Appropriatedretainedearnings($4,513)$845,540(3,785)(3,785)

412

346
610

―

―

―

27,029(8,069)18,959(3,372)

15,587$176,255$116,374$59,880$468,510$47,991$576,383($7,886)$861,127

13

AOGIN Annual Report 2019Non-consolidated Statements of Changes In Net Assets The Aomori Bank, Ltd.
As of March 31, 2019 and 2018
Millions of yen
Valuation and translation adjustments
Net
Deferred
Revaluation
unrealized gains(losses)
reservegains(losses) on hedging
for landon securities instruments
Balances as ofMarch 31, 2018
Changes during theaccounting period¥16,584(¥58)¥2,423

Total¥18,949

Stock option
rightsTotal net assets¥152¥112,948

Dividends from surplus(1,222)

Appropriated retained earnings
Net Income

3,266

Purchase of treasury stock(420)

Disposal of treasury stock38

Reversal of land revaluation excess

67

Changes other thanShareholders' equity (net)Total changes during
the accounting period
Balances as ofMarch 31, 2019(370)

(1,822)(66)(2,259)(152)(2,412)(370)(1,822)(66)(2,259)

(152)

(682)

¥16,213(¥1,881)¥2,356¥16,689-¥112,266

Thousands of US. dollars
Valuation and translation adjustments
Net
Deferred
Revaluation
unrealized gains(losses)
reservegains(losses) on hedging
for landon securities instruments
Balances as ofMarch 31, 2018
Changes during theaccounting period$149,419($526)

Dividends from surplus$21,834

Total$170,727

Stock option
rightsTotal net assets$1,374$1,017,642(11,016)

Appropriated retained earnings
Net Income

29,431

Purchase of treasury stock(3,785)

Disposal of treasury stock

346

Reversal of land revaluation excess

610

Changes other than
(3,334)(16,421)(601)(20,357)(1,374)(21,731)
Shareholders' equity (net)Total changes during(3,334)(16,421)(601)(20,357)(1,374)(6,144)the accounting period
Balances as of$146,084($16,948)$21,233$150,370$1,011,497
March 31, 2019
The non-consolidated financial statements presented herein are expressed in yen and, solely for the convenience of thereader, have been translated into United States dollars at the rate of ￥110.99= U.S.$1, the prevailing rate as of March 31,
2019.This conversion rate should not be construed as a representation that all the amounts shown could be converted into U.S.
dollars.

14

AOGIN Annual Report 2019

Board of Directors and Executive Oﬃcers (as of June 26, 2019)▶Director / President▶Managing Executive Oﬃcers

Susumu Narita

Satoru Ishibashi
Tsuyoshi Tamura▶Directors /Senior Managing Executive Oﬃcers

Tsutomu Shikanai

Akihiro Kawamura
Tomohiko Sasaki

Yo Mori▶Director / Managing Executive Oﬃcer▶Executive Oﬃcers

Keitaro Ishikawa

Akira Nakagawa▶Director

Takahiro Kudo

Naotake Atsumi

Daisuke Yatsu
Shunsuke Kasai▶Directors / Audit & Supervisory Committee Members

Motomi Shiratori

Katsuhiro Ogasawara
Norihisa IshidaToshisada Kushibiki
Mie Ishida

Yoshiaki Matsuhashi
Shin Kidachi

Organization (as of April １, 2019)
General Meeting of Shareholders

Regional Headquarters
General Planning Division
Public Relations Oﬃce
Tokyo Liaison Oﬃce
Risk Administration Division

Board of Directors

Legal & Compliance Oﬃce

Audit & Surpervisory Committee

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
Human Resources Activities Promotion Oﬃce
System Development Division
Operations Administration Division
Operations Oﬃce
General Aﬃars Division
Auditing Division
Operations Auditing Oﬃce
Audit & Supervisory Committee Oﬃce

15

AOGIN Annual Report 2019

Corporate Data (as of March 31, 2019)▶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
1,313▶Number of Oﬃces
97▶Paid-in Capital
19,562 million yen▶Number of Outstanding Shares
20,512 thousand shares▶Total Assets
3,031.5 billion yen▶Loans and Bills Discounted
1,762.4 billion yen▶Capital Adequacy Ratio
9.31% (Domestic Standards)▶Credit Rating
A (Japan Credit Rating Agency, Ltd.)AOGIN Annual Report 2019
Issued September 2019 The Aomori Bank, Ltd.
9-30, Hashimoto 1-chome, Aomori 030-0823, Japan

telephone number: 017-777-1111

16

fax number: 017-777-1006